BUDGET, FINANCE & INVESTMENT COMMITTEE

October 5, 2000 6:15 P.M. Courthouse

MINUTES:

Members Present: Others Present: Others Present:

Comm. Jerry Baxter Comm. Carol Cook Carla Rutledge

Comm. Joyce Ealy Comm. Grant Kelley Ben Mankin

Comm. Joe Frank Jernigan Comm. Robert Peay Dan Sinclair

Comm. Paul Johnson Evans Maples Randy White

Comm. Tina Jones John Bratcher Tommy Brown

Comm. Dwight Throneberry Mike Nunley Brian Brooks

Comm. Jimmy Evans, Chair. Judge Donna Scott Paul Long

Elaine Cawthon

Vice Chairman Jernigan presided until Chairman Evans arrived and called the meeting to order with five members being present at that time.

APPROVE MINUTES:

The minutes of the September 7, 2000 meeting were presented for approval.

Comm. Baxter moved, seconded by Comm. P. Johnson to approve the minutes as presented.

The motion passed by acclamation with Comm. Jones and Chairman Evans being absent at that time.

INVESTMENT REPORT:

Mr. Evans Maples, Trustee, presented the monthly Investment Report for the use and information of the committee.

Mr. Maples reported the LGIP interest rate for the month was 6.55%

Mr. Maples explained the various investment transactions that occurred during the month.

Comm. P. Johnson moved, seconded by Comm. Baxter, to approve the Investment Report as presented.

The motion passed by acclamation with Comm. Jones and Chairman Evans being absent at that time.

FUND CONDITION REPORT:

Finance Director Paul Long presented the monthly Fund Condition Report for the use and information of the committee.

Mr. Long explained the Development Tax Report, which reflected $234,750 collected for the month of September as compared to $189,375 for September of last year.

The year-to-date collections total $523,125 as compared to $626,250 for the same period last year.

Mr. Long explained the report of Fund Cash Balances. Mr. Long explained all of the remaining Christy Houston money has been refunded in regard to the Community Care project, except for $42,229.74, which was money donated by the old Nursing Home Board, plus interest. This money is to be used for the purchase of additional furniture.

The total cash balances, as of September 30, are $90,382,818, with $60,181,276 being operating funds and $30,201,542 being borrowed funds.

Budget Minutes October 5, 2000 Page Two

Mr. Long explained the remainder of the Fund Condition Report. He reported there are no unusual conditions to report.

Comm. Baxter moved, seconded by Comm. Throneberry, to approve the Fund Condition Report as presented.

The motion passed unanimously by acclamation.

GENERAL FUND BUDGET AMENDMENTS

CHANCERY COURT:

Mr. John Bratcher, Clerk & Master, requested approval of the committee for the following budget amendment. Mr. Bratcher explained the Court Officer terminated his employment with Rutherford County, and was therefore, compensated for his accumulated vacation. This amendment provides adequate funding for the remainder of the year for the new Court Officer plus the associated benefits.

From: 101-39000 – Undesignated Fund Balance - $1,533

To: 101-53400-164 – Attendants - $1,314

101-53400-201 – Social Security - 82

101-53400-204 – State Retirement - 117

101-53400-212 – Employer Medicare - 20

Following discussion, Comm. Jernigan moved, seconded by Comm. Baxter, to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

HEALTH DEPARTMENT:

In the absence of the Health Department Director, the Finance Director presented the following budget amendment for the approval of the committee:

From: 101-55190-399 – Other Contracted Services - $16,790

101-55190-709 – Data Processing Equip. - 2,000

To: 101-55190-131 – Medical Personnel - $12,134

101-55190-201 – Social Security - 755

101-55190-204 – State Retirement - 1,075

101-55190-205 – Employee Insurance - 2,667

101-55190-212 – Employer Medicare - 180

Decrease Revenue: 101-46310 – Health Dept. Programs $ 778

Increase Fund Balance: 101-39000 $ 2,757

Mr. Long explained this amendment reflects a revision to the state contract. He reported Mrs. Bayless has been notified the maximum amount of the State’s participation in this program has been reduced from $551,600 to $542,200. He explained the County had not anticipated receiving or spending all of those funds. He further explained this request also reflects a transfer from Other Contracted Services and Data Processing Equipment to Medical Personnel and the associated benefits to cover an additional office assistant at entry level to the state funded program at the Health Department. He further explained this amendment also reflects a $778 reduction in the state revenue projection. The net effect is an addition to ending fund balance of $2,757.

