MINUTES
WATAUGA COUNTY BOARD OF COMMISSIONERS
TUESDAY, SEPTEMBER 3, 2019
The Watauga County Board of Commissioners held a regular meeting, as scheduled, on Tuesday, September 3, 2019, at 8:30 A.M. in the Commissioners' Board Room of the Watauga County Administration Building, Boone, North Carolina.
PRESENT: John Welch, Chairman
Billy Kennedy, Vice-Chairman
Larry Turnbow, Commissioner
Charlie Wallin, Commissioner
Perry Yates, Commissioner
Anthony di Santi, County Attorney
Deron Geouque, County Manager
Anita J. Fogle, Clerk to the Board
Chairman Welch called the meeting to order at 8:33 A.M.
Commissioner Wallin opened with a prayer and Commissioner Turnbow led the Pledge of Allegiance.
APPROVAL OF MINUTES
Chairman Welch called for additions and/or corrections to the August 20, 2019, regular meeting and closed session minutes.
Vice-Chairman Kennedy, seconded by Commissioner Yates, moved to approve the August 20, 2019, regular meeting minutes as presented.
VOTE: Aye-5
Nay-0
Vice-Chairman Kennedy, seconded by Commissioner Yates, moved to approve the August 20, 2019, closed session minutes as presented.
VOTE: Aye-5
Nay-0
APPROVAL OF AGENDA
Chairman Welch called for additions and/or corrections to the September 3, 2019, agenda.
Vice-Chairman Kennedy, seconded by Commissioner Turnbow, moved to approve the September 3, 2019, agenda as presented.
VOTE: Aye-5
Nay-0
RIVER’S WALK PERMANENT DRAINAGE EASEMENT REQUEST
Mr. Jim Deal, Attorney for the River’s Walk project being constructed adjacent to County property, presented a request for an easement for roof drains to connect to an existing storm drainage structure. Mr. Deal stated that, if approved, he would draft an easement for the County Attorney’s review.
Commissioner Yates, seconded by Vice-Chairman Kennedy, moved to approve the easement as requested by Mr. Deal, contingent upon the County Attorney’s review.
VOTE: Aye-5
Nay-0
PUBLIC HEARING TO ALLOW FOR CITIZEN COMMENT ON THE PROPOSED REFINANCING OF WATAUGA HIGH SCHOOL
Chairman Welch stated that a public hearing was scheduled to allow citizen comment on the proposed refinancing of the high school debt.
Commissioner Turnbow, seconded by Commissioner Wallin, moved to call the public hearing to order at 8:37 A.M.
VOTE: Aye-5
Nay-0
There were no public comments.
Vice-Chairman Kennedy, seconded by Commissioner Yates, moved to close the public hearing at 8:37 A.M.
VOTE: Aye-5
Nay-0
ENGAGEMENT LETTER TAXABLE LIMITED OBLIGATION REFUNDING BONDS, SERIES 2019
County Manager Geouque requested approval of the engagement letter with Parker Poe for services provided for the refinancing of the debt. Mr. Geouque stated that the County Attorney had reviewed the engagement letter. The County has utilized Parker Poe for previous financing projects and was satisfied with the services provided. All costs associated with the engagement letter are included in the refinancing expenses and will not be out-of-pocket.
Commissioner Yates, seconded by Commissioner Turnbow, moved to approve the engagement letter with Parker Poe for services with the refinancing project.
VOTE: Aye-5
Nay-0
Upon Vice-Chairman Kennedy’s request, County Attorney di Santi clarified that Robert Baird is the underwriter and there is no conflict of interest. Mr. di Santi stated that Mr. Baird was used when financing the Community Recreation Center as well.
S&P GLOBAL RATINGS ENGAGEMENT LETTER
County Manager Geouque requested approval of the engagement letter with S&P Global Ratings for services provided for the refinancing of the Watauga High School debt. Mr. Geouque stated that the County Attorney had reviewed the engagement letter. All costs associated with the engagement letter are included in the refinancing expenses and will not be out-of-pocket.
Vice-Chairman Kennedy, seconded by Commissioner Turnbow, moved to approve the engagement letter with S&P Global Ratings for services with the refinancing project.
VOTE: Aye-5
Nay-0
RESOLUTION APPROVING A CONTRACT AMENDMENT
County Manager Geouque presented the following proposed resolution which is part of the Watauga High School refinancing project. The adoption of the resolution will ratify all instruments, authorize the official statement, execute the contract, escrow, and bond purchase agreements.
