MINUTES

MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON JULY 3, 2000

The Henderson County Board of Commissioners met for a regularly scheduled meeting at 5:30 p.m. in the Commissioners= Conference Room of the Henderson County Office Building at 100 North King Street, Hendersonville, North Carolina.

Those present were: Chairman Grady Hawkins, Vice-Chair Bill Moyer, Commissioner Renee Kumor, Commissioner Don Ward, Commissioner Marilyn Gordon, County Manager David E. Nicholson, and Assistant County Manager/Interim County Attorney Angela S. Beeker.

Also present were: Finance Director J. Carey McLelland, Public Information Officer Chris S. Coulson, Planning Director Karen C. Smith, Staff Attorney Jennifer O. Jackson, Assistant to the County Manager Selena D. Coffey and Office Assistant Amy Brantley.

Absent was: Clerk to the Board Elizabeth W. Corn.

CALL TO ORDER/WELCOME

Chairman Hawkins called the meeting to order and welcomed those in attendance.

PLEDGE OF ALLEGIANCE

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

INVOCATION

David Nicholson gave the invocation.

DISCUSSION/ADJUSTMENT OF AGENDA

Angela Beeker added one item as Staff Report AG@ - Right of First Refusal-Surplus School Board Property.

Chairman Hawkins asked for one item to be pulled from the Consent Agenda:

H. Resolution - Mrs. Linda Gibson (per Commissioner Gordon)

It was the consensus of the Board to approve the above changes to the agenda.

CONSENT AGENDA

Chairman Hawkins made the motion to approve the Consent Agenda. All voted in favor and the motion carried.

CONSENT AGENDA included the following:

Minutes

Draft minutes were presented to the Board for review and approval of the following meeting: February 7, 2000 regular meeting

Henderson County Financial Report - May 2000

The Henderson County Financial Report for May of 2000 was provided for the Board=s review and approval.

Henderson County Public Schools Financial Report - May 2000

The Henderson County Public Schools Financial Report for May 2000 was provided for the Board=s review and approval.

Tax Collector=s Report

Terry F. Lyda, Tax Collector, had provided the Tax Collector=s Report to the Board for review, as of June 29, 2000. The Deputy Tax Collector, Darlene B. Burgess, had also provided the Deputy Tax Collector=s Report.

Request for Improvement Guarantee for The Glens at Aberdeen

Mr. Luther E. Smith, on behalf of Butler Holdings, L.L.C., submitted a request for approval of an improvement guarantee for remaining road improvements to serve three lots in The Glens at Aberdeen subdivision (previously known as Butler Lake).

Pursuant to Sections 170‑38 and 170‑39 of the Subdivision Ordinance, a developer may, in lieu of completing all of the required subdivision improvements prior to Final Plat approval, post a performance guarantee to secure the County's interest in seeing that satisfactory construction of the incomplete improvements occurs. One type of permitted guarantee is an irrevocable letter of credit.

Butler Holdings, L.L.C., intends to post an irrevocable letter of credit to be issued by BB&T in the amount of $42,635.00. The letter of credit would serve as a guarantee for remaining grading, stone installation and paving for roads to serve three lots on which the developer intends to construct six model units. The developer intends to complete the road improvements by January 31, 2001.

Request for Improvement Guarantee for Meadow Woods, Phase I

Mr. Steve Bond, on behalf of The Housing Assistance Corporation (HAC), submitted a request for approval of an improvement guarantee for remaining road improvements in Phase I of Meadow Woods subdivision.

HAC would like to post a surety performance bond from CNA Surety/Western Surety in the amount of $27,200.00 to cover the cost of additional stone as well as asphalt for the roads in Phase I. HAC is proposing to complete the road improvements by December 31, 2000.

