Minutes

Edgefield County Council

September 3, 2002

Members present:

Members absent:

Others present:

Minutes

REPORTS

Minutes

Edgefield County Council

two hundred and ten cheerleaders. Looking at over four hundred and seventy kids that have signed up to play or cheer this year. There is a $55.00 registration fee; that means $25,850 was kept in the county. We have nine sponsors at $300.00 each sponsoring a team; one jamboree sponsor who has paid $1,500.00; a number of miscellaneous $125.00 donors thus far. Brad Covar is the treasurer and there is a duplication of the records with Michael Medlock (everything gets entered into the computer and Brad handles the money.) I will have a financial statement for council later. A jamboree is set for September 21^st in the Merriwether area and games will begin that following Monday. Will play Monday nights in Merriwether and Tuesday nights at Strom Thurmond. Joe Seel and a group will officiate. Seven games in regular season, plus the jamboree and the playoffs. Bought enough equipment for three hundred players so –thought we would have more than we needed this year but still signing people up." Mr. Durham also told the council that the lights at Merriwether have been installed, repairing bleachers at Merriwether, doing some work on the hillside there. Will come later to council about girls softball and soccer. The school system has been very cooperative. Councilman Vaughan asked Ken that with charging admission, revenue from your concessions, don’t you think you will be self-sustaining along with some of your sponsorships? Ken said that right now he felt they could be self-sustaining. The seed money council give allowed them to buy the equipment. We have to have a five-year plan like any business because equipment will have to be replaced every year. It seems like the $28,000 we have is a lot of money, plus the money that United Way donated, but we have to pay the officials. Believe it will be self-sufficient.

The administrator included in the agenda packet his response to a letter from Councilman Vaughan concerning various county government matters.

At this time, the chairman recognized the Edgefield County Hospital Administrator, Joe Seel. Dr. Nicholson, Walter Evans, Interim CFO, and others were present. First item: The County Administrator addressed council concerning the first hospital issue, No. 6 under ordinances: first reading of a $300,000 GO Bond. "This bond is essentially to assist Edgefield County Hospital with a cash flow shortage in that same amount throughout the remainder of this calendar year. The way this would work is that for each year there is principal and interest outstanding the hospital would post with the treasurer, in advance of the council setting the debt service millage, all principal and interest payments necessary to service that bond; in other words, that the hospital will be paying back this loan itself. The county is standing behind that with its full faith and credit pledge under a general obligation bond. The first two years of this bond would be interest payments only, which would amount to about $18,000 per year, and the hospital would have to post the first payment before the auditor sets the millage in October, for instance. So it is a loan to the hospital, and the hospital would be paying it back out of its own operating revenues." Councilman Hudson asked about the number of years for this loan.

