The Wake County Board of Commissioners met in regular session Monday, October 16, 2006, at 2:00 p.m. in the Commissioners’ Room, 7th Floor, Wake County Courthouse, Raleigh, North Carolina. Members present were Commissioners Joe Bryan; Herbert H. Council; Kenn M. Gardner; Tony Gurley; Phil Jeffreys; Betty Lou Ward; and Harold Webb. Commissioner absent was: Herbert H. Council. Others attending were the County Manager, David C. Cooke; the County Attorney, Mr. Michael R. Ferrell; and the Clerk to the Board, Mrs. Susan Banks.
Chairman Gurley called the meeting to order.
PLEDGE OF ALLEGIANCE
Commissioner Phil Jeffreys offered the invocation.
APPROVAL OF AGENDA
Mr. David Cooke, County Manager, asked to remove Item Number 9 which was the schematic design for the Parking Deck and Mixed-use Development on Davie Street in Downtown Raleigh from the agenda.
Upon motion of Commissioner Ward, seconded by Commissioner Gardner, the Board unanimously approved the agenda of the October 16, 2006 meeting with the removal of the schematic design for the Parking Deck and Mixed Use Development on Davie Street.
Upon motion of Commissioner Gardner, seconded by Commissioner Jeffreys, the Board unanimously approved the Minutes of September 11, 28, and October 2, 2006.
Mr. Ralph Stephenson and Ms. Joyce Gadison from the Sheriff’s Department were both present and recognized as retiring employees. Ms. Iva Daughtry and Ms. Joyce Wall from Human Services were not present.
CONSENT AGENDA ITEMS
Upon motion by Commissioner Ward, seconded by Vice Chairman Webb, the Board voted unanimously to adopt the items on the consent agenda as submitted.
BUDGET AMENDMENT TO THE WORKFORCE DEVELOPMENT
PROJECT ORDINANCE FOR $50,000
Specific Action Approved: The Board of Commissioners accepted the Workforce Development funding in the amount of $50,000 to the Workforce Development Project Ordinance with the appropriate budget revisions to increase appropriations in the Workforce Development Special Revenue Fund.
ACCEPTANCE OF $98,723 FROM THE
2006 COMMUNITY ORIENTED POLICY SERVICES TECHNOLOGY GRANT
Specific Action Approved: The Board of Commissioners accepted the COPS technology grant award of $98,723, and authorized the
Wake County Manager to execute the grant agreement, and amend the FY 2007 budget to reflect the grant revenue.
APPROVAL OF AN AMENDMENT TO CONTRACT FOR
EMERGENCY MEDICAL SERVICES BILLING WITH
EMS MANAGEMENT AND CONSULTANTS THROUGH JANUARY 2008
Specific Action Approved: The Board of Commissioners approved an amendment to the contract for the billing and collection of
emergency medical services with EMS Management and Consultants through January 2008.
REGULAR AGENDA ITEMS
APPROVAL OF ONE NEW POSITION FOR A SCHOOL RESOURCE OFFICER AT
FUQUAY-VARINA MIDDLE SCHOOL
Mr. Raymond Boutwell, Sheriff’s Office, reported on the request for a School Resource Officer (SRO) for the Fuquay-Varina Middle School. He explained that there was a resource officer at the middle school which had been funded by the Community Oriented Policing Grant. The grant expired and the Town Council moved the resource officer back to the Police Department and eliminated the SRO position. All other middle schools in the County have a SRO. Sheriff Harrison has agreed to assign a deputy to begin as SRO at the Fuquay-Varina Middle School with hopes that the Board of Commissioners will create a new deputy position in the future. They will fund the vehicle and position’s salary and benefits within the Sheriff’s budget or the Fleet Funds budget.
Upon motion by Commissioner Ward, seconded by Commissioner Jeffreys, the Board voted unanimously to create one deputy sheriff officer position to serve as a school resource officer at Fuquay-Varina Middle School.
NONPROFIT MULTI-FAMILY HOUSING DEVELOPMENT
LOAN RECOMMENDATIONS FOR HOPE CREST APARTMENTS
Ms. Annemarie Maiorano updated the Board of the 2002 Affordable Housing Action Plan, Housing and Community Revitalization (HCR) project where $251,000 was committed to Pan Lutheran Ministries (now called PLM Families Together). The funds were to be used to develop 9 units of transitional housing at 1721 Poole Road in Raleigh for nine homeless families. HCR disbursed $106,996.47 to PLM for land acquisition and site development.
On May 18, 2006 PLM informed the County that it could not complete the project for the following reasons:
· There were significant, unforeseen site-related costs involved with the development;
· The organization is experiencing some financial difficulties;
· They are unable to secure matching funds for the project as planned.
