Watauga County, NC

MINUTES

WATAUGA COUNTY BOARD OF COMMISSIONERS

TUESDAY, JANUARY 4, 2011

The Watauga County Board of Commissioners held a regular meeting on Monday, January 4, 2011, at 8:00 A.M. in the Commissioners’ Board Room of the Watauga County Administration Building.

PRESENT: Nathan A. Miller, Chairman

David Blust, Vice-Chairman

Jim Deal, Commissioner

Tim Futrelle, Commissioner

Vince Gable, Commissioner

Four Eggers, County Attorney

Robert E. Nelson, Jr., County Manager

Deron Geouque, Deputy County Manager

Anita J. Fogle, Clerk to the Board

Chairman Miller called the meeting to order at 8:00 A.M., welcoming those in attendance.

Commissioner Blust opened the meeting with a prayer and Commissioner Gable led the Pledge of Allegiance.

APPROVAL OF MINUTES

Chairman Miller called for additions and/or corrections to the December 6, 2010, regular and closed session minutes.

Discussion was held regarding the wording of the motion in the December 6, 2010, regular meeting minutes regarding the Watauga County Agricultural Development and Farmland Preservation Plan.

Chairman Miller, seconded by Commissioner Gable, moved to approve the December 6, 2010, regular meeting minutes as presented.

VOTE: Aye-5

Nay-0

[Clerk’s Note: Please note that further discussion on the Watauga County Agricultural Development and Farmland Preservation Plan was added to the agenda and during that discussion additional action was taken regarding the December 6, 2010, regular meeting minutes in which the motion discussed above was amended.]

Commissioner Deal, seconded by Commissioner Gable, moved to approve the December 6, 2010, closed session minutes as presented.

VOTE: Aye-5

Nay-0

APPROVAL OF AGENDA

Chairman Miller called for additions and/or corrections to the January 4, 2011, agenda.

The following were added under Miscellaneous Administrative Matters: Discussion regarding the Watauga County Agricultural Development and Farmland Preservation Plan; and a Proposed Resolution - Watauga Medical Center Reissuance of Debt.

Commissioner Deal, seconded by Commissioner Gable, moved to approve the January 4, 2011, agenda as presented.

VOTE: Aye-5

Nay-0

REQUEST FOR DECLARATION OF SURPLUS AND SALE – WCSO K9

Sheriff Hagaman requested to declare a K9 (police dog), referenced as “Boco,” as surplus and requested to sell the dog to its handler, Tim Wilson, for a fee of $1.00. The Sheriff stated that the dog was approximately nine years old and had developed health issues over the past year and, therefore, was no longer of use to the Sheriff’s Office. G. S. 160A-267 allowed for the dog to be sold for a negotiated price by order of the Board of Commissioners after being advertised for ten days. The dog was search, deploy, and narcotics trained and, therefore, needed to be with someone who knew how to handle it.

Commissioner Deal, seconded by Commissioner Gable, moved to declare the K9 surplus and issue an order to staff to dispose of the K9 per G. S. 160A-267 as recommended by the Sheriff.

VOTE: Aye-5

Nay-0

TDA REQUEST FOR SUBMISSION OF CLEAN WATER MANAGEMENT TRUST FUND GRANT APPLICATION

Mr. Rob Holton, Tourism Development Authority (TDA) Chairman, Mr. Wright Tilley, TDA Executive Director, and Mr. Eric Woolridge, TDA Senior Outdoor Recreation Specialist, were present to request the adoption of a resolution which gave authority to the TDA to submit a grant application to the Clean Water Management Trust Fund (CWMTF) on behalf of Watauga County. Mr. Woolridge gave a background of the TDA and their efforts to expand outdoor recreational opportunities in the County. Mr. Woolridge stated that the CWMTF grant, if awarded, was to fund the purchase of a 1.4 mile preservation and trail easement along the South Fork of the New River immediately below the County’s Brookshire Park. The project budget, for the easement purchase only, was $566,900 with $453,520 to come from the CWMTF and the remaining $113,380 match to be funded by the TDA. As a pass-through grant, the application was to be in Watauga County’s name; however, the TDA was to be fully responsible for funding the match and meeting the requirements of the grant.

Mr. Holton and Mr. Woolridge assured the Board that no County funds were to be spent in relation to this grant award and the purchase of the property.

