MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON MARCH 20, 2002

The Board of Commissioners of the County of Henderson (the ACounty@) held a meeting in the County Administration Building, 100 North King Street, Hendersonville, North Carolina on March 20, 2002 at 9:00 a.m. The following Commissioners were:

Present: Chairman William L. Moyer, Vice-Chairman Marilyn Gordon, Donald G. Ward, Charles Messer, and Grady Hawkins.

Absent: None.

Also Present: Clerk to the Board Elizabeth W. Corn, County Manager David E. Nicholson, County Attorney Angela S. Beeker, Finance Director J. Carey McLelland, Public Information Officer Chris Coulson, County Engineer Gary Tweed, Planning Director Karen Smith, Assistant to the Manager Selena Coffey, and Assistant County Attorney Jennifer Jackson. [Deputy Clerk\ Volunteer Coordinator Amy Brantley was present through Nominations].

WELCOME\CALL TO ORDER

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

PLEDGE OF ALLEGIANCE

Commissioner Marilyn Gordon led the Pledge of Allegiance to the American Flag.

INVOCATION

Rev. Gus Martschink of the Pardee Hospital Chaplaincy Program gave the invocation.

SPECIAL RECOGNITION FOR BOY SCOUTS TROOP

Chairman Moyer welcomed and recognized two Boy Scouts from Troop 701 in Brevard.

DISCUSSION/ADJUSTMENT OF AGENDA

Chairman Moyer added an item under Closed Session relating to expansion of industries. Under Discussion Items, he added Item A, Tax Exempt Properties in the County. Some changes in the law that have taken place recently impact tax exempt properties in the County.

Commissioner Ward requested an update from the County Manager on the EMS sub-station issue and Park Ridge Hospital. Chairman Moyer added that item to Staff Reports, Item C, Update to Pending Issues, Number 4. When the Board received that item on the agenda, number 4 was moved to the first item to accommodate Mr. Herman Davis who was present to answer questions about that issue.

Commissioner Ward informed the Board that he was appointed to the Historic Seventh Avenue District Committee.

Commissioner Ward wanted an update on the Bike Bash issue. Chairman Moyer added that item as number 5 to Update on Pending Issues.

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

CONSENT AGENDA

Chairman Moyer made a motion to approve the Consent Agenda as presented. All voted in favor and the motion carried.

The Consent Agenda consisted of the following:

Correction to Borg-Warner Economic Incentives Agreement

The Board was requested to approve the minor corrections to Paragraphs 10, 11 and 14 of the Borg-Warner Economic Incentives Agreement. A draft of this agreement is attached as part of these minutes.

Tax Collector=s Report

Tax Collector Terry F. Lyda had submitted the tax report dated March 18, 2002. Deputy Tax Collector Darlene B. Burgess presented the report on the status of delinquent tax collections dated March 8, 2002.

Tax Releases

Sixty tax releases were presented for the Board=s approval.

Tax Refunds

Twenty-three tax refunds were presented for the Board=s approval.

Approval of Closed Session Minutes

The Board was requested to adopt the following motion:

Motion: The following closed session minutes are hereby approved and shall be deemed sealed as provided by Section 11-6 of the Henderson County Code:

1. Minutes for the closed sessions held on December 19, 2001, February 4, 2002 and February 12, 2002 as presented and revised during the closed session of March 11, 2002. The Clerk is authorized to correct any typographical errors discovered subsequent to the March 11, 2002 closed session.

NOMINATIONS

Notification of Vacancies

Chairman Moyer advised the Board of these vacancies:

1. Zoning Board of Adjustment, Fletcher - 1 vacancy

2. Planning Board, Henderson County - 3 vacancies due to expiring terms

Commissioner Ward recommended the three vacancies for the Planning Board, as well as the one vacancy for position 2 due to resignation under nominations, be rolled to the next Commissioner=s meeting to allow the Board to vote on four vacancies. The Board was in agreement to do that. Chairman Moyer stated that nomination 8, Planning Board, Henderson County, one vacancy would be rolled to the next meeting along with the three vacancies.

1. Equalization and Review - 2 vacancies-Positions 7 and 8

Commissioner Hawkins nominated Jon Laughter. Ms. Brantley advised the Board that Mr. Laughter was currently serving on two boards, the Board of Health and the Industrial Facilities Pollution Control. Chairman Moyer stated that in the past the Board, when in agreement to do so, had made such appointments and gave the nominee an option as to which Board to resign from. The Board was again in agreement to permit Mr. Laughter to do that. Commissioner Hawkins made a motion to suspend the rules and appoint Mr. Laughter to the Equalization and Review Board. All voted in favor and the motion carried.

One vacancy was rolled to the next meeting.

2. Juvenile Crime Prevention Council - 3 vacancies

Positions 4 and 10 were due to resignations. Position # 26 was due to Legislative change.

There were no nominations so these vacancies were rolled to the next meeting.

3. Henderson County Board of Health - 2 vacancies

Positions 3 and 5 were due to expiring terms. There were no nominations so these vacancies were rolled to the next meeting.

4. Nursing/Adult Care Home Community Advisory Committee - 5 vacancies

Positions 2, 3, 12, 13, and 18-Terms were due to expire in 2002. There were no nominations so these vacancies were rolled to the next meeting.

5. Western Carolina Community Action - 1 vacancy

Position 2 was due to resignation. There were no nominations so this vacancy was rolled to the next meeting.

6. Community Child Protection Team - 1 vacancy

Position 4 was due to resignation. There were no nominations so this vacancy was rolled to the next meeting.

7. Solid Waste Advisory Committee - 3 vacancies

Positions 2, 5, 9 were due to expiring terms. Commissioner Hawkins nominated Frank Drake, Ms. Emily Anderson and Ms. Linda Fretz for reappointment. Chairman Moyer made a motion to suspend the rules and elect those three by acclamation. All voted in favor and the motion carried.

8. Planning Board, Henderson County - 1 vacancy

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

9. Zoning Board of Adjustment, Hendersonville City - 1 vacancy

There were no nominations so this vacancy was rolled to the next meeting.

UPDATE ON EMS SUB-STATION

County Manager David E. Nicholson reminded the Board that several meetings ago it considered a proposal from Pardee Hospital and from Park Ridge Hospital to assist the County with building a sub-station in the southeastern portion of the community somewhere around Upward Road. When the proposal was presented to the Board for its consideration, notification had been received from Park Ridge Hospital stating they supported the proposal submitted by Pardee Hospital and did not wish to be in competition with it. Later a letter was received from Bob Goodwin, the CEO of Pardee Hospital, indicating that Pardee was in the process of reevaluating its proposal to assist with the EMS substation. Pardee=s proposal was on a piece of property that was in conjunction with the Blue Ridge Fire and Rescue Department. Pardee was not prepared at this point and time to follow through with their proposal they had submitted to the Board. Pardee did indicate they were looking at other options and may be in a position to come back to the Board with another proposal in the future. Mr. Nicholson learned from Sam Laughter of the County Inspections Department that Park Ridge was in the plan review process and had not actually pulled the building permit. Herman Davis of Park Ridge Hospital was present. Mr. Nicholson had spoken with Mr. Davis prior to this meeting about their proposal. Mr. Nicholson asked the Board for further direction since Pardee had pulled their proposal from consideration.

Commissioner Hawkins, who sits on the Hospital Board of Directors, advised the Board that Pardee Hospital is certainly still interested in the EMS substation and is reevaluating a more comprehensive package that includes substations in some other areas that they wanted to look at. That was the reason Pardee Hospital wanted to reevaluate the earlier proposal they had submitted. Commissioner Hawkins commented other issues the Board would have to consider relevant to the substations would be when or if the County is going to man the substation with personnel and equipment, if the Park Ridge proposal is enough money to equip the building because the last time an EMS substation was built the amount was short of what was required, and the cost of operating the building and utilities. Commissioner Hawkins suggested the Board look at whatever offers are available when the Board has its facilities workshop on April 4^{th and have that as an item update.}

^{Chairman Moyer commented one of the goals the Board had set was to get the EMS response times down in that area. The Board was ready to move on this issue, but unfortunately the combination of the State budget crisis and this reevaluation by Pardee Hospital caused the Board to reevaluate this issue. However, Chairman Moyer thought the Board should bring this issue to the forefront and make a decision in fairness to Park Ridge Hospital who had submitted a very attractive offer and if they were still willing to go forward, the Board should take a serious look at that in light of the budget considerations and see whether that was something the Board wanted to do.}

^{Commissioner Ward agreed with Chairman Moyer=s suggestion. He stated that Park Ridge Hospital had always been an outstanding member of the community to public government as well as the citizens and he thought the Board should see what the Park Ridge Hospital offer was, if Mr. Herman Davis was ready to speak on behalf of Park Ridge Hospital. As Commissioner Hawkins had already stated, the Board would need those numbers when it looked at the budget and for facilities especially to see what the total picture was, what the cost to the County was going to be, the manning of the people, if the County was going to do a floating crew, or man it full-time or the total members that relates to the budget at the time. Without a proposal on the table, Commissioner Ward stated it would be hard to get that total picture.}

^{Chairman Moyer asked Mr. Herman Davis if he wanted to address that subject. Mr. Herman Davis stated that Park Ridge Hospital stood by their original proposal for assistance with the EMS substation. Mr. Davis pleaded with the Board not to play games with Park Ridge Hospital anymore. Park Ridge Hospital was ready to move forward on its proposal when they received word of Pardee Hospital=s proposal. Park Ridge Hospital was ready to proceed if the Board was ready. Chairman Moyer thanked Mr. Davis and directed Mr. Nicholson to look at accepting the Park Ridge Hospital proposal and look at all expenses associated with the site they were proposing and the amount of money they were willing to commit to it, what would be required and find out from EMS Director Terry Layne what the staffing requirements would be. The Board would need to know what the total costs would be. Chairman Moyer felt the Board could consider this at the April 1 meeting rather than having to call a special-called meeting.}

^{Mr. Nicholson asked for the Board=s permission to allow him to follow up with Mr. Goodwin of Pardee Hospital as to where they are on this and to make sure he has a clear understanding of Pardee Hospital=s intent on this issue.}

^{EXPANSION OF THE CANE CREEK DISTRICT}

^{Chairman Moyer reminded the Board it had several discussions on this matter in the past and staff requested further direction from the Board on this issue.}

