Budget Minutes                                                June 6, 2002                                        Page Ten

Mr. Corbitt requested approval of the following budget transfer to provide adequate funding for the month of June uniform rental:

            From:            116-55754-499 – Other Supplies/Materials -                              $350

            To:            116-55754-451 – Uniforms -                                                              $350

Comm. Jones moved, seconded by Comm. Peay to approve the budget transfer as requested.

The motion passed unanimously by roll call vote.

MISCELLANEOUS:

The Finance Director requested approval of the following budget amendment to appropriate additional funding to pay the deductible for a claim in which an object fell from a county vehicle and struck the claimant’s vehicle:

            From:            116-39000 – Undesignated Fund Balance -             $2,000

            To:            116-58900-505 – Judgments -                                        $2,000

Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

REQUEST FUNDING FOR CONVENIENCE CENTER TRUCK:

The committee was advised of a wreck of a 1991 truck being driven by a new employee at the Convenience Center.  Insurance was dropped on the vehicle, because it was more than five years old.

The Public Works Committee has recommended that $90,432 for the replacement of a roll off truck be added in the Convenience Center 2002-03 budget.

Chairman Evans stated this item should probably be discussed after the Public Hearing, as the recommendation for the 2002-03 budget has been published in the newspaper. 

Chairman Evans stated it appeared there were several accidents that occurred on a yearly basis in different departments.  He wanted to know if there was a policy dealing with how many accidents an employee could have before disciplinary action was taken.

Comm. Ealy advised it was her understanding it was a new employee, and that a veteran driver was also in the truck.  She advised the truck was totaled, and both employees were uninjured.  She reported Ms. Smith advised she would have to have another truck or be faced with reducing hours at the convenience centers or even closing some of them.

Following discussion, Comm. Throneberry moved, seconded by Comm. Peay to defer any action on the $90,432 request for a roll off truck for the Convenience Center Department until after the Public Hearing on June 11. 

LOCAL PURPOSE TAX FUND

2001-02 REVENUE ADJUSTMENTS:

The Finance Department requested approval of the following budget amendments to adjust the 2001-2002 revenue for the Local Purpose Tax Fund, as well as the Operating Transfers and Trustee’s Commission.  There will be a net increase to the ending fund balance of $265,770:

Budget Minutes                                                June 6, 2002                                        Page Eleven

            Increase Revenue:            120-40290 – Other County Local Option Tax -            $900,000

            Decrease Revenue:            120-44110 – Interest Earned                                     (177,000)

            Increase Expend.:            120-99100-590 – Operating Transfers -                    $450,000

                                                120-51900-510 – Trustee’s Commission -                             7,230

            Increase Fund Balance:            120-39000 -                                                            $265,770

Comm. Throneberry moved, seconded by Comm. Jones to approve the budget amendments as requested to adjust the 2001-02 revenue for the Local Purpose Tax Fund, as well as the Operating Transfers and Trustee’s Commission with a net increase to the ending fund balance of $265,770.

The motion passed unanimously by roll call vote.

ROAD & BRIDGE FUND BUDGET AMENDMENTS

2001-02 REVENUE ADJUSTMENTS:

The Finance Director requested approval of the ATTACHED list of budget amendments, which adjusts the 2001-02 revenue in the Road & Bridge Fund and results in a decrease to the ending fund balance of $239,560.

Comm. Sandlin moved, seconded by Comm. P. Johnson to approve the 2001-02 revenue for the Road & Bridge Fund resulting in a net decrease to the ending fund balance of $239,560.

The motion passed unanimously by roll call vote.

