MINUTES
 
WATAUGA COUNTY BOARD OF COMMISSIONERS
TUESDAY, MAY 18, 2004
 
            The Watauga County Board of Commissioners held a regular meeting on Tuesday, May 18, 2004, at 7:00 P.M. in the Board Room of the Watauga County Courthouse.
 
                        PRESENT:       James Coffey, Chairman
                                                Jimmy Hodges, Vice-Chairman
                                                David Blust, Commissioner
                                                Keith Honeycutt, Commissioner
                                                Allen Trivette, Commissioner
                                                Rebecca Eggers-Gryder, County Attorney
                                    Robert E. Nelson, Jr., County Manager
                                    Deron Geouque, Assistant County Manager
                                    Anita Fogle, Clerk to the Board
 
            Chairman Coffey called the meeting to order at 7:01 P.M. welcoming those in attendance.
 
            A moment of silence was observed.
 
APPROVAL OF MINUTES
 
            Chairman Coffey called for additions and/or corrections to the May 3, 2004, regular meeting and closed session minutes.
 
            Commissioner Honeycutt, seconded by Commissioner Blust, moved to approve the May 3, 2004, regular meeting and closed session minutes as presented.
 
VOTE:    Aye-5
               Nay-0
 
APPROVAL OF AGENDA
 
            Chairman Coffey called for additions and/or corrections to the May 18, 2004, agenda.
 
            County Manager Nelson requested to add an item for discussion under closed session in reference to Land Acquisition, per G. S. 143-318.11(a)(5)(i).
 
Commissioner Blust, seconded by Commissioner Honeycutt, moved to approve the May 18, 2004, agenda as amended.
 
VOTE:    Aye-5
               Nay-0
 
PUBLIC HEARING – NC DEPARTMENT OF TRANSPORTATION’S SECONDARY ROADS PROGRAM
 
            A public hearing was opened at 7:04 P.M. to consider the North Carolina Department of Transportation’s (NCDOT) proposed Secondary Road Improvement Program for Fiscal Year 2005.
 
            Chairman Coffey turned the meeting over to Mr. Sam Erby, Board of Transportation Member for Division 11. Mr. Erby introduced the following NCDOT staff who was present: Mr. Mike Pettyjohn, Division Engineer; Mr. Charles Reinhardt, Division Maintenance Engineer; Mr. Kipp Turner, District Engineer; Mr. Ivan Dishman, Assistant District Engineer; Mr. Kevin Whittington, Watauga County Maintenance Engineer; Mr. Brandon Greer, District R/W Agent and Mr. Mike Smith, Road Maintenance Supervisory for Watauga County.
 
            Mr. Pettyjohn explained the priority formula for paving and improving secondary roads and improvements to unpaved roads.
 
            Mr. Pettyjohn stated that funds available for the Fiscal Year 2005 Secondary Roads Program included $2,501,708 in secondary road funds and $2,601,154 in trust funds for a total of $5,102,862.
 
            Mr. Whittington reviewed the proposed program for Watauga County. Of the $5,102,862 allocated, $2,830,000 was to be used for paving unpaved roads, $1,436,000 for paved road improvements, $378,532 for unpaved road improvements, $254,113 for other paved and unpaved road improvements, and $204,217 in reserve for road additions, surveys, right of way signatures, overdrafts, and entrances to fire departments and rescue squads.
 
            Chairman Coffey called upon those present for comments. Mr. Larry Trivette inquired about Peoria Road.
 
            Mr. Pettyjohn requested the Board take one of the following actions:
 
            1) concur with the secondary roads plan as presented
            2) take no action
            3) recommend changes (as long as they did not deal with paving or paving priorities)
 
            There being no further public comment, Chairman Coffey declared the public hearing closed at 7:18 P.M.
 
            Commissioner Blust seconded by Commissioner Trivette, moved to approve the NC Department of Transportation’s Secondary Road Plan for Fiscal Year 2005.
 
