MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON NOVEMBER 20, 2002

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

Those present were: Chairman Bill Moyer, Vice-Chair Marilyn Gordon, Commissioner Grady Hawkins, Commissioner Don Ward, Commissioner Charlie Messer, County Manager David E. Nicholson, County Attorney Angela S. Beeker, and Clerk to the Board Elizabeth W. Corn.

Also present were: Planning Director Karen C. Smith, Finance Director J. Carey McLelland, Assistant to the Manager Selena Coffey, Public Information Officer Chris S. Coulson, Fire Marshal/Emergency Management Coordinator Rocky Hyder, Paralegal Connie Rayfield, Property Addressing Technician Curtis Griffin, Planner Josh Freeman, and Deputy Clerk to the Board/Volunteer Coordinator Amy Brantley.

CALL TO ORDER/WELCOME

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

PLEDGE OF ALLEGIANCE

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

INVOCATION

Rev. Gus Martschink, a member of the Chaplaincy Program at Pardee Hospital, gave the invocation.

DISCUSSION/ADJUSTMENT OF AGENDA

David Nicholson asked that the Board add one item to the consent agenda - ARequest for an Improvement Guarantee for Park Ridge Medical Office Building Subdivision@. Chairman Moyer added it as item AG@.

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

NOMINATIONS

Commissioner Ward suggested that the Board consider rolling these vacancies because of two new Board members coming on the Commission who might want to help fill some of these positions since they will have to work with them.

Discussion followed and it was the consensus of the Board to act on these nominations today.

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

1. Equalization and Review - 1 vac.

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

2. Nursing/Adult Care Home Community Advisory Committee - 3 vac.

Commissioner Gordon made the motion to reappoint Ms. Fountain by acclamation. All voted in favor and the motion carried. Two vacancies remain.

3. Zoning Board of Adjustment, Hendersonville City - 1 vac.

Commissioner Gordon nominated Kennith Stubbs. Commissioner Hawkins made the motion to appoint Mr. Stubbs by acclamation. All voted in favor and the motion carried.

4. Zoning Board of Adjustment, Fletcher - 1 vac.

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

5. Community Child Protection Team - 1 vac.

Chairman Moyer nominated Betty Roark. Commissioner Gordon moved that nominations cease. Commissioner Ward nominated Dottie Effinger but then withdrew that nomination. Commissioner Gordon moved that Ms. Roark be appointed by acclamation. All voted in favor and the motion carried.

6. Travel and Tourism Board - 2 vac.

Commissioner Gordon nominated Lucy King to fill one vacancy. Commissioner Gordon made the motion to appoint Ms. King by acclamation. All voted in favor and the motion carried. One vacancy remains which the Board will likely fill with a Commissioner.

7. Henderson County Zoning Board of Adjustment - 5 vac.

Commissioner Gordon made the motion to reappoint Janice Brown and Ann Livingston Pouch as an alternate, Dean Bonessi as an alternate, and Suzanne Holbert as an alternate. There were no other nominations. A vote was taken on the motion and it passed unanimously.

8. Apple Country Greenways Commission - 1 vac.

Chairman Moyer nominated John Antrim to that position. There were no other nominations. Chairman Moyer made the motion to suspend the rules and appoint Mr. Antrim. All voted in favor of the nomination.

9. Fire and Rescue Advisory Committee - 3 vac.

Chip Gould is the Board=s appointee and he is willing to serve an additional term. Rick Livingston is an appointee of the Fire & Rescue Advisory Committee and they have nominated him for reappointment. Chairman Moyer made the motion to ratify the appointment of Rick Livingston and appoint Chip Gould to the Fire and Rescue Advisory Committee. Commissioner Gordon made the motion to appoint both gentlemen by acclamation. All voted in favor and the motion carried. One vacancy remains.

10. Hospital Corporation Board of Directors - 3 vac.

Chairman Moyer stated that Dr. Albers, who is Chair, has indicated that he is willing to serve again. Ron Stephens has indicated that he will serve again. Howard Carl has indicated that he does not wish to serve again. Commissioner Messer nominated Kathy Watkins. Commissioner Hawkins mentioned that the Board had received a letter from the Hospital that they are willing to offer an orientation training for those that are interested. Chairman Moyer nominated Dr. Albers and Ron Stephens. Commissioner Hawkins nominated Dr. Juan Aldredge and suggested that Ms. Brantley let all these nominees know that the training is available through Pardee Hospital.

Since there were four nominations for three vacancies, the Clerk was asked to poll the Board. Some discussion followed. Commissioner Gordon made the motion to suspend the rules and make the appointments today. A vote was taken and the motion carried three to two with Commissioners Ward and Hawkins voting nay.

Each Commissioner was allowed three votes from four nominees. The following were appointed: Dr. Albers, Ron Stephens, and Kathy Watkins.

