Zebulon Board Emergency Called Meeting - June 4, 2024

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[0:00] afternoon like to welcome everyone to this uh emergency call meeting for Board
[0:04] of Commissioners um call this meeting to
[0:08] order and uh this is emergency call meeting is in order now and uh we would
[0:17] like to discuss the contract for the inum town manager um the floor is open
[0:26] for the board any comments
[0:30] questions
[0:35] discussion I I do have a few things just to mention go right ahead um I was I was
[0:42] concerned about the process that our board used to do this
[0:48] um that you there some of us didn't know about it and um how and how they how
[0:56] they went about identifying the person um how have they met him before when did
[1:03] they first meet him and um why they didn't share it with the entire
[1:09] board well miss CL excuse me oh I'm so sorry were you done I'm so sorry I gotta
[1:15] wait and see she's finish my my apologies continue um that that's that's
[1:20] really it I just didn't like the process Comm baxer um I can say that I
[1:27] did not meet with this applicant in person and I
[1:31] believe that you've done a um manager search before commissioner Clark and so
[1:38] you should be familiar with the process that the league actually
[1:43] sends a um an interim applicant but I know it's been a while
[1:49] so maybe that's just something that you lost your familiarity with
[1:55] um when you say League mentioned the the the the applicant tie yeah the North
[2:04] Carolina League I'm so sorry when you say League mention is the North Carolina
[2:09] the North Carolina municipalities yes my apologies
[2:14] CL um going over
[2:20] the contract there's a couple of open ended areas that I'd just like
[2:27] to perhaps have discussion about and
[2:35] um my concern is number six the
[2:42] indemnification
[2:46] um it's on the second page we don't have a copy
[2:52] of wasn't this what we got do you need me to make copies cuz I
[2:58] did not get a copy of that to make for the rest of the board yes please can we
[3:02] take a 5 minute recess take a 5 minute recess and I'll
[3:06] make copies
[3:28] please
[3:58] e
[4:28] e
[4:58] e
[5:28] e
[5:58] e e
[6:51] commissioner baxer uh yes so I would just like to make sure that the pre-
[6:57] audit certificate can be signed um knowing that there is an
[7:03] indemnification Clause number six in the
[7:13] contract yes I'm sorry what was
[7:18] that I was looking at the contract oh that that's okay um I just wanted to
[7:24] make sure that the our CFO would be able to sign the pre- audit certificate
[7:30] certificate with the indemnification clause in the
[7:35] contract well I I would prefer to eliminate the indemnification Clause
[7:43] just because by its very nature an Indemnity is an open-ended
[7:48] obligation which means that it doesn't lend itself to pre- audit the whole
[7:52] purpose of pre- audit is that you're able to identify what the cost will be
[7:56] of any particular uh commitment and since you can't identify the full extent
[8:02] of an indemnification until it happens there's a challenge to the pre- audit on
[8:06] it so my preference would be to eliminate the indemnification Clause
[8:12] altogether plus there's additional Provisions in that indemnification
[8:16] Clause that I'm just not sure about uh it also obligates the town to carry
[8:20] certain types of insurance and I have no idea if we've got that insurance or
[8:25] not but if the um if the the uh manager company City development
[8:33] advisor LLC is willing to accept that edit and many vendors do many vendors
[8:39] accept the elimination of Indemnity then uh then we could we could go forward
[8:46] with it uh and since we have one of the principles of the uh manager here they
[8:54] could make that decision uh in the alternative we could work through
[8:59] through that language attorney to attorney to try and refine it so that
[9:04] the town's risk is less and that we could get it up to pre- audit
[9:09] um
[9:13] muster okay thank you so very much yes
[9:19] ma'am any other questions comments from the
[9:24] board commissioner Davis none of this time commissioner
[9:30] Clark time commission Harrison commissioner miles no
[9:36] comment commission Baxter um well I I'd just like to um get confirmation
[9:43] that that striking that Clause would be amendable and that we can move
[9:50] forward um I think we can we can ask the prospective intrum mayor if he
[9:59] that's possible come to
[10:06] that mayor and commissioner I I would actually like to have maybe our attorney
[10:11] review that first so I'm not just um accepting something that I am not
[10:16] totally comfortable with on behalf of a company so I wish I had known that
[10:22] earlier is that something that you can make a phone call and have a
[10:26] conversation with if we were to take a short recess
[10:29] um yeah I can do that okay would 15 or 20 minutes give you enough time to make
[10:36] that phone call yeah probably less so maybe 10 minutes or so 10 minutes okay
[10:42] so um mayor may I request a 10 minute uh recess or
[10:49] or would the board authorize me to uh go over that provision with Mr Joba and see
[10:56] if we can come to an agreement on it right here okay
[10:59] uh I think that there are some minor things that we can do that would uh fix
[11:05] the problem okay and allow us to do it um I've gone through these exercises
