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APRIL 21, 2014

AGENDA
Catawba County Board of Commissioners Meeting
Monday, April 21, 2014, 7:00 p.m.
Robert E. Hibbitts Meeting Room, 1924 Courthouse
30 North College Avenue, Newton, NC

1. Call to Order

2. Pledge of Allegiance to the Flag

3. Invocation

4. Approval of the minutes from the Board’s Regular Meeting and Closed Session of April 7, 2014

5. Recognition of Special Guests

6. Public Comment for Items Not on the Agenda

7. Presentations:


a. Statement of Support for the Guard and Reserve. Presented to the Honorable Ronald E. Bogle, State Chair, North Carolina Committee for Employer Support of the Guard and Reserve, Reservists Ed Barton and Mike Howard and Veterans Services Officer Cindy Travis.


b. Proclamation honoring the Military Order of the Purple Heart. Presented to Commander Mike Stubbs, Military Order of the Purple Heart, Chapter 634.

8. Public Hearing:


Proposed Amendments to the Catawba County Official Zoning Overlay Map – Modification to the WS-III Protected and WS-III Critical Watershed Areas. Presented by Planning and Parks Director Jacky Eubanks.


9. Appointments.

10. Consent Agenda:


a. Tax Refund Request


b. Cancellation of May 19, 2014 Board of Commissioners Meeting

11. Departmental Reports:


a. Economic Development Corporation:


1. GKN Driveline Newton LLC Economic Development Agreement and Resolution. Presented by Economic Development Corporation President Scott Millar.


2. OHM Holdings LLC Economic Development Agreement and Resolution. Presented by Economic Development Corporation President Scott Millar.

b. Utilities and Engineering:


1. Appropriation of FEMA Disaster Recovery Funds. Presented by Utilities and Engineering Director Barry Edwards.


2. Balls Creek Area Water Service Engineering Contract Award. Presented by Utilities and Engineering Director Barry Edwards.


3. Southeastern Catawba County (SECC) Water Supply Loop Phase III Pump Station and Storage Tank Bid Award. Presented by Utilities and Engineering Assistant Director Jack Chandler.

12. Other Items of Business.

13. Attorneys’ Report.

14. Manager’s Report.

15. Adjournment.

PERSONS WITH DISABILITIES: Individuals needing assistance should contact the County Clerk at 828-465-8990 within a reasonable time prior to the meeting. Access to the 1924 Courthouse for individuals with disabilities is at the south side (“A” Street). The elevator is located at the north end of the building. Participation in public meetings is without regard to race, creed, religion, national origin, sex, age, color, or disability.

INFOTALK/INTERNET: The Catawba County Telephone Information System will allow you to use your touch tone telephone to obtain current information on Catawba County 24 hours a day. Information is updated on a regular basis. Dial 465-8468 and INFOTALK will direct your questions with easy to understand instructions. Reach Catawba County on the Internet at http://www.catawbacountync.gov.

CALENDAR: The next Board of Commissioners meeting will take place on Monday, May 5, 2014 at 9:30 a.m. in the Robert E. Hibbitts Meeting Room, 1924 Courthouse, 30 North College Avenue, Newton, NC.


PREVIEW OF COUNTY COMMISSION AGENDA
MONDAY, APRIL 21, 2014, 7 P.M.
ROBERT E. HIBBITTS MEETING ROOM
1924 COURTHOUSE, NEWTON, N.C.

The Catawba County Board of Commissioners will hold a public hearing on proposed amendments to the County’s Official Zoning Overlay Map to eliminate the WS-III Watershed Protected Area and WS-III Critical Area classification from four properties located along Highway 10 West, west of the South Fork River, when the Board meets at 7 p.m. on Monday, April 21, 2014, at the 1924 Courthouse at 30 North College Avenue in Newton.

The Board will also consider a proposed Economic Development Agreement with GKN Driveline, which has announced plans to expand its Maiden facility, creating at least 228 new jobs by the end of 2018 and investing more than $122 million at the facility. And it will consider a proposed Economic Development Agreement with OHM Holdings LLC, which has proposed to purchase seven parcels and rehabilitate two existing structures in Hickory’s Urban Redevelopment Zone along Highway 127, which would create 50 new jobs and result in a $7 million investment in that project.

