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120219a Agenda Package revisedHARNETT COUNTY BOARD OF COMMISSIONERS County Administration Building 420 McKinney Parkway Lillington, North Carolina Regular Meeting December 2, 2019 1. Call to order -Chairman Gordon Springle 9:00 am 2. Pledge of Allegiance and Invocation -Vice Chairman Howard Penny 3. Reorganization of the Board, Margaret Regina Wheeler, Clerk to the Board 4. Consider additions and deletions to the published agenda 5. Consent Agenda A. Minutes B. Budget Amendments C. Resolutions to add roads to state system D. Harnett Regional Water requests approval of write-offs for the third quarter of 2019 in the amounts of $23,659.25. E. Harnett County Health Director requests approval to increase the fee for #90651 Gardasil to $240. F. Harnett County Sheriffs Office requests approval to purchase software for $139,631.94 from Central Square (Tritech) to upgrade our record management software. This purchase will be fonded with the Sheriff's asset forfeiture funds. 6. Period of up to 30 minutes for informal comments allowing 3 minutes for each presentation 7. Appointments 8. Requests for approval of Resolutions Endorsing Safety Improvements in Harnett County by North Carolina Department of Transportation, Janet A. Whetstone-Perez, Sandhills Regional Traffic Engineer, NCDOT 9. YMCA Update and Request for Waiver, Rick Houp, CEO, YMCA of the Sandhills 10. Review of the Development Agreement between the County of Harnett and Greenfield Serenity, LLC, Senior Staff Attorney Christopher Appel 11. Proposed Amendments to the Harnett County Personnel Ordinance, Senior Staff Attorney Christopher Appel and Assistant County Manager Brian Haney Page 1 of 2 120219a HCBOC Page1 12. Presentation of Harnett County's recommended FY 2021-27 Capital Improvements Program and Detention Center Housing Unit Addition Feasibility Study, Harnett County Budget Director Renee Paschal 13. County Manager's Report -Paula Stewart, County Manager Harnett County Parks and Recreation Quarterly Report -September 2019 Sandhills Center's quarterly fiscal report, financial statements and compliance report 14. New Business 15. Closed Session 16. Adjourn Page 2 of2 120219a HCBOC Page2 Part 3. Organization and Procedures of the Board of Commissioners. § 153A-39. Selection of chairman and vice-chairman; powers and duties. On: ( 1) The first Monday in December of each even-numbered year; and (2) Its first regular meeting in December of each odd-numbered year, the board of commissioners shall choose one of its members as chainnan for the ensuing year, unless the chainnan is elected as such by the people or otherwise designated by law. The board shall also at that time choose a vice-chairman to act in the absence or disability of the chainnan. If the chairman and the vice-chainnan are both absent from a meeting of the board, the members present may choose a temporary chairman. The chairman is the presiding officer of the board of commissioners. Unless excused by rule of the board, the presiding officer has the duty to vote on any question before the board, but he has no right to break a tie vote in which he participated. (Code, s. 706; Rev., s. 1317; C.S., s. 1296; 1945, C. 132; 1951, C. 904, s. 1; 1961, C. 154; 1967, C. 617, s . 1; 1969, c. 349, s. 1; C. ] 036; 1973, C. 822, S. J; 1993, c. 95.) G.S. 153a-39 Page 1 120219a HCBOC Page3 AGENDA ITEM s -A HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Regular Meeting November 18, 2019 The Harnett County Board of Commissioners met in regular session on Monday, November 18, 2019, in the Commissioners Meeting Room, County Administration Building, 420 McKinney Parkway, Lillington, North Carolina. Members present: Member absent: Staff present: Gordon Springle, Chairman Mark B. Johnson, Commissioner Barbara Mc Koy, Commissioner Joe Miller, Commissioner Howard Penny, Vice Chairman Brian Haney, Assistant County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Finance Officer Margaret Regina Wheeler, Clerk Chairman Springle called the meeting to order at 6:00 pm. Commissioner McKoy led the Pledge of Allegiance and invocation. Chairman Springle called for any additions or deletions to the published agenda. Mr. Haney asked that the request for approval of a lease agreement with Wake Enterprises, Inc., be removed from the consent agenda for clarification. Commissioner Miller moved to approve the agenda as amended. Commissioner Johnson seconded the motion that passed 4 -0. Commissioner McKoy moved to approve items on the consent agenda. Commissioner Miller seconded the motion, which passed 4 -0. 1. Minutes: November 4 , 2019 Regular Meeting October 29, 2019 Work Session 2. Budget Amendments: 17 Public Safety Special Revenue JCPC Code 2104300 569010 JCPC Admin Unspent Grant Funds 2104300 569010 Healthy Choice Unspent Grant Funds 2103900 390990 Fund Balance Appropriated 18 General Fund JCPC Code 1104995 569010 1105870 569010 1103900 390990 4H Teen Court Unspent Grant Funds Restitution Unspent Grant Funds Fund Balance Appropriated 11,625 increase 34 increase 11,659 increase 7,046 increase 5,499 increase 12,545 increase November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 1 of 8 120219a HCBOC Page4 1234 Transportation CIPAD Code 1104630 502010 1104630 502050 1104630 504010 1104630 505010 1104630 505050 1104630 503030 1104630 506010 1104630 506040 1104630 507050 1104630 507070 1104630 507010 1104630 507030 1104630 521030 1104630 5310 IO 1104630 531020 1104630 531030 1104630 533010 1104630 533030 Salaries & Wages -Regular Salaries & Wages -Longevity Expense Allowance FICA State Retirement 401 (k)-General Medical Insurance Life Insurance Employee Clinic OPEB Unemployment Insurance Worker 's Compensation Uniforms Training-Mileage Training -Meals Training -Lodging E lectricity Natural Gas 1246 General Government Special Revenue Code 2999990 598400 Interfund Trans -Capital Project 2993900 390990 Fund Balance Appropriated 1248 General Government Special Revenue Code 2999990 598400 Interfund Trans -Capital Project 2993900 390990 Fund Balance Appropriated 3. Tax rebates, refunds and releases 2,523 increase 4 increase 500 increase 1 9 3 increase 5 64 decrease 5 5 4 increase 1 77 increase 8 increase 50 decrease 12 decrease 13 increase 85 increase 2 ,93 1 decrease 1,000 decrease 5 00 decrease 1,000 increase 539 increase 5 3 9 decrease 1,034,000 increase 1,034 ,000 increase 1,900,000 increase 1,900,000 increase 4. Harnett County Tax Department requested approval of applications for Property Tax Exemption/Exclusion submitted after the deadline . (Attachment 1) 5. Harnett County Parks and Recreation requested approval to accept $9,600 from the Duke Energy Foundation Grant /Nature grant program. These grant funds will be used to remove the natural loblolly pines from the planted longleaf pines helping to restore the longleaf pine ecosystem at Anderson Creek Park. Parks and Recreation is partnering with the NC Forest Service to administer these grant funds. There is cost share involved. 6. Hamett County Finance Officer requested approval of the Town of Angier's request for FY2019 SRO Reimbursement in an amount not to exceed $70,021.94. The Town was previously without a Finance Director and supporting staff and therefore was unable to submit reimbursement requests timely. November 18 , 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 2 of 8 120219a HCBOC Page5 7. Hamett County Sheriffs Office requested approval to accept a grant for $21,387 from the FYI 9 Edward Byrne Memorial Justice Assistance Grant Program. The grant funds will be used to purchase interview camera equipment and mobile printers and/or other investigative equipment to support the Sheriffs Office needs. No local match required. 8. National Hospice and Palliative Care Month -November 2019 9. Harnett County Workforce Development requested approval to enter into a contract for the FY 2019-2020 with the Triangle Workforce Development Board, which administers the Workforce Innovation and Opportunities Act. The WIOA grant is a federal grant that currently provides funding for employment and training services to the citizens of Hamett County enrolled in the WIOA Youth, Adult and Dislocated Worker Program. The Sampson County WIOA Youth Program will also be included for this fiscal year. 10. Hamett County Sheriffs Office requested approval to accept a Governor's Highway Safety Grant with funding for 15% of the cost for one Deputy's position and $300.00 in training. This is the third and last year of this grant after which the county will be responsible for 100% of the cost of the deputy's position. Chairman Springle presented the National Hospice and Palliative Care Month -November 2019 Proclamation to Transitions LifeCare CEO John Thoma. Chairman Springle opened the floor for informal comments by the public, allowing up to 3 minutes for each presentation up to 30 minutes. Mr. Floyd Heins of 411 Rainey Drive in Anderson Creek addressed the Board. Commissioner Miller moved to approve the appointment listed below. Commissioner McKoy seconded the motion that passed unanimously. Library Board of Trustees Cecilia Del Prado was appointed to serve as a District 5 representative on this Board for a term of three years expiring December 31, 2022. Mr. Haney presented Harnett County Administration/Legal Services' request for approval of a lease agreement with Wake Enterprises, Inc., on behalf of ARC of Harnett County, to lease rooms 121 and 141 at 200 Alexander Drive, Lillington to conduct education, training, and support activities and services for an initial term of one year with the option to renew for three additional three-year terms. He noted a correction in the room numbers to be leased as well as a diagram attached. Commissioner Miller, noting the lease agreement states the utility costs shall be determined solely by the lessor, asked if we were going to charge Wake Enterprises, Inc. their utility bill or give it away like before. Staff responded that the Board will look at the average utility cost after the first year and make that determination. Commissioner Miller said we are just not very consistent. November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page3of8 120219a HCBOC Page6 Commissioner McKoy moved to approve the lease agreement with Wake Enterprises, Inc. to lease rooms 121 and 141 at 200 Alexander Drive, Lillington. Commissioner Johnson seconded the motion that passed 4 -0. Brian Haney briefly presented the recommended Capital Improvement Plan (CIP) for Harnett CoWity. He said the CIP would be presented to the Board in detail on Monday, December 2, 2019. Commissioner Miller asked about the recommendation not to move forward with the Detention Center Housing Unit Addition. Staff noted that a feasibility study showed no option which results in net revenue to the county; four scenarios showed a deficit of between $2.3M and $7 .2M over the next 10 years. Budget Director Renee Pascal said the feasibility study would be provided to the commissioners on December 2, 2019. The Chairman opened the floor to the public for comments on the recommended CIP. Everette Blake, chairman of the Park and Recreation Advisory Committee, said the County needs to try to find ways to increase parks and recreation funding. Commissioner Miller suggested that Mr. Blake also contact local legislators and tell them we need an impact fee on all these new houses being built. Seeing no one else move, Chairman Springle closed the public comment period. Jay Sikes, Harnett CoWity Planning Services Manager, petitioned the Board for a public hearing on the proposed zoning change: Case# PLAN 1910-0001, Landowner/Applicant: Hamett Central Holdings, LLC / Stancil & Assoc, PLS, PA; 75 +/-acres; Pin #'s 0652-47-0150.000, 0652-47-6597.000, 0652-47-7401.000, 0652-47-7213.000, 0652-47-7008.000, 0652-46- 7901.000 & 0652-46-7717.000; From RA-40 to RA-20R; SR# 2215 (Harnett Central Rd) & SR # 143 ?(Ballard Road); Hector's Creek Township. Mr. Sikes noted that on November 4, 2019 the Harnett CoWity Planning Board voted unanimously (5-0) to recommend approval of application based on compatibility to the Land Use Plan and the existing residential in the area. He noted several citizens attended the meeting and one spoke in opposition with her concerns including traffic at the intersection of Ballard & Harnett Central Rd, traffic at the Hamett Central & Hwy 401 intersection, too many proposed residential subdivisions in the area already, fire station is not in close proximity, schools are over capacity, electric & water service outages occur often, and the need for green space & walking areas for citizens. Mr. Sikes reported the site is currently vacant farmland. Surrounding land uses consist of undeveloped land, residential & agricultural uses, and several non-residential uses. Services available include public water and public sewer. Mr. Sikes stated staff's evaluation as: The IMP ACT to the adjacent property owners and the surroWiding community is reasonable, and the benefits of the rezoning outweigh any potential inconvenience or harm to the community. REASONING: The impact to the surrounding community is reasonable, as the requested zoning district is the similar in nature to the surrounding area. November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 4 of 8 120219a HCBOC Page7 The requested zoning district is COMPATIBLE with the existing Land Use Classification. REASONING: The requested zoning is compatible with the overall land use classification of Medium Density Residential. Compatibility developments that utilize public water & sewer could exist yielding higher densities while including conserved open space. The proposal does ENHANCE or maintain the public health, safety and general welfare. REASONING: The requested zoning to RA-20R would maintain the public health, safety and general welfare due to the existing residential uses within the area. The request is NOT for a SMALL SCALE REZONING and should not be evaluated for reasonableness. REASONING: Due to the size of this parcel, this application does not need to be considered for Small Scale Rezoning. Suggested Statement-of-Consistency: Staff concludes that the requested rezoning to RA-20R would not have an unreasonable impact on the surrounding community and will maintain the public health, safety, and general welfare based on the existing residential uses and compatibility with the County's Land Use Plan. It is recommended that this rezoning request be approved. Commissioners asked how it could not have an unreasonable impact on the community. Mr. Sikes said any sort of development would bring about site improvements and they are in discussions with DOT about anticipated road improvements. Commissioners also asked about traffic, plans for a fire station and complaints about water and sewer problems in the area. Discussions continued. Steve Ward, Director of Harnett Regional Water, said the development in that area is making substantial improvements that should actuaJly help with pressure issues . He also said capacity is not an issue in the area. Mr. Sikes responded that the preliminary plan submitted for RA-40 showed about l 05 houses and the rezoning could possibly add an additional 20 to 50 lots. Staff said the Planning Board voted unanimously to approve this rezoning taking in to account the land use plan only. Mark Locklear, Director of Harnett County Development Services, reminded the Board that the rezoning could be for any uses allowed within RA20-R. Chairman Springle called to order a public hearing on the matter and opened the meeting for comments from the public. Harvey Montague of l 0305 Penny Road in Raleigh, developer for the applicant, spoke in support of the proposed rezoning. He said they recently invested $150,000 in a pressure reducing valued and will be extending the sewer line in the area. Judy Bingham of 140 Porch Swing Lane spoke against the proposed rezoning. She echoed the concerns she voiced during the Hamett County Planning Board meeting on November 4, 2019. Lester Stancil, applicant, told the group that the Summerville Bunnlevel Fire Department recently purchased 3 acres of land in the area to build a sub-station for their district. Deborah Eccleston of 81 Porch Swing Lane spoke against this proposed rezoning. Mr . Ward responded that there would be lots of fire hydrants in the new subdivision and better water pressure to serve the area. Seeing no one else move Chairman Springle closed the public hearing. Commissioner Miller moved to deny the proposed zoning change as the requested rezoning to RA-20R was found to have an unreasonable impact on the surrounding community November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 5 of 8 120219a HCBOC Page8 and does not enhance or maintain the public health, safety, and general welfare due to the potential school impacts on an existing, overburdened school system in this area. Chairman Springle seconded the motion which passed 4 -0. Mr. Sikes petitioned the Board for a public hearing on the proposed zoning change: Case # PLAN 1910-0002, Lando"Mter/ Applicant: Lando"Mter/ Applicant: Harnett Central Holdings, LLC / Stancil and Associates, PLS, PA; 4.614 +/-acres (Consisting of two lots) Pin #'s 0652-38- 2792.000 & 0652-38-6648.000; From RA-40 to Commercial; SR# 2215 (Hamett Central Rd) & SR# 1575(Nei11 Smith Road); Hector's Creek To"Mtship. Mr. Sikes noted that on November 4, 2019 the Harnett County Planning Board voted unanimously (5-0) to recommend approval of application based on compatibility with the Land Use Plan and the growing nature of this area. He said several citizens attended the meeting but no one spoke in opposition. Mr. Sikes reported that the site is currently vacant farmland. Surrounding land uses include undeveloped land, residential and agricultural uses, and several nonresidential uses. Services available are public water and public sewer. Mr. Sikes stated staffs evaluation as: The IMP ACT to the adjacent property owners and the surrounding community is reasonable, and the benefits of the rezoning outweigh any potential inconvenience or harm to the community. REASONING: The impact to the surrounding community is reasonable, as there are several nonresidential uses in the area and any new development would incur site improvements. The requested zoning district is COMPATIBLE with the existing Land Use Classification. REASONING: The requested zoning to Commercial is compatible with the land use classification of Rural Center Development Node. These nodes are usually market driven commercial centers with a small scale, non-residential footprint less than 50,000 sq. ft. The proposal does ENHANCE or maintain the public health, safety and general welfare. REASONING: The requested zoning would enhance or maintain the public health, safety and general welfare due to the potential site improvements that could take place. The request is NOT for a SMALL SCALE REZONING and should not be evaluated for reasonableness. REASONING: Due to the size of these parcels and the Land Use compatibility, this application does not need to be considered for Small Scale Rezoning. Suggested Statement-of-Consistency: Staff concludes that the requested rezoning to Commerical would not have an unreasonable impact on the surrounding community based on the nonresidential growth patterns of this area as well as compliance with the County's Land Use Plan. It is recommended that this rezoning request be approved. Chairman Springle called to order a public hearing on the matter and opened the meeting for comments from the public. Judy Bingham of 140 Porch Swing Lane spoke in opposition of the proposed rezoning. November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 6 of 8 120219a HCBOC Page9 Deborah Eccleston of 81 Porch Swing Lane spoke in opposition of the proposed rezonmg. Eric Smith of 164 Porch Swing Lane spoke in opposition of the proposed rezoning. Seeing no one else move Chairman Springle closed the public hearing. Commissioner Miller moved to approve the requested rezoning to Commercial, as it would not have an unreasonable impact on the surrounding community based on the nonresidential growth patterns of this area as well as compliance with the County's Land Use Plan. Commissioner McKoy seconded the motion which passed 4 -0. Jay Sikes petitioned the Board for a public hearing on a proposed text amendment: Case# PLAN 1910-0003, Harnett County Unified Development Ordinance Text Amendment Harnett County Unified Development Ordinance; Article Vil: Development Design Guidelines, Section 6.4.1 Fire Protection; General Fire Hydrant Requirements Harnett County Development Services & the Fire Marshall's Office request to add the statement to the nonresidential development regulations. This removes any potential contradictions with the NC State Building Code. The requested Text Amendment is compatible with the State of North Carolina & Harnett County regulatory documents. Chairman Springle called to order a public hearing on the matter and opened the meeting for conunents from the public. Seeing no one move, Chairman Springle closed the public hearing. Commissioner Johnson moved to approve a Resolution Amending the Harnett County Unified Development Ordinance; Article VII: Development Design Guidelines, Section 6.4.1 Fire Protection; General Fire Hydrant Requirements. Commissioner Miller seconded the motion which passed 4 -0. (Attachment 2) Mr. Haney presented the following reports: Harnett County Veterans Services Activities Report -October 2019 Harnett County Public Health Activities Summary -October 2019 Interdepartmental Budget Amendments Mr. Haney also reviewed upcoming meetings and invitations. There was no new business. Commissioner Miller moved that the Board go into closed session for the following purposes: 1) Consultation with the County's legal staff in order to preserve the attorney-client privilege concerning the handling of certain claims and litigation including the following case: Workers Compensation Claim of William Boyd Beasley IC File No.: 17-016000; 2) To instruct the County staff concerning the position to be taken on the County in negotiating a contract for the acquisition of real property. This motion is made pursuant to N.C. General Statute Section 143-318.1 l(a)(3)&(5). Commissioner Johnson seconded the motion that passed 4 -0. November 18, 2019 Regular Meeting Minutes Harnett County Board of Commissioners Page 7 of 8 120219a HCBOC Page10 Commissioner Miller moved that the Board come out of closed session. Commissioner Johnson seconded the motion which passed 4 -0. Commissioner McKay moved to adjourn the meeting at 7:38 pm. Commissioner Miller seconded the motion that passed 4 -0. Gordon Springle, Chainnan Margaret Regina Wheeler, Clerk November 18, 2019 Regular Meeting Minutes Hamett County Board of Commissioners Page 8 of 8 120219a HCBOC Page11 ATTACHMENT 1 Property Tax Relief /Exemption Application Appeals APPELLANT OWN ER REASON FOR APPEAL TYPE THOMPSON, KEVIN LATE APPLICATION DV CHENARD , KAITI J LATE APPLICATION DV HUSSEIN, SINCERE LATE APPLICATION DV HlGHLAND,MARK LATE APPLICATION DV CRENSHAW, PEARL LATE APPLICATION ELD GIUNTA, STEVE LATE APPLICATION DV DIAZ, RE!NARDO LATE APPLICATION DV GREEN, JANIE LATE APPLICATION ELD WALKER, FONNIE LATE APPLICATION DV GODWIN, DONNA LATE APPLICATION ELD 120219a HCBOC Page12 ATTA CHM ENT 2 r ~~~;Harnett ~~f("c:)', C O U N T Y _ ~_;_ .. ~NO~R~T~H~C~A-=-R~OL~I~N~A------------------------------ www.harnett .org A RESOLUTION AMENDING THE HARNETT COUNTY UNIFIED DEVELOPMENT ORDINANCE WHEREAS, the Board of Commissioners of Hamett County adopted the UDO on October 17, 2011 for the purpose of promoting the health, safety, and general welfare of the county residents; and WHEREAS , this ordinance was adopted under authority granted by the General Assembly of the State of North Carolina, particularly G.S. 153A-340; and WHEREAS, the UDO contains provisions for amending said ordinance and those provisions have been followed; and WHEREAS , the Hamett County Planning Board has reviewed the amendment to the article of the UDO as listed below and recommends the adoption of the following amendment. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF HARNETT COUNTY, NORTH CAROLINA that Harnett County Unified Development Ordinance Article IV: Zoning & Overlay Districts, Article VII: Development Design Guidelines, Section 6.4.1 Fire Protection, General Fire Protection, of the UDO shall be amended to read as indicated in "Attachment". "Attachment" is filed with the Unified Development Ordinance in the Clerk to the Board's Office. Duly adopted this 18th day of November, 2019 and effective upon adoption. H JTT COUNTY BOARD OF COMMISSIONERS strong roots • new growth 120219a HCBOC Page13 Article VII. Development Design Guidelines 6.4 Fire Protection 6.4.3 Fire Hydrants for Nonresidential Development ATTACHMENT Fire hydrants, or other fire protection methods as approved by the Fire Marshall's Office, shall be required for all new construction and expansions of nonresidential development. Fire hydrants shall be located in such a manner that no primary structure is further than 400 feet from a hydrant, measured along the street centerline. Development of lots located along divided right(s)-of-way shall only consider distance to hydrants located on the same side of the right(s)- of-way. www.harnett .org 120219a HCBOC Page14 HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Work Session November 12, 2019 The Hamett County Board of Commissioners met in work session on Tuesday, November 12, 2019, in Conference Room A, County Administration Building, 420 McKinney Parkway, Lillington, North Carolina. Members present: Gordon Springle, Chairman Howard Penny, Vice Chairman Mark B. Johnson, Commissioner Barbara McKoy, Commissioner Member absent: Joe Miller, Commissioner Staff present: Paula Stewart, County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Finance Officer Margaret Regina Wheeler, Clerk Brian Haney, Assistant County Manager Lindsey Lucas, Deputy Clerk Chairman Springle call the meeting to order at 9:00 am and led the pledge of allegiance and invocation. The following agenda was before the Board: ~ Town of Angier's request for FY2019 SRO Reimbursement in the amount or $70,021.94 ~ Development Services briefly the following cases for upcoming public hearings: Proposed Zoning Change: Case # PLAN 1910-0001 Landowner/ Applicant: Harnett Central Holdings, LLC / Stancil and Associates, PLS, PA; 75+/-acres; From RA-40 to RA-20R Proposed Zoning Change: Case# PLAN 1910-0002 Landowner/Applicant: Harnett Central Holdings, LLC / Stancil and Associates, PLS, PA; 4.614 +/-acres; From RA-40 to Commercial Proposed Text Amendment: Case# PLAN 1910-0003 Harnett County Unified Development Ordinance Text Amendment Article VII: Development Design Guidelines, Section 6.4.1 Fire Protection; General Fire Hydrant Requirements ~ Initial presentation of Harnett County's Capital Improvement Plan ~ County Manager's Report: Various project updates November 18, 2019 Regular Meeting Agenda Review Review applications to serve on Boards and Committees Invitations and upcoming meetings ~ Closed session ~ Adjourn November 12, 2019 Work Session Minutes Hamett County Board of Commissioners Page 1 of 3 120219a HCBOC Page15 Mrs. Stewart presented the Town of Angier's request for FY2019 SRO reimbursement. The Town of Angier's new Finance Officer Hans Kalwitz was present. Mrs. Stewart said staff has reviewed and verified the invoices provided for the reimbursement request. The Board will consider approval of the FY2019 SRO reimbursement not to exceed $70,021.94 for payroll and equipment during their upcoming regular meeting. Harnett County Development Services Director Mark Locklear and Planning Services Manager Jay Sikes briefly reviewed the following cases for upcoming public hearings: Proposed Zoning Change: Case # PLAN 1910-0001 Landowner/ Applicant: Harnett Central Holdings, LLC / Stancil and Associates, PLS, PA; 75+/-acres (Consisting of seven lots) Pin #'s 0652-47-0150.000, 0652-47- 6597.000, 0652-47-7401.000, 0652-47-7213.000, 0652-47-7008.000, 0652-46- 7901.000 & 0652-46-7717.000; From RA-40 to RA-20R; SR# 2215 (Harnett Central Rd) & SR# 1437(Ballard Road); Hector's Creek Township. Proposed Zoning Change: Case # PLAN 1910-0002 Landowner/Applicant: Harnett Central Holdings, LLC / Stancil and Associates, PLS, PA; 4.614 +/-acres (Consisting of two lots) Pin #'s 0652-38-2792.000 & 0652-38- 6648.000; From RA-40 to Commercial; SR# 2215 (Harnett Central Rd) & SR# 1575(Neill Smith Road); Hector's Creek Township. Proposed Text Amendment: Case# PLAN 1910-0003 Harnett County Unified Development Ordinance Text Amendment Harnett County Unified Development Ordinance; Article VII: Development Design Guidelines, Section 6.4.1 Fire Protection; General Fire Hydrant Requirements Mr. Locklear shared copies of a zoning map for reference because he said the proposed zoning change Case # PLAN 1910-000 I appears to be a drastic change, however he noted that the recent Northwest Plan calls for this area to be more of a high dense area. Mr. Locklear also said the remaining part of Harnett Central Road is zoned RA-20M. He said through all of the planning principles staff suggests that the first proposed rezoning be approved. Mr. Sikes talked about opposition to the proposed zoning change Case# PLAN 1910-0001 during the Hamett County Planning Board meeting. He also reported on discussions with the developer and NCDOT. Discussions continued regarding traffic concerns in that area. Mrs. Stewart provided an initial brief overview of the proposed Hamett County's Capital Improvement Program/Plan (CIP). Staff said this is the county's long-term plan for important improvements. She said the CIP capital threshold has been raised to $100,000 and projects below $100,000 will be submitted in the operating budget. Mrs. Stewart listed the new funded projects in the proposed CIP. Mrs. Stewart said the Harnett Regional Jetport Terminal Project was moved from funded to future due to lack of funding. She also noted that the detention center housing unit addition is not recommended as a recent feasibility study, performed by Budget Director Renee Pascal, showed no option which would result in net revenue to the county. Mrs. Pascal noted the county would most likely need a new jail pod in 203 I. Last, the Northwest Convenience Center relocation has been postponed but the new tower is proceeding. November 12, 2019 Work Session Minutes Harnett County Board of Commissioners Page 2 of 3 120219a HCBOC Page16 Next steps for the CIP include the Board offering a public comment opportunity on the recommended CIP during their upcoming November 18, 2019 regular meeting. The CIP will be reviewed in detail with commissioners during an upcoming meeting and staff's hopes to have the CIP adopted by mid-December. Mrs. Stewart also said the Board of Education would need to submit their projects through the CIP process next year. The group discussed the status of the new two schools previously approved for funding. Mrs. Stewart confirmed that the Board of Education is behind on their schedule for the new Erwin Elementary School. She stressed that County is prepared when the Board of Education is ready with plans to go to the LGC in March. Mrs. Stewart reviewed the proposed November 18, 2019 regular meeting agenda as well as invitations and upcoming meetings. Commissioners reviewed applications to serve on boards and committees. Chairman Springle reported on the latest Mid-Carolina COG meeting saying he believes their new executive director will be a great addition. Commissioner McKoy said that the people in the Shawtown community are pleased with what the County has done out there. Vice Chairman Penny provided an update on the recent RTRP meeting. Commissioner McKoy moved that the Board go into closed session for the following purposes: 1) Consultation with the County's legal staff in order to preserve the attorney-client privilege concerning the handling of certain claims and litigation including the following case: Workers Compensation Claim of William Boyd Beasley IC File No.: 17-016000; 2) To instruct the County staff concerning the position to be taken on the County in negotiating a contract for the acquisition ofreal property. This motion is made pursuant to N.C. General Statute Section 143-318.1 l(a)(3)&(5). Vice Chairman Penny seconded the motion that passed 4 -0. Commissioner McKoy moved to come out of closed session. Commissioner Johnson seconded the motion, which passed 4 -0. Vice Chairman Penny moved to adjourn the meeting at I I :53 am. Commissioner Johnson seconded the motion that passed 4 -0. Gordon Springle, Chairman Margaret Regina Wheeler, Clerk November I 2, 20 I 9 Work Session Minutes Harnett County Board of Commissioners Page 3 of 3 120219a HCBOC Page17 AGENDA ITEM S-B COUNTY OF HARNETT BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2020. Section 1. To amend the Health Department General Fund, the appropriations are to be changed as follows: EXPENDITURE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE DECREASE 1105 110 502010 Salaries $45 ~ - REVENUE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE DECREASE 1105110 330210 Federal Fun ds-Fa m ily Planning $ 45 EXPLANATION : To correct Journal #3. Additional Federal funds were $24,016 not $24 ,061 . 9TY,~~ Dept Head [date) Adopted this ___ day of ________ , 20 __ . Margaret Regina Wheeler. Clerk to the Board D Cou n ty Manager [dote) t J l l1 ).51'1 lerk to the Boord, and to the Budget Gordon Springle, Chairman Board of Commissioners 120219a HCBOC Page18 COUNTY OF HARNETT BUDGET ORDINANCE AMENDMENT 8E IT ORDAINED by the Governing Board ol l he County of Harnett, Norlh Corolino, tha l th e following amendment b e made to the onnuol budg et ordinance for the fisca l year ending June 30, 2020. Section 1. To amend the Asset Forfeitures Fund, the appropriations are to be changed as follows: EXPENDITURE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE DECREASE 2178303 598500 IN TERFUN D TRANS· CAPITAL RES $203,232 REVENUE I I AMOUNT ORG I OBJECT I PROJECT I TASK I SUB-TASK I JOB I DESCRIPTION OF CODE I INCREASE I DECREASE 21 78303 I 390990 I I I I IFUND BA LAN CE APPROPRIATED I $203.2321 I I I I I I I 1 I I I I I I I I EXPLANATION: TO MOVE BUDGET FROM FUND 210 (PUBLIC SAFETY FUND) TO FUND 217 TO FACILITATE BETTER TRACKING Of ASSET FORFEITURES. APPROVALS· Section 2. Adopted this ___ day ot _______ . 20 _. Morgoret Regina Wheeler. Clerk to the Boord Gardon Springle, Chairman Bo ard of Commissioners 4llb 120219a HCBOC Page19 COUNTY OF HARNETT BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Bo ord o f th e County of Hamett , North C aro lina, that t he tallowing a m e ndme nt be mad e to lhe annu al b udget ordinance fo r th e fisc al year endin g June 30. 2020, Section 1. To amend the Public Safety Special Revenue Fund, the appropriations ore to be changed as lolloW$: EXPENDITURE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE DECREASE 2 104590 598500 INTE RFU ND TR ANS · C AP ITAL RES $203.232 REVENUE I I AMOUNT ORG I OBJECT IPROJECTI TASK I SUB-TASK I JOB I DESCRIPTION OF CODE I INCREASE I 21039 00 I 3909 90 I I I I !FU ND BALA NC E APP RO PRIATE D I I I I I I I I I I l I I I I EXPLANATION : TO MOVE BUDGEJ FROM FUND 210 (PUBLIC SAFETY FUND) TO FUND 217 TO FACIUTAJE BETTER TRACKING OF ASSET FORFEITURES. Dept He ad (dale) Section 2. Cop ie s o f this b ud get amendment sh a ll b e fu rn is he Offi cer for their d irec tio n . Adopted this ___ day of _______ . 20 _. M a rg a re t Re g in a Whe e ler. C le rk to th e Bo a rd Gordon Springle , C ha irma n Board of C ommissio ne rs I I I DECREASE $203,232 120219a HCBOC Page20 COUNTY OF HARNETT BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Hamett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2020. Section I. To amend the General Fund budget, the appropriations are to be changed as follows: EXPENDITURE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE DECREASE 1109800 598700 INTERFUND TRANSFERS $13,864 REVENUE AMOUNT ORG OBJECT PROJECT TASK SUB-TASK JOB DESCRIPTION OF CODE INCREASE 1103900 390990 FUND BALANCE APPR $13,864 EXPLANATION: TO ALLOCATE FUNDS CO LLECTED IN FYI 7-18 FOR DISTRICT H TO THE CORRECT FUND APPROVALS : Adopted this ___ da y of ________ , 20 __ . Margaret R eg ina Wheeler, Clerk to the Board dbardoot Gordon Sprin gle , Chainnan Board of Commissioners DECREASE Nu11~mbcr 14 ,20lljl 411b 120219a HCBOC Page21 AGENDA ITEM 5 -C Harnett ~~""COUNTY ~........;;=---NORTH CAROLINA RESOLUTION BE IT RESOLVED that the Hamett County Board of Commissioners does hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System the below listed street. Coopers Creek Subdivision Birch A venue Dandelion Place Okame Court Duly adopted this 2nd day of December 2019. ATTEST: Margaret Regina Wheeler Clerk to the Board strong roots • new growth HARNETT COUNTY BOARD OF COMMISSIONERS Gordon Springle, Chairman www.harnett.org 120219a HCBOC Page22 ROY COOPER G O\'FKN<>R November 15, 2019 Mrs. Gina Wheeler Clerk STATE OF NORTH CAROLINA DEPARTMENT OF TRANSPORTATION Harnett County Board of Commissioners Post Office Box 759 Lillington, North Carolina 27546 Subject: Secondary Road Addition To Whom It May Concern: JAMES H. TROGDON, Ill Sl,CKE l A RY This is in reference to a petition submitted to this office requesting street(s) in Hamett County be placed on the State's Secondary Road System . Please be advised that these street(s) have been investigated and our findings are that the below listed street(s) are eligible for addition to the State System. Coopers Creek Subdivision • Birch A venue • Dandelion Place • Okame Court It is our recommendation that the above named street(s) be placed on the State 's Secondary Road System . If you and your Board concur in our recommendation, please submit a resolution to this office. Sincerely, Janet James Engineering Technician M"ili11g Add,e55: NC DEl'ARTMEN 'I OF I RAN Sl'OHTATION DIVISION SI X I D1 Sl Rf("I 1 WO POST OFMCF BOX 11 50 FAYl.:"TT[V ILI.E, NC 28 302 fri<·1J/11m,·: (111 0) 364-0601 Fa.r. (91 0 ) H 7-2529 ('ustum ,·r S,•n'i(~: 1-877-36~4 %~ lfrhsi t.·. "'"'" .ucdO! gm /.matitw 600 SO!Jl'l ll·.RN /\ V ENUL: FA )T ITEVIJ LI:, NC 28306 120219a HCBOC Page23 .......... TBRAGG 'LfTARY :RVATfON \ ' ,, I ;, FORT BRAGG ~ MILITARY RESERVATION r-• '..l .. .. t'. 11 .. / I ( I .. / I ; .,( ' . I ' ' I ' .i! \ ~ ~-~ I ,' ., : ' --~ \"",i ( .· ~ ·---~ \ --2474 ,()4 OYerhlll• Middle AndHIOh Schools .C 1,05 @ OAr-JDE....U 0~ f L_Ac.£ ~' .l ® 0 \c.At-l-E-C...OL-4Z-, .06 .t OYemilla Elementary School I l I 120219a HCBOC Page24 Harnett CO UNTY NORTH CAROLINA RESOLUTION BE IT RESOLVED that the Harnett County Board of Commissioners does hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System the below listed street. Quail Glen Subdivision English Springer Drive Setter Court Pointer Drive Duly adopted this 2nd day of December 2019 . ATTEST: Margaret Regina Wheeler Clerk to the Board strong roots • new growth HARNETT COUNTY BOARD OF COMMISSIONERS Gordon Springle, Chairman www.harnett.org 120219a HCBOC Page25 ROY COOPER GOVERNOR November 14 , 2019 Mrs. Gina Wheeler Clerk ST ATE OF NORTH CAROLINA DEPARTMENT OF TRANSPORTATION Hamett County Board of Commissioners Post Office Box 759 Lillington, North Carolina 27546 Subject: Secondary Road Addition To Whom It May Concern : JAMES H. TROGDON , III SECRETARY This is in reference to a petition submitted to this office requesting street(s) in Hamett County be placed on the State's Secondary Road System. Ple ase be advised that these street(s ) have been investigated and our findings are that the below listed street(s) are eligible for addition to the State System. Quail Glen Subdivision • English Springer Drive • Setter Court • Pointer Drive It is our recommendation that the above named street(s) be placed on the State 's Secondary Road System. If you and your Board concur in our recommendation , pl e ase submit a res olution to this office. Sincerely, (JrvJ-t--- Janet James Engineering Technician ,\fctili//g Addrl'sr: NC OEl'ARTMENT OF TRANSPORI AllON DIVISION SIX I DISTRICT l WO POST OFFICE BOX 1150 F,\ YETTEV II .I.F.. NC 28302 Tdeµlwm·: (9 10) 3b-l-06tJI Fax: (910) -07-2529 C 11s1om e1· s~n·ice: J-877-368-4%S Wd,.,;,,,_. ll'\\'\\'.lll.'<lo1.gu1· location: 600 SOUTIIERN AVENUF. F/1 YETrEVII.LE, NC '.!8306 120219a HCBOC Page26 120219a HCBOC Page27 Harnett _......._"... C O U N T Y --e;;.__--' NORTH CAROLINA RESOLUTION BE IT RESOLVED that the Harnett County Board of Commissioners does hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System the below listed street. Thomas Manor (formerly Shaylah's Knoll) Subdivision Widgeon Way Pintail Drive Ringneck Court Duly adopted this 2 11d day of December 2019. ATTEST: Margaret Regina Wheeler Clerk to the Board strong roots • new growth HARNETT COUNTY BOARD OF COMMISSIONERS Gordon Springle, Chairman www.harnett.org 120219a HCBOC Page28 STATE OF NORTH CAROLINA DEPARTMENT OF TRANSPORTATION ROY COOPER GOV ERNOR November 27, 2019 Mrs. Gina Wheeler Clerk Hamett County Board of Commissioners Post Office Box 759 Lillington, North Carolina 27546 Subject: Secondary Road Addition To Whom It May Concern: JAMES H. TROGDON, III ScC'RETARY This is in reference to a petition submitted to this office requesting street(s) in Hamett County be placed on the State's Secondary Road System. Please be advised that these street(s) have been investigated and our findings are that the below listed street(s) are eligible for addition to the State System . Thomas Manor (formerly Shaylah's Knoll) Subdivision " Widgeon Way • Pintail Drive • Ringneck Court It is our recommendation that the above named street(s) be placed on the State 's Secondary Road System. If you and your Board concur in our recommendation, please submit a resolution to this office. Sincerely, ~ Janet James Engineering Technician Mailing Ad,lrcss: NC DEPARTMl.:NT OF TRANSPORTATION DIVISION SIX / DIS TRIC"l l WO POST OFFICE BOX 1150 Fl\ Yr.TTEVILI E, NC ~8302 fri<•p honc: (91 OJ 364-060 I Fox: (910) 4 37-2529 C11s1omcr Sc,o ·ic<!: l-!!77-368-4968 U<!hsite: ,,·ww.ncdol.go\· loca 1io11: 600 SOUTI IERN A VENUE FAYETTF.VIU.E, N C 28 306 120219a HCBOC Page29 '\ I '--{ / .,. CD \ ' ,,. ,_./ ::: @ .,,.-·-' RAVEJI ROCK STATE PARK _/ ,'-+-c~ ~o(L.- 0 u.) \ 0 ~ E.-o \..J w A.,'-{. @ f>\p-rA,L Dµ.V:E:- ,. ® {2..\JJ6 ~L C.Ou--{2-{ 120219a HCBOC Page30 AGENDA ITEM .5 -D Board Meeting Agenda Item MEETING DATE: December J, 2019 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Hamett Regional Water Write-offs for 3rd Quarter of 2019 REQUESTED BY: Steve Ward, Director REQUEST: Enclosed are the delinquent accounts determined to be at write-off status for the third quarter of 2019. All of these accounts have been delinquent for more than three years and total $23,659.25. The facilitation of these write-offs is an important step in a continuing effort to effectively manage our collections and bad debt. HR W is currently using the Local Government Debt Setoff Program and On-Line Collections, Inc. to help collect our delinquent accounts. We are happy to report that we have recovered over $710,000 in bad debt previously written off through the Debt Seto ff Program. Please place this request on the consent agenda at the next available meeting. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: \\hcfilea\Puuse rs\sward\My Doc um e nts\collecti ons\writ eoffs 3rd-q tr 2 01 9.docx I of I Page 120219a HCBOC Page31 NC DEBT SETOFF COLLECTION TO DATE $710,326.55 120219a HCBOC Page32 HARNETT REGIONAL WATER QUARTERLY DELINQUENT WRITE OFFS SEPT 2016 NAME ACCOUNT# NOTES ADAMS, EDWARD 119407 -23609 RET BILL ADAMS, FRANKE 27777-25547 RET BILL ALONSO ,BRENDASANCHEZ 198541-10811 ALSADA, HUSSAIN 207109-79738 ANDING , KAITLYN 193457-28470 BAGLEY, KIMBERLY 156607-69553 BANKRUPT BEAMON , ASHLEY 204801-45651 BECK , JODEE FAYETTE 89231-51609 BING, DAEVON 198113-75720 BLUE ESTATE, LOUIS 82583-67 446 BONNER , SCOTT F 156209-22566 BROWN JR , GARY WENDELL 19862 3-85926 RET BILL BROWN, ANGELA 143545-77864 BUTLER, DOMINIQUE M 198535-24201 RET BILL SUZAN, MICHAEL L 189347-52867 CALHOUN , SHAWN LESLIE 178715-90856 RET BILL CALLAHAN , MOSES WAYNE 208025-71631 CAMERON,LISA 155993-59988 CAMPBELL, KELLY 180355-73646 RET BILL CARR, LATOYA 188635-51426 CARROLL, MICHAEL 55075-45759 FORECLOSURE CATRON, JEANETTA 188939-89357 RET BILL CHURCH.GARY 201991-48160 RET BILL COPELAND, ASHLEY POWERS 201897-2407 CROOKS , JANET 203065-90343 CRUZ, NOEL 99091-67038 CURTIS , DICK 2797-69801 DAY, TRELLIS K 123329-86194 FORECLOSURE DEAN, JAMES 72167 -22666 FORECLOSURE DELMANTO ,GREGORY 119401-71549 DIAZ, JOSE A 175967-91973 DIVEN , TODD 142491-9435 FORECLOSURE DUKES, CARRA GENNEL 204891-3092 EDWARDS SR, LEONZO D 53603-76875 FORECLOSURE ELLIOTT , TANASHA 202215-3831 RET BILL ESCH, JAMES D 7113-3295 FORECLOSURE FARRISH JR, MARK TWAIN 204227-65997 FERNANDEZ , TREICIA L 183277-82618 FORSHEY SR , GENE CORBIN 15517 -50703 RET BILL FRANKLIN, SHARLICIA 200111-5380 RET BILL GARCIA, ALEJANDRO 173355-65522 GARZA JR, PABLO 91899-81579 RET BILL GARZO , BELINDA 202369-51432 RET BILL GIBBS , ASHLEY MARIE 202167-24719 GILCHRIST, WILLIAM 67681 -79262 GIVENS, TYNECICA 190105-68454 RET BILL GLOVER, TAMISHA 200575-49176 GODWIN EST ATE, CECELIA 56293-24513 GOLDSTON, TAVARIS 199113-51521 RET BILL Page 1 BALANCE TO WRITE-OFF $50.22 $45.50 $126.49 $83 .93 $12.80 $84.43 $24 .56 $297.44 $329.51 $284.69 $29 .82 $13.07 $191 .66 $44 .62 $24 .14 $110.36 $18 .50 -$176 .83 $7.79 $90.00 $444 .90 $128 .78 $53.75 $145.05 $39 .93 ·-$277.50 $8 .50 $268.00 $397.67 $42 .63 · $123.48 $207.00 $172 .56 $663 .15 $39.34 $266.43 $597 .07 $59 .03 $427.66 $32 .07 $30 .20 $8.50 $53.31 $36 .72 $157 .08 $18 .50 $18 .50 $27.00 $55.50 120219a HCBOC Page33 HARNETT REGIONAL WATER QUARTERLY DELINQUENT WRITE OFFS SEPT 2016 NAME ACCOUNT# NOTES GREEN, ROBERT 160493-2954 HAGWOOD, JONA THAN 14 7809-41678 - HALLMAN, UKIE 71215-26794 FORECLOSURE HAMIL TON , YVONNE 182655-81085 HARPER, WARREN 172717-70907 HARRELL, HOLLY 201809-37841 HEARN , NICHOLAS 206449-56905 HEMBY, MICHELLE L 117635-38566 HENRY, MICHAEL 204117-4201 RET BILL HOWARD JR, CLEO 201601-17256 HUNT, HOLLY 190583-84357 FORECLOSURE ISAAC , RUSSELL 4797-23135 JACKSON, DORIS FISHER 110855-10103 RET BILL JAIMES , LUIS GARCIA 207523-75031 JOHNSON, LINDA J 183111-27550 RET BILL JONES, CRY ST AL DENISE 203875-65127 RET BILL JONES, GEORGE W 183125-87184 KOLATH , HOLLY 189093-34849 RET BILL LAMBERT, AMBER ANNETTE 206789-73671 LAVELY ,EVAN 192527-5144 LAWSON SR, VERNON DALE 187179-60770 LEE , CARTER RANDOLPH 189059-23544 RET BILL LEONARD, LARRY 127779-68645 LEWIS-MORGAN, ARNECIA D 207809-43102 RET BILL LUCAS , KISHA LYNN -~202781-53872 MANTOOTH, ERICA 176553-69707 RET BILL MASSEY, TERRELL 164453-58039 MATTHEWS, KENNETH 203271-44782 RET BILL MCCLAIN, TRACY VERBAL 75447-4843 FORECLOSURE MCCLOSKEY, MATTHEW M 202561-42399 MCDOUGALD, BRITT ANY 163517-51913 MCDOUGALD, MONTRELLE LAI 202879-16477 MCKENZIE , MONICA 1357 49-6577 4 RET BILL MCKOY, BRIDGET 196345-18527 RET BILL MCLEAN ESTATE, JOHN 27719-49809 MCMILLAN, BROOKE 48233-47160 BANKRUPT MCMILLIAN JR , JOHN 193171-51233 MCNEIL, CATINA 4023-60426 MCNEILL, SHAUNA FULLER 171925-36539 MEJIA, JACOBO CASTELLANO!: 116273-30884 MEYER, JONATHAN 158269-87928 RET BILL MILLHOUSE CAFE 208977-36675 MOES, LAUREN 208873-1687 MOSLEY, BRITTANY 191981-62637 MURPHY, MICHELLE 88597-3845 MYERS, JESSICA 171151-3688 NEWSOME, JENNIE 156839-88735 PALMER, TAMBRA 97501-26043 FORECLOSURE PEREZ.HUMBERTO 197845-50723 RET BILL Page 2 BALANCE TO WRITE -OFF $40.00 $25.44 $245 .84 $131 .32 $74 .00 $155.66 $36.60 $41 .81 $263 .70 $31.21 $199.83 $143.17 $80.25 $68.45 $71.43 $85 .95 $70 .80 $176.07 $15 .10 $18 .75 $74 .00 $239.45 $37.00 $75.57 $281.40 $26.09 $9.92 $40.57 $128.94 $101 .45 $26 .29 ·--~-$228.50 $44 .95 $17.53 $694 .27 $68.19 $31 .70 $111 .27 $34 .62 $89.73 $18 .50 $286.76 $32 .59 $60.82 $222 .50 $110.95 $69 .54 $312.46 $169.63 120219a HCBOC Page34 HARNETT REGIONAL WATER QUARTERLY DELINQUENT WRITE OFFS SEPT 2016 NAME I ACCOUNT# NOTES PERRY, BILLY JOE 200505-27995 PICHARDO, GABRIEL 1 98855-46101 PIPKINS , JOHNATHAN D 192327-59303 POLLARD, BETSY L 1257 41-38446 QUIGLEY , SHAWN 202225-23128 RET BILL RICH , JAMES 120181-76926 RET BILL --RICHARDSON , JESSE A 208533-3844 RODRIGUEZ, JUAN R 204093-4609 RET BILL SAINATO , LORI 209147-23660 RET BILL SCOTT, HELENA N 156407-25924 RET BILL SESSOMS, BOBBIE 192379-24855 SIGG, STEVEN E 205105-74931 SILVA , THELMA MARIE 195223-41456 SILVERMAN, SAMUEL M 156129-87202 RET BILL SLOAN , FRED LESLIE 159309-65738 SMALL, RONIE 121111-47343 SMITH , BRENDA 199559-24770 SOBERANIS, ROSALIO 209207-37046 SOULE, STEPHANIE LYNN 194033-29173 RET BILL SPENCER, QUANTA S 180851-89775 RET BILL STARR,STEVENJAMES 192665-88126 STUBBS, NICHOLE 153011-67335 TARVER ,PANSYLENELLE 189723-36642 TASTE ESCAPE 196009-36675 RET BILL TAYLOR , KEVIN JAMES 198781-85564 FORECLOSURE THOMAS, JAMAL D 207499-7906 THOMAS, REYNALDO ANTON 1923 77 -62207 THOMPSON JR , GEORGE W 175623-10273 THOMPSON , LAWANDA 175739-39042 RET BILL TOLSON , RANDALL 199767 -82446 TORRES , MALISSA HARDISON 32623-43328 TOWNSEND , TANEISHA 184679-51507 RET BILL TROUT , KATHLEEN PAULA 201049-23911 RET BILL TYLER , CHRISTY 183203-5273 VAN HORN , ROBERT 194243-85226 VANCUREN ,ANNETTE 153449-3487 FORECLOSURE WARREN, JASON 207511-11233 WEBB, LISA 158469-18317 WHITMAN , RAYMA LEE 199943-71944 RET BILL -· WIGGINS, RODNEY 152725-17234 WILLIAMS, SHERMAN LEE 139093-18663 WILLIAMS , VICKI L 205707 -69690 WOOD, TERRY 166315-36727 WOOTEN, CHRISTOPHER 72795-65752 WORCESTER, JEFFREY 205097-77815 Page 3 BALANCE TO WRITE-OFF $32.07 $10 .09 $127 .68 $111 .00 $83.76 $12 .00 $25.12 $93.61 $33 .56 $98 .37 $22 .10 $142.64 $19.87 $35.77 $18.50 $120.98 $29 .60 $28 .27 $84 .50 $59.01 $18 .50 $60 .65 $695.21 $192 . 70 $314 .50 $94. 18 $86.17 $48.87 $85 .00 $220.69 $34.00 $8 .05 $568 .26 $77 .58 $31.80 $3 ,398.00 $214 .93 $10.50 -$96.65 $29.75 $93 .66 $52 .50 $3,261.00 $148 .00 $162 .86 $23 ,659 .25 ·- 120219a HCBOC Page35 Board Meeting Agenda Item AGENDA ITEM 5 -E MEETING DA TE: December 2, 2019 OF COMMISSIONERS SUBJECT: I REQUESTE BY: John Rouse, Health Director REQUEST: At the November 21, 2019 meeting, the Board of Health approved to increase the following fee: CPTCODE 90651 DESCRIPTION GARDASIL Your approval of this request is appreciated. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: RECOMMENDED PRICE $240 \\hcfileb\hthsh are\admin\Filcshare\l-Exccl\BOH PAT FEE INC -NEW FEES-BOC Rcquests\BOI I 1 l 21 19\BOC form Gardasil 120219 meetin g.docx Page I of l 120219a HCBOC Page36 AGENDA ITEM .5-~ Board Meeting Agenda Item Oec,""be.r ~ MEETING DATE: O@t8h@r ll, 2019 TO: HARNETT COUNTY BOARD OF COMMISSJONERS SUBJECT: Upgrade Record Management Software-Central Square(Tritech) REQUESTED BY: Harnett County Sheriffs Office REQUEST: Harnett County Sheriffs Office request approval to purchase software from Centtral Square (Tritech) to upgrade our Record Management Software. The Cost of the software upgrade is $ 139,631.94 which will be ftmded from the Sheriffs Asset Forfeiture Fund. The Sheriffs Office will use funds from the Federal Asset Forfeiture Fund to pay for the software upgrade. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: C:\Users\grncneill\Desktop\Agenda RMS Upgrade.docx Page I of I 120219a HCBOC Page37 General & Client Information Agency Narre: Harnett County Corrm.mications Center System Cescription: Harnett County NC -RMS Web Upgrade Oien! Contact: Gary M::Neil Contact Ftlone: (910) 893-0102 Contact Errail: gm::neill@harnett.org Expiration Date: 10/31/2019 Presented By: Rob Lowers Bill To: FO Box 1405 Lillington , NC, United States, 27546 Ship To: 175 W Cornelius Harnett Blvd Lillington , NC, United States, 27546 / Project Products & Services TriTech Software License Fee(s) Inform RMS Software License Fee(s) I Unit Price I I Inform RMS Reporting Server License $2,500.00 I Inform RMS TestorTrainingSystem so .oo Inform RMS Software UcenseFee(s) Subbtal: TriTech Software Ucense Fee(s) Total: TriTech Implementation Service Fee(s) Qty 1 1 Inform RMS Implementation Service Fee(s) I Unit Price I Qty Inform RMS 3-Day W>r11shop and Conrultation $4 ,200.00 3 Inform RMS Output DesignerW>r11shop 3 Day $4,200.00 1 Inform RMS Post Go Live System Optimization and Advanced Configuration wor11shop (3 days at the customer site) $5,600.00 1 Inform RMS Reporting ServerConfiguration $2,100.00 1 Inform RMS Server Installation and Configuration $7,700.00 2 Inform RMS User Training-Civil & VVarrants(3 Days) $4,200.00 1 QU0-91697-8XDWG8 Total Price $2 ,500.00 $0.00 $2,500.00 $2,500.00 Total Price $12,600.00 $4,200.00 $5 ,600 .00 $2 ,100.00 $15,400 .00 $4,200.00 ' Page 1 of 8 120219a HCBOC Page38 Inform RMS User Training-Field Officers(3 Days) $4,200.00 2 Inform RMS User Training-lnvestigalions(3 Days) $4,200.00 1 Inform RMS User Training-Property and Evidence Training (3 Days) $4,200.00 1 Inform RMS User Training-Records(3 days) $4 ,200.00 1 Professional Service -VisonRMS Data Transfer(Remote Service) $1,800.00 2 Inform RMS lmplementat,on Servrce Fee(s) Subtotal. TriTech Implementation Service Fee(s) Total: Project Related Fee(s) Product Name Unit Price Qty Project Management $20,000.00 1 E&imated Travel Expenses(To be billed as incurred) $26 ,675.00 1 BA Services to move Evidence, Warrant. andCivildatato IM!b RMS $3,150.00 1 Onste Go Live Support (3 days, one pers>n, angle ~ift) $4,200.00 1 Report writing Training (3 days) $4 ,200.00 1 Training Remoe 1/2 Day $700.00 6 Project Related Fee(s) Total: Hardware Product Name I Unit Price I Qty Inform RMS IM!b Evidence andBarcodeDe91lop Printer $62.1.99 2 Inform RMS IM!b Evidence and Barcoding Electronic Signature Pad $532 .2 7 1 Inform RMS IM!b Evidence and Barcoding LabelsforZebra printerusng Thermal Transfer labels $111.29 1 4" X 2" Inform RMS IM!b Evidence and Barcoding Scanner $949.00 2 Inform RMS IM!b Evidence and Barcoding Wax Ribbon cartridge for Zebra Printer $101.40 1 Shipping Fee $50.00 1 Hardware Total: Annual Maintenance Fee(s) (Year 1) Product Name Support Level Inform RMS Reporting Server license 8x5 Inform RMS Tes or Training System Maintenance QU0-91697-BXDWGB I $8,400.00 $4,200.00 $4,200.00 $4 ,200.00 $3,600.00 T T ' .,- $68,700.00 $68,700.00 Total Price $20,000.00 $26,675.00 $3,150.00 $4,200.00 $4,200.00 $4,200.00 $62,425.00 Total Price $1,243.98 $532.27 $111.29 $1,898.00 $101.40 $50 .00 r T $3,936.94 ,.? ..__ Total Price $450.00 $1 ,620.00 Page 2 of 8 120219a HCBOC Page39 Estimated Sales Tax: (State: at%) QU0-91697-8XD\/VG8 ~)TRITECH Annual MaintenanceFee(s) (Year 1): $1,987.20 Continuous Upgrade Fee(s) (Year 1): $82.80 Annual Maintenance Fee(s) (Year 1) Tota/:=====;;$!'i2;=;,0.;;7;;.0c=;.050? Taxable sales: $0.00 I ProjectTotal: $139,631.941 Subtotal: $139,631.94 Sales Tax Armunt: $0.00 Quote Total: $139,631.94 Page 3 of 8 120219a HCBOC Page40 ~)TRITECH Summary Information & Project Notes Workshop#l -Configuration and Ad min Workshop (3days on site) • Workshop#2 -Validation and Readiness Workshop (3days onsite) • Workshop #3 -Configuration and Admi n workshop for Other Event (3 days onsite) -Bui Id Your Own Module (such as create your own capture forms for Use of Force, K9, Sex Offender Registration, etc) and Case Management, Off-Line Incident Entry. • User Training-Fie Id Officers (3 day): Trai n-the-Trai nersession for up to 10 users. ( one 3-day session) • User Training-Records Or Investigators (3 day): Records or Investigators up to 12 users per session (three 1-day sessions) -These are customized to how Records and Investigators use the system differently from Officers and cover features I ike State Validations or Case Management that are used more heavily by other users. • Output Designer Workshop -How to use the output designer tool to design outputs to make templates for incidents and other events print out to look like an actual form. (SSRS training is not included.) • 1/2 Day Remote Trainings: o 4 x 2-hour remote sessions to follow-up on progress and temp late follow-up o 3 x 4-hour remote sessions for Property and Evidence Training o 1 x 2-hour remote session for Civil Training o 1 x 2-hour remote session forWarrantTraining • Server Installations x 2 o One to i nstalJ/set up the Web DB and 115 in production o One to install/set up the full training environment (Classic DB, Web DB, 115) OPTIONAL • Services forTriTech to Design Template Outputs -If the Agency does not want the Output Designer Training, this includes creation of the template and one form output designed for that template. Agency is to maintain both the template and form output after delivery. QU0-91697-8XDWG8 Page4 of 8 120219a HCBOC Page41 ~)TRITECH • Post Go Live System Optimization and Advanced Configuration workshop (3 days at the customer site) - Review and evaluate workflows, configuration, sand setups to help optimize efficiency. • Evidence Department requested a quote for barcode reader and printer HW for Classic RMS. Web RMS uses different HWand it has been quoted as optional in this quote. *NOTE: The training suggested in this quote is based off the modules available in Web RMS at the time the quote is de live red. As other modules become available in the Web environment, additional training may be re qui red. Terms and Conditions Payment terms are as follows SD°/o of all Software, Services, Support and fixed travel fees are due at time oforder -and-50% of all Software, Services, Support and fixed travel fees are due upon installation or completion of services (whichever comes later). Travel costs will be billed as incurred. 