^{Gary Tweed, County Engineer, presented an update. Mr. Tweed reminded the Board that at its Sewer Workshop on February 12, 2002, staff was directed to develop a map showing the proposed expansion of the Cane Creek Water and Sewer District boundary to the south matching the District=s southern boundary with the northern boundary of the Hendersonville Mud Creek Sewer Service area. The new boundary would be effective on July 1, 2002 and the old Mud Creek Water and Sewer District Boundary would be dissolved.}

^{Staff sought direction from the Board on this proposed boundary expansion of the Cane Creek Water and Sewer District before proceeding with the public notice on the expansion.}

^{Commissioner Gordon, who sits as Chair of the Cane Creek Water and Sewer Advisory Board, advised the Board that the Advisory Board had not had an opportunity to consider this matter because the March meeting of the Advisory Board had been canceled. However, the Advisory Board had been made aware of the proposed expansion and was in support of it. The Advisory Board would not be given an opportunity to review this proposal before adoption by the Board of Commissioners due to the legal pending date so staff opted to bring it directly to the Board.}

^{Mr. Tweed advised the Board that he did meet with the Mud Creek Advisory Committee and they were comfortable with the expansion proposal.}

^{Commissioner Hawkins noted that in the Cane Creek Water and Sewer District the general flow is toward the French Broad River and the rationale for dividing the Mud Creek District and Cane Creek District was to take advantage of the mountain ridge that runs through there. Mr. Tweed commented that the City of Hendersonville=s Wastewater Treatment Plant was located in this area. All the area in blue on the map flows to that point. Everything else flows toward the north to the Cane Creek Water District. The reason the County was looking at this option was to try to set the sewer districts on a geographic basis.}

^{Mr. Nicholson asked Mr. Tweed to discuss how this expansion would affect the pump station serving the Mountain Home Industrial Park and any other customers that might be along the area. Mr. Tweed stated that we have three existing systems that are currently in the Mud Creek Sewer District, two of which pump back to the City of Hendersonville, one of which is pumping into Cane Creek. The Mountain Home Industrial Park has a pump station that pumps back along US 25 back south approximately three miles to the Hendersonville system. As part of the County=s agreement with Hendersonville, we reserve the right to take that flow from that industrial park back to the north if we ever expand our system in that area. One of the other interceptor sewers would end in the Mountain Home Industrial Park area. So eventually if the County can obtain funding and so forth and can get those interceptors done, we can eliminate some of these pump stations that we have been operating in the system and do things by gravity.}

^{Chairman Moyer made a motion to approve the boundaries as presented on the map. There was no further discussion. All voted in favor and the motion carried.}

^{G.I.S. UPDATE}

^{Chairman Moyer informed the Board that staff would update the Board on the progress of the conversion project for our G.I.S. system and introduce the new G.I.S. website and the new format for the County=s homepage.}

^{Ms. Kelly Laughton, Information Technology Director, with the assistance of Dan Madding, G.I.S. Coordinator, presented the update. Ms. Laughton reminded the Board the G.I.S. project began at the request of the Commissioners under the direction of the County Manager with an objective to create a countywide geographic information system to serve as an information resource to benefit Henderson County departments, local municipalities and our community. A project steering committee was formed to oversee the development of this countywide geographic information system. Last fall, the steering committee delivered a presentation to the Commissioners outlining the project objective. Ms. Laughton gave the Commissioners an update on the completion of this project.}

^{Ms. Laughton reminded the Board that in the previous presentation, staff gave an overview of the type of information that is stored in a geographic information system or what is referred to as G.I.S. A geographic information system, or G.I.S., is a collection of information related to the geography of our community and the world around us. Geographic information describes the land within Henderson County and provides information about such things as parcels, municipal boundaries, major roads and streets, rivers, streams or soil types. In a G.I.S., information is also stored about property ownership, zoning, fire districts, voting precincts, school districts and many other attributes that describe the land within and around Henderson County.}

^{The information in the Geographic Information System is represented as a graphic image or picture as opposed to text. The old saying that a picture is worth a thousand words is very true when it comes to geographic information, hence the value of things in the form of a map. This information is stored in what is referred to as data layers and presented in the form of maps which can be viewed in different ways to help us better understand the relationship between these different types of information. A countywide G.I.S system is comprised of computer software, computer hardware and data along with the people who develop, analyze and create graphical representations of this data in the form of maps.}

^{Henderson County=s G.I.S. represents an information resource to facilitate decision-making. It is a resource designed to benefit County departments, local municipalities and our community. The G.I.S. staff and the project steering committee worked closely together and with all other County departments to develop information of value to Henderson County. They worked with local municipalities to share data and plans to develop future data layers to further enhance this countywide G.I.S.}

^{The G.I.S. staff has completed the implementation of the County=s new G.I.S. software. The old outdated system was replaced with new software acquired at the beginning of this project. This software has been installed, the users have been trained and department=s are already working to develop new data layers to assist them in delivering services and providing information to the public. The G.I.S. staff has converted all twenty-seven data layers from the original G.I.S. application and added many new layers to the system so that now there are a total of more than sixty data layers of information to share with Henderson County. A user-friendly, interactive G.I.S. was developed in this project to serve County departments, municipalities and the community.}

^{This G.I.S. system will be delivered to the community and G.I.S. users through a new interactive G.I.S. on-line website. The County G.I.S. will be available via the Internet. Ms. Laughton and I.T. staff revealed the new website and demonstrated how it functions. Also staff showed a preview of the new County homepage which will be available via the Internet at the same time as the G.I.S. website is delivered. Both new G.I.S. websites will be launched during County Government Week, April 8th through April 12th.}

^{Mr. Nicholson explained to the Board that this G.I.S. gives the capability of looking at different things that are happening in the community, i.e. roadways, utilities, large parcels of land, which will aid in analyzing the growth in the community. The Planning Department has already utilized the new system to accommodate them in the Comprehensive Plan and it will be a tremendous asset to them in future planning issues. Another utilization of the new system would be to provide information to the Department of Transportation for the Thoroughfare Plan. Other agencies, such as Emergency Management and Emergency Services, will also be utilizing this information to aid in more efficient delivery of services. The school systems will utilize this information in planning their transportation needs. The uses of this information are innumerable.}

^{Mr. Nicholson further reported this project was completed on time and under budget and was a cooperative effort between the I.T. staff, Assessor Eddie Mitchum, other County department heads and the City of Hendersonville.}

^{Chairman Moyer asked Assessor Eddie Mitchum to give an update on the aerial photos to be incorporated into the G.I.S. Mr. Mitchum advised the Board that approximately half of the aerial photography would be available by the middle of the year. As the product is delivered, it will be available on the Internet rather than wait for all of it to be completed at the end of the year.}

^{Chairman Moyer commended the I.T. staff on its efforts and accomplishments on this new G.I.S. system. He suggested that instructions on how to use the new system be aired on the County Government Channel 11 to aid the community in becoming comfortable with this new system.}

^{UPDATE ON PENDING ISSUES}

^{House Bill 984-Landscaper Legislation}

^{Commissioner Gordon reminded the Board that in September 2001, they discussed the House Bill #984 dealing with licensing requirements with landscaping contractors. At that time, the Commissioners sent a letter to the State Representatives and Senators asking for further review on that bill and expressed the Board=s concern on that issue. Since that time, the Commissioners thought the bill had been killed, but it is now back on the table in a slightly different form but essentially with the same results. There is a local group that has been very active in opposing this bill and had asked the Commissioners to revisit the issue. To make other counties in the State aware, these individuals feel like there needs to be state-wide attention brought to the bill rather than just a few counties in Western North Carolina trying to get the message out. Commissioner Gordon requested the Board send a letter to all county governments in the State asking them to review this bill and make their concerns known on this issue to their legislators.}

^{Commissioner Ward stated that he had attended several meetings with local landscapers on this issue. He felt it was a bureaucratic bill to raise money on the backs of the landscapers in the state and to drive a lot of the small landscapers out of business. In this area alone, there will be about 50 landscapers that it will affect. The smaller landscapers will have no choice but to quit because the bill mandates two years of continuing education. So the landscapers will have to return to school to get re-educated. Some of these landscapers have been in business for thirty years. He had spoken to several State Representatives who are not supporting the bill, but Commissioner Ward thought other counties should be informed about this bill because perhaps they=re not aware of the situation. Henderson County has a proactive group on this issue but other counties might not be as informed on this matter.}

^{Chairman Moyer too felt that the Commissioners should take the steps as recommended by Commissioners Gordon and Ward.}

^{Commissioner Messer echoed the concerns of the other Board members and supported the suggestions that this Board share this information with other counties throughout the state and make the State Representatives and Senators aware again that Henderson County is opposed to this bill.}

^{Chairman Moyer commented that a letter he received from Senator Bob Carpenter indicated that the Senator thought this bill was dead and he was very surprised when this issue was raised again.}

^{Commissioner Hawkins commented that this bill talks about authorizing the Board to increase fees. He felt this is a clear example of the financial wizards in Raleigh coming up with another way to have more government, more bureaucrats and yet he didn=t find anything in the bill that explains how this bill is going to benefit the citizens of North Carolina. He further stated that in fact it looked suspiciously like another political bureaucracy being generated because the Board is appointed by the Governor, the President Pro-Tem of the Senate, the Speaker of the House, the Commissioner of Agriculture, et al., and it was amazing to him how many ways they can come up with a civil penalty of $2,000 for watering your lawn if you don=t have a license and paid the fees. Commissioner Hawkins suggested that in addition to the Board=s sending a letter to the counties to also send another letter to our Representatives at the State, to the Governor and to all these people who are going to be part of the Committee and express the Board=s displeasure of having another level of bureaucracy added to an already cumbersome state government.}

^{Commissioner Gordon agreed with that approach. The last time, the Commissioners just issued the letter to the State Representatives for Henderson County and the Commissioners should let the other Representatives know that this Board shares the concern of the local landscapers.}

^{Commissioner Ward noted that this bill could possibly affect the young people of the community who wish to make some money in mowing lawns. Basically this law would be chopping off the arms of the working people in the County.}

^{Chairman Moyer stated that he learned at the NACo Conference in Washington that most of the Representatives and Senators, because of the volume of the mail and e-mails they receive, have programs for screening their incoming correspondence that identify the postal codes in their area and anything that=s not coming from their district or their people automatically gets shot out and never opened or looked at. A more effective way would be for the Board to send their requests to other Commission Boards to get them to influence their Representatives.}