Section 170‑38 of the Subdivision Ordinance requires that the bond amount equal 125% of the cost of the improvements. HAC has submitted a contractor's estimate showing the cost of the improvements to be $20,400.00. With the 25% contingency amount of $5,100.00, the minimum amount required for the bond is $25,500.00. HAC is therefore proposing to post a bond in an amount that exceeds the required minimum by $1,700.00. This does not present any problems under the Subdivision Ordinance.

Public Records Disposal Request - Inspections Department

Pursuant to the County=s Records Retention and Disposition Schedule which was adopted by the Board of Commissioners on June 19, 1991, and the County=s Records Destruction Procedures adopted on June 21, 1995, Sam Laughter requested permission to destroy a number of records currently being maintained in the Inspections Department. The appropriate request form was submitted for the Board=s review.

The Staff Attorney had reviewed the request and was willing to state that the request was in conformity with the Records Retention and Disposition Schedule.

Resolution - Mrs. Linda Gibson

Commissioner Gordon stated that a resolution had been prepared honoring Mrs. Linda Gibson, and that she was very pleased to be able to make this resolution. Commissioner Gordon read the following resolution:

AWhereas Mrs. Linda Gibson, at age 70, became an employee at Henderson County Travel and Tourism in October, 1988; and, whereas Mrs. Gibson during this new career developed new computer skills that greatly assisted Travel and Tourism; and, whereas, Mrs. Gibson has proven to be a wonderful asset to Travel and Tourism, as well as to the community, through her dedicated work ethic during her twelve years of service. Now, therefore be it resolved, the Henderson County Board of Commissioners commends Mrs. Gibson for her twelve years of service to Henderson County Travel and Tourism and offers congratulations for her retirement.@

NOMINATIONS

Notification of Vacancies

There were none.

Nominations

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

1. Nursing/Adult Care Home Community Advisory Committee - 2 vac.

There were no nominations for the two vacancies so this item was rolled to the next meeting.

2. Juvenile Crime Prevention Council - 1 vac.

There were no nominations for this vacancy at this time. This vacancy must be filled by someone under 21 years of age. This item was rolled to the next meeting.

3. Mountain Area Workforce Development Board - 1 vac.

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

4. Child Fatality Prevention Team - 1 vac.

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

JAIL CHANGE ORDER

The Board was requested to consider the approval of a change order for the new Detention Center. When Tindall Corporation manufactured the pre‑cast cells, 23 of them were set up as double bunked by mistake. In order to occupy the facility, the State required the County to add eight additional showers. The cost for this upgrade is as follows.

General Contractor $ 7,207.00

Plumbing Contractor $10,299.00

Total $17,506.00

This change will also effect the total number of inmates that eventually could be housed within the facility. The Sheriff's Department has projected the number of inmates that they are planning to house at opening.

36 Males in Special Housing

48 Males in Medium Housing

40 Males in Minimum Dorm

40 Females

The total number of inmates that would be housed initially under this plan is 124 males and 40 females. With this change order, the total number of inmates that the entire facility could house in the future would now be 191 males and 40 females or 231 total.

David Nicholson gave a presentation concerning the costs and additional inmates that can be housed with this change order. Bill Byrnes was available to answer questions on the requested order. He noted that to add the additional 8 showers now will cost $17,506, but if we wait one year after the facility is finished and occupied, and go back in to add an additional 20 bunks it will cost close to $40,000.

Commissioner Ward raised the problem of classification in maximum security with this double bunking system. Previous discussions have indicated that the most viable option was one person per cell. If there is not one person in a classification you may have inmates with different crime classifications in the same cell.

Chairman Hawkins offered to follow up with correspondence to the Sheriff=s Department regarding how the Classification System will work, how this will affect future plans, and what the impact will be.

Following discussion, Commissioner Ward made the motion to accept the Jail Change Order as presented. All voted in favor and the motion carried.

