STATE OF NORTH CAROLINA
COUNTY OF AVERY

The Avery County Board of Commissioners met in Regular Session on Monday, February 6, 2006 at 3:00 p.m. in their offices, Avery County Administrative Complex, Newland, N.C.

Members Present: Kenny Poteat, Chairman; Susan Pittman, Vice-Chairman; Joe Strickland, Phyllis Forbes and Bill Beuttell

Members Absent: None

Call to Order
Chairman Poteat called the meeting to order at 3:07 p.m.
Chairman Poteat offered prayer.

Public Comments
Mr. Jack Watson with ACADA expressed appreciation to the Board on behalf of ACADA for the budget appropriation from the County this year. He said that these funds are being used to help pay for the expense of their office, shelter care, crisis line and supplies for their education program which is in the County school system.

Jerry Lee Dugger spoke on behalf of the students at the Crossnore Elementary School, asking the Board to help with getting safety guardrails next to the playground and picnic area at Crossnore School, a flashing light and the speed limit lowered to 25 mph or 10 mph, if possible. He expressed concern that cars speeding by the school might jump over the fence and go into the playground and picnic areas and injure the children. He advised he has spoken to the Board of Education and the Department of Transportation about these safety concerns. He has had the topic on the radio and it will be in the newspapers this week as well. He said he also has a notice on the Courthouse Bulletin Board about it. He said that with everyone’s help, including the DOT, Bd. of Education, Commissioners, parents and teachers, we can get something done for these children.

Chairman Poteat advised he has spoken with the Manager about this matter and that we feel we need to talk with the Bd. of Education to make sure we are all on the same page with this issue. If everyone is in agreement, we can then pass a Resolution to help support what you are asking for, the Chairman said.
Bill Beuttell said the Bd. of Education is meeting tonight and we need to call out there and find out whose responsibility this is, whether the DOT or the Bd. of Education, then get that person started on this. The Chairman asked that the Bd. of Education be contacted today to let them know the Board’s feelings on this matter.

Commissioner Beuttell commented that several months ago the Board of Education asked for realignment of our Athletic Conference. Since that reorganization, our football team tied for first place in the conference and our basketball team will be either first or second place in their conference as well. Our wrestling team, of which my son is a member, just finished the conference tournament and Avery County came in first place. Of 11 participants in the weight classes, we had all 11 medalists (7 first place, 1 second and 4 third place winners). Our children are doing well in this new conference. We supported going to a new conference and I feel it has given them a lot of self-confidence, Bill said. I think it will show this was a decision that was made in the right direction. Bill thanked the Board for lending their support to this worthwhile endeavor. Chairman Poteat said we have had a tremendous improvement because our children are now playing against schools the same size as our own.

Commissioner Joe Strickland commented that it’s good to be back home from his holiday in Florida, despite any assumptions that might have been made to the contrary. He added that he always welcomes the opportunity to come back and to be able to serve with this Board.

EDC Committee Appointment & Report – Bill Close
Bill Close, Chairman of the EDC, advised that they currently have 8 members on their committee and have one vacancy for a ninth member. At our initial meeting we discussed the two applicants we received. Both are well qualified; however, we withheld making an announcement as to our recommendation. We would like to have another month in which to get some additional applications. When we started the EDC we wanted to have each district represented. The two applications we have do not fit into that district that is not filled, so we are asking for another 30 days in which to try to get someone from that district to apply, Close said. We will make a recommendation after the 30 days is up.

We have provided the Board with a summary of the minutes of our initial meeting for your review. We have another meeting scheduled for the first Thursday in March. We are up and running and are extremely excited. Three of our members are in attendance today, Ms. Rachel Deal, Treasurer, Mr. John Greene, Vice-Chair, and David Rash, Secretary.

Mr. Close advised that the EDC has talked with Advantage West and has located some grant funds that can come to Avery County. These funds will give us an opportunity to take a look at the Airport site in relation to further potential for water/sewer at that location. Funding is available and we will be receiving the application soon. Robert Wiseman advised that this grant is for the initial feasibility study to determine what the project would cost.
Mr. Close said that he will be meeting with the Airport Commission regarding this proposed project in the near future. He added that it appears that they are in favor of the project. Everything will be run through the Airport Authority regarding this project, Close said.

Close said that the EDC sees the opportunity we have in the future to be very active in the community. We do have a need for help with transcribing communications letters from our group. We have no paid staff at this time. We are requesting secretarial assistance from some of the County staff to transcribe letters from time to time that we need to send to Raleigh, Advantage West, or possibly to parties interested in coming to Avery County. Mr. Wiseman recommended that I mention this need to you and see if you could provide us with some direction in this matter.