The Board will consider awarding a bid for engineering services for the design, bid and bid award of the Balls Creek Area Water Service water project and consider awarding a bid for construction of a pump station and storage tank for the Southeastern Catawba County Water Supply Loop. The Board will consider appropriating $66,464.16 in Disaster Recovery Funds awarded by FEMA to offset the cost to repair major damage at the Blackburn Landfill resulting from flooding that occurred across Catawba County on July 27, 2013. It will consider one tax refund request. And the Board will consider cancelling its May 19, 2014, meeting in an effort to prevent the Board from having four meetings in a 15 day period during the time of its budget hearings. Any items that the Board would have to address on May 19 would be added to the agenda for the Board’s budget public hearing at 7 p.m. on Thursday, May 29, 2014 at the 1924 Courthouse in Newton.

The Board will also issue a statement conveying its support for the service and work of the nation’s Guard and Reserve. And it will issue a proclamation declaring Catawba County as a Purple Heart County to bestow honor and gratitude to all combat wounded veterans and those who have received the Military Order of the Purple Heart.

PRESENTATIONS
A. The Board will issue a Statement of Support for the service and work for the nation’s Guard and Reserve. The Honorable Ronald E. Bogle, State Chair, North Carolina Committee for Employer Support of the Guard and Reserve, will be present to receive the Statement, as will employee reservists and Catawba County’s Veterans Service Officer.

B. The Board will issue a proclamation declaring Catawba County as a Purple Heart County to bestow honor and gratitude to all combat wounded veterans and those who have received the Military Order of the Purple Heart.

PUBLIC HEARING
The Board will hold a public hearing to receive citizen comments and consider approval of proposed amendments to the County’s Official Zoning Overlay Map to eliminate the WS-III Watershed Protected Area and WS-III Critical Area classification from four properties located along Highway 10 West, west of the South Fork River. In response to State legislation, Catawba County adopted a Watershed Protection Ordinance effective January 1, 1994. The ordinance established watershed protection districts in the County, which were incorporated into the Unified Development Ordinance in 2007. A watershed is land area that contributes surface water drainage to a specific point (i.e. water intake, water supply). The purpose of watershed protection districts is to limit exposure of pollutants in the watershed to the water supply by restricting built-upon area (imperviousness) of non-residential development and density of residential development.

The parcels at issue are within the WS-III Protected and WS-III Critical Watershed areas. Stormwater drainage pipes currently carry water from this area north to a point west of the City of Newton’s water intake. The City of Newton is in the process of altering the location of culverts and drainpipe on the northern side of Highway 10 so that stormwater will be directed outside the WS-III Watershed. The discharge point will be south of the city’s water intake.

Staff submitted a request to the North Carolina Department of Environment and Natural Resources (NCDENR), Division of Energy, Mineral, and Land Resources to modify the watershed map. The material included construction drawings for Jacob Fork Park illustrating existing and future site conditions, a map of existing and proposed drainage patterns, and a conceptual site plan for future development of two of the parcels. NCDENR, Division of Energy, Mineral, and Land Resources reviewed the request and approved it, conditioned upon completion of the project.

Staff recommends amending the Catawba County Official Zoning Overlay Map to remove the WS-III Protected and WS-III Critical Area from the parcels at issue. The Planning Board held a public hearing on March 31, 2014. No one spoke in favor of or in opposition to the request. Mr. Alex Fulbright, the City of Newton’s Assistant Planning Director, provided general information about the work the City of Newton will provide to reroute storm water and the ability to better market property for future development without the watershed designation. Mr. Ed Neill commented that the request was a smart idea and the relatively small area to come out of the watershed would have insignificant affects downstream. The Planning Board voted 9-0 to submit a favorable recommendation to the Board of Commissioners to amend the Catawba County Official Zoning Overlay Map by removing the WS-III Protected and WS-III Critical Area from the parcels at issue.

CONSENT AGENDA
A. The Board will consider a tax refund request totaling $2,939 made to the Tax Office. Records have been checked and this refund verified, and the Tax Collector is asking for approval of the refund request. Under North Carolina General Statute 105-381, a taxpayer who has paid his/her taxes may request a refund (in writing) for the amount paid through error.

B. The Board will consider cancelling its May 19, 2014, Regular Meeting and the accompanying Subcommittee Meetings. The Board is scheduled to hold budget hearings with departments and conduct subcommittee meetings on Tuesday, May 27, 2014, from 8:00 a.m. to 5:00 p.m. In addition to this day long meeting on May 27, a budget public hearing and wrap-up is scheduled for 7:00 p.m. on Thursday, May, 29. These meetings will be followed by the Board’s Regular Meeting and budget adoption on Monday, June 2, 2014, at 9:30 a.m. In an effort to prevent the Board from having four meetings in a period of 15 days, staff is recommending the cancellation of the Board’s May 19, 2014, meeting and the accompanying subcommittee meetings. Any items that may require Board action after the Board’s May 5, 2014, meeting and before its June 2, 2014, meeting would be added to the agenda for the budget public hearing and wrap-up scheduled for Thursday, May 29, 2014. The Board’s Policy and Public Works Subcommittee recommends the cancellation of this meeting and accompanying subcommittee meetings.