VOTE:    Aye-5
               Nay-0
 
PUBLIC HEARING – NC DIVISION OF COMMUNITY ASSISTANCE GRANT REQUEST
 
Chairman Coffey declared the public hearing open at 7:18 P.M. to allow for comment to consider submission of an application for $50,000.00 in Community Development Block Grant funds to establish a demonstration program for entrepreneurship development.
 
Mr. Joe Furman, Economic Development Director, stated that the public hearing was scheduled to allow public comment on the County’s grant application to the NC Rural Economic Development Center. The purpose of the grant was for entrepreneurship development. Mr. Furman stated that the County was partnering with the Appalachian Regional Development Institute (ARDI) in submitting the grant application. A local in-kind match was required and was to be met with Mr. Furman’s and ARDI’s staff time. 
 
Mr. Furman stated that as the origin of the funds was the Community Development Block Grant a second public hearing was required. 
 
            There being no public comment, Chairman Coffey declared the public hearing closed at 7:23 P.M.
 
            By consensus, the Board set the second public hearing for the June 7, 2004, meeting.
 
PUBLIC HEARING – WATAUGA MEDICAL CENTER PROPOSED BYLAW CHANGES AND LEASE EXTENSION REQUEST
 
Chairman Coffey declared the public hearing open at 7:24 P.M. to allow for comment on the proposed amendments to the Watauga County Medical Center Board of Directors bylaws. Also, comments were to be taken on the proposed bylaws and Articles of Incorporation for the Appalachian Regional Healthcare System, Inc. 
 
Mr. Paul Miller with the Watauga Medical Center Board of Directors made two requests based on the intent of Watauga Medical Center to assume oversight in the operations of Cannon Hospital in Avery County. The first request involved the intention of the Medical Center to create a new 501(c) 3 umbrella corporation entitled Appalachian Regional Healthcare System, Inc. (ARHS, Inc.), that was to have management oversight over both Watauga Medical Center, Inc., and Cannon Hospital, Inc. The Watauga Medical Center Board of Directors was to continue to function and the membership automatically served as majority members of the new Regional Healthcare System Board. Therefore, the Watauga County Commissioners retained appointment authority over both the majority of the new Board and the existing Watauga Medical Center, Inc. Board.
 
The second request was for an extension on the lease. In order to make the assimilation of Cannon Hospital an economically viable project, the current lease for the Watauga Hospital from Watauga County to the Medical Center Board was requested to be extended to thirty years effective June 1, 2004. 
 
 
County Attorney Eggers-Gryder reviewed the purposed amendments and new bylaws and articles of incorporation. 
 
            There being no public comment, Chairman Coffey declared the public hearing closed at 7:34 P.M.
 
            Vice-Chairman Hodges, seconded by Commissioner Trivette, moved to approve the proposed amendments to the Bylaws of Watauga Medical Center and the proposed Bylaws and Articles of Incorporation of Appalachian Regional Healthcare System, Inc., and lease extension beginning June 1, 2004, and continuing for 30 years.
 
VOTE:    Aye-5
               Nay-0
 
PUBLIC HEARING – FISCAL YEAR 2005 BUDGET
 
Chairman Coffey declared the public hearing open at 7:37 P.M. to allow for comment on the Manager’s recommended budget for FY 2005.
 
County Manager Nelson reviewed the proposed budget with changes made during recent budget work sessions.
 
            The following individuals addressed the Board regarding the recommended budget:
 
Mr. Reginald Hassler, Boone Fire Department
Ms. Karee Teague, Cooperative Extension
Ms. Diane Deal, Cooperative Extension
Ms. Donna Soule, Watauga Youth Network
Ms. Angie Brown, Watauga Youth Network
Mr. Paul Supina, Watauga Youth Network
Ms. Kerry Hogan, Watauga Youth Network
Ms. Jennifer Herman, Oasis
Ms. Lynne Mason, WeCAN
Mr. Jim Thompson, WeCAN and Hospitality House
Ms. Cherry Johnson, Watauga County Arts Council
Ms. Wanda Brooks, Appalachian Senior Programs/Foster Grandparents
Ms. Debbie Wellborn, Appalachian Senior Programs/Foster Grandparents
Ms. Carrie Blankenship, Appalachian Senior Programs/Foster Grandparents
Ms. Rosa Auton, Appalachian Senior Programs/Foster Grandparents
Ms. Shirley Deck, Appalachian Senior Programs/Foster Grandparents
Mr. Lester Bradshaw, Appalachian Senior Programs/Foster Grandparents
Mr. Joedy Eller, Boone Area Chamber of Commerce
 
            Each individual briefly discussed their concerns regarding the Recommended Budget for Fiscal Year 2005.
 