11. Laurel Park Planning Board - 1 vac.

Tim Cochran, who is currently on the Board, has indicated that he would be willing to serve another term. Commissioner Hawkins nominated Tim Cochran for reappointment. There were no other nominations. All voted in favor of the nomination.

12. Senior Volunteer Services Advisory Council - 1 vac.

Commissioner Gordon nominated Polly Heaton to fill the vacancy. Commissioner Gordon made the motion to appoint Ms. Heaton by acclamation. All voted in favor and the motion carried.

CONSENT AGENDA

Commissioner Hawkins made the motion to approve the consent agenda including the addition of item AG@. All voted in favor and the motion carried.

Minutes

Draft minutes were presented for the Board=s review and approval of the following meetings:

November 4, 2002, regular meeting (revised set)

November 13, 2002, special called meeting

Tax Collector=s Report

Terry F. Lyda, Tax Collector, had provided the Tax Collector=s Report dated November 18, 2002 for the Board=s information.

Tax Refunds

A list of 13 tax refund requests was submitted for the Board=s review and approval.

Tax Releases

A list of 120 tax release requests was submitted for the Board=s review and approval.

Referral of Special Use Permit Application for Hoopers Creek Quarry, LLC

Mr. Junius D. Grimes had submitted an application (#SP-02-01) for a Special Use Permit for an expansion to an existing mining and extraction operation known as Hoopers Creek Quarry (the AQuarry expansion@). The Quarry expansion is proposed on property owned by Hoopers Creek Quarry, LLC, that is located off Hoopers Creek Road, and is known by County parcel identification number 00-9663-95-5226-55 (the Asubject property@). The entrance to the subject property is located approximately 635 feet west of the intersection of Hoopers Creek Road and Jackson Road. Most of the subject property, except for the entrance and part of the access road (which fall within the extraterritorial jurisdiction of the Town of Fletcher), is within the County=s Open Use zoning district.

The subject property contains approximately 32.53 acres, 5 of which are currently governed by a State mining permit. The quarry also has a Federal mining permit. The applicant is applying for modification of the quarry=s State mining permit to expand its operation by approximately 0.72 acres in order to relocate a sediment basin and enlarge its waste fill site. Such expansion requires that the quarry operator obtain a special use permit from the County.

Sections 200-56 and 200-70 of the Zoning Ordinance require that the Board of Commissioners refer applications for Special Use Permits to the Planning Board for review and recommendations prior to the Board of Commissioners holding a public hearing. Because the public hearing must be conducted as a quasi-judicial proceeding, staff had not provided all of the application material to the Board but will do so at the time of the hearing.

Staff requested that the Board of Commissioners refer Special Use Permit application #SP-02-01 to the Planning Board for review and recommendations as required by the Zoning Ordinance.

David Nicholson recommended that the Board of Commissioners refer application #SP-02-01, submitted by Junius D. Grimes, for a Special Use Permit for an expansion to an existing mining and extraction operation at Hoopers Creek Quarry, to the Planning Board for review and recommendations.

Employee Recognitions/Awards

Henderson County=s Public Information Officer, Chris S. Coulson, has been named a finalist and candidate for one of the three 2002 Savvy Program awards in the category of Publications-Annual Reports for population group 87,227-200,000 for the 2001 Report to Citizens. Comments on the report were:

AExtremely innovative. Put a lot of information into an easy to read and attractive format. Way to go! What a fun piece to receive. We=d open it immediately with a smile on my face. Keeping it simple with flair.@

HENDERSON COUNTY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2002

Copies of the CAFR and the Report to the Board of Commissioners were distributed and reviewed.

Carey McLelland reviewed briefly the CAFR with the Board and stated that he would be willing to answer any questions from the Board as they review the document in detail. He recognized the Board for their accomplishments while holding the tax rate low in a time of revenue uncertainty and managing to increase the County=s fund balance position. He remembers when fund balance was 3% in Henderson County. As of June 30, 2002 fund balance was 13.5%. Mr. McLelland recognized Mr. Brian Broom, Director, and Mr. Bill Smith, Senior Manager for Crisp Hughes Evans LLP. They came forward and reviewed the Report to the Board of Commissioners. Henderson County received an unqualified report which was a clean report. We had no instances of non-compliance. There were also no difficulties encountered in performing the audit. Mr. Smith stated that they received excellent assistance from Carey McLelland and his Staff as well as Liston Smith, Peggy Gray and their Staff. Mr. Smith touched briefly on the Management Letter and the introduction of GASBY 34 which will be implemented for Henderson County next year. Due to GASBY the format of the report will be very different next year.

UPDATE ON THE OKLAWAHA GREENWAY

John Antrim, from the Apple Country Greenways Commission, updated the Board on the status of the Oklawaha Greenway. Recently the City of Hendersonville amended the Memorandum of Understanding to accept a larger role in developing this trail at the request of the Commission. He requested approval to go into the final design, stating they will make their presentation to Hendersonville City Council on December 5. Mr. Antrim stated that the grants are both made to the City.