GENERAL PURPOSE SCHOOL FUND 2001-02 BUDGET AMENDMENTS:

Mr. Jeff Sandvig requested approval of the following budget amendment to cover the projected vacation payouts and related benefits for two twelve-month employees who will retire on June 30, 2002:

            From:            141-71200-116 – Teachers -                                $11,740

                        141-71200-201 – Social Security -                                        728

                        141-71200-204 – State Retirement -                                    437

                        141-71200-212 – Employer Medicare -                              171

            To:            141-72220-105 – Supervisor/Director -            $11,740

                        141-72220-201 – Social Security -                                 728

                        141-72220-204 – State Retirement -                             437

                        141-72220-212 – Employer Medicare -                        171

            From:            141-72810-120 – Computer Programmers -            $17,700

            To:            141-72810-105 – Supervisor/Director -            $17,700

Mr. Sandvig also requested approval of the following budget amendment, which funds the new Horizon Attendance System and the needed equipment for implementing the system.  The State is requiring that all attendance and student-based reports be filed electronically next year.  The existing Horizon System will not handle these electronic reporting requirements:

            From:            141-71100-116 – Teachers -                                $232,410

                        141-71300-116 – Teachers -                                                60,000

                        141-71300-201 – Social Security -                                         3,720

                        141-71300-212 – Employer Medicare -                                    870

                        141-71300-448 – T&I Construction Mat. -                           25,000
 

Budget Minutes                                                June 6, 2002                                        Page Twelve

            To:            141-72110-399 – Other Contracted Svc. -            $252,000

                             141-72110-704 – Attend & Health Equip -                 70,000

Mr. Sandvig advised they would have to purchase a new server.  He said many of the PC’s at the schools are not powerful enough to act as a server at the school.  He reported there would be 31 reports that would have to be filed electronically.  He explained the penalties are $500 per day per report that they are late. 

A discussion was held regarding taking the money from teacher’s salaries.  Mr. Sandvig advised that there was money left over based on turnover.  He stated they still have some teachers who started before teachers had to join Social Security, and there were some savings from that. 

Chairman Evans stated that every year money was transferred out of the teacher’s salary accounts.  He stated every year the commission tries to recommend raises and giving the teachers an increase, but yet there is always money left in the account that gets transferred out.  He stated he wanted to request that the money be allocated to the teachers.  He stated he understood that perhaps the School Board may not always be able to hire positions by a certain time or there may be retiree’s in the middle of the year that could affect the account.

Following discussion, Comm. Throneberry moved, seconded by Comm. P. Johnson to approve the budget amendments as requested to provide funding for projected vacation pay-outs and related benefits due to two twelve-month employees who would be retiring on June 30 and to purchase the new Horizon Attendance System and the needed equipment.

Comm. Sandlin stated he had asked numerous times about vending.  He stated vending is not listed in the budget.  He stated vending is a huge business.  He asked where the money went?

Mr. Sandvig advised the money went into the individual school’s activity accounts. 

Comm. Sandlin asked why the dollars do not appear anywhere?

Mr. Sandvig advised they appeared in the audited financial statements of the school’s activity funds.

The Finance Director advised there is a combined audit of all school activity funds that is prepared by an independent public accountant.

Comm. Jones asked if they could request a copy of the audit?  She stated she would request a summary sheet of the individual schools and the revenue that is generated from the vending. 

The Finance Director stated all of this information is recorded in the county’s accounting system.  He stated a report could be generated from the county’s accounting system.

Chairman Evans stated he would like a copy of the report.

Following discussion the motion to approve the General Purpose School Fund budget amendments to provide funding for vacation pay-outs and related benefits to two twelve-month employees who would be retiring June 30 and to provide funding to purchase the new Horizon Attendance System passed by roll call vote with Commissioners Ealy, P. Johnson, Jones, Peay, Throneberry and Evans voting “yes”, and Commissioner Sandlin voting “no”.

Comm. Sandlin stated he wanted to know where all of the vending machine money was going.  He did not believe the parents and the students were aware of the amount of revenue and how it was being used.

Comm. Sandlin moved, seconded by Comm. Jones to request a copy of the audit of the School’s Activity Accounts including a summary sheet indicating the amount of vending machine revenue and how the money is being used.

Budget Minutes                                                June 6, 2002                                        Page Thirteen

Comm. Peay stated it was his understanding the School Board had changed their policy on how books that are no longer in service are disposed.  He stated he has been told the books are turned back into the Central Office, and are sold.