            There being no further public comment, Chairman Coffey declared the public hearing closed at 8:25 P.M.
 
            Board action was not required and none was taken.
 
BREAK
 
            A short recess was taken. The meeting resumed at 8:31 P.M.

WATAUGA  COUNTY COURTHOUSE ADDITION UPDATE

            Mr. Jack Hemphill reviewed plans and associated costs with the proposed 8,000 square foot Courthouse addition.  Mr. Hemphill used part of the large courtroom for additional secure office space concurrent with the proposed addition.  The Manager stated that he had polled the user groups regarding decreasing the space in the large courtroom.  The County Manager stated that to date the Superior Court Judges, Clerk of Court, District Attorney and County Staff were of the opinion that the space would be best used as additional office space.  County Attorney Eggers-Gryder stated that the Bar Association was not in favor of decreasing the space in the Courtroom.

            The Board requested that Mr. Hemphill rework the drawings by slightly reducing the amount of space taken from the large courtroom to preserve a seating capacity of 240-250 and tabled further discussion till the June 7, 2004, meeting at which time Mr. Hemphill’s new drawing could be reviewed.
 
POOL COMPLEX CHANGE ORDER REQUEST
 
            Mr. Robert Marsh reported the progress to date on the pool complex repairs and also requested approval of a change order. Mr. Marsh stated that upon draining the diving pool, structural problems coupled with extreme cracks prevented the renovation of the diving pool as is. The original proposal in the pool renovation was to decrease the depth of the diving well to approximately 4 feet to allow for use as an adult exercise pool and also for swimming lessons predominantly for children. This allowed the lap pool to be maintained at a lower temperature that was preferred by both the swim team and exercise swimmers.  The amount of the change order to retrofit the diving pool as originally proposed was $36,807, which increased the total contract for the project to $370, 000.
 
Mr. Marsh stated that a second change order was to be forthcoming to address required changes to flood proof the building’s electrical room.
 
            Commissioner Honeycutt, seconded by Commissioner Blust, moved to approve the change order as presented with funds being allocated from the project’s contingency fund.
 
VOTE:    Aye-5
               Nay-0
 
BUDGET AMENDMENTS
 
Ms. Isaacs presented the following budget amendments for Board approval:
 
            Account #                    Description                                                           Debit             Credit
283101-312301           Taxes Ad Valorem-03-04                                                        $7,000
284340-469901           Admn. Cost Reimb.-Foscoe                              $7,000
283101-312304           Taxes Ad Valorem-03-04                                                        $5,000
284340-469904           Admn. Cost Reimb.-Beaver Dam                      $5,000
283101-312306           Taxes Ad Valorem-03-04                                                        $4,200
284340-469906           Admn. Cost Reimb.-Zionville                             $4,200
283101-312305           Taxes Ad Valorem-03-04                                                        $3,000
284340-469905           Admn. Cost Reimb.-St. Simmons                      $3,000
283101-312307           Taxes Ad Valorem-03-04                                                        $8,700
284340-469907           Admn. Cost Reimb.-Cove Creek                       $8,700
283101-312308           Taxes Ad Valorem-03-04                                                        $2,500
284340-469908           Admn. Cost Reimb.-Shawneehaw                     $2,500
283101-312309           Taxes Ad Valorem-03-04                                                        $4,000
284340-469909           Admn. Cost Reimb.-M. Camp                           $4,000
283101-312310           Taxes Ad Valorem-03-04                                                        $2,500
284340-469910           Admn. Cost Reimb.-Deep Gap                          $2,500
283101-312311           Taxes Ad Valorem-03-04                                                        $3,500
284340-469911           Admn. Cost Reimb.-Todd                                 $3,500
283101-312312           Taxes Ad Valorem-03-04                                                        $7,700
284340-469912           Admn. Cost Reimb.-B. Rock                             $7,700
283101-312319           Taxes Ad Valorem-03-04                                                           $500
284340-469919           Admn. Cost Reimb.-Creston                                $500
243120-312003           Taxes Ad Valorem-03-04                                                        $6,500
244340-469905           Admn. Cost Reimb.-Boone                               $6,500
 