Chairman Poteat felt this matter should be left to the discretion of the County Manager. Joe Strickland commented that the budget process for the County will be starting soon, and I would encourage you to discuss with the Manager the possibility of incorporating this need into your budget for the coming year.
He added that the Board is somewhat handicapped with trying to take items such as this on a piecemeal basis. Bill Close said that they have a representative from Advantage West who will be meeting with their board on March 2 to give them a complete presentation on matters such as budgeting, structural issues, etc. in regard to setting up an EDC, thus allowing us to get up to speed and be able to provide the highest quality of service to the community. We will then be setting some parameters to present to the Board on what we feel will be helpful to our committee, Close said. He added that they are looking for some stop-gap measures for now and between the time budgetary decisions are made. The Chairman recommended that Mr. Close continue working with the Manager on this issue.

Robert Wiseman advised that we have taken some action in this regard. I felt justified in dedicating a telephone line in my office for EDC. My assistant will answer that phone on a temporary basis. This will be a very worthwhile line. In the past, the inquiries and calls may have gone to Planning, to the Chairman, or to me, etc. We are now planning a link from our website to the EDC. As to the clerical issues, as Joe said, this is a stop-gap measure until we see how things will work out. As to correspondence, depending on what needs to be sent out and the volume, we can divide it up among ourselves as to who is the busiest, etc. I will serve as the focal point for any communications that need to go out. Mr. Close can bring that to me and I will handle it. Once the workload becomes full blown, it will probably need more attention, Robert said.

Announcement of Assisted Living Facility
Bill Close introduced Mr. Chuck White with Spinnaker Development. He advised that Mr. White has a great project in the works in Avery County which is coming close to fruition. The EDC and other interested parties have also been working on this project, Close said. Mr. White stated that the efforts by the County’s EDC Committee have made all of our efforts to locate here possible. They helped with the search for a tract of land here in Avery County that met all of our needs, and they went the extra mile to help make this a success.

Mr. White advised the Board that he represents Avery Health Investors, a limited liability company based in Hickory, NC. Avery Health Investors plans to construct a 27,000 sq. ft. Assisted Living Facility in Elk Park, NC. We chose Elk Park because of the availability of sewer, which they have agreed to provide. This facility will be licensed by the State of NC for a 60 bed Assisted Living Facility. It will have 12 private bedrooms; 6 two-bedroom suites; and 18 semi-private bedrooms. It will be located off of Hwy. 19-E on a 4-acre tract across from Cranberry Middle School. Total cost of the project is around $4 million; land development and construction costs will be around $3.3 million dollars. The facility will bring approximately 30 full-time positions to Avery County.
We will meet with the Town of Elk Park tonight and show them our plans, White said. Our plans are complete and were submitted to the Dept. of Insurance on Friday. As soon as we receive the final blessing from Elk Park, we will be applying for a building permit and then start grading around March 1, 2006. The facility is scheduled for completion and occupancy in May 2007. Mr. White again thanked the EDC for all of their help in locating a suitable site here in Avery County. He added that they could not locate here in Newland because of the lack of sewer for this project.

Appointment – Grandfather Village Board of Adjustments
Robert Wiseman referred the Board to a letter from the Mayor of Grandfather Village in which they acknowledge that Doug Hall is no longer a resident of the extraterritorial jurisdiction of Grandfather Village and is no longer eligible to serve on the Grandfather Village Board. They recommend that Mr. Scott Ludgert be appointed to this slot, with a term to expire April 30, 2007.
Motion by Joe Strickland and second by Phyllis Forbes to appoint Mr. Scott Ludgert to serve on the Grandfather Village Board of Adjustment with a term to expire April 30, 2007. Motion unanimously approved.

WAMY Community Action Board Appointment
Robert Wiseman advised the Board that the requirements of the Community Service Block Grant for WAMY requires that there be a tri-party governing board for WAMY. One –third of the representation needs to be an elected official holding office at the time of their selection, or an appointed public official which would be me, or Tim Greene or Phillip, or our representative. Unless some of this Board wishes to serve as the representative, I suggest you consider giving the Manager the authority to appoint a representative out of the appointive section of the County.