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF WATAUGA, NORTH CAROLINA, APPROVING A CONTRACT AMENDMENT AND THE DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS
WHEREAS, the County of Watauga, North Carolina (the “County”) is a validly existing political subdivision of the State of North Carolina, 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) purchase real and personal property, (2) enter into installment purchase contracts in order to finance the purchase of real and personal property used, or to be used, for public purposes, and (3) grant a security interest in some or all of the property purchased 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”), 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, the Board has previously determined that it is in the best interest of the County to enter into Amendment Number One to the Installment Financing Contract (the “Contract Amendment” and together with the 2012 Contract, the “Contract”) to be dated as of October 1, 2019, with the Corporation, in order (a) to refund the Refunded Bonds; and (b) to pay the costs related to the execution and delivery of the Contract Amendment;
WHEREAS, the Corporation will execute and deliver its Taxable Limited Obligation Refunding Bonds (County of Watauga, North Carolina), Series 2019 (the “Bonds”) in an aggregate principal amount not to exceed $24,000,000, evidencing proportionate undivided interests in rights to receive certain Revenues (as defined in the Contract) pursuant to the Contract;
WHEREAS, in connection with the sale of the Bonds by the Corporation to Robert W. Baird & Co. Incorporated (the “Underwriter”), the County will execute and deliver a Bond Purchase Agreement dated the date of delivery thereof (the “Bond Purchase Agreement”) among the County, the Corporation and the Underwriter;
WHEREAS, in connection with the refunding of the Refunded Bonds, the County will execute and deliver an Escrow Agreement, to be dated as of October 1, 2019 (the “Escrow Agreement”) with U.S. Bank National Association, as escrow agent;
WHEREAS, there have been described to the Board the forms of the following documents (collectively, the “Instruments”), copies of which have been made available to the Board, which the Board proposes to approve, enter into and deliver, as applicable, to effectuate the proposed installment financing:
(1) the Contract Amendment;
(2) the Escrow Agreement;
(3) a Supplemental Indenture, Number 1 to be dated as of October 1, 2019 (the “Supplemental Indenture”) between the Corporation and U.S. Bank National Association, as trustee, including the form of the Bonds; and
(4) the Bond Purchase Agreement;
WHEREAS, to make an offering and sale of the Bonds, there will be prepared a Preliminary Official Statement with respect to the Bonds (the “Preliminary Official Statement”), a draft thereof having been presented to the Board, and a final Official Statement relating to the Bonds (together with the Preliminary Official Statement, the “Official Statement”), which Official Statement will contain certain information regarding the County and the Bonds;
WHEREAS, it appears that each of the Instruments and the Preliminary Official Statement is in an appropriate form and is an appropriate instrument for the purposes intended;
WHEREAS, the Board conducted a public hearing on September 3, 2019 to receive public comment on the proposed Contract Amendment and the refinancing of the Project; and
WHEREAS, the County has filed an application to the LGC for approval of the Contract Amendment and will receive the approval of the LGC before executing and delivering the Contract Amendment;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of Watauga, North Carolina, as follows:
Ratification of Instruments. All actions of the County, the Chairman of the Board, the Clerk to the Board, the County Manager, the Finance Director, the County Attorney and their respective designees, whether previously or hereinafter taken, in effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in accordance with the transactions contemplated by the Instruments.
Authorization of the Official Statement. The form, terms and content of the Preliminary Official Statement are in all respects authorized, approved and confirmed, and the use of the Preliminary Official Statement and of the final Official Statement by the Underwriter in connection with the offering and sale of the Bonds is hereby in all respects authorized, approved and confirmed. The Chairman of the Board, the County Manager or the Finance Director is hereby authorized and directed, individually and collectively, to deliver, on behalf of the County, the Official Statement in substantially such form, with such changes, insertions and omissions as he or she may approve.
Authorization to Execute the Contract Amendment. The County hereby approves the financing in accordance with the terms of the Contract Amendment, which will be a valid, legal and binding obligation of the County in accordance with its terms. The form and content of the Contract Amendment are hereby in all respects authorized, approved and confirmed, and the Chairman of the Board, the Clerk to the Board, the Finance Director and the County Manager and their respective designees are hereby authorized, empowered and directed, individually and collectively, to execute and deliver the Contract Amendment, including necessary counterparts, in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they deem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of the County’s approval of any and all changes, modifications, additions or deletions therein from the form and content of the Contract Amendment presented to the Board. From and after the execution and delivery of the Contract Amendment, the Chairman of the Board, the Clerk to the Board, the County Manager and the Finance Director of the County, individually and collectively, are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Contract Amendment as executed.
