MINUTES

STATE OF NORTH CAROLINA BOARD OF COMMISSIONERS

COUNTY OF HENDERSON DECEMBER 1, 2003

The Henderson County Board of Commissioners met for a regularly scheduled meeting at 5:30 p.m. in the Commissioners' Conference Room of the Henderson County Office Building.

Those present were: Chairman Grady Hawkins, Vice-Chairman Larry Young, Commissioner Bill Moyer, Commissioner Charlie Messer, Commissioner Shannon Baldwin, 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, Budget and Management Director Selena Coffey, Public Information Officer Chris S. Coulson, Fire Marshal Rocky Hyder, and Finance Director J. Carey McLelland. Deputy Clerk to the Board Amy Brantley was present through nominations.

CALL TO ORDER/WELCOME

Elizabeth Corn called the meeting to order and welcomed all in attendance.

PLEDGE OF ALLEGIANCE

Two boyscouts from Troop #605 came forward and led the Pledge of Allegiance to the American Flag.

INVOCATION

David Nicholson gave the invocation.

ELECTION OF CHAIRMAN

Mrs. Corn explained that it was the annual organizational meeting and therefore the first order of business was to elect a Chairman for the coming year. She opened the floor to nominations.

Commissioner Young nominated Commissioner Hawkins.

Commissioner Messer nominated Commissioner Moyer.

There were no other nominations. Mrs. Corn polled the Board and Commissioner Hawkins got three of the five votes for Chairman. Mrs. Corn turned the meeting over to Chairman Hawkins.

ELECTION OF VICE-CHAIRMAN

Chairman Hawkins stated that the next order of business was to elect a Vice-Chairman. He nominated Commissioner Young for Vice-Chairman. There were no other nominations. Chairman Hawkins made the motion to accept Mr. Young by acclamation. All voted in favor and the motion carried.

REVIEW OF PUBLIC OFFICIAL’S BONDS

Chairman Hawkins stated that the next order of business was to review and approve bonds for county public officials.

The following are the county officials required to be bonded and the current bond amounts:

George H. Erwin, Jr., Sheriff $ 25,000

Nedra Whitlock Moles, Register of Deeds $ 50,000

Terry F. Lyda, Tax Collector $1,000,000

Darlene B. Burgess, Deputy Tax Collector $ 250,000

J. Carey McLelland, Finance Director $ 200,000

The County Attorney had reviewed these bonds and reported to the Board that they appear to be valid and in order.

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

DISCUSSION/ADJUSTMENT OF AGENDA

Commissioner Messer asked that an item be added as “D” under Staff Reports - “Resolution – Mental Health – sale of a house”.

Angela Beeker requested that the Board add a closed session item to consult with the County Attorney.

David Nicholson asked that one item be added as “J” under the consent agenda – “Request for an Improvement Guarantee for Highlander Woods”.

There were no other adjustment requests.

Chairman Hawkins made the motion to accept the revised agenda. All voted in favor and the motion carried.

CONSENT AGENDA

Chairman Hawkins asked that one item be pulled from the consent agenda for discussion – “G – Sewer Line Extensions” (see below). Chairman Hawkins had some questions that were answered.

Chairman Hawkins made the motion to approve the consent agenda. All voted in favor and the motion carried. The consent agenda consisted of the following:

Tax Collector’s Report

Terry F. Lyda, Henderson County Tax Collector, had submitted the Tax Collector’s Report dated November 26 for the Board’s information.

Proposed Franchise

Staff had submitted the proposed franchise for Mission Health, Inc., for the provision of interfacility special transport service, air ambulance service, and mutual-aid emergency transport service in Henderson County. The Board voted to approve the application at the November 19 meeting. However, to be effective, an ordinance granting a franchise must be approved at two regular meetings of the Board of Commissioners. The draft was approved for the first time on November 19, 2003. It must be approved at this meeting in order to be effective.

Note: The application was submitted in the name of Mission St. Joseph’s Health System, Inc; however effective December 1, 2003, the name will change to Mission Health Inc. Therefore the franchise is in the name of Mission Health, Inc.

Financial Report – October 2003

Cash Balance Report – October 2003

These two reports were presented for information and consent approval.