In order to avoid foreclosure by Wake County PLM proposes to transfer the property to Community Alternatives for Supportive Abodes (CASA). In exchange, CASA has agreed to assume $81,000 of PLM’s indebtedness to Wake County (the property’s appraised value) by taking title to the property. PLM would still owe Wake County $25,966.47, which it would repay over 13 years at $2,000 per year.
CASA proposes to develop Hope Crest Apartments on the site. Hope Crest is a 10-unit apartment development for homeless individuals with a disability. . This site is well-suited to serve this population because it has access to public transportation and is located within close proximity to support services. CASA responded to Wake County’s request for proposals for this project to secure $174,148 for construction and $96,344 operating subsidies for the first four years of operations. The total project cost is $1,155,148. The City of Raleigh supports the development of the site for this use and has contributed a grant of $300,000 for Hope Crest. Other funding sources are:
Funding Sources for Hope Crest Apartments:
HUD grant $ 400,000
City of Raleigh grant $ 300,000
NC Housing Finance Agency grant
(pending approval) $ 200,000
PLM loan transfer $ 81,000
Wake County Grant $ 174,148
The Housing Committee of the Human Services Board reviewed this request along with the loan restructuring request and recommends the following:
1. A capital grant of up to $174,148 from the County’s capital improvement plan affordable housing budget to CASA for Hope Crest Apartments. The Wake County per unit subsidy for construction is $17,414, and the grant will secured by a deed of trust and promissory note so that it will remain affordable over a 30-year period.
2. A grant of up to $96,344 in operating subsidy from the County’s capital improvement plan affordable housing budget for Hope Crest Apartments over 4 years. These funds would be distributed on reimbursement basis if insufficient rental income were received during the first four yeas of operation. The operating subsidy will enable CASA to serve homeless individuals who will be able pay on average $100/month for rent and utilities at the start of their tenancy. By year five of operation, CASA expects to have rental subsidies from HUD’s Shelter Plus Care program.
3. Restructuring of a loan to PLM Inc. HCR disbursed $107,000 to PLM for a development that PLM cannot complete. CASA will assume $81,000 of the loan in order to acquire the property at 1721 Poole Road for the Hope Crest development. Pan Lutheran will then repay the remaining $26,000 of the loan to the County over 13 years with annual payments of $2,000.
Upon motion by Commissioner Ward, seconded by Commissioner Gardner, the Board voted unanimously to: 1) restructuring of a loan to PLM Families Together; 2) a grant of up to $174,148 to CASA, Inc. for capital costs for Hope Crest Apartments; and 3) a grant of up to $96,344 over 4 years to CASA, Inc. as an operating subsidy for Hope Crest Apartments.
ACQUISITION OF TWO OPEN SPACE TRACTS
IN MARKS CREEK FROM THE HERNDON FAMILY HEIRS
Mr. Mark Edmondson reported that there are two tracts of open space in the Marks Creek area for the Board to consider for purchase. Both parcels have road frontage and the Fuller tract connects the Fuller and Pleasants property. Wake County, in conjunction with Triangle Land Conservancy and the Trust for Public Land, have identified these properties as a priority preservation areas. These are the sixth and seventh tracts within the Marks Creek area to be put under contract by the Marks Creek Partners which is a partnership between Wake County and Triangle Land Conservancy. This acquisition request involves two parcels owned by the Herndon Family Heirs. These tracts are located within the boundaries of the Marks Creek watershed and contain approximately 97 acres. The heirs will retain 10 acres, making the net purchase 87.293 acres. Both Herndon tracts are considered "Priority Two" tracts in the County's Marks Creek Initiative. The purchase of both of these tracts is a condition of the transaction with the Herndon heirs.
Our partner, Trust for Public Land, currently has both tracts under contract for a sale price of $26,000 per acre (net right-of-way). The total sales price would be $2,268,214.00. The MAI appraisal supports this value of $26,000 per acre. Mr. Edmondson explained the benefits to the open space program by purchasing these two tracts.
Both tracts would be eligible for Clean Water Management Trust Fund reimbursement. The partners plan to make application for the Winter 2006 grant cycle. As Wake County would be the eventual owner of the both parcels, the County would provide the stewardship for these properties.
Upon motion by Commissioner Gardner, seconded by Commissioner Jeffreys, the Board voted unanimously to: 1) Authorize the County Manager to execute a purchase agreement for both the Herndon East tract and the Herndon South tract for a price of $26,000 per acre, as determined by survey and subject to terms and conditions acceptable to the County Attorney; and 2) to authorize the inclusion of conditions suggested above by Land Acquisition Review Committee and Open Space and Parks Advisory Committee in the purchase agreement.