The Administrator stated it was decided on seven years. The bond ordinance right now says not to exceed ten years. When we bid out the rates with the lenders we will probably specify seven years with two years of interest payments only, and then five years of principal and interest payments. Speculating a rate of interest at 6%; the reason for that is, this is a loan for operating capital and the tax exempt rules are very strict in that area. We believe this will be a taxable bond issue. If it were going to be non-taxable I would tell you 4-4 ½ percent. Won’t find that out until it is bid out to the banks. Mr. Seel passed out a revised budget (the one in agenda packet did not include payments for the bond). This budget also shows some improvements, some costs reductions. Basically, what you are looking at now has a reduction in our staffing costs of about $300,000 a year and that includes direct payroll expenses and benefit expenses. Those cuts have already been implemented in the form of staffing reductions (called staff flexing); we are basically staffing our hospital more in relation to our patient flow. In the years past, the way we staffed our hospital was each year at budget time we determined what our staffing needs were and that was part of our budget. We kept that staffing level throughout the year because, in our small hospital, patient census goes from, sometimes, three and four patients on acute care (not swing beds) to sometimes eighteen or nineteen patients. In the winter, there may not be a bed available. So staffing can be very difficult-try to maintain a certain staffing level throughout the year because what happens in the healthcare field is when you tell a nurse that she is not needed tomorrow, she is going somewhere she is needed everyday. Now asking staff to go home when the census is down (never did that in the past). This past year the census did not go back up. Our hospital’s revenues have grown close to sixty percent over the last five years. Up until 2002, our in-patient volumes have grown nearly thirty percent. Our ER volume has doubled in the past five years. Due to this growth, we had in our budget, hired staff to meet these needs. However, this year, our census is down twelve percent, and that is a lot. In the last three months, July for instance, it was down twenty five percent. We did not make the decision, at that time, to cut staffing or send staffing home because it was our presumption, as history had always been, that it would go back up and it didn’t. Mr. Seel said maybe back in June he should have sent staff home but that just wasn’t the philosophy of the hospital. But now we have a plan in place where we will cut staffing, will cut back hours, will cut overtime, and we will do what it takes to keep the hospital viable. The budget has a $330,000 savings in expense cuts and, it also has, a $240,000 increase in cash that we are expecting to get from disproportionate share (medicaid funds DISH). Feel sure the hospital will get that back because the state government has recognized the need of hospitals like Edgefield, the financial crunch it is in. State has stated that all public hospitals should get the funding. Also expecting this year to get money from medicare DISH, which is a program we have not been in before-that is about $100,000 we are expecting. Looking at $240,000 in cash next year-in the budget but still shows a loss of $118,000.00. Councilman Vaughan noticed in the budget an increase of almost $50,000 for supplies when the new consulting firm has stated they would save by

their purchasing power. Mr. Evans said that the supplies is really about equal in the

budget to what the last few months have been, so there is a lot of health care inflation in that line item. Basically we are looking to hold it steady with what the recent months profits have been and so we will recognize the benefit of being part of the Quorum purchasing network by holding it steady. The hospital knows it will receive the medicare DISH funding-have applied and just waiting on the check. It takes a while to hear anything from medicare. Don’t know if they will a check for monies that are due us or whether they will increase our payments monthly or periodically. Medicaid, we will not know probably until October or November whether they upheld that. They are waiting on a recommendation from the SC Hospital Assoc. Joe Seel explained how Quorum would assist the hospital in management.

Councilman Vaughan asked about the EMS budget concerning the salaries. Mr. Seel said there are some positions that they are trying to fill—some EMT’s have left. Shifts have been changed from twenty-four hours to twelve hours. The twelve-hour shifts will be much easier to manage and should have some cost savings to the county. Should be a savings on overtime because there is just naturally overtime with a twenty four hour shift. Mr. Seel said they are not asking for as much this year as they did last year ($510,000 last year; $508,000 this year).

Dr B. E. Nicholson spoke in favor of Quorum. Said they would turn down a hospital if they thought they couldn’t make it go. There is a hospital near Barnwell they did turn down because they did not think they could make the numbers work. They feel they can make it work for Edgefield. Afraid if the hospital closes there will be not be doctors here for the people – will have to go other places. Ambulance budget would go out of site. Hospital wise it was a terrible summer; very few admissions. No guarantee it will not happen again. Dr. Nicholson feels the hospital is a cornerstone for delivering good medical care to the county. Mr. Seel added that if we were a normal business, and when a business goes through a crisis, we would get a loan from the bank to help through this tough time. But, we cannot do that-by law we cannot borrow money. We have to come to the county and ask for it because we are a political subdivision. That is what we are here saying: we need some help-$300,000 to get through the end of this year, we will pay it back. Also, we need for council to consider increasing how much you give the hospital next year. Quorum has six months from August 1^st to show us how they can get some money in for us. If that does not happen, then we would try something else. Councilman asked Mr. Seel if the hospital could meet with council just before the six months after August 1^st to let council know how things are going. Mr. Seel said that would be around February, 2003.