Non-departmental expense includes annual property/liability and worker’s compensation insurance premiums paid to the NCACC Risk Management Pools. $204,117 of this expense was allocated out to departments in October. The remaining $153,048 in expense will be allocated out to all departments prior to fiscal year end.

The County Services Building Project deficit is due to architectural fees, demolition/abatement and utility line relocation work performed at the former Carolina Apparel Building. It is anticipated that these costs will be recouped from financing proceeds for the project in 2004.

The $10,623 deficit reported in the Mills River Sewer Project is temporary due to a timing difference in the expenditure of funds and the subsequent requisition of funds to reimburse these expenditures from the State Clean Water Management Trust Fund and the federally awarded EPA Grant.

Henderson County Public Schools Financial Report – October 2003

The report was presented for information and consent approval.

Update on County Comprehensive Plan and Other Major Planning Initiatives

Staff had provided the issue update which summarized the tasks related to the CCP and the other major planning initiatives that occurred over the past month. The update also included anticipated actions for the coming month. No action was required.

Sewer Line Extensions

The City of Hendersonville had requested County comments on two proposed sewer line extensions:

1. Parkside Commons Sewer Line Extension

345 linear feet of 8: SDR-35 PVC sewer line and a pump station.

This project has been reviewed under the County Zoning Ordinance and the County Land Use Plan. The Water and Sewer Department supported the additional connections and recommended approval of the project contingent upon approval of the final plans and specifications from the Water and Sewer Department.

2. Dana Elementary School Sewer Line Extension

15,400 linear feet of 4” DI Class 350 sewer line and a pump station.

The Dana Elementary School property and all property along the proposed sewer line is zoned Open Use by the County. The paperwork from the City of Hendersonville indicates that three additional pump stations from other private establishments may be connected to the proposed sewer line. Such private establishments, depending on their use and if they would be new or expansions to existing uses, may be subject to requirements of the Open Use district and other applicable ordinances.

It does not fully conform because the Urban Services Area map in the 1993 Land Use Plan did not anticipate that public utilities would be available to the site of Dana Elementary School during the Plan’s 10-year span, however, the Urban Services Area map shows utilities were expected to serve portions of Sugarloaf Road and all of Dana Road, to the intersection of Dana Road and Upward Road/Ridge Road. The Land Use Plan map in the 1993 Plan designates most of the land on the south side of Sugarloaf Road for “Residential” uses and much land on the north side for “Agriculture” uses.

The Water and Sewer Department supported the additional connections and recommended approval of the project contingent upon approval of the final plans and specifications from the Water and Sewer Department.

Petitions for addition to State Road system

Staff had received petitions to add the following two roads to the State Maintenance system:

1. Eagle Chase Lane in Eagle Chase Subdivision

2. Talon Trail Lane in Eagle Chase Subdivision

It has been the practice of this Board to accept road petitions and forward them to NC DOT for their review. It has also been the practice of the Board not to ask NC DOT to change the priority for roads on the paving priority list.

Mountain Area Workforce Agreement

Henderson County has been a member of the Mountain Area Workforce Development Board for several years. This Board had requested that the county governments update the consortium agreement. Basically, the new agreement deleted some programs that are no longer in operation. The County Manager recommended approval of this request.

Highlander Woods Subdivision – Request for Improvement Guarantee

Mr. Jack Houtman, on behalf of Habitat for Humanity, had submitted an application for an improvement guarantee for a proposed subdivision Habitat is developing known as Highlander Woods. The subdivision is being constructed off of Stepp Road and will contain 20 lots. The Planning Board granted conditional approval of the combined Master Plan and Development Plan for the project on July 16, 2002. The improvement guarantee is proposed to cover remaining road improvements consisting of the installation of asphalt paving on South Highlander Drive, the only road within the subdivision.

Pursuant to Section 170-38 of the Henderson County Code, a developer may, in lieu of completing all of the required improvements prior to Final Plat approval, post a performance guarantee to secure the County’s interest in seeing that satisfactory construction of incomplete improvements occurs. One type of permitted guarantee is the deposit of cash or certified funds. The developer intends to deposit with the County such funds in the amount of $20,812.50, which includes the cost of the remaining improvements ($16,650.00) as well as the required twenty-five percent contingency ($4,162.50). The proposed completion date for the improvements is July 31, 2004.