Mr. Sandvig advised that is correct.  He reported the money goes into miscellaneous revenue and amounted to $55,000 this year.

Comm. Jones asked Mr. Sandvig if there was a policy on how the vending machine revenue can be used?

Mr. Sandvig advised there was no policy, and the money can be used according to the State guidelines. 

The Finance Director clarified that whenever a school spends the vending machine money, they must comply with the Board of Education’s purchasing guidelines.

Mr. Sandvig advised that was correct, and when they purchase an item over $5,000, they must go through the bid process at the Central Office.

Following discussion, the motion to request a copy of the audit of the school’s activity accounts including a summary sheet indicating the amount of vending machine revenue and how the money is being used passed unanimously by roll call vote.

SCHOOL BUILDING PROGRAM BUDGET AMENDMENT FOR ROOF REPAIR:

Mr. Sandvig advised at the last Budget Committee Meeting, it was requested that the Board look within the School Building Program for funds for the purpose of roof repair and/or replacements at David Youree School, Adult Education Building, Central Middle Annex and La Vergne High School.

Mr. Sandvig requested approval of the following School Building Program Amendment for $621,000, which does not fund any of the $325,500 needed for David Youree’s roof and leaves $777,000 unfunded for La Vergne High’s roof.  He advised he does not anticipate being able to fund the $777,000 from the General Purpose School Fund:

            From:            Oakland & Riverdale Mechanical Systems -                     $452,667

                        Rock Springs Middle Construction -                                                50,000

                        Rock Springs Middle Site Development -                                      50,000

                        Blackman Middle Site Development -                                            60,000

                        John Colemon Roof Repair -                                                             8,333

            To Roofs:

                        Adult Education                                                         $   36,000

                        Central Middle Annex                                                   185,000

                        La Vergne High                                                             400,000

Comm. Sandlin stated an agreement was made with the County Commission if Christiana Middle School was approved, the roof repair/replacements could be delayed. 

The Finance Director stated the funds were not in the budget to cover this expenditure.  He advised the only option would be to address this with a debt issuance.  He advised there would not be much potential for additional funding through the Debt Service Fund.  He explained if this particular bond was issued in the second half of next fiscal year, a $5 million bond could be issued.    He reported about $4 million of that is already obligated for road projects and Siegel Stadium.  He stated it would be tight to fit this into a bond issue without causing a deficit in the Debt Service Fund for a second year in a row.  He stated that might still be something the county could deal with.

Budget Minutes                                                June 6, 2002                                        Page Fourteen

Comm. Throneberry asked if the costs for the roofs were a bid or was it an estimate?

Mr. Sandvig advised it was an estimate.

Comm. Jones asked Mr. Sandvig if he thought the Board would be returning $1.2 million to the ending fund balance

Mr. Sandvig advised that was correct.

Comm. Ealy stated the county is fortunate they have been able to build more classroom space with new schools.   However, she stated it is imperative that the buildings they have be maintained.  She advised she had contacted La Vergne High School about the major issues with the roof there.  She was told the roof replacement there was a necessity.  She advised it is very disruptive.  Comm. Ealy also talked to the bookkeeper at David Youree School about their roof problems.  She advised many of the school’s are suffering from toxic mold and mildew as a result of these problems.

Mr. Sandvig advised last fall the committee was provided with a capital project update listing these school roof repairs in the second tier of roof repairs needed.

The Finance Director advised when the Superintendent requested approval of the $2.6 million for the sewer step system for Christiana Middle School, the County Commission only approved $146,000.  Therefore, everything for Christiana Middle has not been funded.  He advised the construction has been funded. 

Comm. Throneberry asked if there were any funds left over on Siegel High School?

Mr. Sandvig advised that was correct.  Mr. Sandvig reported given the estimate on the Siegel Stadium was higher than the original estimate, the hope is that any savings on Siegel High School could cover the shortage on the Siegel High Stadium.  Mr. Sandvig advised he was not sure of the amount.