Bill Beuttell advised that he is currently serving on the WAMY Board. Discussion on whether or not WAMY is correct in requesting an elected/appointed official for this slot. Bill said he felt it should probably be a member of the public rather than an elected/appointed representative. Joe Strickland suggested allowing the Manager to deal with this after he has checked into it.
Motion by Joe Strickland to delegate this matter to the Manager to deal with accordingly, once he has thoroughly checked into it. Motion seconded by Bill Beuttell and unanimously approved.

Tax Collector Report – Mary Daniels
Mary Daniels, Tax Collector, reported a total of $2,589,571.03 collected during the month of January 2006. She advised that she had received several return checks this month, which have since been charged back out.
Motion by Bill Beuttell and second by Susan Pittman to approve the Tax Collector Report as presented. Motion unanimously approved.

Tax Assessor Report – Phillip Barrier
Real & Personal Releases
Phillip Barrier presented Real & Personal Releases as follows:
County Release of $108.11 and Fire Tax of $22.77.
Phillip advised that the figures are reversed for the Fire Tax amount and the release amount on the written report.
Motion by Phyllis Forbes and second by Susan Pittman to accept these Real/Personal Releases with the change as noted. Motion unanimously approved.

Real & Personal Refunds
Phillip reported Real & Personal Refunds in amount of $806.36 and Fire Tax of $63.54.
Motion by Susan Pittman and second by Bill Beuttell to approve the Real & Personal Refunds as presented. Motion unanimously approved.

Reappraisal Report
Phillip Barrier reported that his office is working through the informal review process on the Revaluation Notices at this time. The cut off date is February 9 for receipt of Informal Review Notices. He added that a legal notice needs to be run in the newspaper that we are accepting applications for people to serve on the 2006 Board of E&R for Avery County. We can take applications until March 1 and then set the Board of E&R at the first meeting in March, Phillip said. We will also need to set the dates in April or May for the Board of E&R to convene. Joe Strickland asked about the process Phillip will be using for the applications. Phillip advised that he will be sending an application to everyone who served last year on the Board of E&R, and will also advertise in the local newspapers. Joe added that he would like to have Phillip’s input before the Board makes any final decisions about selection of the Board of E&R.

Phillip advised that his office has received over 200 appeals to date for the Board of E&R out of about 22,000 parcels. This means that we have received appeals on about 1/10 of 1% of our total number of parcels.

Discussion on the 2006 Revaluation. Bill Beuttell said he has received some phone calls asking him about the cap we have on people’s homes. I have been told that people are not getting charged the true market value of their homes, Bill said. He asked the Assessor to clarify that issue for the public and press. The Assessor advised that there is no cap in Avery County and that there has never been one; everyone pays the same tax rate times the value. If someone builds a home for $10 million, then it’s put on the tax books for $10 million and the person pays taxes on $10 million. Bill added that if a certain neighborhood or area of the County is in the southern end of the County vs. the northern end, it makes sense that the Fair Market Value of some areas of the County being their location, general vicinity and the sales going on in that area, may appreciate at a much higher rate than another area of the County. Phillip said he cannot mark up someone’s house in an area until he has a sale in that area to justify it. Joe Strickland commented that we have 9 golf courses in Avery County—more golf courses than we have stop lights, which is an important ingredient. You might expect that the value of property around those golf courses is going to be greater than the value of property that may be in a flood plain, etc. Phyllis said this would also apply in an area where new development has taken place and where there has never been development before. Phillip added that one sale does not make the market. He said he was sure everyone has heard about the 89.48 acres on Hanging Rock Rd. that recently sold for $5.4 million. It was listed for $140,000. However, that does not mean that all the land is going to go for $60,000/acre, Phillip said.

Robert Wiseman referred to the comparisons that Phillip has been listing in the local newspapers recently. There are no individual names or parcel id’s listed. He explained the information provided in the articles, adding that the properties listed are consistently selling for more than they are appraised.

Bill Beuttell asked the Assessor to explain the process the taxpayer can go through if they do not agree with their property valuation. Phillip said that the taxpayer can meet with the Board of E&R, which will convene in April. If the taxpayer is still not satisfied with that review, they can go to the State Board of Appeals.