Authorization to Execute the Escrow Agreement. The County approves the form and content of the Escrow Agreement, and the Escrow Agreement is in all respects authorized, approved and confirmed. The Chairman of the Board, the Clerk to the Board, the Finance Director and the County Manager and their respective designees are hereby authorized, empowered and directed, individually and collectively, to execute and deliver the Escrow Agreement, including necessary counterparts, in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they deem necessary, desirable or appropriate. Execution by the Chairman of the Board, the Clerk to the Board, the Finance Director or the County Manager or their respective designees, individually or collectively, constitutes conclusive evidence of the County’s approval of any and all such changes, modifications, additions or deletions therein from the form and content of the Escrow Agreement presented to the Board, and from and after the execution and delivery of the Escrow Agreement, the Chairman of the Board, the Clerk to the Board, the County Manager and the Finance Director of the County are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Escrow Agreement as executed.
Authorization to Execute the Bond Purchase Agreement. The County approves the form and content of the Bond Purchase Agreement and the sale of the Bonds to the Underwriter as contemplated thereby, and the Bond Purchase Agreement is in all respects authorized, approved and confirmed. The Chairman of the Board, the Clerk to the Board, the Finance Director and the County Manager and their respective designees are hereby authorized, empowered and directed, individually and collectively, to execute and deliver the Bond Purchase Agreement, including necessary counterparts, in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they deem necessary, desirable or appropriate. Execution by the Chairman of the Board, the Clerk to the Board, the Finance Director and the County Manager or their respective designees, individually or collectively, constitutes conclusive evidence of the County’s approval of any and all such changes, modifications, additions or deletions therein from the form and content of the Bond Purchase Agreement presented to the Board, and from and after the execution and delivery of the Bond Purchase Agreement, the Chairman of the Board, the Clerk to the Board, the County Manager and the Finance Director of the County are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Purchase Agreement as executed.
County Representative. The Chairman of the Board, the County Manager and the Finance Director of the County, individually and collectively, are each hereby designated as the County’s representative to act on behalf of the County in connection with the transactions contemplated by the Instruments and the Preliminary Official Statement, and the Chairman of the Board, the County Manager and the Finance Director, individually and collectively, are authorized to proceed with the financing in accordance with the Instruments and to seek opinions as a matter of law from the County Attorney, which the County Attorney is authorized to furnish on behalf of the County, and opinions of law from such other attorneys for all documents contemplated hereby as required by law. The County’s representative and/or designee or designees are in all respects authorized on behalf of the County to supply all information pertaining to the County for use in the Official Statement and the transactions contemplated by the Instruments or the Official Statement. The County’s representatives or their respective designees are hereby authorized, empowered and directed, individually and collectively, to do any and all other acts and to execute any and all other documents, which they, in their discretion, deem necessary and appropriate to consummate the transactions contemplated by the Instruments or the Preliminary Official Statement or as they deem necessary or appropriate to implement and carry out the intent and purposes of this Resolution and the on-going administration of the Instruments.
Severability. If any section, phrase or provision of this Resolution is for any reason declared to be invalid, such declaration will not affect the validity of the remainder of the sections, phrases or provisions of this Resolution.
Repealer. All motions, orders, resolutions and parts thereof, in conflict herewith are hereby repealed.
Effective Date. 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-5
Nay-0
Upon Commissioner Turnbow’s request, Finance Director, Misty Watson, clarified that the payoff term would be nine years.
EMERGENCY SERVICES OUT-OF-STATE TRAVEL REQUEST
Mr. Will Holt, Emergency Services Director, requested out-of-state travel for Assistant Fire Marshal Jay Kerley. Mr. Kerley will travel to Myrtle Beach South Carolina for the joint North Carolina/South Carolina 23rd Annual Fire Investigative Approaches Training Seminar. Funds have been budgeted to cover the expense.
Commissioner Wallin, seconded by Commissioner Turnbow, moved to approve the out-of-state travel request as presented.
