AMENDED MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON June 18, 1997

The Henderson County Board of Commissioners met for a regularly scheduled meeting at 9:00 a.m. in the Commissioners' Conference Room of the Henderson County Office Building.

Those present were: Chairman Bob Eklund, Vice-Chair Grady Hawkins, Commissioner Vollie G. Good, Commissioner Renee Kumor, Commissioner Don Ward, County Manager David E. Nicholson, and Clerk to the Board Elizabeth W. Corn.

Also present were: Planning Director Matt Matteson and Public Information Officer Chris Coulson.

Absent were: Assistant County Manager/Staff Attorney Angela M. Skerrett and County Attorney Don H. Elkins.

CALL TO ORDER/WELCOME

Chairman Eklund called the meeting to order and welcomed all in attendance.

PLEDGE OF ALLEGIANCE

Commissioner Ward led the Pledge of Allegiance to the American Flag.

INVOCATION

Palmer Clemmer, Minister of Grace Lutheran Church, gave the invocation.

DISCUSSION/ADJUSTMENT OF AGENDA

David Nicholson added one item as AA-1" Vista Hill Foundation.

He also added one item under pending issues as AI-6" Jail Committee and deleted Update on 911 Project.

CONSENT AGENDA

Commissioner Kumor made the motion to approve the Consent Agenda as presented. All voted in favor and the motion carried. CONSENT AGENDA included:

Review/approval of Minutes

Minutes were presented for the Board=s review and approval of the meeting of May 15, 1997.

Tax Releases

A list of 52 tax release requests was presented for the Board=s approval.

Tax Refunds

A list of 12 tax refund requests was presented for the Board=s approval.

CIP Monthly Reports

The monthly report on current Capital Improvement Projects for the month of May was presented for the Board=s information.

Resolution proclaiming July, 1997 as ARecreation and Parks Month@ In order to recognize and promote the impact and importance recreation and parks make on the daily lives of our county residents, the Henderson County Parks and Recreation Advisory Board and staff recommended the Henderson County Board of Commissioners proclaim the month of July 1997 as ARecreation and Parks Month@ in Henderson County.

Resolution congratulating City of Asheville

On June 7, 1997 the City of Asheville received an All American City Award during a competition sponsored by the National Civic League and the Allstate Foundation. Over 50 participants from Asheville attended the competition in Kansas City, Missouri, including children from the Hillcrest community in Asheville. Those in attendance on behalf of the City of Asheville made a presentation based on the application, which was required to be submitted. This presentation highlighted programs sponsored by the City of Asheville such as Handmade in America, Asheville Vision Process, and Regional Health Care. The City of Asheville was one of ten cities selected from 30 finalist city applicants. The City of Asheville was one of over 120 city applicants, which originally applied for the designation. A resolution was presented congratulating the City of Asheville for being named an All American City, which brings honor and recognition to the entire Western North Carolina Region.

Written Order Granting Pardee Hospital, Et Al. Special Use Permit, SP-46-96 On Monday, June 2, 1997, the Board of Commissioners held a quasi-judicial public hearing to consider the application for Special Use Permit SP-46-96 submitted by Margaret R. Pardee Hospital, Four Seasons Hospice, Blue Ridge Community College, Toms Enterprises, Inc., and Thomas Duane Hatchett and wife, Judy Pace Hatchett. The special use permit requested was for a nursing facility and Hospice House located near the Blue Ridge Community College campus on College Drive and South Allen Road. On June 2, 1997, the Board approved the special use permit and directed staff to bring back a written order consistent with the Board=s discussion regarding the findings of fact, conclusions of law and the decision. The proposed order was presented for the Board=s consideration.

Written Order to Amend Carriage Park Special Use Permit, SP-93-13 On Monday, May 5, 1997, and Wednesday, May 21, 1997, the Board of Commissioners held a quasi-judicial public hearing to consider the request of Carriage Park Development Corporation for an amendment to the Special Use Permit SP-93-13. The requested amendment was for a relocation of a boundary line between Development Parcels 23 and 24 within Carriage Park. On May 21, 1997, the Board approved the requested amendment and directed staff to bring back a written order consistent with the Board=s discussion regarding the findings of fact, conclusions of law and the decision. The proposed Order was presented for the Board=s consideration.