The committee recessed to allow the Finance Director to get the School Building Program report.

The Chairman reconvened the meeting.

The Finance Director advised in the Siegel High School project there was $9,850 not committed in the Architect Line Item, $723,500 in construction, and $34,153 in Site Development. 

Mr. Sandvig advised if all of this money is used, the Board would definitely have to request funds for site development, and this early in construction there would probably be some changes needed.

Comm. Throneberry asked if $500,000 was taken from the Siegel High School uncommitted funds, if that would make the project short.  He advised that would give $1,121,000 available for the roofs. 

Mr. Sandvig stated there was some shared money that would be used on a high school.

The Finance Director suggested that the $500,000 from Siegel High School could be used for the La Vergne High School roof only, causing the La Vergne High School roof to be $277,000 short.

It was noted the roof costs were only estimates, and that when the project was bid, the costs might be less.

Following discussion, Comm. Throneberry moved, seconded by Comm. Sandlin to approve transferring $500,000 from the Siegel High School Construction Account to the La Vergne High School Roof Replacement for a total of $900,000 making the total available for the roof repair/replacement $1,121,000 as follows:
 

Budget Minutes                                                June 6, 2002                                        Page Fifteen

            From:   Siegel High School Construction -                          $ 500,000

                        Oakland & Riverdale Mechanical Systems -              452,667

                        Rock Springs Middle Construction -                              50,000

                        Rock Springs Middle Site Development -                    50,000

                        Blackman Middle Site Development -                          60,000

                        John Colemon Roof Repair -                                           8,333

            To:       Roof Repair/Replacement

                        Adult Education -                                                       $   36,000

                        Central Middle Annex                                                   185,000

                        La Vergne High School -                                              900,000

The motion passed unanimously by roll call vote.

The Finance Director advised the next bond issuance would take place on June 18 and close on about June 26.  He stated after June 18, he would know if there would be any premium on the bond to allocate to some project.

RECOMMENDATION TO FUND $50,000 FOR REDESIGN OF SIEGEL SPORTS COMPLEX AND LIGHTED WALKWAY:

Mr. Sandvig advised the School Board approved $20,000 out of the Siegel High School Construction Account for the redesign of the Siegel Sports Complex only.

Comm. Throneberry moved, seconded by Comm. Jones to approve $20,000 from the Siegel High School Construction Account for the redesign of the Siegel Sports Complex only.

The motion passed unanimously by roll call vote.

DEBT SERVICE FUND BUDGET AMENDMENTS

2001-02 REVENUE ADJUSTMENTS:

The Finance Director requested approval of the ATTACHED 2001-02 revenue adjustments for the General Debt Service Fund resulting in a net decrease to the ending fund balance of $471,193.

Comm. Jones moved, seconded by Comm. Throneberry to approve the 2001-02 revenue adjustments for the General Debt Service Fund as requested resulting in a net decrease to the ending fund balance of $471,193.

The motion passed unanimously by roll call vote.

RECOMMENDATION TO AUTHORIZE APPLYING FOR A TENNESSEE DEPARTMENT OF TRANSPORTATION GRANT FOR THE PURPOSE OF ESTABLISHING A VISITOR’S CENTER:

Comm. Faye Elam and Mrs. Mona Vaughn, Director of the Convention/Visitor’s Bureau for the Chamber of Commerce addressed the committee regarding a proposed grant application through the Tennessee Department of Transportation for the purpose of establishing a visitor’s center.

Mrs. Vaughn advised the grant is a federal grant and is part of the Transportation Enhancement Program.  She advised eligible activities include scenic or historic highway programs including the provision of tourist and welcome center facilities.  She advised that is what is being proposed on the Lane property. 

Mrs. Vaughn reported the Conservation Board and the Property Management Committee have given approval for the County to construct a visitor’s center according to the Convention/Visitor Bureau’s specifications on approximately one acre.