Mr. Nicholson recommended that the Board accept the changes in the responsibility of the design work for the greenway. He had not seen the design plan; however, the Commission has been working with the Recreation Staff and Advisory Board on this issue.

Following discussion, Chairman Moyer made the motion to approve the design of this phase of the trail as presented and agree to the change in and delegation of responsibilities back to the City of Hendersonville. All voted in favor and the motion carried.

SECTION 5a OF THE RECOMMENDED ZONING MAP OF THE HOWARD GAP/BROOKSIDE CAMP ROAD AREA ZONING STUDY

At its Tuesday, November 12, 2002 Public Hearing regarding the Howard Gap/Brookside Camp Road Area Zoning Study, the Henderson County Board of Commissioners took action on the majority of the recommendations of the Henderson County Planning Board relating to such study. After taking public input, the Board of Commissioners pulled Section 5a of the Recommended Zoning Map out for further consideration. The Board requested that Staff examine that area in more detail and provide the Board with a recommendation on Section 5a at this meeting.

Four colored maps were distributed. Josh Freeman reviewed the maps with the Board and answered questions.

Following much discussion, Commissioner Hawkins made the motion to adopt map AAlternative C@ to define zoning for section 5-A, zoning it R-15. All voted in favor and the motion carried.

PROPERTY ADDRESSING STATUS REPORT

Rocky Hyder reminded the Board that over the past 18 months Property Addressing staff had mailed 45,000 address change/verification notices to county and municipal residents. To date, 750 roads have been named, changed or corrected in an effort to name roads with three or more houses and eliminate duplicate road names. Staff is continuing to work with: the Town of Laurel Park on property addressing issues; BellSouth verifying 9-1-1 database information; the Inspections Department and Environmental Health establishing the property address function in the initial plan review/permit process. Next year staff will focus on encouraging residents to display their address through the ACan We Count on You@ campaign.

No action was required. This was just an update for the Board.

PINEWOOD KNOLL/NATALIES RIDGE ROAD

At the August 5, 2002 meeting, the Board of Commissioners requested staff to independently poll the property owners adjoining Natalies Ridge Road regarding the proposed change to Pinewood Knoll Drive. Staff mailed ballots to all the property owners of record and received approximately 50% response. Staff then contacted the remaining property owners by telephone and received six more ballots. To date staff has received 16 ballots, 13 favoring Pinewood Knoll Drive and 3 for Natalies Ridge Road, leaving Pinewood Knoll Drive 1 vote short of the two-thirds requirement. Staff has contacted, or tried to contact the remaining property owners via telephone; however, efforts have failed to generate a response. Therefore due to the fact that the original petition contains a two-thirds majority in favor of Pinewood Knoll Drive, and the current survey by staff indicates an overwhelming majority in favor of Pinewood Knoll Drive, staff recommended the renaming of Natalies Ridge Road to Pinewood Knoll Drive.

Mr. Nicholson agreed with the recommendation from the property addressing staff that the Board should approve Pinewood Knoll Drive.

Commissioner Gordon made the motion to accept staff=s recommendation to change the road name to Pinewood Knoll Drive. All voted in favor and the motion carried.

HUMAN SERVICES BUILDING

David Nicholson presented the demolition and abatement bids as well as a proposed financing calendar for the Human Services Building.

1. Demolition and Abatement - Bid tabulation sheets for this part of the project were presented for review. The project was bid out with a possible deduction of the disposal fees. The lower bidder was Empire Dismantlement Corp. However, they have stated that they had a mathematical error in their bid and have asked that their bid be withdrawn from consideration. There are several legal issues concerning the withdrawal of a bid that the Board will want to seek advice from the County Attorney. The next lowest bidder was P&J Contracting Co., Inc. at $191,800 with a possible deduction of $10,000. We have received several good recommendations from this company.

Mr. Nicholson stated that once the legal issues are resolved with the lowest bidder, he recommended that the Board proceed with awarding a contract with P&J Contracting at $191,800.

Angela Beeker briefly discussed the bidding laws, stating that they do allow a bidder to request his bid be withdrawn. If such a request is received, the law states that you are to proceed with considering the other bids as if that bid had not been received. The Board would be free to go ahead and make an award today. The Board must make the decision whether Empire Dismantlement Corp. would forfeit their bid bond. The Board would have to set a public hearing and give them an opportunity to come in and present evidence as to their mistake. If it is a mistake and not just an error in judgement and the Board is satisfied as such, then they can consent to the withdrawal which would mean the bid bond would not be forfeited. If the Board felt that it was not a bonafide mistake then the bid bond would be forfeited.

Ms. Beeker stated that there were a few irregularities in P&J Contracting Co., Inc.=s bid that the Board would have to formally waive if they choose to make the award. The bid required that they note their license number on the envelope and they did not. They had a strike-through on their bid price but they did initial it in accordance with the requirements and instructions. If the Board chooses to award, they should note in their motion that they are waiving the minor irregularities that were in their bid.