Budget Minutes October 5, 2000 Page Three

Mr. Long reported if the request is approved, the County Executive would also need to be authorized to execute Amendment No. 1 to Grant Z-01-098792-00, which reduces the maximum liability to the State.

Comm. Jernigan moved, seconded by Comm. Baxter to approve the budget amendment as requested and to forward to the full commission a recommendation that the County Executive be authorized to execute Amendment No. 1 to Grant Z-01-098792-00 between the State of Tennessee Department of Health and Rutherford County, which reduces the maximum liability to the State from $551,600 to $542,200.

The motion passed unanimously by roll call vote.

EMERGENCY MEDICAL SERVICES:

Mr. Mike Nunley, Emergency Medical Services Director, requested approval of the following budget amendment in order to purchase a copy machine:

From: 101-55130-735 – Health Equipment - $10,140

To: 101-55130-719 – Office Equipment (new item) - $10,140

Mr. Nunley explained the reason there was money available in the Health Equipment Account was because they had planned to purchase automatic electronic defibrillators for the pedal medics. However, the defibrillators have been obtained through a Christy Houston grant, causing there to be money available.

Comm. Baxter moved, seconded by Comm. P. Johnson, to approve the request as presented.

The motion passed unanimously by roll call vote.

Mr. Nunley requested approval of the following budget amendment, which corrects a budget amendment previously approved at the August meeting:

Decrease Fund Balance:101-39000 $300

Decrease Revenue: 101-44570 – Contributions & Gifts - $300

The Finance Director explained when this amendment was previously approved; it was approved to increase the current revenue account. He explained this revenue was actually received at the end of June, and the amendment should have been approved from Fund Balance instead of the current revenue account.

Comm. Baxter moved, seconded by Comm. Ealy to approve the amendment as requested.

The motion passed unanimously by roll call vote.

JUVENILE DETENTION:

Judge Donna Scott and Carla Rutledge requested approval from the committee for the following budget transfer to purchase a copy machine:

From: 101-54240-499 – Other Supplies & Materials - $1,080

To: 101-54240-790 – Other Equipment - $1,080

Comm. Jernigan moved, seconded by Comm. P. Johnson, to approve the budget transfer as requested.

The motion passed unanimously by roll call vote.

Budget Minutes October 5, 2000 Page Four

COMMUNITY CARE ROOF REPLACEMENT:

Mr. Ben Mankin, Maintenance Supervisor, and Mr. Dan Sinclair, Consolidated Roofing, addressed the committee regarding the Community Care Roof.

Mr. Mankin reported he had reviewed the original bid specs, and due to some concerns he had, he asked Mr. Sinclair to look at the roof and make a report.

Mr. Long explained when the refund to Christy Houston was made for the final Phase I money, the County Executive also requested Christy Houston fund this project from that available money. He reported Christy Houston would not be meeting until October 18. He stated it was his understanding, at least one portion of this project is a desperate situation.

Mr. Sinclair reported the roof has been going down hill for years, and the life of the roof has now gotten critical. He said it is being recommended to put a coal tar pitch roof back on the building. Mr. Sinclair explained the base bid of $134,800 is where the greatest amount of deterioration is. Alternate No. 2 for $115,840 is for the wings. He explained this was re-roofed approximately ten years ago, and the field of the roof is still in good condition. He stated the problem with the wings is that the flashing is rusting through, and the expansion joints are starting to show quite a bit of wear.

Mr. Sinclair stated he believed the county could get five more years from the roof on the wings with an expenditure of approximately $35,000 over three to five years.

Mr. Mankin reported originally Mr. Mansfield obtained estimates from vendors, but it has been determined the original specs will not work for the roof. Mr. Sinclair stated now, under state law, if a community building is re-roofed it has to have an architect’s seal on it. He stated when the original specs were obtained, it was not looked at from an architectural standpoint.

Mr. Mankin reported alternate No. 4 for paint canopies could be done in house, and did not have to be considered.

Comm. Jernigan made a motion to approve $141,800 for the Community Care roof to include the base bid plus alternate No. 1 for the 25 year warranty pending a decision from the Christy Houston Foundation.

Comm. Jernigan stated he wanted to hear from Christy Houston one way or the other before anything is done.