DEPARTMENTAL REPORTS


A. ECONOMIC DEVELOPMENT CORPORATION

1. The Board will consider entering into an Economic Development Agreement between the County and GKN Driveline Newton LLC, adopting a related resolution, and authorizing the Chair to execute these documents along with any other needed documents. GKN Driveline Newton LLC intends to construct, up-fit and/or equip existing manufacturing facilities at two locations in the Town of Maiden, at 1848 GKN Way and 2900 Highway 321A South. They plan to invest a minimum of $122,438,000 and create 228 new jobs over five years. The average wage of the new jobs will be $39,986, exceeding Catawba County’s average wage of $36,223.

GKN Driveline documented strong consideration to place this project in an existing location in Ohio. With this expansion, GKN Driveline will export product from Catawba County worldwide to support the manufacturing of various automotive assemblies. This project is a “Most Favored Business”, using County categories for economic assistance, and is involved in advanced manufacturing. GKN Driveline is a division of GKN PLC, is a global engineering group that designs, manufactures and services systems and components for world manufacturers, and has facilities in Europe, Asia, Mexico and the United States. GKN Driveline develops, builds and supplies an extensive range of automotive driveline products and systems for use in the most sophisticated premium vehicles that demand the most complex driving dynamics, to the smallest ultra low-cost cars.

The proposed incentive grant is based on a contract with obligations requiring satisfactory performance by the company and adhering to all North Carolina General Statutes. The contract requires a minimum investment of $122,438,000, the creation of 228 new jobs, and the maintenance of 563 existing and 92 contractual jobs currently at the facilities. Each investment during an investment period would receive a five year incentive payment equal to 80% of the final assessed value as determined by the County Tax Assessor, with a maximum total incentive grant payment of $2,595,686 and individual year maximum payments of $164,016 in year 1; $332,789 in year 2; $405,378 in year 3; $463,890 in year 4; $519,137 in year 5; $355,121 in year 6; $186,348 in year 7; $113,759 in year 8; and $55,247 in year 9. This investment will net a positive payback to the County immediately, similar to paybacks used to determine grant involvement in other County projects. As with all incentives provided by the County, these incentives will be based on an economic development agreement which requires GKN Driveline to meet minimum thresholds of investment ($122,438,000 by 2018) and job creation (228 by 2018). Clawbacks included in the agreement require repayment should the investment and job creation amounts not be met or sustained.

2. The Board will consider entering into an Economic Development Agreement between the County and OHM Holdings LLC (Transportation Insight), adopting a related resolution, and authorizing the Chair to execute these documents along with any other needed documents. OHM Holdings LLC proposes to purchase seven parcels and rehabilitate two existing structures in Hickory’s Urban Redevelopment Zone along NC Highway 127. Known as the Lyerly Mill, the facility has been vacant for over 36 months and been underutilized for many years. Expenditures for the upfit and renovation of these facilities would be $6 million dollars for the tenant, Transportation Insight LLC, which would be spending at least $1 million additionally on personal property at the site. The State of North Carolina is participating in a Building Reuse grant program contractually binding OHM to create 50 new jobs in addition to the currently existing 151 jobs in the City of Hickory (161 in the State of North Carolina). The contract lists those jobs having an average salary of $46,935, exceeding Catawba County’s average wage ($36,167) by almost 30%.

Transportation Insight is one of the largest and most experienced third-party logistics firms in North America, delivering custom logistics solutions to more than 400 corporate clients. They have other offices in Charlotte, Atlanta, and Bentonville, AR, in addition to their existing headquarters in Hickory. The project requires an energetic workforce, and the company has considered locating its operation in a locality where this workforce might be easier to find and maintain, but would like to remain committed to Hickory. Charlotte was a strong consideration for this project because of the workforce opportunities in that marketplace.

The proposed incentive grant is based on a contract with obligations requiring satisfactory performance by the company and adhering to all North Carolina general statutes. The contract requires a minimum investment of $7 million, the creation of 50 new jobs, and the maintenance of all current Hickory positions. Qualifying investment during an investment period would receive a five year incentive payment equal to 67% of the final assessed value as determined by the Catawba County Tax Assessor, with a maximum total incentive grant payment of $142,040 and maximum payments of $28,408 in any individual year. This investment will net a positive payback to the County immediately, similar to paybacks used to determine grant involvement in other County projects. As with all incentives provided by the County, these incentives will be based on an economic development agreement which requires OHM Holdings LLC to meet minimum thresholds of investment ($7 million by 2016, with a maximum potential incentivized investment of $8 million in assessed value) and job creation (50 new positions). In the event investment and job creation amounts are not met or sustained, all incentive payments would stop immediately.