Chairman Moyer asked if the Board wished to take action today. At least three did wish to do so.

Following discussion, Commissioner Gordon made the motion to accept the bid from P&J Contracting Co.,Inc. in the amount of $191,800 for the abatement and demolition on the Human Services building site with the waiving of the minor irregularities as presented by the County Attorney. All voted in favor and the motion carried.

2. Financing Calendar - A calendar was presented of a possible schedule of dates for the possible issuance of COPS for the Human Services Building. The Board should direct staff on its desire to proceed with this discussion.

Mr. Nicholson stated that at the last meeting the Board asked about the time frames of the things necessary to issue a more cost effective financing on this project and the possibility of looking at the past school financing projects and possibly future school financing projects. Staff has worked with the underwriter we traditionally use and came up with a preliminary financing calendar for the Board. It is about a three month process to get the project moving.

UPDATE ON PENDING ISSUES

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

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

Mud Creek Grant

Mr. Nicholson stated that he had been in two meetings with the Mud Creek Council. He had already updated the Board following the first meeting. He is concerned that the group is somewhat self-appointed who are working on this project. The Council wants Henderson County to hire staff and turn that position over to the Council. Mr. Nicholson was not comfortable with that scenario.

Gary Tweed stated that the grant is some monies that were funneled to the state from the EPA to do watershed restoration, stakeholder-type work. The monies are sitting in a fund with the Department of Environment and Health and Natural Resources. There was a 5% match associated with the grants. The match was met with a grant from TVA of $10,000 which is sitting at Land-of-Sky Regional Council. The strings attached to the grant are:

When we make application for the grant, we would submit a work proposal as to

what work would be done. If agreed to, it becomes a part of our agreement.

The grant is basically to cover the salary and operating expenses for this position. There is no money in the grant to do a project, it=s more someone to coordinate voluntary efforts in the Mud Creek Watershed which encompasses all of Mud Creek, all of Clear Creek, all the way to Edneyville.

Mr. Nicholson was concerned about the organizational issue, who is going to supervise this program. The City of Hendersonville is willing to do this project.

Following discussion, it was the consensus of the Board to roll this decision until December and let the new Board deal with it because of all the open issues and the possibility of setting up an additional committee and the length of time involved. The Board felt it important for the committee to formalize their structure and that there be designated appointees from the City, Environmental groups, and the County.

Mr. Nicholson will continue to work with the group and try to put together a proposal on how we could organize it.

INFORMAL PUBLIC COMMENTS

1. Dick Baird - Mr. Baird made a few farewell comments to Commissioners Ward and Gordon, thanking them for their service. He thanked the entire Board for the personal and professional courtesies they had rendered to him. He spoke briefly about the significant accomplishment list of this Board.

2. Don Bagwell - Mr. Bagwell was not present when we got to this point in the meeting.

3. Fielding Lucas - Mr. Lucas stated that he had been attending the Mud Creek Restoration Council for the past six months or so. He spoke briefly about the two reports on the state of the Mud Creek.

Recess

Chairman Moyer called a five minute technical recess to change videotapes.

PUBLIC HEARING - Community Development Block Grant Application

Commissioner Gordon made the motion for the Board to go into public hearing. All voted in favor and the motion carried.

Selena Coffey reminded the Board that Regency Development Associates, Inc. had requested that Henderson County apply for a NC Community Development Block Grant (CDBG) on their behalf for the adaptive reuse of the East Flat Rock School. This project will provide 25 units of affordable housing to senior citizens within the County.

This public hearing was held in order to allow for citizen participation in the planning process for the CDBG application. This public hearing was the first of two and allowed citizens to express views and proposals prior to the formulation of the application by Regency Development Associates, Inc. A second public hearing will be held December 2, after the application has been prepared but prior to its submission to the NC Division of Community Assistance.

This public hearing was advertised in the November 8, 2002 edition of the Times-News, which meets the requirements for adequate timing of public hearing notices.

Public Input

There was none.

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

No action was necessary at this time.

PUBLIC HEARING - US 25 South Corridor Study Proposed Zoning Map

Amendment R-40 to R-20

Commissioner Hawkins made the motion for the Board to go into public hearing. All voted in favor and the motion carried.

Josh Freeman reminded the Board that at the October 16, 2002 meeting, the Henderson County Board of Commissioners scheduled for today=s date a public hearing regarding a zoning map amendment proposed by the US 25 South Corridor Study. The proposed amendment would rezone an area south of Erkwood Drive and just west of US 25 South from an R-40 Estate Residential zoning district to an T-20 Low Density Residential zoning district. The Planning Board voted to send the Board of Commissioners a favorable recommendation on the proposed amendment on January 15, 2002.