A draft Performance Guarantee Agreement was submitted for the Board’s consideration. If the application is approved, the developer must deposit with Henderson County cash or certified funds in accordance with the terms of the Agreement. Once such funds are received by the County, the (Assistant) County Attorney must certify the Agreement as to form prior to its execution by the Chairman and the developer.

The County Manager recommended that the Board approve the application for an improvement guarantee for Highlander Woods subdivision, subject to the developer depositing cash or certified funds with the County in accordance with the terms of the draft Performance Guarantee Agreement.

NOMINATIONS

Notification of Vacancies

The Board was notified of the following vacancies which will appear on the next agenda for nominations:

1. Planning for Older Adults Block Grant Advisory Committee – 15 vac.

2. Travel and Tourism Committee – appointment of a Chairman.

Nominations

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

1. Apple Country Greenways Commission – 1 vac.

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

2. Community Child Protection Team – 1 vac.

Chairman Hawkins nominated Scott Justus to fill position #6. There were no other nominations. Chairman Hawkins made the motion to accept Mr. Justus by acclamation. All voted in favor and the motion carried.

3. Downtown Hendersonville Inc. – 1 vac.

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

4. Henderson County Planning Board – 1 vac.

The following three persons were nominated on 11/l9/03: Frankie Sitton, Vivian Armstrong, and Spence Campbell. Commissioner Baldwin had talked with Mr. Campbell since that time and Mr. Campbell indicated that he did not wish to serve at this time. Commissioner Baldwin withdrew Spence Campbell as a nominee.

The Clerk polled the Board. There were two nominees for one vacancy. The vote was as follows:

Commissioner Moyer - Vivian Armstrong

Commissioner Messer - Vivian Armstrong

Chairman Hawkins - Vivian Armstrong

Commissioner Young - Frankie Sitton

Commissioner Baldwin - Vivian Armstrong

5. Juvenile Crime Prevention Council – 3 vac.

There were no nominations at this time so this item was rolled to the next meeting. Ms. Brantley was asked to check with the District Attorney’s office about a suggestion for position # 3.

6. Nursing/Adult Care Home Community Advisory Committee – 5 vac.

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

7. Senior Volunteer Services Advisory Council – 2 vac.

Chairman Hawkins nominated Ruth Miller to fill position #1. There were no other nominations at this time. Chairman Hawkins made the motion to accept Ms. Miller by acclamation. All voted in favor and the motion carried.

8. Solid Waste Advisory Committee – 1 vac.

Chairman Hawkins nominated Chuck Garrett. Commissioner Baldwin nominated Katie Breckheimer. The vote will be taken at the next meeting.

9. Travel and Tourism Committee – 1 vac.

Lucy King and Eleanor Michalove were nominated on 11/03/03. There were no other nominees at this time. The Clerk polled the Board and the vote was as follows:

Commissioner Moyer – Lucy King

Commissioner Messer - Lucy King

Chairman Hawkins - Eleanor Michalove

Commissioner Young - Eleanor Michalove

Commissioner Baldwin - Lucy King

RATE MODIFICATION PROPOSAL – Fletcher Elementary School Debt

Carey McLelland reminded the Board that in February 2000, the Board approved a financing package for the construction of a new Fletcher Elementary School. The $6.750 million financing was awarded to Branch Banking and Trust (BB&T) for a 20-year term at a bank-qualified rate of 5.61 percent. Bank-qualified means the County anticipated that it would not be issuing more than $10 million in installment contract debt in calendar year 2000.

BB&T proposed a rate modification on this existing elementary school loan. The interest rate would be lowered to 4.19 percent resulting in total interest savings of $641,659 over the remaining term of 17 years and a reduction in the annual debt service payments of $75,482 on this loan for Fiscal Year 2005.

A summary of the rate modification, BB&T’s proposal and revised amortization schedule and a draft rate modification agreement were included for Board review. The new annual interest rate and the corresponding modified amortization table only are affected by this agreement. No other terms of the original agreement will change.

No formal application to the Local Government Commission (LGC) is required to do a rate modification on an existing loan as long as the term and amount borrowed does not change. The Board of the LGC reviews rate modifications as informational items only.