One other item on the agenda for the hospital is the letter of conditions from USDA. Ms. Patti Walker was present to address council concerning this item. Ms. Walker has been

working with the County Administrator and the Hospital Administrator together a loan

for the renovation of the hospital. She is now aware there have been budget changes (referring to the $300,000 loan). Her budget she prepared does not reflect the $300,000.00. This year and next year does show a deficit on the budget, but according how the loan is worked for the first full year, of the rural development loan, it shows the hospital basically can be self sustaining. Her budget shows there is a positive $46,000 at the end of the fiscal year. May have to take a look at that since there are some budget changes. This loan will renovate the hospital: emergency department, some location of spaces within the hospital (loan is for $3,100,000, interest rate 4.75% for forty years). The letter of conditions spells out the conditions of every aspect of the loan. It will talk about what the hospital’s contribution will be. We have talked specifically about sources of funds that will be used. Believe they are getting some funds from the Duke Endowment and Health and Human Services (the agency has alredy made one contribution grant toward the project). Not a hundred percent sure, but believe there will be another one from Health and Human Services next year. Ms. Walker explained that with this form there is no actual commitment on the county’s part until you decide to take out the interim financing loan, which would be used during the construction period to draw down to pay the contractor. At any point you can decide to downscale the project or have the funds de-obligated. We had to go to our national office for some of the funds needed to make this project work. In accordance with the budget prepared by Ms. Walker and Mr. Seel, fiscal year 2003-2004 does show a negative. The first full year, which is anticipated, is 2005 (after construction and renovation work is completed is considered first full year of operations). Rural Development normally considers, as a self-sustaining year, the first year in which the hospital does not have to depend on cash carried over from a previous year. Want to make sure that the end of the year budget is either a zero budget or at least in the positive to show that it is self-sustaining. Eventually that cash carry over from prior years will dwindle down and cannot rely on that. Ms. Walker briefly went over the letter of conditions with council. Total project: something over four million. Joe Seel spoke of the times he appeared before council concerning this project. The first time (a year ago) very confident the hospital could do a six million dollar renovation project, they would take care of it-county just hold our hands. After that, hospital began receiving notices from medicare/medicaid about cuts; learned the hospital would lose DISH, so back to council for a second time. This past December back to council, things not looking as good as they were, still have to go ahead with the project and will probably need some help from council because seeing cuts from medicare/medicaid. In April, back again. Things much worse than they thought, still need to do the project, down-scaled to the bare necessities. The hospital just cannot afford to pay for it-need the county’s help. At this point, the administrator spoke. Mr. Adams advised the chairman and council that we are looking at the $116,000 the hospital will lose next year, and that would take them to the seven mills; just for operating. It would be over and above the seven mills to pay for the construction costs. The HHS money already received-some of it has already been committed. Joe stated that HHS is letting the hospi-

tal commit some of that money to expenses related to the project: new CT Scan, new R&F room put in this past year in advance of the project. They will let the hospital, if necessary, allocate that money toward those things. Still with county’s match; part of project costs. Money is not in a separate account. After signing the letter of commitment, if council is still undecided after 180 days, an extension to the letter of conditions will be issued to give more time for a decision. This actually takes some money out of one pot from the Rural Development National pool and sets it aside for the project. The money does not have to be used. Motion was made by Chairman Kneece, seconded by Councilman Vaughan, to accept the letter of conditions. Motion carried unanimously.

At this time, the Chairman introduced the Hon. Jean Hoefer Toal, Chief Justice, South Carolina Supreme Court; The Hon. William Keesley, Circuit Court Judge, Eleventh Judicial Circuit of South Carolina, and Ms. Joan Assey, Director of Information Technology, South Carolina Judicial Department. They were present to address council concerning an Internet Connectivity Project for Judicial Offices, Tax Assessor, and other Offices of County Government.

