MINUTES
WATAUGA COUNTY BOARD OF COMMISSIONERS
TUESDAY, AUGUST 20, 2019
The Watauga County Board of Commissioners held a regular meeting, as scheduled, on Tuesday, August 20, 2019, at 5:30 P.M. in the Commissioners' Board Room of the Watauga County Administration Building, Boone, North Carolina.
PRESENT: Billy Kennedy, Vice-Chairman
Larry Turnbow, Commissioner
Charlie Wallin, Commissioner
Perry Yates, Commissioner
Andrea Capua, County Attorney
Deron Geouque, County Manager
Anita J. Fogle, Clerk to the Board
Vice-Chairman Kennedy called the meeting to order at 5:34 P.M.
Vice-Chairman Kennedy stated that Chairman Welch was not in attendance due to a prior commitment.
Commissioner Yates opened with a prayer and Commissioner Turnbow led the Pledge of Allegiance.
Approval of Minutes
Vice-Chairman Kennedy called for additions and/or corrections to the August 6, 2019, regular meeting and closed session minutes.
Commissioner Turnbow, seconded by Commissioner Yates, moved to approve the August 6, 2019, regular meeting minutes as presented.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Commissioner Turnbow, seconded by Commissioner Yates, moved to approve the August 6, 2019, closed session minutes as presented.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Approval of Agenda
Vice-Chairman Kennedy called for additions and/or corrections to the August 20, 2019, agenda.
County Manager Geouque requested to add the following:
· Proposed Refinancing of High School Debt
· Possible Action After Closed Session
Commissioner Wallin, seconded by Commissioner Turnbow, moved to approve the August 20, 2019, agenda as amended.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Sheriff’s Office Vehicle Bid Awards
Major Kelly Redmon presented bids for the Sheriff’s Office from Ross Automotive for five (5) new 2020 Dodge Durango AWD SUVs for $28,859 per unit; two (2) 2020 Dodge Chargers AWD sedans for $23,971 per unit; and one (1) 2020 Jeep Grand Cherokee AWD SUV for $26,392 per unit. In addition, upfitting for the vehicles was priced at $33,684. Ford substantially increased their prices causing the county to review other vehicle options.
Commissioner Turnbow, seconded by Commissioner Yates, moved to accept the bid from Ross Automotive in the total amount of $225,235.87 including taxes and tags and to accept the bid from Dana Safety Supply Inc. in the amount of $33,684 for up fitting of the vehicles.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Emergency Services Vehicle Bid Award and Up-Fitting
Mr. Will Holt, Emergency Management Director, presented bids for the Emergency Management Office for a new 1/2 ton 4x4 pickup truck. Ross Chrysler Jeep Dodge was lowest responsive bidder in the amount of $23,151.60. In addition, the upfitting the vehicle is $9,399.58. Adequate funds have been budgeted in the current fiscal year to cover the purchase.
Commissioner Yates, seconded by Commissioner Turnbow, moved to accept the bid from Ross Automotive for a 2019 Dodge 1500 4x4 pickup truck in the amount of $33,251.73 which includes tax and tag and to accept the bid from Dana Safety Supply, Inc. in the amount of $9,399.58 for up fitting of and equipment for the new vehicle.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Tax Matters
A. Monthly Collections Report
Tax Administrator, Mr. Larry Warren, presented the Tax Collections Report for the month of July 2019. The report was presented for information only and, therefore, no action was required.
B. Refunds and Releases
Mr. Warren presented the Refunds and Releases Report for July 2019 for Board approval:
TO BE TYPED IN MINUTE BOOK
Commissioner Turnbow, seconded by Commissioner Wallin, moved to approve the Refunds and Releases Report for July 2019 as presented.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Miscellaneous Administrative Matters
A. Proposed Resolution for Negotiated Underwriting and Rate Modification for the New High School Loans
County Manager Geouque stated that the opportunity existed for the County to modify a current loan with BB&T for the new high school. The County Manager presented a refinancing schedule, a resolution authorizing the negotiations, and the date of September 3 to hold a public hearing to allow citizen comment on the proposed refinancing.