Notification of Vacancies

The Board was notified of the following vacancies which will appear under ANominations@ on the next agenda:

1. Youth Advisory Board - 1 vac.

2. Land Of Sky Regional Council Advisory Council on Aging - 1 vac.

3. Child Fatality Prevention Team - 1 vac.

INFORMAL PUBLIC COMMENTS

1. Dr. Phillip Sellers - Dr. Sellers spoke in favor of restructuring Pardee Hospital for a Hospital Authority. He briefly discussed managed care and its effect on anyone present as well as: 1.quality of care, 2. changing definition of what a hospital is, and 3. competing and contracting. Dr. Sellers was in favor of a BIG A AUTHORITY.

2. Mr. Charles Waters - Mr. Waters is an Attorney in Hendersonville. He asked the Board to restructure Pardee Hospital and grant them authority status. He reminded the Board that responsibility runs from bottom up and from top down. Hospital Authority would provide some isolation for Board of Commission responsibility for day to day operation of the Hospital and would also give the Hospital the flexibility to deal with day to day problems.

3. Bryan Aleksich - Mr. Aleksich stated his view that no money should be set aside for maintenance and repair of the schools. The School Board could find money for maintenance and repairs in their $60 million + budget.

4. Dutch Burdette - Mr. Burdette spoke in favor of curbside recycling. He suggested the Board of Commissioners get public input regarding recycling. He has spoken to a number of waste hauler and only found one who truly recycles.

5. Raymond Ward - Mr. Ward spoke as the spokesperson for the CONCERNED CITIZENS OF EDNEYVILLE. He had a number of questions regarding the site of the package plant for the Justice Academy. He spoke regarding the discharge into Lewis Creek. He requested the Board keep the plant small to control the growth around the Justice Academy.

PUBLIC HEARING - To Consider Renewal of Industrial Park Option

Commissioner Kumor made the motion for the Board to go into Public Hearing. All voted in favor and the motion carried.

This Public Hearing was held as required by NCGS 158-7.1 to consider the renewal of the Option which the County currently has for the development of the Appleland Business Park. The County entered into an option on 69.4 acres of property owned by Mrs. Cynthia Whitted located at the intersection of Upward Road and the I-26 connector. The total purchase price for this property is $1,500,000.00. The County has partially exercised the option and purchased the Roadway the Park Property, Lot 8, Lots 1, 1A, 2, 3, 3A, 4, 4A, 6, 7(revised), 7A, and two lots to be dedicated to NCDOT, for a total acreage purchased of 47.0131 acres at a price of $1,099,697.20.

The current option will expire on June 30, 1997. If approved, this renewal will extend the option for another three month period to expire on September 30, 1997. The price to renew the option until September 30, 1997 will be the quarterly interest at the Nationsbank prime rate of interest determined as of June 10, 1997 on the unpaid portion of the purchase price of $400,302.76 (the remaining acreage to be purchased includes Lot 5, 22.3709 acres). Nationsbank prime rate June 10, 1997 was 8.50%, which would put the option payment at $8,506.41.

The payment to renew the option for an additional three month term is due on June 20, 1997. Therefore, if the Board desired to renew the option, it would be appropriate to approve this renewal at the close of the Public Hearing.

Public Input - There was none.

Commissioner Kumor made the motion for the Board to go out of Public Hearing. All voted in favor and the motion carried.

David Nicholson asked the Board to not take action on this item until following Closed Session to discuss a possible industry.

VISTA HILL FOUNDATION - Don Gladieux

Mr. Gladieux stated that Henderson County has an extremely serious problem which is getting worse. Mr. Gladieux said that he had heard that you can tell more about a community by the way they treat their animals than how pretty their streets are or how good their sidewalks are or whether they have a good arts center. He stated he would preset a solution which will not cost the county any money.