ACCU-VOTE VOTING SYSTEM FOR MAIL-IN ABSENTEE BALLOTS

In the Spring of 2000 the Board of Elections reviewed and witnessed several voting systems designed to count absentee ballots. Based on the successful demonstration and the lower cost of Global Election Systems= Accu-Vote Voting System, the Board of Elections scheduled the equipment to be tested during the May 2, 2000 primary election. It was found to be an exemplary system, and the Elections Board unanimously voted to purchase and use the Accu-Vote system for mail out absentees. They requested final approval for the purchase from the Board of Commissioners.

Jennifer Jackson discussed the purchase of the system. Beverly Cunningham, Elections Director, was on hand for questions. Chairman Hawkins confirmed that the system would be used to count absentee ballots in the Elections office. It will be used by the Elections Board and any authority delegated to count ballots.

Chairman Hawkins made a motion to approve the purchase of the Accu-Vote Voting System as presented. All voted in favor and the motion carried.

APPLELAND BUSINESS PARK-CONVEYANCE OF PROPERTY TO ASSOCIATION

Jennifer Jackson discussed the conveyance of this property. At the Board=s meeting with the Appleland Business Park Property Owners on November 18, 1998, the Board directed Staff to assist the property owners with the incorporation of their association. Since that time, Articles of Incorporation for Appleland Business Park Property Owners Association Inc. have been filed with the Secretary of State, and the bylaws have been finalized.

The Board was asked to approve the execution and delivery of the deed which will convey the County owned common areas to the association. Additionally, the Board was requested to convey a sewer easement to Ms. Whitted to formalize deed restrictions, and ensure her proper access to the existing sewer lines.

Following discussion, Chairman Hawkins made a motion to deliver the deed as indicated to the Appleland Business Park Property Owners Association Inc., and the easement to Ms. Whitted. All voted in favor and the motion carried.

OFFER TO PURCHASE FORECLOSE PROPERTY LOT 25, BLOCK 8 OSCEOLA LAKE SUBDIVISION

Henderson County has received an Offer to Purchase Lot 25, Block 8, Osceola Lake Subdivision from Mark Case for $300.00. The property was acquired pursuant to a Sheriff=s Sale, held for the nonpayment of taxes in 1982. The Board can choose to either reject the offer, or accept the offer off of a proposed acceptance. This is not a final acceptance on the offer. If the proposed acceptance is chosen, it shall be advertised for upset bids. If a 10 day period passes after it is advertised and there are no upset bids, the offer will come back to the Board for final approval.

Angela Beeker rendered a basic title opinion which stated that there are some irregularities for which there is documentation. For this reason, if the Board wished to consider this offer, it was advised to make the buyer aware of the irregularities, and have the buyer sign a release releasing the County from any liability that may be associated with the property. Mrs. Beeker stated that she would advertise it for a Quit Claim Deed.

Commissioner Ward requested that a sign be posted to alert nearby property owners that the property is for sale. Mrs. Beeker agreed that this could be done. Commissioner Ward made the motion to take the acceptance of the offer advertised with the indication that there are some title limitations and to post it to make the members of the community aware of the sale. All voted in favor and the motion carried.

MUD CREEK FEES

The Board of Commissioners discussed the June 1, 2000 letter from Mayor Niehoff concerning the capacity depletion fees. The Board requested that staff work with the City of Hendersonville's staff on the proper way to handle these fees while the agreement for the sale of the Mud Creek System is being worked out.

David Nicholson addressed the chronology of this issue. After holding several discussions on this issue, staff recommended to the Board that in this interim period that the County should continue to charge all of our fees. The County would document any fees paid during this period, place them in an escrow account and should the deal be finalized, return the fees to the developers.

A recommendation to accept Staff=s proposal and continue to charge our fee was agreed upon. Chairman Hawkins will correspond with Mayor Niehoff with the Board=s recommendation.

TAX ON GROSS RECEIPTS ON RENTAL VEHICLES

The Board discussed Senate Bill 1076, Rental Car Gross Receipts Tax at the meeting on June 5, 2000. This new law eliminates the Property Tax on rental passenger cars, cargo vans and trucks and moving type trailers. The law allows units of local government to levy up to 1 1/2% tax on the gross rental receipts of these vehicles.