The second phase of the project was to involve constructing fencing and the Greenway Trail. County Manager Nelson stated that County staff had assisted with this type of construction in the past by donating time and equipment. Mr. Holton stated that the TDA may request, in the future, for the County to provide the ongoing maintenance, including mowing and maintaining the 1.4 mile trail, once constructed. Action regarding the proposed CWMTF grant application did not obligate the County to either provide assistance or maintain the property.

After lengthy discussion, Commissioner Deal, seconded by Commissioner Futrelle, moved to adopt the resolution which authorized the Watauga County Tourism Development Authority to submit an application on behalf of the County to the Clean Water Management Trust Fund for a grant in the amount of $566,900 with the $113,380 match to be funded by the TDA.

VOTE: Aye-5

Nay-0

LANDFILL GAS TO ENERGY PROJECT NC GREEN POWER BID ACCEPTANCE

Ms. Lisa Doty recommended that the County accept an offer from NC Green Power to purchase the County’s Renewable Energy Credits (RECs) at a rate of $11.00 per credit unit. The RECs were to be created through the County’s Landfill Gas to Energy Project in which methane gas was to generate electricity. The proposed sale was based on a response to a proposal issued by NC Green Power. There were two other available avenues to sell the RECs; one to Duke Energy, who offered a rate of $6.88 per credit unit, and the second to the North Carolina Municipal Power Association, who offered a rate of $2.00 per credit unit.

County Attorney Eggers stated that the sale of the RECs was not bound to the upset bid process.

Chairman Miller, seconded by Commissioner Futrelle, moved to accept the NC Green Power offer to purchase the County’s Renewable Energy Credits at a rate of $11.00 per credit unit.

VOTE: Aye-5

Nay-0

Commissioner Deal, seconded by Chairman Miller, moved to appoint Lisa Doty as the County’s representative in handling the sale of the RECs to NC Green Power.

VOTE: Aye-5

Nay-0

ECONOMIC DEVELOPMENT MATTERS

A. Grant Application Request – Mr. Joe Furman, representing the Economic Development Commission, announced The High Country Natural Products Conference, scheduled for March 16, 2011. Mr. Furman stated that, due to the application deadline, he had applied for a grant in the amount of $961 through the North Carolina Biotechnology Center Science and Technology Development Program to partially off-set costs of the seminar.

County Manager Nelson stated that if approval was not given the application submission would either be withdrawn or, if awarded, the grant would not be accepted.

Commissioner Deal, seconded by Commissioner Blust, moved to authorize the submission of the grant application to the North Carolina Biotechnology Center Science and Technology Development Program in the amount of $961.

VOTE: Aye-5

Nay-0

B. Proposed Broadband Infrastructure Study – Mr. Furman stated that the Microelectronics Center of NC (MCNC) had received stimulus funding for the Rural Broadband Initiative in which Watauga County was included. The goal of the project was to engage local providers to extend the fiber optic network throughout rural areas to improve internet interconnectivity in the rural areas of the State. Mr. Furman stated that the Economic Development Commission (EDC) could benefit from a comprehensive infrastructure inventory documenting areas of availability in the County. Mr. Furman requested the opportunity to join Avery County in applying to the Appalachian Regional Commission (ARC) for funds to conduct a comprehensive survey. The grant required a 50% cash match of $13,500 per County. The match money was available in a communications set-aside account or could be allocated from the fiscal year 2012 funding to the EDC.

After discussion, Chairman Miller, seconded by Commissioner Gable, moved to not authorize the submission of the grant application.

VOTE: Aye-5

Nay-0

PLANNING AND INSPECTION MATTERS

A. Proposal for Selection of Engineering Firm for HWY 421 Greenway Underpass Design – Mr. Furman stated that Deputy County Manager Geouque, Parks and Recreation Director Poulos, and TDA Senior Outdoor Recreation Specialist Woolridge reviewed responses to a Request for Qualifications (RFQ) to select an engineering firm to develop plans for an underpass at the New River Bridge on US HWY 421. The purpose of the underpass was to allow connectivity from the County’s Brookshire Greenway to the Town of Boone’s Greenway. The County received a grant from the Department of Transportation which was to fund the engineering of plans for the underpass to allow for a “shovel-ready” project. Once the plans were complete with all necessary construction documents and permits, the County anticipated placing the project on the North Carolina Department of Transportation’s Transportation Improvement Plan (TIP) in 2011. Mr. Furman stated that three proposals were received in response to the RFQ. Mr. Furman recommended the County select and enter into negotiations with McGill Associates first and, if negotiations were unsuccessful, then with Brushy Fork Environmental with the costs of the project not to exceed the amount of grant funds awarded for the project. Mr. Furman stated that once negotiations were complete, a contract would be presented for consideration.