County Manager Report – Robert Wiseman
QZAB Bonds
Robert Wiseman advised that Avery County has an opportunity to receive $2 million in funding, interest free, with these bonds for the Avery High School project. We jumped through all the hoops, dealt with the Local Government Commission, and they approved our funding. Based upon that approval, and in good faith, the Avery Board of Education entered into a contract to do $2 million worth of renovation to the Avery High School. The contract was let, the work is in progress and we are incurring debt. Now, at the eleventh hour, the Federal Government House & Senate Committees that created this funding opportunity have decided to change the rules in the middle of the stream. This is due to no fault of the Commissioners, Board of Education or the LGC; it is a Federal mandate. There are 3 issues that will be considered and they may or may not be finalized. It is still in a state of limbo. In the original agreement, the County did not have to put up any cash community contribution; it was in-kind. Cannon Hospital and the Board of Education worked together to create a situation so that we could get 10% of the total amount of the bond as in-kind. The Federal Government is now saying they want to look at making that a 10% cash bond. That has not happened yet, but is under discussion. The third change they are considering is to make this no longer interest free. There would be an applicable rate established for this $2 million we are to receive. Joe Strickland asked if we are now committed to this and are in a legal bind. Michaelle Poore advised that we are committed. Susan Pittman said she didn’t think we should be committed since it is now altogether different from when we first applied; the Federal Government has changed the rules in mid-stream. Robert Wiseman said we are set to close on this agreement with the Bank of America on Wednesday, but now we don’t know what the rules are. We are the only county in the State of N.C. that was on the ball enough to go ahead and get this thing rolling and get to the point we are now. Several counties across the state have been approved, but have not yet executed any contracts. So, because of our expeditious actions, we are the ones who are now under the gun, or could be under it.

Discussion continued on options available to us based on what the Federal Government does. Bill Beuttell said that if the Feds don’t enforce these new rules and everything goes as we had agreed to before. If they renege on their commitment, then we have to come up with $200,000 in cash and also pay an applicable rate of interest. We will still get the $2 million, but will have to comply with those other two conditions.

Robert Wiseman said that we will be recommending to the Board after today’s Public Hearing that the Commissioners, by resolution, give the Chairman the authority to execute these commitments upon the approval of the LGC, legal counsel, the Finance Officer, and myself, in case the signing of these documents becomes a matter of expedience. We don’t want to jump into this at the last minute without having all the information at hand. However, we also want to consider the debt that the School Board and Avery County is incurring as we sit here. That will be our recommendation, that the Board empower the Chair to sign that contract, subject to these contingencies, Robert said. If we aren’t happy within the next 8 or 10 days on this, then we will need to meet again and see which way we are going to go. We might end up just going with a straight installment loan, which might be to our advantage, depending on what the Federal Government does. Joe Strickland said he felt that we are put in a position where we have to wait for things to unfold. We have again been placed in the position of becoming victims of financial circumstances over which we have no control, and the Federal Government is in a position to change the rules without notice.

Public Hearing – Avery High School Property
Motion by Susan Pittman for the Board to recess from Regular Session and enter into a Public Hearing concerning the Avery High School Property. Motion seconded by Phyllis Forbes and unanimously approved with all members in attendance at 4:00 p.m.

The Chairman declared the Board to be in a Public Hearing at this time.
Written material was provided to the Board.
Robert Wiseman explained that we are looking at two situations, the first being the approval of the documentation before us right now, and the other would allude to what I just talked about regarding the $2 million in funding for the High School project.

Joe Strickland suggested the Board give the Manager the latitude to look at the most cost effective way to resolve this question. If the Government doesn’t change the rules and we still have the opportunity of $2 million interest free, then we should go with that, or if they change the rules and we see it is going to cost us something, then I would hope the Board would allow the Manager to find the most cost effective way to resolve this for us and that we would depend upon his judgment and recommendation as to what we should consider. The Board agreed.

Kenny Poteat read aloud a letter from the County Attorney, which states that she has been advised that the Bank of America is lobbying to have a grandfather provision added to the bill to allow current projects to proceed. Michaelle Poore said that she was told they should have an answer to that within the next two or two and one half weeks; no later than the end of the month.
Kenny Poteat said the letter also says that Michaelle asked the Board to approve the Lease, Rehabilitation Agreement and Installment Agreement as to form for a proposed closing to occur after this legal issue is rectified. Michaelle said if we go ahead and approve the form of these documents, then after all these issues are cleared up and we are able to close, then we can go ahead and close without having to hold another meeting. As long as none of the provisions change, we don’t have to bring those documents back before the Board for approval before the next scheduled meeting in March.

