County Manager’s Recommendation: Approve the resolution of support for "Promising Practices," and forward a copy to Dr. Jean G. Spaulding, Vice Chancellor of Health Affairs, Duke University Medical Center.

Cree Research Inc. is in the process of making the final decision on where to locate the manufacturing expansion facility. Other areas outside of North Carolina are being evaluated for this investment. Cree has communicated to the County Manager and Deputy County Manager that Durham County’s financial support for this project will be a key consideration for a final decision.

Staff is recommending that the County participate in this project by reimbursing Cree up to $1.7 million for the costs associated with the design and construction of grading and site preparation. The reimbursement payments will be made in equal installments over a five-year period with revenues from the County’s Enterprise Fund beginning the fiscal year after construction of the new facility has been completed. As the Board is aware, reimbursements will not be made until Cree reaches the incremental investment and job creation projections that are included in the contract.

County Manager’s Recommendation: Hold a public hearing on the consideration of allocating economic development investment funds to Cree Research, Inc. and approve the contract between Durham County and Cree Research Inc. to allow for the reimbursement of costs associated with grading and site preparation.

As per the Board’s directive, surplus vehicles and other equipment are being made available to those counties who have experienced flooding from Hurricane Floyd. Surplus items remaining will be auctioned at a public auction. The Board is requested to declare the items listed in the schedule "surplus," and authorize the County Manager to donate surplus property to counties affected by flooding and to proceed with an auction of the remaining properties.

A resolution for BOCC approval authorizing the Public Auction Sale has been prepared.

Resource Person(S): Sandra Phillips, Director of Purchasing, will be present to answer any questions.

County Manager’s Recommendation: Declare the schedule of property to be surplus and authorize the County Manager to donate surplus property to counties affected by Hurricane Floyd flooding and to proceed with a public auction of the remaining properties listed on the schedule.

Durham County’s requirements were advertised in the local newspapers on September 30, 1999. Bid Invitation No. 00-003 was mailed to 13 vendors. Bids were received from Wheeled Coach Inc. for $91,520, TransMed Industries for $96,700, and Peach State Ambulance Inc. for $98,694. The lowest responsive bid submitted by Wheeled Coach Inc. did not meet some of the required specifications of the bid invitation.

Resource Person(s): Sandra Phillips, Director of Purchasing, and Mickey Tezai, EMS Director, will be present to discuss their recommendation to the Board.

County Manager’s Recommendation: Authorize the County Manager to enter into a contract with TransMed Industries for two new ambulances in the amount of $96,700.

University Ford, Inc. $747,328.00     Sheriff                             33
                                                         EMS                                 3

Bobby Murray          $102,870.94     Tax Admin.                       1
Chevrolet Inc.                                    Social Svcs.                      2
                                                         General Svcs.                    2
                                                         Engineering                        1
 

Durham County’s requirements were advertised in the local newspapers on
September 30, 1999. Bid Invitations were mailed to 13 local vendors. Bids were received from three bidders: 1) University Ford Inc. for $793,580.00; 2) Bobby Murray Chevrolet Inc. for $629,712.96; and 3) Cooper-Harris Inc. for $826,767.00. The above recommendation is to award to the low bidder for each class of vehicle with the exception of Vehicle Specification 4 and 8.

Resource Person(S): Sandra Phillips, Director of Purchasing; Michael Turner, Director of General Services; Janet Birenbaum and R. D. Buchanan, Sheriff’s Dept.; Gael Hallenback, Social Services; Mickey Tezai, EMS Director; Marvin Pope, Tax Administration; and Glen Whisler, Environmental Engineering Director, will be present to discuss their recommendation to the Board.

County Manager’s Recommendation: Authorize County Manager to enter into a contract for vehicles with University Ford for $747,328.00, Bobby Murray Chevrolet Inc. for $102,870.94, and Cooper-Harris Inc. for $22,095.00.

Funding for this project is available through the reallocation of funds originally planned for the Building Security project. The Building Security project will start at a later date. Therefore, a recommendation to reallocate funds originally budgeted for the Building Security Project to the Library roof replacement project is requested.

Resource Person(S): Mike Turner, General Services Director; Ademola Shobande, Project Manager; Dale Gaddis, Library Director; and Claudia Odom, Budget and Management Services Director.

County Manager’s Recommendation: Pay-As-You-Go funding is appropriated when capital projects are ready to begin. This approach ensures that projects are completely fleshed out before the Board commitment of resources or funds. The delayed start date of the Building Security project will allow the County to replace the roof on the Main Library. I recommend the Board of County Commissioners make a motion to establish the Library Roof replacement project by approving budget amendment 00CPA000005.

The board appropriated $225,000 for the DSS HVAC system during fiscal years 1998 and 1999. Of this appropriation, $59,142 has been expended on partial control/valve replacement and system repairs, and an additional $14,950 is encumbered with Ish Sudd, P.E, for engineering services, leaving a difference of $150,908 available for project completion. Based on new estimates, a total of $318,650 is required to remove existing chiller/cooler towers and install two 90-ton water cooled screw chillers, two cooling towers, two condenser water pumps, two chilled water pumps, and miscellaneous piping and control wiring. The following budget outlines the cost associated with this project:

Resource Person(S): Mike Turner, General Services Director; Ademola Shobande, Project Manager; and Claudia Odom, Budget and Management Services Director.

County Manager’s Recommendation: The chiller system replacement needs to occur for the DSS building during the fall and winter months of the current fiscal year. Bids for this project will come before the Board during the December board meeting. I recommend the Board of County Commissioners make a motion to amend the DSS HVAC project budget to $377,792 by approving budget amendment 00CPA000006.

Durham County Government has received its renewal rates for calendar year 2000. Increases for health benefits range from 6 percent to 48 percent. Even with anticipated migration from one health plan to another in search of the lowest rates, most employees will experience an average increase of 11 percent. Dental rates will also increase an average of 31 percent (actual increases fall between $2.21 and $8.71).

The County has held steady with its flexible spending amount of $138 per pay period for seven years. Although 700 employees do not spend the entire $138 credit, the remaining 977 employees will see a significant erosion in their benefits buying power. Fund 150 has a cash reserve which is fed by the reversion of unused benefit dollars. This fund is designed to provide for the continued payment of retiree benefits without any annual budgetary allocations, and to provide a revenue source for any increases in the benefit credit (currently $138).

Resource Person(S): Jackye Knight, Human Resources Director, and Debbi Davidson, Benefits Manager, will be available to present and answer questions.