100% of Hardware amount will be invoiced upon acceptance of this quote and is due within 30days. Software License Terms: The Software is licensed for use by Client in accordance with the software I ice nsing terms of the System Purchase Agreement curre ntlyin effect between TriTech and Client Acceptance for the Software may be defined in the Statement of Work ('SOW'), if not, the Software licenses shall be deemed accepted on delivery. Acceptance for the TriTech Software I ice n.ses included in the Quotation wi II be governed by the standard terms set forth in TriTech's System Purchase Agreement, which shal I supersede any prior System Purchase Agreement. Any changes to scope of testing may result in a price increase for services. The annual Software Support Services for the TriTech Software licenses are provided for a period of twelve - months from the lnstal I ation date and shall be governed by the existing Software support Agreement currently in effect between TriTech and Client. Support fees wi II be prorated at re new al of the existing support term to adjust to the term to be co-terminous with the existing support agree mentte rm. Subscription License Terms: QU0-91697-8XDWG8 Page 5 of 8 120219a HCBOC Page42 The subscription term is 24 months unless otherwise stated. Customer will pay annually, and will have price protection for 24 months, excluding any new functionality (module and/or user) that is added to the annual subscription fee. The software included in this Proposal/Sales Quotation is provided on a subscription basis. All software and services quoted herein are governed by the terms ofTriTech's Subscription Services License& Use Agreement, a copy of which is attached to this quote. Please sign and return the attached Agreement with the quote unless a fully executed version of this Agreement is already in place between your agency and TriTech. Training Terms: In the event Client cancels a training course scheduled to be conducted on-site at Client's premises, TriTech shall be entitled to reimbursement of any fees TriTech may incur associated with cancellation of trave I and lodging for such training course. TriTech reserves the right to assess $1,000 cancellation fee for the training classes that are cancelled any later than 5 business days prior to the first day of the class, plus any additional fees or charges associated with the cancellation and rebooking of the airline tickets and other travel arrangements. TriTech reserves the right to assess 25% of the services fee, up to $1,000 as cancellation fee for any remote, or onsite installation services work that are cancelled by the Client at no fault ofTriTech any later than 5 business days prior to the date of performing the work. This may include the services that are cancelled or rescheduled due to the client's infrastructure not meeting the minimum requirements for the installation, lack of preparation of the site based on TriTech's documentation, issues with remote connectivity, or other barriers that result in the work being cancelled. Sales Tax: Any estimated sales and/or use tax has been calculated as of the date of quotation and is provided as a convenience for budgetary purposes. TriTech reserves the rightto adjust and collect sales and/or use tax at the actual date of invoicing, at the then current rates. Your organization must provide TriTech with a copy of a currenttax exemption certificate issued by your state's taxingauthorityforthe given jurisdiction, when your order is placed , if you are exempt from sales tax. General Terms: The items in this quotation are based upon meetings and communications with the Client and unless attached to a contract form the entirety of the deliverables from TriTech. All travel and out-of-pocket expenses will be invoiced as incurred, at actual cost, as they are not included in this quotation. The scope of Deliverables forthisorderwill be limited to the Software,Services, and Support and Maintenance that is explicitly listed herein for the listed quantities. This order provides Software licenses as well as required deployment services only for the environments that are explicitly listed herein (Production, Test, Training, Disaster Recovery, etc.). These software licenses do not apply QU0-91697-8XD WG8 Page 6 of 8 120219a HCBOC Page43 to any other existing environments, or environments that may be implemented in the future. Except as expressly identified in this Quotation as a line item to be provided byTriTech, all re quired computer hardware, third party system/database software, peripherals, network components and third party items shall be provided by the Client. All such Client provided third party items must meetTriTech's recommended specifications. Changes in the scope of certain components of the System may impact the cost and timelines for other areas of the Project. All services will be performed during normal business hours, unless otherwise stated in this quotation for specific service deliverables. Deployment and implementation ofTriTech Software and Services are based upon Client's provision and compliance with TriTech'sSystem Planning Document. Tri Tech reserves the right to adjust this Quotation as a result of changes including but not Ii mite d to project scope, deliverables (TriTech Software,orthird party software or hardware, including changes in the hardware manufacturer's specifications}, services, interface requirements, and Client requested enhancements. Installation Services will be performed based on the quantities that are listed in this quotation, and as listed for each environment. One installation line item does not include installation services in multiple environments. Quotation Issued by: Rob Lowers Email : rob.lowers@centralsguare.com Phone: 910-602-7245 ·. QU0-91697-SXDW GS Send Purchase Orders To : TriTech Software Systems c/o Centra1Square Technologies 1000 BusinessCenterDrive Lake Mary, FL 32746 Or Email: r ob.lowers@centralsguare.com Or Fax : (407) 304-3914 RemitPaymentsTo: TriTech Software Systems PO Box# 203223 Dallas, TX 75320-3223 Pag e 7 of 8 120219a HCBOC Page44 )))TRITECH Accepted for Client By signing below, you are indicating that you are authorized to obligate funds for your organization. To activate your order, check the appropriate box below and, either, (i) attach a copy of this quotation to your purchase order when it is remitted to TriTech, or, (ii) if no additional authorizing paperwork is required for your organization to accept and pay an invoice, sign below and fax this quotation to 1-407-304-3914 or email to rob.lowers@centralsguare.com to indicate your acceptance. D Purchase Order re qui red and attached, reference PO# D No Purchase Order required to invoice. Please check one of the following: D I agree to pay any applicable sales tax. on invoice. D I am tax exempt. Please contact me if TriTech does not have my current exempt information on file. Client Agency/Entity Name Client Authorized Representative Signature Client Authorized Representative TttlS INSTRUMENT HAS BEEN PREAUDITED IN TttE MANNER REQUIRED BY THE LOCAL GOVERNMENT BUDGET AND FISCAL CONTROL ACT QU 0-91697-BXD WG 8 Title Date Page 8 of 8 120219a HCBOC Page45 AGENDA ITEM 7 December 2, 2019 APPOINTMENTS NEEDED ADULT CARE HOME COMMUNITY ADVISORY COMMITTEE There are (5) vacancies on this committee. BOARD OF HEAL TH There is (I) vacancy for an engineer position on this board. DANGEROUS DOG COMMITTEE There is an alternate position on this committee. HARNETT COUNTY BOARD OF ADJUSTMENT There are vacancies for alternate members representing District 4 and 5 on this Board. HARNETT COUNTY PARKS AND RECREATION ADVISORY There is a vacancy for District 1 and District 5 HARNETT REGIONAL JETPORT COMMITTEE There is a vacancy for District 4. HISTORIC PROPERTIES COMMISSION There is (I) vacancy for District 3 and (I) vacancy for an alternate on this committee. LIBRARY BOARD OF TRUSTEES The Town of Coats recommends Crystal Overbee to serve a 3-year term as liaison. There are vacancies for at-large positions for District 2 and District 4. NURSING HOME COMMUNITY ADVISORY COMMITTEE There are (2) vacancies on this committee. SOUTHEASTERN ECONOMIC DEVELOPMENT COMMISSION There is one vacancy to serve on this board. TOWN OF ERWIN The Town of Erwin recommends Roger Brown as an out of town alternate for the Erwin P lanning Board. He was ap roved at the Nov. 7 Town of Erwin meeting. 120219a HCBOC Page46 I\IANAGEl\1 ENT Town M~nilgcr. Nick Hoiclm1b T,H\·n Attnme~. Alton Bain Chid' of Police, l\-1atthC\\ H;ill Public Work, Dirt:L·tor, Rodney Pka,ant Town Clt't"k. Karen Wooten Recreation Din:ctor. Mik..: Cnllins November 12th, 2019 GO\'ERNl'.'iG BOARD J\·1ay,,r Chris Coats \'1ayllr Pro Tern Jerry Be<lslcy Commissioner JC Allen Cnmmi~si,mcr Allen J\1oshy Cnmmbsionl'r .I.D. Raynor C'omrnissi<>llt'r Bob Hedrick The Town of Coats approves Crystal Overbee as the Library Board of Trustee Representative for the Coats Public Library to be effective December 1 si, 2019. Sincerely, Nick Holcomb Town Manager Post Office Box 675 • Coats, North Carolina 27521 (910) 897-5183 voice • (910) 897-2662 fax "711e Town of Coats is an Equal Employment Opporl!inity Employer. " 120219a HCBOC Page47 Shannon Eason From: Sent: To: Subject: Board: Voting District: Name: Address: City: Zip Code: Telephone: Email: Years of Formal Education: Civic and fraternal organizations: Why you would like to serve: Electronic Signature: Agreement: Harnett Website Tuesday, November 5, 2019 11 :35 AM Shannon Eason Application to Serve on a Board Harnett ~ Web 5ffe !Bguirr.. Recelf!.t COUNTY Harnett County Public Library Board of Trustees District 3 Crystal G Overbee 512 Old Stage Rd. Coats 27521 9102731840 Crystal.overbee@yahoo.com 15+ 1 have been involved with church for many years , where I facilitate a women's study group, and help with various other outreach ministries as the need arises. I also assist with Helping Hands clothing closet, as well as studying martial arts at Shelton Martial Arts Academy. I volunteer with my local library and town events. I also offer photography services free of charge at many community gatherings. My husband and I are local business owners which gives us a unique perspective and awareness oflocal civic interactions. I love my town's library, and I want to see it expand. A library should be a community hub where everyone can go to grow in knowledge and awareness. I hope that by serving in this capacity I can in some small way be a part of that development for the town of Coats. Crystal G Overbee 1 understand that checking this box constitutes a legal signature confirming that I acknowledge and agree to the above Terms of Acceptance. 1 120219a HCBOC Page48 APPLICATION FOR APPOINTMENT TO A BOARD FOR THE TOWN OF ERWIN, NORTH CAROLINA The Town of Erwin appreciates your interest in serving·on a Board and req u ests that you complete the following application. This application requests general information based on your interest in applying for a Board for the Town of Erwin. Applicant Name: ;j3,~ .&#«M) Date of Application: /t) t:f_t /'9 Home Address: ~~{!A4?£?4.{;E /JL,w;1,: )/C-:;2~~-f'9 Street Address Town /J Zip Code Home Phone?'ll' ... l'/~2.2,f.:.L D=n· ii8'0ther Phone:f/~ -$l3'S-<j7,:;;:s FAX Number: Email Address: t'o:J-e.rbrPtt.kl~~'(~n.,, In order to consider this application, tile Town of Erwin requests the folJowing information: Date of Birth~ t/1.. .. ./ ~ Do you reside within the Town Lirrti~ 21' Erwin: if~: Occupation : ~e.£1· g__ Length of residence in En.vin~-~ Years Months Have you ever pled guilty to or been found guilty or any criminal offense or been convicted of any offense other than a minor traffic violation? Yes_ No~ If yes, please explain. ________________________ _ Any evidence found to be incorrect on the application may result in disqualification. Planning Board _L_ R ecreation ~ Please note: If you are applying for the Planning Board you will not be able to serve on another Board. 120219a HCBOC Page49 MAP OF PROPOSED ALL-WAY STOPS ON NC 55 : \ Angier , . Pop. 5, 161 .7G .; .UllO t .. . n \ .s. \ \ :r: ~ I / / / / I l / ( i 1544 \ \ I AGENDAITEM~_,_8~~ Note: SR 1006 at SR 1532 was ~ z :::) 0 0 z 120219a HCBOC Page50 Harnett ~~,,..., C O U N T Y NORTH CAROLINA RESOLUTION BY THE HARNETT COUNTY BOARD OF COMMISSIONERS ENDORSING SAFETY IMPROVEMENTS IN HARNETT COUNTY BY NORTH CAROLINA DEPARTMENT OR TRANSPORTATION www.harne tt.org WHEREAS, the North Carolina Department of Transportation has requested a Resolution from the Harnett County Board of Commissioner's endorsing safety improvements at the intersection of NC 55 at SR 1532 (Oak Grove Church Road); and WHEREAS, the North Carolina Department of Transportation proposes to make improvements to this intersection. Said improvements will convert the intersection to an All-Way Stop to enhance the safety of this intersection; and WHEREAS, the construction to this improvement will be at no cost to Harnett County. NOW THEREFORE BE IT RESOLVED, that the Harnett County Board of Commissioners endorses the North Carolina Department of Transportation converting the intersection of NC 55 at SR I 532 (Oak Grove Church Road) to an All-Way Stop to enhance its safety. Duly adopted this the 2nd day of December, 2019. HARNETT COUNTY BOARD OF COMMISSIONERS Gordon Springle, Chairman ATTEST: Margaret Regina Wheeler, Clerk strong roots • new growth 120219a HCBOC Page51 PH•42100!04 OROER•4/000055396 NC 55 AT SR 1532 (OAK GROVE CHURCH RDl HARNE TT COUNTY ll/l/2013-10/31/2018 ---~ 18¥ ·-.... ~ ...... ,oa.a.1:, --cf<, ..... •I S: IIUI------"v-.......... ----LEGEND _J -· -,_ .. lll6 A --CIWIINft p --~ --10.,..IOJt B '"'" -·-"'"' T -•I• .. --. -.iEJtUr-., ~ -D ----w "' ---__.,.. M---f'111Uff SIGNAL JO: 06-0793 --~ .... I --0 N.C. DEPARTMENT of 'TRitNSPORTATION DIJIISION of HIGHWAYS TRANSPORTATION MOBILITY afld SAF£1Y DIYJSJON TRAFFIC SAFE1Y UNIT D•mlkc,,,,bnllll 120219a HCBOC Page52 06·19-57580 21-Dec-18 # Crash ID 1 104075550 2 104141133 3 104213042 4 104218602 5 104314769 6 104323433 7 104348498 8 104386765 9 104773713 10 105019672 11 105093511 12 105119435 13 105138918 14 105204437 15 105209201 16 105299202 17 105466134 18 105505969 19 105660683 Date 6/3/14 8/21/14 11/10/14 11/14/14 3/6/15 3/10/15 4/12/15 5/22/15 6/24/16 2/25/17 5/8/17 5/27/17 6/19/17 8/22/17 9/1/17 11/21/17 4/27/18 6/8/18 10/19/18 CRASH SUMMARY NC 5S at SR 1532 !Oak Grove Church Rd/ Guy Rd) Rear Time Angle LTOR end 8:41 1 9:57 1 13:29 1 20:01 1 17:44 1 15:40 1 0:44 15:59 1 15:27 1 13:15 1 17:18 1 22:54 1 18:28 1 20:55 1 15:37 1 16:49 1 18:15 1 22:06 1 17:31 1 13 2 3 Based on TEAAS: 41000055396 5YRS, from 11/1/13-10/31/18 ROR 1 F A B C p 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 2 9 8 K A B C P Comments NB 1532 failed to vield to \NB 55 SB 1532 ran stop sign w/EB 55 NB 1532 failed to vield to WB 55 EB 55 RE at intersection ltrafficl SB 1532 failed to vield to WB 55 EB 55 RE tumina riaht onto 1532 EB 55 ROR tumina left into d/w SB 1532 failed to yield to EB 55 WB 55 LT hit NB 1532 stoooed vehicle SB 1532 failed to vield to WB 55 NB 1532 LTw/EB 55 WB 55 RE SB 1532 failed to vield to EB 55 NB 1532 failed to vield to EB 55 NB 1532 failed to vield to WB 55 NB 1532 failed to vield to EB 55 SB 1532 failed to vield to EB 55 NB 1532 failed to vield to WB 55 NB 1532 ran stop sign w/EB 55 120219a HCBOC Page53 ~. Harnett <, ,('~· C O U N T Y ~' , NORTH CAROLINA RESOLUTION BY THE HARNETT COUNTY BOARD OF COMMISSIONERS ENDORSING SAFETY IMPROVEMENTS IN HARNETT COUNTY BY NORTH CAROLINA DEPARTMENT OR TRANSPORTATION www.harnett.org WHEREAS , the North Carolina Department of Transportation has requested a Resolution from the Harnett County Board of Commissioner's endorsing safety improvements at the intersection of NC 55 at SR 1006 (Old Stage Road); and WHEREAS, the North Carolina Department of Transportation proposes to make improvements to this intersection. Said improvements will convert the intersection to an All-Way Stop to enhance the safety ofthis intersection; and WHEREAS , the construction to this improvement will be at no cost to Hamett County. NOW THEREFORE BE IT RESOLVED, that the Harnett County Board of Commissioners endorses the North Carolina Department of Transportation convening the intersection of NC 55 at SR 1006 (Old Stage Road) to an All-Way Stop to enhance its safe ty. Duly adopted this the 2nd day of December, 2019. HARNETT COUNTY BOARD OF COMMISSIONERS Gordon Springle, Chairman ATTEST: Margaret Regina Wheeler , Clerk strong roots • ne w growth 120219a HCBOC Page54 NC PH ** 42100149 Order ** 4100005 7518 55 © SR 1006 (Old Stage Harnett County 07/01/2009 -6/30/2019 Nore: Rd) In Crash #18, vehicle I Ran Offtlu Road -Righi ro avoid colli.iwn with vehicle 2 who failed 10 yield Righi of Way NC 55 SR 1006 (Old Stoge Rd) 35 MPH 2014 AOT: 1,400 •• 55 MPH 41,. B _j . I I • Tgj". ~o''. 7 ~ .i l<p.T __. iD• --2014 AD-T:_5_,0_0_0 ____________ ~ 111-~ -~-=----=--=-----=--3 l~ ·,. r ~~* ~-.... -------~®~~.,1-=._t>_ -----~~-,,___--A-~--y I SR 1006 (Old Stoge Rdl 35 MPH 2014 ADT: 910 LEGEND . -._ .. ,, ------r -D "' . •. A:COM l'r,pond For. N.C. DBPARrMBNT of rRANSPORr.tnON DIVISION of mGHWAYS TRANSPORT.tnON MOBIUTI' tnUI SAFEn' DWISION TRAFFIC SAFETY UNIT 120219a HCBOC Page55 06-19-58968 29-Jul-19 # Crash ID 1 103123173 2 103162144 3 103498814 4 103572769 5 103591064 6 103641050 7 103680402 8 103828086 9 103910335 10 103932802 11 103944925 12 103987444 13 104060260 14 104161502 15 104193842 16 104382709 17 104904547 18 104919457 19 105031612 20 105152405 21 105196124 22 105181587 23 105296589 24 105347310 25 105441152 26 105450434 27 105600762 28 105613231 29 105686127 30 105712990 31 105765862 32 105809507 33 105838978 34 105852486 35 105845878 36 105848324 37 105861784 38 105883030 39 105892265 40 105899743 41 105910960 42 105912860 43 105912867 Date 3/24/11 5/22/11 7/12/12 10/16/12 11/5/12 12/10/12 2/16/13 8/9/13 11/21/13 12/17/13 1/6/14 2/25/14 5/16/14 9/18/14 10/20/14 5/16/15 11/6/16 11/16/16 3nt17 7/5/17 7/12/17 7/30/17 11/19/17 1/8/18 4/5/18 4/13/18 9/10/18 9/22/18 11/22/18 12/12/18 1/21/19 3/21/19 4/19/19 4/25/19 4/26/19 4/28/19 5/8/19 6/1/19 6/1 1/19 6/17/19 6/26/19 6/28/19 6/28/19 Time Anale LTDR LTSR 12:00 1 18:14 1 11:07 1 13:06 1 7:46 18:43 1 14:28 1 8:59 1 5:51 18:00 1 9:23 1 5:56 18:55 1 15:51 8:27 1 15:36 1 13:23 1 7:05 7:35 1 17:10 18:27 1 15:06 1 21:29 1 9:27 16:19 1 9:16 1 15:57 1 3:40 1 11:32 1 17:01 18:03 1 12:03 1 20:33 1 20:44 1 11:00 1 17:51 1 22:10 1 23:34 1 13:37 1 8 :36 1 22:13 1 16:28 1 17:28 1 29 2 4 RE 1 1 2 CRASH SUMMARY NC 55 @ SR 1006 (Old Stage Rd) ROR ss 1 1 1 1 1 4 Based on TEAAS: 4100 00 575 18 5 YRS, from 7/1/09-6/30/19 Other F A B C p Comments 1 EB 55 LT (illeaallv oassina LT vehicle) 1 NB 1006 failed to 11ield to we 1 NB 1006 ran stoo sian w/WB 1 NB 1006 failed to Yield to we 1 EB 55 rear end 1 SB 1006 ran stoo s1an w /EB 1 SB 1006 failed to yield to EB 1 NB 1006 failed to Yield to we 1 WB 55 ROR (before intersection\ 1 NB 1006 failed to yield to we 1 NB 1006 ran stoo sian w /EB 1 WB 55 ROR (avoiding anale w/NB\ 1 SB 1006 ran stop sian wNVB 1 EB 55 rear end 1 SB 1006 ra n stop s1an wNVB 1 NB 1006 LT failed to vield 1 NB 1006 failed to vield to we 1 WB 55 ROR <avaidina angle w/SBl 1 NB 1006 LT failed to vield to EB 1 NB 1006 ROR (before intersection) 1 NB 1006 failed to vield to we 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 2 5 15 21 K A B C P NB 1006 failed to Yield to WB NB 1006 ran stop sian wM/8 WB 55 movable obiect NB 1006 ra n stop sian wNVB WB 55 LT (illeaallv oassina LT vehicle\ NB 1006 ran stop s1an wNVB SB 1006 failed to yield to EB NB 1006 failed to yield to WB NB 1006 oassina SS (north of intersectioril NB 1006 failed to yield to WB NB 1006 failed to yield to WB SB 1006 LT failed to vield to WB NB 1006 failed to 11ield to WB NB 1006 failed to 11ield to WB SB 1006 ran stop sian wM/8 NB 1006 failed to vield to EB SB 1006 ra n stoo sian w/EB NB 1006 failed to Yield to WB SB 1006 failed to vield to EB SB 1006 r an stoo sian w/EB SB 1006 failed to Yield to EB EB 55 LT (failed to yield) 120219a HCBOC Page56 Board Meeting Agenda Item AGENDAITEM___./~DE--~-..: MEETING DATE: December 2, 2019 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT : Development Agreement between the County and Greenfield Serenity, LLC. R EQ UESTED BY: Christopher Appel, Senior Staff Attorney REQUEST : Legal Services is requesting review of the development agreement between the County and Gre enfield Serenity, LLC. and seeking guidance regarding the advertisement for public hearing for and con sideration of on December 16, 2019. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: C:\Users\gwheele r\AppData\Loca l\M icrosoft\Wind ows\INetCache\Cont ent.Outl ook\OZMK66X9\Agenda request -Sere n ity Poi nte (002).docx Page I of I 120219a HCBOC Page57 ST ATE OF NORTH CAROLINA COUNTY OF HARNETT AGREEMENT REGARDING A PLANNED UNIT DEVELOPMENT BY AND BETWEEN GREENFIELD SERENITY, LLC & HARNETT COUNTY, NORTH CAROLINA THIS AGREEMENT, made and entered into this _day of , 20 __ , by and between HARNETT COUNTY, a North Carolina body politic and county, hereafter referred to as the "County" and GREENFIELD SERENITY, LLC, a North Carolina limited liability company hereafter referred to as the "Developer." WITNESS ETH: WHEREAS, Developer owns certain unimproved land s located in Harnett County, North Carolina and within the jurisdiction of County and being commonly referred to as the following parcels: (a) PIN # 0645-95-9146 being approximately 65.78 acres; (b) PIN # 0655-23-9685 being approximately 46.67acres ; ( c) PIN # 0655-13-8762 being approximately 44 acres ; ( d) PIN # 0655-03-4488 being approximately 44.27 acres; (e) PIN# 0645-82-8633 being approximately 253.7 acres; (f) PIN# 0645 -72-7454 being approximately 18 acres; and Each parcel being more particularly shown on that certain exterior boundary survey entitled "Boundary Survey Prepared for Greenfield Communities, Piney-Grove Rawls Road, Fuquay- Varina, North Carolina" dated on or about March 8, 2019 prepared by Terry L. Westendorf, PLS- 3232 of Timmons Group, a copy of which is attached hereto as Exhibit A and by this reference made a part hereof (the "Rawls Survey"). Said six parcels of land containing approximately 472.42 acres in total and being hereinafter referred to collectively as the "Rawls Section," all of which is subject to this Agreement. WHEREAS , the Rawls Section is hereinafter referred to as the "Property." WHEREAS, On July 9, 2018, the Developer's predecessor in interest, Greenfield Co mmunities, LLC obtained a Conditional Use Permit from the County's Board of Adjustment 1 120219a HCBOC Page58 authorizing the development of the Property into a Planned Unit Development. The Conditional Use Permit, BA-CU-21-18 was approved by the Hamett County Board of Adjustment on July 9, 2018 and is incorporated herein by reference (hereinafter, "Rawls Section PUD"). WHEREAS, the Rawls Section PUD and two other parcels of land containing approximately 106.56 acres in total known as the Smith Betts Section PUD are being developed into a residential development commonly referred to as "Serenity" (hereinafter the "Residential Project"). WHEREAS, at the time of the Hamett County Board of Adjustment's approval of the Rawls Section PUD, the Hamett County Unified Development Ordinance (the "UDO") required that if a developer opted to construct residential homes on residential lots less than 9 ,000 square feet, the homes shall include interior residential sprinkler systems. WHEREAS, after the Hamett County Board of Adjustment's approval of the Rawls Section PUD, the Hamett County Board of Commissioners amended the UDO, deleting the option to construct residential homes on residential lots containing less than 9,000 square feet. WHEREAS, pursuant to N.C.G.S. § 143-755, Developer may choose which version of the UDO will apply to the Property. WHEREAS, Developer desires to apply the pre-amended UDO to construct residential homes on less than 9,000 square feet residential lots in accordance with the approved Rawls Section PUD and this Agreement. WHEREAS, Developer voluntarily requested County to allow Developer to install fire protection measures other than residential sprinkler systems in residential homes in phases that contain residential lots less than 9,000 square feet on the Property. WHEREAS, the County has agreed to allow Developer to construct residential homes on less than 9,000 square feet in accordance with the approved Rawls Section PUD with fire protection measures other than the installation of interior residential sprinklers systems. WHEREAS, the County is authorized to enter into this Agreement pursuant to N.C.G.S. § 153A-349.1 through§ 153A-349. l 3, NOW, THEREFORE, in consideration of the mutual promises, covenants and benefits contained herein, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the County and the Developer agree and covenant as follows: ARTICLE I The Property and the Legal and Equitable Owners of the Property 2 120219a HCBOC Page59 1. Recitals. The foregoing recital shall constitute an integral part of this Agreement, and this Agreement shall be construed in light thereof. 2. Legal Description of Property. The Rawls Section is described on Exhibits A and further described in the following deeds , recorded in the Hamett County Register of Deeds: Book 3632, Page 993; Book 3694, Page 946; Book 3695 Page 584; Book 3697 Page 874; Book 3697 Page 892; Book 3709 Page 467; and Book 3711, Page 808. 3 . Names of the Legal and Equitable Property Owners. a. Rawls Section is owned by the Developer. ARTICLE II Development Uses Permitted on the Property 1. Homes Less Than 9,000 square feet in the Rawls Section PUD. Developer shall delineate the lots between those lots that are 9,000 square feet or greater and those lots that are less than 9,000 square feet. Those phases within the Rawls Section PUD recorded plat that include lots less than 9,000 square feet in size shall be referred to as a "Special Wall Phase." Developer shall reference and note the Special Wall Phases on each final plat submitted for record. Homes constructed in Special Wall Phases of the Rawls Section PUD shall be constructed without interior sprinklers and shall include the below described "Special Wall Assembly." The below described Special Wall Assembly shall be limited to the exterior home wall that directly faces an adjacent home on the side of the lot, not including front and rear elevations and excepting sides that face a street or open space. Each Special Wall Phase should only contain lots that are less than 9,000 square feet; however, if a Special Wall Phase contains lots that are 9,000 square feet or greater, the Special Wall Assembly shall also apply to those lots. County, its employees, inspectors, contractors and other officials shall have no obligation to differentiate between lots less than 9,000 square feet and those equal to or greater than 9,000 square feet in each Special Wall Phase and shall rely solely on the Developer's Special Wall Phase references and notations on each recorded plat. 3. No Doors. For homes constructed on lots in the Special Wall Phases of the Rawls Section PUD, no entrance doors shall be allowed on the exterior home wall that directly faces and adjacent home on the side of the lot, not including front and rear elevations and excepting sides that face a street or open space. Windows shall be allowed, provided the windows are fire-rated. 4. Special Wall Assembly. The Special Wall Assembly, as defined below, shall only be applicable to the Special Wall Phases in the Rawls Section PUD. All other sections of the Residential Project must comply with the then-current UDO at the time of submission for approval by the Hamett County Board of Adjustment or Development Review Board. 5. Special Wall Assembly. a. The Special Wall Assembly shall incorporate one layer of half-inch (1 /2 ") fire-rated plywood. 3 120219a HCBOC Page60 b. The roof system connecting to the Special Wall Assembly shall utilize a layer of half-inch (1/2 ") fire-rated plywood that shall extend a minimum 4 ' away from the special wall assembly. c. All soffits located above these Special Wall Assemblies shall be sealed with five-eights (5 /8") plywood such that there is no opening in the soffit for fire to spread to the attic. All soffits connecting to the Special Wall Assembly and a minimum of four feet ( 4 ') of connecting front and rear soffit shall be sealed with two (2) layers of fire rated plywood or one (1) layer of five-eights (5 /8") exterior or moisture resistant gypsum board (i.e. sheetrock). d . The Special Wall Assembly shall be constructed using an exterior fa9ade siding of fiber cement or a siding of similar, non-combustible material. 6. Permitted Uses. Uses permitted on the Property, including densities, building types, intensities, placement on the site and design shall be in accordance with the Rawls Section PUD, and to the extent not in conflict with this Agreement, the terms and provisions of the UDO. ARTICLE Ill Description of Public Facilities Serving the Development Developer shall construct and dedicate for public use all streets, sidewalks, water and sewer systems, and all other required infrastructure for the Property. Water and sewer systems, streets, sidewalks, and all other required infrastructure shall be installed and constructed by the Developer at its expense in accordance the approved Rawls Section PUD, UDO, and all other applicable local , state, and federal laws, rules, regulations, and ordinances and shall obtain all necessary approvals and permits. Approval of any plat/plan does not guarantee water capacity or wastewater capacity. Current/future capacity may not be available. The Residential Project may require additional improvements to the existing water and wastewater system to meet future water and wastewater demands prior to preliminary plat, construction plan, and/or final plat approval. ARTICLE IV Land Reserved or Dedicated for Public Purposes Land shall be reserved and/or dedicated for public purposes in accordance with the approved Rawls Section PUD. ARTICLE V Development Permits The Developer shall be required to obtain all development permits from the County, the State of North Carolina and the United States Government that are required to develop the Rawls Section PUD in compliance therewith. The failure of this Agreement to address a particular permit, condition, term, or restriction does not relieve the Developer of the necessity of complying with the law governing their permitting requirements , conditions, terms or restrictions. 4 120219a HCBOC Page61 ARTICLE VI Development Schedule Within five (5) years of the Harnett County Board Commissioners adoption of this Agreement, Developer shall have commenced and substantially obtained final plat approval of one-third (1/3) of the building lots to be contained in the Rawls Section PUD . Within ten (10) years of the Hamett County Board Commissioners adoption of this Agreement, Developer shall have commenced and substantially obtained final plat approval of two-thirds (2 /3) of the building lots to be contained in the Rawls Section PUD. Within fifteen (15) years of the Harnett County Board Commissioners adoption of this Agreement, Developer shall have commenced and substantially obtained final pl at approval for all building lots to be contained in the Rawls Section PUD. ARTICLE VII Additional Provisions 1. Expiration. This Agreement shall last fifteen (15) years from the date of this Agreement; provided the County and Developer are not precluded from entering into subsequent development agreements that may extend the original duration period. 2. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. The parties consent to the jurisdiction of Harnett County. Furthermore, this Agreement is entered under the authority of N.C.G.S. § l 53A-349.6, and any provision hereof in conflict with that authority shall be null and void. 3. Entire Agreement. This Agreement, along with the Approved PUDs, Subdivision Plans , and the construction drawings for the Residential Project, contain the entire agreement of the parties for matters herein contemplated, and there are no representations , inducements or other provisions other than those expressed in writing. 4. Default. The terms and conditions of this Agreement shall be enforceable by the parties by actions for specific performance or injunction in addition to any other remedies available at law or in equity, subject to any defenses that may be as serted, provided that the non-defaulting party provides due notice and an opportunity to cure to the defaulting party and the defaulting party fails to cure the breach within sixty (60) days after receipt of such notice. Notwithstanding the foregoing sentence, if the breach is of a nature that it cannot be cured within such 60 day cure period, and further provided the defaulting party commences to cure the breach within 60 days after receipt of such notice and thereafter diligently and using commercially reasonable efforts pursues the cure to completion, the non-defaulting party shall not commence enforcement of its remedies. Any failure or omission of the non-defaulting party to exercise any right or remedy provided herein shall not be deemed a waiver of such party's right to enforce strictly the defaulting party 's obligations in any other instance. The parties acknowledge that individual residents and owners of the completed residential homes in the Special Wall Phases shall not be obligated for the obligations of the County o r Developer set forth in this Agreement. 5 120219a HCBOC Page62 5. Force majeure. Neither party to this Agreement shall be in breach or default of any provisions hereof by reason of delay or failure in the discharge or performance of any duty or obligation hereunder due to acts of God, war, government laws or regulations, civil disorder, labor difficulties , inability to obtain materials, or any other such cause beyond the party 's reasonable control (each and collectively, "force majeure delays"). In the event of force majeure delays, all time periods and time deadlines in this Agreement shall be extended automatically for the period of such force majeure delay. 6. Authority. The County and Developer each warrant and represent to the other that it has full right and authority to enter into this Agreement, and that the person signing on behalf of each party is authori zed to do so. 7. Relationship of the Parties. This Agreement shall not be considered to create a joint venture, partnership or other legal relationship between the parties or as giving the right of either party to legally bind the other party in any manner or to be able to incur debts or liabilities on behalf of the other party or create a condition in which either party shall share or be responsible for the debts or liabilities of the other party. This Agreement shall not be considered to constitute the appointment of either party as a representative of the other party. 8. Severability. If any provision of this Agreement is detennined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. Furthermore, in lieu of such invalid or unenforceable provision, there shall be added as a part of this Agreement a mutually agreed upon valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be reasonably possible. However, if for any reason the Special Wall Assembly is deemed invalid or unenforceable and a similar and mutually satisfactory provision cannot be added to this Agreement, Developer, its successors and/or assigns as the case may be shall require that homes constructed after the date that the Special Wall Assembly is deemed invalid or unenforceable include interior residential sprinklers in homes on lots less than 9,000 square foot in accordance with the UDO in effect at the time of approval of the Rawls Section PUD; or Developer, its successor and/or assigns as the case may be shall re-design all lots not having final plat approval in the Rawls Section PUD such that all lots inside the Rawls Section PUD not having final plat approval as of the date that the Special Wall Assembly is deemed invalid or unenforceable be 9,000 square feet or greater. 9. Amendment. This Agreement may not be amended or terminated except by written instrument signed by both parties. 10. Assignment. This Agreement may not be assigned without the written consent of the County. The obligations under this Agreement are binding on the successors and/or assigns of the Developer regardless of whether or not the County consented to such assignment. 11. Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and there are no representations , warranties , covenants or obligations except as set forth in this Agreement. This Agreement supersedes all prior and contemporaneous agreements , understandings, negotiations and discussions relating to the subject matter hereof, written or oral , of the parties . 6 120219a HCBOC Page63 12. Approval. This Agreement does not guarantee any specific approvals of any proposed development plan, provided, however, that all approvals granted prior to the date of this Agreement shall continue to be valid and in full force and effect. 13. Exhibit List: The following exhibits are hereby incorporated by reference: Exhibit A 14. Recordation/Binding Effect. Within fourteen (14) days after County enters into this Agreement, Developer shall record this Agreement with the Harnett County Register of Deeds. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors-in-interest to the parties hereto. 15. Notices. All notices required or desired to be given under this Agreement shall be in writing and either: (a) hand-delivered, (b) sent by certified mail, return receipt requested, (c) sent via FedEx or similar overnight service, or ( d) sent via electronic mail, so long as notice is also provided through either method (a), (b) or (c) as herein described. All notices shall be addressed to the party being noticed, and shall be deemed to have been given (w) when delivered, ifby hand delivery, (x) three (3) business days after deposit in a U.S. Post Office or official letter box, if sent by certified mail, (y) one (1) business day after timely deposited in a FedEx or similar overnight service depository, or (z) upon confirmation of receipt by sender if sent via electronic mail. All notices shall be delivered or sent prepaid for the specified service by the party giving notice, and shall be addressed as follows be to the following: FOR THE COUNTY: Paula Stewart County Manager Post Office Box 759 420 McKinney Parkway Lillington, North Carolina 27546 With copy to: Senior County Staff Attorney Post Office Box 238 420 McKinney Parkway Lillington, North Carolina 27546 FOR THE DEVELOPER: Greenfield-Serenity, LLC ATTN: Matt Brubaker, Manager 8601 Six Forks Road Suite 270 Raleigh, North Carolina 27615 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. ( County Seal) HARNETT COUNTY BY: _____________ _ ----------------County Manager 7 120219a HCBOC Page64 ATTEST: -----------------Clerk -----------------Deputy c:lerk DEVELOPER GREENFIELD -SERENITY, LLC By: ____________ _ Name: ------------Tit I e: ------------- Dated: , 2019 ---------- By: _____________ _ Name: ------------Tit I e: -------------Dated: , 2019 ---------- T his document is sufficient as to form. , County Attorney Thi s instrument has been pre-audited in the manner proscribed by the Local Government Finance Act. Finance Director NORTH CAROLINA HARNETT COUNTY I, a Notary Public of the County and State aforesaid, certify that _____ _ personally came before me this day and acknowledged that she is the C lerk/Deputy Clerk of Hamett County, and that the seal affixed to the foregoing instrument in writing i s the corporate seal of said County, and that said writing was signed and sealed by her in behalf of said 8 120219a HCBOC Page65 corporation by its authority duly given and the said person acknowledged this writing to be the act a deed of said corporation . WITNESS my hand and official stamp (or seal), this the_ day of ____ _ Notary Public My Commission Expires: _________ _ CORPORATE ACKNOWLEGEMENT NORTH CAROLINA COUNTY --------- I, a Notary Public of the County and State aforesaid, certify that ________ _ personally came before me this day and acknowledged that he/she is the _______ _ of , and that the seal affixed to the foregoing instrument in writing is the corporate seal of said corporation, and that said writing was signed and sealed by her in behalf of said corporation by its authority duly given and the said person acknowledged this writing to be the act a deed of said corporation. Notary Public My Commission Expires: _________ _ [Affix notary seal] 9 120219a HCBOC Page66 Board Meeting Agenda Item AGENDA ITEM~~'~'~----' MEETING DATE: December 2, 2019 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Amendments to Harnett County Personnel Ordinance REQUESTED BY: Brian Haney, Assistant County Manager and Christopher Appel, Senior Staff Attorney REQUEST: Administration and Legal present the following amendments to the Hamett County Personnel Ordinance for consideration: Adding definitions for Regular Work Schedule Employee and Irregular Work Schedule Employee under Article I, Section 3. Amending Article III, sections 11 and 12. The purpose of these amendments is to clarify the County's policies regarding the accrual of overtime and compensatory time, and to provide consistency among County departments regarding time sheet entry and the avoidance of overtime and compensatory time accrual where possible. Amending Article VI , sections 7, 9 and 13 , and Article VII , section 1. The purpose of these amendments is to provide clarification regarding health benefits for current County employees and retirees . FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: C:\Users\gwheele r\Ap pDat a\Local\M ic rosoft\ Windows\l NetCache\Cont en t.Outl ook\OZMK66X9\201 9 . 12.02 Agenda Request -Personn e l Ordina nce.docx Page I of2 120219a HCBOC Page67 (The fo ll o win g defin itio ns will be added under Article I, Sect i on 3.) Irregu lar Wo rk Sc hed u le Emp loyee: Any employee who, on a regular, rotating, or intermittent basis, works an evening or night who ma intains a work schedule beyond the day shift or any employee who wo rks a day shift whose work schedule is subject to change on a regu lar, rotating , or intermittent basis. Regu lar Work Sched ul e Em ployee: Any employee who typ ically works a set sched ul e which consists of an average of 40 hours a week or 2080 hours per year. Sec t ion 11 . Overtime/ Compen satory Time Definition : Overtime work or work that will result in the accumulation of compensatory time shall be considered ( 1) any hours worked greater than 40 hours in a normal work week, or (2) work performed by any County employee at the direction , instruction , or knowledge of a Supervisor, Department Head , or authorized managerial representative, which exceeds the normal work week or work period of the employee . Planning to avoid overtime: It is the policy of Harnett County that overtime or the accumulation of compensatory time be avoided at all times. Therefore, Supervisors or Department Heads should arrange their employee work schedules so as to avoid overtime by accomplishing the required work within the hours of a normal workweek . Authorization: All overtime must be duly authorized by a Supervisor or Department Head before payment for such services are rendered . Exempt Employees : Exempt employees, as defined by the Fair Labor Standards Act ("FLSA"), are (1) provided a salary for the completion of their occupational duties and responsibilities that does not change from pay period to pay period based on variations in quality or quantity of work, (2) earn at least $455 per weekea rn at o r above the minim um wage es tablished by FLSA , and (3) are designated employees in executive , administrative , or professional positions, with in the meaning of those terms as set forth in the United States Department of Labor Regulations . Such employees are exempt from earning any overtime pay in accordance w ith the FLSA, but , if required to work o vertime, shall receive compensatory time off at a rate of one (1) hour for each hour of overtime worked. A . Such employees will be paid at their regular pay rate for all overtime hours or accrued compensatory time in excess of 80 hours. B . All oi.iertime hours or accrued co mpensatory time in excess of forty (40) hours as of June 15 of each year shall be converted to annua l leave . Each two hour period of compensatory time , or fraction thereof, shall be converted into one quarter (1 /4) day of annual leave. Amended January 2016 ~B . In the event that a salari ed employee is terminated, they shall be paid fo r accrued compensatory time up to two hundred and forty (240 )eighty (80) hours at the regular rate . 120219a HCBOC Page68 ~C. In special circumstances , the BOC reserves the right to compensate salaried employees for any overtime worked with monies earned . Non-exempt employees: Designated employees in other areas of employment for the County are entitled to overtime pay in accordance with the FLSA. Two types of non- exempt employees exist: (1) regular work schedule employees and (2) irregular work schedule employees. A. Regular work schedule employees, required to work overtime , shall receive compensatory time off. The compensatory time shall be computed at one and one-half (1 and Yi ) hou rs for each hour of overtime worked . 1. Regular work schedule employees who accrue compensatory time in excess of 80 hours shall be pa id overtime pay. 0 . In the event that a regular work schedule emp loyee accrues compensatory time in excess of two hundred and forty (240) hours or four hundred and eighty (480) as appropriate , they shall be paid overtime pay. In this case , overtime pay shall be computed on an hour for hour basis for each hour of excess compensatory t ime . G:-8 . Irregular work schedule employees , shall not accrue compensatory time off because the granting of such time would unduly disrupt the work schedules of such positions . 1. Such employees shall be paid overtime pay at one and one-half (1 and Yi ) times their regular pay rate for each hour worked in excess of their designated work schedule . 2 . The County Manager shall designate those class of employees entitled to overtime pay in lieu of compensatory time. Law Enforcement Officers: Sworn law enforcement officers shall only re ceive overtime pay at the rate of one and one-half (1 and Yi ) times their regular rate of pay for any hours worked over the first 171 hours worked in a 28-day cycle . Use: In accordance with County policy and the Harnett County Finance Office Departmental Guidelines , compensatory time must always be exhausted prior to expending vacation time . Termination : Any employee who has accrued compensatory tim e off, upon complete termination, shall be pa id for all unused compensatory time at a rate of co mpensation not less than : (1 ) the average regular rate re ceived by such employee during the last three (3) years of the employee's employment; or (2) the final regular rate received for su c h anthat employee , 1.vhi chever is higher. Secti on 12. Tim e Shee t s Any time sheets required by County policy shall accurately refle ct the hours worked by employees . Howeve r, wo rk sc hedule s ca n be ad justed in som e c ircumsta nc es to 120219a HCBOC Page69 provide the flexibility needed to address situations that require employees to work more than their regular work week without significant additional costs. In order to adhere to Article Ill, Section 11 of the Harnett County Personnel Ordinance, "Planning to avoid overtime," employees should adjust their time sheets within the work week to avoid overtime or the accumulation of compensatory time whenever possible. Even though an employee may work more than their regular schedule in a given workday, their work schedule shall be adjusted so that they do not work more than their regular schedule in a given work week, thereby avoiding overtime or the accumulation of compensatory time . There may be situations in which an employee must physically work more than their regular work week and overtime or the accumulation of compensatory time is unavoidable, however whenever possible, overtime or the accumulation of compensatory time should be avoided . Adjustments of time within the same work week should be the first recourse of supervisors. who are charged with managing and controlling overtime or the accumulation of compensatory time . Such tiime sheets shall be signed approved and certified by the employee and Supervisor prior to submission to Payroll. SigningApproving the timesheet is an indication the supervisor agrees with the time as recorded by the employee and is an authorization to pay the employee according to recorded time . 120219a HCBOC Page70 (The following definitions will be added under Article I, Section 3.) Irregular Work Schedule Employee: Any employee who, on a regular, rotating, or intermittent basis , works an evening or night who maintains a work schedule beyond the day shift or any employee who works a day shift whose work schedule is subject to change on a regular, rotating, or intermittent basis. Regular Work Schedule Employee: Any employee who typically works a set schedule which consists of an average of 40 hours a week or 2080 hours per year. Section 11 . Overtime/ Compensatory Time Definition: Overtime work or work that will result in the accumulation of compensatory time shall be considered (1) any hours worked greater than 40 hours in a normal work week, or (2) work performed by any County employee at the direction, instruction, or knowledge of a Supervisor, Department Head, or authorized managerial representative, which exceeds the normal work week or work period of the employee. Planning to avoid overtime : It is the policy of Harnett County that overtime or the accumulation of compensatory time be avoided at all times. Therefore, Supervisors or Department Heads should arrange their employee work schedules so as to avoid overtime by accomplishing the required work within the hours of a normal workweek. Authorization: All overtime must be duly authorized by a Supervisor or Department Head before payment for such services are rendered. Exempt Employees: Exempt employees, as defined by the Fair Labor Standards Act ("FLSA"), are (1) provided a salary for the completion of their occupational duties and responsibilities that does not change from pay period to pay period based on variations in quality or quantity of work, (2) earn at or above the minimum wage established by FLSA, and (3) are designated employees in executive, administrative, or professional positions, within the meaning of those terms as set forth in the United States Department of Labor Regulations. Such employees are exempt from earning any overtime pay in accordance with the FLSA, but, if required to work overtime, shall receive compensatory time off at a rate of one (1) hour for each hour of overtime worked. A. Such employees will be paid at their regular pay rate for all overtime hours or accrued compensatory time in excess of 80 hours. B . In the event that a salaried employee is terminated , they shall be paid for accrued compensatory time up to eighty (80) hours at the regular rate . C. In special circumstances, the BOC reserves the right to compensate salaried employees for any overtime worked with monies earned. Non-exempt employees: Designated employees in other areas of employment for the County are entitled to overtime pay in accordance with the FLSA. Two types of non- 120219a HCBOC Page71 exempt employees exist: (1) regular work schedule employees and (2) irregular work schedule employees . A. Regular work schedule employees, required to work overtime, shall receive compensatory time off. The compensatory time shall be computed at one and one-half (1 and%) hours for each hour of overtime worked. 1. Regular work schedule employees who accrue compensatory time in excess of 80 hours shall be paid overtime pay. B. Irregular work schedule employees, shall not accrue compensatory time off because the granting of such time would unduly disrupt the work schedules of such positions. 1. Such employees shall be paid overtime pay at one and one-half (1 and %) times their regular pay rate for each hour worked in excess of their designated work schedule . 2 . The County Manager shall designate those class of employees entitled to overtime pay in lieu of compensatory time . Law Enforcement Officers: Sworn law enforcement officers shall only receive overtime pay at the rate of one and one-half (1 and %) times their regular rate of pay for any hours worked over the first 171 hours worked in a 28-day cycle. Use: In accordance with County policy and the Harnett County Finance Office Departmental Guidelines, compensatory t ime must always be exhausted prior to expending vacation time. Termination : Any employee who has accrued compensatory t ime off, upon complete termination , shall be paid for all unused compensatory time at the final regular rate received for that employee. Se ct io n 12 . Time Sheet s Any time sheets required by County policy shall accurately reflect the hours worked by e mployees . However, work schedules can be adjusted in some circumstances to provide the flexibility needed to address situations that require employees to work more than their regular work week without significant additional costs . In order to adhere to Article Ill, Section 11 of the Harnett County Personnel Ordinance, "Planning to avoid overtime ," employees should adjust their time sheets within the work week to avoid overtime or the accumulation of compensatory time whenever possible. Even though an employee may work more than their regular schedule in a given workday, their work schedule shall be adjusted so that they do not work more than their regular schedule in a given work week, thereby avoiding overtime or the accumulation of compensatory time . There may be situations in which an employee must physically work more than their regular work week and overtime or the accumulation of compensatory time is 120219a HCBOC Page72 unavoidable, however whenever possible , overtime or the accumulation of compensatory time should be avoided. Adjustments of time within the same work week should be the first recourse of supervisors, who are charged with managing and controlling overtime or the accumulation of compensatory time . Time sheets shall be approved and certified by the employee and Supervisor prior to submission to Payroll. Approving the timesheet is an indication the supervisor agrees with the time as recorded by the employee and is an authorization to pay the employee according to recorded time. 120219a HCBOC Page73 Sect ion 6. Berea v ement Leave The Bereavement Leave Policy, effective 7/1 /19, establishes uniform guidelines for providing paid time off to employees for absences related to the death of immediate family members and fellow employees or retirees of Harnett County. All full-time, active employees are eligible for benefits under this policy This leave will be available on a calendar year basis from January through December. This leave will not carry forward from year to year and therefore is not payable upon termination of employment if not used . An employee who wishes to take time off due to the death of an immediate family member should notify his or her supervisor as soon as possible prior to using bereavement leave. At the discretion of t he employee's supervisor or department head , verification for use of bereavement leave may be required. Paid bereavement leave will be granted according to the following schedule: • Employees may use a maximum of three consecutive workdays of bereavement leave per loss for the death of an immediate family member; which includes w ife , husband , mother, father , brother, sister , daughter, son , grandmother , grandfather, grandson, granddaughter, aunts and uncles . Also included are step-, half-, in-law, and loco parentis relationships. • Bereavement leave will be capped at six workdays per calendar year. Additionally, an employee may use any available leave for addition al time off as necessary, with their supervisor's approval. • Employees will be allowed up to four hours of bereavement leave to attend the funeral of a fellow regular employee or retiree of the County, provided such absence from duty will not interfere with normal operations of the department. Sec tion 7. Le ave Without Pay Use: Any full-time County employee may be granted leave without pay for up to one (1) year by the appropriate Supervisor, Department Head , or the Coun ty Manager through the use of the Leave Without Pay Form found in Appendix C of this Ordinance. Such leave may be used for reasons of prolonged personal illness, prolonged illness of an immediate family member, personal disability, after all other forms of accrued leave have been exhausted , educational needs, special work or ongoing classes that will benefit the County, or for other reasons deemed appropriate. Returning to Work: Any employee who is granted leave w ithout pay is obligated to return to duty within , or at the end of, the time determined appropriate by the granting Supervisor, Department Head , or County Manager, unless an extension has been requested and approved . Upon returning , the employee shall be entitled to return to 120219a HCBOC Page74 the same position he or she held at the time leave was granted or to one of like classification, sen iority and pay. Fai lure to Return to Work: Fai lure of an employee to report to work once their leave has expired shall be considered a resignation and the employee's position shall be filled following the selection processes in Article IV, Section 6. Retention and Continuation of Benefits: Any employee who takes leave without pay ceases to accrue any form of leave addressed in Article VI of this policy. :+Ae employ ee , howev er, may continu e to b e elig ible for b enefits unEl er the Co u nty 's group ins u rance pl ans, bu t such ben efi ts are subject to any regul atio n s aElo pteEl by the BOC , the FMLA, an El any reg u latio n s of th e respecti ve in surance ca rriers. However, an employee must work at least half of the employee's regular monthly schedule-tl=le meAtl=l-to accrue leave. For all non -FMLA leave without pay. employee h eal t h and dental insu rance benefits will be pa id by the C ount y whi le t he employee is on leave if t he employee works at least h alf of their regular monthly schedule . If an employee works less than h alf of thei r regular month ly sch edule. then th e employee sha ll b e responsi b le for t heir health a nd dental insuran ce premi ums. Regardless of the amount of time worked d uring the month. a n em pl o yee wi ll b e respo nsib le for all ot her policies and depend ent covera ge premiu ms w hile on leave without pay. Emp loyee responsible premi u ms will be ded u cted from the employee's pay or, if n o pay is re ceived. bi lled to the employee. If the employee is b ill ed, the employee shall b e responsi ble for paying thei r premi u ms by t h e due date on the invoice. Employees who do not pay th ei r prem iums by the due date shall have th eir cove rag e ca nceled . If hea l th and den tal coverage of the affected employee is canceled fo r no n-paymen t. coverage w ill be re instated upon return ing to work . Unpaid p remiums wi ll b e ded ucted , un less t he employee pays al l outs tanding premiums in f ull u pon return ing to work. If any po licies. ot her than the employee's health and dent al coverage. an d depen den t coverage are ca n celed for non-payment. t he employee will be elig ib le to re -enroll duri n g the next open enrollment period . Section 8. Sh ared Leave Po licy Purpose: The Harnett County Shared Leave Policy prov ides an opportunity for County employees to assist one another in times of need when an employee may have to be absent from work for a prolonged period of time resulting in loss of income due to a lack of accumulated leave. This policy, therefore, allows any full-time County employee to donate a specified number of hours from their accrued leave to help another employee who has e xhausted all forms of his or her acc umulated leave. Eligibility: Any f ull-time County employee is eligible to donate leav e , request donative leave, or recei ve donated leave . Any employee receiving leave, however, is required to apply and follow the procedures of the FMLA and must be unable to work due to an accident, chronic illness or major medical condition of themselves or that of an immediate family member. 