MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON AUGUST 15, 2001

The Board of Commissioners (the "Board") of the County of Henderson, North Carolina (the "County") held a meeting in the County Administration Building, 100 North King Street, Hendersonville, North Carolina on August 15, 2001, at 9:00 AM. The following commissioners were:

PRESENT: Chairman Bill Moyer, Vice-Chair Marilyn Gordon, Commissioner Grady Hawkins, Commissioner Don Ward, and Commissioner Charlie Messer,

ABSENT: None.

Also present were: County Manager David E. Nicholson, County Attorney Angela S. Beeker, Clerk to the Board Elizabeth W. Corn, Public Information Officer Chris S. Coulson, Assistant County Attorney Jennifer O. Jackson, Planning Director Karen C. Smith, Finance Director J. Carey McLelland, Fire Marshal and EM Coordinator Rocky Hyder and County Engineer Gary Tweed. Amy Brantley, Volunteer Coordinator, was present through the Nominations.

CALL TO ORDER/WELCOME

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

PLEDGE OF ALLEGIANCE

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

INVOCATION

Reverend Gus Martschink, from the Pardee Hospital Chaplaincy Program, gave the invocation.

Reverend Martschink - informed those in attendance of a newsworthy item. Inspired by the Moyer series on Death and Dying, a broad-based group of professionals in this community have been meeting. The group will sponsor the first Henderson County AEnd of Life Care Forum@ in September. It will be held on Thursday, September 20, 5:30 to 7:30 p.m. at West Henderson High School. The question the group will try to help the attendees answer is very simply AHow to be empowered as a patient and a family member during the end of life process@. There will be a seven member panel of professionals made up of a physician, an attorney, a chaplain, a funeral home director, long-term care representative, an ethicist, and a bereavement counselor. The intent is to have the audience figure a way that they can best help themselves as a family to do the things that they need to do so that when this time comes for the family that they have an opportunity to focus only on the love and compassion for that family member and not be so wrapped up and concerned about those other things that can distract them.

DISCUSSION/ADJUSTMENT OF AGENDA

Chairman Moyer added one item for discussion to the Update on Pending Issues - American Freightways water line.

Chairman Moyer stated that there was an additional (third) reason for the Board to go into closed session other than the two listed and stated he would explain when it came to that point in the agenda.

Commissioner Messer added one item to Discussion Items as AD@ - Howard Gap Road.

Commissioner Hawkins asked to move Discussion Items AA & B@ to immediately following Nominations. These were two Pardee Hospital issues and several people from Pardee were present for those two items.

Chairman Moyer made the motion to approve the agenda as revised. All voted in favor and the motion carried.

CONSENT AGENDA

Chairman Moyer made the motion to approve the Consent Agenda. All voted in favor and the motion carried. The CONSENT AGENDA consisted of the following:

Tax Releases

A list of 24 tax release requests was presented for the Board=s consent approval.

Tax Refunds

A list of 9 tax refund requests was presented for the Board=s consent approval.

Easement Across Hospital Property

The Hospital Corporation does not have the power or authority to hold title to real property. All real property that the Hospital uses is titled in the name of Henderson County. One such parcel of property is located in Etowah on US Highway #64 West. The Hospital had been contacted by Quality Oil Company, LLC who was seeking a driveway easement over a very small corner of the subject property in order to aid them in their development of the adjacent parcel of land. A map was presented for the Board=s review which showed the property and the area that will be affected by the easement, if granted. The Hospital believes that the improvements Quality Oil Company will be making to the adjacent property will have a positive impact on the value of the Hospital property and will not impair use of that property.

As owners of the real property affected, it is within the Board=s discretion to approve the easement. Section 160A-273 of the North Carolina General Statutes (made applicable to counties by NCGS 153A-176) allows the County to grant such an easement across County property. The Hospital supports the grant of a non-exclusive easement across the portion of the property indicated on the map. If approved by this Board, a deed of easement will be drafted for the Chairman=s signature.

In order to expedite the Commissioners= approval of this easement, a resolution has been drafted.

Mr. Nicholson recommended, in order to assist and support the Hospital, the adoption of the prepared draft resolution which approves the County=s conveyance of the easement as requested.

Amendment to Waste Management Contract

At a recent workshop on solid waste, the Board heard a presentation on a proposed amendment to our contract with Waste Management. Since that meeting, the Solid Waste Advisory Committee reviewed the amendment and have recommended it to the Board for approval (by prepared resolution).

Mr. Nicholson and staff recommended that the Board approve the amendment to our contract with Waste Management (by resolution).

NOMINATIONS

Notification of Vacancies

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

1. Henderson County Planning Board - 1 vac.

Nominations

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

1. Solid Waste Advisory Committee (SWAC) - 1 vac.

Commissioner Hawkins stated that at the last SWAC meeting, the Board members were asked to let Commissioner Hawkins know if anyone was interested in serving as Chairman. Neither he nor Gary have heard from anyone at this time.

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

2. Mountain Area Workforce Development Board - 1 vac.

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

3. Board of Equalization & Review - 3 vac.

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

4. Retired Senior Volunteer Program Advisory Council - 1 vac.

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

5. Juvenile Crime Prevention Council - 1 vac.

There were no nominations at this time so this item was rolled to the next meeting. The appointee must be someone from the faith community.

6. Henderson County Zoning Board of Adjustment - 1 vac.

There were no nominations at this time so this item was rolled to the next meeting. It was felt that this would be taken care of later in the meeting when the Board takes action on another agenda item.

7. Western Carolina Community Action (WCCA) - 1 vac.

Commissioner Gordon nominated Jonathan Parce. There were no other nominations. Commissioner Gordon made the motion to suspend the rules and appoint Mr. Parce by acclamation. All voted in favor and the motion carried.