            The amendment recognized fire tax district revenue and payment to volunteer fire departments.
 
            Account #                    Description                                                           Debit             Credit
213991-399101           Fund Balance Approp.-New                                                $133,600
219800-498010           Transfer to General Fund                               $133,600
103980-398121           Transfer from Capital Reserve                        $133,600
104261-469103           Prof. Services-Arch./Engineer                                              $133,600
 
            The amendment transferred funds from the Capital Reserve Fund to the General Fund.
 
            Account #                    Description                                                           Debit             Credit
145350-440900           State Adult Daycare Purchases                          $6,631
143991-399101           Fund Balance Approp.-New                                                    $4,718
143531-323000           Admn. Cost Reimbursement                                                     $1,913
 
            The amendment recognized additional State Adult Care funding and the required match.
 
            Vice-Chairman Hodges, seconded by Commissioner Honeycutt, moved to approve the budget amendments as presented.
 
VOTE:    Aye-5
               Nay-0
 
DEPARTMENT OF SOCIAL SERVICES TRAVEL REQUEST
 
Mr. Jim Atkinson requested approval per the County’s Personnel Ordinance for out of state travel for Chad Slagle, a DSS social worker, to attend a Drug Endangered Child Conference in Denver, Colorado. Mr. Atkinson stated that the entire cost of the conference, including travel was covered by the DEC (Methamphetamine Assistance Grant).
 
            Commissioner Blust, seconded by Commissioner Trivette, moved to approve Chad Slagle’s out of state travel request as presented by Mr. Atkinson.
 
VOTE:    Aye-5
               Nay-0
 
FIRE MARSHAL/EMERGENCY MANAGEMENT MATTERS
 
            A.        2004 State Homeland Security Grant RequestMs. Lisa Danner discussed the second phase (year) of the State Homeland Security Grant. Watauga County was to receive $91,928. Ms. Danner reviewed the recommendation of the Homeland Security Grant Committee for expending the money.
 
            Commissioner Blust, seconded by Commissioner Honeycutt, moved to approve the Committee’s recommendation as presented.
 
VOTE:    Aye-5
               Nay-0
 
            B.         2004 Governor’s Crime Commission State Homeland Security Competitive Grant Request – Ms. Danner stated that a second part of the 2004 Homeland Security Grant was of a competitive nature by which counties were to submit grants that were weighed on their merits compared to the others submitted. The Committee is recommending submittal of a plan to fund a $1.5 million upgrade to the County’s communication network and $50,000 for courthouse security.
 
            Commissioner Honeycutt, seconded by Vice-Chairman Hodges, moved to approve the Committee’s recommendation as presented.
 
VOTE:    Aye-5
               Nay-0
 
ECONOMIC DEVELOPMENT RECOMMENDATION FOR HORN IN THE WEST
 
Mr. Joe Furman presented the Economic Development Commission’s (EDC) recommendation for funding of The Horn in the West. The Institute of Outdoor Drama projected the economic impact of The Horn in West at approximately three million dollars per year. Mr. Furman stated that the EDC recommended that $25,000 be allocated from the EDC capital reserve for renovations to The Horn in the West. The EDC recommended that County funds be routed through the Town of Boone to be used with the $25,000 that the Town had already allocated for repairs at The Horn.
 
            Vice-Chairman Hodges, seconded by Commissioner Blust, moved to approve allocating $25,000 for repairs to The Horn in the West and to route the funds through the Town of Boone.
 