Budget Minutes                                                June 6, 2002                                        Page Sixteen

Mrs. Vaughn advised the grant is an 80%/20% grant, with the C.V.B. being responsible for the 20% match.  She explained Rutherford County and the C.V.B. would enter into a long-term lease, which would include a maintenance and operating plan for the center.  The C.V.B. would be responsible for all building and ground maintenance.

Chairman Evans asked Mr. Joe McKenzie if the Conservation Board had received approval from Mr. Lane?

Mr. McKenzie advised Mr. Lane had verbally agreed, and the County Attorney is preparing the proper documents.

Comm. Elam advised the entire project would be contingent upon Rutherford County being awarded the grant.

Comm. Jones, moved, seconded by Comm. Throneberry to approve the federal grant application through the Tennessee Department of Transportation’s Transportation Enhancement Program for a Visitor’s Center to be located on the Lane Property, with the grant being an 80%/20% grant and the Convention/Visitor’s Bureau providing the 20% match and forward the same to the full County Commission.

The motion passed unanimously by roll call vote.

Comm. Elam noted this was a recommendation as a result of the Randall Travel marketing study commissioned by the Chamber of Commerce.  She advised the study revealed that Rutherford County was losing their market share of tourism dollars.

RECOMMENDATION TO APPROVE CONCEPT OF LEASING OFFICE SPACE TO FEDERAL ASCS OFFICE ON THE AGRICULTURE EXTENSION PROPERTY:

Mr. Joe McKenzie, Agriculture Extension Director, advised of a correction.  He stated it is not the Federal ASCS office, but it is the Federal USDA Service Center.  He stated the ASCS is not in charge of preparing the bidding arrangements.  He stated that is NRCS.  He advised NRCS would prepare specifications, and both entities would occupy the space.

Mr. McKenzie advised at some point in time, the federal agencies would issue specifications for a building location different from where they are now.  He stated, it was his understanding they would be moving their office location.  He stated he believed there would be several individuals interested in providing them a new facility. 

Mr. McKenzie advised the Property Management Committee thought it was a good idea for the county to review the specifications and decide if the county would like to submit a bid in competition with others for their new location. 

Mr. McKenzie advised several other counties across the state have joined a similar endeavor.  He stated this opportunity would only be available once in a great while. 

Comm. Evans noted the Property Management Committee also recommended that the Public Building Authority determine the range of cost and advise as to the cost to build out the required space.  He stated once the county receives the specifications, have the Public Building Authority review them and assist the county in making a bid.  He also noted Mr. McKenzie had stated the Federal USDA Service Center could extend their current lease, which expires in November, nine months. 

Mr. McKenzie noted what the county is missing is the potential revenue for years to come.

Following discussion, Comm. Throneberry moved, seconded by Comm. Sandlin to approve the concept of making a bid and renting space to the Federal USDA Service Center and once the specifications are received, authorize the Public Building Authority to review the specifications

Budget Minutes                                                June 6, 2002                            Page Seventeen 

and assist the county in submitting the bid by determining a range of costs for the build out of the required space to determine the lease amount and forward to the Finance Director and the Budget Committee.

The motion passed unanimously by roll call vote.

HEALTH INSURANCE RECOMMENDATIONS:

The Insurance Committee made the following recommendations relative to the County’s health insurance program:

1.                  To approve United Health Care, through the William C. Beeler

Company, as the reinsurance carrier for Rutherford County

Effective July 1, 2002

2.                  To approve the current organ transplant carrier, Celtic Life

Insurance, through the William C. Beeler Company.

3.                  To approve the deletion of Article XXXVII, Section 8,

Health Maintenance Organization of Article VI – Benefits by

Type of Coverage effective May 1, 2002.

Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the recommendation of the Insurance Committee to approve United Health Care as the reinsurance carrier, Celtic Life Insurance as the organ transplant carrier, and the deletion of Article XXXVII, Section 8, Health Maintenance Organization of Article VI – Benefits by Type of Coverage.

The motion passed unanimously by roll call vote.