^{Chairman Moyer stated there was a recommendation on the floor that this Board send a letter similar to what was sent before but broaden who gets that letter to include more Representatives and more people in Raleigh and that the Board also contact other Commissions in the form of a letter that they give attention to this because of the impact in their area. The Board was in agreement to move forward with those steps. Chairman Moyer and Commissioner Gordon had also attended some of the meetings of the local landscapers to hear their concerns.}

^{Commissioners Ward and Gordon wanted that to be in the form of a motion for the record. Commissioner Gordon made a motion that the Commissioners follow the steps as recommended in Chairman Moyer=s statement.}

^{Chairman Moyer suggested a resolution would be a more effective way to communicate with the other Board Commissions laying out the whereas=, the background, the importance of the issue, stating the Board=s opposition to this bill. He recommended the Commissioners direct staff to draft a resolution for the Board to send out to the other Commission Boards and ask them to take action on it.}

^{Commissioner Gordon amended the motion to make it a resolution rather than a letter.}

^{All voted in favor and that motion carried unanimously.}

^{WNC CAUCUS}

^{Chairman Moyer noted that the Commissioners had previously discussed some of the Caucus issues. Five subcommittees had been set up, one on Federal funding streams, state funding, boards/commissions, leadership development, legislative rules and regulations. He felt there was unanimous consent among the Commissioners to keep constant pressure on the State to let the Board=s interests be known. Otherwise, the State would continue to take advantage of the counties. So this Board would have to participate in this Caucus to get its concerns heard. The delegates were asked to indicate which committee that they would like to participate in. Most people signed up for either Federal funding or State funding. The Executive Committee was going to meet soon to determine who will be on each of the committees. The Committees will be open to people that are not delegates because obviously we need a lot of help in Raleigh and Washington.}

^{Mr. Nicholson noted that Chairman Moyer was elected as the Chairman of the State Funding Subcommittee of the WNC Caucus. Therefore, this Board would have good input and be able to follow those discussions and to track the progress. The Caucus provides a voice of twenty-six counties across the state.}

^{Chairman Moyer reminded the Board that one of the issues it decided to take on right away was the Board of Blue Cross and Blue Shield, although we don=t know whether we=ve been successful or not. But this Commission did get support of its candidate, Jim Maher, as put forth by Commissioner Hawkins.}

^{Commissioner Gordon stated it was important for the public to know the time commitment that Commissioner Moyer and Fletcher Councilman Jim Clayton have been willing to make in working on this new initiative and there would be a lot of travel involved and many meetings to make this work. She expressed her appreciation to them on their willingness to do this on behalf of all of us.}

^{UPDATE ON MENTAL HEALTH REFORM}

^{Mr. Nicholson reminded the Board that the last time he talked with the Board on this matter, he had several workshops that he was attending at the local and state level to get a better understanding of what=s happening with mental health reform across the state. It is moving at a snail=s pace but at some point in time, he was expecting it to take a giant leap forward if the State ever gets us the information they have promised since last December. As the Board was aware, Mr. Nicholson had been working with the County Managers from this area in trying to get a handle on this issue and trying to monitor what=s happening on it at a statewide level. The Managers started out being from the Trend area and the Blue Ridge area, with Trend being Henderson and Transylvania counties and the Blue Ridge area being Buncombe, Madison, Mitchell and Yancey counties. He reminded the Board that you have to have a minimum number of people, over 200,000 people, and a minimum of five counties to proceed with the developing of this new mental health reform program. After discussions with Polk County and Rutherford County who have a two county authority, they decided to join our planning process and so as of last week they have joined us at the table and have been very good participants in this discussion.}

^{The basic organizational structure of the Local Management Entity is fairly set and we know pretty much what we have to go through to develop the business plan. It is up to twenty-five boards of director members but half of those have to be from specialties that are outlined in the legislation. That does include the area directors from the area mental health authorities. After four meetings, this group is beginning to get into what that business plan requires. Mr. Nicholson reminded the Board that in October the Board would have to send a letter to the state indicating what Henderson County was looking at in mental health reform. At the meeting this week, they came up with a proposal to set up a comprehensive local planning process because the Board was concerned about getting as much local input as possible realizing that needed to be done on a county-by-county basis because the needs in Henderson County are different than those in Transylvania, Polk, or Rutherford County and certainly different than the northwest area of Mitchell and Yancey Counties. That group had put together an idea program that would eventually be brought to the Board to let them know this group wants to put together some local stakeholders. There are people that this is going to effect and a lot of those are agency groups. Henderson County is fortunate that we already have an organization who has taken on and looked at mental health across our community and has gathered some information and that is the Partnership for Health. Mr. Nicholson had spoken to their director on several occasions and that group which is basically some of the leading people from the health providers from our community meet on a regular basis so they=re willing to work with us to be the stakeholders group.}

^{There will be some community meetings to let the community know what=s going on with mental health and possibly some forums on certain issues associated with that. The most frustrating part of this whole discussion is the service issue of providing mental health services to our community. Last December, the State promised the target populations and the service standards but that hasn=t been issued yet. The legislation calls for in the state mental health plan an establishment of who are we going to serve in the state of North Carolina and they use the term targeted population. Mr. Nicholson and Commissioner Messer attended a mental health conference in Raleigh where the new Secretary of Health and Human Services said state money and Medicaid money in the future are only going to go to the severest challenged and the most in need. The goal in the process is to limit state funding in the programs and to also eliminate or reduce Medicaid funding. We had been waiting anxiously to see who those targeted populations are because the rumor on the street is ten to fifteen percent of the current population across the state will not be selected as target populations. Mr. Nicholson=s concern is those people are not leaving the community and they=ll still be here. So there needs to be a transition plan for those individuals to continue getting services somehow, someway in our community. They=re going to end up at the hospitals emergency rooms, at the jail, etc. They don=t disappear just because the State has said they were not going to serve them. The State is going to select and develop service standards which will dictate what those targeted populations are going to get. Again the rumor on the street is that those service standards will limit services going to the target populations with an emphasis to lower the state contribution to mental health which is substantial. Although this information was promised last December, it is now the middle of March and we still do not have it. It=s hard to start developing a comprehensive plan or how we=re going to serve our community in mental health when you don=t have this very important information.}

^{One of the requirements as part of the state mental health plan is to look at a consumer and family advisory committee. It is currently established in the law as a nine-member committee. At the last manager=s meeting, they said they would like to have more people at that table because it is not just local but rather across the whole proposed LME. So we were going to actually propose to the State that we be allowed to expand the committee above the nine members for at least the initial discussion to make sure that people are coming along. There is a real push to make sure there are people who are receiving services or are advocates for services at the table. For example, there has to be a man, woman or child from the mental health area, from the development disability area, and substance area. You could have a parent representing the child. This committee, which is across the whole area, basically will be monitoring the activities from an advocacy standpoint of people who are getting the services. That=s tough for us to come up with those type of names, so we=re going to ask the local authorities to help us come up with people who can serve on that committee once we finally get what the target populations are and the service standards in the process. We=re looking at two different things, bringing the stakeholders in Henderson County, not across the region, to the table as well as a consumer group who are people who are going to serve those services in the process. There is a new director of division of mental health who came on board in late February who has a background with the state of Michigan where they have gone through this process so he does bring a lot of expertise to this issue. As Mr. Nicholson gets more information from the State on this issue, he will update the Board.}

^{Chairman Moyer noted that he received a notice from the state that there is going to be some hearings with respect to this plan.}

^{The division of mental health is now taking the show on the road so local area authorities, county commissioners, managers etc. can have a little more information and knowledge on what=s happening. From talking with people at the state, Mr. Nicholson felt frustrated that we=re not farther long in this discussion than we are but they say we=re light years ahead of other people in the state of North Carolina by taking this on, gathering information, and meeting and talking. A lot of counties don=t even have an idea of what=s going on. There are some dates that could be changed, but not the October date to say what your intent is, but at this point in time, all the business plans are supposed to be submitted to the division of mental health in January of 2003. Then they=ll have only three days to review them all, comment upon them and get them back out to the organizations that are looking at this issue. There is also more discussion of phasing this whole process making it not all effective July 1st of 2003 but rather phasing in it over a several year process. There are going to be meetings to be held in Western North Carolina.}

^{BIKE BASH UPDATE}

^{Chairman Moyer reminded the Board it had taken a position that the proposed site in Etowah for the bike bash was not an appropriate site, but the Board was willing to work with the host of the event to try to find a more suitable site in Henderson County. The Board authorized Chairman Moyer to move in that direction. A meeting was set up with Mr. Myron to discuss this issue and its impact on Henderson County and other potential sites here but Mr. Myron had already zeroed in on another site in the Woodfin area. Therefore Mr. Myron saw no reason to meet with Henderson County officials. Based on recent articles in the local newspapers, the Woodfin site did not work out. Chairman Moyer directed Mr. Nicholson to call Mr. Myron again to see if he wanted to go ahead with a meeting with Chairman Moyer, Commissioner Messer and Mr. Nicholson, to see if anything could be done and whether he wanted to pursue other options in Henderson County. Mr. Myron replied that he has other sites of higher preference and again did not see a need to meet with Henderson County for the foreseeable future. Henderson County will not continue to seek meeting with Mr. Myron. If Mr. Myron at a later time wishes to explore another site in Henderson County and to discuss it with County officials, Chairman Moyer would be pleased to do that as the Board directed. But as of this date, Chairman Moyer intends to let the matter sit and see if he receives a response from Mr. Myron.}

^{Commissioner Ward noted that the director of the Western North Carolina Agriculture Center said that no one from the bike bash had been in contact with those officials to determine if the Ag. Center was available for the Fourth of July weekend for this event. Chairman Moyer also commented that the schedule of events for the Ag. Center does not show any events scheduled for that weekend. Mr. Myron had been quoted as saying that the Ag. Center was not available but that was not consistent with the schedule for the Ag. Center that was given to Chairman Moyer and Commissioner Hawkins. Commissioner Ward noted that the Ag. Center had accommodated the Honda Hoot which had a large number of motorcyclists and this Commission had never received any citizen complaints about the influx of motorcyclists during that event. Commissioner Ward felt the Ag. Center would be an ideal site based on the State requirements. Chairman Moyer intended to raise that issue with Mr. Myron when they met but since that meeting did not transpire, he had not raised that issue. Commissioner Ward commended the efforts of the Board in trying to find a suitable site for the event.}

