Jefferson County Budget Committee Passes Key Issues

The Jefferson County Budget Committee held their first organizational meeting of the 2012-2013 year on September 27, 2012 at the Historic Jefferson County Courthouse. The Meeting was Called to Order by Commission Chairman Mills. Absent from Roll Call was Committee Member Blevins.

The first Agenda Item was the election of presiding officers for the Budget Committee. By affirmation, Committee Members Griffith will serve as Chairman, Dockery as Vice Chairman and Director of Jefferson County Finance Helton as Secretary.

Chairman Griffith, upon Committee request, moved agenda items to allow representatives from the Jefferson County Department of Education to be heard at the top of the agenda, to accommodate their required presence at another meeting.

Director of Jefferson County Schools Edmonds addressed the Committee regarding the Davis Bacon Wage Act. Director Edmonds stated that the Jefferson County School Board and Department of Education was unaware that the Davis Bacon Wage requirements applied to the Freshman Academy project. Committee Member Carmichael stated that the issue was between the Contractor and the Government. Director Edmonds stated that the School Board has a contract manager and that there is not a general contractor on the project. He said that hiring a contract manager is common practice in school building projects. Director Edmonds acknowledged that former Director of Jefferson County Finance Long had addressed the Commission regarding the wage requirements, however the initial bonds that were under consideration for the Freshman Academy Project (BABS) did not have wage requirements attached. He stated that it was only when the County decided to use Recovery Bonds, rather than BABS, that the issue arose. The decision to use recovery bonds resulted in rebates of around $3 million dollars, which was to the benefit of the County. According to Dr. Edmonds, the Davis Bacon wage requirement will cost the County $698,587, leaving the County a $2.2 million savings after paying the federal wage requirement. Committee Member Dockery stated that the School Board had approved the change order in May without declaring funding for the change and that it had just come before the Committee as a funding request. Committee Member Mills stated that the Commission knew about the issue, though an official funding request had not been submitted. Committee Member Carmichael stated that the public had concerns about the issue and that the oversight should never have happened. Director Edmonds stated that there was no subterfuge and that the oversight was a result of miscommunication between County departments. Committee Member Beeler made a Motion to add the $698,567 to the additional Jefferson County High School renovation bond issuance ($10 million) upon confirmation from the financial advisor. 2nd Baxley-Passed 6-3 (Dockery, Carmichaels, Maples-No).

Jefferson County Schools Director of Maintenance, Capitol Projects and Transportation Phagan brought a request for matching funding with the Town of Dandridge in the Signal Light Project. The original request for the project match was $50,000 County + $50,000 Town of Dandridge for the $100,000 option for road improvements on Dumplin Valley. Committee Member Beeler made a Motion to Approve $50,000 for the project split to come from school system fund balance. 2nd Baxley. Committee Member Dockery inquired if the $200,000 original option submitted by TDOT aligned Dumplin Valley Road. Phagan stated that the original option did align the road, however the subsequent options did not to lower funding costs. Dockery and Carmichael stated that they would like to have the road aligned, for reasons of safety and condition of the road. Carmichael stated that he is familiar with the hazards and concerns of that road and that every consideration needs to go into the project. Committee Member Dockery inquired which option would be the preference of Director Phagan, as he was one of the motivating parties in the project from its inception. Director Phagan stated that, due to the number of inexperienced drivers that travel through that intersection, his personal preference would be to align the roads. Committee Member Beeler amended his Motion to the $200,000 option with half the funding coming from the Town of Dandridge ( $100,00 ) and half to come from school system fund balance ($100,000) contingent upon approval from both bodies and with a default amount of $50,000 by both stakeholders. 2nd Akard-Passed 8-1 ( Baxley-No ) The Motion as amended also passed 8-1.

Phagan also requested a loan of $150,000 to be paid back by the Department of Education over time for the removal of portables. The payment to be funded from savings from portable unit leases. Committee Member Beeler made a motion to Approve $150,000 from school system fund balance to use for portable removal. 2nd Dockery- Passed.

Jefferson County Finance Director Helton brought a County General Fund Budget Amendment and informed the Committee that the Department of Education could have another grant that would need quick approval. The decision date on the grant was Friday afternoon.

Committee Member Dockery made a Motion to fund Parrotts Chapel Fire Department at full station funding ($55,000) which would require $29,849 in additional funds. 2nd Carmichael. Committee Member Mills stated that he favors cutting funding for any department that does not submit a quarterly report and that fire department funding is continuing to grow. He stated that he would like to fund the fire association and let the association split the funding according to calls and coverage area. Beeler stated that he has an issue with Parrotts Chapel having a long term lease on their property rather than ownership. Dockery stated that the property meets the needs of the department and that every area of the County is different geographically, as are their needs. The motion to fund Passed 6-3 (Mills, Baxley, Beeler –No).

Committee Member Carmichael made a motion to reinstate Baneberry funding to the full amount (additional $ 29, 849 to reach the $55,000 full funding level), citing that the funding cut may have been uninformed. 2nd Baxley-Passed

EMS Director Brad Phillips brought a funding request for lifts for ambulances to assist with patient and employee safety. Director Phillips will return with additional information as per the Capitol Request Policy. The Meeting was Adjourned.