1 WAKE COUNTY BOARD OF COMMISSIONERS Regular Meeting April 1, 2013 2:00 P.M. Room 700, Wake County Courthouse Members present were: Chairman Joe Bryan, Phil Matthews, Paul Coble, Tony Gurley, Caroline Sullivan, Betty Lou Ward, James West Others attending were: David C Cooke; County Manager, Scott Warren; County Attorney, Denise Hogan; Deputy Clerk, Joe Durham and Johnna Rogers, Deputy Managers Meeting Called to Order: Chairman Joe Bryan Pledge of Allegiance Invocation: Chairman Joe Bryan Items of Business Approval of Agenda Chairman Bryan asked for approval of the agenda. Betty Lou Ward motioned, seconded by Phil Matthews, to approve the agenda. The motion passed unanimously. Commissioner Coble asked that he be recused from item #10 and #11. Approval of the Minutes of the Commissioners' Work Session on March 11, Regular Meeting on March 18, 2013 and Joint Meeting with Board of Education on March 21, 2013 Paul Coble motioned, seconded by Tony Gurley, to approve the Minutes of the Commissioners' Work Session on March 11, Regular Meeting on March 18, and Joint Meeting with Board of Education on March 21, 2013. The motion passed unanimously. Caring, Serving, Respecting, Customer Award (CSRC) Mr. David Cooke said that Mr. Mark Anglin was nominated for the Caring, Serving, Respecting, Customer Award (CSRC). Mr. Anglin was the recipient of
Transcript
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WAKE COUNTY BOARD OF COMMISSIONERS
Regular Meeting
April 1, 2013
2:00 P.M.
Room 700, Wake County Courthouse
Members present were: Chairman Joe Bryan, Phil Matthews, Paul Coble, Tony Gurley, Caroline Sullivan, Betty Lou Ward, James West
Others attending were: David C Cooke; County Manager, Scott Warren; County Attorney, Denise Hogan; Deputy Clerk, Joe Durham and Johnna Rogers,
Deputy Managers Meeting Called to Order: Chairman Joe Bryan Pledge of Allegiance Invocation: Chairman Joe Bryan Items of Business
Approval of Agenda Chairman Bryan asked for approval of the agenda. Betty Lou Ward motioned,
seconded by Phil Matthews, to approve the agenda. The motion passed unanimously.
Commissioner Coble asked that he be recused from item #10 and #11.
Approval of the Minutes of the Commissioners' Work Session on March 11, Regular Meeting on March 18, 2013 and Joint Meeting with Board of
Education on March 21, 2013 Paul Coble motioned, seconded by Tony Gurley, to approve the Minutes of the Commissioners' Work Session on March 11, Regular Meeting on March 18, and
Joint Meeting with Board of Education on March 21, 2013. The motion passed unanimously.
Caring, Serving, Respecting, Customer Award (CSRC) Mr. David Cooke said that Mr. Mark Anglin was nominated for the Caring, Serving, Respecting, Customer Award (CSRC). Mr. Anglin was the recipient of
the 2nd quarter 12-13 winner for his work as a Paramedic for Wake County Public Safety Department.
Recognition of PAGE Wake Spelling Bee Winner Ms. Nancy Caggia, Co-Chair, PAGE Wake Spelling Bee, said that Partners for the Advancement of Gifted Children (PAGE) of Wake County held its Third
Annual Regional Spelling Bee on February 23, 2013, at the McKimmon Conference Center, North Carolina State University. She recognized Mr. Ethan
Wagner for winning the spelling bee. Ms. Caggia said that Mr. Wagner will receive a paid trip to the National Scripps Bee in Washington, DC from Sunday, May 26 to Friday, May 31, 2013, to represent the region.
Mr. Wagner thanked the board for recognizing him.
Chairman Bryan presented Mr. Wagner with a certificate. He asked how many schools participated in the spelling bee. Mr. Wagner said there were 91 schools
that participated. Vice-Chairman Matthews said that he attended the Spelling Bee event last
year. He complimented the contestants that participate each year.
Presentation from WakeMed Chairman Bryan recognized Mr. Bill Atkinson, CEO of WakeMed Health and
Hospitals; and Mr. Tom Oxholm, WakeMed Board of Directors. Chairman Bryan complimented them for their service to Wake County.
Mr. Tom Oxholm, WakeMed Board of Directors, said there are 14 members of the WakeMed Board of Directors. Wake County Board of Commissioners appoints eight of the fourteen. He said the Board of Commissioners has
received copies of the hospital year end budget summary for September 30, 2012. He said that in 1997, WakeMed was transferred to a not-for-profit entity. He said the WakeMed Board of Directors works nearly 200 hours a year
making decisions about the hospital. He said that he will end his tenure on the WakeMed Board of Directors on May 25, 2013. He has served on the board
for ten years. He said that Health Care Reform has been on the forefront recently. He said the cost to provide services to the indigent uninsured was over $70 million last year. He said WakeMed continues to be the safety net for
the community. He said that WakeMed has 8300 employees. The Briar Creek Emergency Room Healthplex opened last year. The Garner Emergency Room
Healthplex will open this summer. He said there was a Northplex planned for the future. He thanked the board for their leadership and support of the WakeMed Board of Directors.
Mr. Bill Atkinson, President and CEO, WakeMed Health and Hospitals, thanked the Board of Commissioners for their support of WakeMed. He said
that all patients are seen regardless of color, creed, or background. He said that there are 2,000 volunteers and 1200 physicians at WakeMed. He said
there should be a state-wide solution for mental health care. He said that since the closure of Dorthea Dix Hospital, WakeMed has an average of 51
patients a day that need ongoing mental health care. He said the cost was $1 million this past year for supervision of these patients. He said Healthcare Reform is still in the process. The impacts of the reform will determine the
direction for the reimbursements to WakeMed. The workforce is an important investment to the community, and Wake Technical Community College is the largest provider of nurses for WakeMed. WakeMed has the seventh largest
police department in Wake County. There are 69 sworn officers that serve the WakeMed campus. Mr. Atkinson said Healthcare Reform is about patient care
and payment reform. He said the legislature has an interest in healthcare state-wide. The Certificate of Need is being evaluated in all counties of North Carolina. He said the Certificate of Need will affect WakeMed’s ability to
provide services. Limited licensure may also be affected by the legislature. He said students of the new School of Medicine at Campbell University will be
trained by WakeMed staff. Mr. Atkinson thanked the County Manager and Board of Commissioners for their work toward health services in Wake County. Mr. Atkinson said that he recently attended a Gathering of the Eagles
Physicians meeting in Dallas, Texas, and Dr. Brent Myers, Wake County Emergency Medical Director, spoke about Wake County and its progress of emergency services. He thanked the board for supporting emergency services.
He said that WakeMed relies on Wake County Emergency Services for care.
Commissioner Ward said that she was a patient at WakeMed last year and received excellent care. She asked whether the Medical Doctors (MDs) and
Doctors of Osteopathy (DOs) at Campbell University are able to practice at WakeMed. Mr. Atkinson said they both can practice at WakeMed. Campbell
University anticipates 160 students to be enrolled in the school. Mr. Atkinson said WakeMed will continue to partner with UNC and Duke Universities.
Vice-Chairman Matthews asked about how many mental health patients seen at WakeMed live in Wake County. Mr. Atkinson said the majority of patients
that are admitted are from Wake County and have dual health issues such as surgical and mental health. He said that some patients recycle into the hospital system. Mr. Atkinson said there is an absence of daily care for mental
health patients and a system to care for them.