^{INFORMAL PUBLIC COMMENTS}

^{1. Leon Allison-Mr. Allison thanked the Board for the resolution in opposition to the landscaping bill. Mr. Allison, a landscaping contractor, elaborated for the Board the composition of the State Board overseeing the landscaping bill. There are nine people sitting on the Board that makes all the decisions for all the licensed landscapers in North Carolina. The Board has the right to refuse renewal of the landscapers= license based upon what that Board thinks, or on moral character, etc. For example, if a licensed landscaper had a DUI charge or spotlighted a deer, that could be considered against good moral character and the Board could refuse renewal of that license. Mr. Allison would be grand fathered under this bill. Although this bill would be a windfall for his business, in good conscience he could not support it because it would put some of the smaller landscapers out of business. Mr. Allison commented that the landscapers that are opposing this bill on the continued education aspect would like to come up with a bill for the Senate and House in North Carolina that they have to go back to school each year, that they have to learn how to balance a budget and the citizens of Henderson County gets to vote on their good moral character before they can run for legislature again. Mr. Allison thanked the Commissioners for their efforts in opposing this landscaping bill. He stated there were only about three landscapers in Henderson County that were in support of this bill but the majority of the landscapers were opposed to it. This bill will not raise the quality of the landscaping, it will not raise the moral character, but it will eliminate competition and give the bigger landscaping companies more work. The intent of the bill is not to improve quality workmanship. Licensing does not make the person. The person makes their own self. Quality work will go along with the business. If you want to stay in business, you=ve got to do quality work and be forthright with all your customers. For these companies to succeed for thirty and forty years, they=ve done it on their own. License will not change the way they work. Mr. Allison again thanked the Board for the resolution in opposition to the landscaping bill.}

^{2. Eva Ritchey-Ms. Ritchey stated that our children are our future. We should be doing all we can for our children. One of the major things the community does for our children in the area of time and money spent is in education. However, we are not spending money in every place that it is needed now. Ms. Ritchey had made comments to the School Board and copied the Commissioners on her comments. She read portions of the letter noting needs within the School system that are not being met. Since educating our children is a cooperative effort of Commissioners, the School Board and all of the citizens, she wanted the Board to know about this. Ms. Ritchey was at the December School Board meeting to express her concern that students were not receiving an adequate and challenging instruction in science. The mediocre science scores of the students both here and across North Carolina indicate there is a need to re-evaluate the program. Any industrial society that ignores the need for highly skilled workers in science and math does so at its own peril. Never in the history of the world has there been a more critical need for discovery and innovation in the field of clean energy. Further, if Henderson County expects to attract high-tech industry, it will have to have a ready pool of high-tech workers. Yet the following weaknesses in our science programs indicate that we are not providing those keys for tomorrow. The middle school labs are inadequate and poorly stocked. Some of the chemicals at Rugby School are too old to be safely used and no hoods exist in the lab making certain experiments impossible. A class set of balance beams and microscopes are not available at Rugby and Hendersonville Middle School because so many of them need repair. At Hendersonville Middle School, there are only thirteen microscopes and five balance beams for eight teachers. With only four hundred dollars being given yearly to each science department for as many as eight hundred students, that=s fifty cents per student. There is not enough money to repair them. Ms. Ritchey noted that Eisenhower funds that are available to the School Board are not available for math and science and can only be used for staff development. Eisenhower funds can=t buy a single microscope. At each middle school only lab one is available to six or more science teachers. Teachers need the hardware, not just the ideas, for improving science curriculum. Hands-on science is what creates the spark that ignites mental fireworks. The only hands-on projects our teachers can afford on a regular basis involve bubbles, balloons and kite string. Many of the weaknesses in the science programs are related to lack of funding. It is the responsibility of the School Board and the County Commissioners to provide funds for a superior education of our children. Ms. Ritchey pleaded with the Commissioners to consider funding requests from the School Board to improve the science programs.}

^{TAX EXEMPT PROPERTIES-CAROLINA VILLAGE}

^{Chairman Moyer noted there was a change in the law last year with respect to continuing care and retirement centers that dealt with tax-exempt properties in the State and the County. It affected about fourteen to seventeen locations throughout the State, one of which is in Henderson County, Carolina Village.}

^{Ms. Beeker explained the changes in the law. The law allows for up to total exclusion from income taxes for what is called a qualified retirement facility. There are actually five factors that the retirement facility has to meet in order to qualify. First, the facility has to be tax exempt for income tax purposes. One way to do that is to be a non-profit entity. Second, all the revenues less operating and capital expenses must be applied to providing uncompensated goods and services to the elderly and to the local community, or applied to an endowment or a reserve for these purposes. The third is that their charter has to provide that upon dissolution, all of their assets would revert or be conveyed to an entity that is also a non-profit charitable entity. Fourth, they must have an active program to generate funds through one or more sources such as gifts, grants, trusts, bequests, etc. to assist them in finding funds to serve persons who might not be able to reside there without financial assistance. Lastly, they must meet at least one of the following conditions: they serve all residents without ability to pay; or at least five percent of their resident revenue, which is revenue paid by the residents, for the particular financial reporting period is provided in charity care to the residents, community benefits, or both. The five percent charity care is the one that has received the most attention in the news and in the media. Ms. Beeker advised the Board that the definition for charity care is un-reimbursed costs to the facility for providing health care, housing or other services to a resident who is uninsured, underinsured or otherwise unable to pay for all or part of the costs. If a retirement facility does not provide five percent of the charity care, they can get a partial exclusion. For example, if the facility provides one percent charity care, it could get a twenty percent reduction, two percent a forty percent reduction, three percent a sixty percent reduction, four percent of charity care would be an eighty percent reduction, and a five percent charity care would be a total exclusion from property taxes.}

^{Chairman Moyer stated that at the end of last year, Carolina Village made application showing that they met these various requirements and they were granted the tax-exempt status. The other issue is how Henderson County handles tax exempt facilities in the County. By law, what we are required to do is that twenty-five percent of them are supposed to be audited every year. So every fourth year, all the tax-exempt entities should be audited to make certain they are tax exempt in accordance with whatever the applicable law is to their status. With respect to Carolina Village being new and there being a lot of issues in the law that needs clarification, Chairman Moyer felt it would be very appropriate in the normal audit process that they be audited and examined to see if they are really meeting the criteria.}

^{Assessor Mitchum explained that on August 30, 2001, Carolina Village applied for a tax-exempt status. The application was approved. Carolina Village=s un-reimbursed health care far exceeds the threshold at twenty-nine percent. Mr. Mitchum has spoken with the Director of the North Carolina Department of Revenue about this issue and learned that when they worked on this bill, they had set the levels at such a rate that not everyone would get the exemption. Mr. Mitchum learned there are forty-plus facilities in North Carolina that are continuing care retirement centers and only a little more than half of them actually get the exclusion. Due to the high percentage of un-reimbursed health care costs recorded by Carolina Village, Mr. Mitchum felt it would be prudent to employ a CPA to audit that facility.}

^{Chairman Moyer noted that this Board, as well as the officials of the local municipalities, had not heard that this bill was forthcoming. So Mr. Nicholson, at the direction of the Commissioners, contacted the North Carolina Association of County Commissioners with respect to their involvement in the development of this bill. Mr. Nicholson explained that several years ago this issue had come up and at that point in time he spoke to Ed Reagan who=s the Deputy Director of the County Commissioners Association. Mr. Reagan explained to Mr. Nicholson that essentially, what this law does is establishes a test of charitable care that these facilities now have to qualify for it whereas under the old law a non-profit facility was automatically granted the exemption. So the Association did support the change in the legislation because it felt the bill gave stronger tests than under the previous law.}

^{Chairman Moyer pondered how the Association could support legislation without getting input from their members.}

^{Commissioner Ward too pondered the Association=s actions on this law because nothing had been said about the law in the NCACC conferences that he and the other Commissioners had attended nor have the Commissioners been notified of such discussions.}

^{Commissioner Gordon pondered how the Association felt this bill was strengthening the law. It sounds as though these types of care centers qualified already under the law and this just sets another guideline. If that=s the case, do they already qualify and they=re just now applying for this?}

^{Mr. Nicholson=s opinion is that the law probably exempted a larger number from across the entire State but it probably caused Henderson County a problem with one of our facilities, which may not have been qualified before. At one time, there were about eighty facilities that were looking for this type of exemption. So it may have caused us a problem but relieved other communities of the problem. Mr. Nicholson thought this probably was done at a Board of Director=s level during a session and not necessarily with the full membership.}

^{Chairman Moyer stated the Board would continue to follow up on that issue.}

^{Commissioner Ward questioned why this audit had not been done before the tax-exempt status was granted to Carolina Village instead of waiting until after the tax exemption had been granted.}

^{Commissioner Hawkins agreed with Commissioner Ward. When the Commissioners looked at the application from Carolina Village during the last budget cycle, the only item of the five qualifying criteria the Board looked at was the information that was presented on the five percent charity care and the Board didn=t really look at any more information because they didn=t realize it was the entire package. What=s before the Assessor now is a new application for the upcoming year. This issue not only affects Henderson County, it affects the City of Hendersonville. Commissioner Hawkins wondered if the City would be amenable to at least sharing a portion of the cost of the audit. He noted in the past that the County had TMA do some audits for us and he hoped the Board would investigate that company as being able to perform this audit as well as some other audits along those same lines. Commissioner Hawkins suggested the Board direct the Assessor or the County Attorney to contact that company to see if they would be willing to perform this audit and what they would charge for it and whether or not the City of Hendersonville might be interested in participating in it because they have some tax dollars at stake also. Then according to the results of that audit see if we need to revisit last year=s exemption.}

^{Chairman Moyer had spoken with Mayor Niehoff and learned the City is definitely interested in pursuing the audit. However, the Mayor did not commit to what the City=s contribution would be to the cost of the audit. Chairman Moyer emphasized the Board was not picking on Carolina Village but the Board wanted to look at all tax-exempt organizations. Because this is a new issue, an audit is appropriate.}

^{Commissioner Gordon asked Ms. Beeker for legal guidance on asking the City of Hendersonville to help pay for the audit whether that would fall in line with what the Board is charged to do in determining tax value and collecting taxes and if that=s legal.}