Commissioner Deal, seconded by Commissioner Miller, moved to authorize staff to negotiate a contract with McGill Associates, and if unsuccessful, with Brushy Fork Environmental for engineering services to develop plans for an underpass at the New River Bridge on US HWY 421, with the contract not to exceed the amount of grant funding awarded for the project.

VOTE: Aye-5

Nay-0

B. Hospitality House Matters

1. Change Order Request – Mr. Furman requested Change Order # C507-04 for the Hospitality House Project. The Change Order covered costs of additional scope as requested by the Hospitality House Board. The Change Order, in the amount of $22,197, was to be funded by the Hospitality House with no County funds involved.

Commissioner Deal, seconded by Commissioner Futrelle, moved to approve Hospitality House Project Change Order # C507-04 in the amount of $22,197 to be fully funded by Hospitality House funds.

VOTE: Aye-5

Nay-0

2. Proposed Budget Amendment – Mr. Furman requested authority to execute a budget amendment to the Community Development Block Grant (CDBG) which was to transfer administrative line funds, in an amount up to $9561.15, to the construction line for the Hospitality House Project. The budgeted amount for administrative costs was not expected to be utilized per administrative requirements of the grant and, therefore, unspent funds would revert back to the State. The budget amendment was to allow for the funds to be spent on construction, which was to free a like amount of Hospitality House local funds to be used for equipment and furniture. The budget amendment did not involve County funds.

Commissioner Deal, seconded by Commissioner Blust, moved to approve the budget amendment to transfer an amount up to $9561.15 in the Hospitality House Project CDBG Budget from the administrative line to the construction line with no County funds to be expended.

VOTE: Aye-5

Nay-0

TAX MATTERS

A. Monthly Collections Report – Tax Administrator Kelvin Byrd presented the Tax Collections Report for the month of December 2010.

Mr. Byrd also announced that January 5, 2011, was the last day to pay taxes without interest added.

B. Releases and Refunds – Mr. Byrd presented the following Refunds and Releases for December 2010 for Board approval:

TO BE TYPED IN MINUTE BOOK

Commissioner Futrelle, seconded by Commissioner Blust, moved to approve the Refunds and Releases Report for December 2010, as presented.

VOTE: Aye-5

Nay-0

FINANCE MATTERS

A. Budget Amendments – Ms. Margaret Pierce, Finance Director, presented the following budget amendments for Board approval:

Account # Description Debit Credit

663910-391000 Proceeds from Installment Loan $135,290

667420-454000 Capital Outlay-Vehicle $135,290

The amendment recognized the loan proceeds for the purchase of a trash truck. The Board approved this financing at the November 16, 2010, regular meeting.

Account # Description Debit Credit

133594-349909 NC Lottery Funds $12,000

135912-435940 Green Valley School – Replace windows $8,000

135912-435941 Valle Crucis – Replace retaining wall $4,000

The amendment recognized the award of the NC Lottery funds applied for by the Watauga County Board of Education. The Board of Commissioners approved the application for lottery funds at the September 21, 2010, regular meeting. Notification of the NC Department of Public Instruction approval for these projects was received December 13, 2010. The State requires that lottery funds are allocated through the County.

Commissioner Deal, seconded by Chairman Miller, moved to approve the budget amendments as presented by Ms. Pierce.

VOTE: Aye-5

Nay-0

B. Proposed Upper Watauga River Project Promissory Note – Ms. Pierce presented a loan promissory note from the North Carolina Department of Environment and Natural Resources (NCDENR) Construction Grants and Loans which was to be executed for the Upper Watauga River Enhancement Project. The Soil and Water Conservation Board currently had a loan with NCDENR Division of Water Quality for this project and also a grant from the NCDENR Clean Water Management Trust Fund. The grant was to repay half of the loan amount and the remainder of the loan amount was to be forgiven by the State. The amended promissory note, which reflected the actual costs of the project, was required due to the project coming in under budget. There were no costs to Watauga County.

Commissioner Miller, seconded by Commissioner Futrelle, moved to approve the promissory note as presented.