Chairman Bryan said that the Wake County Board of Commissioners' Goals includes strengthening partnerships. He asked about the state of WakeMed.
Mr. Oxholm said its state is good. He said there will be major changes in health care reform. Physicians are a major part of the changes with delivery of health care. He said that two years ago there was a Physician’s Management
Organization organized for uninsured patients. He said there will be transitions for WakeMed to be profitable. Mr. Oxholm said serving patients for
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the right reason provides good outcomes. He said there are efforts to deliver uninsured care and provide needs. Mr. Atkinson said it would be easy to take
the position of meeting the goals of the average hospital. WakeMed continues to provide the best care for the right reasons.
Commissioner Ward asked about the Falls of Neuse Emergency Room and the
Women's Hospital. Mr. Atkinson said that there is a need for women’s' services in this area.
Mr. Oxholm thanked the Board of Commissioners for appointing Mr. Don Munford to the WakeMed Board of Directors. He said that it is important to
have a board member with a financial background.
Public Comments: No public comments were made.
Consent Agenda
Federal Fiscal Year 2012 Emergency Management Performance Grant (EMPG) award from the State of North Carolina in the Amount of
$14,877.88 Paul Coble motioned, seconded by Phil Matthews, to accept and appropriate the North Carolina Department of Public Safety Emergency Management Performance Grant in the amount of $14,877.88 to be placed in the County's
Grants and Donations fund and authorizes the County Manager to sign the Memorandum of Agreement. The motion passed unanimously.
Department of Transportation Hazardous Materials Emergency Planning Grant for Federal Fiscal Year 2013 Totaling $10,000
Paul Coble motioned, seconded by Phil Matthews, to accept the Department of
Transportation Hazardous Materials Emergency Preparedness Grant via the North Carolina Department of Public Safety in the amount of $10,000, with
funds to be appropriated in FY 2013 Grants and Donations fund and; Authorize the County Manager to sign the Memorandum of Agreement. The motion passed unanimously.
Fund: Grants and Donations Fund
Date Description of Revision or Adjustment Revenue Category Amount Balance
July 1, 2012 Original Appropriation $2,045,000 $2,045,000
July 2, 2012 Accept and Appropriate a $17,000 Grant from
the National Association of County and City
Health Officials
Miscellaneous $17,000 $2,062,000
August 20, 2012 Certify, Accept, and Appropriate $92,307 for
Wake County's Public, Educational, and
Governmental (PEG) Channels
State $92,307 $2,154,307
September 4, 2012 Accept and Appropriate $198,042 for the
2012 Edward Byrne Memorial Justice
Assistance Grant
Federal $198,042 $2,352,349
September 6, 2012 Adjustments to Reflect Actual Receipts Miscellaneous $32,001 $2,384,350
December 3, 2012 Accept and Appropriate $7,760 from the
Department of Homeland Security for the
Community Emergency Response Team
(CERT)
Federal $7,760 $2,392,110
January 22, 2013 Accept and Appropriate $20,858.86 from the
Governors Crime Commission to the Raleigh-
Wake City/County Bureau of Identification
Federal $20,859 $2,412,969
Multiple Out of cycle grant cleanup and closeout
adjustments to reflect actual receipts.
Multiple $90,952 $2,503,921
February 18, 2013 Accept and Appropriate $18,000 Grant from
National Association of County & City Health
Officials
Miscellaneous $18,000 $2,521,921
April 1, 2013 Proposed: Accept and Appropriate $14,878
Grant from the
Federal $14,878 $2,536,799
April 1, 2013 Proposed: Accept and Appropriate $10,000
grant from the Department of
Transportation Hazardous Materials
Emergency Preparedness
Federal $10,000 $2,546,799
Date Description of Revision or Adjustment Department Amount Balance
July 1, 2012 Appropriation per Ordinance $2,045,000 $2,045,000
July 2, 2012 Accept and Appropriate a $17,000 Grant from
the National Association of County and City
Health Officials
Environmental
Services
$17,000 $2,062,000
August 20, 2012 Certify, Accept, and Appropriate $92,307 for
Wake County's Public, Educational, and
Governmental (PEG) Channels
County Manager $92,307 $2,154,307
September 4, 2012 Accept and Appropriate $198,042 for the
2012 Edward Byrne Memorial Justice
Assistance Grant
Sheriff $198,042 $2,352,349
September 6, 2012 Adjustments to Reflect Actual Receipts Environmental
Services
$32,001 $2,384,350
December 3, 2012 Accept and Appropriate $7,760 from the
Department of Homeland Security for the
Community Emergency Response Team
(CERT)
Federal $7,760 $2,392,110
January 22, 2013 Accept and Appropriate $20,858.86 from the
Governors Crime Commission to the Raleigh-
Wake City/County Bureau of Identification
CCBI $20,859 $2,412,969
Multiple Out of cycle grant cleanup and closeout
adjustments to reflect actual receipts.
Multiple $90,952 $2,503,921
February 18, 2013 Accept and Appropriate $18,000 Grant from
National Association of County & City Health
Officials
Environmental
Services
$18,000 $2,521,921
Arpil 1, 2013 Proposed: Accept and Appropriate $14,878
from the North Carolina Department of
Public Safety Emergency Management
Performance Grant
Fire/EM $14,878 $2,536,799
Arpil 1, 2013 Proposed: Accept and Appropriate $10,000
grant from the Department of
Transportation Hazardous Materials
Emergency Preparedness
Fire/EM $10,000 $2,546,799
Date Description of Revision or Adjustment Department FTEs Balance
July 1, 2012 Appropriation per Ordinance Multiple 18.75 18.75
STAFFING
EXPENDITURES
REVENUES
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Tax Committee Recommendations for Value Adjustments, Late Filed Applications, Collections Refunds and Tax Collections
Paul Coble motioned, seconded by Phil Matthews, to accept Tax Committee recommendations for Value Adjustments, Late Filed Applications, Collections
Refunds and Tax Collections. The motion passed unanimously. 1. Report Collections – Wake County Only – February 2013
2. Wake County In-Rem Foreclosure Progress Report – February 2013
3. Consideration of Requests for Adjustments, Rebates, and/or Refunds of Penalties:
(Wake County and Town of Garner), (Wake County and City of Raleigh)
4. Consideration of Refund for Taxes, Interest, and Penalties: (Wake County Only), (Wake County and Town of Cary), (Wake County and Town of Morrisville), (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)
5. Consideration of Requests for Tax Relief Exclusions: (Wake County and City of Raleigh), (Wake County and Town of Wake Forest)
6. Consideration of Requests for Tax Deferment: (Wake County and City of Raleigh)
7. Consideration of Requests for Exemptions: (Wake County and City of Raleigh)
8. Rebate Details: (Wake County and Town of Apex), (Wake County and Town of Cary), (Wake County and Town of Fuquay-Varina), (Wake County and Town of Garner), (Wake County and Town of Holly Springs), (Wake County and Town of Knightdale), (Wake County and Town of Morrisville), (Wake County and City of Raleigh), (Wake County and Town of Rolesville), (Wake County and Town of Wake Forest), (Wake County and Town of Wendell), (Wake County and Town of Zebulon)
Request for Commissioner Coble to be recused from items # 10 and #11.
Joe Bryan motioned, seconded by Phil Matthews, to recuse Commissioner Coble from item #10 (Amend Business Investment Grant Policy to Recognize
Significant Job Creation) and #11 (Public Hearing and Consideration of Business Investment Grant for MetLife Inc.).