VOTE: Aye-5
Nay-0
PARKS AND RECREATION OUT-OF-STATE TRAVEL REQUEST
Mr. Stephen Poulos, Parks and Recreation Director, requested out-of-state travel for Ms. Keron Poteat for the following activities in 2019:
Hilton Head, SC Special Olympics Tennis Championships October 16-20
Abingdon, VA Barter Theater Trip November 11
Pigeon Forge, TN Senior Overnight Trip December 9-10
Mr. Poulos stated that funds have been budgeted for the expenses.
Commissioner Turnbow, seconded by Vice-Chairman Kennedy, moved to approve the out-of-state travel requests as presented.
VOTE: Aye-5
Nay-0
PROPOSED RESOLUTION FOR 2020 CENSUS PARTNERSHIP
Mr. Joe Furman, Planning and Inspections Director, presented a proposed resolution in support of an accurate 2020 census, as requested by the US Census Bureau. The resolution encouraged all to participate in the census to obtain accurate information.
Vice-Chairman Kennedy, seconded by Commissioner Turnbow, moved to adopt the resolution as presented.
VOTE: Aye-5
Nay-0
REQUEST FOR EXEMPTION FROM LOCAL POLICY
On behalf of Mr. Robert Marsh, Maintenance Director, the County Manager requested the waiver of the County’s local policy requiring three (3) bids for informal projects as defined by the North Carolina General Statutes. The County will be requesting bids to be submitted and opened on September 10, 2019, for the West Annex (Cooperative Extension Building) culvert replacement project which is on an aggressive schedule to meet the trout stream moratorium that takes place from October 15 through April 15. In the event that three (3) bids are not received the project would be delayed until after April to comply with the trout stream moratorium as there would not be ample time to re-advertise and award the bid. This could potentially add additional cost to the project and also lose the potential bids already submitted.
Discussion was held regarding the timing of the project and what would happen if the bids received were not in an acceptable range. County Manager Geouque stated that the bids could not be requested until the engineer drew the plans for the culvert. Mr. Geouque also stated that a contract would be presented at the September 17 meeting for consideration by the Board.
Commissioner Turnbow, seconded by Vice-Chairman Kennedy, moved to waive the County policy requiring three (3) bids for informal projects, as long as at least two (2) bids are received, in order to allow for the project to be completed before the trout stream moratorium becomes effective October 15.
VOTE: Aye-4(Welch, Kennedy, Turnbow, Wallin)
Nay-1(Yates)
PROPOSED RESOLUTION IN SUPPORT OF FUNDING TO MEET THE MENTAL HEALTH, INTELLECTUAL/DEVELOPMENTAL DISABILITIES, AND SUBSTANCE USE DISORDER SERVICE NEEDS OF THE CITIZENS OF WATAUGA COUNTY
Vice-Chairman Kennedy shared that the State consistently continues to defund mental health including $48 million recently in single stream cuts. Vice-Chairman Kennedy presented a proposed Resolution In Support of Funding to Meet the Mental Health, Intellectual/Developmental Disabilities, and Substance Use Disorder Service Needs of the Citizens of Watauga County and read a portion of the resolution.
At the August 22nd Vaya Health Board meeting, the resolution opposing continued cuts to single stream funding for MH/IDD/SU individuals was adopted. The same resolution will be shared with Vaya Health County Commissioner Advisory Board (CCAB) as well as Consumer and Family Advisory Committee (CFAC) for consideration of adoption. Vaya is requesting individual counties to consider passing a similar resolution. If the resolution is passed and adopted, Vaya is requesting a copy in order to forward to the General Assembly.
Commissioner Wallin stated that the funding cuts directly affect Social Services as well. Commissioner Wallin stated that a meeting is being planned in Western North Carolina to further discuss the funding cuts with Departments of Social Services.
Vice-Chairman Kennedy, seconded by Commissioner Wallin, moved to adopt the resolution as presented.