[11:09] before with some of our vendors for example Wake County where we've worked
[11:14] out some language it's reasonable and and we can do that if you don't mind
[11:19] yeah I would say that I know this came together rather quickly so I only also
[11:23] just saw the okay contract today as well I know that um you know that's fine so
[11:29] if if you're willing to take the time to speak with our attorney yes absolutely
[11:34] thank you may we um retire to a room there and and go over it call For Recess
[11:43] um 10 minute yeah yeah that'll do it what time you got now 6:15 yeah little
[11:49] later to 625 um 10 minute
[11:58] recess
[22:57] e e
[23:37] if it please the board I'll be happy to read into the record the changes that Mr
[23:43] Joba found acceptable and that in my professional opinion are also acceptable
[23:49] to protect the town if we go to page two at the bottom
[23:53] of the page section six I will draw your attention to 1 2 3
[23:58] four five The Fifth Line after the word liability
[24:04] insurance strike the language that begins or risk pool coverage strike it
[24:10] all the way through to the end of that phrase where it ends harmless and
[24:16] indemnification semicolon that gets struck so the language ends at liability
[24:22] insurance and right after the words liability insurance insert the words in
[24:27] such a boun as the town deems reasonable
[24:34] semicolon the next change is also in section six but on the next page the
[24:38] third page at the end of the last sentence the sentence begins this
[24:44] indemnification shall extend and it keeps going in the end of the sentences
[24:49] and expiration of this agreement period take the period away substitute a
[24:55] comma and add the following language for a period of not more than 12 months
[25:01] after the date of termination of employment
[25:07] period and that being read into the record Mr jooba one more chance or are
[25:14] you satisfied with those
[25:19] changes yes thank you for working with me on that yes
[25:26] sir thank you any any other comments
[25:32] questions from the
[25:45] board is there a motion to approve the contract for the inum town manager Mr
[25:54] go um I make a motion to approve the agreement for for employment between the
[26:00] town of zebulun and Mr Jova uh as amended we have a motion is
[26:06] there second oh one moment oh perhaps I didn't do that
[26:12] correctly the uh the agreement here uh if you'll look at page two the clerk
[26:17] brought to my attention the term of the agreement and the manager Shall Serve as
[26:23] interim Town manager until a permanent Town Manager commences work or until
[26:28] July 1st 2024 whichever is
[26:32] earlier that is a relatively short time period in other words less than a month
[26:37] is the town okay with that we can change we can extend it out
[26:42] because you can always change it is that correct we can always yeah we can extend
[26:45] it we can do whatever we want to but that's what the initial term of this is
[26:48] is until July the 1st so at July 1 what would take place then this contract
[26:54] would no longer be in uh in effect and we'd have to either enter into a new
[26:58] contract or either party at that point would have the opportunity to
[27:03] discontinue the relationship let C could we extend that
[27:08] please CH the
[27:13] date that was specifically at my request uh but if you also look at
[27:19] um I think it's Section 8 D it talks about having uh
[27:28] to give about five days I think a week or so um if you're going to you know go
[27:36] our separate ways I just believe that this first 30 days
[27:41] allows a smooth transition considering that this is this has rather come up
[27:46] quickly um and I do not want to uh give a sense that I'm going to be here
[27:52] permanently but we'll be very actively um assisting the town in securing an
[27:58] assistant Town manager within the next uh 30 days while at the same time
[28:04] working to get a permanent um Town manager uh in
[28:11] place so you would prefer the what right now
[28:16] is going to be less than a month term to the contract and then we can extend it
[28:23] the pleasure of Council of the commission all right okay all right
[28:27] that's fine yeah I think that uh that's that's
[28:31] correct interpretation it anticipates that the board will enter into
[28:36] negotiations as you approach the end of the
[28:41] term any other discussion and one other thing I need to bring up also is the
[28:47] agreement is actually between the town and City development advisors that I
[28:52] represent and so I think that's how the motion should go
[28:59] I'll be on your first page so should we so may I have the
[29:05] opportunity to to amend my motion yes okay I make a motion to approve the
[29:12] agreement between the town of zebulin and City development
[29:17] advisors as amended are you an authorized officer Mr
[29:22] J yes sir and how would you sign it in Your Capacity I would sign it as a
[29:27] principal okay yes fair
[29:31] enough it's all good we have a motion is there a
[29:37] second second we have a motion and a second
[29:44] discussion roll vote commissioner Davis favor
[29:50] commissioner Clark favor commissioner Harrison favor commissioner miles favor
[29:57] commissioner bter favor motion passes welcome AB board welcome board
[30:04] thank you
[30:12] um no further business is there a motion
[30:18] toour ajour to ajour we have a motion we have a second all in
[30:24] favor motion chair