120219a HCBOC Page75 Ineligibility: Part-time County employees are not eligible to donate leave, request donative leave, or receive donated leave . Also, any employee experiencing, undergoing, or receiving the following is in eligible to participate: A . Short term or sporadic conditions or illnesses B . Elective Surgery C. Normal Pregnan cy D. Worker's Compensation benefits The Application Pro cess : A. Any full-time employee who wishes to request leave through the Shared Leave Poli cy must submit an Application to Receive Shared Leave Form provided by the Human Resources Department at www.Harnett.org or found in Appendix C of this Ordinance. This form should be accompanied by, if not already filled out and submitted by the employee , a Comprehensive Information Release Form found in Appendix E of this Ordinance. B . These forms must be submitted to the appropriate Supervisor or Department Head who shall review the merits of the request and forward it to the Human Resources Department with a recommendation for approval or disapproval. C. The Human Resources Department will further review the request with an Employee Shared Leave Committee. The Committee and Human Resources Director will make a recommendation to the County Manager. D . The County Manager shall approve or deny all requests for receipt of shared leave and shall determine the length of the leave, not to exceed the employee 's or family member's period of treatment and recovery. E. Once approved, the Human Resources Department shall advise all county employees regarding the request for shared leave. F. Direct solicitation of employees for shared leave donations by the employee requesting shared leave is not permitted under any circumsta nces. clear and accurate record for financial and management audit purposes. Such a system should include the following: A. Maintaining a list of all donating employees and the hours donated by each B. Adequate and prompt notification of any donated leave, the amounts of that donated leave, and when le ave is granted to the recipient and the Finance Department C. Notification of actual leave deductions to the donating employees and the Finance Department. Section 9. Wo rkers' Co mpen sati on Leav e Note: The following section is covered by the North Carolina Workers Compensation Act ("NCWCA") found at NCGS §97. If any discrepancies between this section and the NCWCA shou ld surface , the NCWCA shall control. 120219a HCBOC Page76 Any full-time County employee absent from duty because of sickness or disability covered by the NCWCA may receive worker's compensation benefits and elect to use their accumulated leave as a supplemental payment for the difference between their regular salary and the payments received under the NCWCA. Employee Instructions: To ensure that a sick, injured , or disabled employee will receive all their available benefits, the following instructions should be followed . A . Emergency Situation: 1. If an injury occurs while on the job and said injury resu lt s in an emergency situation, 911 should be contacted for medical assistance and transport to the nearest medical facility. The employee. however, is still responsible for notifying the appropriate Supervisor or Department Head and completing a Workers' Compensation Leave Form & Employee Injury Report provided by the Human Resources Department at www.Harnett.org or found in Appendix C of this Ordinance. 2. If treatment is required at the emergency care provider. the injured employee should not provide his or her current County health insurance card. The employee instead should inform his or her caretakers that his or her injury should be filed to workers ' compensation . 3. If the injury occurs after normal County hours as explained above in Article V , Section 2, the employee's social security number will be used as a temporary claim number until Human Re sources can file a workers ' compensation claim and receive an appropriate claim number. B. Non-Emergency Situation: 1. If an injury occurs while on the job and said injury does not result in an emergency s ituation, but medical treatment is still requ ired , an employee should seek treatment from : Lillington Family Medical Center 7 East Duncan St. Lillington , NC 27546 (910)893-2641 2. If, for any reason other than a medical emergency, an employee is unable to receive treatment at the Lillington Family Medical Center, he or she should contact the Risk Management and Safety Coordinator. 3. Despite injury the employee is still responsible for notifying the appropriate Supervisor or Department Head and completing a Workers ' Compensation Leave Form & Employee Injury Report. C. Prescriptions: 1 . If, after treatment , release , and the completion of a Workers· Compensation Leave Form & Employee Injury Report, an employee needs a medical prescription filled , the employee may go to any major 120219a HCBOC Page77 pharmacy including, but not limited to , the following: CVS , Rite-Aid, Walgreens , Wal-Mart , Giant Eagle, Kroger , Meijer, Costco, and Target. 2. The employee should inform the pharmacy that he or she is covered through the NCWCA. The pharmacy should be able to electronically get approval for the prescription . 3. If the pharmacy is unable to fill the prescription or electronically get approval to fill the prescription, the employee should purchase the medicine with his or her own funds and then submit any receipts to the Risk Management and Safety Coordinator for processing and refund . D. Mileage: 1. If any injured employee travels more than twenty (20) miles on their personal vehicle to an authorized doctor's appointment following an injury filed as workers' compensation , he or she may submit mileage for reimbursement through the use of the appropriate travel form . E. Work Release Forms 1. Work release forms should be obtained by an injured employee at each doctor visit and given to the appropriate Department Head. 2. Such forms should be used by the Department Head to determine the amount, type, and frequency of work an employee may do. 3. If an employee is written out of work by a licensed physician or light duty is unavailable for the employee , he or she may be entitled to workers' compensation lost wage benefits. Such a situation is addressed below. F . Lost Wage Benefits 1. To be eligible for any lost wage benefits under the NCWCA an employee must: (1) be injured while in the service of their employer, (2) be written out of work by a licensed physician , and (3) be out of work for an initial seven (7) days. The day of injury is not included in the 7 days. 2 . Once the initial seven (7) day period has passed , an employee will be eligible for lost wage benefits as long as he or she has already completed the Workers' Compensation Leave Form & Employee Injury Report. 3. If an injured employee is eligible for lost wage benefits, that employee will begin receiving workers ' compensation checks to cover two-thirds (2/3) of his or her salary. 4. The remaining one-third (1/3) of an employee 's salary will be recouped by using the employee's accrued leave until all the employee 's leave is exhausted. This will result in an employee using one (1) entire day of leave fo r every three (3) days an employee remains on workers ' compensation . G . Other Information : 1. If an employee receives one day of lost wage benefits , that employee's retirement benefits will be inactive for the entirety of that month. 120219a HCBOC Page78 2. While on workers ' compensation leave an employee will continue to accrue all forms of leave as addressed in Article VI. Any leave accrued , therefore, will instantly be used and paid out to the employee if he or she has exhausted all accrued leave while on workers· compensation . FMLA leave will run concurrently with any employee's workers' compensation leave. 3. Employee hea lth and denta l insura n ce benefi ts will be paid by t h e County wh ile the employee is on workers · compe n sation leave. All ot her policies an d depend ent coverage premiums will be deducted out of th e employee's p ay or, if n o pay is received. b ill ed to the employee . If the employee is bi lled . the employee shall be res pon sible for paying th eif premiums by t he due date on th e invoice. Employees w ho do n ot pay theif prem iums by the du e date shall have their coverage canceled . If coverage is canceled for non-payment. th e employee will be eligi b le to re -enroll durin g th e next open enrollment period . Sectio n 10. Military Leave Note: The following section is covered the Uniformed Services Employment and Reemployment Rights Act ("USERRA") found at 38 United States Code Chapter 4301-4335 and 20 Code of Federal Regulations Part 1002. If any discrepancies between this section and the USERRA should surface, the USERRA shall control. Purpose : Harnett County, in accordance with federal law. seeks to ensure that County employees who serve or have served in the Armed Forces . Reserves, National Guard, or other uniformed services : (1) are not disadvantaged in their careers with the County because of their service. (2) are promptly reemployed in their County jobs upon their return from duty, and (3) are not discriminated against in employment based on past . present, or future military service. Harnett County, along with the federal government, wishes to encourage uniformed service so that the United States can enjoy the protection of those services. staffed by qualified people . while maintaining a balance with the needs of the County who also depends on these same individuals. With this mind the County puts into effect the following policy pertaining to military leave for all full-time County employees. Policy: A. Any full-time County employee who is a member of the Armed Forces , Reserves, National Guard, or other uniformed services will be allowed 96 hours annually (adjusted for employees having a work week with greater or fewer hours than a basic 40-hour workweek. refer to sick schedule) to be used for any military training that an employee may be mandated to undergo as part of their service. B. If compensation provided such an employee by the United States while on military leave is less than the normal salary such an employee would have earned working his or her typical work schedule, the employee shall receive partial compensation from the County equal to the difference in the two amounts. Every effort will be made by the County to maintain the employee's Formatted: Numbered + Level: 2 + Numbering Style: 1, 2, 3, ... + Start at: 1 + Alignment: Left + Aligned at 0.74" + Indent at 0 .99" 120219a HCBOC Page79 normal salary during such an employee 's period of military leave. Employee has the option to use leave without pay or accrued time. C. If a County employee's military duty is required beyond the allotted hours, the employee shall be allowed to recoup the loss wages through the use of his or her accumulated leave . If the employee , however, does not have any accumulated leave or his or her accumulated leave runs out, the employee shall be given leave without pay status as addressed in Article VI, Section 6. D . Regardless of other portions of this policy and the employee's pay status, while taking military leave an employee's leave credits and other benefits shall continue to accrue as normal. E. Any time spent in military leave will not run concurrently with FMLA leave. i. Any employee who wishes to utilize FMLA leave for a serious health condition or a military exigency must supply his or her Supervisor or Department Head with the appropriate certification form within 15 calendar days after he or she has submitted their completed FMLA Leave Request Form that may be found in Appendix C of this Ordinance. Medical certification forms should be updated by the employee every 30 days unless the form indicates that the minimum duration of the serious health condition is more than 30 days . If this is the case the form should be updated at the expiration of that minimum duration. ii. The employee is responsible for paying for the cost of the certification and for making sure the certification form is delivered to the Supervisor or Department Head . iii . If the certification form is incomplete or insufficient, the County will provide the employee with a written notice stating what information is needed to make the form complete and sufficient. iv. The employee must provide the necessary information to the County within seven (7) calendar days. v. If the employee does not provide the requested certification form within the time required or fails to provide a complete and sufficient form despite the opportunity to cure any deficiencies , the County shall deny the employee 's request for FMLA leave. '!L_lf the County has received a completed medical certification form . but has a reason to doubt the validity of such a certification , the County reserves the right to obtain a second certification from a licensed physician of the County 's choosing . The County will pay for such a recertification . (Section 13, FMLA) 120219a HCBOC Page80 E. Employee Protections Under the FMLA: 1. All County employees uti lizing FMLA leave are entitles to the continuation -of t he County's group hea lth insurance and any benefits therein on the sa me terms as if ho or she had cont inued to work . However, if the employee fai ls to return to work the County may recover any premiums paid . Al l Coun ty employees util izing FMLA leav e are entitled to the continuati on of the County 's group heal th and denta l insurance on t he same terms as if h e or sh e h ad con tinued wor k. All oth er policies and dependent coverage p rem iums will be deducted o ut of th e employee 's pay or, if no pay is rece ived, bill ed to the employee . If the employee is billed, the employee shall be responsible fo r paying their premiums by th e due date on the invoice . Emp loyees who do not pay thei r premiums by th e due date shall have their coverage ca nceled . If coverage is canceled for non-payment, the emp loyee will be eligible to re -enroll during the next open enrollment period . 2. All County employees utilizing FMLA leave are entitled to the continued accruement of any form of leave given to an employee by the County. 3. When any County employee utilizes FMLA leave and returns from that leave, he or she will be restored to the same job or equivalent job. An equivalent job is one that is virtually identical to the original job in terms of pay, benefits, and other employment terms and conditions. F. Protections for Individuals: The FMLA prohibits the following actions to be made by Harnett County: 1. Interfering with, restraining , or denying the exercise of, or the attempt to exercise any FMLA right. 2. Discriminating or retaliating against an employee or prospective employee for having exercised or attempted to exercise any FMLA right. 3. Discharging or in any other way discriminating against any person , whether or not an employee, for opposing or complaining about any unlawful practice under the FMLA. 4 . Discharging or in any other way discriminating against any person, whether or not an employee, because that person has: i. Filed any charge, has instituted, or caused to be instituted , any proceeding under or related to th e FMLA; ARTICLE VII. EMPLOY EE BENEFITS Section 1. Insurance Benefits Revised Insurance Benefits Policy: All full-time employees hired on or after July 1'1, 2015, or those employees who leave the employment of the County and return to work 120219a HCBOC Page81 on or after July 151 , 2015, shall be eligible for insurance benefits in accordance with the following policy. A. The County will provide indi vidua l hospitalization to all full-time employees. All full-time employees shall be enrolled in the program in accordance with the provisions of the County's insurance contracts on the first day of the month following a thirty (30) day waiting period. B . Any full-time County employee may so choose to have money deducted from his or her check to provide dental insurance for him or herself and to provide hospitalization and dental insurance for any dependents he or she may have in accordance with the provisions of the County's insurance contracts. C . Retirement health benefits are provided on a pro-rated basis for years of service as listed below. Employees who are not eligible for the benefits as outlined below will not be allowed to remain on the County's health insurance plan beyond any rights granted by the Consolidated Omnibus Budget Reconciliation Act (COBRA). D. Individuals must be County employees at the time of retirement to be eligible. lf an eli g ibl e e mployee decl ines ret irement health b enefits a t the ti me o f reti rement, t he e mployee w il l not be elig i b le for th e benefits a t a la ter date. E. Fo r employees reti ring on o r after December 16. 20 19, an elig ib le emp loyee must e lect or declin e the Medicare su ppleme nt at th e ti me of retirement to rece ive the supplement u pon tu rn ing 65 years of age. If an elig ible employee d eclines th e Med icare supplement, the employee will not be el ig ible for the supplement at a la te r date. F. The Medicare supplement will commence upon the em ployee's subm ittal of receipts for re imbursement for tha t fiscal year. The Cou nty w ill not re imburse the employee fo r rece i pts received for any prio r years th at the employee is e ligi b le fo r the supplement. Standard amount of supplement is to be determined by the BOC, which will be i ncluded i n th e annual budget o rd inance, &.,G . Retirement health b enefits prem ium payments are due by the fi rst day of the month that coverage is effective . The prem i um paymen t dea d line (hereinafter referred to as the "grace period") ends th irty (30) days after the d ue date . R etired employees who do not pay their premi ums in full or who d o not have sufficient funds i n t heir account for auth orized ban k drafts by the final d ay of t he g race peri od wi ll have th e ir coverage ca nceled . If the u npaid premium amount due is on ly for dependent coverage. then only the dep endent coverage will be canceled . However. if the unpaid premium amount due is for th e re ti red employee and dependent coverage. then the re tired employee a n d all dependents will have their coverage canceled . S uch retired employees a n d/or dependents who h ave th eir coverage canceled for non-paymen t can n ot be reinstated. However, if the premium payment is received after th e coverage has been ca n celed d u e to non- payment, but the postmark date is on o r before the last day of the grace period. then coverage w ill be re instated. Retirement Health Benefits Em lo ees less than 65 not Medicare eli ible Minimum Years of Consecutive Harnett Percentage of Cost Paid by County Until Count Service for Eli ibilit A e 65 or Medicare Eli ible 120219a HCBOC Page82 20 Years 50% 25 Years 75% 30 Years 100% Retirement Health Benefits (Employees older than 65 and/or Medicare eligible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County After County Service for Eligibility Age 65 or Medicare Eligible 20 Years 50% 25 Years 75% 30 Years 100% Grandfathered Insurance Benefits Policy: Full-time employees as of June 30th , 2015 shall continue to be eligible to receive insurance benefits as defined below. A. The County will provide hospitalization to all full-time employees. All full-time employees shall be enrolled in the program on the first day of the month following a thirty (30) day waiting period . B. Any full-time County employee may so choose to have money deducted from his or her check to provide dental insurance for him or herself and to provide hospitalization and dental insurance for any dependents he or she may have in accordance with the provisions of the County's insurance contracts. C. Retirement health benefits are provided on a pro-rated basis for years of service as listed below. Employees who are not eligible for the benefits as outlined below will not be allowed to remain on the County's health insurance plan beyond any rights g ranted by the Consolidated Omnibus Budget Reconciliation Act (COBRA). D . Individuals must be County employees at the time of retirement to be eligible. E. Fo r employees reti rin g on or after Dec ember 16, 20 19, an elig ib le employee must elect o r decline th e Medicare su pple ment at the time of reti rement to receive th e sup plem ent u pon t urn ing 65 yea rs of age . If an elig ib le em ployee decl in es th e Medicare sup p lement, the employee wi ll n ot be eligib le for t he sup pl ement at a later date . F . Th e Medicare supplement wi ll comme nce up on th e employee 's su bmittal of re ceip ts fo r reimb ursement fo r th at fiscal year . The County will not rei mburse the employee for recei pts received for any p ri or years that t he e mpl oyee is el igible for t he su ppl ement. For al l reti red employees cu rrently receivi n g th e Medi care su p plement. the employee must sub mit all pr ior fi sca l yea r rece ipts no later tha n June 30 , 2020 to receive re imbursement. Af ter June 30, 2020 , ret ired employees cur rently receivin g the Medicare s u pple ment wi ll n ot receive reimb ursem ent for receipts sub mitted to t he Cou nty for an y p rior fi scal yea rs. Standard amount of supplement is to be determined by the BOC, wh ich wi ll be inc luded in th e annual budget ordi na nce . e-oG . Reti re ment hea lth benefits p remium p ay ments are du e b y t he first day of the mo nth th at coverage is effective. T he prem ium p ayment dead li ne (hereinafter 120219a HCBOC Page83 referred to as the "grace peri od") ends t h irty (30) days after th e due date. Ret ired employees who do not pay thei r premiu ms in full or wh o do not h ave sufficient f unds in t heir account for authorized b ank drafts by th e f inal day of the g race p eriod will have their coverage canceled. If t he u npa id premiu m amount du e is only for dependent coverage. then only th e dependent coverage w ill be canceled. However. if the un paid prem ium amou nt due is fo r the retired empl oyee and dependent coverage. then the reti red employee and all dependents wi ll have th eir cove rage cance led . Suc h retired employees and/or depen dents who have their coverage ca nceled for non-payment ca n not be rei nstated . However. if th e p rem iu m payme nt is received af ter th e coverage has been cance led due to non- payment, b ut the postmark date is on or before the last da y of th e grace period. then coverage w ill be rein sta ted. Retirement Health Benefits (Emolovees less than 65 not Medicare eliqible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County County Service for Eliaibilitv Until Aae 65 or Medicare Elioible 10 Years of Harnett County Service Plus an additional 20 Years of Local 50% Government Service 15 Years 50% 16 Years 55% 17 Years 60% 18 Years 65% 19 Years 70% 20 vears 75% 21 Years 77% 22 Years 79% 23 Years 81% 24 Years 83% 25 Years 85% 26 Years 88% 27 Years 91% 28 Years 94% 29 vears 96% 30 Years 100% Retirement Health Benefits (Emolovees older than 65 and/or Medicare elioiblel Minimum Years of Consecutive Harnett Percentage of Cost Paid by County County Service for Eliaibilitv After Aqe 65 or Medicare Elioible 15 Years 50% 16 Years 55% 17 Years 60% 18 Years 65% 120219a HCBOC Page84 19 Years 70% 20 vears 75% 21 Years 77% 22 Years 79% 23 Years 81% 24 Years 83% 25 Years 85% 26 Years 88% 27 Years 91% 28 Years 94% 29 vears 96% 30 Years 100% 120219a HCBOC Page85 Section 6. Bereaveme nt Leave The Bereavement Leave Policy, effective 7/1 /19 , establishes uniform guidelines for providing paid time off to employees for absences related to the death of immediate family members and fellow employees or retirees of Harnett County. All full -time, active employees are eligible for benefits under this policy This leave will be available on a calendar year basis from January through December. This leave will not carry forward from year to year and therefore is not payable upon termination of employment if not used . An employee who wishes to take time off due to the death of an immediate family member should notify his or her supervisor as soon as possible prior to using bereavement leave. At the discretion of the employee 's supervisor or department head , verification for use of bereavement leave may be required . Paid bereavement leave will be granted according to the following schedule : • Employees may use a maximum of three consecutive workdays of bereavement leave per loss for the death of an immediate family member; which includes wife , husband , mother, father, brother, sister, daughter, son , grandmother, grandfather, grandson, granddaughter, aunts and uncles . Also included are step-, half-, in-law, and loco parentis relationships . • Bereavement leave will be capped at six workdays per calendar year. Additionally, an employee may use any available leave for additional time off as necessary , with their supervisor's approval. • Employees will be allowed up to four hours of bereavement leave to attend the funeral of a fellow regular employee or retiree of the County, provided such absence from duty will not interfere with normal operations of the department. Section 7. Leave Without Pay Use : Any full-time County employee may be granted leave without pay for up to one (1) year by the appropriate Supervisor, Department Head , or the County Manager through the use of the Leave Without Pay Form found in Appendix C of this Ordinance. Such leave may be used for reasons of prolonged personal illness, prolonged illness of an immediate family member, personal disability, after all other forms of accrued leave have been exhausted, educational needs, special work or ongoing classes that w ill benefit the County, or for other reasons deemed appropriate. Returning to Work: Any employee who is granted leave without pay is obligated to return to duty within , or at the end of, the time determined appropriate by the granting Supervisor, Department Head , or County Manager, unless an extension has been requested and approved. Upon returning, the employee shall be entitled to return to 120219a HCBOC Page86 the same position he or she held at the time leave was granted or to one of like class ification, seniority and pay. Failure to Return to Work: Failure of an employee to report to work once their leave has expired shall be considered a resignation and the employee 's position shall be filled following the selection processes in Article IV, Section 6 . Retention and Continuation of Benefits : Any employee who takes leave without pay ceases to accrue any form of leave addressed in Article VI of this policy. However, an employee must work at least half of the employee's regular monthly scheduleto accrue leave. For all non-FMLA leave without pay, employee health and dental insurance benefits will be paid by the County while the employee is on leave if the employee works at least half of their regular monthly schedule. If an employee works less than half of their regular monthly schedule , then the employee shall be responsible for their health and dental insurance premiums. Regardless of the amount of time worked during the month, an employee will be responsible for all other policies and dependent coverage premiums while on leave without pay. Employee responsible prem iums will be deducted from the employee's pay or, if no pay is received , billed to the employee . If the emp loyee is billed, the employee shall be responsible for paying their premiums by the due date on the invoice . Employees who do not pay their premiums by the due date shall have their coverage canceled . If health and dental coverage of the affected employee is canceled for non-payment, coverage w ill be reinstated upon returning to work. Unpaid premiums will be deducted , unless the employee pays all outstanding premiums in full upon returning to work. If any pol icies , other than the employee's health and dental coverage , and dependent coverage are canceled for non-payment, the employee will be eligible to re-enroll during the next open enrollment period . Sec t ion 8. Sha r e d Lea ve Po li cy Purpose : The Harnett County Shared Leave Policy provides an opportunity for County employees to assist one another in times of need when an employee may have to be absent from work for a prolonged period of time resulting in loss of income due to a lack of accumulated leave. This policy, therefore, allows any full-time County employee to donate a specified number of hours from their accrued leave to help another employee who has exhausted all forms of his or her accumulated leave. Eligibility: Any full-time County employee is eligible to donate leave, request donative leave , or receive donated leave . Any employee receiving leave , however, is required to apply and follow the procedures of the FMLA and must be unable to work d~e to an accident, chronic illness or major medical condition of themselves or that of an immediate family member. Ineligibility: Part-time County employees are not eligible to donate leave, request donative leave, or receive donated leave. Also , any employee experiencing , undergoing, or receiving the following is ineligible to participate : 120219a HCBOC Page87 A. Short term or sporadic conditions o r illnesses B. Elective Surgery C . Normal Pregnancy D. Worker's Compensation benefits The Application Process: A. Any full-time employee who wishes to request leave through the Shared Leave Policy must submit an Application to Receive Sha red Leave Form provided by the Human Resources Department at www.Harnett.org or found in Appendix C of this Ordinance. This form should be accompanied by, if not already filled out and submitted by the employee , a Comprehensive Information Re lease Form found in Appendix E of this Ordinance . B. These forms must be submitted to the appropriate Supervisor or Department Head who shall review the merits of the request and forward it to the Human Resources Department with a recommendation for approval or disapproval. C. The Human Resources Department will further review the request with an Employee Shared Leave Committee. The Committee and Human Resources Director will make a recommendation to the County Manager. D. The County Manager shall approve or deny all requests for receipt of shared leave and shall determine the length of the leave, not to exceed the employee's or family member's period of treatment and recovery . E. Once approved , the Human Resources Department shall advise all county employees regarding the request for shared leave. F . Direct solicitation of employees for shared leave donations by the employee requesting shared leave is not permitted under any circumstances . clear and accurate re cord for financial and management audit purposes. Such a system should include the following : A. Maintaining a list of all donating employees and the hours donated by each B . Adequate and prompt notification of any donated leave , the amounts of that donated leave , and when leave is granted to the recipient and the Finance Department C. Notification of actual leave deductions to the donating employees and the Finance Department. Sect io n 9. Wo r ke rs' Com pe nsati on Leave Note: The following section is covered by the North Carolina Workers Compensation Act ("NCWCA") found at NCGS §97 . If any d iscrepancies between this section and the NCWCA should surface, the NCWCA shall control. Any full-time County employee absent from duty because of sickness or disability covered by the NCWCA may receive worker's compensation benefits and elect to 120219a HCBOC Page88 use their accumulated leave as a supplemental payment for the difference between the ir regular salary and the payments received under the NCWCA. Employee Instructions: To ensure that a sick, injured, or disabled employee will receive all their available benefits, the following instructions should be followed. A. Emergency Situation : 1 . If an injury occurs while on the job and said injury results in an emergency situation , 911 should be contacted for medical assistance and transport to the nearest medical facility. The employee, however, is still responsible for notifying the appropriate Supervisor or Department Head and completing a Workers' Compensation Leave Form & Employee Injury Report provided by the Human Resources Department at www.Harnett.org or found in Appendix C of this Ordinance. 2 . If treatment is required at the emergency care provider, the injured employee should not provide his or her current County health insurance card . The employee instead shou ld inform his or her caretakers that his or her injury should be filed to workers ' compensation. 3 . If the injury occurs after normal County hours as explained above in Article V , Section 2 , the employee's social security number will be used as a temporary claim number until Human Resources can file a workers' compensation claim and receive an appropriate claim number. 8. Non-Emergency Situation: 1. If an injury occurs while on the job and said injury does not result in an emergency situation, but medical treatment is still required , an employee should seek treatment from : Lillington Family Medical Center 7 East Duncan St. Lillington , NC 27546 (910)893-2641 2 . If, for any reason other than a medical emergency, an employee is unable to receive treatment at the Lillington Family Medical Center, he or she should contact the Risk Management and Safety Coordinator. 3 . Despite injury the employee is still responsible for notifying the appropriate Supervisor or Department Head and completing a Workers' Compensation Leave Form & Employee Injury Report. C . Prescriptions: 1 . If, after treatment, release , and the completion of a Workers' Compensation Leave Form & Employee Injury Report, an employee needs a medical prescription filled, the employee may go to any major pharmacy including, but not limited to , the following : CVS , Rite-Aid , Walgreens, Wal-Mart, Giant Eagle, Kroger, Meijer, Costc o, and Target. 120219a HCBOC Page89 2 . The employee should inform the pharmacy that he or she is cove red through the NCWCA. The pharmacy should be able to electronically get approval for the prescription. 3 . If the pharmacy is unable to fill the prescription or electronically get approval to fill the prescription , the employee should purchase the medicine with his or her own funds and then submit any receipts to the Risk Management and Safety Coordinator for processing and refund. D. Mileage: 1 . If any injured employee travels more than twenty (20) miles on their personal vehicle to an authorized doctor's appointment following an injury filed as workers' compensation , he or she may submit mileage for reimbursement through the use of the appropriate travel form . E. Work Release Forms 1. Work release forms should be obtained by an injured employee at each doctor visit and given to the appropriate Department Head . 2 . Such forms should be used by the Department Head to determine the amount, type, and frequency of work an employee may do. 3. If an employee is written out of work by a licensed physician or light duty is unavailable for the employee , he or she may be entitled to workers' compensation lost wage benefits. Such a situation is addressed below. F. Lost Wage Benefits 1. To be eligible for any lost wage benefits under the NCWCA an employee must: (1) be injured while in the service of their employer, (2) be written out of work by a licensed physician, and (3 ) be out of work for an initial seven (7) days. The day of injury is not included in the 7 days . 2 . Once the initial seven (7) day period has passed, an employee will be eligible for lost wage benefits as long as he or she has already completed the Workers' Compensation Leave Form & Employee Injury Report. 3 . If an injured employee is eligible for lost wage benefits, that employee will beg in receiving workers' compensation checks to cover two-thirds (2/3) of his or her salary. 4 . The remaining one-third (1/3) of an employee's salary will be recouped by using the employee's accrued leave until all the employee's leave is exhausted . This will result in an employee using one (1) entire day of leave for every three (3) days an employee remains on workers ' compensation. G. Other Information: 1. If an employee receives one day of lost wage benefits, that employee 's retirement benefits will be inactive for the entirety of that month . 2. While on workers' compensation leave an employee will continue to accrue all forms of leave as addressed in Article VI. Any leave accrued , 120219a HCBOC Page90 therefore , will instantly be used and paid out to the employee if he or she has exhausted all accrued leave while on workers ' compensation . FMLA leave will run concurrently with any employee 's workers' compensation leave. 3. Employee health and dental insurance benefits will be paid by the County while the employee is on workers' compensation leave . All other policies and dependent coverage premiums will be deducted out of the employee's pay or, if no pay is received , billed to the employee. If the employee is billed , the employee shall be responsible for paying the premiums by the due date on the invoice. Employees who do not pay the premiums by the due date shall have their coverage canceled. If coverage is canceled for non-payment, the employee will be eligible to re-enroll during the next open enrollment period. Sec tion 10. Milita ry Le ave Note: The following section is covered the Uniformed Services Employment and Reemployment Rights Act ("USERRA") found at 38 United States Code Chapter 4301-4335 and 20 Code of Federal Regulations Part 1002. If any discrepancies between this section and the USERRA should surface, the USERRA shall control. Purpose : Harnett County, in accordance with federal law, seeks to ensure that County employees who serve or have served in the Armed Forces , Reserves , National Guard , or other uniformed services : (1) are not disadvantaged in their careers with the County because of their service , (2) are promptly reemployed in their County jobs upon their return from duty, and (3) are not discriminated against in employment based on past, present, or future military service . Harnett County, along with the federal government, wishes to encourage uniformed servi ce so that the Un ited States can enjoy the protection of those services, staffed by qualified people, while maintaining a balance with the needs of the County who also depends on these same individuals. With this mind the County puts into effect the following policy pertaining to military leave for all full-time County employees. Policy: A. Any full-time County employee who is a member of the Armed Forces , Reserves , National Guard , or other uniformed services will be allowed 96 hours annually (adjusted for employees having a work week with greater or fewer hours than a basic 40-hour workweek, refer to sick schedule) to be used for any military training that an employee may be mandated to undergo as part of their service . B. If compensation provided such an employee by the United States while on military leave is less than the normal salary such an employee would have earned working his or her typical work schedule, the employee shall receive partial compensation from the County equal to the difference in the two amounts. Every effort will be made by the County to maintain the employee's normal salary during such an employee's period of military leave . Employee has the option to use leave without pay or accrued time . 120219a HCBOC Page91 C. If a County employee's military duty is required beyond the allotted hours, the employee shall be allowed to recoup the loss wages through the use of his or her accumulated leave. If the employee , however, does not have any accumulated leave or his or her accumulated leave runs out, the employee shall be given leave without pay status as addressed in Article VI, Section 6. D. Regardless of other portions of this policy and the employee 's pay status , while taking military leave an employee 's leave credits and other benefits shall continue to accrue as normal. E. Any time spent in military leave will not run concurrently with FMLA leave. i. Any employee who wishes to utilize FMLA leave for a serious health condition or a military exigency must supply his or her Supervisor or Department Head with the appropriate certification form within 15 calendar days after he or she has submitted their completed FMLA Leave Request Form that may be found in Appendix C of this Ordinance. Medical certification forms should be updated by the employee every 30 days unless the form indicates that the minimum duration of the serious health condition is more than 30 days. If this is the case the form should be updated at the expiration of that minimum duration. ii. The employee is responsible for paying for the cost of the certification and for making sure the certification form is delivered to the Supervisor or Department Head. iii. If the certification form is incomplete or insufficient , the County will provide the employee with a written notice stating what information is needed to make the form complete and sufficient. iv. The employee must provide the necessary information to the County within seven (7) calendar days. v. If the employee does not provide the requested certification form within the time required or fails to provide a complete and sufficient form despite the opportunity to cure any deficiencies, the County shall deny the employee's request for FMLA leave. vi. If the County has received a completed medical certification form, but has a reason to doubt the validity of such a certification, the County reserves the right to obtain a second certification from a licensed physician of the County's choosing. The County will pay for such a recertification . (Section 13, FMLA) E. Employee Protections Under the FMLA: 120219a HCBOC Page92 1 . . All County employees utilizing FMLA leave are entitled to the continuation of the County's group health and dental insurance on the same terms as if he or she had continued work. All other policies and dependent coverage premiums will be deducted out of the employee's pay or, if no pay is received , billed to the employee. If the employee is billed , the employee shall be responsible for paying thei premiums by the due date on the invoice . Employees who do not pay thei premiums by the due date shall have their cove rage canceled. If coverage is canceled for non-payment, the employee will be eligible to re-enroll during the next open enrollment period . 2. All County employees util izing FMLA leave are entitled to the continued accruement of any form of leave given to an employee by the County. 3. When any County employee utilizes FMLA leave and returns from that leave , he or she will be restored to the same job or equivalent j ob. An equivalent job is one that is virtually identical to the original job in terms of pay, benefits , and other employment terms and cond itions . F. Protections for Individuals: The FMLA prohibits the following actions to be made by Harnett County: 1. Interfering with , restraining, or denying the exercise of, or the attempt to exercise any FMLA right. 2 . Discriminating or retal iating against an employee or prospective employee for having exercised or attempted to exercise any FMLA right. 3. Discharging or in any other way discriminating against any person, whether or not an employee, for opposing or complaining about any unlawful practice under the FMLA. 4 . Discharg ing or in any other way discriminating against any person, whether or not an employee , because that person has: i. Filed any charge , has instituted, or caused to be instituted , any proceeding under or related to the FMLA; ARTICLE VII. EMPLO YEE BENEFITS Secti on 1. Insu r ance Be ne fits Revised Insurance Benefits Policy: All full-time employees hired on or after July 1st, 2015, or those employees who leave the employment of the County and return to work on or after July 1st, 2015 , shall be eligible for insurance benefits in accordance with the following policy. A. The County will provide individual hospitalization to all full -time employees . All full -time employees shall be enrolled in the program in accordance with the provisions of the County 's insurance contracts on the first day of the month following a thirty (30) day waiting perio d . 120219a HCBOC Page93 B . Any full-time County employee may so choose to have money deducted from his or her check to provide dental insurance for him or herself and to provide hospitalization and dental insurance for any dependents he or she may have in accordance with the provisions of the County's insurance contracts. C . Retirement health benefits are provided on a pro-rated basis for years of service as listed below. Employees who are not el igible for the benefits as outlined below will not be allowed to remain on the County's health insurance plan beyond any rights granted by the Consolidated Omnibus Budget Reconciliation Act (COBRA). D. Individuals must be County employees at the time of retirement to be eligible . If an eligible employee declines retirement health benefits at the time of retirement, the emp loyee will not be eligible for the benefits at a later date. E. For employees retiring on or after December 16 , 2019, an eligible employee must elect or decline the Medicare supplement at the time of retirement to receive the supplement upon turning 65 years of age . If an eligible emp loyee declines the Medicare supplement, the employee will not be eligible for the supplement at a later date. F. The Medicare supplement will commence upon the employee's submittal of receipts for reimbursement for that fiscal year. The County will not reimburse the employee for receipts received for any prior years that the employee is eligible for the supplement. Standard amount of supplement is to be determined by the BOC, which will be included in the annual budget ordinance G. Retirement health benefits premium payments are due by the first day of the month that coverage is effective . The premium payment deadline (hereinafter referred to as the "grace period") ends thirty (30) days after the due date. Retired employees who do not pay their premiums in full or who do not have sufficient funds in their account for authorized bank drafts by the final day of the grace period will have their coverage canceled. If the unpaid premium amount due is only for dependent coverage , then only the dependent coverage will be canceled. However, if the unpaid premium amount due is for the retired employee and dependent coverage , then the retired employee and all dependents will have their coverage canceled . Such retired employees and/or dependents who have their coverage canceled for non-payment cannot be reinstated . However, if the premium payment is received after th e coverage has been canceled due to non- payment, but the postmark date is on or before the last day of the grace period, then coverage will be reinstated. Retirement Health Benefits (Employees less than 65 not Medicare elig ible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County Until County Service for Eligibility Age 65 or Medicare Eligible 20 Years 50% 25 Years 75% 30 Years 100% 120219a HCBOC Page94 Retirement Health Benefits (Employees older than 65 and/or Medicare eligible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County After County Service for Eligibility Age 65 or Medicare Eligible 20 Years 50% 25 Years 75% 30 Years 100% Grandfathered Insurance Benefits Policy: Full-time employees as of June 30th, 2015 shall continue to be eligible to receive insurance benefits as defined below. A. The County will provide hospitalization to all full -time employees. All full-time employees shall be enrolled in the program on the first day of the month following a thirty (30) day waiting period . B. Any full-time County employee may so choose to have money deducted from his or her check to provide dental insurance for him or herself and to provide hospitalization and dental insurance for any dependents he or she may have in accordance with the provisions of the County's insurance contracts . C . Retirement health benefits are provided on a pro-rated basis for years of service as listed below. Employees who are not eligible for the benefits as o utlined below will not be allowed to remain on the County's health insurance plan beyond any rights granted by the Consolidated Omnibus Budget Reconciliation Act (COBRA). D . Individuals must be County employees at the time of retirement to be eligible . E. For employees retiring on o r after December 16 , 2019 , an eligible employee must elect or decline the Medicare supplement at the time of retirement to receive the supplement upon turning 65 years of age. If an eligible employee declines the Medicare supplement, the employee w ill not be eligible for the supplement at a later date. F. The Medic are supplement will commence upon the employee's submittal of receipts for re imbursement for that fiscal year. The County will not reimburse the employee for receipts received for any prior years that the employee is eligible for the supplement. For all retired employees currently receiving the Medicare supplement, the employee must submit all prior fiscal year receipts no later than June 30 , 2020 to receive reimbursement. After June 30 , 2020 , retired employee s currently receiving the Medicare supplement will not rec eive reimbursement for receipts submitted to the County for any prior fiscal years. Standard amount of supplement is to be determined by the BOC, which will be included in the annual budget ordinance . G . Retirement health benefits premium payments are due by the first day of the month that coverage is effective. The premium payment deadline (hereinafter referred to as the "grace period ") ends thirty (30) days after the due date. Retired employees who do not pay their premiums in full or who do not have sufficient funds in their account for authorized bank drafts by the final day of the grace period will have their coverage canceled . If the unpaid premium amount due is 120219a HCBOC Page95 only for dependent coverage , then only the dependent coverage will be canceled. However, if the unpaid premium amount due is for the retired employee and dependent coverage, then the retired employee and all dependents will have their coverage canceled. Such retired employees and/or dependents who have their coverage canceled for non-payment cannot be reinstated. However, if the premium payment is received after the coverage has been canceled due to non- payment, but the postmark date is on or before the last day of the grace period , then coverage will be reinstated. Retirement Health Benefits (Employees less than 65 not Medicare eligible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County County Service for Eligibility Until Age 65 or Medicare Eligible 10 Years of Harnett County Service Plus an additional 20 Years of Local 50% Government Service 15 Years 50% 16 Years 55% 17 Years 60% 18 Years 65% 19 Years 70% 20 years 75% 21 Years 77% 22 Years 79% 23 Years 81% 24 Years 83% 25 Years 85% 26 Years 88% 27 Years 91% 28 Years 94% 29 years 96% 30 Years 100% Retirement Health Benefits (Employees older than 65 and/or Medicare eligible) Minimum Years of Consecutive Harnett Percentage of Cost Paid by County County Service for Eligibility After Age 65 or Medicare Eligible 15 Years 50% 16 Years 55% 17 Years 60% 18 Years 65% 19 Years 70% 20 years 75% 21 Years 77% 22 Years 79% 120219a HCBOC Page96 23 Years 81% 24 Years 83% 25 Years 85% 26 Years 88% 27 Years 91% 28 Years 94% 29 vears 96% 30 Years 100% 120219a HCBOC Page97 120219a HCBOC Page98 OVERVIEW • Review legal framework for CIP • Review of CIP Process for FY 2021-2027 • Proposed CIP Process Going Forward • Criteria for Ranking Projects • Funding Strategy • Reader's Guide • Action Summary • Projects • Next Steps Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page99 LEGAL FRAMEWORK OF CAPITAL BUDGETING "4.)y lun • Not legally required • If done, statutes charge County Manager with preparation • Governing board must: • Adopt project ordinances, if used • Establish capital reserve funds, if used • A CIP plan is not a budget and does not authorize spending Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page100 120219a HCBOC Page101 IF NOT LEGALLY REQUIRED. WHY DO IT? • Gets everything listed in one place • Helps link to jurisdiction goals & long-range plans • Helps prioritize important projects • Helps see cumulative impacts of debt and other resource needs Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page102 IF NOT LEGALLY REQUIRED. WHY DO IT? • Helps see finance issues as a whole (can we afford this in light of other commitments, what can we fund and when?) • Helps see timing issues (what makes sense to do first, second, etc.?) • Offers time to consider many options for how best to develop facilities (much overlap) • Reveals relationships between capital projects that may be overlooked otherwise • Ready for "opportunities" -grants, partnerships, collaborations ,n future Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page103 REVIEW PROCESS • Included General and Solid Waste Fund County Departments (no schools, CCCC, or Harnett Regional Water) • CIP projects include all components of capital $100,000 and greater-increased from $20,000 threshold • Process moved from spring to fall • Departments received training and detailed instructions on how to complete forms . • Departments provided: • Thorough written justification of the project • An explanation of how the project met the scoring criteria • A reliable cost estimate • A project budget with requested funding in today's dollars • Estimates of impact on operating budget Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page104 REVIEW PROCESS • Projects are based on today's dollars and inflated uniformly: • Non-construction: 3% • Construction: 10% for two years; 5% subsequent years • Projects vetted by internal pre-concept team • Projects were scored by management team, prioritized and determined to be recommended or future • A funding source was identified for recommended projects • The goal is to fund projects up front • Unsure of whether this goal can be met until operating budget developed • Comfortable that FY 2021 projects can be funded • Future projects included those where: • No funding source was available • The scope needed greater definition • The cost estimate needed refinement Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page105 FUTURE PROCESS • Phase in and include all partners in the process: • Schools and CCCC • Harnett Regional Water • Financial models for fleet leasing program, Solid Waste, and parks development • Focus on project management-tracking of key activities for greater accountability Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page106 120219a HCBOC Page107 FUNDING STRATEGY • Maximize grants and other (non-tax) funding sources • DOT for airport projects • PARTF for park projects • 911 funds for CAD/dispatch software replacement • Reserve debt capacity for essential projects; where possible, use retiring debt to fund new projects • Estimate operating costs to develop an overall financial model Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page108 FUNDING STRATEGY • Attempt to pre-fund pay-go projects (as operating budget allows) • Example: $2,579,194 for VI PER radio replacement (Year 5) • Fund $515,839/year, beginning in FY 2021 • Continue appropriations to special revenue funds for Parks, Sheriff, and Fleet Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page109 FUNDING SUMMARY (p.5) Funding Sources The table below shows a summary of the funding sources ror GIP projects by year. The major revenue sources are installment and other debt, capital reserves, and grants. Current Pnorto Year: Year1: Year 2: Year 3: Year4: Yew 5: Year 6: Year 7: FY 2020 FY2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Tolals 911 Fund 0 222.674 0 0 0 0 0 0 0 222.674 Article •• capital Reserve 0 220,917 342.377 0 0 0 0 0 0 583.294 Asset Forfeiture Funds 0 139,632 0 0 0 0 0 0 0 139.632 Ba,d Premium 0 3.847.498 0 0 0 0 0 0 0 3,847.498 Capital ResOMOS 0 368,084 551,302 870.077 583.704 135.717 2.983,685 5«,648 0 5.837.217 General ObCigation Bond Proceeds 0 604.508 0 499.375 0 0 0 0 0 1.103.883 Gran1s. Gifts. Etc. 0 2.515,501 3.249.532 0 0 0 0 0 0 5,785.033 Installment De~ 0 12,615.101 8,529.899 0 0 0 0 0 0 21,145.000 Plfks C.pital Reserve 84,501 609,750 52.749 0 0 0 0 0 0 747.000 Sheriff's C11Plt1I Reservo 0 58.557 130.612 296,971 0 0 0 0 0 486.140 Sdld Waste Fund Balance 0 204.262 0 0 0 0 0 0 0 204.262 Sdld Waste Operating Budget 0 195.738 0 0 0 0 0 0 0 195.738 Transfer from General Fund 3.736.986 1.935,023 1,640.000 1.640.000 950.000 950.000 750.000 900.000 900.000 13.402.009 Transfer from the Radio Sys1em MPER) C.phl 43.992 1,149,914 0 0 0 0 166,689 0 0 1.360,595 OOltyFI.Wld 0 0 0 0 0 0 123,983 0 0 123.983 Tolal 3.865.479 24.687,159 14.496.471 3.106.423 1.533.704 1.085.717 4.024.357 1.444.648 900.000 55.143.958 Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page110 OPERATING IMPACTS (p.6) Operating Budget Effects The table below shows the combined effect on the operating budget of the recommended projects for the next seven years. Operating effects include debt service. increased operating costs, decreased operating costs. additional revenues, and appropriation of revenue necessary to fund the project. Current Prior to Year. Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: FY2020 FY2020 FY2021 FY 2022 FY2023 FY 2024 FY 2025 FY2026 FY2027 911 lnaeased Operating Cos1s 0 o 0 8,399 8,650 8,910 9,1n 9,453 9,738 Total 911 0 o 0 8,399 8,650 8,910 9,177 9,453 9,738 ~ Oob1Sorvlco 0 457,021 2,000,950 1,958,550 1,918,150 1,868,450 1,815,450 1,762,450 1,709,450 Decreased Costs 0 o -259,077 -186,189 -186,189 -186,189 -152,260 -124,240 -124,240 Ina-eased Operating Costs 0 33,700 470,070 587,641 615,026 732,976 703,925 744,001 735,995 Increased Revenue 0 -425 -3,850 -3,850 -3,850 -3,850 -3,850 -3,850 -3,850 Transfer from General Fund 837,500 1,454,532 3,191,634 2,496,761 1,304,583 1,221,441 987,511 540,775 450,000 Total General 837,500 1,944,828 5,399,727 4,852,913 3.645,720 3,632,828 s.sso.ne 2,919,138 2,767,355 Solid waste Decreased Costs o o -18,000 -18,000 o o 0 o o Solid Waste Fund Balance 0 204,262 0 0 0 0 0 0 0 Solid Waste Operating Budget 0 195,738 0 o 0 0 o o 0 Total Solid Waste 0 400,000 -18,000 -18,000 0 0 0 o 0 Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page111 READERS GUIDE (p.1) Readers Guide Project Budget: The budget for the project as approved by project ordinance or as approved In the FY 2020-2026 CIP. Project Element: Expense Funding Source: Revenue Operating Effect: Impact on Operating Budget. Project Status Government Complex Park Development (Current and Future Phases) ~·--~ -= ~ Project Totals: Deve!op Pha,e 1 of lhe Ga.emmenl Ccmplox Pe1k. localed at 35il Ak'orander Drive, l.Jf•ngion. Amenities under coo,truchon inclJde momt.lbuse foel:ls, two tesebal\looftball fields, 1.15 miles of waking trllis. amoe,lo,yak water acceo,. river obse<vat,ondeci<, and pan< infiasu..:tu!e. Develop Phase 2 a, funding allows Fuhm! amerit•es inc.