VOTE:    Aye-5
               Nay-0
 
SUBDIVISION PERFORMANCE GUARANTEE REQUEST
 
Mr. Furman reviewed a Subdivision Performance Guarantee for Evergreen Properties of the Southwest, LLC guaranteeing paving for a portion of Phase 2, Laurel Creek Town homes. 
 
Commissioner Blust, seconded by Commissioner Honeycutt, moved to approve the letter of credit guaranteeing construction of improvements as presented by Mr. Furman.
 
VOTE:    Aye-5
               Nay-0
 
MISCELLANEOUS ADMINISTRATIVE MATTERS
 
            A.        AppalCART ContractsCounty Manager Nelson presented two contracts for transportation services from AppalCART for the Project on Aging and the Parks and Recreation Department. The contracts contained a .31¢ per hour increase from the FY 2004 rate for the Project on Aging and a .25¢ per hour increase from the FY 2004 rate for Parks and Recreation. The second part of the contract was a per mile charge which remained at the existing rate of .58¢ per mile for the Project on Aging and .63¢ per mile for the Parks and Recreation Department. The difference in charges was due to the larger buses required by the Parks and Recreation Department. 
 
            Commissioner Trivette, seconded by Commissioner Honeycutt, moved to approve the AppalCART contracts with Parks and Recreation and the Project on Aging.
 
VOTE:    Aye-5
               Nay-0
 
            B.         Medicaid Cost Share DiscussionsCounty Manager Nelson reviewed a proposed General Assembly of North Carolina Bill to phase out the counties’ share for the Medicaid program. 
 
            By consensus, the Board directed the County Manager to draft a letter to legislators supporting the proposed bill.
 
C.        Boards and CommissionsCounty Manager Nelson gave a second reading of the annual appointments (4) to the Region D Development Cooperation. 
 
Commissioner Blust, seconded by Commissioner Trivette, moved to reappoint the current members (Linda Craig, Carroll Garland, James Wilcox, and Bill Rucker) to the Region D Development Cooperation.
 
The County Manager stated that Mr. Joe Furman requested the appointment of Phil Minor to the Economic Development Commission. Mr. Minor’s first 3-year term was to expire in June, according to the EDC bylaws he was eligible for a second 3-year term, and would like to be reappointed.
 
As this was the first reading, no action was required at this time.
 
D.        June Commissioners Meeting ScheduleThe County Manager stated that the first Board meeting in June is scheduled for June 7, with the second meeting scheduled eight days later on the 15th. The Manager requested direction from the Board in rescheduling the 2nd meeting to 7:00 P. M., on June 22, 2004.
 
            By Consensus, the Board agreed to reschedule the second meeting in June to the 22nd.
 
E.         Announcements – County Manager Nelson announced that the NCACC Legislative Day was scheduled in Raleigh on June 2, 2004.
 
PUBLIC COMMENT
 
            No one spoke during public comment.
 
RECESS
 
            Chairman Coffey called a brief recess prior to closed session. The meeting resumed at 9:30 P.M.
 
CLOSED SESSION
 
            At 9:30 P.M., Commissioner Honeycutt, seconded by Commissioner Trivette, moved to enter Closed Session to discuss Attorney/Client Matters, per G. S. 143-318.11(a)(3), Land Acquisition, per G. S. 143-318.11(a)(5)(i) and Personnel Matters, per G. S. 143-318.11(a)(6).
 
VOTE:    Aye-5
               Nay-0
 
            Commissioner Blust, seconded by Commissioner Honeycutt, moved to resume the open meeting at 10:41 P.M.
 
VOTE:    Aye-5
               Nay-0
 
BUDGET WORK SESSION DISCUSSION
 
            By consensus, the Board agreed to schedule an additional work session for Monday, May 24, 2004, at 6:00 P.M. in the Manager’s Conference Room, Watauga County Courthouse.
 
ADJOURN
 
            Commissioner Honeycutt, seconded by Commissioner Blust, moved to adjourn the meeting at 10:49 P.M.
 
VOTE:    Aye-5
               Nay-0
 
 
                                                                                                James Coffey, Chairman
ATTEST:
 
Anita J. Fogle, Clerk to the Board