County Manager Geouque introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Board of Commissioners and which was read by title:
Resolution of the Board of Commissioners of the County of Watauga, North Carolina, Authorizing the Negotiation of an Amendment to an Installment Financing Contract and Providing for Certain Other Related Matters Thereto
WHEREAS, the County of Watauga, North Carolina (the “County”) is a validly existing political subdivision, existing as such under and by virtue of the Constitution, statutes and laws of the State of North Carolina (the “State”);
WHEREAS, the County has the power, pursuant to the General Statutes of North Carolina to (1) enter into installment contracts in order to purchase, or finance or refinance the purchase of, real or personal property and to finance or refinance the construction or repair of fixtures or improvements on real property and (2) create a security interest in some or all of the property financed or refinanced to secure repayment of the purchase price;
WHEREAS, the County has previously executed and delivered an Installment Financing Contract dated as of June 1, 2012 (the “2012 Contract”), between the Watauga Public Facilities Corporation (the “Corporation”) and the County, the proceeds of which were used to refinance the acquisition and construction of a high school in the County (the “Project”);
WHEREAS, under an Indenture of Trust dated as of June 1, 2012 (the “2012 Indenture”) between the Corporation and U.S. Bank National Association, as trustee (the “Trustee”), the Corporation executed and delivered $45,045,000 Refunding Limited Obligation Bonds (County of Watauga, North Carolina), Series 2012A (the “2012A Bonds”) and $10,000,000 Refunding Limited Obligation Bond (County of Watauga, North Carolina), Series 2012B, each evidencing proportionate undivided interests in rights to receive certain Revenues pursuant to the 2012 Contract, to assist the County in refinancing the Project;
WHEREAS, the County staff has reported to the Board of Commissioners (the “Board”) that the County may be able to achieve debt service savings by refinancing the County’s installment payment obligations under the 2012 Contract through the refunding of the 2012A Bonds maturing on and after June 1, 2023 (the “Refunded Bonds”);
WHEREAS, based on the foregoing, the Board determines that it is in the best interest of the County to enter into an amendment to the 2012 Contract with the Corporation (the “Contract Amendment”) in order to refund the Refunded Bonds and to pay the costs related to the execution and delivery of the Contract Amendment;
WHEREAS, the County hereby determines that the Project continues to be essential to the County’s proper, efficient and economic operation and to the general health and welfare of its citizens; that the Project permits the County to carry out public functions that it is authorized by law to perform; and that entering into the Contract and the Deed of Trust was necessary and expedient for the County by virtue of the findings presented herein;
WHEREAS, the County hereby determines that entering into the Contract Amendment will allow the County to refinance the Project at a favorable interest rate currently available in the financial marketplace and upon terms advantageous to the County;
WHEREAS, the County hereby determines that the estimated cost of refinancing the Project under the Contract Amendment is an amount not to exceed $24,000,000 and that the cost of refinancing the Project exceeds the amount that can be prudently raised from currently available appropriations, unappropriated fund balances and non-voted bonds that could be issued by the County in the current fiscal year pursuant to Article V, Section 4 of the Constitution of the State;
WHEREAS, although the cost of refinancing the Project pursuant to the Contract Amendment is expected to exceed the cost of refinancing the Project pursuant to a bond financing for the same undertaking, the County hereby determines that the cost of refinancing the Project pursuant to the Contract Amendment and the obligations of the County thereunder are preferable to a general obligation bond financing or revenue bond financing for several reasons, including but not limited to the following: (1) the cost of a special election necessary to approve a general obligation bond financing, as required by the laws of the State, would result in the expenditure of significant funds; (2) the time required for a general obligation bond election would cause an unnecessary delay which would thereby decrease the financial benefits of refinancing the Project; and (3) revenues produced by the Project are insufficient to permit a revenue bond financing;
WHEREAS, the County does not anticipate any property tax increase to pay installment payments falling due with respect to the Contract Amendment;
WHEREAS, Parker Poe Adams & Bernstein LLP, as bond counsel, will render an opinion to the effect that entering into the Contract Amendment and the transactions contemplated thereby are authorized by law;
WHEREAS, no deficiency judgment may be rendered against the County in any action for its breach of the 2012 Contract and the Contract Amendment, and the taxing power of the County is not and may not be pledged in any way directly or indirectly or contingently to secure any moneys due under the 2012 Contract and the Contract Amendment;
WHEREAS, the County is not in default under any of its debt service obligations;
WHEREAS, the County’s budget process and Annual Budget Ordinance are in compliance with the Local Government Budget and Fiscal Control Act;
WHEREAS, past audit reports of the County indicate that its debt management and contract obligation payment policies have been carried out in strict compliance with the law, and the County has not been censured by the North Carolina Local Government Commission (the “LGC”), external auditors or any other regulatory agencies in connection with such debt management and contract obligation payment policies;
WHEREAS, the County will hold a public hearing on entering into Contract Amendment, after publication of a notice with respect to such public hearing, on September 3, 2019 and approval of the LGC with respect to entering into the Contract Amendment must be received;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF WATAUGA, NORTH CAROLINA, AS FOLLOWS:
Section 1. Authorization to Negotiate Contract Amendment. That the County Manager and the Finance Director, individually or collectively, with advice from the County Attorney and Bond Counsel, are hereby authorized and directed to proceed and negotiate on behalf of the County the Contract Amendment for a principal amount not to exceed $24,000,000 for the refinancing of the Project to be entered into in accordance with the provisions of Section 160A-20 of the General Statutes of North Carolina.