Joe Bryan motioned, seconded by Phil Matthews, to recuse Commissioner Coble from items # 10 and #11. The motion passed unanimously. Regular Agenda
Public Hearing Regarding the Authorization of $51,165,000 of General Obligation School Bonds and Approval of Issuance of $51,165,000 of
General Obligation School Bonds and $125,250,000 of General Obligation Public Improvement Bonds
Ms. Nicole Kreiser, Wake County Debt and Capital Manager, said that the Board of Commissioners adopted the bond order regarding $51,165,000 of
general obligation school bonds on first reading and called for a public hearing on April 1, 2013 in regards to the bond order authorizing $51,165,000 of general obligation school bonds. She said that it is requested that the Board of
Commissioners issue $51,165,000 of general obligation school bonds. These general obligation bonds, or two-thirds bonds, are authorized by NCGS 159-49. Of the $51,165,000, approximately $19 million is to fund the construction of
the new Career and Technical Education High School. The remaining proceeds will be used towards other school construction needs to jump start the next
Wake County Public School System building program. She said the request also includes the issuance of $125,250,000 General Obligation Improvement Bonds for the 2012 building program totaling $104,250,000 and $21,000,000
for Open Space. There was $50 million of Open Space bonds that were approved by the 2007 referendum and $29 million have been issued. She said that fixed rate bonds would be sold on April 9, 2013.
Chairman Bryan opened the public hearing.
No one came forward to speak. Chairman Bryan closed the public hearing.
Ms. Kreiser said that Wake County's Triple-A Rating has been upheld by all three rating agencies. Chairman Bryan noted that out of 3,069 counties, Wake
County is 38th with its Triple-A rating.
Caroline Sullivan motioned, seconded by Betty Lou Ward, to authorize $51,165,000 General Obligation School Bonds:
1. Adopt the attached bond order on second reading and authorizing
$51,165,000 of General Obligation School Bonds;
2. Adopt the attached resolutions authorizing the issuance of $51,165,000
General Obligation School Bonds, Series 2013 A and the issuance of $125,250,000 General Obligation Improvement Bonds, Series 2013 B for Community College Improvements totaling $104,250,000 and
$21,000,000 for Open Space; and 3. Approve the form of the Official Statement and Notices of Sale for Series
2013A and 2013B Bonds, requests the sale of such Bonds by the Local Government Commission and the use of the Official Statement and
Notices of Sale in connection with the sale, and authorizes the execution and delivery of documents in connection with the bond sale. The motion passed unanimously.
within Bond in every particular, without alteration
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of enlargement or any change whatever.
Certificated Bonds issuable hereunder shall be in substantially the form of the Bonds
registered in the name of Cede & Co. with such changes as are necessary to reflect the provisions
of this resolution that are applicable to Certificated Bonds.
Section 4. The Bonds maturing on or prior to May 1, 2023 are not subject to redemption
prior to maturity. The Bonds maturing on May 1, 2024 and thereafter will be subject to
redemption prior to their maturity, at the option of said County, from any moneys that may be
made available for such purpose, either in whole or in part on any date not earlier than May 1,
2023, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed,
plus accrued interest to the date fixed for redemption.
If less than all of the Bonds of any one maturity shall be called for redemption, the
particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in
such manner as said County in its discretion may determine; provided, however, that the portion
of any Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof
and that, in selecting Bonds for redemption, each Bond shall be considered as representing that
number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000.
So long as a book-entry system with DTC, is used for determining beneficial ownership of
Bonds, if less than all of the Bonds within the maturity are to be redeemed, DTC and its
participants shall determine which of the Bonds within a maturity are to be redeemed by lot. If
less than all of the Bonds stated to mature on different dates shall be called for redemption, the
particular Bonds or portions thereof to be redeemed shall be called such manner as the County
may determine.
Not more than sixty (60) nor less than thirty (30) days before the redemption date of any
Bonds to be redeemed, whether such redemption be in whole or in part, the County shall cause a
notice of such redemption to be filed with the Bond Registrar and to be mailed, postage prepaid,
to the registered owner of each Bond to be redeemed in whole or in part to his address appearing
upon the registration books of the County, provided that such notice to Cede & Co. shall be
given by certified or registered mail. Failure to mail such notice or any defect therein shall not
affect the validity of the redemption as regards registered owners to whom such notice was given
as required hereby. Each such notice shall set forth the date designated for redemption, the
redemption price to be paid and the maturities of the Bonds to be redeemed. In the event that
Certificated Bonds are outstanding, each such notice to the registered owners thereof shall also
set forth, if less than all of the Bonds of any maturity then outstanding shall be called for
redemption, the distinctive numbers and letters, if any, of such Bonds to be redeemed and, in the
case of any Bond to be redeemed in part only, the portion of the principal amount thereof to be
redeemed. If any Bond is to be redeemed in part only, the notice of redemption shall state also
that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds in
principal amount equal to the unredeemed portion of such Bond will be issued.
Any notice of redemption may state that the redemption to be effected is conditioned
upon the receipt by the County on or prior to the redemption date of moneys sufficient to pay the
principal of and interest on the Bonds to be redeemed, and that if such moneys are not so
received, such notice shall be of no force or effect and such Bond shall not be required to be
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redeemed. In the event that such notice contains such a condition and moneys sufficient to pay
the redemption price and interest on such Bonds are not received by the County on or prior to the
redemption date, the redemption shall not be made and the County shall within a reasonable time
thereafter give notice, in the manner in which the notice of redemption was given, that such
moneys were not so received.
On or before the date fixed for redemption, moneys shall be deposited with the Bond
Registrar to pay the principal of and the redemption premium, if any, on the Bonds or portions
thereof called for redemption as well as the interest accruing thereon to the redemption date
thereof.
On the date fixed for redemption, notice having been given in the manner and under the
conditions hereinabove provided, the Bonds or portions thereof called for redemption shall be
due and payable at the redemption price provided therefor, plus accrued interest to such date. If
moneys sufficient to pay the redemption price of the Bonds or portions thereof to be redeemed,
plus accrued interest thereon to the date fixed for redemption, are held by the Bond Registrar in
trust for the registered owners of Bonds or portions thereof to be redeemed, interest on the Bonds
or portions thereof called for redemption shall cease to accrue, such Bonds or portions thereof
shall cease to be entitled to any benefits or security under this resolution or to be deemed
outstanding, and the registered owners of such Bonds or portions thereof shall have no rights in
respect thereof except to receive payment of the redemption price thereof, plus accrued interest
to the date of redemption.
If a portion of a Bond shall be selected for redemption, the registered owner thereof or his
attorney or legal representative shall present and surrender such Bond to the Bond Registrar for
payment of the principal amount thereof so called for redemption and the redemption premium,
if any, on such principal amount, and the Bond Registrar shall authenticate and deliver to or upon
the order of such registered owner or his legal representative, without charge therefor, for the
unredeemed portion of the principal amount of the Bond so surrendered, a Bond or Bonds of the
same maturity, of any denomination or denominations authorized by this resolution and bearing
interest at the same rate.
Section 5. Bonds, upon surrender thereof at the office of the Bond Registrar together
with an assignment duly executed by the registered owner or his attorney or legal representative
in such form as shall be satisfactory to the Bond Registrar, may, at the option of the registered
owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same
maturity, of any denomination or denominations authorized by this resolution and bearing
interest at the same rate.