\Jde • pfayi;1ound. splash pad, a~d1lional ttott,. • picnic sheller and addrucnal perk1"1) -c ...... Project Budget Prior to YHr. Yw,rt: 'f'Hr2: VNrS: vu,,: Year$: V-.ar•: VNtT: f'n>jee! Bvdg .. FY 2020 FY:l020 FY 2021 FY 2022 FY 2023 FY 202• FY2020 FY 2020 FY 2071 Total$ "OJect lltmtnf CoiM"U':liofl M!.iU • 600.000 o:rcr 0 0 0 0 0 • &0.747 cciw....,."' U..7il 0 0 !.3,7SS 0 0 • 0 0 • 63.7il O.tirpn, E/9Mer,ng I. Ca,1hdoft .Id ~112.SOO M.,01 , .... , .... 0 0 0 0 • ' 102500 TIICa !"rotfd rttll"lffll ...... .... ,, ,,o.ooo \0,,,489 0 0 • • 0 • ... ... fundn9 loi.wu ~~.G;lh.e.c 400.000 • W.150 ~2,750 • • • • • • ... ... p ...... c.p1.1,t-400.000 M.,01 2"2.1'0 ~2.14t 0 • • 0 0 0 ...... Tot,1~$ou,w ... 000 ... ""1 i:10,000 10S,,t99 0 • 0 0 0 0 ...... Oparat1111 !'fhlct truffl.a Oo«ll'.n~ Cool.ti 0 • ' 3~.999 47,93f )e~,2 to.'24 89,UM 0,,2" ,,Jee I Q5171 ll'Ct'Nwd~ 0 • ' •MOO .J,000 -J,000 -l,000 -MOO -lOOO -J,000 -21000 Total Ootr-aano l!fllct 0 ' • 32.ffl .....,. -".!12 &7.524 ...... 11.22, 51.59! I 41U71 o.nneProblem ..........., ..__ Tte :.'017 comi:retelllM> Parl(sand Rocreauon ~..aster Pan ceJ8 fOf ri add'tkr'liJI 1200 acroa ct pal1Cla!ld tnrous,'Wlut 1-ferne~ COt.rty 1)/ 2000. llleCOtny • oetow stJnderdt tor oendand ~ogamnh.;, al'ld hdOOr ti,el!Oe-&. The p!tn fourd ttwt• co,t nea,ty mo mUlon to get th! Qnrity oo to the reoorm1ende0 Windarde. 6$l b'f the Nltionel Pa:k& and Rec;eation Aaociatk>n Th! itddtonal laf'd'MH iroease the pa:1< acreage ?!'I t"larnetl Courty retiidet'll The Sta~ Co,rµehers.ve o.Ac.bor ReCftalion P11n (SCORP)"' a d&lailed •1aly51s d lhe 11upPy and defNlrd d outOOor rectftloon re50IICeS n I"£ SCORP r111nks NC coLrlies bf' c11rert -..,ply of l't!'ctealJDn r~ zndprovldes a ocnchrmrt< tor MW"oorl,/ l'CCfCl!lhOMI fC'80l.l'CC9 ,nn!( omor1g IJ',eotf1ef' 99 oountlC5 Homctt ~c1,rrcntymnkSiQt'l 1n J)'<nCehc«era 78th nathlcte co1.1ti, e&h in paygrcur'l:la, 5-Qh in atJ1'ebc fields, ard 5111 n Iran IT'in TN9 perk alto begng the oornection t.t,,.,ee,, I.he Town of Lil!f'9too and the Harnett Cou,ty ~ Co~ It could p;JUb!y become P81t o1 a geenway ay&tl!m (Hamett Q:uty ct. ~1C1eri by 2G rriles d geemwy tra.ls a;ca:)rong to N.lilOOal Staod.'11m ar'dbcrdlmor1<1ng ngcl"CIC!•) TN! coumyt,91 ttrn!ed ~roroorkaand MP.been ed"G MJdcl $200.000 peryeerto,tond ODrk mP"ovemert&. In ordertoOOYetopal or tte 1urentie8at Governmert Com~e,i; Park, the oourtv a~ed for a Parks and Recreation Tnm Fl.lldGrart and wn awarded s«Xl,CXX> In 2016. A. m11tel'l dStl00,000 wa.a rtq.rlred by the oourty. Fundis a""e be:rg ueed 10 the emenltletlilted ebc:Jrte. Hum:::ane Fla"ence cet.eed damag9 and floodhg h the area 'M"er• tte park is localed. 1l'e state grart.ed a 12.monu, exteniion and the Pfqe« is scheduled 10 be completed t.yo::toter 2020 Totals all expenditures and revenues, even those expended or received in previous years. Totals operating costs, but not those spent pnor to FY2019. Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page112 ACTION SUMMARY (p.2) Action Summary Below is a summary of 1he status of proJecis in the GIP. Those that are shown as 'approved' have alreact,, been approved by the Board of Commissione<s, eilher in the FY 202().2026 or by separale action and there is no substantial change in the projecl !!!!!.(has not been In a preYious CIP) ~wholly oo"l)lete with no remaining expenses) Benhaven (former) School Renovation Board of Elections Voting Equipment Replacement Eme<gency (VIPER) Radios Replacement Emergency Medical Services (EMS) C0""8lesoent Transport Um Replacemerts Gree.,..ay Trail construction Capital Rese= Appropriation Hamett Regional Jetport (HRJ) Airfield Lighting Rehabilitation Pl.tlllc library Rado Frequency Identification (RFID) Installation Solid waste Bl.lldozer Replacement Approved-No co.-(app<eved In a previous CIP; all or part of the main oontrac:I has not been exerued, but the project may be In desigl) Emergency Medical Servloes (EMS) Emergency Transport Um Replaoemerts Emergency Medical Services (EMS) Transport um Remounts Fleet Management and Replacement System Harnett COurty Sheriff's 911 Dispatching Software Replacement Hamett COurty Sheriff's Detention center Security Intercom Replaoemert Harnett COurty SheriWs Detention Video Sl.l'Veillance System Upgrade Harnett CO<rty Sheriff's Records Software Replacement Hamett Regional Jetport (HRJ) Apron Expansion Northwesl Harnett Emergency Radio Tower Replacement Parks Capital Reserve Appropoations Sheriff Capital Reserve Social services and Conmons Area Root Replacement APRC9Ytd.C0ntractJ lat (app-oved in a ~ev!Ous CIP; O"l8in oontract has been executl!d and project is U'lderWay) Government C~lex Par1< Development (Current and Fut1.<e Phases) Harnett COurty Resource Center & Library and Oepartmert ol Social Se<Yices (OSS) Addition Neills Creek Temis Courts and Western Hamett Middle School Baseball and Softball Fields Lighting Patriots Par1< Development (CUrrent and Future Phases) Tax Reappraisal Fl.fld Boone Trail School (fomner) Demolition Courthouse HVAC Cooling Towe<s Replacement f!l!!!r!..(the couny does not have sufficiert data or revenue to schedule the project the project may ba scheduled in future CIP) Anderson Cleek Par1< Development (FIJ1.<e Phases) Boone Trail Par1< Development COurthousa SheU-Spaoe Up(~ Fleet Maintenance Fecnity Improvement or Replacement Hamett Courty Sheriff's DetenHon Center Housing Unit Addition Hamett Courty Sheriff's Detention Center Kitchen and Lal.fldry Equipment Replacement Hamett County Sheriff's Office and Detertion Cen1er Generator Purchase and Installation Hamett Regional Jetport (HRJJ New Terminal construction HVAC COntrol Upgrades and StandarcizaHon in Multiple Locations Neill• Creek Par1< RoadWay Construclion Northwest COnvenlence Certer Relocation Northwest Hamett Par1< Development Old Jail Demolition and Relocation of Building Systems for Emergency Services Public Library Mobile Outreach Vehicle Public Library western Hamett Service Expansion Shawtown COmrnunity Par1< Development Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page113 120219a HCBOC Page114 COURTHOUSE HVAC COOLING TOWERS REPLACEMENT {p. 7) Project Name Courthouse HVAC Cooling Towers Replacement Brief Description Replace HVAC cooling towers at the courthouse, 301 W. Cornelius Blvd, Lillington. The existing coolers are outdated and have had extensive repairs. Scheduling the cooling towers for replacement will help ensure they are replaced before catastrophic failure. Final Project Budget $114,000 Final Cost $101,682 Completion Date 06/11/2019 Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page115 BOONE TRAIL DEMOLITION (p. 12) • Demolish the former Boone Trail Elementary School, located at 8500 Old US 421, Lillington, which was destroyed by fire May 4, 2019 • Final budget: $239,000 • Projected cost: $227,520 • Funded from transfer from general fund • Development of Park is a future project Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page116 120219a HCBOC Page117 VI I-u Ill ~ C: 0 0 C: ·-OJ +-' u OJ D: cu +-' u ..n A. !..... OJ OJ OJ ·~ V') ..c: 0 > OJ +-' !..... cu V') I-0 0... ..c: cu Ill ~ OJ V') ..c: ..n ..c: +-' 0... .....I +-' u !..... cu OJ I 0 OJ !..... !..... > +-' ::J VI a.. 0 C: +-' I--E 0 ::J u u 4- OJ !..... u '° !..... OJ 0 N V') 4-C !..... cu 0 0 V') N ..c: OJ D: I OJ u V') 0 en !..... C: ::J I-N C: 0... OJ 0 cu 0... z N ..c: !..... X C: u 0 OJ 0 ·-0 C: OJ -a +-' 0 C: u OJ ·-0 C: +-' > 0 u 0... 0 ·-::J +-' Cl !..... +-' !..... V') 0... OJ +-' 0 !..... V') Ill 0... u C: -a 0... cu V') 0 OJ > ·-0 +-' -a u +-' +-' u ::J 0 OJ OJ C: u OJ ·~ OJ -+-' cu ..n D: 0 +-' ~ X <( !..... ·-OJ a.. ......J .·A. • • • • ~ C :;. .-.: ·, 120219a HCBOC Page118 GOVERNMENT COMPLEX PARK (PHASE 1) (P. 19) • Develop Phase 1 of the Government Complex Park, located at 350 Alexander Drive, Lillington • 2 multiuse fields, 2 baseball/softball fields, 1.75 miles of walking trails, water access, observation deck, and park infrastructure • Develop Phase 2 as funding allows: playground, splash pad, acfditional trails, picnic shelter, and additional parking • $800,000 budget; $400,000 from PARTF grant; $400,0CYO from Parks Capital Reserve • Phase 1 underway and must be complete by October 2020 • lncreas~d operating costs for park staff and maintenance Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page119 HARNETT COUNTY RESOURCE CENTER & LIBRARY (P. 23) • Construct a 57,000-square-foot government resource center and library located at 455 McKinney Parkway, Lillington • Construct a 10,000-square-foot expansion of DSS • Site improvements • Project bid August 2019 • $26.3M, $21.1M installment debt, $3.8M bond premium, $1.3M General Fund • Substantial completion projected December 31, 2020 Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page120 120219a HCBOC Page121 HARNETT COUNTY RESOURCE CENTER & LIBRARY (P. 23) • Increased operating costs from annual debt service, expanded library services, and facility cleaning and maintenance • Decreased costs from moving county offices from rental space 120219a HCBOC Page122 NEILLS CREEK AND WESTERN HARNETT FACILITIES LIGHTING (p. 31) • $411,000 in FY 2020 • Funded from GO bond proceeds • Contract with lighting vendor approved in July 2019 • Provide field lighting for Western Harnett Miadle School field and Harnett Central Tennis Court • Increased costs for electricity; increased revenue for field rental Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page123 PATRIOTS PARK (p. 34) • $347,000 in FY 2020 • Funded from Parks Capital Reserve • 7 acre-site, co-located with Convenience Center on Ponderosa Road • Currently constructing 2 multi-use fields for open play and 2,500-foot walking trail • Playground and picnic shelter are future phases when funding allows • Increased operating costs for parks staff and maintenance Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page124 TAX REAPPRAISAL (p. 40) • State law requires counties to set aside funds for revaluation • County contracted with Vincent Valuations in June 2019 to conduct revaluation at a cost of $2,070,000 • $690,000 contribution to reappraisal fund made in FY 2020 and required for next 2 years • Funding from general fund Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page125 120219a HCBOC Page126 EMS EMERGENCY TRANSPORT REPLACEMENTS (p.16) • $1.3M over five years, beginning in FY 2022 • Funded from capital reserve • 5 units included in CIP • Emergency calls have increased from 14,32D in 2016 to 16,967 in 2018 • Replacements projected based on current mileage1.usage and vehicle replacement po icy: • Replace at 15 years • Replace earlier if last remount reaches 200,000 miles for gasoline engines; 225,000 for diesel engines Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page127 EMS TRANSPORT UNIT REMOUNTS (p. 17) • $877,148 over six years, beginning in FY 2020 • Funded from capital reserve • 7 units included in CIP • A remount extends the useful life of an ambulance by replacing the chassis and renovating the box • Includes contingency because scope can vary from vehicle to vehicle • Remounts projected based on vehicle remount policy: • Remount at 5 years and no more than twice afterwards, up to a maximum of 15 years • Saves approximately $230,000 per vehicle by remounting instead of replacing • Remounts can be reduced if Convalescent Vehicles approved (explained later) Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page128 FLEET MANAGEMENT & REPLACEMENT SYSTEM (p. 18) • $1 M over five years, beginning in FY 2019 • Funded from operating budget • Replace the county's 37 non-emergency vehicles based on standard criteria that minimize maintenance costs and maximize resale revenue • The funding requested in the CIP will allow vehicles to be replaced once • Thereafter, future replacements will be funded by "leasing" vehicles to departments • Recommend financial model to demonstrate if leasing rates sufficient Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page129 HARNETT SHERIFF'S 911 DISPATCHING SOFTWARE REPLACEMENT (p. 25) • Existing software has not been upgraded in 20 years and will not support state's new IP network, receive videos, or work with AVLs to support dispatch of closest vehicles • $497,588 in FY 2020 (previous budget of $520,000) • Strategy is to maximize 911 funding, which will not cover costs associated with mobile data terminals • We've estimated worst case scenario: $222,674 from 911 funds and $274,914 from VIPER radio project • Increased costs for software maintenance Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page130 120219a HCBOC Page131 DETENTION CENTER INTERCOM REPLACEMENT (p. 26) • $130,612 in FY 2021 • Funded from Sheriff Capital Reserve (requested from general capital reserve)-reserve has a current balance of $422,346 before $450,000 transfer budgeted in FY 2020 • Equipment is 10 years old, no longer made by manufacturer and replacement parts are hard to find • Increased costs unknown Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page132 DETENTION CENTER VIDEO SURVEILLANCE SYSTEM REPLACEMENT (p. 27) • $58,557 in FY 2020 recommended to replace failed DVRs • $296,971 in FY 2022 to replace remainder of the system • Funded from Sheriff Capital Reserve (requested from general capital reserve)-reserve has a current balance of $422,346 before $450,000 transfer budgeted in FY 2020 • Equipment is 10 years old, no longer made by manufacturer and replacement parts are hard to find • Increased costs unknown Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page133 SHERIFF'S RECORDS MANAGEMENT SYSTEM REPLACEMENT (p. 28) • $139,632 in FY 2020 • Funded from Asset Forfeiture funds • Existing software hasn't been upgraded in 20 years • A budget amendment has already been done to move the funds Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page134 HARNETT REGIONAL JETPORT APRON EXPANSION (p. 30) • $3.7M over two years, beginning in FY 2020 • Funded 90% by NC DOT DOA; 10% match funded from Article 44 Special Revenue Fund • Project constructs 144,000 sf expansion, strengthens existing pavement, provides parking for 9 additional planes Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page135 l._ .. _ -------1 ---, \ I I . /·-··; I I 120219a HCBOC Page136 120219a HCBOC Page137 NORTHWEST HARNETT RADIO TOWER REPLACEMENT (p. 32) • $875K in FY 2020; $43,992 in prior year for land • Funded from funds remaining in VIPER project • Construct a new tower at 1979 Oakridge River Road, Fuquay-Varina • Remove existing tower at 130 Oakridge Road, Fuquay-Varina and restore land • Lease on existing land ends June 30, 2020 • Decreased costs because no longer leasing land Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page138 PARKS FUNDS APPROPRIATION (p. 33) • $200,000 annually from the general fund, beginning with FY 2018 • Provides a reliable source of funding the Parks and Recreation Department can leverage for smaller projects within the county's parks • Often in-house labor and equipment are used to reduce costs and maximize return from these funds • Funding supports/could support Government Complex, Patriots, Anderson Creek, Shawtown, NW Harnett, Boone Trail, water access sites and Benhaven • Funding model will help us determine how far this will go Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page139 SHERIFF'S CAPITAL RESERVE (p. 38) • Annual contribution of $450,000, beginning in FY 2016 • Primarily used to fund cars • FY 2019 ending balance of $422,346 • Recommended to be used for several of Sheriff's CIP requests Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page140 SOCIAL SERVICES & COMMONS ROOF REPLACEMENT (p. 39) • $299,800 in FY 2022 ($238,000 approved last year) • Cost increase because of inflation • Funded from capital reserve • Replacement of Health Department section is complete • Work will include 20-year warranty Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page141 120219a HCBOC Page142 FORMER BENHAVEN SCHOOL STABILIZATION (p. 9) • Stabilize former Benhaven Elementary School • Future uses planned: • Use gym for Early College • House Library services, other county offices & community uses • Co.mr:nunity supports preserving buildings • $836K, $144K from capital reserve and $693K from school bond proceeds • $337K in FY 2020 and $499K in FY 2022 • Increased costs for building maintenance and electricity Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page143 FORMER BENHAVEN SCHOOL RENOVATION (p. 9) • CIP funding to stabilize buildings and site for future use only • Immediate goal is to move Parks & Rec staff onsite (into Building 2) • School system removed HVAC units and boiler parts, so gym and main school buildj~g (Building 1) currently not being cond1t1oned • Roof over future library (Buildinq 3) needs replacement; roof over main building (Building 1) and future P&R (Building 2) need repair • Demolish c;:afeteria {Building 4) to provide code-required parking • Need feasibility study for remaining work Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page144 BOARD OF ELECTIONS VOTING EQUIPMENT (p. 39) • Replace equipment purchased in 2006, nearing end of useful life • $33:4,K in FY 2023, funded from capital reserve (based on most expensive option) • State Board of Elections has recently certified three vendors • Harnett County not under deadline to replace equipment • Five-step process to select equipment: 1. Board of Elections must view equipment demo 2. BOE makes preliminary recommendation to BOC 3. BOE tests equipment in at least one precinct 4. BOE seeks State Board approval 5. BOE makes final recommendation to BOC • Increased cost for maintenance offset by existing maintenance Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page145 EMERGENCY (VIPER) RADIO REPLACEMENT (p.13) • $2.9M, $2.6M from capital reserve, $167K from VIPER project, $124K from utility fund • County built infrastructure and connected to NC Highway Patrol VIPER system in 2013; Motorola support for radios ends in 2023 • Stat.e is requiring up,Qrade of radios to accept TDMA programming by July 1, 2025 (estimated cost of $3"00K) • Should we upgrade radios at the end of their useful life? • County owns 298 mobile and 288 portable radios that will eventually need replacement • Initially, county purchased radios for all entities, such as the towns and fire departments, but county funding is not recommended for replacements ( +$3M to proJect) • Beginning contributions to a county capital reserve now ($515,839/year) will allow this expense to be absorbed gradually rather than all at once Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page146 EMS CONVALESCENT TRANSPORT UNITS (p.15) • Currently, 2 ambulances are used to run non-emergency calls • Emergency Services director proposing to purchase transit-style vans and move ambulances to emergency transport • $264,054 in FY 2021, funded from capital reserve • This action will save 3 remounts included in the CIP and operating expenses; net savings of $198,914 (when CIP approved, remount project will be adjusted) Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page147 GREENWAY CAPITAL RESERVE (p. 21) • Cqunty currently deficient 26 miles of greenway; projected deficient 36 miles by 2030 • Public input in the 2015 Comp Plan and 2017 Parks and Rec Master Plan showed greenway development one of top priorities • Greenways provide health and environmental benefits • Master plan needed first (goal is to fund in FY 2020 from operating budget) • Parks Director requested $1 SOK-$200K per year in capital reserve to use as match for grants • CIP recommends $100K for 5 years and $250K for years 6 and 7 (would recommend contribution continue after Year 7) • Does not include operating costs to maintain greenways constructed Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page148 HARNETT REGIONAL JETPORT AIRFIELD LIGHTING REHABILITATION (p. 29) • $2.1 M in FY 2020; includes AWOS relocation • Pre-construction design 100% funded by ~COOT DOA, whollas prioritized proJect • Construction, construction admin and contingency funded 90% by NC DOT DOA; TO% match funded from Article 44 Special Revenue Fund • Lighting was installed without conduit, causing shorts and open circuits • Properly functioning l!ghting system necessary to ensure flight safety Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page149 PUBLIC LIBRARY RFID INSTALLATION (p. 36) • Radio frequency identification (RFID) technology allows library materials to be tagged for self checkout, better inventory and theft control, and better utirization of library staff • This project is eligible for a 75% grant from state library technology funds; if received, county contribution would be $38,463 from capital reserve (and saves $18,427 in equipment for new library) • Timing makes sense to coincide with move to new library • Action frees library staff to meet increased need for programming and information • Increased costs for software maintenance and tags for materials Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page150 SOLID WASTE BULLDOZER REPLACEMENT (p. 42) • Replace 2005 dozer with 11,000 equipment hours that is constantly breaking down • Dozer is critical for landfill operations and is subjected to rough conditions • $400K, $204,262 from fund balance and $195,738 from Solid Waste budget (earmarked for contingency) • Proposing to purchase in FY 2020 from state contract • Decreased costs because new dozer will need far less maintenance Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page151 120219a HCBOC Page152 120219a HCBOC Page153 ANDERSON CREEK PARK (p. 43) • Develop remaining 800 acres as large, regional passive park; features may include equestrian, walking and mountain bike trails; additional parking and playground; picnic shelter • County has developed 200 acres already • No funding source identified to move ahead with full development • Incremental development will occur using funds from Park Capital Reserve Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page154 120219a HCBOC Page155 BOONE TRAIL SCHOOL,PARK (p. 43) • Develop park on 13.5-acre site of former school • Initial concept plan with community input included renovated entrance, memorial walkway, amphitheater, basketball court, picnic shelter and walking trail • Community Center and Library already developed • Community has expressed interest in fundraising • No other funding source identified to move ahead with full development • Incremental development will occur using funds from Park Capital Reserve Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page156 Located in Mamers. North Carolina off Old U.S Highway 421. the Boone Trail High School site is one of multi-generational sentiment. The original 1928 school building was gutted by a fire in May of 2019. This master plan proposes the conversion of the former school site into a site reminiscent of years past into a park where visitors will be able to recall their experiences of Boone Trail with the visualization of histonc materials and forms imprinted by the old school building. The Entry Monument takes advantage of the statement-making front facade of the old school building. A plaza and ·Echo's Trail Commemorative Walk" provides alumnus and donors to illustrate the history of the site in the approximate location of the former structure's main entry and hallway. AA amphitheater with gently sloped lawn seating is located in the footprint of the old auditorium. To understand the presence the school building had. the footprint is delineated with waUs. inlaid stone and p supporting festival lighting. -·· .~ · N (9 SCALE: NTS Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page157 COURTHOUSE SHELL SPACE UPFIT (p. 44) • When courthouse constructed, 12,150 sf of "shell space" was built on 3rd floor for future courtroom • Needs of all court offices have not yet been identified and prioritized • When county is ready to move forward with build-out of space, feasibility study should be done to determine needs and estimate cost Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page158 ~!/.:•. • . : !_ ~~ ~1 I 1 -_p! ,. ) ;, ':· " ft_r. . ai.~~ -·-~ ~ ..... _ i:$ ::..~~-· ~ . 0 2 3rd rLOOR MEZZANINE ,c.,t,U.. ,{'~r ,·-o· ~ .J'~ tr?iw~ ::: ---.. {,. ... •, .. 03 ~rd HOOR MEZZANINE """""""' ., .... ,.~· ·-~'L---j .• ~·e . .., __ ._ "-,.J,.~t ,,. .. • ,.._j ,t _-i__~_ i' ~,w!: ~ . ~-··~tr:;-44t° --:z-;.. ... ~ -""'------...J ~~~ -. __ _J_ i ,.,• W~ · I I r;~. I I I I .. -1 I "'--,, ....... Ill LAMM. ~.1~!'.!~!!.~ • irt-4· .,-! I 'l'.i:c.~--------~-.. -,s• I ,, ~ i I l ! I i ! ~· = -I i -·~ -~· ~= If" .~ !I ,-< 7.i .f• "' .•. ~ ::-.... ~ q"" s:rijfil·· .,---,~ @, KEYPLAN '-~~~~' ·~ ~ HARNETT COUNTY COURniOUSE AND IOltN(TT COUNTY GQV{ltNlil(NT•l COMll'l,.l'I' U..UNOfON. NC A1.4 TAX OFFICE & REGISTER OF DEEDS BUILDINGS .... Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page159 FLEET MAINTENANCE FACILITY IMPROVEMENT OR REPLACEMENT (p. 45) • Existing garage is too small and doesn't meet service demands • Options for addressing include: • Expanding the facility by constructing additional bays • Replace aging equipment only • Replacing the existing facility with a new garage, possibly in partnership with Harnett County Schools, which also has garage needs ~ Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page160 DETENTION CENTER ADDITION (p. 45) • A detailed presentation will be given on this project at the end of the CIP presentation Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page161 DETENTION CENTER KITCHEN & LAUNDRY EQUIPMENT REPLACEMENT (p. 46) • Equipment nearing end of useful life (installed in 2009) • No cost estimates available when CIP submitted • Will be addressed when cost estimates are obtained Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page162 SHERIFF'S OFFICE AND DETENTION CENTER GENERATOR (p. 46) • The existing 400 KW generator only fully runs the 911 center; it operates life and safety equipment for the Sheriff's Office and Detention center, but does not run the HVAC system • 1,000 KW generator proposed by Sheriff's Office would replace existing generator • Obtaining a proposal for adding second generator and retaining existing generator is recommended; more cost effective and provides redundancy • 911 funding may also be an option and should be explored Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page163 HARNETT REGIONAL JETPORT TERMINAL CONSTRUCTION (p. 47) • Construct a 6,969-square-foot terminal to replace 2,200-square-foot terminal and serve as "Gateway to Harnett" • Last yea':t.. fundiQq from Article 44 Capital Reserve and NC uOT /DCYA recommended • Costs have increased since last year ( +824,851) • DOT /DOA has prioritized airfield rehabilitation ( + 191,267) • DOT /DOA now committin_g less funding than what was anticipated ( +293,971) • Article 44 Capital Reserve does not have suffic;ient balance to fund lighting, apron, and terminal • Seeking additional state funding for this project is recommended Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page164 HVACCONTROLUPGRADES& STANDARDIZATION (p. 48) • Existing controls vary by type and use outdated software • Standardizing controls would allow for better centralized management, a more secure software platform and more efficient system operation • Admin Building chiller replacement and construction of Harnett Resource Center and library include a control system that can be evaluated as a standard for county buildings on the main Lillington campus Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page165 NEILLS CREEK PARK ROADWAY CONSTRUCTION (p. 48) • A new driveway would allow access to the park without going through the campus of Harnett Central High School, allowing the park to be used during school hours • DOT would also require construction of two turning lanes • A reliable cost estimate and funding source is needed Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page166 NORTHWEST CONVENIENCE CENTER RELOCATION (p. 48) • County purchased property on Oakridge Road and obtained conditional use permit last year • Existing center on Cokesbury Road is too small and has poor traffic flow • Site is located on leased land and cannot be expanded; it is also on a narrow, rural road and traffic often backs up onto Cokesbury • New Solid Waste Director needs time to evaluate all needs before committing a large appropriation from fund balance (est. at $2M); more critical priorities may be identified • Assessing all department needs and a financial model are recommended as steps before moving ahead with this project Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page167 120219a HCBOC Page168 NORTHWEST HARNETT PARK DEVELOPMENT (p. 49) • Develop park to be co-located with convenience center on previous slide • Desire for park noted during public input for conditional use permit • Park would feature 2 ball fields, picnic shelter, playground, walking trail, and fitness station • No funding source identified to move ahead with full development • Incremental development will occur using funds from Park Capital Reserve Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page169 120219a HCBOC Page170 OLD JAIL DEMO & SYSTEMS RELOCATION (p. 50) • The old jail's electrical, mechanical and plumbing systems are shared by Emergency Management, NC Highway Patrol, and OMV and the buildings adjoin • The old jail has had water infiltration and mold . . 1s an issue • Separating these other offices from the old jail is a priority, but would require relocating building systems and constructing a mechanical room • Services from a MEP engineer will be needed to develop a scope and cost estimate for the work; RFP process underway • The project will also require temporary relocation of offices Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page171 OLD JAIL DEMO & SYSTEMS RELOCATION (p. 50) • ·..-~~-~,.. ,!. ___ ..J ,JJ_,_ -' L.,_. f.-1 -.I -_ II ~-, ' I '·_1r1-,, -i 1---=-i-_ l_: -----r: :1 :;-'~~--. :: ---·---; . ~ .:..___i; J_ ·: ,~'17 ---~, ,··, .... .......:.. -~---,,,~ t; ......,,.T....: ~, ~:, '}.-: ]· ' .. ' J !....-U-J ~ ll.a E>aSTNJ FLOOR l'UH:~ Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page172 PUBLIC LIBRARY MOBILE OUTREACH VEHICLE (p. 51) • A mobile library could provide library services to currently underserved areas • The 2018-2023 Library Master Plan determined: • The county is still larqely rural with 81 % of residents living outside an incorporated town; tfle unincorporated area is growing faster than the rest of the county • Currently, 18% of residents live below the poverty line • It is reasonable to assume that accessinq Jibr~rY services is challenging for a segment .of the county's gopulation; wel<NOW that accessing the Tnternet is a problem 1n many areas df ttie county • The Library Director proposes putting together a team to do extensive research on the vehicle's features before moving ahead with purchase Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page173 PUBLIC LIBRARY WESTERN HARNETT SERVICE EXPANSION (p. 52) • The county is still largely rural with 81 % of residents living outside an incorporated town; the unincorporated area is growing faster than the rest of the county • The 2018-2023 Library Master Plan found that approximately 48,000 residents lack adequate library services • Options for addressing this need include renovating an existing building or constructing a new building • A scope and reliable cost estimate, as well as projections for staff and other operating costs, is needed before moving ahead with the project Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page174 120219a HCBOC Page175 SHAWTOWN COMMUNITY PARK (p. 52) • Develop park on site of former school • Proposed amenities include walking trail, fitness stations, playground, picnic shelter and community garden • An outdoor basketball court has already been constructed • Parks and Rec will work with Cooperative Extension to develop the community garden • No other funding source identified to move ahead with full development • Incremental development will occur using funds from Park Capital Reserve Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page176 120219a HCBOC Page177 Ill ~ A. -0 ::i Ill -+,..J V) I-~ -+,..J ('.. 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'.::, +-' X • 0 QJ z . {. 120219a HCBOC Page178 r--~ Harnett ~(--, COUNTY ~ NORTH CAROLINA Renee Paschal Budget Director rpa sc ha l@ha rn ett. o rg Harnett County Capital Improvement Plan FY 2021 120219a HCBOC Page179 120219a HCBOC Page180 Background and Scope • Existing detention center opened in 2009 • Core facilities and site were master-planned to add three 56-bed housing units • For last two years, Sheriff's Office has asked for a capital project to -construct one of the housing units (55-bed) • Intent is to house non-local inmates to generate revenue • US Marshall has asked county to increase number of federal inmates held • Manager recommended feasibility study: Will the Housing Unit Pay for Itself? Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page181 Historical Revenue Generation • Annual revenues between $429,443 (2016) and $1.2M (2013) generated • From housing federal, state and military inmates • Rates vary from $45/day state, $60/day federal, and $65/day military Trend in Revenue from Outside Inmates 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 • Federal • State Military Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page182 The Problem? This Revenue Will Dwindle to $0 • By 2030, it is projected that the county will no longer have capacity for non-local inmates • The revenue will decline until that point as local inmates consume the capacity • It could happen before or after 2030, but it will happen 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Projected Revenue from Outside Inmates I I I FY FY FY FY FY FY FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Federal • State Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page183 Feasibility Study Approach • Hire an outside consultant? • Architect did feasibility study for existing detention center, but need was clear and architect has interest in proving need for construction • Budget director has experience in overseeing several feasibility studies for jails, building a new jail, and in projecting operating costs for the new facility • Sheriff and manager agreed to allow budget director to do this work • Captain over Detention Center provided much of the information on which study based • FY 2018 was used as baseline for expenses, because numbers audited and data in old financial software • Question to answer: Will the housing unit pay for itself? Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page184 Functional Capacity • Existing detention center's capacity is 320 inmates • Ideally, a number of these beds are kept vacant for inmates to be properly "classified" and placed in risk-appropriate housing • Harnett Detention Center operates seven housing units: medium-security, high-disciplinary, classification, high security, minimum security, female, and minimum security (dorm style) • Sheriff has determined he needs 20% of beds vacant to manage inmate classification • Function capacity: • Existing detention center: 320*80%=256 available beds • New housing unit: 55*80%=44 available beds Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page185 Local Inmate Projections • Incarceration rate is ratio between inmates and 1,000 county residents 300 250 • 2015 Comprehensive Plan projects number of county residents 200 through 2035 • Average incarceration rate since 2013 is 0.153% 150 100 • Average for last three years slightly higher, 0.159% (this was used 50 to project future number of inmates) • Functional capacity reached in 2030 and exceeded in 2031 0 Projected Local Inmate Population Functiona1Capacity(256) ~ -==-= -----------2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page186 Fiscal Year 2013 2014 2015 2016 2017 2018 State 1.42 10.32 8.24 7.33 9.97 11.44 Federal 47.33 21.07 14.69 12.13 23.61 28.85 Military ---1.15 Local 176.25 194.62 186.07 204.54 210.42 212.56 Total 225.00 226.00 209.00 224.00 244.00 254.00 120219a HCBOC Page187 Occupancy Rates Occupancy Rate of Beds Available to Outside Inmates • Available beds is functional capacity minus number of local inmates 120% 100% 80% 60% 40% 20% 0% % Utilization 2013 61% 2014 51% 2015 33% 2016 38% 2017 74% 2018 95% • Occupancy rate is number of non-local inmates divided by available beds • 6-year average is 56% • 2-year average is 84% Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page188 Cost for New Housing Unit • Project cost $5,169,295, based on: • August 2019 estimate provided by Mosely Architects, architects for original detention center • Costs adjusted to include debt issuance and town of Lillington sewer connection fees • Project budget shown in Appendix A • Debt financing assumed 4% interest and 20-year term • Project amortization shown in Appendix B • $4,187,129 total debt service paid between FY 2021 and FY 2030 Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page189 Operating Expenses • Personnel based on staffing plan provided by Captain over detention: • 5 detention officers • 1 detention corporal • 1 sworn transportation officer • 1 administrative support • Operating costs allocated based on square footage, staffing or inmates • All costs in FY 2018 were reviewed with Captain; not all costs were allocated if housing unit had no effect • Salary-related costs were inflated by 1.33% per year; other costs were inflated by the 3-year average inflation rate: 1.93% • Personnel and square footage costs determined to be "fixed," costs remain regardless of number of inmates • Inmate costs determined to be variable • See Appendix C for a breakdown Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page190 Scenarios • Baseline: No outside inmates are housed, resulting in full fixed costs, no variable costs and no revenue • Scenario 1 (best case): • Available beds occupied only by federal inmates • Occupancy rate matches highest of the past six years, 95% • Scenario 2 (worst case): • No federal inmates housed, only state • Occupancy rate lowest of past 6 years, 33% Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page191 Scenarios • Scenario 3 (Likely Case 1 ): • Occupancy rate matches 2-year average of 84% • Mix of inmates (federal, state) matches last two-year average • Chosen as most likely by Captain over detention • Scenario 4 (Likely Case 2): • Occupancy rate matches 6-year average of 56% • Mix of inmates matches 6-year average • Scenario 5: • Scenario 3 + ask for increase to $70/day from federal government Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page192 FY 2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY 2029 FY 2030 Total Baseline (465,237) (966,321) (914,105) (910,924) (907,858) (904,908) (902,078) (899,368) (896,782) (894,320) {8,661,901) Scenario 1 {465,237) {226,548) {177,803) {178,158) {178,697) {179,422) {180,338) {181,446) {182,752) (184,258) {2,134,658) Scenario 2 {465,237) {791,055) {740,031) {738,066) {736,239) (734,552) (733,009) (731,612) (730,363) {729,265) {7,129,427) Scenario 3 [ {465,237) (369,691) {320,540) {320,484) (320,602) (320,899) (321,377) (322,041) (322,893) (323,936) (3,407,699) Scenario 4 {465,237) {563,677) {513,506) {512,408) {511,465) {510,680) (510,056) {509,596) (509,302) {509,177) {5,115,103) Scenario 5 {465,237) {275,047) {222,831) {219,650) (216,584) {213,635) {210,804) {208,094) {205,508) {203,046) {2,440,436) 120219a HCBOC Page193 Revenues v Operating FY 2021 FY2022 FY 2023 FY 2024 FY 2025 FY2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Scenario 1 228,350 266,757 256,063 245,185 234,121 222,867 211,420 199,776 187,932 2,052,471 Scenario 2 (336,157) (295,472) (303,845) (312,356) (321,009) (329,804) (338,745) (347,835) (357,075) (2,942,298) Scenario 3 I 85,207 124,019 113,737 103,280 92,645 81,828 70,826 59,635 48,253 779,430 Scenario 4 (108,779) (68,946) (78,187) (87,583) (97,137) (106,851) (116,729) (126,774) (136,988) (927,974) Scenario 5 179,851 221,728 214,571 207,298 199,909 192,401 184,772 177,020 169,143 1,746,693 120219a HCBOC Page194 Summary of Results • No scenario covers the county's full costs (debt service and operating expenses) • In 3 scenarios, the county's operating costs were covered (Scenarios 1, 3, and 5) • However, in Scenario 3, deemed the most likely, only $779,430 is generated over 10 years to cover debt; the county's net expenses average $340,000 per year • In Scenario 4, which uses 6-year averages, the county would not cover operating expenses Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page195 Cost Per Inmate % Occupancy 15,113.12 35,809.02 16,543.54 22,674.14 16,543.54 120219a HCBOC Page196 Recommendation • If county's finances were robust, there is logic to building the housing unit now and using revenues to cover future capital costs; a new housing unit will be needed in the early 2030s • The federal government will not make any guarantees about the number of prisoners or provide up-front funding • The likely reward ($779,430 towards debt) is not enough to warrant the significant risk • The county will need to plan for the loss of revenue over the next 10 years Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page197 AGENDAITEM I~ ,,,::__ -~ Harnett ~ (--.. C O U N T V ,V_ NORTH CAROLINA HARNETT COUNTY Recommended 2021-2027 Capital Improvements Program 120219a HCBOC Page198 Table of Contents Readers Guide Action Summary Total Cost of Projects by Year Funding Sources Operating Budget Effects 1 2 3 5 6 Completed Projects 7 Projects: General Fund 8 Benhaven (former) School Renovation 9 Board of Elections Voting Equipment Replacement 11 Boone Trail School (former) Demolition 12 Emergency (VIPER) Radios Replacement 13 Emergency Medical Services (EMS) Convalescent Transport Unit Replacements 15 Emergency Medical Services (EMS) Emergency Transport Unit Replacements 16 Emergency Medical Services (EMS) Transport Unit Remounts 17 Fleet Management and Replacement System 18 Government Complex Park Development (Current and Future Phases) 19 Greenway Trail Construction Capital Reserve Appropriation 21 Harnett County Resource Center & Library and Department of Social Services (DSS) 23 Harnett County Sheriffs 911 Dispatching Software Replacement 25 Harnett County Sheriffs Detention Center Security Intercom Replacement 26 Harnett County Sheriffs Detention Center Video Surveillance System Upgrade Harnett County Sheriffs Records Software Replacement Harnett Regional Jetport (HRJ) Airfield Lighting Rehabilitation Harnett Regional Jetport (HRJ) Apron Expansion Neills Creek Tennis Courts and Western Harnett Middle School Baseball and Softball Fields Lighting Northwest Harnett Emergency Radio Tower Replacement Parks Capital Reserve Appropriations Patriots Park Development (Current and Future Phases) Public Library Radio Frequency Identification (RFID} Installation Sheriff Capital Reserve Social Services and Commons Area Roof Replacement Tax Reappraisal Fund Solid Waste Solid Waste Bulldozer Future Projects 27 28 29 30 31 33 33 34 36 38 39 40 41 42 43 120219a HCBOC Page199 THIS PAGE WAS INTENTIONALLY LEFT BLANK 120219a HCBOC Page200 Readers Guide Project Budget: The budget for the project as approved by project ordinance or as approved in the FY 2020-2026 CIP. Project Element: Expense Funding Source: Revenue Operating Effect: Impact on Operating Budget. 11/12/2019 Government Complex Park Development (Current and Future Phases) Project Status ~ ~ Project Totals: Develop Phase 1 of the Government Complex Park, localed al 350 Alexander Drive, Lillington. Amenities under construction include two multiuse fields, two baseball/softball fields, 1.75 miles of walking trails, canoe/Kayak water access, river observation deck, and park infrastructure. Develop Phase 2 as funding allows. Future amenities include a playground, splash pad, additional trails, a picnic shelter, and additional parking. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Yearfi: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Elam1tnt Ca-istruction 643.747 0 600.000 43.747 0 0 0 a 0 0 643.747 Conlfngency 53.753 a 0 53.753 0 0 0 0 0 0 53.753 Design, Engineering & Caistrudion Ad 102,500 64.501 10.000 7,999 0 0 0 0 0 0 102.500 Total Projoct Element 800.000 64,501 610.000 105.499 0 0 0 0 0 0 BOO.ODO Funding Source Grants. Gifts, Etc 400.000 0 347.250 52,750 0 0 0 0 0 0 400.000 Parks Capital Reserve 400,000 84.501 262,750 5:2.749 0 0 0 0 0 0 400.000 Total Funding Source 800,000 84.501 610,000 105,499 0 0 0 0 0 0 B00.000 Opera.Ung Effect Increased Operating Costs 0 0 0 35.999 47.936 36.512 90,524 69.184 62,224 71.598 435.979 Increased Revenue 0 0 0 -3,000 -3.000 -3,000 -3.000 -3.000 -3,000 -3.000 -21.000 Total Oporallng Effect 0 0 0 32.999 44,938 35.512 67.524 66,164 79.224 68.598 414.979 Define Problem The 2017 Comprehensive Parks and Recreation Master Plan calls for an additional 1209 acres of parkland throughout Harnett County by 2030. The County is below standards for parkland, programming, and indoor facilities. The plan found it will cost nearly $90 million to get the County up lo the recommended standards set by the National Parks and Recreation Association. The additional land will increase the park acreage per Harnett County resident. The Statewide Comprehensive Outdoor Recreation Plan (SCORP) is a detailed analysis of the supply and demand of outdoor recreation resources in NC. SCORP ranks NC counties by current supply of recreation resources and provides a benchmark for hD'w' county recreational resources rank among the other 99 counties. Harnett County currently ranks 9oth in picnic shelters, 79th in athletic courts, 88th in playgrounds, 54th in athletic fields, and 51st in trail miles. This park also begins the connection between the Town of Lillington and the Harnett County Government Complex. It could possibly become part of a greenway system (Harnett County is deficient by 26 miles of greenway trails according to National standards and benchmarking agencies). The county has limited funding for parks and has been setting aside $200,000 per year to fund park improvements. In order to develop all of the amenities at Government Complex Park, the county applied for a Parks and Recreation Trust Fund Grant and was awarded $400,000 in 2016. A match of $400,000 was required by the county. Funds are being used to the amenities listed above. Hurricane Florence caused damage and flooding in the area where the park is located The state granted a 12-month extension and the project is scheduled to be completed by October 2020. Harne1t County 2021-2027 Capital Improvements Program Totals all expenditures and revenues.even those expended or received in previous years. Totals operating costs, but not those spent prior to FY 2019. Page 1 120219a HCBOC Page201 Action Summary Below is a summary of the status of projects in the CIP. Those that are shown as "approved" have already been approved by the Board of Commissioners, either in the FY 2020-2026 or by separate action and there is no substantial change in the project. New (has not been in a previous CIP) Benhaven (former) School Renovation Board of Elections Voting Equipment Replacement Emergency (VIPER) Radios Replacement Emergency Medical Services (EMS) Convalescent Transport Unit Replacements Greenway Trail Construction Capital Reserve Appropriation Harnett Regional Jetport (HRJ) Airfield Lighting Rehabilitation Public Library Radio Frequency Identification (RFID) Installation Solid Waste Bulldozer Replacement Approved-No Contracts (approved in a previous CIP; all or part of the main contract has not been executed, but the project may be in design) Emergency Medical Services (EMS) Emergency Transport Unit Replacements Emergency Medical Services (EMS) Transport Unit Remounts Fleet Management and Replacement System Harnett County Sheriffs 911 Dispatching Software Replacement Harnett County Sheriffs Detention Center Security Intercom Replacement Harnett County Sheriffs Detention Video Surveillance System Upgrade Harnett County Sheriff's Records Software Replacement Harnett Regional Jetport (HRJ) Apron Expansion Northwest Harnett Emergency Radio Tower Replacement Parks Capital Reserve Appropriations Sheriff Capital Reserve Social Services and Commons Area Roof Replacement Approved-Contracts Let (approved in a previous CIP; main contract has been executed and project is underway) Government Complex Park Development (Current and Future Phases) Harnett County Resource Center & Library and Department of Social Services (DSS) Addition Neills Creek Tennis Courts and Western Harnett Middle School Baseball and Softball Fields Lighting Patriots Park Development (Current and Future Phases) Tax Reappraisal Fund Completed (wholly complete with no remaining expenses) Boone Trail School (former) Demolition Courthouse HVAC Cooling Towers Replacement Future (the county does not have sufficient data or revenue to schedule the project; the project may be scheduled in future CIP) Anderson Creek Park Development (Future Phases) Boone Trail Park Development Courthouse Shell-Space Upfit Fleet Maintenance Facility Improvement or Replacement Harnett County Sheriffs Detention Center Housing Unit Addition Harnett County Sheriffs Detention Center Kitchen and Laundry Equipment Replacement Harnett County Sheriff's Office and Detention Center Generator Purchase and Installation Harnett Regional Jetport (HRJ) New Terminal Construction HVAC Control Upgrades and Standardization in Multiple Locations Neills Creek Park Roadway Construction Northwest Convenience Center Relocation Northwest Harnett Park Development Old Jail Demolition and Relocation of Building Systems for Emergency Services Public Library Mobile Outreach Vehicle Public Library Western Harnett Service Expansion Shawtown Community Park Development 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 2 120219a HCBOC Page202 Total Cost of Each Project by Year Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals ill Harnett County Sheriffs 911 Dispatching Software 0 497,588 0 0 0 0 0 0 0 497,588 Replacement Total 911 0 497.588 0 0 0 0 0 0 0 497,588 General Benhaven (former) School Renovation 0 337,080 0 499,375 0 0 0 0 0 836,455 Board of Elections Voting Equipment Replacement 0 0 0 0 334,278 0 0 0 0 334,278 Boone Trail School (former) Demolition 87,500 140,020 0 0 0 0 0 0 0 227,520 Emergency (VIPER) Radios Replacement 0 0 0 0 0 0 2,869.866 0 0 2,869,866 Emergency Medical Services (EMS) Convalescent 0 0 264,054 0 0 0 0 0 0 264,054 Transport Unit Replacements Emergency Medical Services (EMS) Emergency 0 0 0 242,162 249.426 0 264,392 544,648 0 1,300,628 Transport Unit Replacements Emergency Medical Services (EMS) Transport Unit 0 224,512 248,785 128,035 0 135,717 140,099 0 0 877,148 Remounts Fleet Management and Replacement System 0 200.000 200,000 200.000 200,000 200,000 0 0 0 1,000,000 Government Complex Park Development (Current and 84.501 610,000 105.499 0 0 0 0 0 0 800,000 Future Phases) Greenway Trail Construction Capital Reserve 0 0 100,000 100,000 100,000 100,000 100,000 250.000 250,000 1,000,000 Appropriation Harnett County Resource Center & Library and 1,054,997 16,717,602 8,529.899 0 0 0 0 0 0 26,302,498 Department of Social Services (DSS) Addition Harnett County Sheriffs Detention Center Security 0 0 130.612 0 0 0 0 0 0 130,612 Intercom Replacement Harnett County Sheriffs Detention Video Surveillance 0 58,557 0 296,971 0 0 0 0 0 355,528 System Upgrade Harnett County Sheriffs Records Software Replacement 0 139,632 0 0 0 0 0 0 0 139,632 Harnett Regional Jetport (HRJ) Airfield Lighting 0 2,092,668 0 0 0 0 0 0 0 2,092,668 Rehabilitation Harnett Regional Jetport (HRJ) Apron Expansion 0 296.500 3,423,769 0 0 0 0 0 0 3,720,269 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 3 120219a HCBOC Page203 Total Cost of Each Project by Year Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Neills Creek Tennis Courts and Western Harnett Middle 0 411,000 0 0 0 0 0 0 0 411.000 School Baseball and Softball Fields Lighting Northwest Hamett Emergency Radio Tower 43,992 875,000 0 0 0 0 0 0 0 918,992 Replacement Parks Capital Reserve Appropriations 750,000 200,000 200,000 200.000 200,000 200,000 200,000 200,000 200,000 2,350,000 Patriots Park Development (Current and Future Phases) 0 347.000 0 0 0 0 0 0 0 347,000 Public Library Radio Frequency Identification (RFID) 0 0 153,853 0 0 0 0 0 0 153,853 Installation Sheriff Capital Reserve 1.844,489 450,000 450,000 450,000 450,000 450,000 450,000 450.000 450.000 5,444.489 Social Set11ices and Commons Area Roof Replacement 0 0 0 299.880 0 0 0 0 0 299.880 Tax Reappraisal Fund 0 690,000 690,000 690.000 0 0 0 0 0 2,070,000 Total General 3,865,479 23,789,571 14,496,471 3,106,423 1,533,704 1,085,717 4,024,357 1,444,648 900,000 54,246,370 Solid Waste Solid Waste Bulldozer Replacement 0 400,000 0 0 0 0 0 0 0 400,000 Total Solid Waste 0 400,000 0 0 0 0 0 0 0 400,000 11/12/2019 Harne1t County 2021-2027 Capital Improvements Program Page4 120219a HCBOC Page204 Funding Sources The table below shows a summary of the funding sources for GIP projects by year. The major revenue sources are installment and other debt, capital reserves, and grants. Cu1Tent Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals 911 Fund 0 222,674 0 0 0 0 0 0 0 222,674 Article 44 Capital Reserve 0 220,917 342,377 0 0 0 0 0 0 563,294 Asset Forfeiture Funds 0 139.632 0 0 0 0 0 0 0 139,632 Bond Premium 0 3,847,498 0 0 0 0 0 0 0 3,847,498 Capital Reserves 0 368,084 551,302 670,077 583,704 135,717 2,983,685 544,648 0 5,837,217 General Obligation Bond Proceeds 0 604,508 0 499,375 0 0 0 0 0 1,103,883 Grants. Gifts, Etc. 0 2,515,501 3,249,532 0 0 0 0 0 0 5,765,033 Installment Debt 0 12,615,101 8,529,899 0 0 0 0 0 0 21,145,000 Parks Capital Reserve 84,501 609,750 52,749 0 0 0 0 0 0 747,000 Sheriffs Capital Reserve 0 58,557 130.612 296,971 0 0 0 0 0 486.140 Solid Waste Fund Balance 0 204,262 0 0 0 0 0 0 0 204,262 Solid Waste Operating Budget 0 195,738 0 0 0 0 0 0 0 195,738 Transfer from General Fund 3,736,986 1,935,023 1,640,000 1,640,000 950,000 950,000 750,000 900,000 900,000 13,402,009 Transfer from the Radio System (VIPER) Capital 43,992 1.149,914 0 0 0 0 166,689 0 0 1,360,595 Utility Fund 0 0 0 0 0 0 123,983 0 0 123,983 Total 3.865,479 24,687,159 14,496.471 3,106.423 1,533.704 1,085,717 4,024,357 1.444.648 900,000 55,143,958 11/1212019 Harnett County 2021-2027 Capital Improvements Program Page 5 120219a HCBOC Page205 Operating Budget Effects The table below shows the combined effect on the operating budget of the recommended projects for the next seven years. Operating effects include debt service, increased operating costs, decreased operating costs, additional revenues, and appropriation of revenue necessary to fund the project. Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 911 Increased Operating Costs 0 0 0 8,399 8,650 8,910 9,177 9,453 9,736 Total911 0 0 0 8,399 8,650 8,910 9,177 9,453 9,736 General Debt Service 0 457,021 2,000,950 1,958,550 1,916,150 1,868,450 1,815,450 1,762,450 1,709,450 Decreased Costs 0 0 -259,077 -186, 189 -186, 189 -186, 189 -152,260 -124,240 -124,240 Increased Operating Costs 0 33,700 470,070 587,641 615,026 732,976 703,925 744,001 735,995 Increased Revenue 0 -425 -3,850 -3,850 -3,850 -3,850 -3,850 -3,850 -3,850 Transfer from General Fund 837,500 1,454,532 3,191,634 2,496,761 1,304,583 1,221.441 987,511 540,775 450,000 Total General 837,500 1,944,828 5,399,727 4,852,913 3,645,720 3,632,828 3,350,776 2,919,136 2,767,355 Solid Waste Decreased Costs 0 0 -18,000 -18,000 0 0 0 0 0 Solid Waste Fund Balance 0 204,262 0 0 0 0 0 0 0 Solid Waste Operating Budget 0 195,738 0 0 0 0 0 0 0 Total Solid Waste 0 400,000 -18,000 -18,000 0 0 0 0 0 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 6 120219a HCBOC Page206 Completed Proiects The following projects were completed as of June 30, 2019. Project Name Courthouse HVAC Cooling Towers Replacement 11/12/2019 Brief Description Replace HVAC cooling towers at the courthouse, 301 W. Cornelius Blvd, Lillington. The existing coolers are outdated and have had extensive repairs. Scheduling the cooling towers for replacement will help ensure they are replaced before catastrophic failure. Hamett County 2021-2027 Capital Improvements Program Final Project Budget $114,000 Final Cost $101,682 Completion Date 06/11/2019 Page 7 120219a HCBOC Page207 General Fund Projects 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page B 120219a HCBOC Page208 Benhaven (former) School Renovation New Renovate the former Benhaven Elementary School, located at 2815 Olivia Road, Sanford, in three phases to provide space for county functions, an early college, and community partner organizations. First, focus on stabilizing the roofs and HVAC systems, which have deteriorated since Harnett County Schools moved out of the building. Second, demolish the cafeteria to provide adequate space for required parking. Finally, obtain a more detailed cost estimate for the remaining work. Current Project Budget Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5; Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 0 0 337,080 0 499,375 0 0 0 0 0 836,455 Total Project Element 0 0 337,080 0 499,375 0 0 0 0 0 836,455 Funding Source Capital Reserves 0 0 143,572 0 0 0 0 0 0 0 143,572 General Obligation Bond Proceeds 0 0 193,508 0 499,375 0 0 0 0 0 692,883 Total Funding Source 0 0 337,080 0 499,375 0 0 0 0 0 836,455 Operating Effect Debt Service 0 0 0 0 0 0 0 0 0 0 0 Increased Operating Costs 0 0 30,200 38.121 47,167 48,583 50,041 51.543 53,090 54,683 373,428 Transfer from General Fund 0 0 0 143,572 0 0 0 0 0 0 143,572 Total Operating Effect 0 0 30,200 181,693 47,167 48,583 50,041 51,543 53,090 54,683 517,000 Define Problem Harnett County Schools opened the new Benhaven Elementary School in fall 2018, and the former school has been vacant since that time. During the move, the school system removed many of the window units which heated and cooled the buildings, leaving the buildings unconditioned. Parts were also removed from the boiler in the main school building, leaving that building without heat. Leaking roofs have caused water infiltration, another source of mold growth and building damage. The campus has become overgrown and has been vandalized. The community has expressed interest in saving and repurposing the old school for a community center, while several county departments, including Parks & Recreation and Harnett County Public Library, have expressed interest in having satellite locations in this part of the county. The county engaged Ellington Design Group to evaluate the buildings on the site and determine the scope of work needed to bring the buildings up to code. A space program and feasibility study will need to be done to determine the full cost of the renovations. After negotiations with the Board of Education, the former school was turned over to the county on September 25, 2019. Another tract was conveyed in October, when it was discovered that it was not included in the original deed. The former Ben haven School campus is in an advantageous location to provide additional County and other services to residents living in the unincorporated areas of western Harnett County. Residents in this part of the County have asked for more engagement from the County and members of the Benhaven Community have expressed an interest in seeing the former campus reused. The following buildings are available on the campus: Building 1: The main school building is 24,662 square feet. No specific purpose has been identified for this building, though preserving the auditorium has been identified as a key concern, since this is one of the largest assembly spaces in the county. This would likely be space reserved for County departments and partner organizations to provide satellite services on the campus. Building 2: The shop/media center building is 6,771 square feet. Immediately after the roof and conditioning issues are addressed. Parks & Recreation would 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 9 120219a HCBOC Page209 Benhaven (former) School Renovation New like to move into this building to establish a presence on the campus and to provide space for equipment to maintain the campus. Building 3: The preschool building is 4,670 square feet. Following renovations, which are not yet scheduled in the CtP, the Harnett County Public Library would like to use this space to provide programming, as well as a small collection of materials, much like Boone Trail. Building 4: The cafeteria building is 13,000 square feet and is set to be demolished in FY 2023 so that code-required parking can be provided on the site. The gymnasium building (square footage unknown). Following renovations, which are not yet scheduled in the CIP, Harnett County Schools would like to establish another campus of Harnett Early College. The gym would be shared with Parks and Recreation for use outside school hours. No cost estimate has been obtained for bringing this building up to code or for renovating it. The building is currently not conditioned because the school system removed the HVAC units. Additionally, the site includes athletic fields, which Parks & Recreation would like to use. Improvements to the septic system or connection to county sewer may be needed for future development of the site. Recommended Solution Over three phases, develop the site to preserve most of the existing buildings and renovate them for a branch library, parks maintenance shop, and other county and community uses. First, in FY 2020 stabilize the buildings by conditioning them, repairing the shop roof, replacing the library roof, providing a lock system, and establishing a presence by housing a Parks and Recreation crew on the site. In addition to deterring vandalism, the crew will maintain the grounds. Second, in FY 2023 demolish the cafeteria to provide adequate space for parking. Third, in the future, retain the services of an architect to provide a building program and cost estimate for work needed beyond the code updates specified by Ellington Design. Funds for the architect will need to be budgeted when the Board of Commissioners wants to move forward with the third phase. Alternatives •Do nothing: If nothing is done, the buildings will continue to deteriorate, eventually to the point they cannot be used. The site will become overgrown and vandalism will likely continue, further damaging the buildings. •Demolish all buildings. While this is the most cost-effective solution, it defeats the purpose of the county taking ownership of the site and does nothing to address the community's interest in preserving and repurposing the buildings or departments' interest in providing satellite offices. •Move forward with the recommended solution, explained above. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 10 120219a HCBOC Page210 Board of Elections Voting Equipment Replacement New Replace 22 voting tabulators and 22 Automark ballot marking devices purchased in 2006, as requested by the Harnett County Board of Elections. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipment 0 0 0 0 0 334,278 0 0 0 0 334,278 Total Project Element 0 0 0 0 0 334,278 0 0 0 0 334,278 Funding Source Capital Reserves 0 0 0 0 0 334,278 0 0 0 0 334.278 Total Funding Source 0 0 0 0 0 334,278 0 0 0 0 334,278 Operating Effect Decreased Costs 0 0 0 0 -25,200 -25,200 -25,200 -25,200 -25,200 -25,200 -151,200 Increased Operating Costs 0 0 0 0 0 23,405 24,107 24,830 25,575 26,342 124.259 Transfer from General Fund 0 0 0 167,139 167,139 0 0 0 0 0 334,278 Total Operating Effect 0 0 0 167.139 141,939 -1,795 -1,093 -370 375 1,142 307,337 Define Problem In 2006 the Board of Elections used state and federal funds to purchase 22 M100 voting tabulators and 22 Automark ballot marking devices from Elections Systems & Software (ES&S). The machines have a useful life of 10 to 15 years and are nearing the end of this period. While ES&S will continue to service and repair the voting machines, the company has developed new voting machines, which have been certified by the State Board of Elections. Two other companies have been certified as well. As North Carolina counties replace their aging voter equipment, ES&S will likely change its focus to the new products. In the future it may become difficult to service the county's existing equipment if replacement parts can no longer be obtained. Although, the Elections Office has not had any machine failures yet, ES&S is having to repair more issues such as replacing batteries, clock chips, scanner bars, etc. The current vendor (ES&S) is still willing to maintain as long as replacement parts are available; however, the majority of counties are in the process of upgrading or will be soon. Recommended Solution The Board of Elections requests that the county fund the replacement of existing voting equipment before it starts to fail. In order to move forward with purchasing new equipment, the State Board of Elections requires that the county Board of Elections follow this process: 1) view a demonstration of the certified voting equipment at a public meeting; 2) make a preliminary recommendation to the Board of Commissioners; 3) test the equipment in at least one precinct during an election; 4) seek approval by the State Board of Elections after the test: and 5) make a final recommendation to the Board of Commissioners. The Elections Director recommends completing steps 1 and 2 at the beginning of FY 2022 so that the Board of Elections can test the equipment in the October or November 2021 municipal elections. The goal is to complete the process and have it ready for use during the 2022 primary election. Alternatives While the county can continue to repair existing equipment as long as replacement parts are available, the equipment is nearing the end of its useful life. Because of the five-step process to obtain approval for voting machines explained below. the county should plan the purchase and cannot decide in a short timeframe that it must be replaced. The State Board of Elections has certified three vendors. The local Board of Elections will hold a demonstration from these vendors as a first step in its process to replace the existing equipment. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 11 120219a HCBOC Page211 Boone Trail School (former) Demolition Completed Demolish the former Boone Trail Elementary School, located at 8500 Old US 421, Lillington, which was destroyed by fire May 4, 2019. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 225,000 87,500 132,500 0 0 0 0 0 0 0 220,000 Other Contracted Services 14,000 0 7,520 0 0 0 0 0 0 0 7,520 Total Project Element 239,000 87,500 140,020 0 0 0 0 0 0 0 227,520 Funding Source Transfer from General Fund 239,000 87,500 140,020 0 0 0 0 0 0 0 227,520 Total Funding Source 239,000 87,500 140,020 0 0 0 0 0 0 0 227,520 Operating Effect Transfer from General Fund 0 87,500 140,020 0 0 0 0 0 0 0 227,520 Total Operating Effect 0 87,500 140,020 0 0 0 0 0 0 0 227.520 Define Problem The former Boone Trail School was vacated in 2010. The media center and gymnasium were converted into the Boone Trail Community Center & Library, which opened to the public in 2017, however preservation of the original two-story structure was determined not to be cost effective. The County was working with Preservation NC, which was planning to market the property for restoration and redevelopment by the private sector. The 40,000-square-foot building was destroyed by fire May 4, 2019. The structure was condemned following the fire and demolition was determined to be the only option. The site was secured and estimates were obtained for removal of the unsafe structure. County staff worked with community members who desired to see the front entrance of the structure preserved to serve as a future entrance to a park. Recommended Solution The demolition of the school was completed on September 16, 2019 at a cost of $225,150. A portion of the front entrance was preserved and has since been sealed to prevent deterioration. The limestone Boone Trail High School sign, which sat atop the entrance. has been removed and preserved for future use. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 12 120219a HCBOC Page212 Emergency (VIPER) Radios Replacement New Replace 298 mobile and 288 portable radios before July 1, 2025 when the state will require the existing radios be upgraded. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipment 0 0 0 0 0 0 0 2,869,866 0 0 2,869,866 Total Project Element 0 0 0 0 0 0 0 2,869,866 0 0 2,869,866 Funding Source Capital Reserves 0 0 0 0 0 0 0 2,579.194 0 0 2,579,194 Transfer from the Radio System (VIPE 0 0 0 0 0 0 0 166.689 0 0 166,689 Utility Fund 0 0 0 0 0 0 0 123,983 0 0 123,983 Total Funding Source 0 0 0 0 0 0 0 2,869,866 0 0 2.869,866 Operating Effect Transfer from General Fund 0 0 0 515,839 515,839 515,839 515,839 515,838 0 0 2,579,194 Total Operating Effect 0 0 0 515,839 515,839 515,839 515,839 515,838 0 0 2,579,194 Define Problem Harnett County invested in the VIPER emergency radio system in 2013 and purchased radios for all emergency responders, including fire departments and towns. The radios will be at the end of their useful life in 2025. Motorola has stated it will end support of the radios in 2023, meaning that radios will be repaired only as long as replacement parts can be found. In the meantime, the county was just notified that the state is requiring that all radios on the VIPER network be upgraded by July 1, 2025 to receive time division multiple access (TDMA) programming. TDMA essentially divides each channel on the VIPER system into two separate talk paths and reduces the number of new frequencies that will be needed in the future. None of the radios originally purchased in 2013 comply with this requirement. A few radios have been purchased recently that meet this requirement. The state upgrade is dependent on the General Assembly appropriating funds for the Highway Patrol to upgrade its radios. Recommended Solution Fund the replacement of only county government radios, with Harnett Regional Water paying for its own radio replacements. Begin setting aside funds in FY 2021 and continue contributing to capital reserve for the following four years so that radios can be replaced before July 1, 2025. Monitor the state budget to determine if funds have been appropriated for the Highway Patrol. Notify outside agencies of the requirement to upgrade radios and invite them to partner with the county in obtaining the best pricing to replace their radios, if they wish to fund replacement. Alternatives •Upgrade the radios to be TDMA compliant and postpone replacement of radios to a later date. This option requires the county to spend approximately $300,000 to upgrade radios that will essentially be at the end of their useful life and will need replacement soon after the upgrade. By selecting this option, the county would spend $300,000 to upgrade the radios, then turn around and spend $2.5 million to replace them. •Upgrade or replace radios purchased for outside entities. Even though the county purchased 673 radios initially for outside entities, the responsibility for maintaining and replacing them falls to the outside entities. Otherwise, the county's costs will be an additional $3 million for replacement and $350,000 for upgrades, a burden the county simply does not have the resources to bear. The county charges these agencies a $25/radio/month fee. However, these funds, 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 13 120219a HCBOC Page213 Emergency (VIPER) Radios Replacement New which have a balance of approximately $200,000, are to be used to maintain the VIPER and paging systems owned by the county, including towers. VHF equipment, generators, mowing, HVAC repairs, etc. The fees are not collected to maintain or upgrade radios. Therefore. it is the county's position that the other agencies (towns, fire departments, and rescue agencies) will be responsible for the cost of the upgrade or replacement. not the county. Fire and rescue agencies have been notified of the state's requirement through Emergency Management. •Replace county-owned radios ahead of the July 1, 2025 deadline. This option ensures the county maintains reliable equipment that is supported and complies with the state's deadline for compatibility with TDMA programming. It avoids the additional cost of upgrading the radios. Finally, if outside agencies are notified of the county's intent to purchase replacement radios in this timeframe, those agencies could partner with the county in obtaining the best pricing. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 14 120219a HCBOC Page214 Emergency Medical Services (EMS) Convalescent Transport Unit Replacements New Purchase two smaller, transit-van-style vehicles for non-emergency transport and move the existing ambulances to emergency transport in order to save on future emergency vehicle remounts and operating costs. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Vehicle 0 0 0 264.054 0 0 0 0 0 0 264,054 Total Project Element 0 0 0 264,054 0 0 0 0 0 0 264,054 Funding Source Capital Reserves 0 0 0 264,054 0 0 0 0 0 0 264,054 Total Funding Source 0 0 0 264,054 0 0 0 0 0 0 264,054 Operating Effect Decreased Costs 0 0 0 -186,341 -72,409 -72.409 -72,409 -38,480 -10,460 -10,460 -462.968 Transfer from General Fund 0 0 0 264,054 0 0 0 0 0 0 264,054 Total Operating Effect 0 0 0 77,713 -72.409 -72.409 -72,409 -38.480 -10,460 -10.460 -198,914 Define Problem The county's non-emergency transport unit currently runs two ambulance-style vehicles for non-emergency transports and each averages 84,000 miles per year. Transit-style vans would be cheaper to operate and are sufficient for non-emergency transports. By purchasing two vans, the ambulance-style vehicles can be moved to emergency transport. This move will save on future remount costs. The department estimates it will save approximately $1.5 million in today's dollars by avoiding 12 remounts. The vans only cost $128,291 each in today's dollars, a savings of $1.2 million. While call volumes in non-emergency transport have been relatively stable. calls in emergency transport have increased from 14,320 in 2016 to 16,967 in 2018.Emergency vehicle miles driven are also increasing from 376,912 miles in 2016 to 559,311 miles in 2018. Recommended Solution Purchase two vans for non-emergency transport and move the ambulances to emergency transport. Alternatives •Do nothing. The county could continue to operate ambulance-style vehicles for non-emergency transport and forego the operational savings and capital savings by avoiding ambulance remounts. •Purchase two transit-style vans for non-emergency transport and move the ambulances to emergency transport to forego 12 future ambulance remounts and save approximately $5,000 per year per vehicle on operating costs. Relation to Other Projects Substantial cost savings can be realized in the ambulance remount project. Over the seven-year ClP, three remounts can be avoided for a cost savings of approximately $390,433. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 15 120219a HCBOC Page215 Emergency Medical Services (EMS) Emergency Transport Unit Replacements Approved-No Contracts Replace five emergency transport units in accordance with the Emergency Medical Services vehicle replacement policy. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipment 108,596 0 0 0 75,154 77,407 0 82,052 169,028 0 403,641 Vehicle 1,109,338 0 0 0 167,008 172,019 0 182.340 375,620 0 896,987 Total Project Element 1,217,934 0 0 0 242. 162 249,426 0 264,392 544.648 0 1,300,628 Funding Source Capital Reserves 1,217,933 0 0 0 242,162 249,426 0 264,392 544,648 0 1,300,628 Total Funding Source 1.217,933 0 0 0 242,162 249,426 0 264,392 544.648 0 1,300,628 Operating Effect Transfer from General Fund 0 0 0 347,876 347,876 226,795 143,653 143,653 90,775 0 1,300,628 Total Operating Effect 0 0 0 347,876 347,876 226,795 143,653 143,653 90,775 0 1.300,628 Define Problem Calls in emergency transport have increased from 14,320 in 2016 to 16,967 in 2018.Emergency vehicle miles driven are also increasing from 376,912 miles in 2016 to 559,311 miles in 2018. The EMS vehicle replacement policy provides that ambulances will be remounted at five years and no more than twice afterwards, up to a maximum of 15 years. Vehicles are replaced at 15 years with almost 700,000 miles. Over the seven-year timeframe of the CIP, five emergency transport vehicles are projected to meet the threshold for replacement. Having safe reliable vehicles is critical to EMS's operations. Recommended Solution Replace one vehicle in FY 2022, one in FY 2023, one in FY 2025 and two in FY 2026, in accordance with the vehicle replacement policy. Alternatives •Do nothing. Failure to replace vehicles eventually results in unsafe vehicles running emergency calls, which impacts patient care and county liability. •Replace vehicles every 15 years, in accordance with the vehicle replacement policy. 11/12/2019 Hamett County 2021-2027 Capital Improvements Program Page 16 120219a HCBOC Page216 Emergency Medical Services (EMS) Transport Unit Remounts Approved-No Contracts Remount transport units in accordance with the EMS vehicle replacement policy to extend the useful life of the vehicles. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Contingency 69,082 0 18.725 18,540 9,540 0 10,112 10,726 0 0 67,643 Other Contracted Services 99,180 0 18,540 44,849 23,097 0 24,483 25,218 0 0 136.187 Vehicle 690,814 0 187,247 185,396 95,398 0 101,122 104.155 0 0 673,318 Total Project Element 859,076 0 224,512 248,785 128,035 0 135,717 140,099 0 0 877,148 Funding Source Capital Reserves 859,076 0 224,512 248,785 128,035 0 135.717 140,099 0 0 877.148 Total Funding Source 859,076 0 224,512 248,785 128,035 0 135,717 140,099 0 0 877,148 Operating Effect Transfer from General Fund 0 0 224,512 374,751 125.967 61,949 61,949 28,020 0 0 877,148 Total Operating Effect 0 0 224,512 374,751 125,967 61,949 61,949 28,020 0 0 877.148 Define Problem Calls in emergency transport have increased from 14,320 in 2016 to 16,967 in 2018.Emergency vehicle miles driven are also increasing from 376,912 miles in 2016 to 559,311 miles in 2018. Completing replacing ambulances is costly at approximately $157,000 in today's dollars. The EMS vehicle replacement policy provides that ambulances will be remounted at five years and no more than twice afterwards, up to a maximum of 15 years. Currently, vehicles are normally remounted twice, at five years and at 10 years. Vehicles are replaced at 15 years with almost 700,000 miles. Remounting includes replacing the vehicle chassis and renovating the ambulance "box" with new floors, cabinets, etc. Remounting is approximately $115,000 less than replacing a vehicle, so remounting twice over the life of the vehicle saves approximately $230,000. Having safe reliable vehicles is critical to EMS's operations. Remounting vehicles provides a more cost effective way for ensuring this. Recommended Solution Remount two vehicles in FY 2021 and one each in FY 2022, 2024, and 2025. Alternatives •Do nothing. Failure to replace vehicles eventually results in unsafe vehicles running emergency calls, which impacts patient care and county liability. •Replace vehicles every five years. This is a more costly option that does not take full advantage of the useful life of ambulances. •Remount vehicles in accordance with the vehicle replacement policy. This option provides the most cost effective strategy for ensuring safe, reliable emergency vehicles. Relation to Other Projects If the purchase of transit-style vans for non-emergency transports is approved, three of the planned remounts can be avoided at a cost savings of $390,433. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 17 120219a HCBOC Page217 Fleet Management and Replacement System Approved-No Contracts Continue a program to replace non-emergency county vehicles in a standardized way that minimizes maintenance costs and maximizes revenue by selling vehicles at the end of the powertrain warranty period (typically, five years and 60,000 miles). Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Transfer to Capital Reserve 1,000,000 0 200,000 200,000 200.000 200,000 200,000 0 0 0 1,000,000 Total Project Element 1,000,000 0 200,000 200,000 200.000 200,000 200,000 0 0 0 1,000,000 Funding Source Transfer from General Fund 1,000,000 0 200,000 200,000 200,000 200,000 200,000 0 0 0 1,000,000 Total Funding Source 1,000,000 0 200,000 200,000 200,000 200,000 200.000 0 0 0 1.000,000 Operating Effect Transfer from General Fund 0 0 200,000 200,000 200,000 200,000 200,000 0 0 0 1,000,000 Total Operating Effect 0 0 200,000 200,000 200,000 200,000 200.000 0 0 0 1,000,000 Define Problem During the recession, the county postponed vehicle purchases except in cases of emergency. Two years ago, before beginning a systematic program to replace its aging fleet, the county owned 53 non-emergency vehicles. The average model of the fleet was 2008 and the average mileage was 114,815. Vehicles were sold traditionally at auction at the end of their useful life and brought in an average of only $2,385. The county had no vehicle standards, so departments were free to purchase any vehicle type within budget without regard for fuel efficiency and the capability of the county garage to service the vehicles. Recommended Solution The county is in Year 2 of a self-leasing program. Using a point-based system to decide on the priority of replacements, the county has purchased 16 vehicles and is leasing them back to departments at a total lease rate of $67,081 per year. Efforts to sell vehicles have improved by advertising on GovDeals, which has generated 1,111 bids on county vehicles. To set up the program, $200,000 has been set aside annually for vehicle purchases. Lease rates were determined based on information from other jurisdictions without a full financial model to ensure the program can become self sustaining within five years. Work to develop a financial model for the fleet replacement program is recommended. In the meantime, the county should continue the $200,000 annual contribution. Alternatives •Do nothing. Failure to replace the fleet will eventually mean more vehicles out of service, staff down-time and impact on customer service. Vehicles will continue to accumulate mileage and will be sold when they essentially have no value. Vehicle replacement decisions will continue to be made ad hoc without regard for fuel efficiency and service capabilities. •Contract for a vehicle leasing program. The county was approached by a company that offers a leasing solution. For a set amount each year, new vehicles will be provided and replaced while the vehicles still have value. While providing a newer fleet of vehicles, the leasing program was very costly and the staff attorney had concerns about how the lease was proposed. •Adopt a "self-leasing" strategy to centralize management of fleet purchases and base replacement decisions on a rational, point-based system. Standardize the types of vehicles being bought so that the garage staff can improve proficiency and achieve economies of scale in purchasing parts. Consider fuel efficiency as a factor in deciding which new vehicles to buy. Lease these new vehicles back to departments at a standard lease rate and use this revenue to sustain the program long term. Aggressively market and sell vehicles before they have exhausted their useful life to maximize resale value. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 18 120219a HCBOC Page218 Government Complex Park Development (Current and Future Phases) Approved-Contracts Let Develop Phase 1 of the Government Complex Park, located at 350 Alexander Drive, Lillington. Amenities under construction include two multiuse fields, two baseball/softball fields, 1. 75 miles of walking trails, canoe/kayak water access, river observation deck, and park infrastructure. Develop Phase 2 as funding allows. Future amenities include a playground, splash pad, additional trails, a picnic shelter, and additional parking. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 643.747 0 600,000 43,747 0 0 0 0 0 0 643,747 Contingency 53,753 0 0 53,753 0 0 0 0 0 0 53,753 Design, Engineering & Construction Ad 102,500 84.501 10.000 7,999 0 0 0 0 0 0 102,500 Total Project Element 800,000 84,501 610,000 105,499 0 0 0 0 0 0 800,000 Funding Source Grants, Gifts, Etc. 400,000 0 347,250 52,750 0 0 0 0 0 0 400,000 Parks Capital Reserve 400,000 84,501 262,750 52,749 0 0 0 0 0 0 400,000 Total Funding Source 800,000 84,501 610,000 105.499 0 0 0 0 0 0 800,000 Operating Effect Increased Operating Costs 0 0 0 35,999 47,938 38,512 90,524 69.184 82,224 71,598 435,979 Increased Revenue 0 0 0 -3,000 -3.000 -3,000 -3,000 -3.000 -3,000 -3.000 -21,000 Total Operating Effect 0 0 0 32,999 44,938 35,512 87,524 66.184 79,224 68,598 414,979 Define Problem The 2017 Comprehensive Parks and Recreation Master Plan calls for an additional 1209 acres of parkland throughout Harnett County by 2030. The County is below standards for parkland, programming, and indoor facilities. The plan found it will cost nearly $90 million to get the County up to the recommended standards set by the National Parks and Recreation Association. The additional land will increase the park acreage per Harnett County resident. The Statewide Comprehensive Outdoor Recreation Plan (SCORP) is a detailed analysis of the supply and demand of outdoor recreation resources in NC. SCORP ranks NC counties by current supply of recreation resources and provides a benchmark for how county recreational resources rank among the other 99 counties. Harnett County currently ranks 90th in picnic shelters, 79th in athletic courts, 88th in playgrounds, 54th in athletic fields, and 51 st in trail miles. This park also begins the connection between the Town of Lillington and the Harnett County Government Complex. It could possibly become part of a greenway system (Harnett County is deficient by 26 miles of greenway trails according to National Standards and benchmarking agencies). The county has limited funding for parks and has been setting aside $200,000 per year to fund park improvements. In order to develop all of the amenities at Government Complex Park, the county applied for a Parks and Recreation Trust Fund Grant and was awarded $400,000 in 2016. A match of $400,000 was required by the county. Funds are being used to the amenities listed above. Hurricane Florence caused damage and flooding in the area where the park is located. The state granted a 12-month extension and the project is scheduled to be completed by October 2020. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 19 120219a HCBOC Page219 Government Complex Park Development (Current and Future Phases) Approved-Contracts Let Recommended Solution Continue construction of Phase 1 of the Government Complex Park and use PARTF grant to leverage county dollars. This Park will increase the amount of established parkland within the County and move us closer the to the recommended national standards. In the future, as funding allows, construct additional amenities including a playground, splash pad, additional trails, a picnic shelter, and additional parking. Alternatives Do nothing. This is not really an option since the county has already signed the grant agreement and awarded contracts for grading and trail construction. To not move forward with the project would jeopardize the grant funds to offset these costs, as well as hinder the county's ability to obtain future PARTF grants. 11/12/2019 Harnett County 2021-2027 Capital lmpro11ements Program Page 20 120219a HCBOC Page220 Greenway Trail Construction Capital Reserve Appropriation New Annually, set aside funds for greenway construction after a greenway master plan has been developed. Leverage the county's funds by seeking grant funds to offset costs. Where feasible, ask developers to construct portions of greenways in lieu of the recreation exaction fee. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Transfer to Capital Reserve D 0 D 100,000 100,000 100,000 100,000 100.000 250,000 250.000 1,000,000 Total Project Element 0 0 D 100,000 100,000 100,000 100,000 100.000 250,000 250,000 1,000,000 Funding Source Transfer from General Fund 0 D 0 100,000 100,000 100,000 100,000 1 DO.ODO 250,000 250,000 1,000,000 Total Funding Source D 0 0 100,000 1 DO.ODD 100,000 100.000 100,000 250,000 250,000 1,000.000 Operating Effect Transfer from General Fund D D D 100,000 100,000 100,000 100,000 100,000 250,000 250,000 1,000,000 Total Operating Effect D 0 D 100,000 100,000 100,000 100,000 100.000 250,000 250.000 1,000.000 Define Problem Harnett County's only existing greenway trail is the seven-mile Dunn-Erwin Rail Trail. According to the Parks and Recreation Master Plan, the county is deficient by 26 miles of greenways. With projected population growth, the county will be deficient by 36 miles in 2030. The 2015 Comprehensive Plan and 2017 Parks and Recreation Plan pointed to the need for more county greenways. Greenways are corridors of protected open space that often link nature preserves, parks, schools, and communities together. In 2017 when the Harnett County Parks and Recreation Comprehensive Master Plan was developed, an integrated system of trails and sidewalks was one of the key amenities that continued to be mentioned throughout public meeting. The statistically valid survey that was conducted as part of the Comprehensive Master Plan concluded that a Greenway Trail system was one of the top priorities of the county. The survey also concluded that walking for exercise was the highest program priority for adults and second highest for youth. National standards recommend 0.2 miles of greenway trails per 1,000 residents. Harnett County currently has 0.04 miles of greenway trail per 1,000 residents, which is only one-fifth of the national standard. Greenways are usable by all residents regardless of age, race, gender, or income level and provide direct physical and mental stimulation through physical exertion and engaging nature. Greenways promote healthy living, provide environmental benefits, and preserve nature. Greenways have the opportunity to increase property values and create economic impacts. A housing development in Apex, NC increased the price of the homes adjacent to the greenway by $5,000 and those homes were still the first to sell (Rails to Trails Conservancy: Economic Benefits of Trails and Greenways). Trail networks can also provide alternative transportation links to allow citizens to access parks, schools, and towns/cities without having to drive. A Greenway Master Plan should be the first step in addressing this need. The plan would identify specific greenway corridors. In doing so, it would allow the county to require land reservation or trail construction by developers (in lieu of paying recreation fees). It would also assist the county in determining where greenway connections should go as new developments continue to be built in portions of the County, specifically in northwest Harnett, where greenway connections could be made with Wake County's greenway system. The Parks and Recreation Director is asking for funds for the master plan and a feasibility study to establish costs. Beginning in FY 2021, he is requesting that a capital reserve be established for accumulating funds that could be used for greenway development. The fund would be used to match grants. He is requesting approximately $150,000 to $200,000 per year. The state has estimated that on average greenways cost $1 million per mile to construct. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 21 120219a HCBOC Page221 Greenway Trail Construction Capital Reserve Appropriation Recommended Solution Completing the master plan and setting aside funds for greenway development beginning in FY 2021 is recommended. Actual greenway construction will be contingent on the county receiving matching grant funds. Alternatives New •Do nothing. If nothing is done, the County will continue to fall behind national standards for greenway trails, which provide higher quality of life for residents and have the potential to increase tourism. •Complete the master plan for greenway development, but delay setting aside funding. This action would like cause land prices and development costs to increase in the future. Delaying funding also means the county might not be able to move forward with partnerships with developers and neighboring jurisdictions. •Complete the master plan and begin setting aside funds for greenway development. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 22 120219a HCBOC Page222 Harnett County Resource Center & Library and Department of Social Approved-Contracts Let Services (DSS) Addition Construct a 57,000-square-foot government resource center and library located at 455 McKinney Parkway, Lillfngton. The building will include space for a new Harnett County Public Library, 3,822 square feet of training space, veterans services, administration, finance, legal, human resources, parks and recreation, and board of commissioner's meeting rooms. The project will also include a 10,000-square-foot addition to the existing social services building to house the child support enforcement division that is currently located in rental space in Erwin. This project also consists of major site work to include new access roads and parking areas. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Architectural Design & Construction Ad 1,866,337 592.901 808,002 465,434 0 0 0 0 0 0 1,866,337 Construction 22,463,344 367,021 15,174,279 6,922,044 0 0 0 0 0 0 22,463,344 Contingency 292,552 0 200,000 92,552 0 0 0 0 0 0 292,552 Engineering 141,944 60.159 60,000 21,785 0 0 0 0 0 0 141,944 Financing Costs 390,265 0 390.265 0 0 0 0 0 0 0 390,265 Furnishings & Equipment 1,000,000 0 0 1,000,000 0 0 0 0 0 0 1.000,000 Other Contracted Services 105,000 34,916 42,000 28,084 0 0 0 0 0 0 105.000 Sewer Development Fees 43,056 0 43,056 0 0 0 0 0 0 0 43,056 Total Project Element 26,302,498 1,054,997 16,717,602 8,529,899 0 0 0 0 0 0 26,302.498 Funding Source Bond Premium 3,847,498 0 3,847,498 0 0 0 0 0 0 0 3,847,498 Installment Debt 21.145,000 0 12,615,101 8,529,899 0 0 0 0 0 0 21,145,000 Transfer from General Fund 1,310,000 1,054,997 255,003 0 0 0 0 0 0 0 1,310,000 Total Funding Source 26,302,498 1,054,997 16,717,602 8,529,899 0 0 0 0 0 0 26,302,498 Operating Effect Debt Service 0 0 457,021 2.000,950 1,958,550 1,916,150 1,868,450 1,815.450 1,762,450 1,709.450 13,488,471 Decreased Costs 0 0 0 -34,309 -68.580 -68,580 -68.580 -68.580 -68,580 -68,580 -445,789 Increased Operating Costs 0 0 0 353,771 423.657 444,390 454.769 465,420 476,351 486.436 3,104,794 Total Operating Effect 0 0 457,021 2.320.412 2,313,627 2,291,960 2,254,639 2,212,290 2,170,221 2,127,306 16.147,476 Define Problem Harnett County is one of the fastest growing counties in North Carolina. The County's population has nearly doubled since 1990 and is projected to add another 40,000 residents in the next 20 years. The result is an increased demand for County services and numerous departments are out of space to grow and meet this demand including DSS and the Harnett County Public Library. The County has had to pay to rent space to house certain functions. County departments are also spread out across Lillington and beyond, which makes it inconvenient and frustrating for citizens to navigate and do business with the County. 11/12/2019 Hamett County 2021-2027 Capital Improvements Program Page 23 120219a HCBOC Page223 Harnett County Resource Center & Library and Department of Social Services (DSS) Addition Recommended Solution Approved-Contracts Let Complete this project. This project has been approved for debt-financing through the issuance of Limited Obligation Bonds by the NC Local Government Commission and bonds were sold on September 18, 2019. The building construction was bid in August 2019 and construction of the building is currently underway and expected to be complete in early 2021. The project accomplishes a number of important objectives, including centralizing county functions for improved customer service. Alternatives •As an alternative to building the Resource Center & Library and expanding the existing DSS facility, the County could do nothing and continue renting space, however this would not address the problems described above, and would put the County even further behind in addressing these issues. •Not allowing departments to grow to accommodate increased service demands is another option, however this would put an unattainable workload on existing employees, leading to greater inefficiency, morale issues for staff, and frustration from citizens. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 24 120219a HCBOC Page224 Harnett County Sheriff's 911 Dispatching Software Replacement Approved-No Contracts Upgrade the County's 911 Software to the latest version to improve emergency service dispatch, to continue to receive support from the vendor, and to join the statewide emergency services network. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Software & Implementation 520,000 0 362,728 0 0 0 0 0 0 0 362,728 Software Maintenance 0 0 134,860 0 0 0 0 0 0 0 134.860 Total Project Element 520,000 0 497,588 0 0 0 0 0 0 0 497,588 Funding Source 911 Fund 78,397 0 222,674 0 0 0 0 0 0 0 222.674 Transfer from the Radio System (VIPE 441,603 0 274,914 0 0 0 0 0 0 0 274,914 Total Funding Source 520,000 0 497.588 0 0 0 0 0 0 0 497,588 Operating Effect Increased Operating Costs 0 0 0 0 8,399 8,650 8,910 9.177 9.453 9,736 54,325 Total Operating Effect 0 0 0 0 8.399 8,650 8,910 9.177 9,453 9,736 54,325 Define Problem The existing computer-aided dispatch (CAD) software is out of date. The software does not allow the 911 center to receive videos and pictures sent by text message. The existing system does not accurately track vehicle locations, so that the closest responder can be dispatched. The vendor is no longer adding features or upgrading the existing software. Meanwhile, the state is implementing a new statewide IP network for emergency services, but the existing CAD software is not compatible with the new network. According to the state's website on the project, the new network: "routes 911 calls based on the caller's location, as opposed to the wireless tower that received the 911 calls; delivers text-to-911 in a reliable way with the same priority as a 911 call; delivers video-to-911; provides for 911 call load sharing among PSAPs during emergencies, so that when a storm overloads one PSAP, a neighboring PSAP can automatically receive overflow calls; and provides accurate, reliable, and timely location information for 911 telecommunicators and field responders, especially for wireless and other nomadic 911 callers." Recommended Solution Upgrade the existing software to the latest version to keep data migration, setup and training as simple as possible. Alternatives •Do nothing: Failure to upgrade the software will mean the county cannot meet state and national standards for receiving 911 calls and will not be able to join the statewide network. Since the vendor is no longer upgrading this version of the software, future support may not be available. •Replace the existing software with a new CAD product: While a comprehensive evaluation of CAD systems had not been conducted, switching to an entirely new system will require much more training and implementation services. a time-consuming process. The county would like to join the state network as soon as the new software is implemented. •Upgrade the existing software to the latest version. This alternative is recommended. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 25 120219a HCBOC Page225 Harnett County Sheriff's Detention Center Security Intercom Replacement -----Replace the intercom system at the Harnett County Detention Center, located at 175 Bain St, Lillington. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 Project Element Contingency 0 0 0 6,220 0 0 Furnishings & Equipment 133,560 0 0 124,392 0 0 Total Project Element 133,560 0 0 130,612 0 0 Funding Source Sheriffs Capital Reserve 133,560 0 0 130,612 0 0 Total Funding Source 133,560 0 0 130,612 0 0 Define Problem Approved~No Contracts Year 4: Years: Year 6: Year 7: Project FY 2024 FY 2025 FY 2026 FY 2027 Totals 0 0 0 0 6,220 0 0 0 0 124,392 0 0 0 0 130,612 0 0 0 0 130,612 0 0 0 0 130,612 The existing system, installed when the jail opened in 2009, is nearing the end of life. The manufacturer was sold and the equipment is no longer being made. Replacement parts are difficult to find, though parts have been obtained to date. The intercom system is critical for the Detention Center, as it allows communication to and from the master control station to detention officers and housing units, which is required by state regulations. Recommended Solution Purchase a new intercom system. as requested by the Sheriff's Office in FY 2021, utilizing funds from the Sheriff's Capital Reserve. The reserve has a balance of $422,346 currently, before an additional transfer of $450,000 is made in FY 2020. Alternatives Do nothing. If nothing is done and the system fails, the jail will be without a system critical for its operation. Relation to Other Projects If the Detention Center Housing Unit is approved, this project can be included as part of the equipment cost. It will add approximately $10,000 per year in debt service. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 26 120219a HCBOC Page226 Harnett County Sheriff's Detention Center Video Surveillance System Upgrade Approved-No Contracts Replace the DVRs for the video surveillance system immediately, using funds currently allocated for kitchen equipment and upgrade the remainder of the video surveillance system in the Harnett County Detention Center, in FY 2022. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipment 316,100 0 58,557 0 296,971 0 0 0 0 0 355,528 Total Project Element 316,100 0 58,557 0 296,971 0 0 0 0 0 355,528 Funding Source Sheriffs Capital Reserve 316,100 0 58,557 0 296,971 0 0 0 0 0 355,528 Total Funding Source 316,100 0 58,557 0 296,971 0 0 0 0 0 355,528 Define Problem The detention opened in 2009 with the existing video surveillance system. As it reaches the end of its useful life. the manufacturer no longer supports the system and replacement parts are difficult to find. The DVRs, which record the video. have been failing to the point that no backups are available. The Sheriff's Office is requesting that funds previously allocated for kitchen equipment be moved to this project and DVRs purchased in FY 2020. The upgrade of the remainder of the video surveillance system can occur as previously scheduled in FY 2022. Recommended Solution Replace the DVRs immediately by diverting funds from the kitchen equipment replacement project and replace the remainder of the video surveillance system in FY 2022 using funds from the Sheriffs Capital Reserve. The reserve has a balance of $422,346 before an additional transfer of $450,000, which is scheduled for FY 2020. Alternatives •One alternative is to purchase the DVRs when the entire system is replaced, but this will leave the equipment vulnerable to failure without adequate backups. •Do nothing. Failure to replace the system could result in the video system no longer operating. The system is required by state law and protects the county by providing video in investigating inmate complaints. etc. Relation to Other Projects If the Detention Center Housing Unit is approved, this project can be included as part of the equipment cost. It will add approximately $20,000 per year in debt service. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 27 120219a HCBOC Page227 Harnett County Sheriffs Records Software Replacement Approved-No Contracts Replace the records management system (RMS) software. The existing software has not been upgraded in the past 20 years. The software includes incident and investigation reports and management of evidence for the Sheriff's Office. An upgrade will enable deputies to access the software in the field through the use of smart phones and tablets and provide other efficiencies for the office. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipment 0 0 3,937 0 0 0 0 0 0 0 3,937 Software Implementation 0 0 133,195 0 0 0 0 0 0 0 133,195 Software License 133,900 0 2,500 0 0 0 0 0 0 0 2.500 Total Project Element 133,900 0 139,632 0 0 0 0 0 0 0 139,632 Funding Source Asset Forfeiture Funds 133,900 0 139,632 0 0 0 0 0 0 0 139,632 Total Funding Source 133,900 0 139,632 0 0 0 0 0 0 0 139,632 Define Problem The existing software has not been upgraded or replaced in the past 20 years. The software includes incident and investigation reports and management of evidence for the Sheriff's Office. An upgrade will enable deputies to access the software in the field through the use of smart phones and tablets and provide other efficiencies for the office. Recommended Solution Upgrade the existing software to a new version. The Board of Commissioners has approved a budget amendment for the Sheriff to use asset forfeiture funds to cover the cost of the software. It is scheduled to be upgraded in FY 2020. Alternatives The Sheriff's Office has evaluated other software products and determined that remaining with the current vendor is much more cost effective. Aside from the age of the software, it has worked well. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 28 120219a HCBOC Page228 Harnett Regional Jetport (HRJ) Airfield Lighting Rehabilitation New Rehabilitate the airfield lighting system and relocate the automated weather observing system (AWOS) at HRJ, located at 615 Airport Road, Erwin, by installing conduit and replacing all lighting to ensure flight safety. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 0 0 1,804.668 0 0 0 0 0 0 0 1,804,668 Contingency 0 0 108,000 0 0 0 0 0 0 0 108,000 Design, Engineering & Construction Ad 0 0 180,000 0 0 0 0 0 0 0 180,000 Total Project Element 0 0 2,092,668 0 0 0 0 0 0 0 2,092,668 Funding Source Article 44 Capital Reserve 0 0 191,267 0 0 0 0 0 0 0 191,267 Grants. Gifts. Etc. 0 0 1,901,401 0 0 0 0 0 0 0 1,901,401 Total Funding Source 0 0 2,092,668 0 0 0 0 0 0 0 2.092,668 Define Problem HRJ's lighting system was installed 25 to 30 years ago. The lighting was laid directly in the ground without being protected by conduit, which is not the standard for how lighting should be installed. This poor construction has caused numerous problems with shorts and open circuits. The lighting system is vulnerable to weather conditions and ant infestations. Systems such as the precision approach path indicator, runway end identifier, signage, and runway and taxiway lamps help ensure safety of aircraft and should be replaced at regular intervals. Over the past year, more than 10 repairs have been performed. While the repairs are not costly, outages impact the safety of the 50,500 flights each year. The Division of Aviation has provided design for the new system at no cost to the county and is willing to fund 90% of the construction cost. As part of this work, DOT is paying to move the AWOS, which also requires additional electrical, radio and fiber infrastructure. Recommended Solution Utilizing the Division of Aviation's design and funding, replace the lighting systems and properly install up-to-date LED lighting that will ensure safe lighting for flights into and out of the airport and be more energy efficient. Alternatives •Do nothing. Without the lighting rehabilitation project, the county's airport will be vulnerable to the poor installation of the lighting system and not able to ensure critical safety features functions reliably. •Replace the lighting system using Division of Aviation funding. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 29 120219a HCBOC Page229 Harnett Regional Jetport (HRJ) Apron Expansion Approved-No Contracts Construct a 144,000-square-foot expansion of the HRJ Apron, located at 615 Airport Road, Erwin to provide adequate space for parking, loading, unloading, and refueling of larger planes used by many businesses. The expansion will allow larger aircraft to land at the jetport and access services safely. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 2,800,000 0 0 2,991,230 0 0 0 0 0 0 2,991,230 Contingency 0 0 0 149,562 0 0 0 0 0 0 149,562 Design, Engineering & Construction Ad 296,500 0 296,500 282,977 0 0 0 0 0 0 579,477 Total Project Element 3,096.500 0 296,500 3.423,769 0 0 0 0 0 0 3.720.269 Funding Source Article 44 Capital Reserve 309,650 0 29.650 342,377 0 0 0 0 0 0 372.027 Grants, Gifts. Etc. 2,786,850 0 266,850 3,081,392 0 0 0 0 0 0 3,348,242 Total Funding Source 3,096,500 0 296.500 3,423,769 0 0 0 0 0 0 3.720,269 Define Problem Larger aircraft are landing at HRJ and need additional space to move safely between fuel farms, the terminal, maintenance and other airport services. The size and configuration of HRJ's existing apron (also referred to as ramp or tarmac) prohibits these aircraft from maneuvering safely and efficiently. In some instances, when larger planes park in the apron area, they block other aircraft, including the SBl's Air Wing Division, from accessing the runway and other airport services. In addition, the apron was not originally designed to accommodate these heavier aircraft. Finally, new Federal Aviation Administration requirements do not allow direct access between the apron and runway, which is currently the situation at HRJ. A 2005 master plan for the airport called for airport improvements, including expanding the apron. An attractive airport that is easy to use can increase flights and might increase the number of aircraft stored in airport hangers, leading to increased tax value. Recommended Solution On existing property owned by the county, expand the apron area to 144,000 square feet and strengthen the existing pavement with concrete or stronger asphalt. This creates area for an additional nine parking spaces and better passenger loading and unloading. The project also connects the taxiways to the service area, bringing the county into compliance with FAA requirements, and expand the size of SBl's parking area. Utilize funding from the Division of Aviation, which provides 90% of design and construction costs. Alternatives •Do nothing. Failure to expand and strengthen the apron will mean the larger aircraft will continue to have difficult maneuvering in HRJ and traffic issues in and around the apron will continue. •Expand and strengthen the apron. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 30 120219a HCBOC Page230 Neills Creek Tennis Courts and Western Harnett Middle School Baseball and Softball Fields Lighting Approved-Contracts Let Install lighting at the Neills Creek Park Tennis Courts, located at 2533 Harnett Central Road, Angier, and on the baseball and softball fields at Barbecue Creek Park, located at Western Harnett Middle School, 11139 NC Highway 27 West, Lillington. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 480,600 0 411.000 0 0 0 0 0 0 0 411,000 Total Project Element 480,600 0 411,000 0 0 0 0 0 0 0 411,000 Funding Source General Obligation Bond Proceeds 480,600 0 411,000 0 0 0 0 0 0 0 411,000 Total Funding Source 480,600 0 411,000 0 0 0 0 0 0 0 411,000 Operating Effect Increased Operating Costs 0 0 3,500 7.210 7.426 7,649 7,879 8,115 8.358 8,609 58,746 Increased Revenue 0 0 -425 -850 -850 -850 -850 -850 -850 -850 -6,375 Total Operating Effect 0 0 3,075 6,360 6,576 6,799 7,029 7,265 7,508 7,759 52,371 Define Problem The Western Harnett Youth Recreation (WHYR) program, with which the county contracts to provide youth sports, has to use multiple locations because of the growth in its participants and limited facilities at the county's Barbecue Creek Park. Having to operate in multiple locations makes it difficult for WHYR to supervise and maintain fields. WHYR serves south and west Harnett and is by far the largest sports provide in the county. The county's two baseball/softball and multi-purpose fields are already lit. Western Harnett Middle School's two fields, located are on the same campus as Barbecue Creek Park, are not. The Neills Creek Park Tennis Courts were relocated due to poor sub-base and water damage. The existing lights were unsafe and unreliable. Because of their condition, they could not be relocated to the new tennis courts. Recommended Solution Install the sport lights in FY 2020 to give more access to these facilities by WHYR and other groups. With the lighting of the school's fields, WHYR would have a centralized site from which to run its programs, making its supervision and field maintenance activities more efficient. Because the project provides lighting of school athletic facilities, general obligation bond proceeds can be used to fund them. Alternatives •Do nothing. If nothing is done, the facilities will be limited to use only during daylight hours. Because the facilities are located on school grounds, it severely limits the hours they can be used by WHYR and other groups. •Install the lights now using leftover school general obligation bond funds. Current Stage of Project A contract for the lighting and installation was signed in July 2019. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 31 120219a HCBOC Page231 Northwest Harnett Emergency Radio Tower Replacement Approved-No Contracts Construct a new emergency radio communications tower at 1979 Oakridge River Road Fuquay-Varina in partnership with the NC State Highway Patrol. Remove the existing tower at 130 Oakridge River Road, Fuquay-Varina and restore the land. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 475.000 0 475,000 0 0 0 0 0 0 0 475.000 Contingency 100,000 0 100,000 0 0 0 0 0 0 0 100.000 Design, Engineering & Construction Ad 185,000 0 185,000 0 0 0 0 0 0 0 185.000 Furnishings & Equipment 115,000 0 115,000 0 0 0 0 0 0 0 115,000 Land 43,992 43,992 0 0 0 0 0 0 0 0 43,992 Total Project Element 918,992 43,992 875,000 0 0 0 0 0 0 0 918,992 Funding Source Transfer from the Radio System (YIPE 918,992 43,992 875,000 0 0 0 0 0 0 0 918,992 Total Funding Source 918,992 43,992 875,000 0 0 0 0 0 0 0 918,992 Operating Effect Decreased Costs 0 0 0 -20.000 -20,000 -20,000 -20,000 -20.000 -20.000 -20,000 -140,000 Total Operating Effect 0 0 0 -20.000 -20,000 -20.000 -20.000 -20,000 -20,000 -20,000 -140,000 Define Problem The existing radio tower located at 130 Oakridge River Road, Fuquay-Varina, is located on leased land. The tower is old and in poor condition. When the county attempted to renew the land lease, the property owners refused to renew at first. then proposed more than doubling the rent, and then increasing the rent 5% each year. In addition, the property owners wanted to place additional requirements and restrictions on the county's use of the property, such as removing a light pole from their pasture and run wiring underground, maintaining the area outside of the county's fenced area, increasing the rent if the county subleased tower space to a third party, and tying the property owner's electric fence to the county generator .. After attempting to resolve the situations for more than a year, the county decided to move the tower and co-locate it on property purchased for a solid waste convenience site and park, located at 1979 Oakridge River Road. The new property allows the tower to be built at a higher elevation and improves coverage for emergency responders. Recommended Solution Construct a 380-foot tower with backup generator at 1979 Oakridge River Road on property owned by Harnett County. Also construct a 228-square-foot building to house the emergency radio equipment and gravel parking area, and fence the site. Demolish the existing tower at 130 Oakridge River Road and restore the property to its previous condition. Alternatives The county could condemn the property on which the existing tower sits. The condemnation process provides a process that helps determine the fair market value of the property. This alternative does not lead to better coverage or resolve issues with the poor condition of the existing tower. Current Stage of Project The tower is being designed by NC Highway Patrol, which will also bid the project. The goal is to have the tower constructed prior to June 30, 2020, when the lease for the land ends. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 32 120219a HCBOC Page232 Parks Capital Reserve Appropriations Approved-No Contracts Continue $200,000 annual appropriations to the Parks Fund. Funds are used for small projects at existing parks and for development of new parks and facilities. The funding allows many projects to be completed by county staff at a lower cost than if contracted. Funding will support the development of Patriots Park, Shawtown Community Park, Northwest Hamett Park, water access sites, and the Benhaven Community Park. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Transfer to Capital Reserve 1,400,000 750,000 200,000 200,000 200,000 200,000 200,000 200.000 200,000 200,000 2,350,000 Total Project Element 1,400.000 750,000 200,000 200,000 200.000 200,000 200.000 200,000 200,000 200,000 2,350,000 Funding Source Transfer from General Fund 1,400,000 750,000 200,000 200,000 200,000 200.000 200,000 200,000 200,000 200,000 2,350,000 Total Funding Source 1.400.000 750,000 200,000 200,000 200,000 200,000 200,000 200.000 200,000 200,000 2,350,000 Operating Effect Transfer from General Fund 0 750,000 200,000 200,000 200.000 200.000 200,000 200,000 200.000 200,000 2,350,000 Total Operating Effect 0 750,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,350,000 Define Problem Harnett County is deficient in parks and recreation facilities throughout the county. A funding source for the parks listed above is needed. Utilizing the Parks Fund, Parks and Recreation staff is able to complete much of the work in-house at a savings to the county. Recommended Solution Continue annual funding of the Parks Fund to attow for small projects throughout the county. Alternatives •Do nothing. If nothing is done, the parks listed above wilt not be constructed unless other funding sources are identified. •Seek PARTF and other large grants to build one park at a time. While this option allows one park to be completed every five to seven years, it does not address constructing needed and promised facilities at alt of the parks currently owned by Harnett County. In other words, funding will be focused on one park at a time, white others will not be developed in the short-term and must wait their turn for grant funding. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 33 120219a HCBOC Page233 Patriots Park Development (Current and Future Phases) Approved-Contracts Let Develop Patriots Park, located on Ponderosa Road in the Johnsonville community. The site is adjacent to the Ponderosa Convenience Center, located at 721 Ponderosa Road. Park amenities will include two open ball fields with backstops, and walking trail. A future phase will include a picnic shelter and playground. Project Budget Prior to Current Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 0 0 325,000 0 0 0 0 0 0 0 325,000 Design. Engineering & Construction Ad 0 0 10,000 0 0 0 0 0 0 0 10,000 Furnishings & Equipment 0 0 12.000 0 0 0 0 0 0 0 12,000 Total Project Element 0 0 347,000 0 0 0 0 0 0 0 347,000 Funding Source Parks Capital Reserve 0 0 347,000 0 0 0 0 0 0 0 347,000 Total Funding Source 0 0 347,000 0 0 0 0 0 0 0 347,000 Operating Effect Increased Operating Costs 0 0 0 34,969 46,949 37,548 90,269 68,984 82,079 71,513 432,311 Total Operating Effect 0 0 0 34,969 46.949 37,548 90,269 68,984 82,079 71,513 432,311 Define Problem Harnett County owns 18 acres on Ponderosa Road and constructed a convenience center on the property in 2018. During community meetings held to review the convenience center site, residents indicated the strong desire to have a park co-located on the property if the convenience center was constructed. The site is located in the southwestern part of the county where there are no existing parks or recreation facilities. Work is already underway by Parks and Recreation to develop the seven acres that are not in wetlands. An entrance road and ball fields are currently being constructed and will be available to the community for use by the end of 2019. A future phase includes a picnic shelter and playground and will cost approximately $60,000. Both phases will be funded from the Parks Fund. The county did not seek grant funding because of the relatively low cost and the fact an existing PARTF project (Government Complex Park) is being constructed at the same time. Recommended Solution Utilizing the Parks Fund, continue development of the park's entrance road and ball fields, which should be complete by the end of 2019. Construct the picnic shelter and playground when funding permits. Alternatives •Do nothing. If nothing is done, the county will not fulfill its obligation to the residents in the area to build a park on the convenience center property. The area will continue to be underserved by recreation facilities. •Utilizing the Parks Fund, continue development of the park's entrance road and ball fields, which should be complete by the end of 2019. Construct the picnic shelter and playground when funding permits. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 34 120219a HCBOC Page234 Patriots Park Development (Current and Future Phases) Approved-Contracts Let Relation to Other Projects Since the project will be developed as funding from the Park Reserve is available, all parks funded in this way are competing for the same small amount of funding. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 35 120219a HCBOC Page235 Public Library Radio Frequency Identification (RFID) Installation New Install and implement RFID technology and equipment at the newly constructed Harnett County Public Library and Resource Center located at 455 McKinney Parkway, Lillington, to allow patron self-checkout, better theft and inventory control, and better utilization of library staff for increased programming and information needs. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & Equipmen1 0 0 0 110,712 0 0 0 0 0 0 110.712 Other Contracted Services 0 0 0 2,572 0 0 0 0 0 0 2.572 Software & Implementation 0 0 0 26,720 0 0 0 0 0 0 26.720 Supplies 0 0 0 13,849 0 0 0 0 0 0 13,849 Total Project Element 0 0 0 153,853 0 0 0 0 0 0 153.853 Funding Source Capi1al Reserves 0 0 0 38,463 0 0 0 0 0 0 38.463 Gran1s, Gifts, Etc. 0 0 0 115.390 0 0 0 0 0 0 115,390 Total Funding Source 0 0 0 153,853 0 0 0 0 0 0 153,853 Operating Effect Decreased Cos1s 0 0 0 -18.427 0 0 0 0 0 0 -18.427 Increased Opera1ing Costs 0 0 0 0 14,504 14,939 15.387 15.849 16,324 16,814 93,817 Transfer from General Fund 0 0 0 38,463 0 0 0 0 0 0 38.463 Total Operating Effect 0 0 0 20,036 14,504 14,939 15,387 15,849 16,324 16,814 113,853 Define Problem During FY 2018-19 the Harnett County Public hosted 887 in-house programs with 10,807 attendees. These figures demonstrate a 19% increase in the number of in-house library programs and a 10% increase in program attendance over FY 2017-18. The changing role of public libraries, coupled with an increased number of residents seeking programming, constitutes a shift in focus from service desk transactions to hands-on training, programming, and other staff-provided learning opportunities. Programs fill up quickly resulting in tong wait-lists and the unfortunate practice of denying services. Increasing the number of programs would require additional staff time. Library staff designated to provide programs have reached the limits of their ability to add programs. Often staff members work on scheduled days off and accrue compensatory time beyond what is acceptable. Without additional staff, the library will not be able to keep up with the increasing need and demand for additional programs. The limited number of circulation employees often results in longer wait times for patrons with reference questions or requesting assistance with computer related issues, public office equipment (copier, scanner, fax, etc.), and the print management station. This often leads to customer and staff frustration. Recommended Solution Utilizing a Library Services and Technology Act (LSTA) grant available through NC Libraries, purchase and implement RFID and self-check technology. This technology will allow library staff to shift time from checking out materials and managing the collection to meeting the demand for increased programming, solving users' more complex information requests, and assisting with technology-related needs. RFID is recommended over other solutions because of long-term cost-savings. Other benefits of RFID implementation include: 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 36 120219a HCBOC Page236 Public Library Radio Frequency Identification (RFID) Installation •Enhanced customer experience and privacy with self-service options •Improved circulation efficiency with the capability to check in and process multiple items at one time •Improved accuracy of inventory through RFID's inventory control features •Improved security of library materials Alternatives New •Hire an additional full-time Library Program Specialist to meet the demand for additional programming and patron assistance at a cost of $29,573 plus benefits annually. The salary and benefits cost over 10 years is estimated at $493,417. •Hire two additional part-time Library Program Specialists to meet the demand for additional programming and patron assistance at a cost of $42,857 annually. The salary and benefits cost over 10 years is estimated at $552.426. •Implement RFID and self-check technology that will allow staff time to plan and implement additional programs and reduce wait times at the circulation desk to free staff to focus on more complex information and technology needs. •Do nothing and continue to frustrate and disappoint Harnett County residents that are denied participation in library hosted-programs and less-than-optimal customer service. Relation to Other Projects Implementing RFID requires that library materials are tagged with a special sensor encoded with data. As part of the move to the Harnett Resource Center and Library, the existing collection will be weeded, packed and moved. As each item is being handled, it can also be tagged at the same time resulting in staff time saved. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 37 120219a HCBOC Page237 Sheriff Capital Reserve Approved~No Contracts Continue annual contributions of $450,000 to the capital reserve fund established for the Sheriff. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Transfer to Capital Reserve 0 1,844,489 450,000 450,000 450,000 450,000 450,000 450.000 450,000 450,000 5,444,489 Total Project Element 0 1,844.489 450,000 450,000 450,000 450,000 450,000 450.000 450,000 450,000 5,444,489 Funding Source Transfer from General Fund 0 1,844,489 450,000 450.000 450,000 450,000 450,000 450,000 450.000 450,000 5,444,489 Total Funding Source 0 1,844,489 450,000 450.000 450,000 450,000 450,000 450,000 450,000 450,000 5,444,489 11/12/2019 Harnet1 County 2021-2027 Capital Improvements Program Page 38 120219a HCBOC Page238 Social Services and Commons Area Roof Replacement Approved-No Contracts Replace roof and repair the supporting structure for the Social Services and Commons buildings, located at 311 W Cornelius Harnett Boulevard, Lillington. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Construction 0 0 0 0 285,600 0 0 0 0 0 285.600 Contingency 0 0 0 0 14,280 0 0 0 0 0 14,280 Total Project Element 0 0 0 0 299,880 0 0 0 0 0 299,880 Funding Source Capital Reserves 0 0 0 0 299,880 0 0 0 0 0 299,880 Total Funding Source 0 0 0 0 299,880 0 0 0 0 0 299,880 Operating Effect Transfer from General Fund 0 0 0 149,940 149,940 0 0 0 0 0 299,880 Total Operating Effect 0 0 0 149,940 149,940 0 0 0 0 0 299,880 Define Problem The existing roof is original to the buildings, which opened in 1996. The roof is out of warranty. When the Health Department roof began leaking, the Facilities Department also had the Social Services/Commons roof assessed because it was constructed at the same time. At the time, the roofing contractor estimated that the Social Services/Commons roof had only three to five years of remaining life before it would need to be replaced. The Health Department roof was replaced in FY 2019. Recommended Solution Replace the roof, repair the support structure as needed and require a 20-year labor and material warranty from the roofing contractor. Alternatives •Do nothing. Failing to replace the roof within the recommended timeframe risks the onset of leaks and possible major damage to the interior of the building. •Replace the roof within the timeframe recommended by the roofing contractor. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 39 120219a HCBOC Page239 Tax Reappraisal Fund Approved-Contracts Let Set aside funds annually for the next revaluation of real property, slated for FY 2022, in accordance with state law. The cost of the reappraisal will be $2,070,000. State law requires that funds be set aside annually to cover the cost, requiring a contribution of $690,000 for three years. Current Project Budget Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Transfer to Reappraisal Fund 2,070,000 0 690,000 690,000 690,000 0 0 0 0 0 2,070,000 Total Project Element 2,070,000 0 690,000 690,000 690,000 0 0 0 0 0 2,070,000 Funding Source Transfer from General Fund 2,070,000 0 690,000 690,000 690,000 0 0 0 0 0 2,070,000 Total Funding Source 2,070,000 0 690,000 690,000 690,000 0 0 0 0 0 2,070,000 Operating Effect Transfer from General Fund 0 0 690,000 690,000 690,000 0 0 0 0 0 2,070,000 Total Operating Effect 0 0 690.000 690,000 690,000 0 0 0 0 0 2,070,000 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 40 120219a HCBOC Page240 Solid Waste Fund Projects 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 41 120219a HCBOC Page241 Solid Waste Bulldozer Replacement New Replace a 2005 medium-sized bulldozer used daily in the Dunn-Erwin landfill located at 449 Daniels Road, Dunn. Project Budget Current Prior to Year: Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Project Budget FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Project Element Furnishings & EQuipment 0 0 400,000 0 0 0 0 0 0 0 400,000 Total Project Element 0 0 400,000 0 0 0 0 0 0 0 400,000 Funding Source Solid Waste Fund Balance 0 0 204,262 0 0 0 0 0 0 0 204,262 Solid Waste Operating Budget 0 0 195,738 0 0 0 0 0 0 0 195,738 Total Funding Source 0 0 400,000 0 0 0 0 0 0 0 400,000 Operating Effect Decreased Costs 0 0 0 -18,000 -18,000 0 0 0 0 0 -36.000 Solid Waste Fund Balance 0 0 204,262 0 0 0 0 0 0 0 204,262 Solid Waste Operating Budget 0 0 195,738 0 0 0 0 0 0 0 195,738 Total Operating Effect 0 0 400,000 -18,000 -18,000 0 0 0 0 0 364,000 Define Problem The existing bulldozer is used daily at the landfill for pushing and covering construction and demolition and land clearing and inert debris. The current piece of equipment is 14 years old with more than 11,000 hours on it and is continually breaking down. The industry standard is that equipment be replaced at or before 10 years of use. This equipment is subjected daily to rough conditions and in a harsh environment. Downtime and repair costs are escalating as a result of the equipment's age and condition. Without the equipment, landfill operations will be impacted, as well as the ability to comply with state regulations. Recommended Solution Purchase a new bulldozer in FY 2021 through state contract or from a vendor more competitive than state contract pricing. Alternatives Do nothing. Not replacing this piece of equipment will mean increasing downtime and repair costs. The county may not be able to comply with state regulations requiring that waste materials be pushed. packed and covered on certain schedule. If equipment is not available or inoperable, staff cannot comply with this required schedule. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 42 120219a HCBOC Page242 Future Projects Currently, the county lacks sufficient data, revenue, or debt capacity to schedule these projects. If these issues are resolved, these projects may appear in a future CIP. Anderson Creek Park Development (Future Phases) Future Continue to develop the remaining 800 acres of Anderson Creek Park, located at 1491 Nursery Rd, Lillington, as a large passive recreation park. The remaining elements to be constructed include equestrian trails, additional walking trails, mountain biking trails, additional parking, additional picnic shelters, another playground, interpretive signage, and a staff building. Utilizing a state grant, the county has already developed 200 acres, including a roadway, disc golf, picnic shelter, playground, three miles of walking trails, nature education, and a pond overlook. Define Problem The county purchased this tract from Harnett Forward Together Committee (HFTC) and is paying itself back through recreation fees collected in the area. The deed contained a restriction that part of the tract must be used for a park. Fifty acres of the site has been reserved for a future school site and NC Forestry may locate here as well. The size of the park is conducive to constructing a regional park that will attract visitors from surrounding counties and could be an economic development driver. The Statewide Comprehensive Outdoor Recreation Plan (SCORP) is a detailed analysis of the supply and demand of outdoor recreation resources in NC. SCORP ranks NC counties by current supply of recreation resources and provides a benchmark for how county recreational resources rank among the 100 counties. Harnett County currently ranks 90th in picnic shelters, 88th in playgrounds, and 51 st in trail miles (this high only because of Raven Rock State Park). The mountain biking trails would be the first in the County except the trails recently opened at Raven Rock State Park. In 2009 a master plan of the park was developed calling for the existing and future amenities. Recommended Solution Currently, the county lacks funding to move ahead with the full future phase of the project. Until that is addressed, we should continue to make improvements using the park fund. Alternatives •Do nothing. If nothing is done, the county will continue to operate the park as is, but it will likely not have the regional draw that would generate economic development. •Fund improvements incrementally through the parks fund. This approach will avoid the necessity of applying for grant funds, but it will take a long time to complete the amenities identified for this park, especially considering the numerous other parks currently in development in the county. •Apply for PARTF funding from the state for a 50% match. The option provides the most resources, but may not be the best use of PARTF. as there are higher priorities for constructing parks (this is 7 out of 10 for the department). Relation to Other Projects Since the project will be developed as funding from the Park Reserve is available, all parks funded in this way are competing for the same small amount of funding. Boone Trail Park Development Future Develop a park at the site of the old Boone Trail School, located at 8500 Old Highway 421, Lillington, that was destroyed by fire in May 2019. An initial concept plan developed with input from the community included a renovated entrance drive, memorial walkway, amphitheater, basketball court, picnic shelter, restroom facility, and walking trail. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 43 120219a HCBOC Page243 Define Problem Harnett County owns 13.5 acres where the old Boone Trail School was located before being destroyed by fire. Of that amount, 6.25 acres have already been developed into the Boone Trail Community Center & Library, and include active park amenities. The community would like the remaining portion of the property developed into a park. The burned building was demolished in September 2019. The additional land will increase the park acreage per citizen of Harnett County. The planned amphitheater will be the first for Harnett County Parks & Recreation. The amphitheater will also increase the programming opportunities within the department. The Statewide Comprehensive Outdoor Recreation Plan (SCORP) is a detailed analysis of the supply and demand of outdoor recreation resources in NC. SCORP ranks NC counties by current supply of recreation resources and provides a benchmark for how county recreational resources rank among the 100 counties. Harnett County currently ranks 9oth in picnic shelters and 79th in athletic courts. Recommended Solution Using Parks Fund to build the park over multiple phases is recommended. Preliminary discussions with the community have taken place and there is interest in community-driven fundraising efforts to offset some of the costs of the park or to provide additional amenities not included in the County's scope. No cost estimate has been obtained to construct all amenities. Alternatives •Do nothing. This option fails to address the community's interest in seeing the old school site repurposed for community needs. •Renovate the old school entrance drive that was preserved during the schoot renovation and save the park development for future development. Again this fails to address the community's interest. •Construct the amenities listed above with proceeds from the Parks Fund in phases as funds are available. Relation to Other Projects Since the project will be developed as funding from the Park Reserve is available, all parks funded in this way are competing for the same small amount of funding. The park would be adjacent to the Boone Trail Community Center and Library, which opened in the spring of 2017. Courthouse Shell-Space Upfit Future Develop a building program and cost estimate to finish approximately 12,150 square feet of shell space in the Harnett County Courthouse, located at 301 W Cornelius Harnett Blvd, Lillington to meet Clerk of Court and other court-related needs. Define Problem When the courthouse was originally constructed, 12,150 square feet of the third floor was constructed as ''shell space," meaning the space is not finished and could be renovated to accommodate a range of needs. The original plans called for this space to be future courtrooms. Recommended Solution Because the county has not systematically assessed the needs, the third alternative is recommended. The General Services Director estimates this study would cost approximately $30,000. Alternatives •Do nothing: The space could remain as is for the foreseeable future, but this would not address court system needs. •Finish the space for courtrooms: While this meets the original intent for the space, there may be other court needs that have not been presented to the county. •Assess all possible court needs, identify the most critical, and hire an architect to develop a building program and cost estimate. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 44 120219a HCBOC Page244 Fleet Maintenance Facility Improvement or Replacement Future Improve or replace the county's garage, located at 1100 E McNeil! St, Lillington, to provide an adequate space for maintaining the county's increasing fleet, improve wait times for vehicle service, and ensure the safety of garage staff. Define Problem The County's existing maintenance garage is too small and is inefficiently designed for increased service demands. Three bays limit the number of vehicles that can be serviced at one time. The bays are too small to service some of the county's larger vehicles. Lift and other equipment have aged beyond the recommended useful life. Some improvements to the facility have been made in house. including improving the office areas and restrooms and moving the used oil collection tank outside. Recommended Solution Either work with Harnett County Schools or move forward separately to hire an architect to develop a building scope and cost estimate. Alternatives •First, the existing facility could be expanded. It has only three bays, which are frequently full. Expanding the facility with additional bays would allow staff to accommodate increased demand for service from County departments, improve efficiency and reduce wait times for departments waiting on vehicle repairs. •Second, there may be opportunities for the County to partner with Harnett County Schools in the future on a new joint Fleet Maintenance Facility, which would allow for greater efficiencies and economies of scale through a collocated facility for both entities. Both of these options would require architectural services to determine scope and cost. •Replace only the lifts and other aging equipment. This option does not address the size of the bays or the need to increase the number of bays to service a growing fleet. •Finally, do nothing. If nothing is done, the none of the concerns mentioned above will be addressed. Harnett County Sheriff's Detention Center Housing Unit Addition Future Project Description: Construct a 55-bed, 8,750-square-foot addition and recreation yard at the Harnett County Detention Center, located at 175 Bain St, Lillington, to continue to receive revenue from housing non-local inmates for other entities. Define Problem The county's detention center opened in 2009. The detention center's core facilities and the building site were master planned to add three housing units in the future. For the last two years, the Harnett County Sheriff's Office has submitted as a capital project the construction of one of the housing units. The stated intent of building the housing unit now is to provide secure detention for non-county inmates, such as federal and state prisoners. for which the county receives reimbursement at daily rates of $45 per day for state inmates and $60 for federal. The local jail population is increasing and, it is projected that by FY 2030 the county will no longer have capacity for non-county inmates. In the meantime, this funding source will decline each year as non-county inmates are displaced by local inmates. Because this funding source generates substantial revenue for the county--between $429,443 in FY 2016 and $1,205,967 in FY 2013--the Sheriff's Office has proposed that building the housing unit will help ensure the county continues to receive this revenue. The Sheriff's Office has also been encouraged by the US Marshal to house federal inmates. The revenue on the existing jail will decline as the county's local inmates displace beds currently used for outside inmates. This revenue loss is inevitable. Whether the county builds an additional housing unit is a self-<:ontained decision and has no effect on this revenue loss. The question is whether the new housing unit will generate sufficient revenue to pay the operating and capital costs of the new unit. Recommended Solution 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 45 120219a HCBOC Page245 The county is not in the financial position to build a housing unit that will not be needed for more than 10 years. This would tie up debt capacity that is needed for schools and other county needs. The federal government will not give any guarantees about its usage of the housing unit, leaving the county to assume the financial risk for debt and fixed operating costs. Simply, the risk far outweighs the reward. Alternatives •Do nothing. If nothing is done, the county will need to begin planning a new jail to open in the early 2030s. In the meantime, the county will avoid the operating cost of the new pod, but will not have revenue to offset the capital cost of the pod in 11 + years. •Five scenarios were developed and based on assumptions about the mix of outside inmates and the occupancy rate of the housing unit. The occupancy rate means of the number of beds available to house outside inmates, what percentage of them are actually used. In the past six years, the occupancy rate has been as low as 33% and as high as 95%. Often these rates are tied to federal policy and the relationship the county has with the US Marshal's Office. During the Obama administration, the occupancy rates were lower than during the Trump administration. With a presidential election occurring in 2020, federal policy could change again, and in fact, could change two more times before the projected revenue is collected. Likewise, the current US Marshal, who has ties to Harnett County, could be replaced with someone with less interest in housing federal inmates here. If the housing unit is constructed, the county will lose (meaning spend more than the revenue generated) between $2.3 million and $7.2 million during the 10 year period, depending on the assumptions made. In the scenario supported by the Sheriff's Office, the county would spend $3.6 million more than it takes in. •An argument can be made that if revenue covers operating cost, any excess can help offset the capital expense for a housing unit it will need in the future. In two of the scenarios, the housing unit would not cover the operating costs. In the scenario supported by the Sheriffs Office, the county would generate $594,297 to cover debt service of $4.2M. Relation to Other Projects If the housing unit project is approved, replacement of the intercom system and video surveillance system could be included as equipment costs and the requested generator could also be added to the project. Harnett County Sheriff's Detention Center Kitchen and Laundry Equipment Replacement Future Replace kitchen and laundry equipment and water heaters in the Harnett County Detention Center, located at 175 Bain St, Lillington, which are nearing the end of their useful life. Define Problem The Harnett County Detention Center opened in 2009 and some equipment is nearing the end of its useful life. The Sheriff's Office has replaced a kettle and steamer to date. The vendor is not able to cover some of the equipment under its maintenance agreement. As of the development of the CIP, no cost estimate has been obtained for the equipment that needs to be replaced. Departments were notified on August 19 that cost estimates would be required for all funded projects. Recommended Solution Once cost estimates have been obtained, schedule the project in a future CIP. Harnett County Sheriffs Office and Detention Center Generator Purchase and Installation Future Purchase and install a 1,000 KW generator at the Harnett County Sheriffs Office and Detention Center, located at 175 Bain St, Lillington to provide sufficient backup power to run the building systems, including HVAC. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 46 120219a HCBOC Page246 Define Problem The existing 400 KW generator runs only the 911 Center fully. It operates life and safety equipment in the Sheriff's Office and Detention Center, but does not run the heating and air conditioning systems. When the Detention Center loses power, humidity levels rise in the housing units, sometimes to the point where the fire alarm is activated. After power is restored, it may take several hours to reduce humidity levels. Even if power is off only for a short time, the HVAC systems returns to default systems and maintenance staff has to reset them. The state requires the jail to have a plan for moving inmates to other facilities if the power loss is for a sustained period of time and temperatures dip below 68 degrees in the winter and rise above 85 degrees in the summer. To date, no inmates have been moved for this issue. Recommended Solution The Manager recommends evaluating the purchase of the second generator before moving ahead with this project. Alternatives •Do nothing. If nothing is done, the Detention Center will continue to see problems with the HVAC system not running during periods power is off. Humidity levels and the reset of the HVAC system to default controls will continue to present operational challenges. •Purchase a larger, 1,000 KW generator to run all systems in the Detention Center, Sheriffs Office, and 911 Center. The Sheriffs Office has obtained a quote for purchase and installation of the generator, at a cost of $385,960. •Purchase a second, smaller generator. Purchasing a second generator to run the HVAC system would resolve the issue. A second generator would be much less costly and likely less to install. A second generator would also provide redundancy in case one of the generator fails. The only down side would be that maintaining a second generator would be slightly more costly, estimated at around $550 per year. Relation to other Projects If the housing unit project is approved. the generator could be purchased as part of that project. It would add approximately $30,000 per year in debt service costs. Harnett Regional Jetport (HRJ) New Terminal Construction Future Construct a 6,969-square-foot airport terminal at HRJ, located at 615 Airport Road, Erwin, to create a "Gateway to Harnett," improve jetport services, and provide office space for Economic Development. Define Problem Built in 1983 the existing 2,200-square-foot terminal is outdated and its waiting area, meeting facilities and pilot spaces are inadequate. Office space for airport staff is also lacking. The terminal's antiquated design does not portray the county and its economic development efforts in the best light. A 2018 ITRE research study showed the airport has a $176.5 million annual economic impact. Because of its demonstrated connection and potential impact, co-location of the county's Economic Development offices is desired. Recommended Solution Originally, the county planned to use the balance of the Article 44 Capital Reserve for airport projects. The addition of the lighting rehabilitation project ( +191,267), an increase in the airport apron project (+62,377), the increase in the terminal project (+824,851 ), and a misunderstanding about what the state is willing to commit to the project (+293,971) increases the county's overall cost by $1.4 million to $3.4 million. The increased costs of the airport result from construction costs escalation, unexpected sewer modifications, and fuel filling point relocation. The Article 44 Capital Reserve has a balance of approximately $3 million. The end result is that the county needs to seek additional revenues to fund this project. Alternatives •Do nothing. If nothing is done, the jetport's terminal will continue to be outdated and undersized. The limited spaces for meetings, waiting, and pilots makes it less desirable for flights and for use as a meeting space. •Construct a new 6,969-square-foot terminal. The lower level would house two conference rooms, additional office space for airport staff, a pilot lounge with shower area, a larger waiting lounge, and office space for Economic Development. The upper floor. accessible without entering the lower level. would house another meeting space and observation platform, which should be an attractive meeting space for economic development and 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 47 120219a HCBOC Page247 other needs. A temporary terminal will also be needed during construction, so that the old one can be demolished to make way for the new one. The project would consist of these improvements, along with necessary infrastructure and site improvements. No additional land is needed, as everything would be built on property currently owned by Harnett County. HVAC Control Upgrades and Standardization in Multiple Locations Future Acquire software to upgrade and standardize all HVAC controls in buildings on the main Lillington campus. Define Problem Existing HVAC controls vary from building to building. Some systems are out-of-date and are not operating on secure platforms. The Facilities Department must maintain the different systems. Recommended Solution The construction of the Harnett Resource Center and Library and the replacement of the chiller at the Administrative Building and cooling towers at the courthouse have allowed the purchase of a standard control system for these buildings. With time to evaluate these systems, staff will be in a better position to recommend a standardized system. Alternatives •Do nothing: Without standardizing controls, systems will continue to be out of date, operate on non-secure platforms, and require Facilities staff knowledge of multiple systems. In some cases, the existing systems do not allow the most efficient control of HVAC systems. In addition to having to learn multiple systems, staff cannot always make changes without going through the vendor. •Standardize the controls of the Harnett Resource Center and Library. Use this as a starting point for how existing buildings can be standardized in the future. Neills Creek Park Roadway Construction Future Construct a new driveway from NC 210 into Neills Creek Park, located at 3885 Neill's Creek Road, Angier. The new driveway would alleviate the need to use the Harnett Central High School driveway. NC Department of Transportation also requires the construction of a turning lane. This driveway and parking lot would connect the high school and Harnett Central Middle School fields and allow for Parks and Recreation to program both areas. Define Problem The existing entrance to Neills Creek Park is through the main entrance to Harnett Central High School. Because of access through school property, the park cannot be used during school hours. In addition, park users have to drive around to the back of the school to enter the park. This driveway leads to a small parking lot located in the foul ball zone for the softball fields. The only parking for the current park is in close proximity of the high school softball field and the men's softball field. The parking location provides little-to-no protection from foul balls, leaving park users to park at their own risk. Users and spectators can park in the school parking lots but doing so requires a significant walk to the fields. The county recently expanded Neills Creek Park to include the two ballfields, a multiuse field, and relocated tennis courts at the middle school. The existing entrance does not serve these areas. Recommended Solution A feasibility study and cost estimate will be required before this project can move forward. Alternatives 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 48 120219a HCBOC Page248 •Do nothing. If nothing is done, park users will continue to use the existing driveway through school property, which does not give access to the expanded facilities recently constructed by the county and limits usage of the park to non-school hours. •Only install directional signage to inform users of other middle school parking and facilities. This option fails to address the lack of connection between parking and the middle school fields. •Construct a DOT-required turning lane on NC 210, a new entrance into the park, and a parking lot that is more accessible to all park amenities. Northwest Convenience Center Relocation Future Relocate the Northwest Convenience Center to 1971 Oakridge River Road, Fuquay-Varina to provide a larger and safer site to serve the growing population in this area. Define Problem The existing solid waste convenience center, located at 1260 Cokesbury Road, Fuquay-Varina. is outdated and no longer safely accommodates the needs of residents in this area of the county. The site averages 738 per visitors per week. The county leases the one-acre site for $2,500 per year, but only a small fraction of the property is useable. so expansion is not feasible. The small size and inefficient configuration make it inadequate. Newer convenience centers have a more efficient design that offer more waste disposal options and better traffic flow through the site. The Cokesbury Road site is not large enough to segregate pedestrians from vehicles, and traffic backs up onto Cokesbury Road during peak usage, both of which are safety concerns. The site is also located on a narrow secondary road and the entrance and exit are located in a curve, another concern for traffic safety. Last year the county purchased property on Oakridge River Road, Fuquay-Varina to re-locate this convenience center. This 2.5-acre area reserved for the convenience site provides ample room to provide an expanded center that is safer and configured for better traffic flow within the site. It would also offer additional options for waste disposal, such as used oil. oil filters, scrap tires, white goods, and scrap metal. Last year, the county obtained a conditional use permit to build a convenience center on the Oakridge River Road property. Recommended Solution A new Solid Waste Director began service with the county only a couple of months ago. While this site is a high priority, the new director wants to evaluate all Solid Waste concerns before using a large appropriation from the operating reserve for this project. In other words. a complete assessment of the department, its equipment, and its facilities are needed before this is determined to be the highest priority. Alternatives •Do nothing. If nothing is done, the circulation within the site. its small size, and its location on Cokesbury Road will continue to create safety concerns for the center's users. •Utilizing the property the county purchased last year, construct a new convenience center that allows for better circulation within the site and safer entrance into and exit from the site. This option also results in savings from no longer having to lease the Cokesbury Road site. Northwest Harnett Park Development Future Develop Northwest Harnett Park, located at 1975 Oakridge River Road, Fuquay-Varina. Facilities would include two ballfields, picnic shelter, playground, walking trail and fitness stations. Define Problem Harnett County purchased this 28-acre tract in northwest Harnett with the stated intent of building a convenience center. park, and emergency communications tower. During a public meeting held as part of the conditional use permit for the convenience center, residents indicated the strong desire for a park to be located on the site if the solid waste facility is constructed. No parks are currently located in this area. Recommended Solution 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 49 120219a HCBOC Page249 Using in-house labor and the Parks Fund, construct park facilities as time and resources allow. Explore construction of joint facilities, such as entrance road and parking, with Solid Waste. Alternatives Do nothing. If nothing is done, the county will not meet its implied promise to build the park on a site also slated for a solid waste convenience center. Relation to Other Projects Since the project will be developed as funding from the Park Reserve is available, all parks funded in this way are competing for the same small amount of funding. Old Jail Demolition and Relocation of Building Systems for Emergency Services Future Relocate utilities and building systems routed through the old jail, located at 1005 Edward Brothers Drive, Lillington, and demolish the 18,000-square-foot old jail structure to provide a healthy working environment for Harnett County Emergency Services, NC Highway Patrol and NC Department of Motor Vehicles (DMV). Define Problem The old jail, located at 1005 Edward Brothers Drive, Lillington, was vacated in 2009. In spite of several attempts to repurpose the building, its construction has made other uses too difficult and expensive to realize. In the meantime, the roof and HVAC systems have deteriorated, leading to water infiltration and mold growth. The old jail shares electrical, mechanical and plumbing systems with Emergency Services, Highway Patrol and OMV. Emergency Services is directly connected to the old jail. Mold is evident on the walls in Emergency Services, though the air quality has not been tested. In order to separate these offices from the old jail, all systems have to be moved and a new mechanical room constructed. Because of the complex interconnectedness of the systems and the fact that construction plans are not complete, the exact scope of work to move these systems is unknown. Recommended Solution The Facilities Department is proposing to relocate all building systems, build a new mechanical room, demolish the connection between Emergency Services and the old jail, and demolish the old jail building. The project would also involve temporarily relocating Emergency Services, Highway Patrol, and OMV while the work is being completed. Because no cost estimate is available for the work, the county is in the process of hiring an architect or engineer to provide a scope and cost estimate. Because of the immediate need to address indoor air quality concerns, the project will likely be scheduled in the upcoming operating budget when a cost estimate is in hand. Alternatives •Do nothing. If nothing is done, the old jail will continue to deteriorate, causing more problems with the indoor air quality of Emergency Services, Highway Patrol and OMV. •Repair the old jail's roof and HVAC, abate the mold, and repurpose the space for another county function. This option has not seriously been explored. Because of the nature of the old jail's construction other uses are probably limited to storage. Renovation, repair, and mold abatement would be expensive. •Move Emergency Services to another location. The county is directly responsible for the Emergency Services employees. OMV and Highway Patrol are state functions and use the county's building free of charge. Relocating Emergency Services would be an expensive endeavor, as the department occupies 30,550 square feet. OMV and Highway Patrol occupy 2,600 square feet. Relation to Other Projects 11/12/2019 Harnett County 2021-2027 Capi1al lmprovemen1s Program Page 50 120219a HCBOC Page250 The project is related to construction of the Harnett Resource Center & Library. The administration building, located at 420 McKinney Parkway, Lillington, will be temporarily vacated once the Resource Center is open, which could allow Emergency Services to temporarily occupy the building during the jail separation project. Public Library Mobile Outreach Vehicle Future Purchase a bookmobile to provide library services to underserved areas of Harnett County. Define Problem The 2018-23 Harnett County Library Master Plan found that, as of the 2010 Census, 55.9% of the county's population resides in rural area and 16.4% live below the poverty line. The more recent American Communities Survey shows the poverty rate is 18% and that 81 % of the county's population lives outside a municipality. The county's population in the unincorporated area continues to grow faster than the population in its municipalities (between 2010 and 2018, the towns' population grew 8% while the unincorporated area grew 18%). Given these demographics, it is reasonable to assume that transportation to library services may be challenging for many residents. One objective of Harnett Public Libraries is to provide literacy and lifelong learning opportunities to community members of all ages in Harnett County. The department is unable to realize this objective fully without additional facilities or mobile library services. Recommended Solution The Public Libraries Director is recommending that more research be done on the size and features of a mobile outreach vehicle before moving forward with requesting the purchase. She plans to form a planning team to study: •Preferred mobile outreach vehicle size, feature configuration, and adaptability based on community need • Targeted audiences and users •Potential partners •Bookmobile routes and stops •Maintenance costs based on bookmobile model and size •Mileage costs based on routes and fuel efficiency •Staffing needs based on routes, expected number of patrons per stop, bookmobile size and capacity •Collection needs and costs based on bookmobile capacity •Technology needs and costs based on bookmobile capacity Her informal study will involve public surveys, GIS spatial analytic research, bookmobile showroom tour, vendor consults, and discussions with library directors running successful bookmobile programs. The Public Libraries Director believes the study can be conducted in-house at no additional cost to the county. Alternatives •Build public libraries in closer proximity to the more remote areas of Harnett County. Purchasing land and building new library facilities would be a stable, long-term solution to meeting the needs of underserved citizens. This option however will be costly and will require a formal feasibility study and extensive planning. •Purchase self-service library kiosks to be placed in underserved communities to provide library materials. The cost of a kiosk is about $125,000. Buildings would need to be purchased or leased to permanently house the kiosks. Kiosks do not offer a solution to underserved communities' need for programming or access to public computers. ·Provide mobile library services in remote areas. One method for accomplishing this is by purchasing a bookmobile whereby materials, programs, technology, and internet access could be delivered to community members in non-traditional settings who may not be within reasonable driving distance to a public library. •Do nothing and allow residents living in remote areas of Harnett County to continue to be underserved. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 51 120219a HCBOC Page251 Public Library Western Harnett Service Expansion Future Expand public library services to residents of western Harnett by renovating an existing building owned by the county or constructing a new facility. Define Problem The 2018-2023 Harnett County Library Master Plan found that the 48,000 residents of western Harnett do not have adequate public library service. Public libraries provide important services that foster economic development, student achievement, and cultural enrichment. Options for addressing this need include renovating an existing 2,000-to-5,000-square-foot building or constructing a new 8,000-to-10,000-square-foot building in an area accessible to western Harnett residents. The county will evaluate these options and, when ready to proceed, conduct a feasibility study to develop reliable cost estimates. Recommended Solution Continue to study the needs of Western Harnett. When a possible solution is identified, conduct a feasibility study to determine scope, cost, and possible funding models and options. Shawtown Community Park Development Future Develop a park on the former Shawtown School site, located at 645 Shawtown Road, Lillington. Proposed amenities include walking trail, fitness stations, playground, picnic shelter, and community garden. Define Problem Harnett County owns the former Shawtown School and gymnasium. When part of the old school was demolished, the county promised the community a park on the site. Based on community input, a plan for the park was developed and called for a community garden, rock garden, memorial garden, playground areas, and a picnic shelter. An outdoor basketball court has already been constructed. The next proposed phase would be a trail with fitness stations. Parking and driveways within the site are not adequate to support the playground and picnic shelter and will have to be upgraded when these facilities are constructed. Parks and Recreation proposes to work with Cooperative Extension to develop the community garden, possibly utilizing grant funds. All other improvements would be funded from the Parks Fund. Recommended Solution Using mostly in-house labor, develop the park as time and funding allow from the Parks Fund. This option allows the county to continue to develop multiple facilities at locations throughout the county. Alternatives •Do nothing. This option does not fulfill the county's obligation to the community to provide a park on the former school site. •Using mostly in-house labor, develop the park as time and funding allow from the Parks Fund. •Seek additional funding sources to complete development of the entire park. Current Stage of Project The County completed a substantial renovation of the old north classroom building in June 2019 to bring it up to code for new occupants. In addition to renovating the north classroom building, which was built in 1956, the County demolished the original classroom building and gymnasium, which were built in 1949 and had deteriorated to the point where renovation was no longer considered a viable option. The building's new occupants include the new Boys & Girls Clubs of Central Carolina: Robin Paige Club, which opened on August 26 and currently has more than 80 participants; ReEntry Family Services, which was relocated from another location in the County; the Harnett County Sheriff's Office Police Athletic League (PAL), which previously operated out of the gymnasium on campus; and the Harnett County Work Readiness Training Center, which relocated from a building on the other side of the campus. The facility also includes meeting space for organizations and community events, which may be reserved through the 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 52 120219a HCBOC Page252 County. Relation to Other Projects Since the project will be developed as funding from the Park Reserve is available, all parks funded in this way are competing for the same small amount of funding. 11/12/2019 Harnett County 2021-2027 Capital Improvements Program Page 53 120219a HCBOC Page253 120219a HCBOC Page254 Background and Scope • Existing detention center opened in 2009 • Core facilities and site were master-planned to add three 56-bed housing units • For last two years, Sheriff's Office has asked for a capital project to construct one of the housing units (55-bed) • Intent is to house non-local inmates to generate revenue • US Marshall has asked county to increase number of federal inmates held • Manager recommended feasibility study: Will the Housing Unit Pay for Itself? Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page255 Historical Revenue Generation • Annual revenues between $429,443 (2016) and $1.2M (2013) generated • From housing federal, state and military inmates • Rates vary from $45/day state, $60/day federal, and $65/day military Trend in Revenue from Outside Inmates 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 • Federal • State Military Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page256 The Problem? This Revenue Will D1Nindle to $0 • By 2030, it is projected that the county will no longer have capacity for non-local inmates • The revenue will decline until that point as local inmates consume the capacity • It could happen before or after 2030, but it will happen 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Projected Revenue from Outside Inmates I I FY FY FY FY FY FY FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Federal • State Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page257 Feasibility Study Approach • Hire an outside consultant? • Architect did feasibility study for existing detention center, but need was clear and architect has interest in proving need for construction • Budget director has experience in overseeing several feasibility studies for jails, building a new jail, and in projecting operating costs for the new facility • Sheriff and manager agreed to allow budget director to do this work • Captain over Detention Center provided much of the information on which study based • FY 2018 was used as baseline for expenses, because numbers audited and data in old financial software • Question to answer: Will the housing unit pay for itself? Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page258 Functional Capacity • Existing detention center's capacity is 320 inmates • Ideally, a number of these beds are kept vacant for inmates to be properly "classified" and placed in risk-appropriate housing • Harnett Detention Center operates seven housing units: medium-security, high-disciplinary, classification, high security, minimum security, female, and minimum security (dorm style) • Sheriff has determined he needs 20% of beds vacant to manage inmate classification • Function capacity: • Existing detention center: 320*80%=256 available beds • New housing unit 55*80%=44 available beds Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page259 Local Inmate Projections • Incarceration rate is ratio between inmates and 1,000 county residents 300 250 • 2015 Comprehensive Plan projects number of county residents 200 through 2035 • Average incarceration rate since 20131s0.153% 150 100 • Average for last three years slightly higher, 0.159% (this was used 50 to project future number of inmates) • Functional capacity reached in o 2030 and exceeded in 2031 Projected local Inmate Population Functional capacity (256) -------------== 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page260 Fiscal Year 2013 2014 2015 2016 2017 2018 State 1.42 10.32 8.24 7.33 9.97 11.44 Federal 47.33 21.07 14.69 12.13 23.61 28.85 Military ---1.15 Local 176.25 194.62 186.07 204.54 210.42 212.56 Total 225.00 226.00 209.00 224.00 244.00 254.00 120219a HCBOC Page261 Occupancy Rates Occupancy Rate of Beds Available to Outside Inmates • Available beds is functional capacity minus number of local inmates 120% 100% 80% 60% 40% 20% 0% % Utilization 2013 61% 2014 51% 2015 33% 2016 38% 2017 74% 2018 95% • Occupancy rate is number of non-local inmates divided by available beds • 6-year average is 56% • 2-year average is 84% Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page262 Cost for New Housing Unit • Project cost $5,169,295, based on: • August 2019 estimate provided by Mosely Architects, architects for original detention center • Costs adjusted to include debt issuance and town of Lillington sewer connection fees • Project budget shown in Appendix A • Debt financing assumed 4% interest and 20-year term • Project amortization shown in Appendix B • $4,187,129 total debt service paid between FY 2021 and FY 2030 Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page263 Operating Expenses • Personnel based on staffing plan provided by Captain over detention: • 5 detention officers • 1 detention corporal • 1 sworn transportation officer • 1 administrative support • Operating costs allocated based on square footage, staffing or inmates • All costs in FY 2018 were reviewed with Captain; not all costs were allocated if housing unit had no effect • Salary-related costs were inflated by 1.33% per year; other costs were inflated by the 3-year average inflation rate: 1.93% • Personnel and square footage costs determined to be "fixed," costs remain regardless of number of inmates • Inmate costs determined to be variable • See Appendix C for a breakdown Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page264 Scenarios • Baseline: No outside inmates are housed, resulting in full fixed costs, no variable costs and no revenue • Scenario 1 (best case): • Available beds occupied only by federal inmates • Occupancy rate matches highest of the past six years, 95% • Scenario 2 {worst case): • No federal inmates housed, only state • Occupancy rate lowest of past 6 years, 33% Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page265 Scenarios • Scenario 3 (Likely Case 1 ): • Occupancy rate matches 2-year average of 84% • Mix of inmates (federal, state) matches last two-year average • Chosen as most likely by Captain over detention • Scenario 4 (Likely Case 2): • Occupancy rate matches 6-year average of 56% • Mix of inmates matches 6-year average • Scenario 5: • Scenario 3 + ask for increase to $70/day from federal government Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page266 FY 2021 FY 2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY 2029 FY2030 Total Baseline (465,237) (966,321) (914,105) (910,924) (907,858) (904,908) (902,078) (899,368) (896,782) (894,320) (8,661,901) Scenario 1 (465,237) (226,548) (177,803) (178,158) (178,697) (179,422) (180,338} (181,446) (182,752} (184,258) (2,134,658) Scenario 2 (465,237) (791,055) (740,031) (738,066) (736,239) (734,552) (733,009} (731,612) (730,363) (729,265) (7,129,427) Scenario 3 [ (465,237) (369,691) (320,540) (320,484) (320,602} (320,899) (321,377} (322,041) (322,893) (323,936) (3,407,699) Scenario 4 (465,237) (563,677) (513,506) (512,408) (511,465} (510,680) (510,056} (509,596} (509,302) (509,177} (5,115,103) (465,237) (275,047) (222,831) (219,650) (216,584) (213,635) (210,804) (208,094} (205,508) (203,046) (2,440,436} 120219a HCBOC Page267 Scenario 1 Scenario 2 Scenario 3 Scenario 4 85,207 (108,779) 124,019 (68,946) 113,737 (78,187) 103,280 (87,583) 92,645 (97,137) 81,828 (106,851) 70,826 (116,729) 59,635 (126,774) 48,253 (136,988) 120219a HCBOC Page268 Summary of Results • No scenario covers the county's full costs (debt service and operating expenses) • In 3 scenarios, the county's operating costs were covered (Scenarios 1, 3, and 5) • However, in Scenario 3, deemed the most likely, only $779,430 is generated over 10 years to cover debt; the county's net expenses average $340,000 per year • In Scenario 4, which uses 6-year averages, the county would not cover operating expenses Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page269 Cost Per Inmate % Occupancy Scenario 1 15,113.12 Scenario 2 35,809.02 Scenario 3 16,543.54 Scenario 4 22,674.14 Scenario 5 16,543.54 120219a HCBOC Page270 Recommendation • If county's finances were robust, there is logic to building the housing unit now and using revenues to cover future capital costs; a new housing unit will be needed in the early 2030s • The federal government will not make any guarantees about the number of prisoners or provide up-front funding • The likely reward ($779,430 towards debt) is not enough to warrant the significant risk • The county will need to plan for the loss of revenue over the next 10 years Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page271 r: -~ Harnett ~ (--, C O U N T Y ~ NORTH CAROLINA Renee Paschal Budget Director rpascha l@harnett.org Harnett Detention Center Housing Unit Addition: Feasibility Study 120219a HCBOC Page272 120219a HCBOC Page273 Background and Scope Harnett County's detention center opened in 2009. The detention center's core facilities and the build ing site were master planned to add three 56 -bed housing units in the future. For the last two Trend in Revenue from Outside Inmates years, the Harnett County Sheriff's Office has submitted, as a capital project, the construction of one of the housing units. The intent of building the housing unit is to provide secure detention for non-county inmates, such as federal and state prisoners, for which the county receives reimbursement at daily rates of $45 for state inmates and $60 for federal inmates . The local 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 • Federal • State Military detention center population is increa sing, and it i s projected that by FY 2030, the county will no longer have capacity for non-county inmates. In the meantime, this fund i ng source will decline as non-county inmates are di splac ed by local inmates. Be cause this funding source generates sub stantial revenue for the county, between $429,443 in FY 2016 and $1,205,967 in FY 2013 , the Sheriff's Office has propose d building the housing unit to ensure the county Projected Revenue from Outside Inmates 1,200,000 1,000,000 800,000 600,000 400,000 200,000 FY FY FY FY FY FY FY FY FY FY FY FY FY 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Federal • State Harnett Detention Center Housing Unit Addtion Feasibility St udy continues to receive this revenue. Th e Sheriffs Office ha s also been encouraged by the U.S. Marshall to house federal inmates. While the project was scheduled in the FY 2019-2025 Capital Improvements Program (CIP), no funding was identified for the project . The project was reviewed as part o f the FY 2020- 2026 CI P, and the County Manager recommended that a feasibility study be done to dete rmine whether constructing the housing un it is cost-effective for the county. 