Mr. Gladieux has formed an alliance called the AAnimal Welfare Alliance@. A group of people have come together and are meeting monthly. They are determined to have a big impact in Henderson County on the animal problem. Their agenda at this time is:

1. We must find ways in Henderson County to make people aware of the problem and increase the adoption rate of pets.

2. We must reduce the source of the problem by spaying and neutering of pets.

3. Request the Board of Commissioners to appoint and approve four Animal Cruelty Officers (members of this alliance). As Animal Cruelty Officers, they can go onto private property to investigate animal cruelty but as private citizens they cannot.

Mr. Gladieux is a non-practicing Attorney. He currently has eight handicapped animals in his care. Personally he is building Vista Hill Foundation to be a nice home to take in animals. Once he gets it built he could accommodate 90 dogs and 45 cats.

The Board of Commissioners responded to Mr. Gladieux that they recently decided to revisit the Animal Control Ordinance in mid August.

HENDERSON COUNTY SOLID WASTE MANAGEMENT PLAN - July 1, 1996 to July 1, 2006

David Nicholson presented the second draft of the Solid Waste Management Plan. This draft includes changes which were incorporated into the draft after the Public Hearing on June 2. It also includes changes which were suggested after the June 5 meeting of the Solid Waste Management Plan Advisory Committee (PAC) and suggested changes after the June 9 meeting between David Nicholson and President of the Waste Hauler=s Association.

This Plan should be considered Phase I of a complete plan. The specifics of the recommended programs will be addressed in Phase II, complete with estimated cost and details of implementation. Due to time constraints of the July 1 deadline imposed by the State, it was not possible to conduct an in-depth study. The PAC will begin Phase II immediately.

State Statutes require that the Plan be revised every three years. If the Board chooses, the Plan could be revised every two years or even annually which would be reasonable considering the transition which is taking place now in managing solid waste in Henderson County.

Staff recommended that the Board of Commissioners approve the presented resolution adopting this plan. This action would allow us to meet the deadline required by State law. Included in the Plan are samples of resolutions for each municipality. After official adoption of the resolution by each municipality, these resolutions will be incorporated into the County=s Solid Waste Management Plan.

Commissioner Kumor made the motion that the Board adopt the Resolution on County Solid Waste Management Plan. All voted in favor and the motion carried.

BLUE RIDGE COMMUNITY COLLEGE BOND REQUEST

Dr. David Sink, President of Blue Ridge Community College, addressed the Board of Commissioners requesting a bond referendum for BRCC. He shared a need for a new building on the college campus - Workforce and Lifelong Learning Building with a projected cost of $8 million.

Dr. Sink recognized several persons in the audience who were present to back him and support his request:

Mr. Chris Stepp, Vice-Chair of BRCC Board of Trustees

Mr. Dick Baker, BRCC Trustee, former County Commissioner

Mr. Luke Rindal, BRCC Trustee

Mr. John McCormick, BRCC Trustee

Rev. Herman Davis, BRCC Trustee

Sheriff George Erwin, BRCC Trustee

Dr. Pat Eggen, President of the Center for Lifelong Learning

Dr. Eggen had eight members present of the Center for Lifelong Learning. They represent 1,300 citizens of Henderson County who are members of the Center for Lifelong Learning which is an initiative designed for people 50 years and older who contract with the College to offer courses that they want.

This project, submitted to the County Commissioners as a part of the Capital Improvement Program, was scheduled for construction in 1998-1999 with anticipated completion in the year 2000. Since the Long Range Plan was developed, costs have risen, increasing the amount projected from $5,825,000 to $8 million -- $6,750,000 for construction of the 50,000 square foot building and $1,250,000 for equipment to furnish it. An $8 million bond passed to build a Workforce and Lifelong Learning Building at Blue Ridge would add approximately 2 cents to the tax rate.

The Board of Trustees for the College recommended this project be put on the bond referendum for this fall.