Mr. Long pointed out there is already $75,000 appropriated in the Local Purpose Tax Fund for the Community Care roof.

Following discussion, Comm. Jernigan withdrew motion.

Comm. Jernigan moved, seconded by Comm. P. Johnson to approve $66,800 from the Development Tax for the Community Care roof depending on what action is taken by the Christy Houston Foundation and to authorize the County Executive to wait until October 25 to execute the contract:

From: 120-39000 – Undesignated Fund Balance - $66,800

To: 120-91140-706 – Building Construction - $66,800

The motion passed unanimously by roll call vote.

Budget Minutes October 5, 2000 Page Five

RECOMMENDATIONS REGARDING MIDDLE TENNESSEE ELECTRIC MEMBERSHIP PROPERTY:

The Finance Director reported the auction for the two Middle Tennessee Electric Membership properties located at 415 North Maple Street and 810 Commercial Court will be held on Thursday, October 26.

Mr. Long explained it is his understanding the Property Management Committee would like to acquire either one or both of the properties, but not at the owner’s asking price. Therefore, the Property Management Committee has recommended that the County Executive and/or her designee attend the auction to try to acquire the property. Mr. Long reported he has discussed the matter with the County Attorney, representatives from the Division of County Audit, and several others about any precedent there may be regarding a county purchasing property at public auction.

Mr. Long stated it appears from his discussions that with the permission of the County Commission, a delegation from the county could participate in the auction and make a binding offer on the property.

He stated the committee would need to determine how that would take place and whether or not any boundaries need to be established or whether to do that in consultation with the parties to be designated to go to the auction.

Chairman Evans stated the asking price on the property on North Maple was $2,625,000, and the asking price for the property on Commercial Court was $945,000. He stated the delegation sent to the auction could have knowledge about the money to be spent without necessarily disclosing it.

Mr. Long reported a 10% nonrefundable deposit must be made the day of the sale. He stated the committee could ask the county commission to adopt a resolution of intent to fund the purchase, maybe through an inter-fund note.

Following discussion, Comm. Throneberry moved, seconded by Comm. Jones to authorize Paul Long, Finance Director, Comm. Evans, and County Executive Nancy Allen attend the auction.

Following discussion, Comm. Throneberry withdrew his motion, and Comm. Jones withdrew the second to the motion.

Comm. Jernigan moved, seconded by Comm. Jones to designate Finance Director Paul Long, County Executive Nancy Allen, and Budget Committee Chairman Jimmy Evans to attend the auction on Thursday, October 26 at 2:00 P.M. to bid on the 810 Commercial Court property and to also authorize the issuance of a short-term inter-fund note to fund the purchase.

The motion passed unanimously by roll call vote.

Comm. Jernigan moved, seconded by Comm. Baxter to designate Finance Director Paul Long, County Executive Nancy Allen, and Budget Committee Chairman Jimmy Evans to attend the auction on Thursday, October 26 at 12:00 noon to bid on the 415 North Maple Street property using the Assessor of Property assessed value as a guideline and to also authorize the issuance of a short-term inter-fund note to purchase the property.

The motion passed unanimously by roll call vote.

Mr. Long also pointed out there will be a five percent buyer’s premium added to the winning bid to determine the final selling price.

Budget Minutes October 5, 2000 Page Six

RECOMMENDATION OF LOCATION FOR EMERGENCY MEDICAL SERVICES DISPATCH CENTER:

Comm. Jernigan moved, seconded by Comm. P. Johnson to approve $524,963 from the Development Tax to build and equip a new Emergency Medical Services Dispatch Center to be built on one acre of county-owned property located on Southgate Boulevard and any money collected from the insurance company from the lightening strike be returned to the Development Tax Fund.

Mr. Tommy Brown explained there is a replacement value clause relating to the insurance on the equipment. He reported the prices on the equipment are the manufacturers suggested retail prices. He explained he could not ask the vendors to give competitive prices and they be published and then the county bid the equipment. He said he could only take those prices and guess as to what the insurance company is going to do. He stated he would estimate it would be between $80,000 and $90,000.

A discussion was held as to why a new center needed to be built as opposed to repairing and renovating the one in existence.