^{Ms. Beeker replied she didn=t see a legal problem with that but the auditor would have a dual client. There is only one assessment though that=s done of the properties. She further commented that as she reads the law, this is something that the facility should have to apply for every year because it is based on a particular year=s revenues and expenditures. Therefore, any qualified retirement facility would have to demonstrate that they meet the test every year. There was a special extension of the time to make application for last year. The facilities were given until September 1st to apply and Carolina Village applied August 30. Mr. Mitchum had not yet seen their application for 2002. As Ms. Beeker reads the law, they have to apply during the listing period, which is over. She reminded the Board that last year=s application is what would be audited.}

^{Commissioner Gordon stated that it would be very important that whoever does the audit has experience in this type of institution because the critical issue is whether the amount of un-reimbursed expenses are essentially there is no other ability for those expenses to be paid. Many people have un-reimbursed expenses technically on their insurance policy, for instance the difference between what the carrier pays and what the doctor charges and that can be called an un-reimbursed expense although there is still the ability to pay if that=s asked for. In doing this kind of audit, they really have to look into the detail of how those charges are being made and whether or not the patient is being asked to reimburse for those and is able to do it.}

^{Based on the Board=s discussion, Chairman Moyer directed Mr. Mitchum to look at who might do the audit and also consider the other group and then we will go forward.}

^{Mr. Mitchum recommended that a CPA be used.}

^{PUBLIC HEARING-Transportation Grants}

^{Chairman Moyer made a motion to go into the public hearing to receive public comments on the possibility of applying for the Rural Operating Assistance Program Grant (ROAP) in the amount of $115,8000 and $110,238 for a Discretionary Rural Public Transportation Grant (RGP) for Fiscal Year 2002-2003. All voted in favor and the motion carried.}

^{Chairman Moyer further explained the ROAP grant is basically the on-going transportation program currently offered by Apple Country Transportation. The RGP grant is the fixed route program that was recently proposed by Apple Country Transportation.}

^{The Rural Operating Assistance Program (ROAP) covers the Elderly and Disabled, Work First, and Rural General Public transportation programs. Traditionally, the Rural General Public Transportation portion has been used for the Saturday shopping trips. However, this year funds are requested in the ROAP application to assist with the start up of the fixed route program.}

^{The State recently informed the Commissioners that the former request for funds in this fiscal year for the fixed route program had been reduced. The Henderson County Transportation Advisory Committee expressed displeasure over the State=s actions not to fully fund the proposal. However, the TAC recommended that the proposal be revised using the parameters as set forth by NCDOT=s response to the first proposal and resubmit the application for discretionary Rural General Public funds for $110,238. A local match of $10,000 committed by Wal-Mart and rider fares of approximately $8,000 would contribute to this match as well as donations of bus stop signs and benches.}

^{The proposed fixed route system would encompass the towns of Flat Rock, Fletcher, Etowah and Edneyville. An extensive marketing plan as well as ways to measure success were also laid out in the proposal. Western Carolina Community Action, the main transportation provider for Henderson County, had acquired a 20-passenger light transit vehicle this past year as well as two high top vans that would be utilized for this fixed route system.}

^{Chairman Moyer recommended the Commissioners approve the resubmission of the application to NCDOT.}

^{Javonni Burchett´, Transportation Coordinator for Apple Country Transportation, was present to answer questions about the applications being considered by the Commissioners.}

^{Chairman Moyer: AYI and the committee would probably be of a mind to say no we=re not going to do it. I think they got that message loud and clear from us. They=ve now raised it up enough where it=s tempting enough, I would say it=s not ideal, but it=s tempting enough to give it a try and try to work with them and get some more money and do the things. I guess where I come out, I think it=s worth the effort and maybe we=ll get a very pleasant surprise and maybe it=ll be successful. I don=t underestimate any of the problems. When Javonni says it=s a give-me, well to a certain extent, but a lot of people are going to have to do a lot of work with respect to scheduling, beating the bushes to get people to ride to make this successful. So there will be a lot of work involved. But I think it=s close enough to the issue, close enough to the line where it=s worth us spending the time to give it a try. I think it=s where I come out. Again, it=s not ideal, but I think it=s worthwhile giving it a try to try to make it work. And that would be my recommendation. The County Manager can=t speak on this subject soY@}

^{Commissioner Hawkins: ACould I ask you one more question because I was curious about you, and I don=t know what page it=s on, it=s the page you have your EDTAP, WorkFirst and Rural General Public Funds segregated out between the FY 01-02 allocations and the 02-03. You have an asterisked item there I thought was interesting where you indicated the Department of Transportation has proposed the above allocations. So I guess I don=t understand the system. They make a proposal and send it to us and we send it back to them?@}

^{Javonni Burchett: AIt=s every year. They more or less decide what they want to give us based on servicesY@}

^{Commissioner Hawkins: AIt=s amazing how Raleigh runs out of money down there. But I mean you know if that=s what they were going to give us, why go through this ROAP? Just send the money up and let=s get to work on it.@}

^{Chairman Moyer: AThey need us as a Board, and Javonni, to make a commitment that we can spend this money in this way and that we=re willing to do this program. It=s not ideal but it=sY Other questions for Javonni? Commissioner Ward?@}

^{Commissioner Ward: AI don=t have any questions. Basically, the only thing I have is a statement. My relationship with Mr. Stepp goes back eight years. Through trial and error we=ve come a long way. I think we need to go ahead and like you say Mr. Chair, go ahead and try this. I think there=s three or four things. Our growing population of seniors in the County and if we had those in the County on my side especially, a lot of the seniors are not able to drive. They=re limited on, like my Mother for example, she can drive in a 10-mile radius. Well, she couldn=t drive from Edneyville to Etowah for example but she could drive to town to get onto the bus. I think we=ve got some of them working and I employ some of them that I have to go get myself. This transportation would benefit some of the smaller businesses in the county. But I think the key to this is the 5307 money which we=ll probably have to access in 2006 based on population. As we all know, the population won=t be decided until 2010. Well, that will be a challenge for WCCA and the County Manager to basically prove that we=ve got 100,000 people to continue this program. But with continued success, I think maybe the D.O.T. would see we=re close to it and maybe we can have the numbers correspond with our request on the application. So I=m like you, I think we ought to give this a try because there=s a lot of people in the County I feel like can use the service.@}

^{Commissioner Hawkins: AI=d like to know a little more how you plan to evaluate it. I mean if we=re going to try it, then you know I=m looking at, I guess what is your two key points, effectiveness and efficiency and economical well-being. Are those the things that wereY?@}

^{Chairman Moyer: AWell, yeah, but the two key points are going to be ridership and dollars. They=ll be maintained, we=ll keep a ridership thing on each of the buses and certainly we=ll be looking at times because Javonni has made the point many times, we=ll fine tune this schedule as necessary. If we see the ridership is different based on the calls, we know we=re going to have to make some changes in this. I think we may also need to get to a point of taking a look at a special study as to where we=re picking up and whether it=s employment, to the best we can, if it=s tourists or whatever. And certainly the dollars will be there. We=ll know what kind of dollars that we=re bringing into it.@}

^{Commissioner Hawkins: AThen let me ask you this. Because those are measurable, I mean you=ve got twenty riders a day and you=ve got so many fares, what is the benchmark on those numbers that=s going to determine whether or not you keep the program or terminate it?@}

^{Javonni Burchett´: AI think that=s up to you all. I=ll come back with the application again next year and the TAC Board has toY@}

^{Chairman Moyer: ABut we had said, the Transportation Advisory Committee recommendation had set for the first year the number of riders we=re looking for and the number of dollars.@}

^{Commissioner Hawkins: AWhat is it going to be for this pared-down program?@}

^{Chairman Moyer: ADo you have a pared-down number yet?@}

^{Javonni Burchett´: A10,200 passenger trips.@}

^{Chairman Moyer: AAnd eight thousand dollars. I think that=s where it came out.@}

^{Commissioner Hawkins: AAnd if you hit those benchmarks, then you want to try it again next year?@}

^{Chairman Moyer: AWe=ll go back and continue it. If we don=t, then we=re going to reassess stopping the program. That=s exactly right. And the Committee was very strong in evaluating that and fulfilling that.@}

^{Commissioner Ward: AOne other point for clarification. I saw in your cover that you have a support letter from the City Council. I couldn=t find it. I saw Wal-Mart and I know they don=t represent the City Council.@}

^{Chairman Moyer: AThat=s my fault, Javonni. I have that letter Don and I guess I must not have circulated. I thought I had. But I do have the letter that came to them. I think they gave it to me at the Transportation Advisory Committee but I do have the letter.@}

^{Commissioner Ward: AI thought it would have some kind of support financially of this since it would all be in a base route, that=s what I was looking for in the letter. But evidentlyY@}

^{Chairman Moyer: ANow the way we left it, and again Fred and I talked about this, since Wal-Mart is providing the match for the first year, we didn=t ask them for a match. But in future years, they said they=d be very willing to consider stepping up, if we had to come up with a match, then they would come up with a match. But we=re going to try to get it, as Paul will tell you, from the businesses and the advertisements and things like that and from ridership. So that will produce the match. If there=s a shortfall, then we=ll come to our Board and to the City. Fletcher indicated their willingness. They were very interested in having that out there and so I think that=s something we can all talk about if we get to next year and we need to come up with money for a match. But this year we don=t have that problem. Commissioner Gordon?@}

^{Commissioner Gordon: AI think we need to take advantage of the opportunity that=s here to try the program. I think things were learned from the trolley experience. And I think it does look reasonably feasible to me. Actually I think it=s a better written grant that the first one I saw. And I do appreciate the work that Mr. Antrim, Mr. Lynch and Paul Stepp put into getting this pulled together because it is more understandable and the routes look reasonable. So I really think we should go ahead and authorize making the application and see what happens.@}

^{Chairman Moyer: ACommissioner Messer, anything you want to add?@}

^{Commissioner Messer: AI agree. I=ve still got some questions. Are we going to do this on Saturdays? You know something else we=ve got to look at in the long-term, I=m talking about eight months from now, I think as Commissioner Hawkins brought forth, is the cost of fuels and stuff on the increase so rapid, we=ve definitely got, or I think, we=ve definitely got to have some reserve somewhere and that reserve can be met. But I think we definitely need to look at that because you start taking three or four cents on gasoline alone overnight, it will definitely have a big impact in the long term.@}