120219a HCBOC Page274 Approach The county could have hired an outside consultant to conduct the feasibility study. However, the part-time Budget Director has substantial experience in building a new detention facility and projecting the operating costs to run it. She proposed to the County Manager that she conduct the study in-house . The Budget Director met with the Harnett County Sheriff and Major over Detention and shared her credentials and experience. The Sheriff agreed to this approach. Working with the Major over Detention, the Budget Director collected the needed data from the Sheriff's Office, the Planning Office, and the county's financial records. The goal was to determine the operating and capital costs of the new housing unit and compare these costs with projected revenue to see if building the housing unit would be cost effective. Detention Center "Functional" Capacity The stated capacity of the existing detention center is 320 inmates. However, a certain number of beds must be kept vacant in order for the detention staff to properly classify inmates and place them in risk-appropriate housing units. The U.S. Department of Justice National Institute of Corrections Jail Capacity Planning Guide explains this need in a case study example: The county also used a second factor, classification, to allow for the jail's daily need to have a few open beds available for new inmates within each classification category. In a jail of the size under study in the sample county, a reasonable classification adjustment factor would be seven beds for each of the four primary classification categories-high/maximum security, close custody, medium custody, and minimum custody. (Note: Counties will have to determine what is reasonable or appropriate for their own facilities' management strategies.) For the sample county that means increasing its estimate of the number of beds needed in each year of the planning cycle by 28 beds per year. The Harnett County Detention operates seven housing units: • Medium security unit • High -disciplinary unit • Classification unit • High security unit • Minimum security unit • Female unit (all other units are male only) • Minimum security, dorm-style unit The Sheriff's Office has determined that it needs 20% of the beds empty in order to manage inmate classification. This means that the functional capacity of the detention center is 256 inmates (or 80% of 320 -bed capacity). The study did not examine this need, but assumed that 256 beds is the functional capacity of the detention center. The functional capacity of the new housing units is 44 (80% of 55 beds). Harn ett Detentio n Center Hous in g Unit A ddtion Feasibility Study 2 120219a HCBOC Page275 Local Inmate Projections The first question to address is how the number of local inmates will increase to reduce the capacity in the detention center for outside inmates. To project the number of local inmates in the detention center, one must first know how the county's population is projected to grow. The source for this data is the 2015 Harnett County Comprehensive Plan. This plan projects the county's population to grow from 136,031 residents currently to 177,534 residents in FY 2035, an average increase of 1.7% per year. This is slightly less than the 1.8% annual rate at which the county's population has grown since 2010. 0.165% 0.160% 0.155% 0.150% 0.145% 0.140% 0.143% 0.135% 0.130% 2013 Trend in Historic Incarceration Rate 0.160% 2014 2015 2016 2017 2018 The next step is to compare the county's historic population to the number of local inmates confined in the county detention center, which is al so known as the incarceration rate. The average incarceration rate since 2013 is 0 .153%, meaning that for every 100,000 county residents, approximately 153 are housed in the county detention center. The average for the last three years has been slightly higher at 0.159%, or approximately 159 inmates for every 100,000 county residents. The chart Trend in Historic Incarceration Rate cl e arly shows this increase. A historic data source, which does not distinguish between local and outside inmates, shows that the incarceration rate jumped substantially in 2003. Since that time, the number of inmates as a percent of the population appears to be relatively stable. 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2013 Yearly Arrests 4,559 3,585 2014 2015 2016 Harnett Detent ion Center Housing Unit Addtion Feasibil ity Study 2017 The number of local inmates is affected by two additional factors: how many people are admitted into the detention center (admi ssi ons) and time they stay in the detention center (average length of stay). Admissions have actually decreased during the past six years (data is only available through 2017) from a high in 2014 of 4,559 to a low in 2015 of 3,585 . The only way that the inmate population can increase while admissions are· decreasing is if the average length of stay is increasing. The average length of stay increases for local inmates if it takes them longer to be processed through the court system . 3 120219a HCBOC Page276 Projected Local Inmate Pop ulat i on 300 250 200 150 100 so 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Using this data, the number o f inmates was projected for the co unty th ro ugh FY 2035 . The local inmate population is projected t o exceed t he functional capacity in 2031. It is assumed that the county would begin to address the need for more detentio n ce nter beds around this time. Detention Center Occupancy by Outside Inmates The Sheriff's Office provided data on the average daily composition of the inmate population since FY 2013. As the table below sh o ws, the co mposition has varied widely. Table 1: Composition of Harnett County Detention Center by Type of Inmate (shown in average number of inmates per day) Fiscal Year 2013 2014 2015 2016 2017 2018 State 1.42 10.32 8.24 7.33 9.97 11.44 Federal 47.33 21.07 14.69 12.13 23.61 28 .85 M ilitary 1.15 Loca l 176.25 194.62 186.07 204.54 210.42 212.56 Total 225 .00 226.00 209 .00 224.00 244.00 254.00 H arn ett Dete ntion Cente r H ous ing Unit Addtio n Feas ibility Study 4 120219a HCBOC Page277 Factors Affecting Outside Inmates Statewide Misdemeanant Confinement Program The Justice Reinvestment Act, which went into effect January 1, 2012, changed the rules about where convicted misdemeanants serve their sentences. Prior to the change, only misdemeanants sentenced to 90 or fewer days were housed in local jails. Upon implementation of this law, misdemeanants sentenced between 91 and 180 days were required to be housed in local jails under the Statewide Misdemeanant Confinement Program (SMCP). 60 50 40 30 20 10 2013 Number and Type of Out side Inmates • State • Federal Military 2014 2015 2016 2017 2018 Through the SMCP program, administered by the NC Sheriff's Association, counties can volunteer to house these inmates for a reimbursement rate of $45 per day. The intent of the law was that counties would cover supervision, housing, care, and transportation . The rate has not increased since the law was enacted. The Harnett County Sheriff has chosen to participate in the program. Based on the NC Sheriff's Association website, it appears that 68 of 100 counties participate. Federal Policies Changes in federal law can impact the number of federal inmates available to be housed locally. During President Obama's Administration, the number of federal inmates was generally lower, as reported by the Harnett County Sheriff's Office. The graph above shows this is true, except for 2013. Following the upcoming 2020 Presidential election, federal policy could change again . In fact, the Presidency could change three times before the county receives the revenue projected below. Occupancy Rates As discussed above in Table 1, both local decisions and federal and state policies affect how many non -county inmates are hou sed, resulting in varying rates of utilization of available bed s by outside inmates, or the "occupancy rate." To determine this rate, first, the number of available beds was calculated by subtracting the local inmate population from the functional capacity (256 bed s) to yield the beds available. Second, the actual number of outside inmates was divided by available beds to yield the occupancy rate. The occupancy rate has varied widely during the last six years, from a low of 33% in 2015 to a high of 95% in 2018. The average of the six-year period is 56%. The average of the la st two years is 84%. Harnett Detention Center Hou sing Unit Addtion Feasibility Study 5 120219a HCBOC Page278 120% 100% 80% 60% 40% 20% 0% % Utilization Costs Occupancy Rate of Beds Available to Outside Inmates 2013 61% 2014 51% 201S 33% 2016 38% 201 7 74% 2018 95% In part because of the Munis implementation in FY 2019 and changing of the account code structure and in part because audited figures are available, FY 2018 was se lected as the base year for determining expenditures. Staffing costs were based on the staffing plan provided by the Sheriff's Office to hire the following: • 5 detention officers • 1 detention corporal • 1 transportation officer (sworn law enforcement officer) • 1 administrative support To determine costs of the new housing unit, 2018 costs were reviewed with the Major over detention. Costs were determined to be based on the size of the facility, staffing, or number of inmates. These costs were then allocated to the new housing unit based on square footage, staffing, or number of inmates. After discu ssion with the Major, some existing costs were not included because adding the housing unit would not affect them. Operating costs were then inflated by the average consumer price index over the past three years , 1.93%. Staffing costs were inflated by the county's current average increase in pay and related benefits, 1.33%. Other benefits, such as health insurance, were inflated by the average consumer price index for th e past three year. The estimate for the capital expense of the housing unit was provided by Mosley Architects, the firm that designed the original detention center 10 years ago. A debt service schedule was developed, assuming 4% annual interest, a term of 20 years, and level principal payments, which is how debt is typically structured. The Finance Officer has reviewed the schedule. See Appendix A for the project costs and Appendix B for the debt service schedule. Costs allocated by staffing, square footage, and debt service were determined to be "fixed costs." In other words, just because the number of inmates decreased, the staffing would not be adjusted, the facility itself would not change, nor would the debt payment be affected. Costs allocated by inmate were determined to be variable, meaning the costs would vary with the number of inmates. See Appendix C for detail on which costs were allocated by staff, which by square footage (facility costs) and which by inmate. Harnett Detention Center Housing Unit Add ti o n Feasibil ity Study 6 120219a HCBOC Page279 Scenarios Five scenarios and a baseline were developed: Baseline No outside inmates are housed, resulting in full fixed costs, no variable costs, and no revenue. Scenario 1 Best case: The available beds are occupied only by federal inmates with the highest reimbursement rate. The occupancy rate matches the highest of the past six years: 95%. Scenario 2 Worst case: No federal inmates are available, and only state inmates with the lowest reimbursement rate occupy the beds. The occupancy rate matches the lowest of the past six years: 33%. It is believed that even if federal in- mates are not available, state inmates will be available for the foreseeable future. However, additional counties contracting with the state could increase the number of beds available statewide and might reduce demand. Changes in criminal laws could either increase or decrease the number of available state misdemeanants. Scenario 3 Likely Case 1: The occupancy rate matches the two-year average of 84%. The mix of inmates matches the last two-year average, as shown below: Federal 69 .93 % State 28.53 % Militarv 1.54% Scenario 4 likely Case 2: The occupancy rate matches the six-year average of 56%. The mix of inmates matches the six-year average, as shown below: Federal 74 .76 % St ate 24 .66% Militarv 0.58% Scenario 5 Using the same assumptions as Scenario 3, the federal reimbursement rate was increased to $70 per day. The Majo r over detention indicated that he thought Scenario 3 was most likely. It is highlighted in the tables below. In no scenario does the revenue cover the county's full costs, including operating and debt service . The co sts have been calculated through FY 2030 . Beginning in FY 2031, local inmates will exceed the existing functional capacity of the detention center and will begin to occupy the new hou sing unit. Below are the results: Hamett Detention Center H ousing Unit Addti on Feasibility Study 7 120219a HCBOC Page280 Table 2: Comparison of Revenue to Total Costs Revenues v Total FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Baseline (465 ,237) (966 ,321) (914,105) (910,924) (907,858) (904,908) Scenario 1 (465,237) (226,548) (177,803) (178,158) (178,697) (179,422) Scenario 2 (465 ,237) (791,055) (740,031) (738,066) (736,239) (734,552) Scenar io 3 (465,237) (369,691) (320,5 40) (320,484) (320,602 ) (32 0,899) Scenar io 4 (465 ,237) (563,677) (513,506) (512,408) (511,465) (510,680) Scenario 5 (465 ,237) (275,047) (222,831) (219,650) (216,584) (213 ,635) Revenues v Total FY 2027 FY 2028 FY 2029 FY 2030 Total Baseline (902,078) (899,368) (896,782) (894 ,320) (8,661,901) Scena r io 1 (180,338) (181,4 4 6} (182,752) (184 ,258) (2,134,658 ) Scenario 2 (733,009) (731 ,612) (730,363) (729,265) (7,12 9,427 ) Scenario 3 (3 21,377) (322,041} (322,89 3) (32 3,936) (3,407 ,699) Scenario 4 (510,056) (509,596) (509 ,302) (509 ,177) (5 ,1 15,103) Sce na rio 5 (210,804) (208,094) (205 ,508) (203,046) (2 ,440,436) An argument can be made that even if the full costs of the pod are not covered, covering mo re than the operating costs helps the county pay the capital cost of a building it will need sometime in the early 2030s. To determine how much of the revenue could offset the capital cost, an analysis was done to show revenues compared with operating costs only. Any positive number below refle cts the amount of the debt service payment that can be offset during that year. The amortization schedul e is shown in Appendix B. The total debt service from FY 2021 to FY 2030 is $4 ,187,129. Table 2: Comparison of Revenue to Operating Costs Revenues v Operating FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Scenario 1 228 ,350 266,757 256,063 245 ,185 234,121 Scenar io 2 (336,157) (295,472) (30 3,845) (312 ,356} (321 ,009) Scenario 3 85,207 124,01 9 113,737 103,280 92,645 Scenar io 4 (108,779} (68,946) (78,187) (8 7,583) (97,137) Scenari o 5 179,851 221,728 214,571 20 7,298 199,909 Revenues v Operating FY 2027 FY 2028 FY 2029 FY 2030 Total Scenario 1 222,867 211,420 199,776 187,932 2 ,052,471 Scenario 2 (329,804) (3 38,74 5 ) (34 7,8 35) (357 ,075) (2 ,942,2 9 8) Sc e nario 3 81,828 70,826 59,635 48,253 779,4 30 Sc enario 4 (106,851) (116,72 9) (12 6,77 4) (13 6,988) (927,974) Scenario 5 192,401 184,772 177,0 20 169,143 1,746,69 3 H arnett Detention Center Hou sing Unit Addtion Feasibil ity Study 8 120219a HCBOC Page281 Recommendation If the county were in a better fiscal position, there is logic to investing now in building the housing unit to help cover future capital costs. An additional housing unit will be needed sometime in the early 2030s. However, given the county's current fiscal situation, the expense, which averages $340,000 per year under Scenario 3, takes away resources from current county needs. If Scenario 2 or 4 were to occur, the county would not generate enough revenue to cover any of the capital costs. In addition, there is quite a bit of risk in building a housing unit without either an upfront payment or a guaranteed annual payment from the federal government. If policies change, the number of federal inmates could be significantly reduced from Scenario 3. In short, the county is not in the financial position to build a housing unit that will not be needed for more than 10 years. This would tie up debt capacity that is needed for schools and other county facilities . The federal government will not give any guarantees about its usage of the housing unit, leaving the county to assume the financial risk for debt and fixed operating costs. Simply, the risk far outweighs the reward. Note on Accuracy of Costs The cost data above was based on staffing projections provided by the Sheriff's Office and on FY 2018 actual costs . In order to assess overall accuracy, these costs were compared with the actual per inmate cost in FY 2018. Below is a summary of the comparison . Only non-debt costs are compared. The percent occupancy is also shown, because as the number of inmates increases, the cost per inmate decreases because staffing and square footage costs remain the same (are fixed). Cost Per Inmate % Occupancy Scenario 1 15,113 .12 95% Scenario 2 35 ,809.02 33% Scenar io 3 16,54 3.54 84 % Scenario 4 22,674.14 56% Scenario S 16,543.54 84% FY 2018 19,741.34 95 % Harn ett Detention Center Housing Unit Add t ion Feas ibil ity Study 9 120219a HCBOC Page282 AGENDA ITEM I 3 6' FY 2019-2020 1st Quarter Re ort JULY -SEPTEMBER 2019 SPECIAL EVENT HOSTING BENGAL FOOTBALL JAMBOREE Pop Warner Yo uth Football Event a t Neills Creek Par k • 36 Teams from 8 different Counties (including the Triangle. Nash, Onslow, and Craven. • Players aged from 5-14 • Total Attendance estimated at 3.800 people. • Reported by Bengal staff as the largest youth jamboree in NC. PINE CONE DISC GOLF OPEN Amateur Disc Golf Tournament at Anderson Creek C o u nty Park • 80 disc golfers completed 2 rounds of disc golf on Sunday. Sept 29th • 3rd year of this tournament. RECREA TION PROGRAMS BOONE TRAIL COMMUNITY CENTER AND LIBRARY • 148 children participated in the Summer Reading Program • 59 campers spent time in our Summer Camps • 529 baskeball players participated in Open Gym • 20 students are enrolled in the Afterschool Program • 41 cit izens came to hear County staff discuss the future of the old Boone Trail School site. PARKS AND RECREATION MONTH : GAME ON During July: Parks and Recreation partnered with Community Relations Coordinator and other municipal recreation departments to play a game of BINGO • Parti c ipants hod to visit at least 5 recreational events or parks t o get BINGO. • completed BINGO cards were given a prize pack and eligible for a YETI tumbler and Canoe Trip. 120219a HCBOC Page283 AGENDAITEM ---l/u...3~®:v-- SANDHILLS CENTER Managing Mental Health, Intellectual/Developmental Disabilities and Substance Abuse Services 910-673-911 l (FAX) 910-673-6202 www.sandhillscenter.org Victoria Whitt, CEO November 13, 2019 Ms. Kimberly Honeycutt Hamett County Finance Officer PO Box 759 Lillington, NC 27546 Dear Ms. Honeycutt: Attached you will find a copy of the Sandhills Center Quarterly Fiscal Report for the period September 30, 2019. This required State Division of Mental Health, Developmental Disabilities and Substance Abuse Services Report has been sent, on a quarterly basis, to each of the County Managers and County Commissioners in the Sandhills Area for a number of years. Please note that a revision to G .S. l 22C-l 17(c), enacted by the 2006 General Assembly, requires that this Report be sent directly to each County Finance Officer. More specifically, the revised Statute requires that: "The County Finance Officer shall provide the Quarterly Report to the Board of County Commissioners at the next regularly scheduled meeting of the Board." A review of the attached September 30, 2019, Quarterly Fiscal Report indicates the following: Actual Revenue=$ 78,411,127 Actual Expenditure=$ 82,161,426 Expenditure in Excess of Revenue=$ (3,750,299) Should you have any questions on this Quarterly Fiscal Report, please feel free to contact myself or Kelly Patterson (Finance Director). Thank you for your assistance in addressing the requirements of our fiscal reporting requirements . Sincerely, Victoria Whitt Chief Executive Officer Attachment cc: Paula Stewart, Hamett County Manager Howard Penny, Harnett County Commissioner P.O. Box 9, West End, NC 27376 24-Hour Access to Care Line : l-800 -256-2452 TTY: l -866 -518-6778 or 711 Serving Anson, Guilford, Harnett, Hoke, Lee, Montgomery, Moore, Randolph & Richmond counties urac· urac· urac· "'CCRll:DITl"'O .lrt.CCAllOITEO ACCRfblTCG Hca!rt: C orn ~nt-0r H~alll1i H.raRt, ~ ~ ~C'•l"IHI 0:':.1 01.".20.2'2 Ulila111i..cw1 '-iq,.,.,.... lh'l"IH >i),' M~age!N'nt 120219a HCBOC Page284 Sandhills Center Fiscal Monitoring Report For the 3 Months Ending Sept 30, 2019 Medicaid Budget Actual Year Item 2019-2020 To Date Revenues Medicaid Pass Thru 0 0 Budgeted Fund Balance Other Loca l Total Local Funds 0 0 County Appropriations (by County Including ABC Funds) Anson 0 0 Guilford Harnett Hoke Lee Montgomery Moore Randolph Richmond Total County Funds 0 0 Local Management Entity Systems Adm in 0 0 Medicaid General Admin 14,673,572 3,420,379 Medicaid Mental Health/Substance Abuse Treatment Planning 4,016,788 943,400 Medicaid Intellectual/Developmental Disabilities Treatment Planr1ing 6,967,897 1,650,397 Division of Medical Assistance Risk Reserve Funding 5,465,017 1,457,952 Divisior1 of Mental Health/Intellectual Developmental Disabilities/ Substance Abuse Services Division of Medical Assistance Medicaid Capitation Funding 242,127,597 60,922,776 All Other State/Federal Funding Total State and Federal Funds 273,250,871 68,394,903 Fund Balance 8,020,644 Total Revenues 281,271,515 68,394,903 Expenditures Local Management Entity Systems Admin Intergovernmental Transfer 1,956,427 0 Medicaid General Admin 19,417,886 3,990,296 Medicaid Mental Health/Substance Abuse Treatment Planning 5,098,042 1,353,775 Med icaid Intellectual/Developmental Disabilities Treatment Planning 7,206 ,546 1,653,156 Medicaid Risk Reserve 5,465,017 0 Medicaid Provider Payments 242,127,597 63,992,957 State/Local Provider Payments All Other State/Federal Provider Payments Total Expenditures 281,271,515 70,990,183 In Cash Balance ,,_,;., LME-MCO Director Date State Budget Actual Year Total 2019-2020 To Date 15,000 0 473,259 102,948 102,948 488,259 102,948 102,948 55,000 13,750 13,750 9,674,000 2,418,506 2,418,506 199,679 99,840 99,840 64,000 20,230 20,230 240,000 60,000 60,000 60,775 15,193 15,193 216,107 104,429 104,429 844,000 211,030 211,030 132,525 33,132 33,132 11,486,086 2,976,109 2,976,109 79,253 126,597 126,597 3,420,379 943,400 1,650,397 1,457,952 21,866,773 5,333,911 5,333,911 60,922,776 4,787,831 1,476,659 1,476,659 26,733,857 6,937,167 75,332,070 22,398,789 0 61,106,991 10,016,224 78,411,127 5,363,815 951,524 951,524 0 3,990,296 1,353,775 1,653,156 0 63,992,957 50,955,345 8,743,059 8,743,059 4,787,831 1,476,659 1,476,659 61,106,991 11,171,242 82,161,425 -3, 750,299 11-12-1 Date 120219a HCBOC Page285 <1-SANDHILLS CENTER Managing Mental Health, Intellectual/Developmental Disabilities and Substance Abuse Services 910-673-9111 (FAX) 910-673-6202 www.sandhillscenter.org Victoria Whitt, CEO Greetings, RECEIVED NOV 11 2019 HARNETT COUNTY MANAGER'S OFFICE Please find enclosed the Sandhills Center financial statements and compliance reports for the year ended June 30, 20 l 9. If you would like to have an electronic copy or have any questions, please let me know. Thank you, s~ Executive Assistant to CEO Clerk to the Board of Directors 910-673-7107 sherryb@s and hi I lscenter.org P.O. Box 9, West End, NC 27376 24-Hour Access to Care Line : l ·800-256-2452 TIY : l -866-5 18-6778 or 711 Se rving Anson, Guilford, Harnett, Hoke, Lee, Montgomery, Moore , Randolph & Richmond counties urac urac· urac· ACC:tr'l!Ol'U:o A CC.AEOl,.ED A CClltlOITt:O Hc.a•ih C,lll Cc~l~I HoJlth H •alO• \lot,,lw~(~ E•111•1"'5 !'.>5.Q,,;!°'J2;'.' UUh1'.IIJ()n i:.-ri1r,., n,,,:,.111 '11,l.l li,ll ~n&Qel'rl!'!m C,-pire:, O~·D 1:~r.22 120219a HCBOC Page286 r-· ~~ Cherry Bekaerrp CPAs & P.d visors To the Board of Directors Sand hill s Center for Mental Health , Developmental Disab i lit ies , and Substance Abuse Services West End , North Carolina We have aud ited the finan c ial statements of Sandhills Center for Mental Health, Developmental Disabilitie s and Substance Abuse Services (the "Center"), which comprise the statement of net po sition a s of and for the year ended June 30, 2019, and the related statements of revenues, expenses , and changes in net position and cash flows for the year then ended , and the related notes to the financial statements . Professiona l standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, the Uniform Guidance , and the State Single Audit Implementation Act , as well as ce rtain information related to the planned scope and timing of our audit . We have communicated such information in our letter to you dated May 7 , 2019 . Professional standards also require that we communicate to you the following information related to our audit. SIGNIFICANT AUDIT FINDINGS Qualitative Aspects of Accounting Practices The significant accounting policies used by the Center are described in the notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the Center during the year for which there is a lack of authoritative guidance or consensus . All significant transactions have been recognized in the financial statements in the proper period . Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Center's financial statements were: Management's estimate of depreciation expense is based on depreciable lives. We evaluated the key factors and assumptions used to develop the estimated life of capital assets in determining that it is reasonable in relation to the financial statements of the Center for the year ended June 30 , 2019 , taken as a whole. While the procedures used by management and the amount of depreciation expense seem reasonable at this time , there will usually be differences between the estimate and the actual results and these differences may be material. Management's estimate of incurred but not reported claims is based on trends in each month since Medicaid waiver became effective on April 1, 2012 . We evaluated the key factors and assumptions used to estimate the accrual as of June 30, 2019, in determining that it is reasonable in relation to the financial statements, taken as a whole. While the procedures used by management and the· estimated liability seem reasonable at this time , there will usually be differences between the allowance and actual results and these differences may be material. Management's estimate of the net other post-employment benefits ("OPEB") liability is based on an actuarial study using projected membership and estimated healthcare cost trend rates. We evaluated the key factors and assumptions used to develop the net OPES liability in determining that it is reasonable in relation to the basic financial statements of the Center for the year ended June 30, 2019, taken as a whole. While the procedures used by management to estimate this liability and the amount of the asset appear reasonable at this time, there will usually be differences between the allowance and actual results and these differences may be material. 120219a HCBOC Page287 120219a HCBOC Page288 Sand hills Center for Mental Health, Developmental Disabilities, and Substance Abuse Services Page 2 Ma nagem ent's est imate of the net pension liab ility is bas ed on an actuarial va luat ion which c o nsidered the projection of the Agen cy's long-term share of future payr oll covered by the pensi o n plan , relative to t he proje cted future payroll c overed by the pen s ion plan of all participating Local Governm e nt E mployees ' Retirement Sy stem (''LGERS ") employers . We evaluated the key fa ctors and assumptions used to develop thi s liabili ty in determ ining that it is reasonable in relation to the fi nanc ial st atements , ta ken as a whole . The estimate is considered reasonable in relation to the financial statements , taken as a whole , based on the information currently available . Management's estimate of the allowance for doubtful accounts is based on an analysis of historical collection trend s and managem e nt's evaluation of current and anticipated economic conditions . We evaluated the key factors and assumptions used to develop the allowance to determine that it seems reasonable in relation to the financial statements of the Center for the year ended June 30 , 2019 , ta ken as a whole . While the procedures used by management and the amount of the allowance seem reasonable at the time , there will usually be differences between the allowance and actual results and these difference may be material. Management's estimate of the liability for compensated absences is based on accounting system reports which calculate the extended dollar value of compensated absence hours earned and used by e mployees and an adjustment factor based on average rates of certain benefits earned by employees . We evaluated the key factors and assumptions used to develop the liability for compensated absences to determine that it seems reasonable in relation to the financial statements of the Center for the year ended June 30, 2019 , taken as a whole . While the procedures used by management to estimate this liability appears reasonable at this time. there may be differences between the Center's estimates and the actual results and these differences may be material. Management's estimate of the fair value of investments at June 30, 2019 is based on the market for similar investments . We evaluated the key factors and assumptions used to develop the estimate for the fair value of investments in determining that it is reasonable in relation to the basic financial statements of the Center for the year ended June 30, 2019, taken as a whole . While the procedures used by management to estimate fair value appear reasonable , there may be differences between the Center's estimates and the actual results and these differences may be material. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known . and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We did not propose nor did we have any passed adjusting journal entries. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated October 23, 2019. 120219a HCBOC Page289 120219a HCBOC Page290 Sandhills Center for Mental Health, Developmental Disabilities, and Substance Abuse Services Page 3 Management Consultations with Other Independent Accountants In some ca s es, managem e nt may decide to consult with other ac countants about auditing and accounting ma tters , similar to obtaining a "second opinion " on certain situations. If a consultati on involv es an application of an accounting principle impacting the Center's financial statements or a determination of th e type of auditor's opinion that may be express ed on those statements , our pro fessional standards requ i re the con s ulting ac countant to check with us to determine that the consultant has all the re levant facts To o ur knowledge , there were no such consultations with other ac c ountants . Other Audit Findings or Issues We generally discuss a variety of matters, including the application of ac counting princ iples and auditing standards , with management each year prior to retention as the Center's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention . Other Matters We applied certain limited procedures to the management's discussion and analysis and required supplementary information ("RSI"), as listed in the financial statements ' table of contents , which supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information, as listed in the financial statements' table of contents, which accompany the financial statements but are not RSI , and the Schedule of Expenditures of Federal and State Awards. With respect to this information , we made certain inquiries of management and evaluated the form, content, and methor:Js of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the basic financial statements . We compared and reconciled this information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves and in our opinion, this information is fairly stated, in all material respects, in relation to the basic financial statements as a whole . Restriction on Use This information is intended solely for the information and use of management the Center, others within the Center, the Board, federal, and state awarding agencies, and pass-through agencies and is not intended to be, and should not be , used by anyone other than these specified parties. Raleigh, North Carolina October 23, 2019 120219a HCBOC Page291 120219a HCBOC Page292 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES FINANCIAL STATEMENTS AND COMPLIANCE REPORTS As of and for the Year Ended June 30, 2019 And Report of Independent Auditor 120219a HCBOC Page293 120219a HCBOC Page294 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES TABLE OF CONTENTS AREA BOARD OF DIRECTORS AND AREA OFFICIALS ....................................................................... 1 REPORT OF INDEPENDENT AUDITOR ................................................................................................. 2-3 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................. .4-7 FINANCIAL STATEMENTS Statement of Net Position ..................................................................................................................................... 8 Statement of Revenues , Expenses, and Changes in Net Position ...................................................................... 9 Statement of Cash Flows ................................................................................................................................... 1 O Notes to the Financial Statements ................................................................................................................ 11-25 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in the Total Other Postemployment Benefits Liability and Related Ratios ......................................................................................................................................... 26 Schedule of Proportionate Share of the Net Pension Liability - Local Governmental Employees' Retirement System ..................................................................................... 27 Schedule of Contributions to Local Governmental Employees' Retirement System and Notes to the Required Schedules for Local Government Employees' Retirement System ........................................................................................ 27 SUPPLEMENTARY INFORMATION Medicaid Balance Sheet. ................................................................................................................................... 28 Medicaid Income Statement ............................................................................................................................... 29 Medicaid Statement of Cash Flows .................................................................................................................... 30 Balance Sheet (Modified Accrual Basis of Accounting) ..................................................................................... 3 1 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Modified Accrual Basis of Accounting) ...................................................................... 32-33 Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis -Project-Length Budgets) - Capital Projects Fund ..................................................................................................................................... 34 COMPLIANCE SECTION Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................. 35 -36 Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance and the State Single Audit Implementation Act .............................................................................................................. 37-38 Report of Independent Auditor on Compliance for Eac h Major State Program and on Internal Control over Compli ance Required by the Uniform Guidance and the State Single Audit Im p lementation Act..................................................................................... . .............. 39-40 Sch e dule of Fin dings and Questioned Costs........................................................ ......... ... . .... .. .............. .41-42 Summary S c hedule of Pri or Audit Findings ..................................................................... ... .... . ... .43 S ched ule of Expenditures of Federal and State Awards ..................................... .... . . .. ... .. . . .44-45 Note s to the Schedule of Expenditures of Federal and State Awards .......................................................... 46 120219a HCBOC Page295 This page left blank intentianally 120219a HCBOC Page296 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVI.CES AREA BOARD OF DIRECTORS AND AREA OFFICIALS AREA BOARD OF DIRECTORS: Thad Ussery (Commissioner) (Chairperson) Kay Cashion (Commissioner) (Vice-Chairperson) Michele Weatherly (Secretary) Ross Streater (Commissioner) Priscilla Little Joe Miller (Commissioner) Kirk Smith (Commissioner) Walter Ferguson Otis Ritter (Commissioner) Matthew Rothbeind Gart Evans AREA OFFICIALS: Dr. Walter Salinger Carlos Town send Harry Southerland (Commissioner) Shirley Hart Dottie Robinson (Commissioner) Carol 1/Vhitaker David Allen (Commiss ioner) Mazie Fleetwood Leann Henkel Jerry Earnhardt Victoria Whitt ........................................................................... Chief Executive Officer Anthony Ward ......................................................................... Chief Operating Officer 120219a HCBOC Page297 ~~ Cherry Bekaerrp [ __ , C PA s & Advisor5 Report of Independent Auditor To the Board of Directors Sandhills Center for Mental Health , Developmental Disabilities and Substance Abuse Services West End, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services (the "Center") as of and for the year then ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Center's basic financial statements, as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordanc'F with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstanc·es, but not for the purpose of expressing an opinion on the effectiveness of the e ntity's internal control. Accordingly , we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions . Opinions In our opinion, the financial statements referred to a bove p r esent fairly , in all material respects . th e financial positi o n of the C enter as of June 30 , 201 9 , and the respe ctive changes in it s financial position and its cash flows fo r the yea r then e nded in accordan ce w ith accou nting prin c iples gen erally acc epted in the United States of America . 120219a HCBOC Page298 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements . Such information, although not a required part of the basic financial statements , is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic, or historical context. We have applied certain limited procedures to the requ ired supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance . Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the Center. The supplementary information . as listed in the table of contents , as well as the accompanying Schedule of Expenditures of Federal and State Awards , as required by Title 2 US Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , and the State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information and the Schedule of Expenditures of Federal and State Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements . Such information has been subjected to the auditing procedures applied in the · audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves. and other additional procedures in accordance with auditing standards generally accepted in the United States of America . In our opinion , based on our audit, and the procedures performed as described above, this information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole . Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 23, 2019 , on our consideration of the Center's internal control over financial reporting and our tests of its compliance with certain provisions of laws. regulations . contracts. grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance . That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Cente r's internal control over financial reporting and compliance. Raleigh , North Carolina October 2 3, 2019 3 120219a HCBOC Page299 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019 As management of Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services (the "Center"), we offer readers of the Center's financial statements this narrative overview and analysis of the financial activities of the Center for the year ended June 30, 2019. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the Center's financial statements, which follow this narrative. Financial Highlights • The assets and deferred outflows of resources of the Center exceeded its liabilities and deferred inflows at the close of the year by $127,139,411 . • The Center's total net position decreased by $25,588,171. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Center's basic financial statements . The Center's basic financial statements consist of two components : (1) government-wide financial statements and (2) notes to the basic financial statements . Government-Wide Financial Statements The government-wide financial statements include the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Net Position, and the Statement of Cash Flows. The Center operates similar to a private business and therefore utilizes the proprietary fund method of accounting . This method provides both short and long-term financial information and requires that revenue and expenses are recognized on the full accrual basis of accounting . The Statement of Net Position presents information on all of the Center's assets , deferred outflows of resources , liabilities and deferred inflows of resources, with the difference between these reported as net position. Over time , increases or decreases in net position may serve as a useful indicator of whether the financial position of the Center is improving or deteriorating. The Statement of Revenues, Expenses , and Changes in Net Position presents information showing how the Center's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs , regardless of the timing of the related cash flows . The Statement of Cash Flows presents information reconciling current year operations and the change in the Statement of Net Position to the net change in cash during the year . The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide financial statements Other Information In addition to the basic financial statements and ac companying notes , this report includes certain required supplementary information concerning the Center's progress in funding its obligation to provide pension benefits to its employees . 4 120219a HCBOC Page300 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019 Government-Wide Financial Analysis As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of resources of the Center exceeded liabilities and deferred inflows by $127,139,411 as of June 30, 2019. The Center's net position decreased by $25,588,171 for the year ended June 30 , 2019 . The Center's investment in capital assets (e.g ., land, buildings , machinery, and equipment) less any related debt still outstanding that was issued to acquire those items is $17,269 ,975. An additional portion of the Center's net position, $35,570,410, represents resources that are subject to external restrictions on how they may be used . The remaining balance of $74,299,026 is unrestricted . Table A-1 Condensed Statement of Net Position June 30, 2019 2018 Current and other assets $ 124,372,313 $ 150,454,719 Capital assets 17,269,975 13,670,616 Total Assets 141,642,288 164,125,335 Deferred outflows of resources 9,407,845 10,359,679 Current liabilities 16 ,964,182 16,804,197 Long-term liabilities 6,766,522 4,801 ,293 Total Liabilities 23,730,704 21,605,490 Deferred inflows of resources 180 ,018 151,942 Net Position : Investment in capital assets 17,269,975 13,670,616 Restricted 35,570,410 29,956,071 Unrestricted 74,299,026 109,100,895 Total Net Position $ 127,139,411 $ 152 ,727 ,582 5 120219a HCBOC Page301 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019 Table A-2 Condensed Statement of Changes in Net Position Year Ended June 30, 2019 2018 Revenues : Restricted intergovernmental revenues: Federal $ 7,954,535 $ 6,907,231 State 24,273,527 28,847,514 Medicaid 268,788,584 270,305,695 Other local 12,024,126 12,085,951 Total Revenues 313,040,772 318 ,146,391 Expenses: Administration 4,907,230 4,323,413 Medicaid administration 34,667,980 33,054,604 Contract services 299,053,733 285,485,165 Total Expenses 338,628,943 322,863,182 Change in Net Position (25,588,171) (4,716,791) Net position , beginning, previously reported 152,727,582 158,089,199 Cumulative effect adjustment (GASB 75) (644,826) Net position, beginning 152 ,727,582 157,444,373 Net position, ending $ 127,139,411 $ 152,727,582 The Center's net position decreased by $25,588,171 as a result of operations. Key elements of this activity are as follows: In fiscal year 2018-2019, State Single Stream funding decreased by approximately $1.8M from fiscal year 2017-2018. As a result, the Center backfilled approximately $18.0M of State Single Stream reductions with other funding . Administration and contract expenses increased as the Center expanded integrated healthcare , implemented community expansion projects, and increased rates to enhance the quality of service to its members. Budgetary Highlights-During the year, the Center revised the budget on several occasions. The final revision of the Center's operating budget amendments includes the following: 1) Recognition of any additional state funding allocations. 2) Each cost center was reviewed for actual revenues and expenditures to ensure that the Center's expenditures would not exceed appropriations for any cost center. 3) Updated Medicaid capitation funding for services and administration . Capital Asset and Debt Administration Capital Assets -The Center's investment in capital assets as of June 30 , 2019 totals $17 ,269,975 (net of accumulated depreciation). These assets include construction in progress , land . buildings, and equ i pment. 6 120219a HCBOC Page302 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2019 During the current year, the Center acquired new assets of $4,311,700. These additions include the construction costs related to the future Adult Facility Based Crisis center in Asheboro , North Carolina, land acquisition costs and construction costs of the planned Child Facility Based Crisis center in Rockingham, North Carolina, and land and building purchase in Archdale North Carolina. Additional information regarding the office building and Adult Facility Based Crisis center can be found in the Supplementary Information. Additional information on the Center's capital assets can be found in the Notes to the Financial Statements. Long-term debt -As of June 30, 2019, the Center had no debt outstanding. Budget Highlights for the Year Ending June 30, 2020 The Center's fiscal year budget begins on July 1 and ends on June 30 . Highlights for the Board-approved $342.4M fiscal year 2019 -2020 Continuation Budget include: 1) Adjustments for changes in the Medicaid Per Member, Per Month ("PMPM") rate beginning July 1, 2019, 2) Removal of all one-time state/federal allocations, 3) Budget allocation of county general funding in the amount of $11.5 million to support county outpatient units and , 4) Adjustments for Single Stream reductions that will continued to be filled with fund balance appropriations. In addition, the Center had two project ordinances for fiscal year 2018-2019 totaling $10,864,412 . The first project ordinance is for construction of Adult Facility Based Crisis ("FBC ") Center in Asheboro, North Carolina. The FBC system of care will include: (1) a 16-bed non-medical unit to provide an alternative to hospitalization for adults experiencing behavioral health crisis; (2) six "observation chairs ", providing an observation period for a person to be treated for their illness and their level of care need assessed for up to 23 hours, and (3) the availability of 24/7 routine, urgent, and emergent assessments as well as involuntary commitment evaluations. The project authorization for the new FBC is $5 ,149,000 of which $4,964,334 has been expended as of June 30, 2019. The second project ordinance is for the Facility Based Crisis Center Richmond County, North Carolina. The FBC system of care will include: (1) a 16-bed non -medical unit to provide an alternative to hospitalization for children experiencing behavioral health crisis; (2) the ava ilability of 24f1 routine, urgent, and emergent assessments as well as involuntary commitment evaluation; (3) it includes dai ly outpatient services walk-in crisis clinic. The project authorization for the new FBC is $5 ,715,412, of which $1,585,611 has been expended as of June 30, 2019. The Center plans to reinvest fund balance in additional projects to improve the quality and quantity of services for its members . Requests for Information This report is designed to provide an overview of the Center's finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to : Finance Officer Sandhills Center for Mental Health . Developmental Disabilities and Sub sta nce Abuse Services Po st Office Box 9 West End , North Carolina 27376 7 120219a HCBOC Page303 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES STATEMENT OF NET POSITION JUNE 30, 2019 ASSETS Current Assets: Cash and cash equivalents Due from other governments Other receivables Prepaid insurance Total Current Assets Noncurrent Assets: Restricted cash Capital assets : Non-depreciable Depreciable, net of accumulated depreciation Total capital assets, net Total Non current Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Pension deferrals Other postemployment benefits deferrals Total deferred outflows of resources LIABILITIES Current Liabilities: Accounts payable and accrued liabilities Incurred but not reported -medicaid claims Incurred but not reported -other claims Compensated absences payable Total Current Liabilities Noncurrent Liabilities: Net pension liability Other postemployment benefits liability Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Pension deferrals Other postemployment benefits deferrals Total deferred inflows of resources NET POSITION Investment in capital assets Restricted for: Medicaid risk reserve Unrestricted Total Net Position The accompanying notes to the financial statements are an integral part of this statement. $ 85,944,487 2,507,326 196,130 153,960 88,801,903 35,570,410 7,736,888 9,533,087 17,269,975 52,840,385 141,642,288 9,394,056 13,789 9,407,845 3,645,481 11,640,011 251,971 1,426 ,719 16,964,182 5,242,637 1,523,885 6,766,522 23,730,704 27,140 152,878 180,018 17,269 ,975 35 ,570,410 74 ,299,026 $ 127 ,139,411 8 120219a HCBOC Page304 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2019 Operating Revenues: Restricted intergovernmental revenues: Federal $ 7,954,535 State 24,273,527 Medicaid 268,788,584 Other local revenues 12,024,126 Operating Revenues 313,040,772 Operating Expenses : Administration 4,907 ,230 Medicaid administration: General 22,017,319 Mental health/substance abuse 5,133,501 Developmental disabilities 7,517,160 Contract services : Development disabilities 7,877,274 Mental health 30,943,728 Substance abuse 16,675,797 Medicaid waiver 243,556,934 Total Operating Expenses 338,628,943 Change in Net Position (25,588,171) Net position, beginning of year 152,727,582 Net position, end of year $ 127,139,411 The accompanying notes to the financial stateme nts are an inte g ral part of th is st atement. 9 120219a HCBOC Page305 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2019 Cash flows from operating activities: Cash received from third party vendors Cash payments to suppliers for good and services Cash payments to employees for services Net cash from operating activities Cash flows from capital and related financing activities: Purchase of capital assets Net cash from capital and related financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating loss to net cash from operating activities: Loss from operations Adjustments to reconcile loss from operations to net cash from operating activities: Depreciation Changes in assets and liabilities Due from other governments Accounts receivable Prepaid insurance Deferred outflows of resources Accounts payable and accrued liabilities Incurred but not reported -medicaid Incurred but not reported -other Compensated absences payable Net pension liability Other post employment liability Deferred inflows of resources Net cash used in operating activities Cash and cash equivalents per statement of net position: Unrestricted Restricted Total cash and cash equivalents per statement of net position The accompanying notes to the financial statements are an integral part of this statement. $ 312,914,410 (308,837,784) (20,617,941) (16,541,315) (4,311,700) (4 ,311,700) (20,853,015) 142,367,912 $ 121,514,897 $ {25,588,171) · 712 ,341 5,443,086 (126,363) (87,332} 951,834 1,461,979 (1,346,139} (102,778) 146,923 1,929,770 35,459 28,076 $ (16,541 ,315) $ 85,944,487 35,570,410 $ 121,514,897 10 120219a HCBOC Page306 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 1-Summary of significant accounting policies The basic financial statements of Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services (the "Center") have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units . The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Center's accounting policies are described below. Reporting Entity-The Center is a Local Management Entity-Managed Care Organization ("LME-MCO") designated by and functioning under the control of the North Carolina Department of Health and Human Services to provide mental health, developmental disabilities , and substance abuse services in Moore, Randolph, Hoke, Richmond, Montgomery, Anson, Lee, Harnett, and Guilford counties . The services include reviewing and evaluating the area needs and programs in mental health, intellectual developmental disabilities, substance use and related fields, and developing jointly with the North Carolina Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, an annual plan for the effective development, use, and control of state and local facilities and resources in a comprehensive program of mental health service for the residents of the area. The Center, which is governed by a board of directors that includes representatives from each of the nine counties the Center serves, is an area authority empowered by Chapter 122C of the North Carolina General Statutes with the responsibility to oversee and control all activities related to mental health, developmental disabilities, and substance abuse services in its target area. The Center has no component units, which under generally accepted accounting principles are legally separate entities for which the Center is financially accountable. The Center has been disclosed as a joint venture on the financial statements of Moore, Randolph, Hoke, Richmond, Montgomery, Anson, Lee, Harnett, and Guilford counties. Descnption ofa Local Management Entity-Managed Care Organization (LME-MCO)-An LME-MCO is an agency in the state of North Carolina, created by North Carolina General Statute 122C, that plans, develops, implements, and monitors behavioral health services within a specified geographic area, according to state requirements. This includes developing a full range of services that provide inpatient and outpatient treatment, services, and/or supports for both insured and uninsured individuals. These services are primarily funded by federal and state grants . The LME-MCO agency also manages behavioral health services in a specific geographic area provided through the state's Medicaid 191 S(b)(c) Waiver plan . Under this plan, the Center receives a contractual capitated fee per member per month and coordinates care through a defined network of providers. physicians , and hospitals . Basis of Presentation, Government-Wide Statements-The statement of net position and the statement of revenues , expenses, and changes in net position display information about the primary government. These statements include the financial activities of the overall government. Eliminations have been made to minimize the double counting of internal activities . Business-type activities generally are financed through patient fees , intergovernmental revenues, and other non -e xchange transactions. Basis of Presentation, Fund Financial Statements -The fund financial statements provide information about the Center's funds. The Center reports one proprietary fund: Enterprise Fund -The Enterprise Fund is the primary operating fund of the Center. The Enterprise Fund accounts for all financial resources . Additionally, the Center has le gally adopted a Capital Projects Fund which is consolidated into the Enterprise Fund . The budgetary comparison for the Capital Projects Fund has been included in the supplementary information . 