HOSPITAL REVENUE BONDS

The Chairman of the Board stated that one of the purposes of the meeting was to approve certain documents and other actions in connection with the issuance by the County of its Hospital Revenue Bonds (the "Bonds") in an aggregate principal amount not exceeding $15,300,000 to be secured by the net revenues of the hospital system for the purposes of financing the cost of (i) the construction, renovation and expansion of a medical office building, an emergency room facility and a parking garage, and (ii) the acquisition of equipment for those and other improvements and additions to such hospital facilities (collectively, the "Project"); (iii) paying a portion of the interest accruing on the Bonds; and (iv) paying certain expenses in connection with the authorization and issuance of the Bonds.

The Chairman advised the members of the Board that the first order of business was to consider and take action on a resolution (i) directing the filing of an application with the Local Government Commission for approval of the issuance of the Bonds, (ii) the hiring of various members of the financing team, (iii) approving the Amended and Restated Lease Agreement between the County and the Henderson County Hospital Corporation and (iv) authorizing and approving the Preliminary Official Statement and its use in connection with the marketing of the Bonds.

Assistant County Attorney Jennifer Jackson distributed a revised preliminary official statement that contained minor revisions from the version that the Board had seen previously and discussed the matters on it for the Board=s consideration and answered questions asked by the Board.

Commissioner Hawkins then introduced the following resolution, which was read by title, and moved that it be adopted:

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HENDERSON, NORTH CAROLINA DIRECTING THE FILING OF AN APPLICATION WITH THE LOCAL GOVERNMENT COMMISSION FOR APPROVAL OF THE ISSUANCE OF HOSPITAL REVENUE BONDS AND CERTAIN RELATED MATTERS

WHEREAS, the Board of Commissioners (the "Board") of the County of Henderson, North Carolina (the "County") hereby determines that the acquisition, construction and equipping of certain improvements and additions to the Margaret R. Pardee Memorial Hospital, located at Margaret R. Pardee Hospital, 715 Fleming Street, Hendersonville, North Carolina 28791 (the "Hospital Facility"), including the cost of: (i) the construction, renovation and expansion of a medical office building, an emergency room facility, a parking garage, and (ii) the acquisition of equipment for those and other improvements and additions to the Hospital Facility (collectively, the "Project"), must be undertaken by the County at an estimated cost not to exceed $15,300,000, including the cost of financing the Project;

WHEREAS, the Board desires to authorize the County Manager and the Finance Director of the County to apply to the North Carolina Local Government Commission for its approval of the issuance of the hospital revenue bonds (the "Bonds") to pay for the Project and to take all other action necessary in connection therewith;

WHEREAS, the Board has considered and evaluated both fixed and variable rate debt alternatives;

WHEREAS, the Board considered and recognized that the current interest rates on fixed rate debt instruments are low and determined that the estimated interest rate at which uninsured fixed rate debt instruments could be issued is 6.263% and the rate at which debt instruments insured by a municipal bond insurance policy could be issued is 5.584%;

WHEREAS, the Board considered and recognized that variable interest rate debt instruments subject the County to the risk of higher interest rates in the future, that the rates may be higher than the fixed rates that are currently available to the County, and that in addition to the variable interest cost, the County must pay the fees of Branch Banking and Trust Company (the "Letter of Credit Provider") and Scott & Stringfellow, Inc., trading as BB&T Capital Markets (the "Remarketing Agent"), which fees may increase the variable interest cost by 0.615%;

WHEREAS, the Board believes that variable rate debt financing is superior because of the projected debt service cost savings over the life of the Project;

WHEREAS, the Board desires to retain LeBoeuf, Lamb, Greene & MacRae, L.L.P., as bond counsel, Scott & Stringfellow, Inc., trading as BB&T Capital Markets, as the underwriter (the "Underwriter"), Prince, Youngblood & Massagee as counsel to the Henderson County Hospital Corporation (the "Corporation"), Branch Banking & Trust Company as the letter of credit provider (the "Letter of Credit Provider"), Smith Helms Mulliss & Moore as counsel to the Underwriter and the Letter of Credit Provider, and First Citizens Bank & Trust Company as the trustee in connection with the issuance by the County of the Bonds.

WHEREAS, pursuant to a Lease Agreement between the County and the Corporation dated November 1, 1998 (the " Lease Agreement"), the County has transferred control and operation, but not ownership, of the Hospital Facility from the County to the Corporation.

WHEREAS, the Board desires to authorize and approve the Amended and Restated Lease Agreement, to be dated on or about September 1, 2001, between the County and the Corporation (the "Amended and Restated Lease Agreement"), which amends and restates the Lease Agreement, and copies of such Amended and Restated Lease Agreement in substantially final form have been submitted to the Board.

WHEREAS, a draft of the Preliminary Official Statement to be dated on or about September 5, 2001 has been submitted to the Board and the Board desires to approve the distribution of the Preliminary Official Statement in connection with the marketing of the Bonds;

NOW, THEREFORE BE IT RESOLVED by the Board, as follows:

Section 1. That the County Manager and the Finance Director of the County are hereby authorized, directed and designated to file an application with the North Carolina Local Government Commission for its approval of the issuance by the County of the Bonds.

Section 2. That the Board finds and determines and asks that the Local Government Commission find and determine from the County's application and supporting documentation:

(a) That the issuance of the Bonds is necessary and expedient;

(b) That the amount of Bonds will be sufficient but is not excessive, when added to other monies available to the Corporation, for the proposed acquisition, construction and equipping of the Project;

(c) That the Project is feasible;

(d) That the County's debt management procedures and policies are good; and

(e) That the Bonds can be marketed at a reasonable interest cost to the County.

Section 3. The Board authorizes and requests that the Bonds be sold with a variable interest rate at private sale without advertisement to any purchaser or purchasers thereof, at such prices as the Local Government Commission and the Board determines to be in the Board's best interest, subject to the approval of the County Manager or Finance Director of the County.