According to the Assessor's Office, the County had approximately 5 million dollars in value on about 200 rental vehicles. The property tax on 5 million dollars would amount to $25,000 annually. Assuming that each of these vehicles were rented 200 days a year at $50 a day at 1 1/2% gross receipts, the annual collection would be $30,000. Staff projected that it will take a year to actually determine the gross receipts.

Commissioner Kumor made a motion to adopt this Resolution as presented. All voted in favor and the motion carried.

RIGHT OF FIRST REFUSAL - SURPLUS SCHOOL PROPERTY

The Board had received from the School Board an offer to let the County purchase a piece of property they have declared surplus. It is located in Green Meadows Subdivision. It is being offered to the County at a cost of $50,900. Under General Statutes, the School Board is required to offer to the County any property that they declare surplus before they sell it. Chairman Hawkins confirmed that the income from the sale of the property will go into the Capital Fund.

Chairman Hawkins made a motion to reject this Offer of First Refusal. All voted in favor and the motion carried.

INFORMAL PUBLIC COMMENTS

There were none.

MOUNTAINBANK RELIEF MAP

MountainBank requested permission to develop and pay for a topographical United States map. They wanted this map to be placed on the back four acres at the East Flat Rock Community Park. They have made two presentations to the Parks & Recreation Advisory Board. The Advisory Board approved this request and it was presented to the Board of Commissioners for consideration.

Terri Thompson, Director of Marketing for MountainBank, discussed the genesis of this proposal. She distributed handouts which are attached as part of the minutes. MountainBank has committed to the costs of the construction of the map. The costs are estimated at $50,000. For this consideration, Mountain Bank would like the map to be called AThe MountainBank Relief Map@. Mr. J.W. Davis, President and CEO of Mountain Bank, also spoke on behalf of the project.

Chairman Hawkins made a motion to accept the project as presented. All voted in favor and the motion carried.

PUBLIC HEARING - To Consider Road Name For Dollie Case Lane

This public hearing was being continued from the June 5, 2000 to consider the naming of Dollie Case Lane. Staff had done research since that meeting and was prepared to bring information back to the Board.

The road in question was named AInterestingLane@ by the Board of Commissioners on June 17, 1998. It was renamed ADollie Case Lane@ by the Board of Commissioners on August 3, 1998. Therefore, at this time, the name of the road is ADollie Case Lane@. Pursuant to the approved petition form which has been used to name roads, persons who own property along the road were eligible to sign the petition. Each property owner had one vote regardless of how much property that person owns. Two petitions were originally circulated in 1998, each petition having six signatures. Regardless, at the August 3, 1998 public hearing, the road was renamed ADollie Case Lane@.

At the June 5, 2000 public hearing, 10 of the 12 ballots had been returned, 6 for ADollie Case Lane@ and 4 for AInteresting Lane@. Three issues were raised at the June 5, 2000 meeting. First, should someone whose road interesects with Dollie Case Lane have a vote. Under the policy adopted in 1991, that person would not be able to cast a ballot. However, the Board could give their opinion consideration.

Second, should a life estate holder have a vote? Staff=s recommendation was that a life estate holder be given the right to cast a ballot. A life estate holder owns the property for the rest of their life, and therefore holds a much stronger interest in the property.

Third, did everyone eligible to vote receive a ballot? It came up at the June 5, 2000 meeting that a recent property owner may not have received a ballot. Of those that may not have received ballots, one was turned in for consideration at this meeting.

Commissioner Kumor made a motion to go into Public Hearing to consider a road name for ADollie Case Lane@.

Chairman Hawkins asked for anyone in the audience who did not have the opportunity to speak at the June 5, 2000 meeting to come forward.

1. Vanessa Nelon - Ms. Nelon stated that she had not received a ballot previously. She spoke in favor of Dollie Case Lane.

