REVISED
Consent Agenda Item No. 7m
THE BOARD OF
COUNTY COMMISSIONERS
DURHAM, NORTH
CAROLINA
Monday, May 24, 2004
AGENDA
4:00 P.M.
Joint Meeting—Board
of County Commissioners and
Durham Public
Schools Board of Education
_________________________
6:00 P.M.
Closed Session
The Board of Commissioners is
requested to adjourn to closed session to instruct the staff concerning the
position to be taken in negotiating the material terms for the acquisition of
two real properties pursuant to G.S. § 143-318.11(a)(5). The two properties are: 247 S. Mangum owned by U-Haul Real Estate
Company and 50 acres located on the west side of South Lowell Road owned by
Sean P. and Kristi Scully.
_________________________
7:00 P.M. Regular Session
1. Opening
of Regular Session—Pledge of Allegiance
5 min.
2. Agenda
Adjustments 5 min.
3. Minutes
5 min.
a.
April
26, 2004 BOCC/Public Health
b. May 10, 2004
Regular Session
4. Acts of Caring Award—Teen Diploma
Academy
5 min.
The
National Association of Counties (NAC0) presented an “Acts of Caring" Award to Durham County’s
Teen Diploma Academy
last month. Ms. Lucy Haagen
and
Mr. Fred Foster Jr. of the Durham Literacy Council attended the event and were
joined by Congressman David Price.
The
Acts of Caring Awards recognize top county volunteer programs in the country
that enhance and preserve the quality of life for America’s
communities.
5. May
Anchor Award Winner—Vivian Harris
5 min.
Ms. Vivian Harris of the Durham Center
serves as Director of Standards and Records for the department. Ms. Harris chairs the “Best Practices Team"
and is cited for successfully leading the team as it “irons out issues and
potential problems". Interim Durham
Center Area Director
Ellen Holliman has nominated Ms. Harris for her overall leadership as the
organization transitions because of Mental Health Reform. According to Ms. Holliman, Ms. Harris “keeps
the team focused on the issues at hand, which is yielding good results".
6. FY
2004-2005 Recommended Budget
30 min.
Durham
County Manager Michael M. Ruffin will formally present the recommended budget
for FY 2004-2005 to the Board of County Commissioners. This is in accordance with N.C.G.S.
159-12(b), the Local Government and Fiscal Control Act.
COUNTY MANAGER’S
RECOMMENDATION: The Manager recommends that the Board receive his presentation.
7. Consent
Agenda 20
min.
a. Property
Tax Releases and Refunds for Fiscal Year 2003-04 (accept the April property tax
release and refund report as presented and authorize the Tax Assessor to adjust
the tax records as outlined by the report);
b. Capital
Project Ordinance Amendment No. 04CPA000014 (approve the use of Public School
Building Funds for HVAC upgrade at Neal
Middle School);
d. Purchase of Total Containment Vessel for
$143,200—Emergency Management (approve the purchase from DHS Part II Grant Program
funds);
e. First Amendment to Service Contract for
Services With Excelliant Services Inc. (approve the amendment
to the contract not to exceed $35,600 and authorize the Manager to execute);
f. JCPC Recommendation for FY 2004-2005 JCPC/DJJDP Program
Funding (approve the recommended plan to allocate $561,475 in State funding for
FY 04-05);
g. Grant Agreement to North Carolina Museum of Life and
Science Inc. (approve the agreement for $5,280,000 and authorize the County Manager
to execute);
h. Lease Agreement to the Coordinating Council
for Senior Citizens, Durham Inc. (approve the agreement
and authorize the Manager to execute);
i. Resolution
Adopting Policy on Closed Session Minutes (adopt the resolution with any
changes the Board desires);
j. Contract Amendment to Wastewater Treatment
Plant Improvements—Phase I Engineering Contract (authorize the Manager to
execute the amendment with McKim & Creed, PA
in the amount of $112,000);
k. Budget Ordinance Amendment No. 04BCC000072
and Capital Project Amendment No. 04CPA000015—Closing of 1986 and 1991 Bond Issuance Related
Projects and Movement of Unspent Funds to the Debt Service Fund (304) (approve
the closing of the projects and related sub-funds within the Capital Project
Fund freeing up $579,310; transfer remaining balances within these sub-funds to
the Debt Service Fund to be used to pay toward existing debt; and transfer
General Fund fund balance ($161,556) to the Little
River Regional Park project to replace the moved 1986 and 19991 Bond funds);
l. Air Quality Initiatives for Durham County
(instruct the Environmental Affairs Board to spearhead the initiatives for Durham County);
and
m. Budget
Ordinance Amendment No. 04BCC000074 and Capital Project Amendment No.
04CPA000016—Project No.: DC075-50 (approve the appropriation of $200,000 of
Capital Financing Fund fund balance to purchase 2.23
acres of land located on Shannon Road [Watson Property] for the purpose of
expanding the Southwest Branch Library).
8. Interest Rate Swap
The Finance Department has been
entertaining a proposal from Rice Financial Products for the County to enter
into an interest rate swap agreement.
This agreement is projected to save the County almost $10,000,000 over a
ten-year period in debt service. The use
of this savings should be limited by the BOCC to 50% current budget and 50%
designated for potential increases in debt service due to the Swap arrangement.
During the worksession on May 3, 2004, Rice Financial Products and
Public Financial Management (PFM), a recognized expert in the area of Swaps, made
presentations to the Board. (PFM
was paid $10,000 to analyze the proposal and make a recommendation to the Board.)
Management recommends that Durham County
enter into an agreement with Rice Financial Products and believes that the arrangement
will reduce the County’s debt service.
Management also believes that the risks outlined in the PFM analysis can
be mitigated to an acceptable level. A
copy of the proposal has been provided to the LGC for its review and comment;
however, a response is not expected prior to this meeting. As such, the request is that the Board authorize the Manager to execute a contract with Public
Financial Management to advise the County in the negotiation of such an
arrangement in an amount not to exceed $100,000. The scope of services to be provided will
include, but are not limited to, the following:
1. Review and comment on all Swap
documentation and business terms;
2. Evaluate credit enhancement and
other industry standards approaches to managing counterparty credit risk;
3. Negotiate the pricing terms and
final structure with the Swap provider;
4. Coordinate the closing of the
transaction; and
5. Provide the County with a memorandum
summarizing the results of our engagement, including an opinion that the
pricing of the Swap, as agreed to, represents fair value.
Should this arrangement be approved by
the BOCC and closed, all costs will be absorbed in the deal (no cash outlay by
the County). However, to move the
process forward, the request is to approve a $100,000 appropriation from Fund
Balance. Please note that our deal with
PFM is on a contingency basis—if the deal fails to close, the County owes
nothing to PFM.
Once the deal has been negotiated, the
proposal will be presented to the BOCC for final approval, which would be
subject to the approval of the LGC.
RESOURCE PERSON(S): George K.
Quick, Finance Director
COUNTY MANAGER’S
RECOMMENDATION: The Manager
recommends that the BOCC approve the proposed deal with Rice Financial Products
(subject to approval by the LGC), authorize the Manager to enter into a
contract with Public Financial Management to act as our Swap advisor, and
approve the Fund Balance Appropriation.
9. Budget
Ordinance Amendment No. 04BCC000073—Emergency Medical Services Salary and
Benefits Funding
15
min.
10. Ethics
Complaint
20
min.
This matter is being placed on the
agenda for discussion and consideration by the Board of Commissioners.
11. Board
Appointments—Durham Appearance Commission and
the Durham
Bicycle and Pedestrian Advisory Committee
10
min.
______
2¼ hrs.