Section 4. That the Chairman and Vice Chairman of the Board, the County Manager, the County Attorney, the Assistant County Attorney, the Finance Director, the Clerk to the Board and the Deputy Clerk to the Board are hereby authorized to do any and all things necessary to effectuate the issuance of the Bonds.

Section 5. That LeBoeuf, Lamb, Greene & MacRae, L.L.P. shall be retained to serve as bond counsel and Scott & Stringfellow, Inc., trading as BB&T Capital Markets, shall be retained to serve as the underwriter, Prince, Youngblood & Massagee as counsel to the Corporation, Branch Banking & Trust Company as the letter of credit provider (the "Letter of Credit Provider"), Smith Helms Mulliss & Moore as counsel to the Underwriter and the Letter of Credit Provider, and First Citizens Bank & Trust Company as the Trustee in connection with the issuance by the County of the Bonds.

Section 6. That the Board requests that the Local Government Commission sell the Bonds through negotiation to Scott & Stringfellow, Inc., trading as BB&T Capital Markets, on such terms as may be agreed.

Section 7. The Chairman or Vice Chairman of the Board is hereby authorized and directed to execute, deliver and perform the Amended and Restated Lease Agreement in the form presented at this meeting together with such changes, modifications, and additions as he, with the advice of counsel, may deem necessary and appropriate; such execution and delivery shall be conclusive evidence of the approval and authorization in all respects by the County of the form and content thereof.

Section 8. The County hereby authorizes and approves the distribution of the Preliminary Official Statement, to be dated on or about September 5, 2001, and its use in connection with the marketing of the Bonds.

Section 9. That this Resolution shall become effective on the date of its adoption.

Commissioner Ward seconded the motion and, after discussion, the Resolution was adopted by the following vote:

AYES: Chairman Moyer, Vice-Chair Gordon, Commissioner Hawkins,

Commissioner Ward, and Commissioner Messer.

NAYS: None

ABSTAIN: None

PARDEE HOSPITAL BUDGET

A draft of the Margaret R. Pardee Memorial Hospital=s Fiscal Year 2002 Budget was provided for the Board=s review. The Board of Directors of the Hospital Corporation is expected to approve the budget in September. The draft was provided to the Board of Commissioners in advance for any comments or questions.

A full presentation to the Board on the financial position of the Hospital will happen after they receive their audited financial statements

Bob Goodwin, Chief Executive Officer of Pardee Hospital, came forward and introduced his colleagues in the audience; John Hester, Chief Financial Officer; Sandy Smith, Senior Vice-President for Operations; and Mary Ann Moores, Public Relations Coordinator. He presented the draft proposed budget for Fiscal Year 2002 for the Hospital and answered questions from the Board. Pardee Hospital and all of the entities related to it are an extremely successful organization. He stated that it is often quoted that 90% of the health care dollar is spent in the last 6 weeks of our life.

Bill Dunn entered the meeting at this time, Chairman of the Hospital Board.

Mr. Goodwin stated that Pardee Hospital employs over 1,300 people. Next year their capital budget is $23 million, charity care $1.3 million, and bad debt is estimated to be $8.4 million. Pardee receives about 56 or 57 cents on every dollar that it charges. Operating expenses for 2002 will be about $97,000,000, the largest percentage of that (almost $55,000,000) is directly related to labor (wages, salaries, and benefits). Mr. Goodwin stressed that this is the draft budget, not yet approved by the Hospital Board. The Hospital Board=s Finance Committee has reviewed the budget and has had two Board workshops.

John Hester stated that the hospital will increase their rates by 6% next year. He reviewed the income statement and the expense statement for Pardee. He answered questions from the Board.

Lease Agreement

David Fisher had arrived and Ms. Jackson had spoken to him. He confirmed that the difference in the price that was questioned earlier in the meeting is interest. If the county defaults on its issue on day one of a cycle, they need to be able to assure the bond holders that they will get their full interest which is roughly 35 days worth of interest.

TAX COLLECTOR SETTLEMENT

Terry F. Lyda, Tax Collector, and Darlene Burgess, Deputy Tax Collector (also Delinquent Tax Collector) addressed the Board. Mr. Lyda explained that it is time once again for the delivery of the tax receipts to the Henderson County Tax Collector; however before they can be delivered, the following must occur (pursuant to NCGS 105-352):

Prepayments

The Tax Collector must deliver any duplicate bills printed for prepayments received by the Tax Collector to the Finance Director and demonstrate to the Finance Director=s satisfaction that all prepayments received have been deposited.

No prepayments were received; therefore no action was necessary.

Settlement

The Tax Collector must make settlement with the Board of Commissioners for all taxes placed in his hands for collection for the past year.

The Tax Collector=s settlement was placed in the Commissioners= mailboxes in the form required by statute. Approval of the settlement will be necessary.

Settlement for the delinquent taxes was also placed in the Commissioners= mailboxes. There is no statutory form required for the settlement for delinquent taxes. The Board must also approve this settlement.

Bond

The Board of Commissioners must approve the bond to be issued for the Tax Collector and Deputy Tax Collector for Delinquent Taxes.

Copies of the current bonds were included in the agenda packet, as was information pertaining to premiums for the bonds. Although bond amounts were confirmed at the Board=s December 4, 2000 meeting, approval of the bond amounts for the Tax Collector and the Deputy Tax Collector will again be necessary at this meeting.

Order of Collection

An order of collection must be adopted at this meeting, which will charge the Tax Collector with the collection of FY 2001 taxes, plus all outstanding delinquent taxes.

Chairman Moyer asked Ms. Beeker to explain what the settlement process is and why we go through it and what the order of collection is.