David Nicholson said if the Board of Commissioners wishes to honestly look at this request, they should consider taking appropriate time to review this request and think about putting a bond referendum on for 1998 as opposed to this fall. County staff will have to go back to Raleigh and work with the Bond Council and the LGC (Local Government Commission).

Much discussion followed regarding bond rate, maximum indebtedness, etc. David Nicholson stated that the County is going to have to be creative and consider all alternatives for financing.

It was the consensus of the Board to add this item to Pending Issues for later in this agenda to give the Board a chance to think about this.

Commissioner Kumor requested that the Multipurpose Center Committee be invited to appear before the Board at a meeting in the near future to give an update on their Committee activities and where they are in the project. There was consensus that this would be a good idea.

AWARD OF CONSTRUCTION BIDS FOR 911 PROJECT

David Nicholson reminded the Board that the new 911 center is going to be located in the basement of the Administration Building, currently housing the Finance Department. Reconstruction of the Finance space is necessary to accommodate the 911 center. Grier-Fripp Architects out of Charlotte, NC designed the reconstruction and put the project out to bid. Bids were received on June 16, 1997.

State law states that you can bid this out as a single prime contract up to $500,000. The bid came in over $500,000, primarily because a generator had been priced incorrectly in the contract. Mr. Nicholson requested the Board of Commissioners reject these bids. The bid specifications will be changed to allow for multi-prime and single prime bids.

Commissioner Ward made the motion to reject the bids. All voted in favor and the motion carried.

Chairman Eklund called a five minute recess.

REORGANIZATION OF THE YOUTH DEVELOPMENT DEPARTMENT

David Nicholson reminded the Board that because of staffing and some other things we have not been taking kids at the emergency shelter for about a month now. This gave staff the perfect opportunity to relook at what the organization of youth development is, both the shelter and community activities.

Dawn Boone, Director of Youth Development, started by introducing her team (transition team):

Dawn Boone, Director

Harri-Ann Ellis, Case Manager

Barbara Metalsky, Night Counselor

Kathy Nash, Case Manager

Tina Rutledge, Case Manager

Leslie Anderson, Facilitator of the process

Angela Skerrett, Assistant County Manager and

the area Director for Youth Dev. Dept.

Janice McCloud, Clinical Consultant for the Dept.

Youth Development staff presented background information, the purpose of the self-study, methodology that was used as well as a chronological report of the day-to-day process. They also presented a new organization profile outlining their recommendations.

Dawn Boone then reviewed the new organizational profile with the Board:

Short Term Residential Program - the Spectrum Program

To provide 60 day placement with an extension of 30 days as necessitated by individual needs, still main-

taining 90 day maximum per licensing requirements.

Staff recommended that the age limit be changed from

8-18 years to 10-16 years.

Staff recommended that staff be sent to Therapeutic Crisis Intervention (TCI) training.

Staff recommended changing the name of the New Hope

Youth Shelter to the Spectrum Youth Shelter.

Staff recommended accepting CBA funding contingent

upon acceptable memorandum of understanding with

juvenile services.

Staff recommended design of an on-site recreation

master plan.

Staff recommended staff revisit the security measures

recommended by the Henderson County Sheriff=s Dept.

Staff recommended implementation of specific performance measures and benchmarking.

Staff recommended implementation of an individualized

professional development program for each staff.

Staff recommended completion of the re-organizational

effort by July 1, 1997.

Staff recommended entering into memorandums of under-

standing with all referral agencies.

Staff recommended redirection of the focus of the

advisory board from internal operations to external

community initiatives.

Staff recommended receiving accreditation by the Council on Accreditation.

Staff recommended establishment of a program of on-site clinical services.

Staff recommended family and parent referrals to require participation by the family mediation program

PACE offered by the dispute settlement center prior to acceptance into the short term residential care program.

Staff recommended redesigning staff patterns within the

full time employees currently existing. Dawn reviewed

a staff configuration and a proposed schedule with the

Board. The staff configuration consists of the Board of Commissioners, The County Manager, Area Director Angela Skerrett, Dept. Head Dawn Boone, 3 Case Managers. Staff recommended classifying the Assistant

Director=s position into a Program Coordinator=s position; to reduce the number of Case Managers from four to three converting one into a Residential Counselor=s position; to convert the Child Care Specialist position into a Residential Counselor=s position; to combine two of the six part-time positions into one full-time Residential Counselor position; to retain the remaining four part-time positions and to retain the Night Counselor=s position.