The transfer of any Bond may be registered only upon the registration books of the
County upon the surrender thereof to the Bond Registrar together with an assignment duly
executed by the registered owner or his attorney or legal representative in such form as shall be
satisfactory to the Bond Registrar. Upon any such registration of transfer, the Bond Registrar
shall authenticate and deliver in exchange for such Bond a new Bond or Bonds, registered in the
name of the transferee, of any denomination or denominations authorized by this resolution, in
an aggregate principal amount equal to the unredeemed principal amount of such Bond so
surrendered, of the same maturity and bearing interest at the same rate.
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In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be
registered hereunder, the Bond Registrar shall authenticate and deliver at the earliest practicable
time Bonds in accordance with the provisions of this resolution. All Bonds surrendered in any
such exchange or registration of transfer shall forthwith be canceled by the Bond Registrar. The
County or the Bond Registrar may make a charge for shipping and out-of-pocket costs for every
such exchange or registration of transfer of Bonds sufficient to reimburse it for any tax or other
governmental charge required to be paid with respect to such exchange or registration of transfer,
but no other charge shall be made by the County or the Bond Registrar for exchanging or
registering the transfer of Bonds under this resolution. The Bond Registrar shall not be required
to exchange or register the transfer of any Bond during a period beginning at the opening of
business fifteen (15) days before the date of the mailing of a notice of redemption of Bonds or
any portion thereof and ending at the close of business on the day of such mailing or of any Bond
called for redemption in whole or in part pursuant to Section 4 of this resolution.
As to any Bond, the person in whose name the same shall be registered shall be deemed
and regarded as the absolute owner thereof for all purposes, and payment of or on account of the
principal or redemption price of any such Bond and the interest on any such Bond shall be made
only to or upon the order of the registered owner thereof or his legal representative. All such
payments shall be valid and effectual to satisfy and discharge the liability upon such Bond,
including the redemption premium, if any, and interest thereon, to the extent of the sum or sums
so paid.
The County shall appoint such registrars, transfer agents, depositaries or other agents as
may be necessary for the registration, registration of transfer and exchange of Bonds within a
reasonable time according to then current commercial standards and for the timely payment of
principal, interest and any redemption premium with respect to the Bonds. The Deputy County
Manager/Chief Financial Officer of the County, or any person at any time acting in such
capacity, is hereby appointed the registrar, transfer agent and paying agent for the Bonds
(collectively the “Bond Registrar”), subject to the right of the Board for the County to appoint
another Bond Registrar, and as such shall keep at his office in the County, the books of the
County for the registration, registration of transfer, exchange and payment of the Bonds as
provided in this resolution.
Section 6. The County covenants that, to the extent permitted by the Constitution and
laws of the State of North Carolina, it will comply with the requirements of the Internal Revenue
Code of 1986 (the “Code”), as amended or as may be amended from time to time, and any
Treasury regulations now or hereafter promulgated thereunder, to the extent necessary so that
interest on the Bonds will not be included in gross income of the owners of the Bonds for
purposes of federal income tax.
Section 7. All actions of the Chairman of the Board, the County Manager, the Deputy
County Manager/Chief Financial Officer, the Debt and Capital Director and the Clerk to the
Board for the County and other officers of the County in applying to the Local Government
Commission of North Carolina to advertise and sell the Bonds are hereby approved, ratified and
confirmed, and the Local Government Commission of North Carolina is hereby requested to ask
for sealed bids for the Bonds by publishing notices and printing and distributing a Preliminary
Official Statement relating to the sale of the Bonds. The County Manager, the Deputy County
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Manager/Chief Financial Officer and the Debt and Capital Director are hereby authorized to
assist the Local Government Commission in preparing such Preliminary Official Statement, to be
dated the date of delivery thereof, and such Preliminary Official Statement may be used in
relation to the offering and sale of the Bonds.
The preparation of a final Official Statement (the “Final Official Statement”), which will
be in the form of the Preliminary Official Statement, but will include certain pricing and other
information to be made available to the successful bidder for the Bonds by the Local
Government Commission of North Carolina, is hereby approved, and the Chairman of the Board,
the County Manager and the Deputy County Manager/Chief Financial Officer of the County are
hereby authorized to execute such Final Official Statement for and on the behalf of the County,
and such execution shall be conclusive evidence of the approval of the Board of the Final
Official Statement.
Section 8. The County hereby undertakes, for the benefit of the beneficial owners of the
Bonds, to provide to the Municipal Securities Rulemaking Board (the “MSRB”):
(a) by not later than seven months from the end of each fiscal year of the County,
beginning with the fiscal year ending June 30, 2013, audited financial statements of the County
for such Fiscal Year, if available, prepared in accordance with Section 159-34 of the General
Statutes of North Carolina, as it may be amended from time to time, or any successor statute, or,
if such audited financial statements of the County are not available by seven months from the
end of such fiscal year, unaudited financial statements of the County for such fiscal year to be
replaced subsequently by audited financial statements of the County to be delivered within
fifteen (15) days after such audited financial statements become available for distribution;
(b) by not later than seven months from the end of each fiscal year of the County,
beginning with the fiscal year ending June 30, 2013, (i) the financial and statistical data as of a
date not earlier than the end of the preceding fiscal year for the type of information included
under the headings “Debt Information” and “Tax Information” (excluding any information on
underlying units) in Appendix A to the Final Official Statement relating to the Bonds and (ii) the
combined budget of the County for the current fiscal year, to the extent such items are not
included in the audited financial statements referred to in (a) above;
(c) in a timely manner not in excess of ten business day after the occurrence of the event,
notice of any of the following events with respect to the Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
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(6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax status of the Bonds or other
events affecting the tax status of the Bonds;
(7) modification to the rights of the beneficial owners of the Bonds, if material;
(8) bond calls, other than calls for mandatory sinking fund redemption, if material, and
tender offers;
(9) defeasances;
(10) release, substitution or sale of any property securing repayment of the Bonds, if
material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the County;
(13) the consummation of a merger, consolidation, or acquisition involving the County
or the sale of all or substantially all of the assets of the County, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material; and
(14) appointment of a trustee or a successor or additional trustee or the change of name
of a trustee, if material; and
(d) in a timely manner, notice of a failure of the County to provide required annual
financial information described in (a) or (b) above on or before the date specified.
All information provided to the MSRB as described in this Section shall be provided in
an electronic format as prescribed by the MSRB and accompanied by identifying information as
prescribed by the MSRB.
The County may meet the continuing disclosure filing requirements described above by
complying with any other procedure that may be authorized or required by the United States
Securities and Exchange Commission.
If the County fails to comply with the undertaking described above, any beneficial owner
of the Bonds may take action to protect and enforce the rights of all beneficial owners with
respect to such undertaking, including an action for specific performance; provided, however,
that failure to comply with such undertaking shall not be an event of default and shall not result
in any acceleration of payment of the Bonds. All actions shall be instituted, had and maintained
in the manner provided in this paragraph for the benefit of all beneficial owners of the Bonds.
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The County reserves the right to modify from time to time the information to be provided
to the extent necessary or appropriate in the judgment of the County, provided that:
(a) any such modification may only be made in connection with a change in
circumstances that arises from a change in legal requirements, change in law, or change in the
identity, nature or status of the County;
(b) the information to be provided, as modified, would have complied with the
requirements of Rule 15c2-12 as of the date of the Official Statement, after taking into account
any amendments or interpretations of Rule 15c2-12, as well as any changes in circumstances;
and
(c) any such modification does not materially impair the interests of the beneficial owners
of the Bonds, as determined either by parties unaffiliated with the County (such as bond
counsel), or by the approving vote of the registered owners of a majority in principal amount of
the Bonds pursuant to the terms of this resolution, as this resolution may be amended from time
to time, at the time of such amendment.