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

Following additional discussion, Commissioner Kumor made the motion to let the road name stand as ADollie Case Lane@. Commissioner Ward was excused from voting on this item due to a conflict of interest. Commissioners Kumor, Hawkins, Moyer and Gordon voted in favor and the motion carried.

HEARING - Ambulance Franchise Application - Arc Angel Trans=Support Services

Commissioner Kumor made a motion to go into Public Hearing on the Ambulance Franchise Application for ARC Angel Trans=Support Services. All voted in favor and the motion carried.

On June 21, 2000 the Board was informed that an application for a nonemergency medical transport franchise was submitted by the Odin Corp., d/b/a Arc Angel Trans=Support Services. Chapter 87 of the Henderson County Code is entitled AEmergency Medical Services@ and has commonly been referred to as the Ambulance Ordinance. This Ordinance outlines the procedure by which an individual or corporation can apply for a franchise and also governs some of the terms of the resulting franchise agreement.

In compliance with this procedure, this hearing was set to allow the applicant to appear and answer any questions concerning Mr. Aaron Edney=s application.

NCGS 153A-46 requires that the granting of the franchise be acheived by the adoption of an ordinance at two regular meetings of the Board. Should the Board deem it appropriate to approve the first reading of the ordinance at the close of the hearing, it will appear back on the next agenda for the second and final reading.

There was discussion concerning the rate schedule. The first option assumes that the Board would amend the ordinance which allows Mr. Edney to charge whatever rates Henderson County EMS charges. If he wished to charge in excess of that, he would have to come back before the Board and request specific approval to do so. Currently, the charge for oxygen is in excess of what EMS charges.

Three changes were made from the original ordinance. One change was that when the original grant of franchise was made, it limited Arc Angel to operating in the unincorporated areas of the County. Subject to the Ambulance Ordinance being amended, Arc Angel would also be allowed to operate in the incorporated areas.

The second item pertained to the phone numbers that are currently operating. The original grant of franchise included all mobile numbers, the cell phone numbers in each ambulance. Since the grant is a public document, some of those numbers were being abused. With this change, only public numbers will be listed in the agreement. Private numbers would still be available to the EMS Director, law enforcement and all dispatch centers.

The third item dealt with Reporting and Annual Review. The old franchise had a provision which required Mr. Edney to come before the Board annually and give a report of the franchises activities. As this has not been done previously, this had been changed to require him to submit a written report to the EMS Director outlining annual activities. It is still within the Boards discretion to request a report if they wish to have one.

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

Following much discussion, Commissioner Kumor made the motion to accept the franchise as proposed, including Schedule A, with regards to rates subject to the terms of the ordinance. All voted in favor and the motion carried.

CAPITAL PROJECTS UPDATE

Two major Capital Projects will be coming up within the next fiscal year. David Nicholson presented a resolution, and discussed the initial projects.

The first dealt with the schools. The Board of Education will be requesting that the Board of Commissioners request to borrow funds for the replacement of Balfour Elementary School, and to do some new construction and renovation at Etowah Elementary School. The total of the projects is about 16 million dollars. The School Board has already approved about $300,000.00 for some initial construction at Etowah that must be completed before school starts this fall. A large portion of that provides for a secured walkway. Based on the timing of this issue, a COPS Issue is being suggested as the financing tool. To get us started with this and to protect the School Board from the expenditures they have made, Staff had prepared a Reimbursement Resolution. A Joint Schools Facilities Committee meeting has been scheduled for August 21, 2000.

Chairman Ward made a motion to adopt the Resolution as requested by the Henderson County Board of Education. All voted in favor and the motion carried.