Ms. Beeker explained that each year about this time tax bills go out because the due date for tax bills is September 1. The law provides a mechanism to have some checks and balances in place to have an accounting for the prior year=s taxes before the new bills are delivered to the tax collector for collection, that is the purpose of this agenda item. The law states that before the tax bills can be delivered to the Tax Collector to be mailed out and collected, that a couple of things have to occur:

1. If the tax Collector has received any prepayments, he has to have delivered those bills to the Chief Financial Officer which is Mr. McLelland and demonstrate that all prepayments received have been deposited. This year, he has received no prepayments.

2. The second thing that has to occur is the settlement. It is the accounting whereby the Tax Collector must demonstrate to the Board what occurred with respect to all the taxes that he was charged with collecting last year. He either has to show that they have been collected and the money is in the bank or that they are a lien on real property, or that they are still remaining to be collected and satisfy the Board of Commissioners as to that accounting.

3. The third thing that must occur is the Tax Collector must present an appropriate bond and historically this Board has always taken it upon itself to set the bond amount and pay those premiums.

4. Finally, once the settlement and the bond have been taken care of then the Board can issue the Order of Collection to the Tax Collector, which is his legal authority to collect the taxes that are represented in the bills and to deliver the bills to him for collection.

Chairman Moyer distributed resolutions that staff had prepared to take care of each of these items.

Chairman Moyer raised a question to Terry and Darlene about the amount of their bonds. The Board currently has a One million dollar bond for the Tax Collector and a half million dollar bond for the Deputy Tax Collector. It was decided to leave the Tax Collector=s bond at one million dollars but to reduce the Deputy Tax Collector=s bond to $250,000. The test the Board always uses is the maximum amount of money they will have at any one time during the collection period. The reduction of Darlene=s bond would be a savings to the County of almost $1,000.

Chairman Moyer asked if any Commissioners had questions regarding the settlement. Several questions were asked and answered. It was discussed that the list of unpaid taxes was also the insolvent list and should be charged back to the Deputy Tax Collector for collection.

Action

Chairman Moyer made the motion to approve the bonds, $1,000,000 for Terry Lyda and $250,000 for Darlene Burgess, to approve the settlement with the Tax Collector for the year 2001 as set forth in the resolutions and adopt the resolution adopting the Order of Collection for the 2001 Tax Year. All voted in favor and the motion carried.

ANIMAL SHELTER STUDY

The Board was given a copy of an Animal Shelter Relocation Feasibility Study prepared by Gary Tweed, County Engineer. Mr. Tweed reviewed the study with the Board.

Staff recommended the relocation of the existing Animal Shelter to the former Crosby Property adjoining the Solid Waste Facility and current Shelter. They recommended the Board authorize staff to begin the search for an architect for this project. A recommendation of an architect will be presented to the Board at a future meeting.

Mr. Tweed reminded the Board that last year we acquired property adjacent to the solid waste facility on Stoney Mountain Road. Staff started looking at some options of relocating the animal shelter to that property. They also looked at relocating the barn that was on the Trace property down to this area. In evaluating the barn, it was found that it was not a metal building but a Morton building which is of frame construction and the cost to relocate that facility would be such that it wasn=t feasible to do that. Morton Builders have done several animal shelter projects. Tom Bridges, Brenda Miller, Robert Smith and Gary Tweed visited Macon County to look at one of their projects. The Board reviewed sketches of the facility located in Macon County. Staff recommends using the house on the property as office space and to go in behind the house with a pre-engineered kennel operation. He presented that concept with rough numbers he prepared. It was suggested that we acquire the services of an architect to put together bid packages, etc. for Henderson County. They requested Board authorization to seek the services of an architect to assist us in this project.

Mr. Tweed explained that the property in question is very close to where the existing animal shelter is located today. They would only have to relocate the building about 300 - 400 feet from its current location. It would sit adjacent to the prison, the school bus garage, and our landfill. The current building is likely sitting atop solid waste and would probably be torn down. There have been methane gas problems in the building. It might be utilized for some storage for landfill equipment.

Mr. Tweed stated that the current animal shelter building is fairly old, it was built in the 60's. It is located right against the landfill. The drainage in the kennel area is a problem. There is very little storage area. They have limited office space. There are a lot of limitations to the current operation. The access is now through the main gate into the landfill. By relocating to the other property we can set up a separate access and entrance so that will no longer be an issue. There was some discussion regarding the need for a rezoning change. The current kennel has 24 runs, the new plan was 30. There would be a slight increase but basically it is just a replacement of the current facility with growth in office facilities. The site would be conducive to future expansion, if needed.

Tom Bridges, Public Health Director, stated that there have been discussions for a new animal shelter for the past ten years. He also stated that 20-30% of the animals at the shelter are adopted. The new site would allow for growth as our county continues to grow and the need arises.

Robert Smith explained that the current animal shelter is in bad shape. They continually have plumbing problems. They have an exterminator but have had a serious problem with rats. They continue to have a problem with roaches. The concrete is cracking in lots of places. The fencing has to be continually replaced but keeps rusting out. The roof leaks. The walls are cracked and have to be continually painted. They have tried the last few years to patch without spending a lot of money. He felt that the new location is ideal.

Marilyn Gordon explained that the Board of Health is in favor of this project and anxious for this project to take place.

David Nicholson explained that at this point staff was only requesting approval to begin talking to some architects. We need some design assistance. We have reimbursements (last year=s) in this year=s budget as a 2001-2002 revenue. He felt some of those funds could be used toward this project. He does not think we should move ahead on building and funding the animal shelter, we still need to wait to see what=s happening with the state budget before we make a decision. During the budget process, the Board put some monies aside in contingencies for this project. Commissioner Ward wanted the record to reflect that no dollar figure has been set for this project as yet.

Commissioner Gordon felt it was important to stress that this proposal includes using an existing building for the offices and to utilize our county maintenance personnel for the remodeling. This will be a good cost savings over a totally new project. A new animal shelter would also be much more efficient than the current shelter.