Staff requested that the Board set a public hearing on the proposed rate modification agreement with BB&T to allow for public comment on the document and then consider accepting and approving the execution of the agreement after the public hearing. After the public hearing, Mr. McLelland will have final documents and a resolution for the Board to consider approving.

The County Manager proposed that the Board set the public hearing on the proposed rate modification agreement for December 17 at 11:00 a.m.

Chairman Hawkins made the motion to set the public hearing for December 17, 2003 at 11:00 a.m. All voted in favor and the motion carried.

STATE ADM FUND APPLICATION

Carey McLelland reminded the Board that Phase II of the Mills River Sewer Project budget includes an appropriation of $240,000 in State ADM Fund revenues to pay for the construction of a collector sewer line running from the Phase I main interceptor to Mills River Elementary School. Staff requested that the Board consider approving the ADM Fund application that has previously been approved by the Board of Public Education at their November 10 meeting.

The County Manager stated it would be appropriate for the Board to approve the ADM Fund application as presented at this meeting. An application to use State ADM funds requires approval from both the Board of Commissioners and the Board of Public Education.

Mr. McLelland stated that the local match would be $80,000 which would be taken from the Cane Creek Water and Sewer District Enterprise Fund. Much discussion followed regarding whether or not it would be appropriate to take the matching funds from the CCWSD funds or take them from the county’s general fund.

Chairman Hawkins made the motion to approve the application as presented pending the outcome of the January 8 Cane Creek Water and Sewer Advisory Committee meeting. The Board would need to revisit the issue after the January 8 meeting in Fletcher. A vote was taken and the motion carried four to one with Commissioner Moyer voting nay.

CLOSED SESSION

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

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

All voted in favor and the motion carried.

INFORMAL PUBLIC COMMENTS

There were none.

STRATEGIC PLAN – COUNTY ECONOMY

Mr. Nicholson reminded everyone that at the Board’s retreat that began development of the Henderson County Strategic Plan, the Board developed strategies for two of the Issues. However, there were no strategies for the County Economy Issue’s Goals. The purpose of this agenda item was to develop the strategies for these Goals. Discussion followed regarding issue #3.

ISSUE 3 – COUNTY ECONOMY

Goal 3.1: To maintain a balance between the segments of our local economy (tourism, agriculture, industrial development, retirement, etc.)

Analyze the effect of the CCP on the local economy

Year 2007 Reassessment/Revaluation

Discover current balance – discuss mix

Define areas – Lockwood Green Study

Housing costs, Health care costs, Land cost, etc.

Revisit economic development incentive guidelines

Goal 3.2: To maintain existing industry in the County.

Work closely with Chamber of Commerce

Chamber visits to industries: Needs of industry ?

Cooperate

Participate

Goal 3.3: To provide proactive planning for utility development.

Encourage Water/Sewer Committee Master Sewer Plan

Establish link between 4 areas of economy and utilities

Analyze relationships between utilities and schools

Use of utilities and relationship of our natural resources/environment

Goal 3.4: To pursue joint efforts for intergovernmental, public-private, and regional partnerships in economic development.

Pursue partnership, based on new legislation with other governmental bodies

Encourage dialogue with other governmental units

Solid Waste

Roads

Water

Excursion Train/Train Service

Utilize our location as regional site – upstate S.C. (public-private partnerships)

High Speed Internet

County Staff/Management Team will work on these goals and strategies and massage them into workable sentences. Some of them may end up as action steps. Staff will bring this back to the Board and then the items will have to be calendared.

IMPORTANT DATES

There was some discussion about the tentative schedule the Clerk had prepared for Commissioner meetings for 2004. There are sometimes conflicts with a couple of NACO meetings in March and July. Commissioners will consult their personal calendars to see if they may plan to attend one or more of those NACO meetings, necessitating a change in the scheduling of Board meetings.

Mr. Nicholson spoke briefly about the Hendersonville Christmas Parade and the Fletcher Christmas Parade and informed the Board where and when to meet to ride in those parades.

ADJOURN

Chairman Hawkins made the motion to adjourn the meeting at 7:30 p.m. All voted in favor and the motion carried.

Attest:

Elizabeth W. Corn, Clerk to the Board Grady Hawkins, Chairman