VOTE: Aye-5

Nay-0

MISCELLANEOUS ADMINISTRATIVE MATTERS

A. Watauga County Agricultural Development and Farmland Preservation Plan Discussion – Discussion was held to determine the intended terminology used regarding action taken on the Watauga County Agricultural Development and Farmland Preservation Plan at the December 6, 2010, Board meeting. At that meeting, the word “accepted” was used in the motion. Since that time staff was informed that the Plan had to be “adopted” or “approved” in order to qualify for reimbursement by the State grant that funded the development of the Plan.

County Attorney Eggers stated that the wording was semantics and that adopting or approving the Plan did not bind the County to its content as it was to be used as a planning tool.

Brian Chatham with the Soil and Water Conservation District stated that the State was awaiting the County’s “approval or adoption” of the Plan to reimburse the County and close the grant file. The County had requested two extensions to allow for time to submit all documentation to the State to meet the grant requirements. Once adopted or approved, the Plan could be used and/or amended as the County deemed necessary.

After discussion, Commissioner Gable, seconded by Commissioner Deal, moved to amend the December 6, 2010, regular meeting minutes motion regarding the Watauga County Agricultural Development and Farmland Preservation Plan to read as follows:

“Commissioner Gable, seconded by Commissioner Futrelle, moved to approve the Watauga County Agricultural Development and Farmland Preservation Plan as presented to be forwarded to the State.

VOTE: Aye-5

Nay-0”

VOTE: Aye-5

Nay-0

Commissioner Gable, seconded by Commissioner Deal, moved to schedule a public hearing at 6:00 P.M. on February 15, 2011, to allow for citizen comment on the Watauga County Agricultural Development and Farmland Preservation Plan.

VOTE: Aye-5

Nay-0

B. Proposed Resolution - Watauga Medical Center Reissuance of Debt – Commission Deal stated that the Board had recently approved a request from the Watauga Medical Center Board of Trustees which amended (4^th Amendment to Lease Agreement) their lease with the County for Watauga Medical Center. That lease amendment was a required step in the Medical Center Board’s process associated with their plan to issue $34,000,000 in bonds to refinance existing debt in order to obtain a consistent interest rate for the life of the debt. Commissioner Deal presented a proposed resolution associated with the Medical Center’s issuance of bonds which was another required step in that process.

Chairman Miller tabled this item until the end of the meeting to allow Commissioner Deal time to contact the Medical Center to find out the timeline requirements for adoption of the resolution.

C. Proposed Watauga County Farmers’ Market Lease – County Manager Nelson presented a proposed lease between the County and the Watauga County Farmers’ Market which allowed the Market to operate in the parking area at the Human Services Complex beginning in 2012. The County Manager stated that the previous Board had approved the lease in principle with the thought that it would provide additional economic development opportunities by generating additional income to the County’s small farmers and craftsmen who were members.

By consensus, the Board tabled further discussion regarding the proposed lease agreement until the next Board meeting and directed staff to invite Mr. Joe Martin with the Farmers’ Market and a representative of the Horn In The West to join in the discussion.

B. Town of Boone Joint Meeting Request – County Manager Nelson stated that the Town of Boone had requested a joint meeting to discuss items of mutual interest and had recommended the dates of Monday, January 17^th at 5:00 P.M. or Monday, January 24^th at 7:00 P.M.

Due to scheduling conflicts on Monday the 17^th, which was a holiday, the Board agreed, by consensus, to direct the County Manager to request the Town of Boone schedule the meeting for Tuesday, January 25, 2011, beginning at either 5:00 P.M. or 6:00 P.M. or to submit other dates for consideration at a future meeting.

C. Discussion of Annual Pre-Budget Retreat – County Manager Nelson presented proposed topics for the upcoming Pre-Budget Retreat and requested direction in scheduling the date. The County Manager stated that 6-10 hours were necessary and recommended scheduling times during the week of February 21-26 or February 28-March 5.

By consensus, the Board agreed to schedule the Annual Pre-Budget Retreat for Friday, January 25, 2011, from 12:00 noon until approximately 6:00 P.M., with lunch being served, and continuing Saturday, January 26, 2011, beginning at 9:00 A.M. until approximately 12:00 noon.

VOTE: Aye-5

Nay-0

D. Proposed Courthouse Renovation Change Order – County Manager Nelson presented Change Order # 21 for the Courthouse Renovation Project. This was a deductive change order in the amount of $26,613. The work on the HVAC completion was less than the budgeted amount and the signage package was deleted from the original contract. The County’s maintenance staff was to complete the signage package.