In accordance with Section 200-76 of the Henderson County Ordinance and State Law, a Notice of Public Hearing regarding the proposed zoning map amendment was published in the Hendersonville Times-News on Tuesday, November 5, 2002 and Tuesday, November 12, 2002. The Planning Department sent notices of the hearing via first class mail to the property owners in the area of the proposed zoning, and to the owners of properties adjacent to the Subject Properties on Tuesday, October 29, 2002. Planning Staff posted signs advertising the hearing near the Subject Properties on Tuesday, October 29, 2002. The Planning Department also notified the Village of Flat Rock, the City of Hendersonville, and the US 25 South Corridor Study Committee of the hearing.

Staff had previously provided the Board with copies of the US 25 South Corridor Study as well as a revised set of recommendations for the portion of the study area that remains in the County=s planning jurisdiction. Staff respectfully requested that the Board members bring their copies of the Study and other previously distributed materials to the hearing.

Following the public hearing, Board action to approve, deny, or modify the proposed zoning map amendment for the US 25 South Corridor Study would be appropriate.

Public Input

1. James MacDonald - Mr. MacDonald wrote a letter to the Chairman which they received yesterday with four signatures asking that the zoning remain as is.

Chairman Moyer read Mr. MacDonald=s letter aloud.

2. Mayor Hicks, Flat Rock - Mayor Hicks felt that it would be appropriate to leave the lots on Rutledge Drive as R-40.

3. Mayor Niehoff, Hendersonville - Mayor Niehoff spoke briefly about the pros and cons of the zoning change. The City of Hendersonville has not taken a position on this.

4. Dixie Dellinger - Ms. Dellinger wished the zoning to remain as it currently is.

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

Following discussion, Commissioner Hawkins made the motion to deny the proposed zoning map amendment as presented. All voted in favor and the motion carried. The zoning will remain R-40 in the area.

PUBLIC HEARING - Environmental Assessment Mills River Sewer Extension

Gary Tweed made some introductory comments. Staff had been working on this project for a couple of years now and as part of the funding package they applied for some federal grants and were fortunate enough to receive those. We received a $1.5 million EPA grant. As part of the federal funding we are required to comply with the National Environmental Policies Act which requires us to do an environmental assessment of the project. The purpose of this hearing is to discuss the environmental assessment and to receive public input.

Henderson County proposes to construct gravity sewers in the Cane Creek Water and Sewer District of Henderson County. The Cane Creek Water and Sewer District includes the Mills River area which is located in northwestern Henderson County near the Buncombe County line. The Asheville Regional Airport is located approximately one-half mile to the northeast of the project=s beginning point. The Pisgah National Forest is located immediately to the west. The primary transportation routes in the area are US Hwy. 280 and NC Hwy. 191. This project is known as the Mills River Sanitary Sewer Extension and is located in the western portion of Henderson County. This extension is part of the Cane Creek Water and Sewer District owned and operated by Henderson County. The proposed project includes approximately five miles of pipeline and will connect to an existing sewer line that flows to a permitted facility, Metropolitan Sewerage District, Wastewater Treatment Plant. The purpose of the project is to eliminate waste water discharges and failing septic tank systems from use.

The Environmental Protection Agency requires that this EA be prepared and that the EA meet the National Environmental Policy Act 42, U.S.C. 4321 et seq. and its implementing regulations, 40 CFR Part 1500 et. seq. Construction of the sewers also requires the need for an Environmental Assessment (EA) under the State Environmental Policy Act (SEPA) because it involves:

C The expenditure of public funds

C Action by the state (permit)

C A potential affect upon natural resources, natural beauty, or historical or cultural elements of the state.

This EA provides an evaluation of the likely short and long-term effects associated with the project and the mitigation measures that are proposed to minimize or avoid these effects. Although the project consists of three phases, which will be constructed separately, this EA is intended to address all three phases of the Mills River Sanitary Sewer Extension.

Wastewater collected by this project will be treated at the existing Metropolitan Sewerage District. Wastewater Treatment Plan (WWTP) in Buncombe County. The Metropolitan Sewerage District WWTP has a permitted capacity of 40 million gallons per day (mgd). The average monthly flow at the plant in 2001 was approximately 19.4 mgd (MSD Annual Report, 2001). Since the proposed extension of the Cane Creek Sewer System represents an approximate flow of 0.19 mgd the WWTP has sufficient capacity to handle the flows of the proposed service area.

The proposed Mills River Interceptor sewer system is located near the South Mills River, U.S. Hwy. 280, and N.C. Route 191. The interceptor route lies within the 100-year floodplain of the French Broad River or Mills River. The primary use for the floodplain at this time is agricultural row crops. The connector lines which will serve the identified potential customers lie in upland areas above the 100-year floodplain. A large portion of the project area is located within designated Water Supply Watersheds. The watershed classification restricts the amount and types of development allowed.

If the proposed sewer system is not constructed, then Henderson County will not be able to collect and treat wastewater from the Mills River watershed and the projected growth will occur without adequate sewer facilities in place. The Ano action alternative@ is likely to be associated with more widespread environmental impacts, including additional private wastewater treatment systems and individual septic systems.

Mr. Tweed introduced Tom Jones from William Lapsley and Associates as our project engineer and Clement Riddle who did the environmental assessment.