Chief Justice Toal gave an inside view of what is going on with technology in the Judicial Department. Certainly post 9/11, this whole nation has realized how much we depend for basic security in this country on the operation of our state court systems and state law enforcement. Over ninety seven percent of the cases that go through the criminal system in this country are initiated and processed and handled through local law enforcement and through the state court system. So your state court system is your basic bulwark for prosecution and law enforcement in the United States. Post 9/11, one the biggest projections that has been made about homeland security is to try to get us to link our information about our arrests, prosecutions, and the whole way the justice system works so that you will know what is going on in other parts of this state and other parts of this country, and we will be part of a broader system of exchange of information. We have to modernize and use more up-to-date technology. A better way of sharing information among the counties, among the states, so that when someone is arrested or when someone is stopped, when someone is on trial in one jurisdiction, that information can be accessed everywhere in the country. The Chief Justice stated they had used a national computer company, a national accounting/engineering firm to give a look at the entire system in South Carolina and come up with what they recommended as a way to tie information together in every courthouse in South Carolina, every judge’s office, every magistrate that issues a warrant and law enforcement. The recommendation they made, and the one that is being implemented in the court system is to use the internet as the basic platform for storing information and allowing that information to be accessed. She feels to use computer access using the internet with the kind of security you need because some records you will want the general public to see and some records will have to be specific to the law enforcement or court. Have to have to system that is designed with enough security in it to be able to get to those who need the information about arrests in the en-

tire process to the court system that they need. The second part of the vision is that you will have skilled and knowledgeable users who can operate a computer independently, who can do internet routine processes. The third part of the vision is that it improves the judicial process with more timely and accurate information access, and the fourth part is that we have a way of constantly assessing whether this system works, whether it performs the way we want it to. What we, the judicial system, did to begin this process was to try to work on having network connectivity (that is the basic infrastructure or backbone, basic highway system) for setting up on this system of internet technology in every county. At this point, every Clerk of Court in South Carolina has a web page and we are proud to say, that as a department, we have helped many clerks develop this basic building block because that web page will be the basic site through which you access information. There are three counties (Greenville, Pickens and Richland) that will have their management system (magistrates court and circuit court) paid for by the state judicial department. When that system is established in those three counties we will then begin to try to roll that system out in counties all over the state. Chief Justice Toal said her vision for that was to try to get as much money from her department by way of either department funds or grant funds into the mix so when she went to counties like Edgefield, they would be a major player in bringing state funds into this process-never been done before. The judicial department in the past has sat back and paid the judges salaries. Other than that, no contribution has been made to the counties for the tremendous burdens counties bear in running courthouses and all the things that are necessary from a county’s point of view to support the court system. Technology is now becoming very basic and inherent in all court day to day operations. Edgefield County is now spending about $4500 for the slow kind of dial-up access the county has now (10 to 12 lines). Would spend for fifty lines with the upgraded system would be about $21,000 (about $16,000 of new money the county would spend). For that money, there would be the kind of access the county will eventually have to have anyway. This internet platform is to receive and transmit criminal justice and court information, child support information (in the future) whatever the system has in it what is needed to be received or sent out, eventually this internet platform is going to be the way you will do it. The question is not "if" but "when."

Judge Keesley spoke very briefly on the internet connectivity. He gave several instances in which this would greatly help the judicial system – would not be a waste of money. Judge Keesley stated that he felt if Edgefield County continued to try to be in the forefront in this, two things will happen. (1) He feels the state is giving Edgefield County money it is not giving to other counties. They are very interested in Edgefield and they are helping us out. (2) We will not get left behind, and that is the most important thing. Cannot see it being a waste of money.

In closing, Ms. Joan Assey said she would like to say that "very often we have so much

data that we are data rich, but information poor. This modernization will connect these pieces of data that we will have information. It is a very special partnership. Judge Keesley has always had a special place in his heart for Edgefield. Wants to make Edgefield County a model for rural South Carolina; not just in the connectivity, but using the case management system as well. Chairman Kneece suggested approval of the request (budget presented by administrator). Motion was made by Councilman Vaughan, seconded by Councilman Hudson, to approve the request for internet connectivity. Motion carried unanimously.

At this time, Chairman Kneece signed several papers for the Rural Development (letter of conditions). The tape was close to running out so it was changed (the reason for a lull).

Motion made by Councilman Vaughan, seconded by Councilman Dorn, to approved third reading of Ordinance No. 01-02-424, "An Ordinance Adopting a Revised Strategic Plan for Economic Development for Edgefield County." Motion carried.

Motion was made by Councilman Hudson, seconded by Councilman Vaughan, to approve third reading to Ordinance No. 01-02-425, "An Ordinance Enacting and Adopting a Supplement to the Code of Ordinances for Edgefield County, SC." Motion carried.