In the event that the County makes such a modification, the annual financial information
containing the modified operating data or financial information shall explain, in narrative form,
the reasons for the modification and the impact of the change in the type of operating data or
financial information being provided.
The provisions of this Section shall terminate upon payment, or provision having been
made for payment in a manner consistent with Rule 15c2-12, in full of the principal of and
interest on all of the Bonds.
Section 9. The Chairman of the Board, the Vice Chairman of the Board, the County
Manager, the Deputy County Manager/Chief Financial Officer and the Debt and Capital Director
of the County and the Clerk to the Board or any deputy or assistant Clerk to the Board are hereby
authorized and directed to execute and delivery such closing and other documents necessary for
the purpose of facilitating the sale and issuance of the Bonds in a manner consistent with the
terms of this resolution.
Section 10. This resolution shall take effect upon its passage.
Upon motion of Commissioner Sullivan, seconded by Commissioner Ward, the foregoing
resolution entitled “RESOLUTION PROVIDING FOR THE ISSUANCE OF $125,250,000
GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2013B” was passed
by the following vote:
Ayes: Joe Bryan, Phil Matthews, Paul Coble, Tony Gurley, Caroline Sullivan, Betty Lou
Ward, and James West.
Noes: N/A
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* * * * * *
I, Denise Hogan, Deputy Clerk of the Board of Commissioners for the County of Wake,
North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the
proceedings of said Board at a regular meeting held on April 1, 2013, as it relates in any way to
the holding of a public hearing, the adoption of the foregoing bond order authorizing general
obligation bonds of said County and the adoption of a resolution authorizing the issuance of
general obligation bonds of said County and that said proceedings are recorded in the minutes of
said Board.
I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was
given as required by North Carolina law.
WITNESS my hand and the official seal of said County this 1st day of April, 2013.
Deputy Clerk to the Board of Commissioners
Amend Business Investment Grant Policy to Recognize Significant Job Creation
Mr. Cooke said that Wake County has a Business Investment Grant Policy to support the development of an economic environment that attracts and encourages new investment, creates jobs, and results in a diverse tax base.
The existing policy provides that a company may be eligible for a Business Investment Grant if they meet both the new investment threshold and the new
jobs threshold. The Board of Commissioners is requested to consider an amendment to the policy that would consider grant award to companies with a lower new investment threshold in recognition of significant job creation. The
proposed amendment would provide that new or existing companies with new investment of at least $50 million creating a minimum of at least 250 new full-time jobs paying 200% the current Wake County average wage be eligible for a
Business Investment Grant.
The other terms of the existing policy would remain unchanged:
1. New companies with at least $100,000,000 in new assessed valuation
with at least 50 new jobs paying 120% of the Wake County average wages would be eligible for a grant.
2. Existing companies with an existing taxable assessed value exceeding $75,000,000 the year the grant agreement is approved, with at least
$50,000,000 in new investment with at least 50 new jobs paying 120% of the Wake County average wages would be eligible for a grant.
3. The grant amount can be up to 2.25% of new assessed value on Wake County tax records.
4. The grant can be paid over a period of up to eight years. 5. If the investment is in a municipality, a match is required from
municipalities for the grant amount, and the County’s portion for this
project will be up to the amount provided by the municipality. He said that the grant has been in place since 2005 and companies such as
Novartis, Credit Suisse, and NetApp have located in Wake County. He said MetLife would create 1200 new jobs in Wake County with an average
compensation of $112,000. He said Wake County's average wage was $45,396 yearly in 2012. He said no incentive payments will be made until taxes are paid and the investments are producing the threshold and minimum number
of jobs. Mr. Cooke recognized Mr. Ken Atkins, Vice-President, Greater Raleigh Chamber of Commerce.
Vice-Chairman Matthews asked about how the tax payments are distributed.
Mr. Cooke said that the policy is performance based and there are certain criteria that has to take place before an incentive payment is made by Wake
County. He said the Board of Commissioners has made agreements with Lenovo and GlaxoSmithKline, and Fidelity, but these companies did not uphold the requirements of the policy.
Joe Bryan motioned, seconded by Phil Matthews, to amend the Business Investment Grant Policy to recognize new investment with significant job creation.
The motion to amend the Business Investment Grant Policy to recognize new investment with significant job creation was approved with vote of 6 - 0. Commissioner Coble was recused from the vote.
WAKE COUNTY INCENTIVE GRANT AGREEMENT
This Incentive Grant Agreement (the “Agreement”) is made and entered into as of the 1st day of
April, 2013 by and between METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation (the
“Company”) and WAKE COUNTY, North Carolina, a body politic and corporate and political subdivision of
the State of North Carolina (the “County”). The County and Company may from time to time hereinafter
be referred to individually as a “Party” and collectively as the “Parties.”
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WITNESSETH:
WHEREAS, the Local Development Act of 1925, as amended, (Article 1 of Chapter 158 of the
North Carolina General Statutes) grants counties the authority to make appropriations for the purposes
of aiding and encouraging the location or expansion of certain business enterprises in the county or for
other purposes which the county’s governing body finds, in its discretion, will increase the population,
taxable property base and business prospects of the county; and
WHEREAS, N.C. Gen. Stat. § 158-7.1(b) lists specific economic development activities which a
county may undertake, which list is not exclusive; and
WHEREAS, in the fall of 2012, the Company began discussions with the State of North Carolina,
and thereafter with the County, to explore the possibility of relocating certain technology operations to
a technology center in the County (the “Project”); and
WHEREAS, on February 18, 2013, the Board of Commissioners of the County met in closed
session regarding the Company and its location possibilities and determined that (i) the Project would
tend to increase the population, taxable property base and business prospects of the County, (ii) an
incentive grant would encourage the Company to locate and provide jobs in the County, and (iii) it
would be in the public interest to provide assistance as authorized by N.C. Gen. Stat. § 158-7.1 and
approved the negotiation of a business investment grant agreement for the Project; and
WHEREAS, the Company has decided to locate the Project within the County in Cary, North
Carolina to include the acquisition and/or construction of land, a build-to-suit facility (the “Facility”),
fixtures, machinery and equipment, and other business personal property; and
WHEREAS, per the County’s business investment grant policy, the Project is expected to meet
the investment threshold of $50,000,000 in the County for new businesses creating at least 250 full-time
jobs paying 200% the current County average wage; and
WHEREAS, the Company has affiliates, MetLife Group, Inc., a New York corporation, and
Metropolitan Property and Casualty Insurance Company, a Rhode Island corporation, which will assist
39
with the investment at the Project and/or the creation of jobs at the Project (the Company and those
two affiliates are hereafter collectively called “MetLife”); and
WHEREAS, MetLife anticipates employing over 1,200 employees at the Project, and investing or
causing to be invested for acquisitions of tangible personal property and improvements to real estate
related to the Project a sum in excess of $85,000,000; and
WHEREAS, N.C. Gen. Stat. § 153A-449 authorizes the County to contract with and appropriate
money to any person, association, or Company in order to carry out the public purpose in which the
County is authorized by law to engage; and
WHEREAS, the Board of Commissioners of the County found that the consideration that the
County will receive, based on prospective tax revenues to be generated over an eight-year period due to
investment in the Project, will exceed the amount of the grant offered herein; and
WHEREAS, the Board of Commissioners of the County, following a public hearing on April 1,
2013, approved the execution of the business investment grant for the Project by the Company.