Action

Commissioner Gordon made the motion that the Board approve the development of a proposal for architects for the design of an animal shelter facility. All voted in favor and the motion carried.

INFORMAL PUBLIC COMMENTS

There were none.

PRESENTATION OF ANNUAL REPORT

The County Manager, David Nicholson, presented the Annual Report on the administrative activities of County government for Fiscal Year 2000-2001.

Henderson County won a national award with last year=s annual report so it was decided not to make any major changes in the format of the report. By law, the County Manager must provide the Commissioners an update on some of the administrative activities of county government on an annual basis. He distributed copies of the report to the Board. It quickly addresses some of the activities that county government are involved in on a departmental basis. It highlights awards our departments or individuals have received during the year. It is a budget document, having a breakdown of our revenues and expenditures. It contains a listing of phone numbers for our departments. It explains how to contact a Commissioner and it plugs our cable program. He thanked Chris Coulson for her work on the annual report and thanked Travel and Tourism for the use of one of their pictures for the front cover.

UPDATE ON PENDING ISSUES

This is an effort to keep the lines of communication open. It gives the Chairman an opportunity to bring the Board up to date on issues that occur between meetings. It is also the time to ask for direction so that the Board can develop a public position on current and upcoming topics.

This is also an opportunity for Commissioners to report on related committee work and assignments.

The topics for discussion at this meeting were:

Selection Process - County Assessor

Our County Assessor resigned a month to six weeks ago. We=ve started the process of trying to locate a new Assessor. Mr. Nicholson stated that we advertised for the position in July, advertising on a state-wide basis as well as using the listserve for Tax Assessors across the State of North Carolina. Mr. Nicholson stated that he has not started his review of the applications yet. We have gotten a number of applications but the job ad has not closed yet. He asked for direction on how the Board wished to be involved in the selection process.

Some of the Commissioners only wanted to see a selected number of most qualified applications, while others felt they wanted to review each and every application submitted. After the Commissioners review the applications they will give their top five or ten choices to the Chairman and a selection process will evolve. Then the Board wished to use a review committee of upper management (the County Manager and the County Attorney) and a couple of Commissioners to interview the top selected applicants. Chairman Moyer and Commissioner (former Chairman) Hawkins were chosen as the two Commissioners to be part of the review committee. Any other Commissioner(s) who may want to sit in on an interview would be welcome to do so.

There was much discussion.

When it comes down to the final selection, the Board can discuss them in closed session because they will be talking about individual names and applications.

Other County Positions

Mr. Nicholson informed the Board that we still have a number of positions frozen, at least until the State budget is adopted so we know more regarding our reimbursements. He stated that he is not releasing the positions but rather dealing with them on a case by case basis.

He is currently in the selection process for the Human Resource Director, a position he feels needs to be filled because it serves all county departments.

American Freightways water line

Chairman Moyer wanted to bring the Board up to date on the issue of the waterline for American Freightways. This issue has been in the news a lot lately.

Chairman Moyer distributed a resolution that was adopted unanimously by the Asheville City Council at last nights meeting.

Over the last several days much has happened. The end of last week we started to see an indication of a greater willingness to work together to try to solve some of these issues. Yesterday morning there was a meeting of the Authority Policies & Priorities Committee to discuss Henderson County=s water policies which we have been working on for some time, and our rate structure, both of which needed to be adopted by the Authority Board. The Authority Board had delegated it to the Policies & Priorities Committee for a recommendation. Chairman Moyer, Angela Beeker and Gary Tweed were at that meeting held yesterday. All the issues were resolved with respect to the water policies and the Policies & Priorities Committee recommended adoption to the full Board and also approved our rates and recommended adoption of the rates. At last night=s Asheville City Council meeting several hours were spent on ETJ discussions around the city of Asheville. They finally voted unanimously and adopted the resolution Chairman Moyer just distributed.

Chairman Moyer stated that his reading of the adopted resolution is that the majority of the members of Asheville City Council would like to get past this issue and would like to work with Henderson County on resolving these issues and get back to a more coordinated approach and continue to disagree on the issue. Mayor Sitnick had several comments to make, none of which were positive or constructive according to Chairman Moyer, concerning this regional waterline issue. Chairman Moyer stated that going back to the while City Council there was some recognition that they had to show respect for the current agreement if we are going to proceed to have any kind of meaningful negotiations. He thinks there are several vocal members on the City Council that feel that this agreement is not fair to the people of Asheville. This morning there was a Water Authority Board meeting at 8 a.m. They approved Henderson County=s policies and practices. They approved our rates. They directed the line be installed immediately and the City said they would be out there today to get this line in as quickly as possible to American Freightways. Chairman Moyer and Commissioner Gordon have been authorized to meet to proceed to negotiate with representatives from Asheville City Council and the Water Authority.

Chairman Moyer thanked Angela Beeker for her speedy revisions to the practices from yesterday=s meeting. They were distributed and approved.

Angela Beeker distributed those same revised policies to the Board of Commissioners and recommended the Board formally adopt the changes at this time.

Chairman Moyer made the motion to approve the water policies in the form distributed today. (Copy attached) All voted in favor and the motion carried.

Ms. Beeker explained that since the Board adopted the rates, the Authority has enacted a $500 tap fee for a 12" tap and she asked the Board to amend the policy of both Henderson County and Cane Creek to do the same thing to our rates.

Chairman Moyer made the motion to adopt the revised rate schedule with one change Ms. Beeker recommended above. All voted in favor and the motion carried.

Chairman Moyer called a brief technical break to change tapes.

Chairman Moyer stated that with American Freightways, they are a company that has over a $2,000,000 investment sitting on a piece of property and as of this morning they did not know whether they would have water. He stated that the Board appreciates the patience of American Freightways and was sorry for the inconvenience caused them by this issue. He stated that he was confident that by the end of this week we would have water to them from the regional water line.