AMENDMENT TO LEASE FOR THE EXPANSION OF THE
SOUTH BRANCH LIBRARY AND EXTENSION OF THE LEASE TERM
Mr. Mike Aull and Mark Forestieri informed the Board about the need for the proposed amendment to the lease for the expansion of the South Branch Library and extension of the lease. The current gross rent for this facility is $12.50 per square foot or $31,875 annually.
In the FY 2006-2007 Capital Improvement Program Budget, funding is included for the expansion of the South Branch Library into the adjoining space. The available expansion space consists of approximately 2,913 square feet, which would bring the total square footage of this library to 5,463 square feet. York Properties Inc., managing agent for the property, has submitted a proposal for the expansion and up-fitting of the space and the extension of the lease term for an additional 2 year period until May 31, 2012. This proposal includes the up-fitting of the space by the Landlord at a cost to be agreed upon by the Landlord and the County. The Landlord will competitively bid the work and the County will reimburse the Landlord for the up-fit costs. The schematic design floor plan of the renovated and expanded space and image of the proposed new facade were provided to the Board. The proposal includes the following:
1) Leased space will be increased from 2,550 square feet to 5,463 square feet.
2) Rent payments for the expansion space will commence on April 7, 2007.
3) Term of the lease for the existing and the new space shall be extended 2 years through May 31, 2012.
4) Landlord will replace HVAC equipment for the existing and expansion space with higher efficiency equipment to meet updated ventilation standards now required by the building code (Estimated cost of $30,000).
5) Landlord will upfit the space at a cost to be agreed upon by Landlord and the County not-to-exceed $285,000. County will reimburse Landlord for agreed upon upfit costs.
6) The rent schedule will be:
· 2 months $12.50 per sf for the period April 1, 2007 to May 31, 2007
· Years 1-2 $13.00 per sf for the period June 1, 2007 to May 31, 2009 or $71,019.00 per year
· Years 3-4 $13.50 per sf for the period June 1, 2009 to May 31, 2011 or $73,750.50 per year
· Year 5 $14.00 per sf for the period June 1, 2011 to May 31, 2012 or $76,482.00 per year
7) In accordance with the original lease agreement, the County will be responsible for the payment of TICAM (taxes, insurance and common area maintenance) costs for the 2,913 square feet of expansion space beginning April 7, 2007 ($6,030 annually). The Landlord has agreed to abate the TICAM expenses for the existing space of 2,550 square feet for a period of 3 years as a concession. Therefore, the County will not be responsible for payment of TICAM costs for the entire 5,463 square feet until June 1, 2010 ($11,308 annually). The TICAM costs are estimated to be $2.07 per square foot for the 2006 calendar year and will be adjusted annually.
The Landlord will continue to be responsible for exterior HVAC maintenance and all plumbing and electrical systems maintenance. The County will be responsible for utilities and routine housekeeping of the facility. The Board was also informed that the library will close in December and reopen in the Spring 2007 for the renovations and expansion to take place.
Upon motion by Commissioner Bryan, seconded by Commissioner Ward, the Board voted unanimously to approve the lease amendment for the South Branch Library to expand the space from 2,550 square feet to 5,463 square feet and extend the lease termination date 2 years to May 31, 2012, in accordance with the terms and conditions listed above and authorize the County Manager to execute the lease on behalf of Wake County subject to terms and conditions acceptable to the County Attorney. In addition, Vice Chairman Webb asked for an amendment to the motion, which was seconded by Commissioner Gardner, that the Wake County Commissioners welcome a public private partnership for capital outlay in relation to this and any other libraries as well as any other new facilities that are to be constructed.
The Board discussed with staff to look into an alternative location for the South Branch Library to operate during the period the library will be closed.
APPROVAL OF SCHEMATIC DESIGN FOR PARKING DECK AND
MIXED-USE DEVELOPMENT ON
DAVIE STREET IN DOWNTOWN RALEIGH
This item was removed from the agenda.
MULTI-YEAR LEASE OF OFFICE SPACE FOR THE
RELOCATION OF THE REGISTER OF DEEDS AND
WAKE COUNTY REVENUE DEPARTMENT
Mr. Mike Aull reported on the request for a multi-year lease of office space for the relocation of the Register of Deeds and Wake County’s Department of Revenue. The major element of the Master Plan that must be completed by 2013 is a new Criminal Courthouse/Public Records Building (Justice Center). This facility is planned for the northern half of the city block between the Wake County Public Safety Center and Martin Street in Downtown Raleigh. The existing courthouse will become a family/civil court facility. Modifying an existing tunnel connector under Salisbury Street will connect these two buildings and the Public Safety Center.