Staff also recommended that two staff members be on duty at all times, especially during the night. Currently they only have the Night Counselor who provides the awake coverage. They have looked at adding a third person during the hours of 3-9 a.m. to deal with the crises.

Community Wide Programs

To partner with other non-profit, for-profit

agencies, and businesses in the community and

to extend case management services currently

offered in the shelter program to families who

are not in the system already and thus are

slipping through the cracks.

Ombudsmen role or skilled navigator role

To serve as a clearing house for statistics and

data regarding youth in Henderson County, offer

individual follow up with agencies where youth

services are not being provided and to establish

a network among agencies in regard to youth issues

to be facilitated by youth development.

Dawn Boone stated that the next step for the year 2000 and beyond would be the reopening of the Spectrum Youth Shelter.

There was much discussion. Chairman Eklund thanked the Youth Staff for an excellent presentation. David Nicholson commended the staff for the fine job they have all done in setting goals, bench marks, etc. for their program and for wanting to achieve accreditation.

SET PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE HENDERSON COUNTY ZONING ORDINANCE REGARDING WIRELESS TELECOMMUNICATION TOWERS (as defined)

Matt Matteson reminded the Board that at the May 21 meeting, the Board of Commissioners discussed proposed amendments to the Henderson County Zoning Ordinance related to regulating wireless telecommunication towers in zoned areas. The Board asked staff to Aclean up@ the amendments and bring them back. The proposed amendments have since been reviewed and modified by staff. Following the Board=s direction, the provisions regarding radio and television towers have been left unchanged and may be revisited following consideration of these amendments which address cellular/PCS towers.

The Board of Commissioners must hold a public hearing prior to taking action on the proposed amendments. The earliest regular evening meeting at which the Board could hold a hearing and meet the public notification requirements would be Monday, August 4, 1997.

Commissioner Hawkins made the motion to set the Public Hearing for August 4 at 7:00 p.m. All voted in favor and the motion carried.

FIRE PREVENTION INSPECTION AGREEMENT

Henderson County has received requests from the Village of Flat Rock and the Town of Laurel Park for the provision of fire prevention inspections and related services. These are services that the Henderson County Fire Marshal=s Office is capable of providing to the municipalities on an actual cost basis.

Mr. Nicholson stated that attached as Exhibit A to a draft resolution is a draft agreement pertaining to this matter for the Board=s consideration. This Agreement in draft form has been forwarded to the Finance Director for his review and to the respective municipalities for comment. Staff may be bringing back revisions to the Agreement for the Board=s consideration as well.

No action was requested. This was presented for the Board=s information.

HENDERSON COUNTY PUBLIC SAFETY TELEPHONE ORDINANCE, AN ORDINANCE TO ESTABLISH COUNTYWIDE 911 SERVICE

Mr. Nicholson presented, pursuant to the Board=s request, a draft Ordinance to impose a surcharge on telephone service to pay for the capital cost associated with the new 911 center. The draft Ordinance imposes a $2.50 surcharge effective November 10, 1997 through November 9, 1998; after November 9, 1998 the surcharge would be reduced to 55 cents. The General Statutes require that a Public Hearing be held on this Ordinance before it can be considered for adoption. Additionally the General Statutes require that the effective date be 120 days after adoption. Staff proposed the following scheduled:

06-18-97 Board set Public Hearing for 7-7-97 at 7 p.m.

06-23-97 Legal Notice advertised.

07-07-97 Public Hearing on Ordinance. Board takes action

on Ordinance.

11-10-97 Effective date of Ordinance if Ordinance adopted

(surcharge at $2.50).

11-10-98 Surcharge reduced to 55 cents.

Commissioner Good made the motion to set the Public Hearing for July 7, 1997 at 7:00 p.m. All voted in favor and the motion carried.