Chairman Moyer also thanked Gary Tweed and Jim Erwin for their involvement on this issue.

PUBLIC HEARING - To Consider Text Amendments to the Zoning Ordinance(Henderson County Code Chapter 200)

Chairman Moyer made the motion for the Board to go into public hearing with respect to considering text amendments to the Zoning Ordinance. All voted in favor and the motion carried.

Karen Smith reminded the Board that on July 25, 2001, the Board of Commissioners scheduled a public hearing for August 15, 2001 at 11:00 a.m. in order to consider certain text amendments to the Henderson County Zoning Ordinance (Code Chapter 200) largely related to the recently adopted Open Use Zoning. Those proposed amendments were reviewed which involved amendments to the following sections of the Zoning Ordinance: Zoning Board of Adjustment (S 200-65), Temporary Use (S 200-57), Expansion and Alteration of Certain Uses in the Open Use District (S 200-32.1(H), and Subsequent Events (S 200-32.1(I).

The public hearing was advertised in the Times-News on August 1, 2001 and August 8, 2001.

In anticipation of the public hearing, the Henderson County Planning Board considered the proposed amendments on July 31, 2001, at which time the Board unanimously approved forwarding a favorable recommendation as to all of the proposed amendments.

The Proposed Amendments were as follows:

Replace Current Provision S 200-65 with the following:

S 200-65 Establishment of Zoning Board of Adjustment

A Zoning Board of Adjustment is hereby established. Said Board shall consist of five regular members who shall be citizens of the County of Henderson and shall be appointed by the Board of County Commissioners of Henderson County for overlapping terms of three years. Said Board shall also consist of as many alternate members as the Board of County Commissioners deems appropriate who shall be citizens of the County of Henderson and who shall also serve overlapping three-year terms. Alternate members shall serve in the absence of any regular member and, while serving, shall have and exercise all the powers and duties of a regular member of the Zoning Board of Adjustment. The Board of County Commissioners may, by resolution duly adopted, establish guidelines for appointment of regular and/or alternate members, including, but not limited to, the establishment of representative districts for Zoning Board of Adjustment membership. Initial appointment of regular members shall be as follows: one member for a term of three years, two members for terms of two years, and two members for terms of one year. Initial appointment for alternate members shall be staggered in a like manner. Any vacancy in the membership shall be filled for the unexpired term in the same manner as the initial appointment. Members shall serve without pay but may be reimbursed for any expenses incurred while representing the Board.

Add Subparagraphs D and E to S 200-57

S 200-57 Temporary Uses.

4. Except as provided in Section 200-57(E), no temporary use permit may be granted in the OU District for any regulated use except for the following uses: (1) asphalt plants, (2) concrete plants, and (3) chip mills. In such instances the Zoning Board of Adjustment may impose as a condition of the temporary use permit any specific site standards listed for the regulated use necessary to make the temporary use comply with the general site standards listed for special use permits.

5. Isolated racing events, not otherwise allowed under a valid zoning permit, may be conducted only upon the issuance of a temporary use permit in accordance with this subsection and subject to the restrictions and limitations contained within this subsection:

1. Temporary use permits may not be issued for more than 2 racing events per calendar year for any one location or individual or entity.

2. Temporary use permits for racing events shall be limited in duration to a 24 hour period.

3. Temporary use permits for racing events shall not be issued for locations that would violate the separation requirements for motor sports facilities contained within the applicable zoning district, if any.

4. The Zoning Board of Adjustment should consider the following factors in evaluating the application:

1. type and size of the proposed event;

2. size of the parcel on which the event will be conducted;

3. time and duration of the event;

4. other activities in the specified geographic area at the same time as the proposed event that might be disturbed by the proposed event;

5. residential density in the proposed location;

6. effect of the racing event on the residential areas;

7. economic benefit to the community, any economic hardship on the applicant if the permit is denied or on others if it is allowed;

8. previous violations of this chapter by the applicant;

9. any other relevant factor.

22. The Zoning Board of Adjustment may impose as a condition of the temporary use permit any specific site standards listed for motor sports facilities necessary to make the temporary use comply with the general site standards listed for special use permits.

Revise S 200-32.1(H) and (I) as indicated below:

S 200-32.1

H(1)(b) Delete the word paragraph and replace it with exception. Add Apursuant to the exception contained hereinabove, or (3) such expansion results in the total size of the structures or areas devoted to the principal use being expanded by more than ten percent (10%).

H(3)(a) Delete (H)(A)(1) and replace it with (H)(1)(a).

H(3)(b) Delete did not meet and replace it with would not have met.

Add Aor the use would have met the definition to one of the uses listed in Section 200-32.1(F) when constructed or established@.

Delete (H)(A)(2) and replace it with (H)(1)(b).

H(3)(c) Delete (C) and replace it with (3).

Delete (H)(A)(1) and replace it with (H)(1)(a).

Delete (H)(A)(2) and replace it with (H)(1)(b).

I Add Aor a use for which a special use permit was not required when established@.

Public Input

There was none.

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

Commissioner Ward made the motion that the Board adopt the proposed amendments to the Zoning Ordinance as presented. All voted in favor and the motion carried.

ZONING ORDINANCE REWRITE

Karen Smith introduced to the Board the new Zoning Administrator, Daniel Gurley, who started with Henderson County Planning Department on Monday. He was in attendance to listen to this discussion today.

To continue the Board=s discussion of major issues in the draft of the new Zoning Ordinance, staff presented information on two such issues, the definition of Achurch@ and the treatment of Nursing and Convalescent Homes. At a workshop held on July 11, 2001 on the new Zoning Ordinance, the Board of Commissioners directed staff to work on modifications to the proposed definition of Achurch@ and to determine if Nursing and Convalescent homes could be added to other districts.

