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03-23-2011 Special MeetingSPECIAL MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD THE TWENTY - FOURTH DAY OF MARCH IN THE YEAR TWO THOUSAND AND ELEVEN PRESENT: Thomas J. Wright, III, Chairman Stan D. Clark, Vice - Chairman Al Casteen JoAnn W. Hall Kenneth M. Bunch Also Attending: A. Paul Burton, Interim County Attorney W. Douglas Caskey, County Administrator Carey Mills Storm, Clerk Chairman Wright called the special meeting to order at 5:00 p.m. for the purpose of the following items: Discussion of an insurance RFP; consideration of a donation in the amount of $75,000 from the City of Norfolk; a presentation by Andy Hecker, Moffatt & Nichol, regarding water usage forecasts in the Intermodal Park; consideration of authorization for the County Attorney to draft a contract to purchase water systems from C &P Water Companies; consideration of an amendment to a Memorandum of Understanding between the School Board and the Board of Supervisors regarding shared IT services; authorization to advertise a public hearing at the Board's April 7, 2011 meeting for the VDOT Secondary Six -Year Improvement Plan; and, a presentation by Mike Chandler regarding a follow up on the Board's Retreat. // // /1 Supervisor Clark moved that the Board approve the agenda. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. // Supervisor Clark delivered the invocation. The Pledge of Allegiance was conducted. Chairman Wright called for Approval of the Agenda. Chairman Wright called for Special Presentations /Appearances. Donald T. Robertson, Director of Information Resources and Legislative Affairs, reported that staff had received notification from Anthem in January 2011 that the County's health insurance rates would be increasing in excess of 30 %. He advised that staff proceeded to request that local insurance brokers investigate the market with respect to better rates and were advised that based on the County's last year claims history the proposed increase was not out of line. He stated responsive to the Board's direction at its February 17, 2011 meeting, staff solicited proposals and proceeded to execute the Anthem proposal as provided, to include the 30% increase in premiums. He advised that staff has enlisted the services of a consultant to assist in the RFP process and will return to the Board at its March 15, 2011 meeting to further discuss this proposal. Michael W. Terry, Director of Budget and Finance, recommended that the Board implement a five (5) year strategic plan with respect to health care management and reserves for health care costs in the Fund Balance. Brian Obal, Wells Fargo Insurance Services, provided an overview of health care costs and recommended a short and long -term strategy for the County. He advised contributors affecting the rising health care costs are demographics; a stagnant job market; health care spending; medical cost inflation; and, prescription drug costs. He advised mitigating strategies which can be implemented are to market the insurance product; change the County's benefits to increase co- payments and deductibles; premium contribution strategies by passing some of the premium cost to the employees; and, implementing a wellness program. He also recommended developing a five (5) year strategy plan and developing reserves. He advised that the County's claims from the previous year provide evidence as to why Anthem increased the County's premium by 30 %. He advised that a RFP was released on February 28, 2010 to all carriers doing business in Virginia, as well the solicitation of a dental product to a large number of dental care providers. He advised that he was successful in negotiating a 1.5% reduction from the current renewal without any plan design changes. He recommended a 13 -month contract so that it would not renew on a July 1 cycle for budgetary reasons. Mr. Obal reported an annual savings of $9,000 can be achieved by the County moving its plan to Delta Dental. He recommended a dual option plan as the County's current dental plan only offers basic services and no crowns or bridges. Mr. Obal stated for the short term, he is recommending that the County develop a new contract beginning June 1, 2011 with Anthem 2 Blue Cross & Blue Shield, maintaining the current level of benefits and taking advantage of a 13 -month contract so that it would renew on a July 1 cycle. He further recommended Delta Dental as the County's dental carrier for a savings of $40,000. He advised that Delta Dental offered a two (2) year rate guarantee and in year three (3), a rate cap of 6% was negotiated if the loss ratio on claims comes in under 80 %. He advised that the long -term strategy is to develop a five (5) year benefit plan strategy, to include producing a reserve; development of a strategy coupled with communication to address where there might be a need to have benefit design changes in the future; that a market analysis be periodically conducted; the development of strategies for premium allocation contribution; benefit design modifications; that a choice of plan design be offered; employee education communications; and, total compensation statements. He advised that a wellness initiative program should also be implemented. Supervisor Casteen moved that both aspects of the Anthem coverage be renewed with no change for the employees. The motion was defeated (4 -1) with Supervisor Casteen voting in favor of the motion and Supervisors Clark, Hall, Bunch and Wright voting in opposition to the motion. Supervisor Bunch requested that he be provided a copy of the analysis for both dental programs. Supervisor Clark moved that the matter be brought back up with more details on the benefit analysis for both the dental plan and for the health care plan at the Board's April 7, 2011 meeting so that the Board can better compare the benefits, as proposed. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. 11 11 Chairman Wright declared a recess. Andy Hecker, Moffatt & Nichol, briefed the Board regarding water usage forecasts in the Shirley T. Holland Intermodal Park. He advised that the land acquired and being developed by the County can support a five (5) million square foot facility. He stated an 3 analysis of all dry warehouses reflects consumption to be significantly less than four (4) to five (5) million gallons of water per day and if mixes of 8% to 12% of light manufacturing, support services and dry warehouses were located in the Shirley T. Holland Commerce Park, the consumption would be three (3) to five (5) million gallons of water per day. He stated how much water will be consumed is dependent on the types of businesses attracted to the County. He stated the County's focus is on quality of life, it is rural in nature and the tax burden is borne by County residents and employers with property and equipment. He stated investments in water or property acquisition, economic development and marketing or railroad should be based on the market to dilute the tax burden. He stated that the County's business base needs to be increased and diversified in order to attract high -value private sector companies and to increase employment opportunities. He advised that there has been a significant increase in prospect activity in the County and an increase in water consumption demands of those prospects coming to the County. He stated the County can compete with businesses due to a highly trained development work force, qualify of life offered and because of its viable location because it is undeveloped but still close to the sea port, major roads and rail access. He stated there is an increase in the value of agricultural exports coming out of the United States and land, utilities, electricity, natural gas, sewer, water, road access and labor force need to be in place in order to bring companies to the County. He stated that taxes, diversification and investments must be offered in order to attract businesses. He stated whether the Shirley T. Holland Commerce Park is built out in eight (8) years or twenty -five (25), the private investment on the facilities alone will exceed $400 million dollars only if the services and the labor force that is needed are available. He advised that locations across the country which have been successful have a diversified employment with mixed services which continue to grow. Chairman Wright calculated if all homes were built that are currently zoned to be built, over 2,000,000 gallons of water a day will be needed for residential in the Newport and Windsor Districts. Supervisor Casteen commented that there are currently 2,700 homes already approved to be built in the County and the water usage in the Newport District is currently 330,000 gallons of water per day and even if the entire backlog of homes were built, the amount would only be 600,000 gallons of water per day and not 2,000,000. He stated that Windsor was forecast to be using 250,000 gallons per day in 2010 when, in fact, only 9,900 gallons of water are being used per 4 day. He stated for 2010, 250,000 gallons of water per day was projected for the Windsor District and 667,000 gallons per day was projected for the Newport District; however, in reality, only 339,000 or 38% of what was projected for 2010 was used. He stated if that trend remains true, at the end of 25 years, the number forecasted in the amount of 3.8 million gallons of water will only be, in reality, 1.4 million gallons of water per day. // Chairman Wright called for the County Attorney's report. Assistant County Attorney Popovich presented a draft Amendment to the Memorandum of Understanding between the School Board and Board of Supervisors for shared IT services for the Board's consideration. Jason Gray, Director of Information Technology, stated the intent of the proposed amendment is to revise and update the existing shared services agreement last updated in 2006. He stated much of the exiting Agreement no longer applies and it has been revised to reflect that the County will have a continuing relationship and share certain services as appropriate. He advised that the County typically receives from the school system an annual invoice for shared services; however, it did not this year, leaving existing funds which would normally have been paid to the School system. He advised that there are a number of projects that the County does not have funding for at this time, such as an upgrade to the MUNIS program and support from the software vendor, which will expire this year. He suggested that the funding that would have been paid to the schools be used to fund joint ventures. Chairman Wright advised that the School Board had made a motion to bring to this Board not only that IT efforts be shared, but also payroll and purchasing. Supervisor Clark moved that the amendment to the MOU be approved between the School Board and the Board of Supervisors for shared IT services, subject to minor modifications as may be approved by the Chairman and approved by the County Attorney as to form (since a final version from the School Board has not been received). The motion was adopted by a vote of (5 -0) with Supervisors Bunch, 5 Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton requested authorization to advertise the VDOT Secondary Six -Year Improvement Plan for public hearing at the Board's April 7, 2011 meeting. Supervisor Casteen moved that the County Attorney's office be authorized to advertise a public hearing on the matter at the Board's April 7, 2011 meeting. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Interim County Attorney Burton requested that the County Attorney be authorized to draft an agreement to enter into a contract with C &P Water Company to purchase their water systems. Supervisor Clark moved that the County Attorney be authorized to draft an agreement with C &P Water Companies to purchase certain water systems. The motion was adopted by a vote of (4 -1) with Supervisors Bunch, Clark, Hall and Wright voting in favor of the motion and Supervisor Casteen voting against the motion. Letters notifying the Board members of the following special meetings called by the Chairman were hand delivered: March 24, 2011 special meeting at 5:00 p.m. in the Robert C. Claud, Sr. Board Room; March 31, 2011 Budget Work Session at 2:00 p.m. in the Robert C. Claud, Sr. Board Room; and, the April 12, 2011 Town Meeting at 6:00 p.m. at the Windsor Elementary School. /1 Chairman Wright advised that the County has received a $75,000 donation from the City of Norfolk to assist with protection of water quality in the Blackwater River. // Dr. Michael Chandler, facilitator, followed up with the Board on its retreat held on November 19, 2010. He advised that a survey completed by the Board members had identified issues, challenges and opportunities which face the County. He stated that the Board has traditionally been guided by a Strategic Plan, which contains a Value and Mission Statement. He stated that a summary was mailed to the Board members following the Retreat which 6 suggested there be a follow -up meeting in early 2011 to refine the direction that the Board wishes to follow in FY2011 -12. He stated Board strengths include management of the Board's business during meetings; ability to maintain a real estate tax rate; prudent management of County resources; and a willingness and commitment to follow and implement various plans. He stated opportunities for enhancement by the Board include relationships with the media, interpersonal relationships among the Board members during Board meetings and relationships with County citizens. He advised Board strengths involve management of the business during meetings; the ability to maintain a low real estate tax rate; prudent management of County resources and a commitment to implement various plans and ordinances. He advised opportunities for enhancement of Board functions are listening and involving citizens in the government process; improvement of the relationship the Board has with the School Board; work relationship internal to the Board and a County staffing plan which focuses on specific priorities and separates wants from needs. He stated that the Board agrees on the need for a utilities plan; continued development of the intermodal park; a commitment to become a top school division in the State; a need to enhance and expand tourism efforts and enhance the County's operational effectiveness and responsiveness relative to service delivery to the public. He stated that the Board also supports the development of a Code of Performance. He advised that the Board further agrees to practice effective governance; foster economic well being and the strengthening of community partnerships. He stated the Board agreed to add a Chairman's Comment to the County website and to consider placing a similar commentary in local newspapers, having a single point of contact for all County public information and public relations efforts and to develop a MOU with the School system stipulating the County's financial commitment to public education on a fiscal year basis which can be relied upon when the School Board is developing its budget and discussions between County staff and the School Board relative to an agreement to share cost and responsibilities with the School system, where practical. He distributed a copy of a proposed Code of Performance for the Board's consideration. Supervisor Casteen spoke against the language contained in Item 10 which states "contact with County employees permitted with concurrence with relevant department heads and the office of the County Administrator" as it isolates a Supervisor from his /her responsibility of being available and accessible to County employees and the rest of the County. Supervisor Hall suggested that the language contained in Item 10 in the Code of Performance be replaced with the following: "Supervisors should respect the position and authority of County administration and limit requests for information to Department Heads who are directly responsible for such information." 7 Dr. Chandler offered to send a revised Code of Performance to County Administrator Caskey for placement in the Board's April 7, 2011 agenda. /1 At 8:10 p.m., Supervisor Hall moved that the Board adjourn its meeting. The motion was adopted by a vote of (5 -0) with Supervisors Bunch, Casteen, Clark, Hall and Wright voting in favor of the motion and no Supervisors voting against the motion. Carey ills Sto m, Clerk 8