Section 2. Application to LGC. That the County Manager and the Finance Director or his or her designees are hereby directed to file with the LGC an application for its approval of the Contract Amendment and all relevant transactions contemplated thereby on a form prescribed by the LGC and to state in such application such facts and to attach thereto such exhibits regarding the County and its financial condition as may be required by the LGC.
Section 3. Direction to Retain Professionals. That the County Manager and the Finance Director are hereby authorized and directed to retain the assistance of Robert W. Baird & Co. Incorporated to serve as underwriter and Parker Poe Adams & Bernstein LLP to serve as bond counsel for the refunding of the Refunded Bonds. The County Manager and the Finance Director, with advice from the County Attorney and Bond Counsel, are hereby authorized to retain the assistance of and engage such professionals as he or she deem necessary and desirable to carry out the intention of this Resolution.
Section 4. Public Hearing. That the Board will hold a public hearing related to entering into the Contract Amendment at its September 3, 2019 meeting and the Clerk to the Board is hereby directed to publish notice of such public hearing in accordance with the provisions of Section 160A-20 of the General Statutes of North Carolina.
Section 5 Repealer. That all motions, orders, resolutions and parts thereof in conflict herewith are hereby repealed.
Section 6. Effective Date. That this Resolution is effective on the date of its adoption.
Commissioner Yates, seconded by Commissioner Wallin, moved to adopt the resolution as presented.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
County Manager Geouque presented a proposed contract to retain the assistance of Robert W. Baird & Co. Incorporated to serve as underwriter and Parker Poe Adams & Bernstein LLP to serve as bond counsel for the refunding of the Refunded Bonds.
Commissioner Turnbow, seconded by Commissioner Wallin, moved to authorize and direct staff to retain the assistance of Robert W. Baird & Co. Incorporated to serve as underwriter and Parker Poe Adams & Bernstein LLP to serve as bond counsel for the refunding of the Refunded Bonds.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Commissioner Wallin, seconded by Commissioner Yates, moved to set a public hearing for Tuesday, September 3, 2019, at 8:30 A.M. to allow citizen comment on the proposed refinancing of the high school property.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
B. Proposed Renewal of ASU Greenhouse Lease
County Manager Geouque presented a proposed lease renewal with Appalachian State University Foundation for the greenhouse located at the Watauga County Landfill. Property owned by the County may be leased or rented for such terms and upon such conditions as the Board may determine, for up to ten (10) years. Property may be rented or leased only pursuant to a resolution of the Board authorizing the execution of the lease or rental agreement adopted at a regular Board meeting upon 10 days' public notice. Notice was given by publication describing the property to be leased or rented, stating the annual rental or lease payments, and announcing the Board's intent to authorize the lease or rental at its next regular meeting.
Commissioner Yates, seconded by Commissioner Turnbow, moved to recuse Commissioner Wallin from discussion of this topic as he is an employee of Appalachian State University.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Commissioner Turnbow, seconded by Commissioner Yates, moved to approve the lease renewal with Appalachian State University Foundation for the greenhouse located at the Watauga County Landfill as presented by the County Manager.
VOTE: Aye-3(Kennedy, Turnbow, Yates)
Nay-0
Absent-1(Welch)
Recused-1(Wallin)
Commissioner Turnbow, seconded by Commissioner Yates, moved to reinstate Commissioner Wallin to the meeting.