Mr. Nunley reported in the five year plan, he has requested a new dispatch center for several years. He stated he has included it in his operating budget the last two years, and it has been cut before it ever got to the Budget Committee. He explained the dispatch operation has increased over the years, and he expects it to keep on increasing. Mr. Nunley reported they have a very small room and are limited on space. He explained in addition to the equipment the county lost in the lightening strike, 911 lost about $160,000 and BellSouth lost approximately $100,000 in equipment. He stated it appeared to be an appropriate time for a new center since all of the equipment was going to have to be replaced.

Comm. Jernigan reported he had spent two days with Mr. Nunley and Mr. Brown. He stated he believed, at first, the county could build on to the current building. He reported in looking at the overall situation, he is convinced with the money that will have to be spent, that this situation will have to be addressed in the near future. He reported the county owns 15 acres on Southgate Boulevard where the School Board Central Office is located. He stated he has looked at the property, and there is already sewer and water on the site. He explained he has discussed the matter with Mr. Watson and Mr. McLaughlin and has addressed the School Board regarding the use of the property. He stated it would not interfere with the School Board’s future plans for the property.

Mr. Nunley reported, as well as being the dispatch center, the current building also serves as the operations center. He explained all of the equipment and supplies are stored there, there are three administrative offices there, it houses two ambulance teams, and it houses all of the equipment for the specialty teams. He reported if a new dispatch center is constructed, it will free up a closet space, one bathroom, and one other room.

Comm. Carol Cook questioned if the 911 fee collected on telephone bills could be used to fund this project. Mr. Nunley reported 911 could use this money to provide some of their equipment, which they do. He explained 911 provides them with voice recorders for all of the telephone and radio conversations. He stated 911 does not really do any dispatching.

Comm. Baxter explained relative to the Road Board, the Highway Department is not in a big hurry.

It was noted the County Commission appropriated $25,000 at the September meeting to provide architectural and engineering funds to begin the dispatch center, and that the $524,963 could be reduced to $500,000.

Comm. Jernigan agreed to change his motion to $500,000 and Comm. P. Johnson agreed to change the second to the motion.

Budget Minutes October 5, 2000 Page Seven

A discussion was held relative to the Emergency Services Dispatch Center providing dispatch services for Animal Services, as well as the Correctional Work Center.

Following discussion, the motion to approve $500,000 from the Development Tax to build and equip an Emergency Medical Services Dispatch Center to be located on one acre of county-owned property located on Southgate Boulevard with any insurance money collected to go back in to the Development Tax Fund failed by roll call vote with Commissioners Ealy and Jernigan voting “yes”, and Commissioners Baxter, P. Johnson, Jones, Throneberry and Evans voting “no”.

Comm. P. Johnson moved, seconded by Comm. Baxter, to support the concept of a new Emergency Medical Services Dispatch Center and to identify the Southgate property as the location and to utilize the $25,000 previously appropriated by the County Commission for the preliminary design and report back to the Budget Committee next month or whenever the design is complete with specific costs for the project.

The motion passed by roll call vote with Commissioners Baxter, Ealy, P. Johnson, Jones, Throneberry, and Evans voting “yes”, and Comm. Jernigan voting “no”.

AUTHORIZE ACCEPTANCE OF FEDERAL GRANT:

Finance Director Paul Long reported every year the Sheriff’s Department receives a small federal grant of approximately $30,000 to $35,000 under the Local Law Enforcement Block Grant Program. He explained notification was received last week that the county will again receive the grant. He stated this year the guidelines have changed, and the county has to accept the award within 45 days of the award date, which is October 1. He explained the County Executive prefers the County Commission authorize her to accept the award. He reported the amount of the grant is $30,601, with the County matching 10%. Mr. Long reported the Sheriff’s Department typically spends this money for equipment.

Comm. P. Johnson moved, seconded by Comm. Jernigan, to authorize the County Executive to accept a federal Local Law Enforcement Block Grant award in the amount of $30,601, with the county to match 10%.

The motion passed unanimously by roll call vote.

PAYROLL PAYMENTS 1^ST AND 15^TH OF MONTH:

Comm. P. Johnson asked the Finance Director if the county would save any money by going to the first and fifteenth payroll instead of the current biweekly payroll system. Mr. Long reported the problem would be with tracking and calculating overtime. He explained the Fair Labor Standards defines that period of time as a week. He stated, therefore, overtime has to be calculated based on the hours worked in a week. If the payroll cuts off every 15 days, often times there will be split weeks, and it would be more difficult to track the wage and hour compliance.

ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 8:45 P.M.

_________________________________

Elaine Cawthon, Secretary

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