NOW, THEREFORE, in consideration of the reasons recited above, and the mutual covenants and
obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereby agree as follows:
1. Real Estate Purchase, Facility Construction, and Machinery and Equipment Acquisition.
(a) All construction undertaken, or caused to be undertaken, by MetLife shall be or
has been designed, constructed, and completed in accordance with applicable
standards established by federal, state, local, and County regulations and laws;
and
(b) the County shall not be responsible for any aspect of the design or construction
of the premises.
40
2. Performance by the Company. This Agreement and the expenditure of County funds
hereunder is expressly contingent upon MetLife achieving the performance
requirements, and within the time periods, set forth below.
(a) Investment in Real Estate Improvements and Equipment. MetLife shall make, or
cause to be made, investments for improvements to real estate and for
acquisitions of tangible personal property (together, the “Improvements”),
which shall total at least $50,000,000 and shall occur on or before December 31,
2015. The Improvements shall include all real and personal property (excluding
land) related to the Project, whether or not the Improvements are owned by
MetLife, and for avoidance of doubt, shall specifically include Improvements
made to the Project by Company’s lessor (the “Lessor”). The Company shall
provide to the County documentation for Improvements made by Lessor.
(b) Employment. According to the requirements of the County’s business
investment grant policy, MetLife shall have employed as of December 31, 2014
at least two-hundred fifty (250) new, full-time employees with an average
annual wage of at least 200% of the current average annual wage for the
County, as defined by the North Carolina Department of Commerce Finance
Center. The Parties agree that the term “new employee” as used in this
Agreement means a full-time employee who represents a net increase in
MetLife’s employees at the Project. A full-time employee is a person who is
employed by MetLife for at least thirty-five (35) hours per week and whose
wages are subject to withholding. MetLife agrees to include residents of the
County in recruiting for such job positions.
(c) Use. The Improvements shall be made to accommodate a technology center,
allowing MetLife to bring talent together to concentrate on its business and
customer technology support while also seeking ways to innovate for a
continually enhanced customer and user experience.
(d) Payment of Taxes by Company. The County must receive confirmation from the
County tax assessor’s office that the Company has paid, in full, and that Lessor
has paid in full, the annual ad valorem taxes based on the increased value
resulting from Improvements owned by each in the Project.
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3. Documentation from the Company. In connection with each request for
reimbursement, the Company shall deliver to the County’s finance director a
performance letter certifying that (1) it has undertaken the actions enumerated in
Section 2(a) and (b), and that as of the date of the letter, the Improvements for which
the request is made have been completed. Upon the request of the County’s finance
director, the Company shall present to the County such evidence as may be reasonably
requested to confirm the facts in the performance letter. To the full extent allowed by
law, such requested evidence shall be kept confidential by the County and shall remain
the property of the Company to be returned after the County’s review.
It is agreed that the County, through its auditors, shall have the right upon reasonable
notice and during normal business hours, to inspect and audit Company records
pertaining to Improvements made in respect to the Project. All records revealed by the
Company to the County’s auditors shall remain confidential and may be used by the
County only for audit purposes to the full extent allowed by law.
The Company acknowledges that it has been informed by the County that County is
required by law, upon request, to disclose “Public Records” as that term is defined by
N.C. Gen. Stat. § 132-1. Notwithstanding the immediately preceding sentence, the
County acknowledges that some or all of the information made available by the
Company to the County pursuant to this Agreement may be exempt from disclosure as a
“Public Record” pursuant to N.C. Gen. Stat. §§ 132-1.2 and/or 132-6(d), and that all such
information may be proprietary. Some or all of the information made available to the
County pursuant to this Agreement may be designated by the Company as confidential
and as a trade secret at the time of disclosure to the County. The County, to the fullest
extent allowed by state law, will hold such designated information as confidential. The
County shall, if it receives a request for disclosure of any such information, notify the
Company of such request so that the Company may defend any claims or disputes
arising from efforts of others to cause such trade secrets to be disclosed as a Public
Record, and the County shall refrain from making any such disclosures unless or until it
(i) receives the Company’s written permission to do so; or (ii) is compelled to do so by
the final order of a court of competent jurisdiction. The Company shall have the right to
direct any litigation of such dispute and shall indemnify the County for any legal fees
and expenses incurred by the County in opposing such request for disclosure. The
Company acknowledges that the County has met the disclosure requirements set forth
in N.C. Gen. Stat. § 132-1.11(b).
4. Payment of Grant.
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(a) The County agrees to partially reimburse the Company for the
Improvements that MetLife or Lessor incurs for the Project in order to
provide an incentive to MetLife for making such Improvements and
creating such jobs within the County. A cash grant will be paid to the
Company in an amount equal to a percentage of the taxable property base
of the Improvements, as determined by the County tax assessor as more
specifically set forth in Section 4(c).
(b) Once MetLife has met the performance requirements set forth in Section 2
and has submitted the required documentation under Section 3, it shall be
eligible to receive the grant payments described herein. The grant
payments shall begin at the discretion of the Company the year after the
taxable property base of the Improvements attributable to the Project as
determined by the County tax assessor first exceeds $50,000,000. The
exact date of payments during each grant year shall be at the discretion of
the County but shall be made during the period of January 1st through
March 31st.
(c) The amount of the grant payments to be paid by the County to the
Company shall be 2.25% of the assessed value of the Improvements with
respect to the Project, paid over a period of eight (8) years. In one of the
eight (8) years, to be determined by the Company in its sole discretion and
communicated to the County in the Company’s request for reimbursement,
the grant payment to be paid by the County to the Company shall be equal
to .5% of the assessed value of the Improvements. For the other seven (7)
years of grant payments, the County shall pay a grant payment to the
Company equal to .25% of the total amount of the assessed value of the
Improvements as of January 1st of the preceding calendar year. In no
event shall the grant amount paid by the County in any year exceed the
amount of ad valorem taxes paid for Improvements to the Project in the
preceding year.
(d) The grant payments made by the County hereunder to the Company shall
qualify for matching funds from the State of North Carolina pursuant to
the One North Carolina Fund grants.
5. Amendments to Agreement. This Agreement can be modified or amended only with the
mutual written consent of the Parties.
6. Parties. This Agreement shall be binding upon and shall inure to the benefit of the
Parties and their heirs and successors and assigns. As used herein, words in the singular
43
include the plural and the masculine includes the feminine and neuter genders, as
appropriate.
7. Entire Agreement. This Agreement contains the entire agreement of the Parties and
there are no other representations, inducements, or other provisions other than those
expressed in this writing. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute but one and the same instrument. All changes, additions, or deletions hereto
must be in writing and signed by all parties.
It is specifically understood and agreed that the Company will be subject to applicable
County ordinances, policies, procedures, and other regulations.
8. Laws of North Carolina To Control This Agreement. The Parties agree that this
Agreement is to be controlled by the laws of the State of North Carolina.
9. Jurisdiction and Venue. Any controversy or claim arising out of this Agreement shall be
settled by an action initiated in the appropriate division of the General Court of Justice
in Wake County, North Carolina.
10. Termination. Except as otherwise provided herein, this Agreement shall terminate on
December 31st of the last year in which the County makes grant payments to the
Company hereunder.