^{Chairman Moyer: AGoing to your first point, I think pulling a number of suggestions together, I think where we are was to leave the money for Saturday in the ROAP grant, in case, and try to see how the fixed route comes out but be prepared to move that money and put language in there giving us the ability to move it if it became more practical to move it to the fixed route. I would hope that=s the direction we go in, but this would give us the flexibility to go either way. Is there anyone signed up for public comment on this matter?@}

^{Ms. Corn: AYes sir, there=s one. Eva Ritchey.@}

^{Ms. Eva Ritchey: AGood morning. Thank you. I asked Paul Stepp if he would stand and make some remarks in support of this program for Citizens for Transportation Planning because he is Mr. Public Transit here in the County and I wouldn=t want to take any of that away from him. But he feels like his health is such that he would rather not, so I will stand. I won=t be as eloquent as him, but I will stand in support of it. As you know, Citizens for Transportation Planning has been for a long time recommending that we give more choice and better transportation planning to our citizens here in Henderson County. We know that nationwide forty percent of Americans do not drive. I was going to use thirty percent for our County just so we wouldn=t have any arguments but I think forty percent is probably pretty accurate given the age demographics of our community. That means that in our community there are thirty-six thousand people who do not drive. Now I don=t think it=s a tough decision to say to those thirty-six thousand people that we care about you, you count, your needs count and we=re going to provide you with a way to get there and that=s what implementing a public transit is saying to them. It=s saying that you=re entitled to a portion of the transportation dollars that we have in this community. That you thirty-six thousand people count and that=s not a tough decision. We don=t seem to have a big problem with other things in transportation not paying for themselves but we do with public transit. And I would remind you, ladies and gentlemen, that we are in the midst of some of the worst air quality that has ever existed here in Henderson County and we know for a fact that fifty percent of CO5 pollution is from fossils-fueled vehicles. So I would recommend to you not only that we implement this public transit system so that we can decrease our vehicle miles driven by single occupancy vehicles which is at the point of the problem. We know that when we put in catalytic converters that was helping but what happened was everybody got richer, got bigger SUV=s, drives three times as many miles and so we haven=t made any gains in air pollution. We simply have to limit trips. The only thing we know that can be done is through public transit, or walking, or bicycles. If you don=t give people the opportunity to do it, then you have no way to limit your air quality problems. If anyone has a better solution, I would love to hear it. However, I would also like to recommend to you as a Board that as you=re looking at vehicles to do this public transit system, that you also include the thought of alternative fuel. Those vehicles are available. Some of them are being manufactured now right in our neighbor=s backyard in Tennessee. There are electric vehicles available. D.O.T. is very amenable to looking at those things. We could put in alternative fuel in public transit vehicles and do a very fine job. And as a last statement on support of this system, I=d like to personally thank you, Mr. Moyer, and this is not to anyone else on this Board, and especially Don Ward. Don, you=ve taken some very, very pointed heat in the paper lately about yourself. And I think it=s only fair to say something good about someone when they have done something visionary. And you had the courage to support the trolley which was the first step. It was a wonderful first step. We learned an awful lot. Some of the improvements in this system are based on what we learned from the trolley and I just think that those thirty-six thousand people should say thank you to you and I have no political agenda for saying that up here. I just think when you do a good thing somebody should say yes you did a good thing and I thank you for your continued support for public transit because there are a lot of people out there who aren=t rich enough, or for whatever reason, or they=re too old, they also deserve a way to get from here to there and they shouldn=t have to beg for it. Thank you.@}

^{Chairman Moyer: AThank you Eva. Is there any further discussion? I move we go out of public hearing. All in favor say aye. (All uttered aye in unison). And I will move that we approve the two grants that are in front of us, the Rural Operating Assistance Program in the amount of $115,800 and the Discretionary Rural Public Transportation Grant in the amount of $110,238 and I=d also like to add to the motion that if the, to make it very clear to the Transportation Advisory Committee and to the community, that if the, this is the minimum level that we can accept for a trial of public transportation and if the State will not fund this, we=d have to amend the other application to withdraw the piece with respect to a fixed route. So that=s the motions. Is there any further discussion? All in favor say aye. (All uttered aye in unison). It=s unanimous. I want to say a special thanks to Javonni and to Paul and to Jack Lynch and John Antrim for their work. They=ve been at this for weeks and weeks with constant changes and I=m sure it=s not over but thank you on behalf of the Board and let=s make this a successful trial and we all will obviously be very pleased if it works out.@}

^{The Henderson County Board of Commissioners voted unanimously to support the applications for the ROAP grant in the amount of $115,800 and the Discretionary Rural Public Transportation Grant of $110,238 for Fiscal Year 2002-2003.}

^{PUBLIC HEARING-Continued from Monday, March 11, 2002, to Consider Financing Documents to Finance Improvements to Rugby Middle School, Flat Rock Middle School, and Hendersonville Middle School}

^{At approximately 11:00 a.m., Commissioner Ward made a motion to go into the public hearing that was continued from the March 11, 2002 meeting. All voted in favor and the motion carried.}

^{The Chairman announced that this was the hour, day and place fixed for the public hearing for the purpose of considering whether the Board of Commissioners for the County (the ABoard@) should: (i) approve a proposed installment installment financing agreement and certain related documents under which the County would obtain financing pursuant to a qualified zone academy bonds (the ABond@) as allowed by Section 1397E of the Internal Revenue Code of 1986, as amended, and the regulations there under, and Article 34B of Chapter 115C of the North Carolina General Statutes, as amended, and utilizing a mortgage style financing as security for the bond pursuant to Section 160A-20 of the North Carolina General Statutes, as amended, for middle school facilities consisting of the rehabilitation, repair and equipping of Hendersonville Middle School (the ASchool@) as described in the notice of public hearing that was published on February 28, 2002, in the Hendersonville Times News, and under which the County would secure the repayment by it of moneys advanced pursuant to such installment financing agreement by granting a security interest in the School and certain related property; and (ii) accept the conveyance of the real property and improvements thereon, upon which the School will be rehabilitated, repaired and equipped (the ASite@), currently owned by the Henderson County Board of Public Education (the ABoard of Education@), pursuant to a request of the Board of Education as authorized by Section 153A-158.1 of the North Carolina General Statutes, as amended.}

^{The Finance Director then described the School as currently proposed and presented a draft of an Installment Financing Contract (the AContract@) between the County and Bank of America, N.A. (the ABank@), as well as certain other related documents in the forms of drafts. Copies of these and other related documents have been on file with the Finance Director.}

^{The Chairman then announced that the Board would immediately hear anyone who might wish to be heard on such matters. No one indicated a desire to speak or offer comment.}

^{At the close of the public comments, the Board determined to proceed with the proposed financing of the improvements to Hendersonville Middle School and to approve such proposed Contract and the related documents substantially in the forms presented.}

^{Commissioner Ward made the motion to close the public hearing. All voted in favor and the motion carried.}

^{Thereupon, Commissioner Hawkins introduced the following resolution which was read by title and moved it be adopted:}

^{RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY}

^{OF AN INSTALLMENT FINANCING AGREEMENT, A DEED OF TRUST,}

^{A REHABILITATION AGREEMENT, A LEASE AGREEMENT AND RELATED}

^{DOCUMENTS IN CONNECTION WITH AN INSTALLMENT FINANCING}

^{FOR SCHOOL IMPROVEMENTS}

^{BE IT RESOLVED by the Board of Commissioners (the ABoard@) of the County of Henderson, North Carolina (the ACounty@):}

^{Section 1. The Board does hereby find and determine as follows:}

^{(a) The Henderson County Board of Education (the ABoard of Education@), the governing board of the Henderson County local school administrative unit, has determined that a need exists for renovating and modernizing Hendersonville Middle School and has requested capital funding therefor (the AProject@).}

^{(b) The Project is hereby approved.}

^{(c) After a public hearing and due consideration, the Board has determined that the most efficient manner of financing the Project will be through the County entering an Installment Financing Agreement (the AAgreement@), in a principal amount not to exceed $3,000,000, with Bank of America, N.A. (the ABank@) pursuant to Section 160A-20 of the General Statutes of North Carolina, as amended, and Section 1397E of the Internal Revenue Code of 1986, as amended, and the regulations thereunder. Pursuant to the Agreement, the Bank will advance moneys to the County in an amount sufficient to pay, together with other available funds, the costs of the Project, and the County will repay the advancement in installments (the AInstallment Payments@).}

^{(d) The Installment Payments will be invested pursuant to a Forward Delivery Agreement (the AForward Delivery Agreement@), among the County, the Bank and a trustee acceptable to the County.}

^{(e) In order for the County to enter into the plan of finance, the sites of the Project will be conveyed by the Board of Education to the County.}

^{(f) In order to secure the performance of the County=s obligations under the Agreement, the County will execute and deliver a Deed of Trust (the ADeed of Trust@), granting a lien on the site of the Project and all improvements and fixtures located and to be located thereon (the AMortgaged Property@).}

^{(g) In order to facilitate the construction of the Project, the County will enter into a Rehabilitation Agreement (the ARehabilitation Agreement@) with the Board of Education providing for the supervision of construction of the Project by the Board of Education.}

^{(h) The Mortgaged Property will be leased back to the Board of Education pursuant to a Lease Agreement. (The ALease Agreement@) between the County and the Board of Education, which Lease Agreement will be subordinate to the lien created by the Deed of Trust.}

^{(i) There has been presented to the Board forms of the following documents relating to the transaction hereinabove described:}

^{(1) the Agreement;}

^{(2) the Deed of Trust;}

^{(3) the Rehabilitation Agreement;}

^{(4) the Lease Agreement and}

^{(5) the Forward Delivery Agreement}

^{Section 2. The Board hereby approves the Agreement, the Deed of Trust, the Rehabilitation Agreement, the Lease Agreement and the Forward Delivery Agreement in substantially the forms presented at this meeting. The Chairman or Vice Chairman of the Board or the County Manager is hereby authorized to execute and deliver on behalf of the County each of said documents in substantially the forms presented at this meeting, containing such insertions, deletions and filling in of blanks as the person executing such documents shall approve, such execution to be conclusive evidence of approval by the Board of any such changes. The Clerk to the Board is hereby directed to affix the corporate seal of the County to each of said documents and to attest the same.}