The Chairman asked for comments from Mrs. Grace Calhoun and/or Bob Tatum of the Avery Board of Education. Mrs. Calhoun commented that on behalf of the Board of Education and our students and citizens of Avery County, we ask you to consider accepting the deed for the High School property, as you must in order to proceed with obtaining the QZAB Bonds, even with all the ramifications and hindrances we have incurred in the past week. It is in the best interest of a quality educational program for our students that we proceed with the renovation of the high school in a timely and efficient manner. As your attorney has stated, this is a formality with these papers at this time. We would encourage you to accept, on behalf of our Board, the deed to the high school and all the property therein and to approve our leasing it back from you. In addition, agreeing to our rehabilitating or renovating the high school property.

Bob Tatum commented that the workers are currently working on the high school building and by the 20th of this month we will be receiving a sizable bill for that work. We will then have 10 days to pay.

The Commissioners discussed the issue of the Federal Government changing the rules in the middle of the stream, after we had already applied for the funds over a year ago. Bill Beuttell suggested contacting Congressman McHenry. Robert Wiseman advised that Senator Dole’s Office is aware of the situation as well as Congressman Virginia Foxx. Our local legislators would not have any influence over this issue. Sen. Dole and Congressman Foxx are both awaiting further input from Avery County on this situation. They are also aware that we are the only county in North Carolina that is being penalized. Grace Calhoun told the Board that the lady at the Local Government Commission told Robert that both of our boards had acted in an efficient and orderly manner in the application for these bonds.
Comments continued. Daryl Smith asked why the Commissioners or the Board of Education would sign a contract to do the work before they had the loan approved. Robert Wiseman advised that the loan was approved by the Local Government Commission, based on the distribution of the Federal monies. Now, the Feds have said they may be changing the rules on us. We have approval from the State on this, Robert said. Daryl asked why you would sign a contract if you were not assured that the bond money would be forthcoming. Robert said we were assured that the money was there. We were going to close with Bank of America this coming Wednesday, but now they have changed the rules.
Bill Beuttell said that sometimes when you are dealing with Government monies you get approval that you are going to be getting the money so you can begin to organize contracts and begin the bidding process, especially up here with the weather like it is. You have to get a head start on construction. A lot of times the government entities tell you to go ahead and begin, then the money comes afterward, Bill said. This is one of the times where we’re getting bitten with it, because the money didn’t come.
Robert Wiseman said Daryl has an excellent point, but when the Local Government Commission, Dept. of the Treasury for the State of North Carolina says to go ahead, if you can’t believe that, then what can you believe?

Joe Strickland said this Board entered into a verbal condition in good faith with the instructions from the State of NC and Federal Government. Probably the enabling body within the government no more knew of these ground rules than we did. It’s one of these things that happen from time to time and we become victims. We cannot control that, anymore than anyone else, Joe said. We had a specific need to be met and were told in good faith that we were on target, going to get the money and that we had the authority to move on, which we did.

Tim Greene advised that according to the LGC, we cannot incur debt at any time over a certain dollar amount without getting approval from the LGC, which we did. We were following their guidelines, Tim said. There were hoops to go through, and we followed all of them.

Ms. Rachel Deal commented that she would like to commend our Commissioners and all the parties involved in this. I think it’s a crying shame that Avery has been affected with this and I commend Robert for talking to Senator Dole and the other people involved. It makes a difference that the local people know that you all did a wonderful job and it was not anyone’s special fault, but rather the Federal Government.
Tim Greene added that the Bank of America stands ready to make a loan to us, on an installment purchase contract, subject to the LGC approval. He added that the LGC would give their approval for an installment contract. The QZAB Bond is so much more attractive and that is the one we want, Tim said. Hopefully we will be able to get it under the current conditions. Even if it does change, we should still be able to get much more attractive terms than just a regular installment loan.

Grace Calhoun advised that they had originally asked for 24 months on the timeline for the construction. In view of the beginning of school in August 2007, that was cut back to a timeline. We were waiting for the LGC to give us the go ahead so we could commence that and meet the timeline for certain parts of that work to be done in the summer when school was closed. We wanted to have the entire project finished by the beginning of the 2007 school term, she said.

Chairman Poteat said we might have been weaned with this one and that next time we might take a closer look and wait for the monies to be in hand before we begin anything.

Atty. Michaelle Poore advised that part of the purpose of this hearing is for the County to obtain title to the property known as the Avery County High School site. That will need to be handled out of the public hearing.

The Chairman asked for further comments. There were none.

Motion by Joe Strickland to close this Public Hearing and return to Regular Session at 4:20 p.m. Motion seconded by Susan Pittman and unanimously approved.

The Chairman declared the Board to be in Regular Session.