Due to the new construction going where structures already exists, there will be some demolition of existing buildings. During such time, there will be a need to relocate the Register of Deeds and Wake County’s Department of Revenue so they can continue operations. Staff looked at the proposed facility as well as the Wachovia Building downtown. The Public Defender is already located in the Wachovia Building.
It is currently planned that approximately 40,000 square feet of space will be needed in January 2008. Based upon the occupancy of the leased space in January 2008 and allowing approximately 12 months for up-fitting the space and moving, the relocation could be completed by January 2009. There is currently suitable space available in the downtown area meeting the County's needs. However, the County will not need the space until January 2008 and it is likely that the space may be leased prior to that time.
Staff evaluated 8 alternatives based upon 3 proposals received from commercial realtors for potential suitable properties located in the downtown area. Based upon the results of this evaluation process, staff pursued further discussions with the leasing broker for the One Bank of America Plaza Building (formally referred to as One Hanover) located at 421 Fayetteville Street. This building is owned by TSO Fayetteville, LLC, A Georgia Limited Liability Company and managed by The Simpson Organization based in Atlanta, Georgia. CB Richard Ellis provides space leasing and building management services. Based upon these discussions, the owners have proposed a lease agreement containing the following terms that address the County's needs with regards to the schedule for the space required:
1. The lease will include two entire floors consisting of approximately 44,000 square feet
2. The lease commencement shall be September 1, 2007
3. The lease term shall be 5 years and 10 months and terminate on June 30, 2013
4. The County shall be provided with a three-time right to terminate the lease early at the end of the 48th, 54th and 60th month
5. The Landlord shall provide a concession of free rent for the first 6 months of the lease term ($407,000)
6. The County will commence paying rent on March 1, 2008
7. The Landlord shall provide an allowance of $528,000 for space planning, design and construction of improvements
8. The rent rate commencing September 1, 2007 will $18.50 per square foot. (First 6 months free rent)
9. The rent shall increase 3% annually on each lease anniversary date
10. The County shall be responsible for a proportionate share of the Building and Land Operating Expenses that exceed the established 2007 base year operating expenses (estimated to be less than $8,500 annually)
Based upon these terms and conditions, it is recommended that the staff be directed to finalize a lease agreement with TSO Fayetteville, LLC for approximately 44,000 square feet in the One Bank of America Plaza Building subject to terms and conditions acceptable to the County Attorney. Mr. Aull said the Courthouse will not be completed early but the Public Records building may be ready early. The complex should be complete by 2012.
Upon motion by Commissioner Bryan, seconded by Commissioner Ward, the Board voted unanimously to approve Approves a lease agreement with TSO Fayetteville, LLC for approximately 44,000 square feet in the One Bank of America Plaza Building located at 421 Fayetteville Street in Raleigh for a term commencing September 1, 2007, and ending June 30, 2013, containing the terms and conditions listed below and authorize the County Manager to execute the lease on behalf of Wake County subject to terms and conditions acceptable to the County Attorney.
Wake County Fire Commission
Commissioner Ward nominated William Gatewood for the at-large position and spoke to Mr. Gatewood’s qualifications. Commissioner Jeffreys nominated Norman Walker. Commissioner Gardner nominated Cecil Parker for the South Region Alternate position.
Votes for Gatewood: Votes for Walker:
Commissioner Ward Commissioner Jeffreys
Commissioner Bryan Commissioner Gardner
Mr. Gatewood received the nomination with a four to two vote.
Upon motion by Commissioner Webb, seconded by Commissioner Bryan, the Board voted unanimously to appoint Mr. William Gatewood and Mr. Cecil Parker to the Wake County Fire Commission.
COMMITTEE REPORTS/OTHER BUSINESS
No Committee reports or Other Business was discussed at this time.
No one spoke.
Mr. Michael Ferrell, County Attorney, announced the need for a closed session based on G.S. 143-318.11(a)(3) to consult with
the attorney, to consider and give instructions concerning a potential or actual claim, administrative procedure or judicial action.
The Board returned to open session.
Mr. Ferrell announced that the Board took action to ratify a retainer agreement with Reef C. Ivey, II and Shanahan Law Group, attorneys, executed by County Attorney as of October 5, 2006. The agreement retains said attorneys to pursue a potential claim of uncollected hotel/motel occupancy taxes on behalf of the County and provides for a contingency fee of 30% of the first $2 Million of gross recovery, 25% of gross recovery between $2 million and $5 million, and 20% of gross recovery above $5 million.
Upon motion by Commissioner Ward, seconded by Commissioner Webb, the Board voted unanimously to adjourn the meeting at 3:20pm.
Susan J. Banks, CMC
Clerk to the Board
Wake County Board of Commissioners