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.
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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.
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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
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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.
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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
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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
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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.
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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,
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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.
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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.
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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
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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."
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Dr. Chandler offered to send a revised Code of Performance to
County Administrator Caskey for placement in the Board's April 7,
2011 agenda.
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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
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