Joe Strickland suggested that the Board delegate authority to the Manager to continuously monitor this situation and report back to the Board on any changes necessary as to the financial direction we are taking. The Board agreed to this recommendation by consensus.

Kenny Poteat commented that he feels if we approach this matter correctly, that there is a really good chance we could be grandfathered.

The Chairman asked for approval of two items; accept the deed to the Avery High School property and then lease said property back to the Board of Education. Michaelle Poore advised that the lease provisions are included in the Resolution in the Board Packet she provided.

Avery County High School Title and Lease
Motion by Joe Strickland to accept the lease arrangement for the Avery High School property and approve the attached document as to form. Motion includes accepting title to the Avery High School property. Motion seconded by Bill Beuttell.
Discussion. Joe Strickland asked if the lease arrangement has been discussed with the Board of Education. Ms. Calhoun advised that item is on the agenda for their 5:15 p.m. meeting today.
For the record, Joe Strickland said that he assumes that everything that has occurred to this point has had the approval of the Board of Education and that there are no conflicts of interest with this project. Ms. Calhoun advised that there are no conflicts.
Motion unanimously approved with all members in attendance.

Michaelle Poore advised that the actual resolution authorizing the documents needs to be approved by this Board, subject to final approval by Mr. Wiseman, Mr. Greene, myself and the LGC. She advised she is referring to the Resolution included in the attached packet.

Motion by Joe Strickland to recognize the Resolution in front of us, entitled “Resolution Authorizing the Execution and Delivery of an Installment Financing Agreement, A Deed of Trust, a Rehabilitation Agreement, A Lease Agreement, Forward Delivery Agreement and Related Documents in Connection with a QZAB Installment Financing for School Improvements”, upon approval of the LGC, County Manager, County Attorney, and County Finance Officer. Motion seconded by Phyllis Forbes and unanimously approved with all members in attendance.

Michaelle Poore then advised that upon final approval of all of those parties, we need a resolution authorizing the Chairman to sign any documents necessary.
Motion by Joe Strickland that the Chairman is hereby authorized to sign any documents necessary following the approval of the LGC, County Manager, County Attorney and County Finance Officer on this project. Motion seconded by Susan Pittman and unanimously approved.

County Manager & Board Comments
Robert Wiseman commented that a year or so ago we were promised by certain state/federal agencies that in excess of $2 million that was determined to be needed for our stream restoration project in Avery County (EWP) would initially be up-fronted to the County so we would not suffer any cash flow problems. Then, that changed and they said we would have it in 2 weeks from the time we sent in our bills. It wound up being from six weeks to two months before we got the money. We were in the red over $1 million at one time. It didn’t quite work out the way we were told that it would. Two years ago we started an application process to build a new Avery Transportation facility. We were told by certain state/federal agencies that the money would be there. We did everything by the plans, jumped through the hoops, etc. A week ago we met and listened to all the excuses why they couldn’t fund our project. That is still ongoing. Joe Strickland said it’s a catch 22 situation. If you don’t move on expeditiously and resolve some of these issues, and you have to wait for all the documentation to take place in a state bureaucracy, we would never get anything done. Robert added that there are still people living right now in their father in law’s basement or in rented property whose houses were destroyed by a flood in September 2004. They have been promised and promised and they are still right where they were; it’s very discouraging.

Bill Beuttell reminded the Board that all the FEMA claims from the flood were officially inspected by FEMA Officials. After Avery County crossed all the t’s and dotted all the i’s, we received approximately $950,000 from the Federal Government in aid for our citizens when there was a county down east that received $2.6 million dollars but did not have a single disaster related claim. We have still not found out whether anybody has been accountable for that $2.6 million dollars, Bill said.

The Board took a brief recess at this time.

NC Forest Service – Budget Amendment – Joe Shoupe
Joe Shoupe, NC Forest Ranger, advised that as of September 1 the Forest Service began compensating personnel at the county level for On-Call/Emergency Callback time when there is a threat of wildfire related to the weather. There is no compensation for the times when it is raining or snow is on the ground, etc. This On-Call policy is basically for after hours until 11 p.m. and all day on weekends, from 11 a.m. until 11 p.m. As the level of fire danger increases, it goes from a 1-person to a 2-person staff (myself and the smoke chaser). More staff is needed during the higher level danger times.
I am here to request the County portion of 40% ($1,806) for the remainder of this fiscal year to cover cost of county personnel who respond to wild land fire and other emergencies under the On-Call/Emergency Call Back Policy. The total cost, based on approximately 2,258 hours for Avery County personnel with a compensation of $2.00 per hour, equates to $4,516. I am requesting the County’s 40%, or $1,806.
In the upcoming budget, we will budget for this expense. This came about as of September 1, 2005, after we had already submitted our budgets, Shoupe said.