^{Section 3. No deficiency judgment may be rendered against the County in any action for breach of any contractual obligation under the Agreement or the Deed of Trust, and the taxing power of the County is not and may not be pledged directly or indirectly to secure any moneys due under the Agreement or the Deed of Trust.}

^{Section 4. The Chairman, Vice Chairman, County Manager, Finance Officer, County Attorney and the Clerk to the Board, and any other officers, agents and employees of the County, are hereby authorized and directed to execute and deliver such closing certificates, opinions and other items of evidence as shall be deemed necessary to consummate the transactions described above, including (a) the execution of any necessary financing statements relating to fixtures located on the Mortgaged Property and (b) the execution of any documents necessary for the conveyance of the site of the Project to the County.}

^{Section 5. The Board hereby designates its obligations under the Agreement to be a qualified zone academy bond pursuant to Section 1397E of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.}

^{Section 6. This resolution shall take effect immediately upon its passage.}

^{Upon motion of Commissioner Hawkins, the foregoing resolution entitled ARESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT FINANCING AGREEMENT, A DEED OF TRUST, A REHABILITATION AGREEMENT, A LEASE AGREEMENT AND RELATED DOCUMENTS IN CONNECTION WITH AN INSTALLMENT FINANCING FOR SCHOOL IMPROVEMENTS@ was passed by a unanimous vote.}

^{Chairman Moyer advised the members that the next order of business was to consider and take action on another resolution (the AResolution@) that, among other things, makes the findings related to the Hendersonville Middle School project as required by the Local Government Commission.}

^{Commissioner Gordon 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, APPROVING THE INSTALLMENT FINANCING OF THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF MIDDLE SCHOOL FACILITIES AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH}

^{WHEREAS, the Board of Commissioners of Henderson County, North Carolina desires to provide for the rehabilitation, repair and equipping related to the rehabilitation and repair of certain middle school facilities, in particular Hendersonville Middle School, (the ASchool Facility@) pursuant to the request of the Henderson County Board of Public Education pursuant to N.C.G.S. 153A-158.1; and}

^{WHEREAS, as allowed by N.C.G.S. 153A-158.1, the Board of Commissioners desires}

^{to finance the School Facility by entering into an installment financing contract (the AContract@) and a deed of trust, which create in some or all of a portion of the School Facility and the site upon which it is located (the ASite@), a security interest to secure payment of the obligation thereby created; and}

^{WHEREAS, the Contract proposes a borrowing of $3,000,000 at a borrowing rate of 0.0% and a term of 13 years, with a balloon payment of $3,000,000 being due and payable at the end of the 13 year term; however the County will be required to make annual level deposits into an investment fund, having a guaranteed investment rate of 5.4% which, over the 13 year term of the Contract should earn the requisite funds to meet the obligation incurred under the Contract; and}

^{WHEREAS, pursuant to N.C.G.S. 153A-158.1 and pursuant to a request by the Henderson County Board of Public Education, the County is authorized to acquire the Site, currently owned by the Henderson County Board of Public Education; and}

^{WHEREAS, the County staff has advised the Board, and the Board hereby finds and determines, that the County must acquire the Site and enter into the Contract to provide for the rehabilitation, repair and equipping of the School Facility related to the rehabilitation and repair in order to provide for a qualified zone academy to be conducted at the Site, and to maintain and enhance the County=s public school facilities and to enable the County to perform its public functions, and that the School Facility will benefit the County and its residents; and}

^{WHEREAS, the Board conducted a public hearing on the date hereof to receive public comments on the desirability of the Contract which provides for the installment financing of the improvements to be made to the School Facility, and the acquisition of the Site in relation thereto, and the Board received evidence supporting the need for such financing and acquisition; and}

^{WHEREAS, the County Attorney has advised the Board that the School Facility is authorized by law and are purposes for which public funds may be expended pursuant to the Constitution and laws of the State of North Carolina; and}

^{WHEREAS, it is the Board=s intention to adopt this Resolution for the purpose of authorizing the acquisition of the Site, authorizing the rehabilitation, repair and equipping of the School Facility related to the rehabilitation and repair, making certain findings and determinations with respect thereto and authorizing such other acts deemed necessary and advisable to carry out the acquisition of the Site and the rehabilitation, repair and equipping of the School Facility related to the rehabilitation and repair; and}

^{WHEREAS, findings by the Board must be presented to the North Carolina Local Government Commission so it can make the findings set forth in North Carolina General Statutes 159-151 prior to approval of the proposed installment financing contract;}

^{NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Henderson County, as follows:}

1. The proposed contract is necessary and expedient because of the pressing need for the rehabilitation, repair and equipping of the School Facility related to the rehabilitation and repair.

2. The proposed Contract is preferable to a bond issue particularly because a general obligation bond authorization cannot be obtained in a timely manner and will not permit the alternative financing structures and repayment provisions available in the proposed financing Contract.

3. The sums to fall due under the contract are adequate and not excessive for the proposed purpose and can be included in the County=s budget without difficulty.

4. Past audit reports of the County indicate that its debt management procedures and policies are good and have been carried out in strict compliance with law.

5. There will be no required increase in the County=s ad valorem tax rate to meet the sums to fall due under the proposed contract.

6. The County is not in default on any of its debt service obligations.

7. The County Attorney has rendered an opinion that the proposed project is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina.

8. The Board hereby approves the acquisition of the Site and the rehabilitation, repair and equipping of the School Facility related to the rehabilitation and repair through the use of an installment financing in an amount not to exceed $3,000,000, at a borrowing rate of 0.0% and a term of 13 years, with a balloon payment of $3,000,000 being due and payable at the end of the 13 year term. The Board also hereby approves the deposit of annual payments into an investment account having a guaranteed investment rate of interest of 5.4% in order to generate funds as necessary to meet the obligation of a $3,000,000 balloon payment at the end of the 13 year term. To this end, the Board hereby designates the obligations under the Contract to be a qualified zone academy bond pursuant to Section 1397E of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder The Board hereby authorizes the Chairman, the County Manager, the Finance Director, the Clerk to the Board and the County Attorney to take any and all such further action and to execute and deliver such other documents as may be necessary or advisable to consummate such acquisition.

9. This Resolution shall become effective immediately upon its adoption.

The motion was adopted by a unanimous vote.

PUBLIC HEARING CONTINUED FROM MONDAY, MARCH 11, 2002 TO CONSIDER FINANCING DOCUMENTS FOR QZAB BONDS TO FINANCE IMPROVEMENTS TO HENDERSONVILLE MIDDLE SCHOOL

At approximately 11:00 a.m., Commissioner Ward made a motion to continue the public hearing convened on March 11, 2002 at 7:00 p.m. All voted in favor and the motion passed.

The Chairman announced that this was the hour, day and place fixed for the public hearing for the purpose of considering whether the Board of Commissioners for the County (the ABoard@) should: (i) approve a proposed installment financing agreement and certain related documents under which the County would obtain financing pursuant to Section 160A-20 of the North Carolina General Statutes, as amended, for middle school facilities consisting of the acquisition, construction, renovation and equipping of Rugby Middle School, Flat Rock Middle School, and Hendersonville Middle School (collectively the ASchool Facilities@) as described in the notice of public hearing that was published on February 28, 2002, in the Hendersonville Times News, and under which the County would secure the repayment by it of moneys advanced pursuant to such installment financing agreement by granting a security interest in Rugby Middle School and certain related property; and (ii) accept the conveyance of the real property and improvements thereon, upon which the Rugby Middle School is located (the ASite@), currently owned by the Henderson County Board of Public Education (the ABoard of Education@), pursuant to a request of the Board of Education as authorized by Section 153A-158.1 of the North Carolina General Statutes, as amended.

The Finance Director then described the School Facilities as currently proposed and presented a draft of an Installment Financing Contract (the AContract@) between the County and BB&T Governmental Finance (the ABank@), as well as certain other related documents in the forms of drafts. Copies of these and other related documents have been on file with the Finance Director.

The Chairman then announced that the Board would immediately hear anyone who might wish to be heard on such matters. No one wished to speak or offer comments.

The Board determined to proceed with the proposed financing of the School Facilities and to approve such proposed Contract and the related documents substantially in the forms presented.

Commissioner Ward made the motion to close the public hearing. All voted in favor and the motion carried.

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

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HENDERSON, NORTH CAROLINA, APPROVING THE INSTALLMENT FINANCING OF THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF MIDDLE SCHOOL FACILITIES AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH

WHEREAS, the Board of Commissioners of Henderson County, North Carolina desires to provide for the acquisition, construction, installation and equipping of certain middle school facilities, including Flat Rock Middle School, Rugby Middle School, and Hendersonville Middle School, (collectively the ASchool Facilities@) pursuant to the request of the Henderson County Board of Public Education pursuant to N.C.G.S. 153A-158.1; and

WHEREAS, as allowed by N.C.G.S. 153A-158.1, the Board of Commissioners desires to finance the School Facilities by entering into an installment financing contract (the AContract@) and a deed of trust, which create in some or all of a portion of Rugby Middle School and the site upon which it is located (the ASite@), a security interest to secure payment of the obligation thereby created; and

WHEREAS, the Contract proposes a borrowing of $9,100,000 at an interest rate of 5.59% and a term of 15 years, with semi-annual installment payments having a level principal component to be made over the 15-year term; however, in the event the borrowing is determined to be bank-qualified within the meaning of Internal Revenue Code Section 265(b)(3, the Contract proposes an interest rate of 4.49%, with the term and borrowing amount remaining the same; and

WHEREAS, pursuant to N.C.G.S. 153A-158.1 and pursuant to a request by the Henderson County Board of Public Education, the County is authorized to acquire the Site, currently owned by the Henderson County Board of Public Education; and

WHEREAS, the County staff has advised the Board, and the Board hereby finds and determines, that the County must acquire the Site and enter into the Contract to provide for the construction, renovation and equipping of the School Facilities in order to maintain and enhance the County=s public school facilities to enable the County to perform its public functions, and that the School Facilities will benefit the County and its residents; and

WHEREAS, the Board conducted a public hearing on the date hereof to receive public comments on the desirability of the Contract which provides for the installment financing of the improvements to be made to the School Facilities, and the acquisition of the Site in relation thereto, and the Board received evidence supporting the need for such financing and acquisition; and

WHEREAS, the County Attorney has advised the Board that the School Facilities are authorized by law and are purposes for which public funds may be expended pursuant to the Constitution and laws of the State of North Carolina; and

WHEREAS, it is the Board=s intention to adopt this Resolution for the purpose of authorizing the acquisition of the Site, authorizing the construction, renovation and equipping of the School facilities, making certain findings and determinations with respect thereto and authorizing such other acts deemed necessary and advisable to carry out the acquisition of the Site and the construction, renovation and equipping of the School Facilities; and

WHEREAS, findings by the Board must be presented to the North Carolina Local Government Commission so it can make the findings set forth in North Carolina General Statutes 159-151 prior to approval of the proposed installment financing contract;

NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Henderson County, as follows:

1. The proposed contract is necessary and expedient because of the pressing need for improvements to the School Facilities.