Motion was made by Councilman Vaughan, seconded by Councilman Dorn, to approve second reading of Ordinance No. 02-03-426, "An Ordinance Authorizing the Negotiation, Execution and Delivery of a Lease-Purchase Financing Agreement or Agreements Pertaining to Road Maintenance Equipment and Other Related Documents Between Edgefield County, SC and a Qualifying Lender; and Other Matters Relating Thereto." Motion carried.

Motion was made by Councilman Dorn seconded by Councilman Vaughan, to approve second reading of Ordinance No. 01-02-413, "An Ordinance amending Title XV of the Edgefield County Code of Ordinances to Establish Size and Density Standards for Lots on Paved and Unpaved Roadways in the Zoned and Unzoned Areas of the County, to Establish Conditional Permits for Multiple Dwellings on a Lot Under Certain Conditions, to Establish Accessibility Standards for Lot Development, and to Provide for the Granting of Specified Variances By the Edgefield County Planning Commission." Motion carried.

Motion was made by Councilman Vaughan, seconded by Councilman Hudson, to approve first reading of Ordinance No. 02-03-427," An Ordinance Amending §§152.082 and 152.083 and Chapter 153 of the Edgefield County Code of Ordinances to Provide Clearer Standards for the Acceptance of Public Streets and Roads into the County Road

Maintenance System and to Clarify Standards for the County Approval of Private Streets

and Roads into the County Road Maintenance System, and to Clarify Standards for the County Approval of Private Streets and Roads." Motion carried.

Motion was made by Councilman Vaughan, seconded by Councilman Hudson, to approve first reading of Ordinance No. 02-03-428, "An Ordinance to Provide for the Issuance and Sale of a Not Exceeding Three Hundred Thousand Dollars ($300,000) General Obligation Bond, Series 2002, of Edgefield County, South Carolina to Prescribe the Purposes for Which the Proceeds Shall Be Expended, to Provide for the Payment Thereof, and Other Matters Relating Thereto." Motion carried. This is a General Obligation Bond of the County to assist the Edgefield County Hospital with a cash flow shortage of $300,000 for the remainder of this calendar year. The Administrator addressed the chairman that this ordinance would take three readings to pass. Obviously the hospital is in a cash-flow crunch, specifically, they are in need of $75,000 immediately. The other issue is that so council will not have to levy millage on debt service to repay this, the hospital needs to post an interest payment with the treasurer in advance of the auditors setting the millage. The administrator asked for permission to disburse them the sum of $93,000 out of general operating funds for the county for the $75,000 and an $18,000 interest payment to be reimbursed when the bonds are issued on the general obligation. Councilman Vaughan stated that he would like to acknowledge that request and make the motion to accept it. Seconded by Councilman Vaughan. Motion carried unanimously. Second reading of this ordinance will be held at a Called Meeting of Council on Tuesday, September 10, 2002.

Motion was made by Councilman Vaughan, seconded by Councilman Hudson, to approve Resolution No. 02-03-253, "A Resolution Providing for an Anti Harassment Policy and Reporting Procedure for County Employees." The Administrator explained the county does have some language in the existing policy but the Property and Liability Trust which insures us against these kinds of claims, has advised all of their clients to pass this particular policy and also to include a reporting form, which is part of this resolution.

The request of the Edgefield County Civic League for the first quarter funding of $4,000 was approved, motion being made by Councilman Vaughan, seconded by Councilman Hudson. Motion carried. Ms.Lynn Booream was present to answer any questions.