Joe Strickland commented that he is not opposed to an amendment for this purpose but that he would suggest that as the Manager has the authority to transfer funds within the budget, that he identify the funds and transfer them, and then notify the Board of what action he took. That would then take us to the next FY, at which time you could budget for this expense. Joe said I recommend that we acknowledge that responsibility to the Manager and look to him for guidance. Joe Shoupe said the Manager recommended that he come before the Board on this matter. Robert Wiseman advised that if the Board is comfortable with this, then he can handle it. The Manager does have the vested authority to do it, but when you are increasing people’s salary outside the scope, I hesitate to do it without notifying the Board, Robert said.
Joe Strickland advised that the Board does not need to take action on this matter, that the Manager can handle it.

Susan Pittman made a motion to approve the transfer of funds to the NC Forest Service for this expenditure out of existing funds. Joe Strickland suggested that the Board can handle this by a consensus rather than a motion, because that would abrogate the responsibility of the Manager for taking action on something he already has authority to do. He said that we can approve it by consensus rather than making a motion. Motion was then withdrawn. The Board was in agreement to allow the Manager, per prior direction of this Board, to pursue this matter and find a transfer of funds of $1,806 for this purpose.

Agriculture Extension Request
Robert Wiseman advised that since the Board has agreed to handle the Forest Service amendment in this manner, that the request from the Agriculture Extension Service (Equity Action Plan) which is on today’s agenda, is the same situation. It is an intra-departmental situation. He recommended removing this item from today’s agenda in order to be consistent, and allowing him to accommodate it as a management issue under the authority given to him by the Board. The Board agreed to remove this item from today’s agenda and allow the Manager to handle it.

Policy Changes – Vacation for Temporary Employees
Robert Wiseman stated that we have been talking about this issue for the past 3 months and it’s time to put it to rest. We previously established the fact that temporary, part-time employees are subject to a pro-rata vacation and sick leave entitlement. The question is about temporary status. According to the NC Labor Board, we are not under any obligation to make a part-time employee permanent. Those people can work for an indefinite period of time and not be considered to be permanent at some point.
When those employees that are considered temporary become permanent, even though they are part-time, their mandatory participation in the Local Government Retirement System becomes a fact and we have to withhold 6% of their salary and we have to contribute 5% of their salary into the retirement system. The chances are that neither the County nor the employee will ever see the 5% that the County withheld, again. That is one issue. The other is the vacation time. We have discussed this several times. As it is now, no one is paid for accrued vacation when they leave County employment. I would propose to the Board that a person who leaves Avery County according to policy and in good standing to better themselves, or retire, etc., that if they have accumulated vacation time showing that they be reimbursed for that vacation time, Robert said. By the same token, if someone has not been a good employee, who hits the Chairman, sets the building on fire and gets fired, etc., then we would not pay that person for their accumulated vacation time. I think it would be a tremendous management tool. I don’t think it is appropriate for a person who leaves County employment under less than desirable conditions such as being fired for cause, should be reimbursed for vacation time. We have discussed this several times before.

There is also the establishment of the new part-time employee classification which is classified as NE or non-eligible. That would be the classification for any part-time or full-time temporary employee due to the minimum number of hours that person needs to be hired. We may have a position that will take 2-3 weeks or a month from start to finish. It doesn’t make good sense to try to keep vacation, sick or holiday pay up for those people who are going to be here such a short amount of time.