B. UTILITIES AND ENGINEERING
1. The Board will consider appropriating FEMA Disaster Recovery Funds in the amount of $66,464.16 to reimburse expenditures needed to repair major damage to landfill property due to flooding on July 27, 2013. Catawba County experienced severe storms, resulting in significant flooding in all areas of the county including the Resource Recovery Facility (Blackburn Landfill). The Blackburn Landfill experienced 13 inches of rain in five and a half hours resulting in major damage to roads, storm culverts, side slopes, erosion control measures and fencing. The damage to the Landfill took weeks to repair, costing $76,137 in salaries, benefits, materials and contracted services.

On October 30, 2013, Catawba County Emergency Management officials were informed that President Barak Obama had declared that Catawba and five other area counties were included in a disaster declaration in connection with the severe storms on July 27, 2013. The declaration ordered federal aid to supplement State and local recovery efforts in the area affected by the severe storms, flooding, landslides, and mudslides. The declaration allows federal funding to be available to the State, eligible local governments and certain private non-profit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storms and flooding. This will support work to repair and rebuild public (government maintained) roads, bridges and utilities damaged during the flooding, as well as some other public lands such as parks, government buildings and damage at schools and colleges.

On February 4, 2014, the County received $66,464.16 from the State of North Carolina, a disbursement of federal and state disaster recovery funds to cover the costs of repairs at the Blackburn Landfill. This amount represents approximately 87% of the total repair expenditures. Staff requests the funds be appropriated to reimburse the expense accounts used for the non-budgeted, unexpected repair costs. The Board’s Finance and Personnel Subcommittee recommends the appropriation of these FEMA funds to reimburse expenditures incurred to repair major damage to the landfill property.

2. The Board will consider approval of an engineering contract between Catawba County and McGill Associates P.A., in the amount of $310,000, for the design, bid, and bid award of the Balls Creek Area Water Service water project. In June 2013, the Board approved a Revolving Loan Agreement with the City of Newton for the Balls Creek Water Project, which is being developed at the request of the City of Newton to serve Highway 16 South, Balls Creek Rd. and Buffalo Shoals Rd., creating hydraulic loops within the City’s water system in order to improve water quality. The County will install, and the City will operate, the water lines described as the Balls Creek Water Project. The estimated cost of the project including design, permitting, fees and installation, totals $2,646,000. The County will pay the full amount of all costs reasonably necessary for the design and installation of the water lines directly to the appropriate contractor. Under the Revolving Loan Program, the City agrees to reimburse the County 75% of the total Project cost, payable over a 10 year period in equal annual installments, beginning with the City’s assumption of maintenance of the water lines in each portion of the Project.

In December 2013, the County advertised a Request for Qualifications for Engineering Services in accordance with North Carolina General Statutes. On January 30, 2014, Statements of Qualification were received from Wright & Associates, Newton, NC; Shield Engineering, Inc., Charlotte, NC; McGill Associates, P.A., Hickory, NC; and TGS Engineers, Morganton, NC.

A Selection Committee, consisting of Barry Edwards, the County’s Utilities and Engineering Director; Jack Chandler, the County’s Utilities and Engineering Assistant Director; Debbie Anderson, Purchasing Manager; and City of Newton representatives Wilce Martin and Dusty Wentz, met on February 5, 2014, to review the Statements of Qualification and select a firm to perform the engineering for the Project. Based on the Committee members’ familiarity with these firms, interviews were not required. McGill Associates, P.A., of Hickory, NC was selected as the top-ranking firm for the following reasons: (1) in July 2013, McGill Associates performed a Preliminary Engineering Report of the proposed service area, including an extensive hydraulic study of the City’s water system; (2) McGill Associates has a high level of knowledge of the City of Newton utility systems and this knowledge will facilitate the design of the project, and (3) the comfort level between the City of Newton staff and McGill Associates is critical to the success of the project.

The contract for engineering services with McGill Associates, P.A., includes the following services: Planning, Mapping, and Design Phase Services ($180,000); Easement Mapping ($18,000); Preliminary Site Investigation Phase Services ( $37,000); Permitting Phase Services ($28,000); Bidding and Award Phase Services ($12,000) and North Carolina Department Of Transportation (NCDOT) Project Coordination Phase Services ($35,000), for a total not to exceed $310,000.