Mr. Floyd (Sonny) Seawright was present on the behalf of the Edgefield Festival Association to request funding from the county. Mr. Seawright, in addressing the council, explained about the newly formed Festival Association. This Festival was formed several

months ago to promote Edgefield and the surrounding area with the history and wildlife. The first project is called the Heritage Jubilee 2002. The festival will be held October 18^th and 19^th. Their budget is very tight; therefore, they are asking for donations. The town of Edgefield has donated $1,500.00. There will be lots of entertainment. Any help from the

County would be greatly appreciated. Motion was made by Councilman Vaughan, seconded by Councilman Hudson, to approve $1,500.00 for the Edgefield Festival Association. Motion carried unanimously. (Account 100-279)

Concerning the budget requests for the Hospital and EMS operations levies. The Administrator explained that in the budget presented by the hospital, EMS is showing $508,000 and the other budget on hospital operations is showing $260,000.00. However, the budget would still result in a $116,000 loss for the year. These funds would be needed from the millage levy. May want to have a meeting in the interim to make a further determination on that; whether you want to go up on the mills or if the council is firm tonight to remain at the same levy as last year. Chairman Kneece recommended the levy remain the same as last year. Seconded by Councilman Vaughan. Motion carried.

The distribution of PARD funds was the next item on the agenda. This was revised with the most recent census and the percentages will stay the same basically until we have another census. Motion was made by Chairman Kneece, seconded by Councilman Hudson, to approve the distribution of PARD funds at the same percentage as last year. Motion carried.

The following bids for HVAC improvements for Detention Center were considered: (1) Holsenback Service: $3,890.00 (2) Lucas Ref.: $2,450.00. The reason for this HVAC improvement is that the lack of fresh air is causing some mold accumulation inside the jail cells. We have worked with the Department of Corrections to develop some specs that we feel will fix the mold problem by bringing in more fresh air. We bid out those specs with the blessings of the Department of Corrections. They informed the county this was something it had to do now. Councilman Vaughan made the motion to accept the low bid of $2,450.00 from Lucas Ref. Seconded by Councilman Hudson. Motion carried.

The following bids were considered for a Boundary & Topographical Survey for Detention Center project:

1. Hass & Hilderbrand, Inc. $ 6,250.00

The low bid is less this time than before ($8,500). Reduced the number of curb shots. Councilman Vaughan was under the impression we would get information from the

Justice Department before this went any further. The administrator said there are two issues: (1) Applying for an exemption from the Environmental Impact Statement will require this topo survey. Will have to have that to get the grant (VOITIS). Have to have either this environmental statement done or qualify for an exemption – either way have to have a topo. (2) The architectural firm cannot complete the master plan without the topo. It is really holding up a couple major pieces

. When we get the grant, which we expect to get, and you let a contract to do the minimum work, you still have to have either a statement of environmental impact or an exemption from it, both of which require a topo. Motion made by Councilman Vaughan, seconded by Councilman Hudson, to accept the low bid of $6,250.00 from Hass and Hilderbrand, Inc. Motion carried unanimously.

Mr. Robert Ross, Merriwether section of the county, requested to be on the agenda to talk about plans for growth in Edgefield County. Mr. Ross’s presentation (along with slides) was mostly concerning a high school for the Merriwether area. He had also presented this to the school board. At the end of his presentation, Mr. Ross asked council to approve a resolution in support of a high school in that area.

A. Payroll: 7-22-02 thru 8-4-02

Regular…………………………………………$83,667.88

Payroll: 8-5-02 thru 8-19-02

Regular………………………………………….$84,271.79

Payroll: 8-19-02 thru 9-01-02

Regular………………………………………….$84,663.95

2. General Operating……………………………………..$319,651.93

Council convened in executive session pursuant to Code Section §30-4-70 (a) (2), South Carolina Code of Laws to receive legal advice concerning a threatened or potential claim

against the county. Councilman Vaughan made a motion, seconded by Councilman Hudson, to convene in executive, returning to regular session at the discretion of the Chairman. After returning to regular session, Chairman Kneece stated there was no action taken in executive session.

There being no further business, Councilman Dorn made a motion to adjourn. Motion seconded by Councilman Vaughan. The next regular meeting will be held at 6:00 P. M. Tuesday, October 1, 2002, in the County Council Chambers, 225 Jeter St., Edgefield.

C. Monroe Kneece, Chairman

Willie C. Bright, Vice Chairman

Norman Dorn, Councilman

______________________________ William R. Vaughan, Councilman

ATTEST

Barbara R. Stark, Clerk to Council