11 120219a HCBOC Page307 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 1-Summary of significant accounting policies (continued) Measurement Focus and Basis of Accounting-In accordance with North Carolina General Statutes, all funds of the Center are maintained during the year using the accrual basis of accounting. Government-Wide Financial Statements -The government-wide financial statements are reported using the economic resources measurement focus . The government-wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place . Non-exchange transactions, in which the Genter gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants, entitlements, and donations. On an accrual basis, revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Fund Financial Statements-Certain supplementary information for the fund statements is reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in the fund statements. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources . Under the terms of grant agreements, the Center funds certain programs by a combination of specific cost- reimbursement grants, categorical block grants, and general revenues. Thus when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the Center's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants , and then by general revenues. Budgetary Data -As required by North Carolina General Statute 159-42 (c-d), the Genter maintains budgetary controls over all funds. A budget is adopted annually by the Board of Directors. All annual appropriations lapse at the fiscal year-end. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the departmental level for all annually budgeted·funds. Any revisions that alter total expenditures of any fund must be approved by the governing board. During the year, several amendments to the original budget were necessary. By June 1 the budget and the budget message shall be submitted to the governing board. A public hearing on the budget shall be scheduled at this time. The budget ordinance must be adopted by July 1 of the fiscal year or the governing board must adopt an interim budget that covers that time until the annual ordinance can be adopted . Use of Estimates-The preparation of financial statement in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates _ Deposits and Investments -All deposits of the Center are made in board-designated official depositories and are secured as required by state law [G .S. 159-31] Official depositories may be established with any bank or savings and loan association whose principal office is located in North Carolina . Also, the Center may establish time deposit accounts such as NOW and SuperNOW accounts . money market accounts, and certificates of deposit. 12 120219a HCBOC Page308 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 1-Summary of significant accounting policies (continued) State law [G.S 159-30(c)J authorizes the Center to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States, obligations of the state of North Carolina, bonds and notes of any North Carolina local government or public authority, obligations of certain nonguaranteed federal agencies, certain high quality issues of commercial paper and bankers' acceptances, and the North Carolina Capital Management Trust ("NCCMT'). The Center's investments with a maturity of more than one year at acquisition and non-money market investments are reported at fair value as determined by quoted market prices. The securities of the NCC MT Government Portfolio, a SEC-registered (2a-7) money market mutual fund, are valued at amortized cost. Cash and Cash Equivalents -The Center pools money from several accounts to facilitate disbursement and investment and to maximize investment income. All cash and investments are essentially demand deposits and are considered cash and cash equivalents. Prepaid Items -Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements and expensed as the items are used. Restricted Assets -With the execution of the Medicaid waiver contract between the North Carolina Department of Health and Human Services, the Division of Medical Assistance ("OMA"), and the Center , a restricted risk reserve account was established to maintain a minimum required balance for obligations of the contract. Withdraws and disbursements must be approved by OMA. The balance of the risk reserve account is $35,570,410 at June 30, 2019, and is considered to be noncurrent. When both restricted and unrestricted resources are available for use (use is approved by the third party who required the restriction if applicable), the Center uses restricted resources first, then unrestricted resources as they are needed . Due from Other Governments and Other Receivables -All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts when appropriate. This amount is estimated by analyzing the percentage of receivables that were written off in prior years and evaluating current information related to the collectability of individual receivables. The Center has no allowance for doubtful accounts in the current year. Capital Assets-Capital assets are recorded at original cost. Donated capital assets are recorded at their estimated fair value at the date of donation . The minimum capitalization cost is $5 ,000 for buildings , improvements, and equipment. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Capital assets of the Center are depreciated on a straight-line basis over the following estimated useful lives: Buildings Equipment Years 15 to 40 3 to 10 Deferred Outflows of Resources -In addition to assets, the statement of net position reports a separate sec tion for de fer red outflows of resources _ This separate financial statement element, deferred outflows of resources , represents a consumption of net position that applies to a future period and so will not be recogn ized as an expense or expenditure until then. The Center has two items that meet this criterion, pension and other postemployment benefit ("OPEB ") deferrals . · 13 120219a HCBOC Page309 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 1-Summary of significant accounting policies (continued} Compensated Absences-The vacation policy of the Center provides for the accumulation of up to 30 days earned vacation leave with such leave being fully vested when earned. For the Center's government-wide statements, an expense and a liability for compensated absences and the salary-related payments are recovered as the leave is earned. The Center's sick leave policy allows for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. During fiscal year end June 30, 1995, the Center adopted a policy of voluntary shared leave. This policy provides an opportunity for employees with accumulated vacation or sick leave to assist another affected by a medical condition that required absence from duty for a prolonged period of time resulting in possible loss of income due to lack of accumulated leave. Since the Center has obligation for the sick leave when it is taken, and may be used towards length of seNice at time of employees' retirement. Incurred but Not Reported-Medicaid Claims-Under the Medicaid 1915(b)( c) Waiver, the Center pays providers for Medicaid claims in the Center's 9-county catchment area. The Center estimates claims incurred but not reported ("IBNR ") and adds that to claims reported but not paid ("RBNP ") as of June 30, reporting the total as Incurred but not reported-Medicaid claims . RBNP claims include all eligible federal, state, and local claims related to the year ended June 30, 2019, with the exception of Medicaid claims where the eligibility is longer and the liability is not known. IBNR was estimated to be $11,640,011 as of June 30 , 2019. Incurred but Not Reported -Other Claims -The Center utilizes a third party to track its internal health insurance claims. The estimate of incurred but not reported claims related to the Center's internal health insurance is comprised of the claims incurred for the Center's Medical, Dental, and Prescription Insurance reduced by an estimated factor for the percent complete the payout for the claims incurred. The liability was estimated to be $251,971 as of June 30, 2019 . Net Pension Liability -For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Government Employees' Retirement System ("LGERS") and additions to/deductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan members' contributions are recognized in the period in which the contributions are due . The Center's employer contributions are recognized when due and the Center has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS . Investments are reported at fair value. Net OPEB Liability-For purposes of measuring the net OPEB liability, deferred outflows of resources, and deferred inflows of resources related to OPES and OPEB expense , member. and employer contributions are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the term of the OPEB plan. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations . Deferred Inflows of Resources -In addition to liabil ities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element. deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then . The Center has two items that meet the criterion for this category, pension and OPEB deferrals. 14 120219a HCBOC Page310 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 1.....:....summary of significant accounting policies (continued) Net Position-Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Net invested in capital assets consists of capital assets, net of accumulated depreciation. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through state statute . Restricted amounts for the Medicaid Risk Reserve include the portion of fund balance restricted by the Medicaid 1915 b/c waiver. Unrestricted net position represents the remaining net position that does not meet the definition of net invested in capital assets or restricted net position . Fund Balances -In the fund financial statements, fund balance is composed of classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The fund financial statements classify fund balances as follows : Nonspendabfe Fund Balance -This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Prepaid Insurance -The portion of fund balance that is not an available resource because it presents the year-end balance of prepaid insurance, which is not a spendable resource . Restricted Fund Balance-This classification includes amounts that are restricted to specific purposes externally imposed by law. Restricted for Stabilization by State Statute -The portion of fund balance that is restricted by State Statute [G .S. 159-8(a)]. Restricted for Medicaid Risk Rese,ve -The portion of fund balance that is restricted by an agreement with the North Carolina Department of Health and Human Services Division of Medical Assistance . The agreement requires that the Center maintain a reserve equal to 2% of the total Medicaid payments received . This reserve is fully funded at June 30, 2019. Assigned Fund Balance -The portion of fund balance that has been designated by the Board for future growth and expansion. Unassigned Fund Balance -The portion of fund balance that has not been restricted, committed , or assigned to specific purposes or other funds. The Center has a revenue spending policy that provides guidance for programs with multiple revenue sources . The Finance Officer will use resources in the following hierarchy: bond proceeds, federal funds, state funds, local non- Center funds , and Center funds. For purposes of fund balance classification , expenditures are to be spent from restricted fund balance first, followed in order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority to deviate from this policy ifit is in the best interest of the Center. The Center has not adopted a minimum fund balance policy for the Enterprise Fund. 15 120219a HCBOC Page311 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 2-Cash and cash equivalents Deposits-All of the deposits of the Center are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized INith securities held by the Center's agents in the unit's name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Center, these deposits are considered to be held by the Center's agent in its name. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits . The State Treasurer does not confirm this information with the Center or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the Center under the Pooling Method, the potential exists for under-collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Center has no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance . The Center complies with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured . The organization has no formal policy regarding custodial credit risk for deposits. At June 30, 2019, the Center's deposits had a carrying amount of $120,609,544 and a bank balance of $121,007,002. Of the bank balance, $500,000 was covered by federal depository insurance and the remainder was covered by collateral held under the pooling method. Petty cash at June 30, 2019 totaled $1 ,567 . Note 3-lnvestments At June 30, 2019, the Center had $903 ,786 invested with the North Carolina Capital Management Trust's Cash Portfolio. All investments are measured using the market approach ; using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. The Center's investment with the North Carolina Capital Management Trust's Cash Portfolio is considered a Level 1 investment , which is valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Interest Rate Risk -Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Center does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates . Credit Risk-The Center's investment in the North Carolina Management Trust 's Cash Portfolio carries a credit rating of AAAm by Standard & Poor's. The Cash Portfolio seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity , and to maintain a constant net asset value of $1 .00 per share through investment in high grade money market instruments , including obligations of the U.S. government and the state of North Carolina, and in bonds and notes of any North Carolina local government or public authority . Concentration of Credit Risk-The Center has no policy regarding the limit on the amount that the Center may invest in any one issuer. As of June 30 , 2019 , 100% of the Center's investments are in the North Carolina Capital Management Trust's Cash Portfolio . 16 120219a HCBOC Page312 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES ANO SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 4-Due from other governments Amounts due from other governments at June 30, 2019, were as follows: Medicaid receivable Other receivables Total $ 1,675,414 831,912 $ 2,507,326 Management has determined that there was not a need to establish an allowance for uncollectible accounts at June 30, 2019. Note 5-Capital assets Capital asset activity for the year ended June 30, 2019 was as follows: Balance Balance July 1, 2018 Increases Decreases June 30, 2019 Capital assets not being depreciated : Land $ 884,122 $ 176,085 $ $ 1,060,207 Construction in progress 3,006,789 3,669,892 6,676,681 Total capital assets not being depreciated 3,890,911 3,845,977 7,736,888 Capital assets being depreciated: Buildings 11,894,212 465,723 (33,450) 12,326,485 Furniture and other equipment 5,066,334 (527,879) 4,538,455 Total capital assets being depreciated 16,960,546 465,723 (561,329) 16,864,940 Less accumulated depreciation for: Buildings 4,319,794 473,090 (33,450) 4,759,434 Furniture and other equipment 2,861,047 239,251 (527 ,879) 2,572,419 Total accumulated depreciation 7,180,841 712,341 (561,329) 7,331,853 Capital assets being depreciated, net 9,779,705 $ (246,618) $ 9,533,087 Capital assets , net $ 13,670,616 $ 17,269,975 Note 6-Payables Accounts payable, incurred but not reported claims, and other current liabilities at June 30, 2019 were as follows: Payables Vendors Incurred but Compensated Not Reported Absences Claims Total $ 3,645,481 $ 1,426,719 $11,891,982 $ 16,964,182 17 120219a HCBOC Page313 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 7-Retirement plan Defined Contribution Pension Plan -The Center is a participating employer in the statewide Local Governmental Employees' Retirement System, a cost-sharing multiple-employer defined benefit pension plan administered by the state of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers of participating local governmental entities. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members -nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Comprehensive Annual Financial Report ("CAFR") for the state of North Carolina. The state's CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 141 O Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454, or at www.osc.nc .gov. Benefits Provided-LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average of a member's four highest consecutive years of compensation . Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service. Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return of the member's contributions . The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains of the plan . Contributions-Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. The Center employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Center's contractually required contribution rate for the year ended June 30 , 2019 was 7 .75% for general employees, actuarially determined as an amount that, when combined with employee contributions. is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Center were $1 ,323 ,815 for the year ended June 30, 2019. Refunds of Contnhutions-The Center's employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60-day waiting period after service termination before the refund may be paid . The acceptance of a refund payment cancels the individual 's right to employer contributions or any other benefit provided by LGERS. Pension Liabilities, Pension Expense. and Deferred Outflows of Reso urces and Deferred Inflows of Resources Related to Pensions -At June 30, 2019, the Center reported a liability of $5 ,242 ,637 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31 , 201 7. The total pension liability was then rolled forward to the measurement date as of June 30, 2018 utilizing update procedures incorporating the actuarial assumptions. The Center's proportion of the net pension liability was based on a projection of the Center's long-term share of future payroll covered by the pensio n plan, re lated to the projected fu t ure payroll covered by the pension plan of all participating LGERS employers, actuarially determ ined . At June 30 , 2018, the Center's proportion was 0.221 % which was an increase of 0 .004% from its proportion measured at June 30 . 2017 . 18 120219a HCBOC Page314 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 7-Retirement plan {continued) For the year ended June 30, 2019, the Center recognized pension expense of $4,148,085. At June 30, 2019, the Center reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Changes of assumptions Net differences betweem projected and actual earnings on pension plan investments Changes in porportion and diffeences between the Center's contributions and proportionate share of contributions The Center's contributions subsequent to the measurement date Total Deferred Outflows of Resources $ 808,815 1,391,194 719,659 5 ,150,573 1,323,815 $ 9,394,056 Deferred Inflows of Resources $ 27,140 $ 27,140 $1,323 ,81 S reported as deferred outflows of resources related to pensions resulting from the Center's contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Years Ending June 30, / 2020 2021 2022 2023 Amount $ 4,088,303 3,240 ,202 270,777 443,819 $ 8,043 ,101 Actuarial Assumptions -The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions , applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 3 . 50 to 8.1 O %, including inflation and productivity factor of 3. 50% 7 .00 %, net of pension plan investment ex pense , including inflation The plan currently uses mortality tables that vary by age , gender, employee group (i.e ., general, law enforcement officer) and health status (i .e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U S. population . The healthy mortality rates also contain a provision to reflect future mortality improvements The actuarial assumptions used in the Dec e mber 31 , 20 17 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through De cember 31 , 2014. 1 9 120219a HCBOC Page315 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 7-Retirement plan (continued} Future ad hoc Cost of Living Adjustment (COLA) amounts are not considered to be substantively automatic and are therefore not included in the measurement. The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S . Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. other asset categories and strategies' return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2017 are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 29.00% 1.40% Global equity 42 .00% 5.30% Real estate 8.00% 4.30% Alternatives 8.00% 8.90% Credit 7.00% 6.00% Inflation protection 6.00% 4 .00% 100 .00% The information above is based on 30-year expectations developed with the consulting actuary for the 2016 asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS . The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3. 00%. All rates of return and inflation are annualized. Discount Rate-The discount rate used to measure the total pension liability was 7 .00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore , the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 20 120219a HCBOC Page316 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 7-Retirernent plan (continued) Sensitivity of the Center's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -The following presents the Center's proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what the Center's proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.00%) or one percentage point higher {8.00%) than the current rate: 1% Decrease (6.00%) Discount Rate 1% Increase (7 .00%) (8.00%) The Center's proportionate share of the net pension liability $ 12,593,272 $ 5,242,637 $ (899,666) ======= Pension Plan Fiduciary Net Position -Detailed information about the pension plan's fiduciary net position is available in the separately issued Comprehensive Annual Financial Report for the state of North Carolina. Note 8-0ther postemployment benefits Plan Description and Benefits Provided -The Center administers a single-employer defined benefit Health Care Plan. At retirement, employees with at least 15 consecutive years of service with the Center and at least 60 years of age have the option of continuing medical coverage under the current plan until the earlier of age 65, obtain coverage under another comparable plan, or become eligible for Medicare. The Center's Board may amend the benefit provisions . No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. A separate report was not issued for the plan. Membership of the Health Care Plan consisted of the following at June 30, 2017, the date of the latest actuarial valuation: Retired members Terminated plan members entitled to but not yet receiving benefits Active plan members Total 3 289 292 Total OPEB Liability-The Center's total OPEB liability of $1,523,885 was measured as of June 30, 2018 and was determined by an actuarial valuation as of that date. 21 120219a HCBOC Page317 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 8-0ther postemployment benefits (continued) Actuarial Assumptions and Other Inputs -The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions and other inputs applied to all periods included in the measurement unless otherwise specified: Inflation Real wage growth Wage inflation Salary increases, including wage inflation Municipal Bond Index Rate Prior Prior Measurement Date Measurement Date Healthcare cost trend rates : 2.50% 1.00% 3.50% 3.50% -7 .75% 3.56% 3.89% Pre-Medicare 7 .50% for 2017 decreasing to an ultimate rate of 5 .00% by 2023 The discount rate is based on the yield of the Standard & Poor··s Municipal Bond 20-Year High Grade Rate Index as of the measurement date . Changes in the total OPEB liability: Balance at June 30, 2018 Changes for the year : Service cost Interest Differences between expected and actual experience Changes in assumtions or other inputs Benefit payments Net changes Balance at June 30 , 2019 Total OPEB Liability $ 1,488,426 108,419 52,861 (77,714) (40,925) (7,182) 35,459 $ 1,523 ,885 Changes in assumptions and other inputs reflect a change in the discount rate from 3.56% to 3.89%. Mortality rates were based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table. The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period January 2010 through December 2014 . 22 120219a HCBOC Page318 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 8-0ther postemployment benefits (continued) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate -The following presents the total OPES liability of the Center, as well as what the Center's total OPES liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.89%) or 1 percentage point higher (4.89%) than the current discount rate: Total OPES liability 1% Decrease (2.89%) $ 1,651,550 Discount Rate (3.89%) $ 1,523,885 1% Increase (4.89%) $ 1,406,998 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates -The following presents the total OPEB liability of the Center, as well as what the Center's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: 1% Decrease Current 1% Increase Total OPEB liability $ 1,357,955 $ 1,523 ,885 $ 1,719,688 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB-For the year ended June 30, 2019, the Center recognized OPES expense of $144,657. At June 30, 2019, the Center reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ $ 67,686 Changes of assumptions 85.192 Benefits payments and administrative costs made subsequent to the measurement date 13 ,789 Total $ 13,789 $ 152,878 $13,789 reported as deferred outflows of resources related to OPEB resulting from the Center's contributions subsequent to the measurement date will be recognized as a decrease of the total OPES liability in the year ended June 30, 2020. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPES expense as follows : Years Ending June 30, Amount 2020 $ (23,926) 2021 (23,926) 2022 (26,923) 2023 (23,926) 2024 (23,926) Thereafter (30,251) $ (152 ,878) 2 3 120219a HCBOC Page319 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 9-401(k) plan The Center offers all employees a qualified deferred compensation plan. The Center contributed an amount equal to 1.37% of eligible staff annual base salary for the year ended June 30 , 2019. In addition to the Center's contribution, the employee may contribute a tax-deferred percentage of their salary each year. Center and employee contributions are considered fully-vested when made. The Center's contributions for the year ended June 30, 2019 totaled $239 ,036. Note 10-0perating leases The Center has operating leases for office facilities and certain equipment with various terms . Future minimum lease payments under noncancelable operating leases at June 30, 2019 are as follows : Years Ending June 30, 2020 2021 2022 2023 2024 Lease expense under these operating leases for the year ended June 30, 2019, was $168 ,120 . Note 11-Risk management $ $ Amount 197,520 120 ,016 114 ,968 70 ,365 3,748 506 ,61 7 The Center is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions ; injuries to employees ; and natural disasters. The Center. carries commercial insurance for gen eral and professional liability coverage up to $3 ,000,000 aggregate , auto liability up to $2,000 ,000 for each accident, director's and officer's liab ility up to $3 ,000 ,000 . and property coverage of $18,435,457 for buildings and $1,150 ,600 for business and personal property . Claims have not exceeded coverage in any of the last three fiscal years. As the Center has no facilities within a recognized flood zone , it elected not to ca rry additional flood insurance coverage In accordance with G.S. 159-29, the Center's employees that have access to $100 or more at any given time of the Center's funds are pertormance bond ed through a commercial surety bond . The finance officer is bonded for $300 ,0 00 and all remaining employees that have aocess to funds are bonded under a blanket bond for $500 ,000. Th e Center self-insures for employee health and accident claims upto a stop loss provision of $80,000 per employee , per occurrence and an aggregate stop loss provision of $1,000,000. The Center carries commercial insurance coverage above th es e limits. A summary of ch a nges in the self-insured health claims liability is as follows : Bal a nc e at July 1, 2018 Claims incurred Cl aims paid Claim s inc ur r ed , but not reported at year-end Balan ce at Jun e 30 , 201 9 $ 354 ,749 3 ,255 ,870 (3 ,6 10 ,61 9) 25 1,971 $ 251 ,9 71 24 120219a HCBOC Page320 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019 Note 12-Commitments and contingencies The Center has received proceeds from several federal and state grants. Periodic audits of these grants are required, and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies. From time to time, the Center is party to other pending claims and legal proceedings . Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the Center's financial position or results of operations. Note 13-Long-term obligations The following is a summary of changes in the Center's long-term obligations for the fiscal year ended June 30, 2019: Balance July 1, 2018 Increases Decreases June 30, 2019 Net Pension Liability $ 3,312,867 $ 3,253,585 $ 1,323 ,815 $ 5,242,637 Net OPES Liability 1,488,426 144,657 109,198 1,523,885 $ 4,801,293 $ 3,398,242 $ 1,433,013 $ 6 ,766,522 Note 14-Related party transactions The Center receives financial support from each of the counties in its catchment area , which includes Moore, Randolph, Hoke, Richmond, Montgomery, Anson, lee, Harnett, and Guilford counties . During the year ended June 30 , 2019. revenues received from these counties amounted to $12,024.126 . Note 15-Economic dependence The Center receives approximately 10% of its revenue from state and federal (passed through the state) intergovernmental revenue, and 86% of its revenue from the Medicaid Waiver contract. for the various programs the Center administers . Any significant change, either increase or decrease, in funding for these programs could result in a material change in the operations of the Center. Note 16-Subsequent events Management has evaluated the subsequent events through October 23, 2019, in connection with the pr ep aration of these financial statements , which is the date the financial statements were available to be issued . 25 120219a HCBOC Page321 This page left blank intentionally. 120219a HCBOC Page322 REQUIRED SUPPLEMENTARY INFORMATION • Schedule of Changes in the Total OPES Liability and Related Ratios Schedule of Proportionate Share of the Net Pension Liability -Local Government Employees' Retirement System • Schedule of Contributions to Local Government Employees' Retirement System and Notes to the Required Schedules for Local Government Employees' Retirement System 120219a HCBOC Page323 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2019 Total OPEB Liability: Service cost $ Interest Differences between expected and actual experience Changes of assumptions Benefits payments Net changes in total OPEB liability Total OPEB liability -beginning Total OPEB liability -ending $ Covered Payroll $ Total OPEB liability as a percentage of covered payroll Notes to the Required Supplementary Information Changes of assumtions: Changes of assumtions and other inputs reflect the effects of changes in the discount rate of each period. The following are the discount rates used in each period : Fiscal Year 2018 2019 2019 106,419 52,861 (77,714) (40,925) (7,182) 35,459 1,488,426 1 ,523,885 17,434,376 6.74% Rate 3.56% 3.89% 2018 $ 114,426 42,161 (66,782) (4,095) 85,710 1,402,716 1,488,426 $ 14,820,815 10.04% 26 120219a HCBOC Page324 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF PROPORTIONATE SHARE AND CONTRIBUTIONS TO LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM AND NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2019 2019 2018 2017 Schedule of Proportionate Share of the Net Pension Liability Center's proportion of the net pension liability(%) 0.2210% 0.2169% 0.1778% Center's proportion of the net pension liability ($) $ 5,242,637 $ 3,312,867 $ 3,773,936 Center's covered-employee payroll 15,674,896 14,582,699 14,657,934 Center's proportionate share of the net pension liability as a percentage of its covered-employee payroll 33 .4 5% 22 .72% 25.75% Plan fiduciary net position as a percentage of the total pension liability (asset) 91 .63% 94 .18% 91.47% Schedule of Contributions Contractually required contribution $ 1,323,815 $ 1,175,092 $ 1,057,249 Contributions in relation to the contractually required contribution 1,323,815 1,175,092 1,057 ,249 Contributions deficiency (excess) $ $ $ Center's covered-employee payroll $ 17,087,639 $ 15 ,674,896 $ 14,582,699 Contributions as a percentage of covered-employee payroll 7.75% 7.50% 7.25% Notes to the Required Supplementary Information The information presented in the required supplementary schedules was determined as part of the actuarial valuation at the date indicated . Additional information as of the latest actuarial valuation Valuation date Actuarial cost method amortization method Amortization period Asset valuation method Actuarial assumptions : Investment rate of return• Inflation Salary increases·· Cost-of-l iving adjus tments *Net of pension plan in ves tmen t expense , including inflation .. Inc lu di ng infla tion and productivity factor 12/31/2017 Entry Age Levet dollar, closed 12 years Asset returns in excess of or less than the expected return on market value of assets reflected over a five-year period (not greater than 120% of market value and not less that 80% of market value) 7.00% 3.00% 3.50-7.00% None 27 120219a HCBOC Page325 This page left blank intentionally. 120219a HCBOC Page326 SUPPLEMENTARY INFORMATION 120219a HCBOC Page327 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MEDICAID BALANCE SHEET JUNE 30, 2019 Medicaid Non-Medicaid Related Related Total ASSETS Current Assets: Cash and cash equivalents $ 82,271 ,230 $ 3,673,257 $ 85,944,487 Due from other governments 1,735,446 771 ,880 2,507,326 Other receivables 114,918 81,212 196,130 Prepaid insurance 153,960 153,960 Total Current Assets 84,121,594 4,680,309 88,801,903 Noncurrent Assets: Restricted cash 35,570,410 35,570,410 Capital assets : Non-depreciable 848,165 6,888,723 7,736 ,888 Depreciable, net of accumulated depreciation 7,626,470 1,906,617 9,533,087 Total capital assets, net 8,474,635 8,795,340 17,269,975 Total Noncurrent Assets 44 ,045 ,045 8,795,340 52,840,385 Total Assets 128,166,639 13,475,649 141,642,288 DEFERRED OUTFLOWS OF RESOURCES Pension deferrals 7,518,832 1,875,224 9,394,056 Other postemployment benefits deferrals 13,789 13,789 Total deferred outflows of resources 7,518,832 1,889,013 9,407,845 LIABILITIES Current Liabilities: Accounts payable and accrued liabilities 201,577 3,443,904 3,645,481 Incurred but not reported -medicaid claims 11,640,011 11,640,011 Incurred but not reported -other claims 251,971 251,971 Compensated absences payable 1,338,663 88,056 1,426,71'9 Total Current Liabilities 13 ,180,251 3,783,931 16,964,182 Noncurrent Liabilities: Net pension liability 5,242,637 5,242,637 Other postetmpoloyment benefits liability 183,317 1,340,568 1,523,885 Total Noncurrent Liabilities 5,425,954 1,340,568 6,766,522 Total Liabilities 18 ,606,205 5 ,124,499 23,730,704 DEFERRED INFLOWS OF RESOURCES Pension deferrals 27 ,140 27,140 Other postemployment benefits deferrals 152,878 152,878 Total deferred inflows of resources 27,140 152,878 180,018 NET POSITION Net investment in capital assets 8,474 ,634 8 ,795 ,341 17,269,975 Restricted 66,676,701 (31,106,291) 35 ,570,410 Unrestricted 41,840,759 32,458,267 74,299,026 Total Net Position $ 116,992,094 $ 10 ,147 ,317 $ 127 ,139,411 28 120219a HCBOC Page328 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MEDICAID INCOME STATEMENT YEAR ENDED JUNE 30 2019 Medicaid Non-Medicaid Related Related Total Operating Revenues: Restricted intergovernmental revenues: Federal $ $ 7,954,535 $ 7,954,535 State 24,273,527 24,273,527 Medicaid 268,788,584 268,788,584 Other local revenues 12,024,126 12,024,126 Operating Revenues 268,788,584 44,252,188 313,040,772 Operating Expenses: Administration 4,907,230 4,907,230 Medicaid administration: General 26,077,281 (4,059,962) 22,017,319 Mental health/substance abuse 5 ,115,455 18,046 5,133,501 Developmental disabilities 7 ,488,108 29,052 7,517,160 Contract services: Development disabilities 7,877,274 7,877,274 Mental health 30,943,728 30,943,728 Substance abuse 16,675,797 16,675,797 Medicaid waiver 243,556,934 243,556,934 Total Operating Expenses 282 ,237,778 56,391,165 338,628,943 Change in Net Position (13,449,194) (12,138,977) (25,588,171) Net position, beginning of year 130,441,288 22,286,294 152,727,582 Net position, end of year $ 116 ,992,094 $ 10,147,317 $ 127,139,411 29 120219a HCBOC Page329 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES MEDICAID STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30 2019 Medicaid Non-Medicaid Related Related Total Cash flows from operating activities: Cash received from federal, state, and local agencies $ 268,357 ,581 $ 44,556,829 $ 312,914 ,410 Cash payments to suppliers of goods and services (254,577,992) (54,259,792) (308,837,784) Cash payments to employees {38,860,844) 18,242,903 (20,617,941) Other cash payments, net 18,504,494 (18,504,494) Net cash from operating activities (6,576,761) (9,964,554) (16,541 ,315) Cash flows from capital and related financing activities: Acquisition and construction of capital assets 14,173,274 (18,484,974) (4,311,700) Net cash from capital and related financing activities 14,173,274 (18,484,974) (4,311,700) Net increase (decrease) in cash and cash equivalents 7,596,513 (28,449,528) (20,853,015) Cash and cash equivalents, beginning of year 110,245, 127 32,122,785 142,367,912 Cash and cash equivalents, end of year $ 117,841,640 $ 3 ,673,257 $ 121,514,897 Reconciliation of operating loss to net cash from operating activities: Operating loss $ (13,449,194) $ ( 12 , 138,977) $ (25 ,588.171) Adjustments to reconcile operating loss to net cash from operating activities: Depreciation 712 ,341 712,341 Changes in assets and liabilities: Due from other governments 7,335,338 (1,892,252) 5,443,086 Accounts receivable (126 ,363) (126,363) Prepaid insurance (85,934) (1,398) (87,332) Deferred outflows of resources 951,834 951,834 Accounts payable and accrued liabilities 82 ,222 1,379,757 1,461 ,979 Incurred but not reported -medicaid 1,346,139 (2 ,692 ,278) (1 ,346.139) Incurred but not reported -other (102 ,778) (102,778) Compensated absences payable (1,805 ,332) 1,952 ,255 146 ,923 Net pension liability 1,929,770 1,929,770 Other post employment liability 35,459 35,459 Deferred inflows of resources 28 ,076 28,076 Net cash from operating activities $ (6 ,576,761) $ (9 ,964,554) $ (16,541 ,315) 30 120219a HCBOC Page330 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES BALANCE SHEET {MODIFIED ACCRUAL BASIS OF ACCOUNTING) JUNE 30, 2019 ASSETS Cash and cash equivalents Due from other governments Other receivables Prepaid insurance Restricted cash Total Assets LIABILITIES Accounts payable and accrued liabilities Incurred but not reported -Medicaid claims Incurred but not reported -other claims Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES Nonspendable : Prepaid insurance Restricted : Stabilization by State Statute Medicaid Risk Reserve Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Reconciliation ot fund balance as reported in the balance sheet with the statement of net position : Total fund balance reported above Amounts reported for government activites in the statement of net position are different because : Accounts receivable not collected within 60 days after year-end is deferred in the funds Capital assets used in governmental activites are not financial resources and , therefore, are not reported in the funds Deferred outflows of resources related to the pension plan are not reported in the funds Deferred outflows of resources related to OPEB are not reported in the funds Deferred inflows of resources related to the pension plan are not reported in the funds Deferred inflows of resources related to OPEB are not reported in the funds Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds : Net pension Liabil ity Tota l OPEB liability Compensated absences payable Total Net Position $ 85,944 ,487 2,507 ,326 196 ,130 153 ,960 35,570,410 124,372,313 3,645,481 11,640,011 251,971 15,537,463 710,387 710 ,387 153,960 3,419 ,788 35,570,410 32,170,074 36,810,231 108,124,463 124,372,313 $ 108 ,124,463 710 ,387 17,269 ,975 9,394,056 13,789 (27,140) (152,878) (5 ,242,637) (1 ,523 ,885) (1,426 ,719) $ 127 ,139 ,411 31 120219a HCBOC Page331 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (MODIFIED ACCRUAL BASIS OF ACCOUNTING) YEAR ENDED JUNE 30, 2019 Variance Favorable Budget Actual (Unfavorable) Revenues: Restricted intergovernmental revenues: Federal $ 7 ,078,828 $ 7,954,535 $ 875,707 State 25,281,023 23,842,172 (1,438,851) Medicaid 273,809,686 269,219,939 (4,589,747) Other local revenues 12,031,665 12,024,126 (7,539) Total Revenues 318,201,202 313,040,772 5,160,430 Expenditures : Administrative 4,998,349 4,454,123 544,226 Medicaid administration : General 20,969,486 20,273,280 696,206 Mental health/substance abuse 5,006,504 4,710,772 295,732 Developmental disabilities 7 ,239,835 6,817,653 422 ,182 Contract services: Developmental disabilities 8,098,626 7,877,274 221,352 Mental health 33,570,672 30,943,728 2,626,944 Substance abuse 19,758,110 16,675,798 3 ,082,312 Medicaid waiver 254,228 ,607 243,713,718 10,514,889 Medicaid -other 15,000 15,000 Total Expenditures 353,885,189 335,466 ,346 18,418,843 Revenues (under) over expenditures (35,683,987} (22,425,574) (13 ,258,413) Other Financial Uses: Transfer to Capital Projects Fund (5,715,412} (5,715,412) Fund balance appropriated 41,399,399 (41,399,399) Net Change in Fund Balance $ (28,140,986) $ (28,140,986) Fund balance, beg inning of year 134,930,318 Fund balance, end of year 106 ,789,332 A legally budgeted capital projects fund is consolidated into the General Fund for reporting purposes: Excess of sources over expenditures at beginning of year 2,142,211 Transfer from General Fund 5,715,412 Expenditures (3,669 ,892 ) Removal of pr ior year completed project (2 ,852,600) Fund balance , end of year $ 108 ,124 ,4 63 32 120219a HCBOC Page332 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (CONTINUED) YEAR ENDED JUNE 30, 2019 Reconciliation from modified accrual basis of accounting to full accrual: Revenues, expenditures, and changes in fund balance to the statement of activities: Total net change in fund balance Reconciling items: Capital outlay expenditures Depreciation expense Contributions to the OPEB plan Contributions to the pension plan Compensated absences payable Pension expense OPEB plan expense Transfer to Capital Projects Fund Change in Net Position $ (28 ,140,986) 658,411 (712,340) 7 ,182 1,323,815 (146,923) (4,148 ,085) (144,657) 5,715 ,412 $ (25,588,171) 33 120219a HCBOC Page333 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (BUDGETARY BASIS-PROJECT-LENGTH BUDGETS) CAPITAL PROJECTS FUND FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2019 Actual Variance Project Prior Current Total Favorable Authorization Years Year to Date (Unfavorable) Expenditures : Capital improvements: Guilford Child Based Facility $ $ $ 126,737 $ 126,737 (126 ,737) Walker Avenue Asheboro 5 ,149,000 2 ,972 ,241 1,985,544 4,957,785 191 ,215 Richmond County 5,715,412 34,548 1,557,611 1,592 ,159 4,123 ,253 Total Expenditures 10,864,412 3,006,789 3,669,892 6 ,676,681 4,187,731 Other Financing Sources : Transfer from General Fund 10,864,412 5 ,149,000 5,715,412 10,864,412 Excess of other financing source s over expenditures $ $ 2,142 ,211 $ 2 ,045 ,520 $ 4,187,731 $ 4 ,187,731 34 120219a HCBOC Page334 COMPLIANCE SECTION 120219a HCBOC Page335 ~--Cherry BekaerelP C: CPAs & Advisors Report of Independent Auditor on Internal Control over Financia l Reporting and on Compliance and on Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Board of Directors Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services West End, North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroll er General of the United States, the accompanying financial statements of Sandhills Center for Mental Health ,' Developmental Disabilities and Substance Abuse Services (the "Center"), as of and for the year ended' June 30, 2019, and the related notes to the financial statements, which collectively comprise the Center's basic financial statements, and have issued our report thereon dated October 23, 2019. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Center's internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Center's internal control. Accordingly, we do not express an opinion on the effectiveness of the Center's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct mi sstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal co ntrol such that there is a reasonable possibility that a material misstatement of the Center's financial sta temen ts will not be prevented, or detected and co rre cted on a timely basis. A significant deficiency is a deficiency, or a co mbination of deficiencies, in internal control that is less severe th an a material weak ness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the fir st paragraph of this section and was not designed to identify all deficienc ie s in internal control that might be material weaknesses or significant deficienc ies. Given these limi tations, during our audit we did not identify any deficiencies in internal control that we consider material weaknesses. However. material weakn esses may exist that have not been identified. Compliance and Other Matters A s part of obtaining reasonable assura nce about whethe r th e Center's financial statements are free of material misstatement, we performed tests of its com pliance with certain provisions of laws. regulations, contracts and grant agreements. noncomplianc e with whi c h co uld have a direct and material effect on the determination of financial statement amounts. However. providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly , we do not express such an opinion. The results of our tests disclosed no in sta n ces of noncompliance or other matters that are required to be reported under Government Auditing Standards. 35 120219a HCBOC Page336 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Center's internal control or on compliance . This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Center's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Raleigh, North Carolina October 23, 2019 36 120219a HCBOC Page337 ~~ Cherry Bekaerrp r.., CPA s & Advisors Report of Independent Auditor on Compliance for Each Major Federal Program and Internal Control over Compliance Required by the Uniform Guidance and the State Single Audit Implementation Act To the Board of Directors Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services West End, North Carolina Report on Compliance for Each Major Federal Program We have audited the Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services' (the "Center") compliance with the types of compliance requirements described in the 0MB Compfiance Suppfement and the Audit Manual for Governmental Auditors in Notth Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the Center's major federal programs for the year ended June 30, 2019. The Center's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. · Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Audi to r's Responsibility Our responsibility is to express an opinion on compliance for each of the Center's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America ; the standards applicable to financial audits contained in Govemment Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and the State Single Audit Implementation Act. Those standards, the Uniform Guidance and the State Single Audit Implementation Act, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Center's compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances . We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program . However, our audit does not provide a legal determin ation of the Center's compliance . Opinion on Each Major Federal Program In our opinion , the Center complied, in all material respects , w it h the compliance requirements referred to above that could have a direct and material effect on each of its m ajor federal programs for the year ended June 30, 2019 . 37 120219a HCBOC Page338 Report on Internal Control over Compliance Management of the Center is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Center's internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Center's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance , yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses . However, material weaknesses may exist that have not been identified . The purpose of this report on internal control over compliance is solely to describe the scope ofour testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Raleigh , North Carolina October 23, 2019 38 120219a HCBOC Page339 c= -~ Cherry Bekaerrp CPAs &. Advis ors Report of Independent Auditor on Compliance with Requirements Applicable to Each Major State Program and on Internal Control over Compliance Required by the 0MB Uniform Guidance and the State Single Audit Implementation Act To the Board of Directors Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services West End, North Carolina Report on Compliance for Each Major State Program We have audited the Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services' (the "Center") compliance with the types of compliance requirements. described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the Center's major state programs for the year ended June 30, 2019. The Center's major state programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its state programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Center's major State programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ; and applicable sections of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"), as described in the Audit Manual for Governmental Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards, the Uniform Guidance and the State Single Audit Implementation Act, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state program occurred . An audit includes examining, on a test basis, evidence about the Center's compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances . We believe that our audit provides a reasonable basis for our opinion on compliance for each major state program . However, our audit does not provide a legal determination of the Center's compliance. Opinion on Each Major State Program In our opinion, the Center complied , in all material respects , with the compliance requirements referred to above that could have a direct and material effect on each of its major state programs for the year ended June 30, 2019 . 39 120219a HCBOC Page340 Report on Internal Control over Compliance Management of the Center is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above . In planning and performing our audit of compliance, we considered the Center's internal control over compliance with the types of requirements that could have a direct and material effect on a major state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major state program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Center's internal control over compliance . A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state program will not be prevented, or detected and corrected, on a timely basis . A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses . We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses . However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly , this report is not suitable for any other purpose . Raleigh, North Carolina October 23 , 2019 40 120219a HCBOC Page341 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 Part I -Summary of Audit Results Financial Statement Type of auditor's report issued: Internal control over financial reporting : Material weakness(es) identified? Significant deficiency(ies) identified? Noncompliance material to financial statement noted? Federal Awards · Internal control over major federal program : Material weakness(es) identified? Significant deficiency(ies) identified? Type of auditor's report on compliance for major federal programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200 .516(a)? Identification of the Major Federal Programs: Program Name Substance Abuse Preventative Treatment Block Grant Social Services Block Grant Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? ___ yes ___ yes ___ yes ___ yes ___ yes ___ yes CFDA Number 93 .959 93 .667 $750 ,000 ___ yes Unmodified X no _x __ nonereported X no X no _X __ nonereported Unmodified X no --- X no --- 41 120219a HCBOC Page342 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED} YEAR ENDED JUNE 30, 2019 State Awards Internal control over major state program : Material weakness(es} identified? Significant deficiency(ies) identified? Type of auditor's report on compliance for major state programs : Any audit findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act? Identification of Major State Programs: Program Name Single Stream Line Funding Mental Health Crosscutting Part II -Financial Statement Findings None noted. ___ yes yes --- ___ yes Part Ill -Federal Award Findings and Questioned Costs None reported. Part IV -State Award Findings and Questioned Costs None reported . X X --- Unmodified X --- no none reported no 4 2 120219a HCBOC Page343 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS YEAR ENDED JUNE 30, 2019 None noted . 4 3 120219a HCBOC Page344 This page left blank intentionally. 120219a HCBOC Page345 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 2019 Program Name FEDERAL AWARDS U.S. Department of Health and Human Services Substance Abuse and Mental Health Service Administration: Passed-through the N.C. Department of Health and Human Services: Division of Mental Heatlh, Developmental Disabilities and Substance Abuse Services : Substance Abuse and Mental Health Service - Projects of Regional and National Significance Block Grant for Community Mental Health Services - Community-Based Program -Mental Health State Targeted Response to the Opioid Crisis Grants Federal Emergency Management Agency (FEMA) - Assistance Listing Crisis Counseling Social Se rv ices Black Grant -Community-Based Program -Mental Health, Developmental Disabilities, Substance Abuse Block Grant for Prevention and Treatment of Substance Abuse -Community -Based Program - Substance Abuse Total U .S. Department of Hea lth and Human Se rvices Total Federal Awards and State Matches See notes to sc hedule of expenditures of federal and state awards. CFDA Number 93.243 93.958 93 .788 97.032 93 .667 93.959 Federal Expenditures $ 206 ,755 520,907 1,561,144 121,128 457,050 4,634,617 7,501,601 7,501,601 State Expenditures $ 44 120219a HCBOC Page346 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS (CONTINUED) YEAR ENDED JUNE 30, 2019 CFDA Federal State Program Name Number Expenditures Expenditures STATE AWARDS N.C . Department of Health and Human Services: Division of Mental Heatlh, Developmental Disabilities and Substance Abuse Services: Single Stream Line Funding NIA $ $ 29,216,226 Multidisciplinar Evaluation N/A 3,400 DOJ Housing N/A 110,775 Opiod Treatment Funding N/A 123 ,233 DOJ Support Employment N/A 482,227 ADATC NIA 3,094,531 Crisis Services -Local Psych Inpatient N/A 4,256 ,680 Traumatic Brain Injury N/A 113,028 TCLI CLA NIA 281,492 TCLI TYSR N/A 142,087 TCLI Subsidy Administrative Staffing N/A 90 ,000 Short-Term Group Housing Assistance NIA 246,543 State Disability Rights 100% State N/A 88,908 TCLI Bridge Housing NIA 33,601 TCLI Diversion Screening NIA 182,538 TCLI-MH Services NIA 412,134 Total Division of Mental Heatlh, Developmental Disabilities and Substance Abuse Services 38,877,403 Total State Awards 38,877 ,403 Total Federal Awards and State Awards $ 7,501,601 $ 38 ,877 ,403 See not es to schedu le of expenditures of fede ral and state awards. 45 120219a HCBOC Page347 SANDHILLS CENTER FOR MENTAL HEALTH, DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE SERVICES NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 2019 Note 1-Basis of presentation The accompanying schedule of expenditures of federal and state awards ("SEFSA") includes the federal and state grant activity of Sandhills Center for Mental Health, Developmental Disabilities and Substance Abuse Services (the "Center") under the programs of the federal government and the state of North Carolina for the year ended June 30 , 2018. The information in this SEFSA is presented in accordance with the requirements of Title 2 U .S. Code of Federal Regulations Part 200 , Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net position or cash flows of the Center. Note 2-Summary of significant accounting policies Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting . Such expenditures are recognized following the cost principles contained in the Un iform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Center has elected not to use the 10-percent de mini mis indirect cost rate as allowed under the Uniform Guidance . 4 6 120219a HCBOC Page348