Tom Jones stated that they are responsible for the design and routing and will see the project through to the end including the bidding and construction phases. The preliminary engineering report was part of the environmental package that was reviewed. The preliminary engineering report serves to analyze alternatives for this project. The purpose of the project is to provide public sewer service to a portion of Mills River. There are several individual wastewater treatment discharges located upstream of the intake for the Regional Water Authority Treatment Plant and if those could be eliminated, that would be good for the water quality of the Mills River. The Mills River Elementary School septic system is failing. The alternatives that were looked at were:

1. Do nothing which doesn=t meet any of the objectives

2. There=s a Regional Wastewater Treatment Plant option which offers a higher net present cost which means it is a more expensive project. You would also have to obtain a permit to discharge into the Mills River which is counterproductive to the whole purpose of the project.

3. Gravity sewer line extension which Gary Tweed had shared with the Board and is the preferred alterative.

Clement Riddle, a Principle Environmental Scientist with Clearwater Environmental Consultants, has been conducting environmental studies throughout North Carolina since 1991. He spoke to the Board about possible environmental concerns associated with the Mills River line extension and how they had been addressed. Mr. Riddle stated that they began studying the environmental issues over eight months ago. A large document had been produced with the results of these studies and has been on display for review for the last several weeks. The study looked at sixteen areas of concern including water quality, wetlands, land use, wildlife, and natural vegetation. Based on the environmental assessment, they believed that the Division of Water Quality will conclude that a finding of no significant impact is the appropriate decision for this project because potential impacts associated with this project are minor and are temporary in nature. Where necessary the project will implement mitigation measures that will prevent potential impacts on the environment. As part of the project planning environmental studies that were begun eight months ago include wetland delineations, endangered species surveys, land use evaluation, preliminary culture resources review and more. Based on the studies, they determined that this project would not have an adverse effect on the environment because of the following factors:

C The route was chosen on which no threatened or endangered species were present

C No in-stream activities will occur in designated trout waters during the spawning season

C Since 1995 approximately 400 septic systems in this area have failed and approximately 150 applicants for septic systems have been denied due to soil wetness

They believe water quality on the Mills River is likely to improve by removing individual septic systems and several point source dischargers. In wetland areas grades will be restored to pre-construction contours and re-vegetated with a mix of native wetland plants. All pipelines will be installed at or below grade at each stream crossing and pre-construction contours will be restored in affected areas. In order to minimize noise related disturbances to the local community construction activity will be limited to normal day-time hours. Sediment and erosion control measures will be installed and maintained between the construction site and any nearby downgradiant surface waters. To control dust that may become airborne due to construction activities, construction areas will be sprayed lightly with water when necessary.

Clearwater and other companies have conducted thorough environmental studies on sixteen areas of concern. The project design and construction will implement mitigation measures to prevent any potential adverse effects on the environment.

Chairman Moyer made the motion for the Board to go into public hearing concerning the Mills River Sanitary Sewer Extension Environmental Assessment. All voted in favor and the motion carried.

Public Input

There was none.

Chairman Moyer made the motion to close the public hearing. All voted in favor and the motion carried.

No action was necessary.

PUBLIC HEARING - Road Names

Commissioner Messer made the motion for the Board to go into public hearing. All voted in favor and the motion carried.

Rocky Hyder reminded the Board that at the November 4, 2002 meeting, the Board of Commissioners set a public hearing for the following road names for this date:

Old Name Proposed Name

Swoop Rd Bag End Rd

Vintage Lane Old Maxwell Rd

Clear Run Ct W. Leslie Way

Crest Dr Millard J Dr

Sharber Ln Brandy Knoll Dr

Portion of Ln Tobacco Rd

Frog Hollar Ln Hickory Cove Ln

Ironbark Ln Winterview Trl

Marion Dr J P Huggins Dr

New Road Names

Horizon View Dr

Kanuga Valley Ln

Hobe Crst

Peaceable Lane

Coggins Cv

Barnwell Acres Dr.

Ellaberry Trl

Hog Hill Dr

Justus Case Mtn. Pl

Mr. Hyder requested that Peaceable Lane be removed from the list, at the request of the property owners.

Public Input

1. Terrence L. Walz - Mr. Walz stated his preference for Marion Drive to stay as is, not to be changed to JP Huggins Dr.

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

Commissioner Hawkins made the motion to approve the list as presented with the deletion of Peaceable Lane. All voted in favor and the motion carried.

Recess

Chairman Moyer called a break for lunch. We had a luncheon planned in the small meeting room and those in attendance were invited to join. The luncheon was planned as a farewell for Commissioners Ward and Gordon.

Chairman Moyer called the meeting back to order and presented plaques to Commissioners Ward and Gordon for their service to Henderson County. This was their last official meeting on the Board.

David Nicholson thanked the two outgoing Commissioners on behalf of County Staff.