VOTE: Aye-3(Kennedy, Turnbow, Yates)
Nay-0
Absent-1(Welch)
Recused-1(Wallin)
C. Proposed General Records Retention and Disposition Schedule for Local Government Agencies
County Manager Geouque stated that the Government Records Section of the State Archives of North Carolina created a new Records Retention and Disposition Schedule for the general records of Local Government Agencies. When adopted, the new schedule will supersede the following standards on all local schedules published prior to March 1, 2019:
- Administration and Management Records
- Budget, Fiscal, and Payroll Records
- Geographic Information System (GIS) Records
- Information Technology Records
- Legal Records
- Personnel Records
- Public Relations Records
- Risk Management Records
- Workforce Development Records
Commissioner Turnbow, seconded by Commissioner Wallin, moved to adopt the General Records Retention and Disposition Schedule for Local Government Agencies as presented.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
D. Boards and Commissions
County Manager Geouque presented the following for consideration:
Watauga County Library
The Watauga County Library Board has recommended the appointments of Ms. Margaret Love and Ms. Natalie Harkey, both for first terms, and Ms. Sandra Basel, to fill the un-expired term of Ms. Jaime Money, to the Watauga County Library Board. These were first readings.
Commissioner Yates, seconded by Commissioner Turnbow, moved to waive the second reading and appoint Ms. Margaret Love and Ms. Natalie Harkey, both for first terms, and Ms. Sandra Basel, to fill the un-expired term of Ms. Jaime Money, to the Watauga County Library Board.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Appalachian Regional Library
The Watauga County Library Board has recommended the appointments of Ms. Sandra Basel and Ms. Roberta Jackson be appointed to the Appalachian Regional Library Board. These were first readings.
Commissioner Yates, seconded by Commissioner Turnbow, moved to waive the second reading and appoint Ms. Sandra Basel and Ms. Roberta Jackson to the Appalachian Regional Library Board.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Personnel Advisory Committee
The Watauga County Personnel Ordinance established a Personnel Advisory Committee which is comprised of five (5) persons designated by the Board, authorized to hear employee grievances, and recommend decisions to the appointing authority. The Committee consists of one (1) Commissioner, one (1) department head and three (3) non-supervisory regular employees. Current members of the Personnel Advisory Committee are as follows: Mr. John Welch (County Commissioner), Ms. Angie Boitnotte (Department Head), Ms. Regina Houck (Regular Employee), Ms. Amy Parsons (Regular Employee), VACANT (Regular Employee), and Mr. Derrick Ellison (Alternate Member).
County Manager Geouque stated that staff recommends appointing Mr. Greg McGrady as the new Regular Employee Member. This was a first reading.
Commissioner Turnbow, seconded by Commissioner Wallin, moved to waive the second reading and appoint Mr. Greg McGrady as a regular employee member of the Personnel Advisory Committee.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
E. Announcements
County Manager Geouque announced the following:
· The 112th North Carolina Association of County Commissioners (NCACC) Annual Conference will be held August 22-24, 2019, in Guilford County. Visit http://www.ncacc.org/775/2019-Annual-Conference for full information.
· The High Country Council of Governments’ Annual Banquet is scheduled for Friday, September 6, 2019, at Linville Ridge.
Public Comment
There was no public comment.
Closed Session
At 5:49 P.M., Commissioner Yates, seconded by Commissioner Turnbow, 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-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Commissioner Yates, seconded by Commissioner Turnbow, moved to resume the open meeting at 6:59 P.M.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Possible Action After Closed Session
Commissioner Yates, seconded by Commissioner Wallin, moved to schedule a joint meeting with the Watauga County Board of Education at the Valle Crucis School Gymnasium on Tuesday, September 3, 2019, at 6:00 P.M. to provide information on the proposed construction of a new Valle Crucis School and to hear public comments related to the project.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Adjourn
Commissioner Yates, seconded by Commissioner Wallin, moved to adjourn the meeting at 7:00 P.M.
VOTE: Aye-4(Kennedy, Turnbow, Wallin, Yates)
Nay-0
Absent-1(Welch)
Billy Kennedy, Vice-Chairman
ATTEST:
Anita J. Fogle, Clerk to the Board