11. Assignment. The Company may assign all or part of its rights, benefits, and/or
obligations under this Agreement to one or more affiliates. The Company may also
assign or retain all or part of its rights, benefits, and/or obligations under this
Agreement to a purchaser of the real estate, improvements, and/or machinery in
connection with a “sale/leaseback” transaction; provided, however, that no such
assignments shall relieve the Company of its employment obligations set forth in
Section 2(b) of this Agreement.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written.
ATTEST: COUNTY OF WAKE
By:
Susan J. Banks Joe Bryan
County Clerk Chairman, Board of Commissioners
Approved As To Form
Scott Warren
Wake County Attorney
METROPOLITAN LIFE INSURANCE
COMPANY
By:
Joseph W. Sprouls
Senior Vice President
Wake County Business Investment Grant Policy
Approved January 3, 2005 Amended October 17, 2005
Revisions Proposed April 1, 2013 Policy Objective
Support the development of an economic environment that attracts or encourages new investment, creates new jobs, and results in a diverse tax base. Eligible Projects A company (“Economic development projects”) may be eligible for a Business Investment Grant if they meet both a New Investment Threshold and New Jobs Threshold. Special consideration may be given to corporate, regional, or divisional headquarters projects for Fortune 500 companies and large international companies.
45
New Investment Threshold New or existing companies may be eligible for a Business Investment Grant for new investments, which exceed $100,000,000 (one hundred million dollars). New investment is defined as, “improvements to real estate, machinery, equipment, and other business personal property.” The value of land is not included in the calculation of new investment. New investment must exceed $100,000,000 in assessed valuation, as determined by the Wake County Revenue Department. Existing Wake County businesses may be eligible for a Business Investment Grant for new investments which exceed $50,000,000, provided that existing taxable assessed valuation exceeds $75,000,000 in the year the grant agreement is approved. For companies creating a minimum of 250 new full-time jobs paying 200% ( or double) the current Wake County average wage, the threshold for new investment would be $50 million dollars.” Only the value of the new investment will be used to calculate the amount of the incentive
grant. New Jobs Threshold New or existing companies are eligible for a business investment grant when the investment threshold is met and at least 50 new jobs are created. New jobs are defined as a net increase in the company’s number of full-time, Wake County employees. A full-time employee is defined as a person who is employed by or a contractor for the company working at least 35 hours per, and whose wages are subject to withholding. The average wage for new jobs must pay 120% of the average wage for Wake County, as defined by the North Carolina Department of Commerce Finance Center When a NC Department of Commerce (NCDOC) grant is part of the overall incentive package, the number of new jobs and salary levels required by the county will be the same as the NCDOC requirements unless the company qualifies for special consideration under the “super jobs provision” of this policy. In that case, at least 250 jobs must be created. Salary and employment documentation provided to the NCDOC will serve as Wake County documentation, and a NCDOC determination of non-performance will also be considered as non-performance for Wake County. The Company must also agree to provide health insurance in at least the minimum amount required for tax credits under the current 3J tax credit legislation or any future State level tax credit incentive legislation. Policy Guidelines 1. Business Investment Grants will be considered for companies meeting the new
investment and new job thresholds. The Board of Commissioners is not obligated to make any grants.
2. All projects will be considered on a case-by-case basis. The County will consider a
number of factors (in addition to level of new investment and number of new jobs) when determining approval of a Business Incentive Grant, including:
Type of business, relative to current tax base
Types of new jobs
Reputation of company
The presence of competition for the project 3. The amount of the grant payment to be paid by the County shall be up to 2.25%
assessed value of the new investment paid over a period of up to eight years. In no
46
event shall the grant amount exceed the amount of ad valorem taxes paid by the company on the new investment in that calendar year.
4. The county will require that the assessed value of new investment is confirmed by the Wake County Revenue Department and that all property taxes are paid prior to providing a grant payment.
5. For projects/companies considering locating (or expanding) in one of the municipalities within Wake County, the County assumes it will be a partner with the municipality in providing a possible Business Incentive Grant.
6. All grant agreements are subject to performance criteria that will be outlined in detail in a Business Investment Grant contract between the company and the County approved in an open meeting of the Wake County Commissioners. In the event that a company fails to meet any of the provisions of the contract, the County may adjust the amount of the grant to the company or withdraw the grant entirely.
Public Hearing and Consideration of Business Investment Grant for
MetLife Inc. Mr. Cooke said that MetLife has announced plans to establish a hub for Global
Technology and Operations that will be located in Wake County and Mecklenburg County areas. The Town of Cary, City of Charlotte, and Mecklenburg County will benefit from the new business. He said the Town of
Cary has already approved their Business Investment Grant. He said that in March 2013, MetLife committed to a new investment of $85 million and the creation of over 1,200 jobs with an average salary of $112,000. Under the
terms of the new Business Investment Grant Policy, MetLife would qualify for a grant. In order to receive the grant payment from the county, MetLife must
meet performance criteria as stipulated in the County's policy and outlined in the County's agreement. Mr. Cooke said the grant amount can be up to 2.25% of new assessed value on Wake County tax records. He shared a draft schedule
of potential payments. Mr. Cooke shared the performance criteria outlined in the agreement:
1. New investment (> $50 million) 2. New job creation (> 250 new jobs with 200% average wage of Wake
County) 3. Payment of property taxes
Chairman Bryan opened the public hearing. No one came forward to speak.
Chairman Bryan closed the public hearing.
Chairman Bryan said MetLife will bring 1200 jobs to Wake County. He thanked Mr. Ken Atkins, Vice-President, Greater Raleigh Chamber of
Commerce, for his work in bringing more economic development to Wake County. He said that additional tax revenue will help Wake County fund education, Human Services and Public Safety. He said that Human Capital
will improve in Wake County with residents being involved in the community.
The Home Builders Association will benefit because of increased housing needs. He said that all the 3,069 counties in the United States would like to
have this opportunity. He said Wake County has a potential of providing a grant amount of $1,893,500 that will generate $3,563,916 in taxes. He
challenged Mr. Atkins to bring forward more business investments to Wake County.
Betty Lou Ward motioned, seconded by Caroline Sullivan, to approve a
business investment grant to Metropolitan Life Insurance, Inc. (MetLife) subject to final terms and conditions acceptable to the County Attorney following the required public hearing.
The motion to approve a business investment grant to Metropolitan Life Insurance, Inc. (MetLife) subject to final terms and conditions acceptable to the County Attorney following the required public hearing, passed with a vote of 6
to 0. Commissioner Coble was recused from voting.
Approval of a Multi-year contract with Stafford Transport of North Carolina for the East Wake Transfer Station
Mr. John Roberson, Wake County Solid Waste Director, said in 2006 Wake
County entered into an Interlocal Agreement with South Wake Partnership which includes all of the cities and towns within Wake County, except for Holly Springs. In 2008, the county agreed to take on the operation and maintenance
of the East Wake Transfer Station (EWTS) and the associated Municipal Solid Waste (MSW) hauling from the transfer station to the South Wake Landfill via
an amendment to the South Wake Partnership. He said that the transfer agreement was developed and signed by the City of Raleigh, with the current provider EWTS that had a term of five years with no provision of an extension.
Based on the current tonnages brought through EWTS the contract has an annual value of $3-4 million each year. Wake County issued a new Request for
Proposal (RFP) for the required services at the EWTS in late January and received proposals from five firms on February 20, 2013. The following firms submitted proposals:
Bowen Company, Inc.