NC DOT Issues

Chairman Moyer presented an item that was brought to the last TAC (Transportation Advisory Committee) meeting by Ron Watson, Division Engineer at North Carolina Department of Transportation. They are looking for ways to improve the movement of cars, trucks, and pedestrians without building roads and came up with an interesting idea. The TAC endorsed the idea by Resolution and asked for an endorsement from the Village of Flat Rock, City of Hendersonville, and the County Board of Commissioners so they can begin the project. It may take a year or more to accomplish this.

Basically the idea is to reroute Hwy. #25 and take it over on I-26. Chairman Moyer showed the project on a map. There will be a Business #25 which will join #176 and go to the Connector which will be #225. Hopefully this will help deter truck traffic from coming through the middle of Hendersonville and from Flat Rock.

Commissioner Hawkins made the motion to direct the County Manager to draw up a Resolution in support of this project, final wording to be submitted for Commissioners= approval. All voted in favor and the motion carried.

Water Agreement

Chairman Moyer had just received something from the City of Asheville yesterday which had not been copied to the Board yet. The City Council met last Thursday evening in a workshop and reviewed the agreement that this Board sent to them. In general terms our agreement was to continue the existing agreement but that we would delete the section with respect to regional water lines only where we have this complicated formula and that they would give us $2 million in lieu of that for building water and sewer lines in that area. The City of Asheville considered that proposal and have responded back basically with three options:

1. Stay with the current agreement

2. Take our agreement and change the $2 million to $1.5 million and only one

representative from Henderson County on the water board.

3. Pay Henderson County $2 million and terminate the agreement.

Following much discussion, this Board was most willing to consider Option 2 but increase it to $2 million with the one seat on the board and Chairman Moyer will take this back to the City of Asheville. The Board had not had ample time to review the most recent agreement from Asheville and the Board was in agreement to continue this meeting to discuss this issue in more detail after reviewing that document.

IMPORTANT DATES

David Nicholson reminded the Board that December 14 is the Christmas Parade for the Town of Fletcher. The Board has been asked to ride in that parade.

David Nicholson proposed that the Board hold a Bid Bond Hearing on December 18 at 11:00 a.m. Commissioner Hawkins made the motion to do so. All voted in favor and the motion carried.

CANE CREEK WATER & SEWER DISTRICT - no business

CLOSED SESSION

Chairman Moyer made the motion for the Board to go into closed session as allowed pursuant to NCGS 143-318.11 for the following reasons:

1. (a)(1) To prevent disclosure of information that is privileged or confidential pursuant to the law of this State or of the United States, or not considered a public record within the meaning of Chapter 132 of the General Statutes, in accordance with and pursuant to NCGS 143-318.10(e) and Article II of Chapter 11 of the Henderson County Code.

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

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

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

All voted in favor and the motion carried.

ACTION FOLLOWING CLOSED SESSION

I. Commissioner Hawkins made the motion that the following closed session minutes and general accounts be hereby approved and shall be deemed sealed as provided by section 11-6 of the Henderson County Code:

1. Minutes and general account for the closed sessions held on March 28, 2002,

September 18, 2002, October 7, 2002, and November 4, 2002 (Only items discussed pursuant to NCGS 143-318.11(a)(6) and Item discussed pursuant to NCGS 143-318.11(a)(5&6)), each as revised during the November 20, 2002 closed session. The Clerk was authorized to correct any typographical errors discovered subsequent to the November 20, 2002 closed session.]

All voted in favor and the motion carried.

II. Commissioner Hawkins made the motion that the closed session minutes and general account reflecting discussions of the specific items listed below were hereby unsealed:

1. April 1, 2001, Item discussed pursuant to NCGS 143-318.(a)(3), To consult with an attorney 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 the City of Asheville [Henderson County File No. 01-CVS-344].

2. March 20, 2002, Item discussed pursuant to NCGS 143-318.11(a)(3), To consult with an attorney 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 the City of Asheville [Henderson County File No. 01-CVS-344].

3. March 11, 2002, Item discussed pursuant to NCGS 143-318.11(a)(1), Privileged or confidential information (Minutes).

4. February 20, 2002, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industries or businesses (Meritor).

5. February 20, 2002, Item discussed pursuant to NCGS 143-318.11(a)(1), Privileged or confidential information (Minutes).

6. February 20, 2002, Item discussed pursuant to NCGS 143-318.11(a)(3), Consult with an attorney with respect to a claim: Henderson County and Cane Creek Water and Sewer District v. Asheville-Buncombe-Henderson Water Authority.

7. February 20, 2002, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industries or businesses (Printpack).

8. December 19, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Information that is privileged or confidential - Closed Session Minutes.

9. November 14, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Closed Session Minutes.

10. November 5, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Closed Session Minutes.

11. October 17, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), Henderson County, et al. v. Asheville-Buncombe-Henderson Water Authority, et al., 01-CVS-344.

12. October 17, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), Henderson County, et al. v. Asheville-Buncombe-Henderson Water Authority, et al., 01-CVS-344.