A significant portion of this project will be constructed along or within the NC Highway 16 right-of-way. Staff will take necessary precautions to ensure project design and development is in harmony with NC DOT planned improvements to NC Highway 16. Staff and McGill Associates will work with NC DOT in establishing project parameters along the Highway 16 corridor as the first step in project design. The Board’s Policy and Public Works Subcommittee recommends entering into this contract with McGill Associates.

3. The Board will consider awarding a contract for pump station and storage tank construction on the Southeast Catawba County Water (SECC) Supply Loop, Phase III to Locke-Lane Construction, Stony Point, N.C., in the amount of $1,838,643; approving an Agreement for Construction Administration with Davis & Floyd, Inc. in the amount of $128,700; and approving a budget revision in the amount of $40,000.

The Southeastern Catawba County Water Supply Loop was developed in three separate but codependent phases. Phase I, commonly referred to as the Highway 150 waterline, follows along Sherrills Ford Road, Highway 150 and East Maiden Road; Phase II follows along Kirsten Street, Beverly Lane, Sigmon Dairy Road, Rome Jones Road, Knolls Drive, Dixie Street, Business 321, Prison Camp Road, Jack Whitener Road, St. James Church Road, and Campbell Road to Providence Mill Road. Phase III follows Providence Mill Road, North Olivers Crossroad, South Olivers Crossroad, and portions of Buffalo Shoals Road, Mt. Ruhama Church Road and Anderson Mountain Road. Phases I and II were waterline installation only, while Phase III was waterline installation and the construction of a pump station and storage tank. The waterline installation is complete for all three phases and only the pump station and storage tank construction of Phase III remain.

Phase III of the SECC Water Supply Loop was bid in two stages. The first stage of Phase III was the waterline itself which is complete and in service. The second stage is comprised of the pump station and storage tank, Divisions I and II, respectively. On March 27, 2014, the County received bids for the construction of Divisions I and II of the SECC Water Supply Loop Phase III. Davis & Floyd, Inc. reviewed the bids received on March 27 for the pump station (Division I) and storage tank (Division II) from the following contractors: Gilbert Engineering of Statesville, NC, Hickory Sand Co., Inc. of Hickory, NC, Hickory Construction Co., Inc. of Hickory, NC, and Locke-Lane Construction of Stony Point, NC.

Based upon a review of the bids and qualifications of the contractors, Davis & Floyd, Inc. recommends the construction of the pump station and storage tank be awarded to the lowest responsible, responsive bidder, Locke-Lane Construction of Stony Point, NC, in the amount of $1,838,643. Locke-Lane Construction is a Service Disabled Veteran Owned Small Business, as certified by the North Carolina Department of Veteran Affairs, with an unlimited general contractor’s license in North Carolina and South Carolina. The owner and principle engineer is a West Point graduate in Civil Engineering and has an MBA from Columbus State University. Locke-Lane Construction has experience on multiple projects that are similar in nature to this project including: Town of Taylorsville: Booster Pump Station and Water Storage Tanks, $970,608; Charlotte-Mecklenburg Utilities: Mallard Creek WWWTP Effluent Pump Station and Oxic Pump Station, $580,584; Pre-Con Corporation, Maiden, NC,0 Three Pre-Stressed Concrete Storage Tanks (76 feet in diameter), $2,483,262, and Fort Bragg Manhole Rehabilitation Project, $3,002,813.

The proposed Agreement for Engineering Services between the County and Davis & Floyd, Inc. of Hickory, NC, in the amount of $128,700 includes construction inspection and observation, final certification of Division I and II of the SECC Water Supply Loop Phase III, which includes field observation and quality of work, review and approval of shop drawings, diagrams, specifications, schedules, sample guarantees, bonds and certificates; review and approval of applications for payment; and preparation of final “As-Built” record drawings and quality assurance documents for the County, City of Hickory and State of North Carolina.

The SECC Water Supply Loop Phase III project will require an additional $40,000 in funding. Prior project authorization was budgeted in Fiscal Year 2011/12. The current project balance is $2,019,800.54. The bid award is $1,838,643, construction administration is $128,700, and a 5% contingency is $92,000, totaling $2,059,343. Therefore, a budget revision in the amount of $40,000, appropriating water and sewer available fund balance, is requested. The Board’s Policy and Public Works Subcommittee recommends awarding a contract for the pump station and storage tank construction on the SECC Water Supply Loop Phase III to Locke-Lane Construction, Stony Point, N.C., in the amount of $1,838,643; approving an Agreement for Construction Administration to Davis & Floyd, Inc., Hickory, N.C., in the amount of $128,700; and approving a budget revision in the amount of $40,000.

CONTACT: DAVE HARDIN, PUBLIC INFORMATION OFFICER 465-8464