Definition of AChurch@ in the New Zoning Ordinance

At the July 11, 2001 workshop on the draft of the new Zoning Ordinance, the Board of Commissioners asked that staff draft some new language regarding the definition of Achurch.@ In particular, the Board wanted to make sure that churches and their activities as they currently exist in the County would be permitted but that commercial business activities associated with churches would be limited.

Angela Beeker explained that the definition of Achurch@ in the current Zoning Ordinance was as follows.

Church. A structure (or structures) and the parcel on which it is located, in/on which persons regularly assemble for religious worship. The term church shall not include day care, educational, recreational, thrift shop and other facilities designed for ministries incidental to the place of worship. Family life centers, church offices, regular worship (ASunday School@) classrooms and fellowship halls are considered part of a Achurch@ as defined herein.

She and Karen Smith have revised the proposed definition of Achurch@ based on the discussion by the Board of Commissioners at the July workshop and presented the following revised definition for consideration by the Board of Commissioners:

Church. A structure (or structures) and parcel(s) on which it is located, in/on which persons regularly assemble for religious worship. The term Achurch@ includes all facilities which are part of the church and their associated uses which are (1) traditionally operated or conducted by church congregations in furtherance of their mission, and (2) actually being operated or conducted by the church congregation in furtherance of its mission, including but not limited to family life centers, church offices, ASunday School@ classrooms, daycare, preschool, schools and fellowship halls. The term Achurch@ shall not include facilities and their associated uses which are: (1) operated by secular entities as for-profit ventures; (2) operated as a for-profit venture and are subject to the payment of federal income taxes; and/or (3) operated wholly or partially by independent third parties regardless of whether for-profit or not. Facilities and their associated uses not included in the term Achurch@ shall be regulated in the same manner as if not conducted on church premises.

Chairman Moyer stated that this definition is closer to what the Board wants than we were earlier but he asked the Board to take this definition and re-read and study it before taking action on it.

Some of the Commissioners felt this definition should be distributed in the community to get some input from Pastors of Churches in our area. There was much discussion.

Treatment of Nursing and Convalescent Homes in the New Zoning Ordinance.

At the July 11, 2001 workshop on the draft of the new Zoning Ordinance, the Board of Commissioners asked staff to look at whether Nursing and Convalescent Homes could be allowed in other districts and if so, in what manner (by right with standards, conditional use, special use, etc.). In reviewing the Table of Uses (Article IV, Table IV-1) in the draft, another use, Continued Care Retirement Communities, is treated identically to Nursing and Convalescent Homes, therefore staff included this use for consideration by the Board of Commissioners as well.

Definitions

According to the North American Industry Classification System (NAICS), which is the basis for the Table of Uses in the draft Zoning Ordinance, the following descriptions apply to the uses under discussion:

623110 Nursing Care Facilities

This industry comprises establishments primarily engaged in providing inpatient nursing and rehabilitative services. The care is generally provided for an extended period of time to individuals requiring nursing care. These establishments have a permanent core staff of registered or licensed practical nurses who, along with other staff, provide nursing and continuous personal care services. Illustrative Examples: Convalescent homes or convalescent hospitals (except psychiatric), homes for the elderly with nursing care, inpatient care hospices, nursing homes and rest homes with nursing care.

623311 Continuing Care Retirement Communities

This U.S. industry comprises establishments primarily engaged in providing a range of residential and personal care services with on-site nursing care facilities for (1) the elderly and other persons who are unable to fully care for themselves and/or (2) the elderly and other persons who do not desire to live independently. Individuals live in a variety of residential settings with meals, housekeeping, social, leisure, and other services available to assist residents in daily living. Assisted living facilities with on-site nursing care facilities are included in this industry.

Regulations in the Draft New Zoning Ordinance

In the draft of the new Zoning Ordinance, Nursing and Convalescent Homes are allowed by right in the OU district. Such uses require a Special Use Permit in the OI and the MU districts. In addition to the general standards that all Special Uses must satisfy, S 200-63D(19) contains one specific standard: that the minimum lot size for Nursing and Convalescent Homes be one (1) acre. Standards for parking, signage, landscaping, etc., are also applicable to Special Uses.

Similarly, Continuing Care Retirement Communities are allowed by right in the Open Use District and they are allowed with a Special Use Permit in the OI and the MU districts. Specific standards for Continuing Care Retirement Communities as Special Uses are as follows: (a) minimum lot size - one (1) acre; (b) no parking space or drive shall be located closer than twenty (20) feet to a residence not part of the community; (c) all facilities shall be solely for the use of residents and their guests.

Regulations in the Current Zoning Ordinance

The County=s current Zoning Ordinance allows Nursing Homes and other Extended Care Facilities by right in the Open Use District. They are allowed as a Special Use in the O&I district. The O&I district contains several specific standards that must be met, in addition to any general Special Use Permit requirements, as follows: (a) the structures are placed not less than 1000 feet from any property line; (b) parking areas are located not less than 30 feet from any property line; and (c) parking space requirements shall comply with the conditions in S 200-40, Off-street parking.

The current Zoning Ordinance also allows Nursing Homes and other Extended Care Facilities in the R-20, R-15, R-10, T-20, T-15, and RM-1 districts with a Special Use Permit for a Medical, Institutional Care Development (MICD). The MICD section of the Zoning Ordinance (S 200-37) contains a number of permitting requirements that are similar to the requirements for Planned Unit Developments.

Future Treatment of Nursing and Convalescent Homes and Continuing Care

Retirement Communities in the Draft New Zoning Ordinance

In reviewing both the current and draft Zoning Ordinances, it appears that some residential districts in the draft Zoning Ordinance could accommodate Nursing and Convalescent Homes and Continuing Care Retirement Communities.