Chairman Miller, seconded by Commissioner Blust, moved to approve Change Order # 21 in the deductive amount of $26,613 for the Courthouse Renovation Project.

VOTE: Aye-5

Nay-0

E. Discussion of NCACC Legislative Goals Conference and Appointment of Delegate – County Manager Nelson stated that the North Carolina Association of County Commissioners (NCACC) Legislative Conference was scheduled for January 20-21, 2011. The legislative goals as generated by the Association were presented. The County Manager also stated that the Association requested that any County who had members attending the conference, appoint a voting delegate for representation.

[Clerk’s Note: As there were no Board members planning to attend the Conference at this time, no action was taken to appoint a voting delegate.]

F. Boards and Commissions – County Manager Nelson stated that Blowing Rock School nominated Mr. Wendell Ellis and Cove Creek School nominated Ms. Laura Johnson, both for reappointment, as their respective community representatives to the Watauga County Recreation Commission. Both terms were to be for three years, ending in December 2013.

Vice-Chairman Blust, seconded by Commissioner Deal, moved to waive the second reading and reappoint Wendell Ellis and Laura Johnson to the Watauga County Recreation Commission each for a three year term which was to expire in December 2013.

VOTE: Aye-5

Nay-0

County Manager Nelson stated that the New River Service Authority Board had recommended appointment of Dr. Bonnie Walker to a one-year term as an at-large member of their Board.

As this was a first reading, no action was taken at this time.

County Manager Nelson stated that each newly-elected Commissioner needed to nominate a representative, who lived within their district, to serve on the Watauga County Planning Board.

Commissioner Gable nominated Frank Gioscio as the representative for District 2 and Chairman Miller nominated Patrick Morgan as the representative for District 5.

Commissioner Gable, seconded by Chairman Miller, moved to appoint Frank Gioscio, as the District 2 representative, and Patrick Morgan, as the District 5 representative, to the Watauga County Planning Board with the terms to be concurrent with the Commissioner representing the district.

VOTE: Aye-5

Nay-0

County Manager Nelson stated that each newly-elected Commissioner needed to appoint a representative, who lived within the Boone Fire Service District, to serve as a member of the Boone Rural Fire Protection Service District Board. These appointments were to run concurrent with the term of the appointing Commissioner.

Commissioner Gable appointed B. W. Miller to serve as the District 2 representative to the Boone Rural Fire Protection Service District.

The remaining appointments to the Planning Board and Boone Rural Fire Protection Service District were tabled until a future meeting.

G. Announcements – County Manager Nelson announced that the Appalachian District Health Department’s Public Health Training which was postponed in December due to weather conditions was rescheduled for January 11, 2011, at 2:00 P.M. at the Ashe County Courthouse.

County Manager Nelson announced that the Watauga County Library invited the Board of Commissioners to a dinner from 4:30 P.M. to 5:30 P.M. on January 18, 2011 at the Library in which a tour of the facility was to be given.

County Manager Nelson announced that the Hospitality House invited the Board to their new shelter on Friday, February 4, 2011, at 1:00 P.M. to attend their dedication celebration.

PUBLIC COMMENT

There was no public comment.

CLOSED SESSION

At 10:07 A.M., Commissioner Deal, seconded by Chairman Miller, moved to enter Closed Session to discuss Attorney/Client Matters, per G. S. 143-318.11(a)(3).

VOTE: Aye-5

Nay-0

Commissioner Deal, seconded by Vice-Chairman Blust, moved to resume the open meeting at 11:25 A.M.

VOTE: Aye-5

Nay-0

ACTION TAKEN AFTER CLOSED SESSION

Proposed Resolution - Watauga Medical Center Reissuance of Debt (Continued) – Commissioner Deal stated that he had contacted Watauga Medical Center and was informed that action on their proposed resolution was required, prior to the Board of Commissioners’ next meeting scheduled for January 18, 2011, in order to meet the deadlines associated with their issuance of bonds.

Commissioner Deal, seconded by Commissioner Futrelle, moved to adopt the resolution for Watauga Medical Center as presented.

VOTE: Aye-5

Nay-0

ADJOURN

Chairman Miller adjourned the meeting at 11:29 A.M.

Nathan A. Miller, Chairman

ATTEST:

Anita J. Fogle, Clerk to the Board