UPDATE ON PENDING ISSUES

Update on Hospital Reorganization

Our staff has met with hospital staff to hold discussions. They will meet again in about a week for further discussions. A joint meeting with both Boards is anticipated for mid to late July.

Update on School Bonds

The original resolution passed by the School Board did not meet with the approval of the Bond Council. Bond Council drafted a new resolution for the School Board which will be on their June 30 meeting agenda.

Mr. Nicholson stated that a tentative date has been discussed for a bond referendum - November 18, 1997.

BRCC Bond Request

Commissioner Ward brought up the idea of combining a Blue Ridge Community College bond request with the Public School System bonds. Dr. Sink should be ready to bring this to the Board of Commissioners for the next meeting with numbers.

Update on Justice Academy Sewer

David Nicholson passed around a cost estimate and reviewed it with the Board. Gary Tweed has estimated the cost to providing sanitary sewer service for the Justice Academy by utilizing a wastewater treatment plant site on either the Fire Station Property or the County Property just to the rear of the Fire Station. Cost estimate for this option:

Subtotal $562,400

Contingency 56,240

Engineering 56,240

Total Estimate $674,880

We could locate the wastewater treatment plant near Lewis Creek and pick up a larger service area for approximately the same cost. The treatment plant would be put inside a metal building.

Resolution - American Heritage River

This item was pulled from the Consent Agenda of June 2 by Commissioner Hawkins who wished to find out more information before taking action.

Mr. Hawkins has since received information from the Federal Register. He shared the information with the Commissioners. It was the consensus of the Commissioners to proceed with applying for this designation.

Discussion regarding whether to reschedule mid-month July meeting.

Mr. Nicholson and Mr. Eklund will be in Baltimore at the NACo Conference and Mr. Hawkins will be in Nashville attending a conference. Mr. Nicholson suggested the mid-month July meeting be canceled.

Commissioner Hawkins made the motion to cancel the mid-month July meeting. All voted in favor and the motion carried.

Jail Committee

Mr. Nicholson will schedule this under ANominations@ for the next agenda. He proposed that the Board appoint the following:

two Commissioners assigned to Committee

Sheriff

Jail Administrator

County Manager

Three Chiefs of Police

One District and one Superior Court Judge

District Attorney

Clerk of Courts

The Sheriff will appoint some citizens and the Board of Commissioners will appoint some citizens (approx. four each).

NOMINATIONS

Chairman Eklund reminded the Board of the following vacancies and opened the floor to nominations:

1. Western Carolina Community Action Board of Directors - 1 vac.

There were no nominations at this time so this item was rolled to the next meeting.

2. Youth Advisory Board - 1 vac.

Anne Whitmire was nominated at an earlier meeting. There were no other nominations. No one had contacted Ms. Whitmire. This item was rolled to the next meeting.

3. Henderson County Board of Health - 3 vac.

Dr. Karen Davis, Larry Baber and Pam Miller were nominated for reappointment at the last meeting. Argie Taylor was nominated.

One vacancy is a veterinarian position and one is a pharmacist position. One vacancy is a public position.

Commissioner Kumor made the motion to appoint Dr. Davis and Larry Baber to fill the two designated positions. All voted in favor and the motion carried.

One vacancy was rolled to the next meeting (public position).

4. Mountain Area Workforce Development Board - 2 vac.

Ray Cantrell has submitted two nominees, Kathy Jenkens and Candy Priest. Commissioner Kumor nominated these two ladies and made the motion to suspend the rules and appoint Ms. Jenkens and Ms. Priest. All voted in favor and the motion carried.

5. Henderson County Child Fatality Prevention Program - 1 vac.

There were no nominations at this time so this item was rolled to the next meeting.

6. Asheville Regional Housing Consortium - Board of Directors - 1 vac.

Selena Coffey was nominated at the last meeting. Commissioner Kumor made the motion to appoint Ms. Coffey. All voted in favor and the motion carried.