At the July 11, 2001 workshop, Commissioner Gordon suggested that the availability of sewer might be one criterion for determining which districts were suitable for Nursing and Convalescent Homes. Staff agrees and also suggested that a public water system be available, for both fire protection as well as consumption uses. In the draft, the R-10 and R-6 (as now proposed instead of R-8) districts presume that both public water and sewer will be available. The R-20 district is expected to have some or all public services. The R-6 and R-10 districts in particular allow higher residential densities and Nursing and Convalescent Homes as well as Continuing Care Retirement Communities may be quite similar in the number of residents, appearance, etc., as apartment or other multifamily and mixed residential developments that are allowed by right in residential districts. Staff therefore proposed that the Board of Commissioners considers allowing Nursing and Convalescent Homes and Continuing Care Retirement Communities in the R-20, R-10, and R-6 zoning districts with a Special Use Permit. Staff also proposed that a set of specific standards be developed for such uses to reduce their impacts on the neighborhoods where they may be located, to protect them, if necessary, from other non-residential uses that may be allowed in residential districts and to facilitate the provision of emergency services. For example, the Commissioners may want to consider requiring that in residential districts, such facilities must have access to public roads, that they be served by public water, that they have a maximum number of rooms/patient occupancy or a maximum dwelling unit density based on the district in which they are established, that buildings have certain setbacks from the perimeter of the property, etc. If the Board of Commissioners decides to allow Nursing and Convalescent Homes and Continuing Care Retirement Communities in certain residential districts with a Special Use Permit and would like to consider some specific standards for such uses, staff will research, draft and present some proposed standards to the Board at a future meeting.

Staff considered whether to permit Nursing and Convalescent Homes and/or Continuing Care Retirement Communities in the proposed NB (Neighborhood Business) district in the draft. NB allows Adult Daycare Centers (with 9 or more clients) by right with Special Requirements, however it does not seem to allow any uses that would permit overnight stays by clients. Therefore, staff is not proposing the addition of Nursing and Convalescent Homes and/or Continuing Care Retirement Communities to the NB district at this time. In addition, staff does not think that such uses should be located in industrial districts or in the Highway Business district because of the greater possibility of conflicts between uses compared to some other districts.

Chairman Moyer stated that the Board was in agreement that these homes not be allowed in industrial district. But in some of the other districts if staff could come up with permitting them by right with standards and get away from the special uses, that was the Board=s preference. Much discussion followed.

Direction to Staff - Even in residential districts, the Board wants to look at this by right with standards. If it creates an administrative problem, then the Board would elect to use special use.

During the August 6, 2001 meeting, the Board of Commissioners discussed setting a date for a future workshop to discuss in more detail such major issues as the placement of manufactured homes on individual lots in all residential districts and the placement of manufactured home parks in certain districts. Such a workshop date has not yet been set.

HOWARD GAP ROAD - add on by Commissioner Messer

Commissioner Messer stated that he has been approached by Fletcher Police Department who have contacted the State Highway Patrol and the Henderson County Sheriff=s Department pertaining to the opening of the new Fletcher School which is located on Howard Gap Road. He was told that law enforcement will have a license check one hour in the morning and one hour in the afternoon for one week before the school is opened. The license check is more of an educational check to hand out brochures to get people in that area involved in safety and so forth in the area due to the location of the new school.

The date for opening Fletcher School is set for the Tuesday after Labor Day. This item will receive much attention.

IMPORTANT DATES

Request for Public Hearing - Road Names

The Board was requested to set a public hearing to assign road names as follows:

Renaming of current road names

Proposed Name Current Road Name

SUNRISE HILL LN PULLOVER LN

New Streets

DEER MEADOW LN

GRAND PEAK SPRINGS RD

TRY AND FIND IT LANE

Staff recommended that the Board set a public hearing on the above list of road names for September 10, 2001 at 7:00 p.m.

Chairman Moyer made the motion to set a public hearing on the list of names listed above for September 10 at 7:00 p.m. All voted in favor and the motion carried.

Chairman Moyer announced that because of the Labor Day Holiday, the Board meeting will not be September 3 but has been moved to September 10 at 5:30 p.m.

Zoning Ordinance Rewrite - Workshop

It was the consensus of the Board to set this workshop for Thursday, September 6 for 3:00 p.m., if that is agreeable with Ms. Cogburn (staff will check with her).

Commissioner Hawkins suggested that the Board schedule a joint meeting with the Board of Education to finish the school tour - for September 17 at 3:00 p.m. The Board agreed to this.

There was discussion regarding the need for a workshop on Facilities & Financing. This was set for September 21 for 12:00 noon to 2:00 p.m.

It was the consensus of the Board to add one additional item to the agenda at this time as follows;

CANE CREEK WATER AND SEWER DISTRICT

(please see American Freightways issue under Update on Pending Issues above)

Commissioner Hawkins made the motion for the Board to adjourn as Henderson County Board of Commissioners and convene as Cane Creek Water and Sewer District Board. All voted in favor and the motion carried.

Commissioner Gordon made the motion for the Board to go out of Cane Creek and reconvene as the Henderson County Board of Commissioners. All voted in favor and the motion carried.

CLOSED SESSION

Chairman Moyer made the motion for the Board to go into closed session as allowed pursuant to 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.

2.(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)(3) To consult with an attorney employed or retained by the pubic body in order to preserve the attorney-client privilege between the attorney and the public body, which privilege is here acknowledged, and to consider and give instructions to the attorney concerning the handling or settlement of the following lawsuit:

Village of Flat Rock v. Swing and Henderson County

00-CVS-1189

All voted in favor and the motion carried.

Commissioner Hawkins made the motion for the Board to go out of closed session. All voted in favor and the motion carried.

There being no further business to come before the Board, Chairman Moyer adjourned the meeting at approximately 12:50 p.m.

Attest:

Elizabeth W. Corn, Clerk to the Board

William L. Moyer, Chairman