Second, the Board of Directors for the Henderson County Hospital Corporation who operates Margaret R. Pardee Memorial Hospital has requested that Henderson County consider the issuance of 10 million dollars worth of debt for the expansion and renovation of the emergency room and the construction of a parking deck. The hospital plans to begin construction on these projects this fall. David Nicholson stated that the County is leaning toward doing a private placement revenue bond. This is a revenue bond where the revenues of the hospital are pledged to pay it off. In this scenario, the bond still goes out to bid, but is offered to one bank as opposed to the public in total. Staff had prepared a Reimbursement Resolution for the Board=s consideration. In this Resolution is included a notation about the medical office building. Depending on the opinion of the Local Government Commission, the medical office building may be done through a real estate deal.

Mr. Frank Aaron spoke briefly regarding the final plans for these projects. Ms. Sandy Smith, interim CEO, presented the plan. Outlined was the fact that the Emergency Department is designed to treat approximately 27,000 visits per year. Pardee expects to treat 31,000 this year and are forecasted to treat 40,000 annually in less than 10 years. In the new Emergency Department, the rooms will be enlarged and modernized, there will be dedicated treatment rooms for specialities, expanded trauma care capabilities, additional family support spaces, a decontamination area that will be expanded to handle disaster situations, and a radiology room.

A 1999 study by Walker Parking Consultants determined that there is currently a deficiency of 200 parking spaces. The new parking deck will more than address this issue. Additionally, the new parking deck will create a better access for ambulance traffic, as well as ambulatory traffic to the department.

The financial aspect was briefly examined. PriceWaterhouseCoopers was approached for their advice on the hospital=s ablility to handle the debt that is being proposed, the current situation with the hospital, and their financial health. The result of this study was that Pardee is in relatively better financial shape than most AA Hospitals to be able to handle this debt and to pay off this debt with their revenues.

Following discussion, Chairman Hawkins made a motion to adopt the resolution. All voted in favor and the motion carried.

Chairman Hawkins spoke to Mr. Frank Aaron, thanking him for his acomplishments as Pardee=s CEO. His accomplishments have been exemplary, and the community has been the beneficiary of those accomplishments. He was wished well in his new endeavors.

IMPORTANT DATES

The Commissioner=s calender was reviewed.

Mr. Dewey Putnam has submitted an application requesting that the County rezone a 0.65‑acre parcel that he owns on Spartanburg Highway (US 176) from an R‑20 (Low Density Residential) district to a C‑4 (Highway Commercial) district.

The Henderson County Planning Board reviewed the application at its meeting on June 27, 2000 and voted to send the Board of Commissioners a favorable recommendation on the request as submitted. Chairman Hawkins made the motion to schedule the Public Hearing for Monday, August 7, 2000 at 7:00 P.M. All voted in favor and the motion carried.

Commissioner Hawkins made the motion to reschedule the Public Hearing originally scheduled for July 19 at 11:00 and rescheduled for July 26, 2000, with regard to the appeal by Dr. Kenneth Swing to August 8, 2000 at 6:00. Commissioners Hawkins, Kumor and Gordon voted in favor and the motion carried. Commissioners Ward and Moyer have been excused from this hearing.

CLOSED SESSION

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

5. (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.

6. (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.

3. (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.

Commissioners Hawkins, Kumor, Moyer and Gordon voted in favor and the motion carried. Commissioner Ward voted against going into closed session on objection to NCGS 143-318.11 (a)(3).

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

ACTION FOLLOWING CLOSED SESSION

Chairman Hawkins made a motion to appoint Angela Beeker as County Attorney at a salary of $75,000 and to set the salary of the Assistant County Attorney at $53,000. Both of these positions will not be on the grade and step table and will not receive the cost of living increase scheduled for October. All voted in favor and the motion carried.

Chairman Hawkins announced that the Board of Commissioners would be appealing the decision of Multimedia Publishing vs. Henderson County. County Attorney Beeker read a Resolution and Chairman Hawkins made a motion to approve the Resolution. All voted in favor and the motion carried.

ADJOURN

There being no further business to come before the Board, Chairman Hawkins adjourned the meeting.

Attest:

Elizabeth W. Corn, Clerk to the Board

Grady Hawkins, Chairman

(prepared by Amy Brantley, Office Asst.)