East Coast Resource Group, LLC
Hilco Transport, Inc.
Lucky Dog Industries, LLC
Stafford Transport of NC, Inc.
Mr. Roberson said the Wake County staff established a RFP Selection Committee which consisted of representatives from Wake County, the City of Raleigh and the Town of Knightdale. He shared the pricing for the five firms.
Stafford Transport provided the lowest proposed pricing as part of the RFP process. As part of the evaluation of the committee, Stafford Transport of North Carolina's parent company, Stafford Logistics, Inc., is considered the
largest tractor-trailer waste hauler in the Southeast region and the second largest nationwide. Stafford Logistics various companies provide waste hauling
for 114 transfer stations and loading for 41 transfer stations in the southeast. He said that Stafford Logistics has grown over the past couple years due to their purchase of Custom Ecology, Inc. and First Tree Transport, LLC and has
2 large equity partnerships (80% ownership). Financial Analysis shows that Stafford transport has been in business since 1998 and consolidated into Stafford Logistics in 2011 and 2012. Review by Wake County Finance
Department staff indicates that the consolidated entity has a healthy balance sheet and solid earnings that should be stable over the life of Wake County's
contract. The contract is an eight year contract with one four year option. Stafford Transport was the only proposer that was able to provide audited financial reports for the past three years. Mr. Roberson said staff recommends
Stafford Transport.
Paul Coble motioned, seconded by Caroline Sullivan, to authorize the County Manager to execute an eight-year contract with Stafford Transport of North
Carolina, Inc. with one four-year extension for providing the East Wake Transfer Station Operation & Maintenance and Municipal Solid Waste
Transportation Services, subject to terms and conditions acceptable to the County Attorney. The motion passed unanimously.
Transfer of Savings from Hammond Road Detention Center to Debt
Service Fund Ms. Nicole Kreiser, County Debt and Capital Manager, said that the Hammond Road Detention Center was completed in April 2012 and there are additional
savings of $3,366,901.93 in the project as a result of the favorable bid climate and limited use of project contingency. The project was funded with Limited Obligation Bonds (LOBs) and recommended that all bond proceeds not spent in
the project be transferred to the Debt Service Fund, with $100,000 of cash funds be transferred to the project in order to cover remaining items that may
Total Project Cost/Year
Bidder O&M Cost/Ton Hauling Cost/Ton Total Cost/Ton At 260K Tons/Yr
Stafford Transport 3.59$ 8.56$ 12.15$ 3,159,000.00$
arise during the remainder of building closeout. From the original project estimate of $186.8 million, there was $41.8 million in savings achieved in the
Hammond Road Detention Center project. She said the request reduces the appropriation for the Hammond Road Detention Center Phase 2 project and to
appropriate those proceeds in the Debt Service Fund. Mr. Phil Stout, Facilities Design and Construction Manager, said that with
future projects it is important to select a design team that has experience with similar projects. He said that selection of an experienced Construction Manager at Risk is important with this size of a project. He said when projects
are considered, sub-contractors should be evaluated for their capacity to do the job. He said the timing of the bid market is important for competitive pricing.
He said there were savings of $41.8 million for the Hammond Road Detention Center, and the county expects to save $32 million on the Justice Center project.
Chairman Bryan complimented Mr. Stout and his staff for their dedication,
leadership and strategy. Mr. Stout said that the projects are a team effort.
Commissioner Ward complimented Mr. Stout for his service to Wake County. Mr. Stout said he will be retiring April 30, 2013. Mr. Stout said his first
grandson was born yesterday. Vice-Chairman Matthews said that before Mr. Stout retires staff should consult
him about future building projects and obtain suggestions of savings. Commissioner West asked about the project manager for the Hammond Road Detention Center. Mr. Stout said Skanska was the project manager.
Tony Gurley motioned, seconded by James West, to transfer $3,366,901.93 from the County Capital Projects fund to the Debt Service Fund and transfers
$100,000 from the Debt Service fund to the County Capital Projects Fund and adjusts the budget for the Hammond Road Detention Center and the Debt Service Fund accordingly.
The motion passed unanimously.
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Revenues Revenues
Hammond Road Detention
Center Phase 2 LOBs148,199,699.52$ Debt Service Fund 235,447,000.00$
Limited Obligation Bonds (3,366,901.93) Other Financing Sources 3,366,901.93
Transfer from DS Fund 100,000.00 Interest Income (100,000.00)
Unallocated Budget CIP (3,266,901.93) Bond Interest 3,266,901.93
Revised Budgeted
Expenditures144,932,797.59$
Revised Budgeted
Expenditures238,713,901.93$
From: County Capital Projects Fund To: Debt Service Fund
Element: Criminal Justice Fund: County Capital Projects
Program: Hammond Road Detention Center Phase 2
Date Description of Revision or Adjustment Revenue Category Amount Balance
As of 7/1/2012 Current Appropriation $148,199,699.52 $148,199,699.52
April 1, 2013 Proposed: Adjust budgeted revenues for
Hammond Road Detention Center Phase 2
Limited
Obligation Bonds
-$3,366,901.93 $144,832,797.59
April 1, 2013 Proposed: Adjust budgeted revenues for
Hammond Road Detention Center Phase 2
Transfer from
Debt Service
Fund
$100,000.00 $144,932,797.59
Date Description of Revision or Adjustment Expenditure
Category
Amount Balance
As of 7/1/2012 Current Appropriation $148,199,699.52 $148,199,699.52
April 1, 2013 Proposed: Adjust budgeted expenditures for
Hammond Road Detention Center Phase 2
Unallocated
Budget CIP
-$3,266,901.93 $144,932,797.59
EXPENDITURES (Use of Funds)
REVENUE CATEGORY
51
Appointments
Wake County Historic Preservation Commission Commissioner Coble nominated Mr. Patrick Lawson for a two year term.
Wake County Nursing Home Community Advisory Committee Commissioner West said that he has asked the Wake County Human Services Board to help identify potential applicants for the Wake County Nursing Home
Community Advisory Committee and Wake County Adult Care Home Community Advisory Committee.
Commissioner Gurley nominated Ms. Sharon Lord for a one year term.
City of Raleigh Board of Adjustment
Commissioner Coble nominated Mr. Tommy Jeffreys as a Regular Member (requires suspension of rules) and Mr. Joseph Lyle as an Alternate Member.
Paul Coble motioned, seconded by James West, to accept the nominations by
acclamation.
The motion passed unanimously.
Fund: Debt Service Fund
Date Description of Revision or Adjustment Revenue Category Amount Balance
As of July 1, 2012 Current Appropriation $ 235,447,000.00 $ 235,447,000.00
January 22, 2013 Adjust budgeted revenues for Debt Service Fund Transfer from
General Fund
(1,000,000.00) 234,447,000.00
January 22, 2013 Adjust budgeted revenues for Debt Service Fund Appropriated Fund
Balance
1,000,000.00 235,447,000.00
April 1, 2013 Proposed: adjust budgeted revenues for Debt
Service Fund
Other Financing
Sources
$3,366,901.93 $238,813,901.93
April 1, 2013 Proposed: adjust budgeted revenues for Debt
Service Fund
Interest Income -$100,000.00 $238,713,901.93
Date Description of Revision or Adjustment Expenditure
Category
Amount Balance
As of July 1, 2012 Current Appropriation $ 235,447,000.00 $ 235,447,000.00
April 1, 2013 Proposed: adjust budgeted expenditures for