13. August 15, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), To consider and give instructions to the attorney concerning the handling or settlement of the following lawsuit: Village of Flat Rock v. Swing and Henderson County, 00-CVS-1189.

14. September 10, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), To prevent disclosure of information that is privileged or confidential pursuant to the law of this State or of the United States, or not considered a public record within the meaning of Chapter 132 of the General Statutes as allowed by and pursuant to NCGS 131E-97.3.

15. September 10, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Closed Session Minutes.

16. September 19, 2001, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industry.

17. September 19, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Confidential Information - unsealing of closed session minutes.

18. September 19, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Closed Session Minutes.

19. August 6, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), Henderson County et al. v. Asheville-Buncombe-Henderson Water Authority, et al. (Henderson County, 01-CVS-344).

20. July 25, 2001, Item discussed pursuant to NCGS 143-318.11(a)(1), Review of closed session minutes.

21. June 20, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), 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: Bobby W. Finley v. Henderson County; Commissioners; Sheriff and Jail (US District Court, Western District, Asheville Division, 1:01CV86-MU).

22. May 16, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), Consult with Attorney with respect to: Mary L. Hensley vs. Henderson County and Henderson County Department of Social Services [Hend. Co. File No. 01 CVS 168].

23. May 16, 2001, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industries (Borg Warner).

24. May 7, 2002, Item discussed pursuant to NCGS 143-318.11(a)(3), 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: Sheila Penland Olvera, Administratrix of the Estate of Rigoberto Olvera Briones vs. Randall Thomas Edmundson, Douglas McGuinn, George H. Erwin, Jr., Sedgwick of the Carolinas, and Henderson County (US Dist., Western District, Civil No. 0:01 CV74-C).

25. April 30, 2001, Item discussed pursuant to NCGS 143-318.11(a)(3), 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: HENDERSON COUNTY AND CANE CREEK WATER AND SEWER DISTRICT vs. ASHEVILLE-BUNCOMBE-HENDERSON WATER AUTHORITY; BUNCOMBE COUNTY; and CITY OF ASHEVILLE 01-CVS-344.

All voted in favor and the motion carried.

III. Commissioner Messer made the motion that the closed session minutes and general account reflecting discussions of the specific items listed below are approved as revised during the closed session of November 20, 2002, and were hereby unsealed: (The Clerk was authorized to correct any typographical errors discovered):

1. May 2, 2002, Item discussed pursuant to NCGS 143-318.11(a)(3), 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 the City of Asheville [Henderson Co. File No. 01-CVS-344].

2. May 2, 2002, March 11, 2002, Item discussed pursuant to NCGS 143-318.11(a)(1), To review and approve closed session minutes.

3. June 19, 2002, Item discussed pursuant to NCGS 143-318.11(a)(4), Expansion or location of business or industry (Liquidlogic).

4. July 8, 2002, Item discussed pursuant to NCGS 143-318.11(a)(1), Privileged or confidential information (Minutes).

5. October 16, 2002, Item discussed pursuant to NCGS 143-318.11(a)(3), To consult with an attorney employed or retained by the public body in order to consider and give instructions to the attorney with respect to a claim: Appeal of GE Lighting Systems Inc. (Personal) 1993-1998, Henderson County 99-PTC-492, Appeal of GE Lighting Systems Inc. (Real) 1993-1998, Henderson County 99-PTC-493 Appeal of GE Lighting Systems Inc. (Real) 1999, Henderson County 99-PTC-494 Appeal of GE Lighting Systems Inc. (Personal) 1999, Henderson County 99-PTC-15.

6. July 24, 2002, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industries or other businesses in the area served by the public body (Liquidlogic).

7. August 5, 2002, Item discussed pursuant to NCGS 143-318.11(a)(4), Location or expansion of industry or other businesses in the area served by the public body (Liquidlogic).

8. November 4, 2002, Item discussed pursuant to NCGS 143-318.11(a)(1&3) Closed Session Minutes.

All voted in favor and the motion carried.

IV. A proposed employment agreement with the County Manager was distributed for the Board=s consideration. The purpose of the agreement was to require the County Manager to give to the Board notice if he would like to leave the employment of the county at any time. Recognizing his many years of service to the community, the Board thought it would be advisable to require a notice period particularly as he approaches mid-life and possible retirement. In return for that, the Board wanted to consider a severance package for the County Manager in the event that he was terminated for some reason. The agreement has a three-year term and at the end of the three years the employment relationship would resume as is, being governed only by applicable laws.

Commissioner Ward made the motion to approve the employment agreement with Mr. Nicholson and authorize it to be executed by the Chairman and the Clerk to the Board. All voted in favor and the motion carried.

Chairman Moyer made the motion to continue this meeting until Tuesday, November 26^th (including closed session) at 11:00 a.m. at this location. All voted in favor and the motion carried.

Attest:

Elizabeth W. Corn, Clerk to the Board William L. Moyer, Chairman