2. The proposed Contract is preferable to a bond issue particularly because a general obligation bond authorization cannot be obtained in a timely manner and will not permit the alternative financing structures and repayment provisions available in the proposed financing Contract.

3. The suns to fall due under the contract are adequate and not excessive for the proposed purpose and can be included in the County=s budget without difficulty.

4. Past audit reports of the County indicate that its debt management procedures and policies are good and have been carried out in strict compliance with law.

5. There will be no required increase in the County=s ad valorem tax rate to meet the sums to fall due under the proposed contract.

6. The County is not in default on any of its debt service obligations.

7. The County Attorney has rendered an opinion that the proposed project is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina.

8. The Board hereby approves the acquisition of the Site and the construction, renovation and equipping of the School Facilities through the use of an installment financing in an amount not to exceed $9,100,000 at a rate of 5.59% and a term of 15 years, with semi-annual installment payments having a level principal component to be made over the 15-year term; however, in the event the borrowing is determined to be bank-qualified within the meaning of Internal Revenue Code Section 265(b)(3, the Board approves an interest rate of 4.49%, with the term and borrowing amount remaining the same. The Board hereby authorizes the Chairman, the County Manager, the Finance Director, the Clerk to the Board and the County Attorney to take any and all such further action and to execute and deliver such other documents as may be necessary or advisable to consummate such acquisition.

9. This Resolution shall become effective immediately upon its adoption.

Approved by the Board of Commissioners of Henderson County this 20th day of March, 2002.

The motion was adopted by a unanimous vote.

Chairman Moyer advised the members that the next order of business was to consider and take action on another resolution (the AResolution@) that, among other things, approves the form of the documents to be entered into in connection with Henderson County=s installment financing of the acquisition and/or construction, renovation and equipping of certain middle schools.

Commissioner Hawkins introduced the following Resolution, which was read by title, and moved that it be adopted.

RESOLUTION APPROVING TERMS

OF THE HENDERSON COUNTY FINANCING

FOR A MAXIMUM AMOUNT OF $9,100,000

WITH BRANCH BANKING AND TRUST COMPANY (ABB&T@)

WHEREAS, the Henderson County, North Carolina (the AUnit@) has previously approved and determined to undertake a plan for the financing and construction, renovation and equipping of certain middle schools, in particular, Rugby Middle School, Flat Rock Middle School, and Hendersonville Middle School (the AProject@); and,

WHEREAS, there have been presented the following draft agreements (the AAgreements@)

which the Unit proposes to execute in connection with the Project, copies of which shall be filed with the Unit=s records:

(1) A draft of a Financing Agreement and Deed of Trust to be dated as of TO BE INSERTED (the AFinancing Agreements@), from the Unit to a deed of trust trustee for Branch Banking & Trust Company=s (BB&T) benefit, providing for BB&T to finance a portion of the Unit=s undertaking of the Project, and providing a separate security interest in Rugby Middle School and associated property to BB&T to secure the Unit=s performance of its obligations under the Financing Agreements; and

(2) A draft of a Project Fund Agreement to be dated as of TO BE INSERTED (the AProject Fund Agreement@) between the Unit and Branch Banking & Trust Company of North Carolina, as escrow agent, providing for the custody of financing proceeds pending their application to Project costs; and

(3) A draft of a Lease Agreement to be dated as of TO BE INSERTED (the ALease@) between the Unit and the Henderson County Board of Public Education, providing for the lease of Rugby Middle School from the Unit to the Board of Public Education; and

(4) A draft of an Agency Agreement to be dated as of TO BE INSERTED (the AAgency Agreement@) between the Unit and the Henderson County Board of Public Education, authorizing the Board of Public Education to act as the agent of the Unit in carrying out the Project; and

(5) A draft of miscellaneous closing documents and certificates to be dated as of TO BE INSERTED (the AClosing Documents@).

WHEREAS, the Unit duly conducted a public hearing on March 11, 2002 which was continued to March 20, 2002, regarding the Agreements to finance the construction of the Facilities.

NOW THEREFORE, BE IT RESOLVED BY THE HENDERSON COUNTY BOARD OF COMMISSIONERS AS FOLLOWS:

1. The Unit hereby affirms its decision to undertake the Project. The Unit hereby determines to accept the proposal from BB&T to finance the Project in accordance with the plan of financing described in the Agreements referenced above. All actions of the County effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in accordance with the transactions contemplated by the documents referenced above.

2. Each of the Agreements is hereby approved, and the Chairman of the Board, the County Manager, the County Attorney, the Finance Director, and the Clerk to the Board, as the came may be, are hereby authorized and directed to execute the Agreements and to deliver the same to the appropriate counter parties, and the Clerk (or any assistant clerk) is hereby authorized and directed to affix the Unit=s seal to the Agreements and to attest the same. The Agreements shall be in substantially the forms submitted at this meeting, which are hereby approved, with such changes as may be approved by the officer executing such agreement, such officer=s execution to constitute conclusive evidence of approval of any such changes. The Agreements in final form, however, must provide (a) for the Unit to finance a total of not more than $9,100,000.00; (b) for the Unit=s obligation to repay the amounts advanced to bear interest at an annual rate of not more than 5.59 percent or, in the event designated as bank qualified, 4.49 percent; (c) the term of the Agreements shall not exceed fifteen (15) years; and the annual payments to be made under the Agreements.

3. The Unit=s payment of Installment Payments, as defined in the Financing Agreement, shall be subject to annual appropriation of funds by the Board. The Unit shall not be obligated to make any Installment Payments beyond those for which funds have been appropriated in the Unit=s sole discretion during the Unit=s then-current fiscal year. The Financing Agreement shall not constitute a pledge of the Unit=s full faith and credit. Neither the Unit=s full faith and credit nor its taxing power is pledged directly, indirectly or contingently to secure any moneys due BB&T.

4. The Unit=s officers are hereby authorized and directed to deliver all certificates and instruments and to take all such further action as they may consider necessary or desirable in connection with the execution and delivery of the Agreements and the consummation of the transactions contemplated thereby, including delivering a certificate setting forth the expected use and investment of the proceeds to be derived from the execution and delivery of the Financing Agreement (the AProceeds@), and to make any elections such officers deem desirable regarding any provision requiring rebate of earnings to the United States, for purposes of complying with the provisions of the Internal Revenue Code of 1986, as amended, including applicable Treasury regulations (the ACode@), applicable to arbitrage bonds.

5. The Unit shall not take or omit to take any action the taking or omission of which will cause its obligations to pay Installment Payments (the AObligations@) to be Aarbitrage bonds@, within the meaning of Code Section 148, or otherwise cause interest components of Installment Payments to be includable in the gross income for Federal income tax purposes of the registered owners of the Obligations. Without limiting the generality of the foregoing, the Unit shall comply with any provision of the Code that may require the Unit at any time to pay to the United States any part of the earnings derived from the investment of the Proceeds. The Unit shall pay any such required rebate from its general funds.

6. Currently, the Obligations shall not be considered as Aqualified tax-exempt obligations@ for the purpose of Internal Renevue Code Section 26(b)(3) as the Unit may be issuing more than $10,000,000 in tex-exempt obligations in the calendar year 2002. However, in the event that the Unit decides that it does not reasonably anticipate issuing more than $10,000,000 in tax-exempt obligations for the calendar year 2002, the Unit will consider designating the obligations as tax-exempt obligations and will adopt a resolution to that effect.

7. All other actions of the Unit officers in conformity with the purposes and intent of this resolution and in furtherance of the execution and delivery of the Agreements and the consummation of the transactions contemplated thereby are hereby approved and confirmed.

8. All other resolutions or parts thereof in conflict herewith are hereby repealed.

9. This resolution shall take effect immediately.

The motion was adopted by a unanimous vote.

IMPORTANT DATES

In a letter to the North Carolina Association of County Commissioners, the Board requested special meetings to deal with some of the issues and litigation against the State. Chairman Moyer pointed out there would be some regional meetings. The closest regional meeting would be in Lenoir on April 23rd from 10:30 am until 1:00 pm and there will be a legislative meeting in Raleigh on May 29th which Chairman Moyer will attend.

Mr. Nicholson advised the Board that the Chamber had proposed some luncheon meeting dates as requested by the Board at the last meeting. The Chamber proposed April 25th, 26th or 29th. Commissioner Ward would be out of town during those dates. The Board considered the proposed dates by the Chamber of May 1st, 2nd or 3rd. The Board chose to hold the joint meeting with the Chamber at 11:45 am on May 2nd .

Chairman Moyer advised the Board that at the LGCCA meeting the members agreed to move the South 25 Corridor study forward. Chairman Moyer was awaiting a reply from the City of Hendersonville as to where they stand on the South 25 Corridor study. Commissioner Ward agreed especially with the City=s annexation study going on there, the City is the key player on the corridor issue. Chairman Moyer asked that be part of the discussion since it certainly relates to the corridor study.

Commissioner Ward informed the Board he had another business trip the last week of May. He would be out of town from May 27th through May 30th.

CLOSED SESSION

Chairman Moyer made a motion to go into Closed Session for the following reasons:

1. NCGS 143-318.11(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 the following claim:

Henderson County and Cane Creek Water and Sewer District v. Asheville-Buncombe-Henderson Water Authority; Buncombe County and City of Asheville [Hend. Co. File No. 01-CVS-344]

2. NCGS 143-318.11(a)(4): To discuss matters relating to location or expansion of industries or other businesses in the area served by the public body.

All voted in favor and the motion carried.

Adjournment

All business being concluded, Chairman Moyer adjourned the meeting at approx. 1:40 p.m.

Attest:

Elizabeth W. Corn, Clerk to the Board

William L. Moyer, Chairman