RECOMMENDATION TO PROVIDE FUNDING FROM THE DEVELOPMENT TAX FOR GREENWOOD ESTATES DRAINAGE PROJECT:

Mr. Del Corbitt advised the Public Works Committee had requested he develop an estimate of what it would cost to provide some relief for the residents of Greenwood Estates.  Mr. Corbitt provided a copy of an estimate for the Greenwood Estates drainage project of $311,100.

The Public Works Committee recommended the $311,100 for the project be funded from the Development Tax, which covers road bore, contingency, engineering and easement costs.

Mr. Corbitt advised they looked at several options, and the option chosen would run a pipe from the area where it floods around Greenwood underneath Jefferson Pike over to Mr. Tom Reed’s development.  He advised Mr. Reed had enough capacity to take the water and get it to the river.

Mr. Corbitt advised the areas were prioritized to develop the study, and Public Works wanted a specific cost estimate for the Greenwood Estates.  He stated their point was that the county had to start somewhere.

The committee discussed the liability issue.  Mr. Corbitt stated the County Attorney has not advised anything on this specific problem.  He stated the County Attorney has always said before that on the drainage problems there is always a liability if when correcting a problem another problem is created downstream.  Mr. Corbitt stated this was a service, and anytime a service is performed there is some liability.  He said there is no liability in performing the study, because there is no action taken.  The study will point out things that could take corrective action.

Chairman Evans said if there is not a problem with the water running off downstream and Mr. Reed agrees to take the water, but for some reason the pipe gets stopped up and the houses flood again, would the County be in a liability situation?   

Budget Minutes                                                June 6, 2002                                        Page Eighteen

Mr. Corbitt advised the way that is being approached is by changing the Private Act to allow the Highway Department to perform the maintenance off the right-of-way.  Mr. Corbitt stated there would need to be some way to perform the maintenance. 

Comm. Jones stated she believed the countywide drainage study would be an instrumental tool in helping to alleviate problems like this or that may occur in the future.

County Executive Allen advised she had received a letter from the City of Murfreesboro, and they are not interested in participating in the drainage study.  She stated they are spending substantial dollars on storm water regulations.

Comm. Ealy advised the Public Works Committee realized this is a specific problem, but they are very intent about wanting to start somewhere on solving the problem.  She stated they did not want it to die, but if the best the committee could do was defer it until after the study or look at it again at the beginning of the budget year, that would be acceptable.

Following discussion, Comm. Ealy moved, seconded by Comm. Peay to defer action on the request for $311,100 from the Development Tax for the Greenwood Estates drainage project until after the Corp of Engineers completes their study.

Mr. Corbitt advised it would probably take the Corp about three or four months to complete the study.  He stated if it is delayed until after September, then it will be getting close to winter and the wet season. 

Comm. Peay stated he is in favor of the county funding the project.  He stated he did not want to do it because of the liability issue, but he believed the county had to start somewhere.  He stated he did not feel good about making a commitment until the study is complete.  He explained he did not want to install the pipe under Jefferson Pike until the county knows how that is going to affect someone downstream.

Following discussion, the motion to defer action on the request for $311,100 from the Development Tax for the Greenwood Estates drainage project until after the Corp of Engineers completes their drainage study passed unanimously by roll call vote.

OTHER BUSINESS

CONTRACT BETWEEN DEPARTMENT OF CHILDREN’S SERVICES AND RUTHERFORD COUNTY JUVENILE DETENTION CENTER:

County Executive Allen requested approval to execute a contract amending the agreement between Rutherford County and the Tennessee Department of Children’s Services.  She reported this would be an amendment to the current contract for the Juvenile Detention Center.  She explained it is an opportunity to get revenue back to the County.  The maximum liability of the State under this Contract would not exceed $47,789.18.

Comm. Sandlin moved, seconded by Comm. Peay to authorize the County Executive to execute Amendment Two to the contract between the State of Tennessee Department of Children’s Services and Rutherford County for the Juvenile Detention Center Reimbursement not to exceed $47,789.18.

The motion passed unanimously by roll call vote.

ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 9:30 P.M.

_____________________________________

Elaine Cawthon, Secretary