VOTE: Aye-5
Nay-0
MISCELLANEOUS ADMINISTRATIVE MATTERS
A. Presentation of Watauga County Community Child Protection Team’s (CCPT) Annual Report and Appointment of Members for 2019
On behalf of Ms. Gail Hawkinson, County Manager Geouque presented the annual reports for the Watauga County Community Child Protection Team (CCPT) and the Watauga County Child Fatality Team (CFT). The Child Protection Team is tasked with reducing the acts of abuse and violence against children in the County. The following list of the team members for 2019/2020 was presented:
County Director of DSS Tom Hughes
Member of the DSS Director’s staff Chad Slagle
Local Law Enforcement Officer Carolynn Johnson
Attorney from Office of the District Attorney Andrew Cochran
Community Action Agency Director Robin Triplett (Children’s Council)
Superintendent (Designee) of School Admin Dr. Paul Holden
Mental Health (LME) Greta Mikus
Member of Board of DSS (Commissioner) Billy Kennedy
Guardian Ad Litem Coordinator McKenzie Kilpatrick
Local Health Care Provider Dr. Robert Lonas
Director of Public Health (Designee) LeAnn Martin, Chair, Child
Facility Team
Members at large
Children’s Advocacy Center Selena Moretz, Chair,
Child Protection Team
OASIS (Community Action Agency) Michelle Grit
Appalachian HealthCare (AARHC) Kim Greene
Mental Health Provider (Daymark) Dr. Murray Hawkinson
Watauga County Schools Megan Langdon
Commissioner Turnbow, seconded by Commissioner Wallin, moved to approve the Community Child Protection Team and Child Fatality Team Annual Reports and to approve the 2019/2020 membership list as presented.
VOTE: Aye-5
Nay-0
B. Boards and Commissions
County Manager Geouque shared the following for consideration:
Adult Care Home Community Advisory Committee
Ms. Stevie John, High Country Council of Government’s Regional Long-term Care Ombudsman, has submitted Ms. Evelina Idol’s and Ms. Janet Specht’s names for reappointment to the Watauga County Adult Care Home Community Advisory Committee. Both are willing to continue to serve for one-year terms if so appointed. These are first readings.
Vice-Chairman Kennedy, seconded by Commissioner Yates, moved to waive the second readings and reappoint Ms. Evelina Idol and Ms. Janet Specht to one-year terms on the Watauga County Adult Care Home Community Advisory Committee.
VOTE: Aye-5
Nay-0
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:
Employee Position
Mr. John Welch County Commissioner
Ms. Angie Boitnotte Department Head
Ms. Regina Houck Regular Employee
Ms. Amy Parsons Regular Employee
Mr. Greg McGrady Regular Employee
Mr. Derrick Ellison Regular Employee Alternate Member
Due to scheduling issues, there is a need to appoint additional alternate members. The following are willing to serve as listed:
Employee Position
Mr. Billy Kennedy County Commissioner Alternate Member
Ms. Misty Watson Department Head Alternate Member
Ms. Lynne Austin Regular Employee Alternate Member
Ms. Amy Snider Regular Employee Alternate Member
These are first readings.
Commissioner Yates, seconded by Commissioner Turnbow, moved to waive the second readings and appoint Mr. Billy Kennedy as the County Commissioner Alternate Member, Ms. Misty Watson as the Department Head Alternate Member, and Ms. Lynne Austin and Ms. Amy Snider as Regular Employee Alternate Members to the Personnel Advisory Committee.
VOTE: Aye-5
Nay-0
C. Announcements
County Manager Geouque announced the following:
· The High Country Council of Governments’ Annual Banquet is scheduled for Friday, September 6, 2019, at Linville Ridge.
· A joint meeting with the Watauga County Board of Education will be held 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.
· The Trustees of Caldwell Community College & Technical Institute invites the Board of Commissioners to a meeting on Wednesday, September 18, 2018, at 6:00 P.M. at the Watauga Instructional Facility on Hwy 105 Bypass, Boone NC, in Room 112.
PUBLIC COMMENT
There was no public comment.
CLOSED SESSION
At 9:00 A.M., Vice-Chairman Kennedy, 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-5
Nay-0
Commissioner Yates, seconded by Commissioner Wallin, moved to resume the open meeting at 9:55 A.M.
VOTE: Aye-5
Nay-0
Commissioner Turnbow, seconded by Commissioner Yates, moved to amend the agenda to include “Action After Closed Session” for consideration of an application to the Planning and Inspections Office for proposed amendments to the Valle Crucis Historic District Ordinance.
VOTE: Aye-5
Nay-0
ACTION AFTER CLOSED SESSION
Commissioner Turnbow, seconded by Commissioner Yates, moved to direct staff to submit proposed changes to the Valle Crucis Historic District Ordinance to the Planning and Inspections Office.
VOTE: Aye-5
Nay-0
ADJOURN
Vice-Chairman Kennedy, seconded by Commissioner Yates, moved to adjourn the meeting at 9:57 A.M.
VOTE: Aye-5
Nay-0
John Welch, Chairman
ATTEST:
Anita J. Fogle, Clerk to the Board