IMPORTANT DATES

David Nicholson reviewed the Commissioners= calendar with the Board.

CLOSED SESSION

Commissioner Kumor made the motion for the Board to go into Closed Session as allowed under NCGS 143-318.11 for the following reasons:

1.(a)(3) To consult with an attorney employed or retained by the public body in order to preserve the attorney-client privilege between the attorney and the public body, which privilege is hereby acknowledged. To consult with an attorney employed or retained by the public body in order to consider and give instructions to the attorney with respect to a claim and to discuss the case of Hollingsworth v. Patricia Miller.

2.(a)(4) To discuss matters relating to the location or expansion of industries or other businesses in the area served by the public body.

3.(a)(5) To establish, or to instruct the public body=s staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating (1) the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease.

4.(a)(6) To consider the qualifications, competence, performance, character, fitness, conditions of appointment, or conditions of initial employment of an individual public officer or employee or prospective public officer or employee; or to hear or investigate a complaint, charge, or grievance by or against an individual public officer or employee.

All voted in favor and the motion carried.

Commissioner Ward made the motion for the Board to go out of Closed Session. All voted in favor and the motion carried.

BUDGET WORK SESSION AND ADOPTION

Chairman Eklund called the meeting back to order at 1:45 p.m.

David Nicholson presented the Budget Ordinance for the FY 1997-1998 Budget. Based on the Board=s discussions of June 17, 1997, staff had prepared the actual Budget Ordinance.

Mr. Nicholson reviewed the Budget Ordinance in some detail. The tax rate is set on page 8, section 17.

Much discussion followed.

Commissioner Kumor stated that the budget ordinance is based on a 3 cent increase. She felt that an additional one penny (4 cent increase) should be dedicated to building up our fund balance.

Commissioner Good suggested one half cent instead of one cent. He also recommended that $20,000 be put back in the economic development fund in the budget for the Chamber of Commerce.

The Board had set aside $57,000 for economic development in the proposed budget. There was discussion of moving $20,000 of that to the Chamber of Commerce budget for economic development.

Commissioner Hawkins stated that he was not comfortable with using county funds for a position for the Chamber of Commerce.

Commissioner Good requested in writing that additional funds could go to the Chamber of Commerce for economic development, if needed. Much discussion followed.

Commissioner Kumor made the motion to approve the proposed Budget Ordinance. A vote was taken and the motion carried three to two with Commissioners Ward and Good voting nay.

There was a call for a recount. The vote again was three to two with Commissioners Ward and Good voting nay.

Chairman Eklund called a recess at 2:05 p.m. and stated that the Board would reconvene at 3 p.m. to discuss Appleland Industrial Park. Members of the Chamber of Commerce will join the Board at that time.

Reconvened at 3:00

Appleland Industrial Park

Angela Skerrett gave a quick update on Appleland Industrial Park. The Board had previously discussed what to do with Lot 5, the one remaining lot in Appleland Industrial Park.

Ms. Skerrett discussed an option for splitting Lot 5 into two lots. She also reviewed a proposed change to the Appleland Restrictive Covenants that would need to be changed if the Board decides to split Lot 5 into two lots. She also passed around an updated map of the Industrial Park and reviewed that.

In its entirety, Lot 5 is just over 22 acres. Staff=s proposal was to make two lots of Lot 5, the back lot being Lot 5 with 18.4816 acres and the front lot being Lot 5A with 3.8893 acres. Staff also gave the option of selling Lot 5A for O & I (office and institutional) purposes.

Members of the Chamber of Commerce, Bill Lapsley and Roger Hill, recommended the front part of Lot 5 either as commercial or office retail/distribution with the back part of Lot 5 remaining for industry. They felt that the back portion would likely sell for warehouse distribution rather than manufacturing. They felt that the front portion would sell for $75,000 per acre or more and the back portion for $25,000 per acre.

Following much discussion, Commissioner Hawkins made the motion to adopt the proposed plan, adjust our Ordinance to comply and go out to bid on the front lot and renew the option on Appleland for an additional three months. All voted in favor and the motion carried.