Joe Strickland commented that he mostly agrees with what the Manager has said, and would even yield on not setting a cap on temporary employees and allowing them to stay forever. I would remind the Chairman that we need to agree on this matter in principle, in order to keep these items from becoming an entitlement. I would suggest that the Manager give consideration to giving someone some latitude in these instances. If they say they are resigning and are taking their 2 weeks accrued vacation then leaving afterward, the Manager should have the right to separate them that day and pay them what we owe them so he can start recruiting effectively. Don’t sit there with your hands tied on being able to fill that position. I think the Manager needs the latitude and discretion on paying that out and separating the employee from employment so the Manager can move on with business and find a replacement.
As to the difference in paying an employee who leaves in good standing vs. not paying an employee who is terminated for cause, if I were an attorney representing an individual who works for Avery County and it were a female over 40 years old, I would probably suggest to that individual that they were an employee in good standing up until the time they were terminated. If you looked at the file, you would probably find that the individual had exemplary evaluations, but something went wrong and they were terminated all of a sudden. I would say that since they were a good employee up to that time and since they earned that time while they were a good employee, the County is operating under a double standard by denying your benefit, which they give to all other individuals. I would think that in a court of law if we were before a judge, that the position of the County as this policy is written, would stand up. However, if we were before a jury, I would suggest that we would probably lose, hands down. Joe asked the Attorney for her comments on this matter. Michaelle Poore said that legally the Board can do it either way; it’s a policy decision as to how the Board wants to handle the issue of accrued vacation pay. It is not a legal issue.
Susan Pittman said we’re not before a judge or jury; we are a body of government and we make our own rules. She added that if the employee knows that if they come in and set a building on fire or hit someone that they are not going to get their vacation pay, then that should be sufficient, as long as they are told to begin with. Joe Strickland said his recommendation is to pay the employees for their accrued vacation time.

Robert reminded the Board that vacation and sick leave are not an entitlement, it’s a privilege. The word “earned” is not used in this policy with relation to vacation and sick leave, rather the word “accrued” is used. The policy that I have proposed allows some latitude. It says we are obligated to pay a person who leaves in good standing according to policy, but are not obligated to pay in the event of termination for cause, Robert said. He said he feels this allows the Manager some leeway to use that benefit, not being an entitlement, and being accrued rather than earned. Bill Beuttell said he agrees with the Manager that you should reward meritorious service and that service opposite to meritorious should not be rewarded.
This matter was thoroughly discussed and approved in principle by the Board to allow these revisions as recommended by the Manager.

Republican Executive Committee Resolution
Robert Wiseman advised that the Republican Executive Committee has forwarded to the Board of Commissioners a Resolution which is a part of today’s agenda items. Robert said he thinks this is an issue of which the Board of Commissioners cannot change, even if they wanted to, because the sole authority lies with the local Board of Elections, subject to the State Board of Elections. All you can do is show support or lack of support on the issue. As far as any legal authority on this issue, I don’t believe it is there, Robert said.

Joe Strickland said this is a subject which should come before the Board of Elections and not this Board, unless this Board opts to consider a resolution similar to that of the Executive Committee of the Republican Party. Robert said this resolution and letter are asking that the Board of Commissioners have a special meeting to meet with the Republican Executive Committee to discuss this matter. Susan Pittman said she didn’t feel it necessary for us to meet with them because we have no say in the matter anyway. It is up to the Board of Elections. As long as they are abiding by the State Board’s rules, then whatever they come up with will be fine with me, just as long as they abide by the law, she said. Joe added that he didn’t think that the Bd. of Elections had to come to the Commissioners for approval of any changes they might want to make. He added that he would support a resolution to leave the 19 precincts as they are for the reason that I think it has generated more Federal revenue for us by having the 19 precincts as opposed to the recommendation or suggestion the Bd. Of Elections has made on the precincts.

Kenny Poteat advised that there was a meeting two or three weeks ago and there could have been 8 people there (5 Commissioners and 3 from Bd. of Elections). I was the only Commissioner there and there were no Board of Elections members, Kenny said. The presentation was made before me and the Bd. of Elections. Wayne Johnson and the poll workers were there. It was that the funding be directly related and linked to the 19 precincts and that the voting machinery would be bought and that was what the grant application would be for, and that was done. Joe is correct in what he said, Kenny added. Kenny said he feels this Board should consider a resolution of support of our own for the 19 precincts in Avery County. Joe Strickland said he would support it based on the revenue alone. Phyllis Forbes asked if this whole thing of reducing the precincts came about prior to that meeting, or not. Kenny said no one knows that. He said that his understanding is that none of the Commissioners were made aware of the meeting and also that no one on the Executive Committee was privy to this information either. Phyllis said in that case, she feels we should stay the course with 19 precincts.

Resolution in Support of 19 Precincts
Chairman Poteat asked the Manager to work on a resolution or letter for the Commissioners stating our support of the 19 precincts for Avery County.
Motion by Joe Strickland to support a resolution to continue supporting the 19 precincts in Avery County and to authorize the Chairman to sign the resolution. Motion seconded by Bill Beuttell and unanimously approved.

The Chairman asked that the Manager relay this information to the Republican Executive Committee, adding that if they still feel a meeting is necessary, then we will consider that as well. It was agreed that the Manager and the Chairman would decide whether or not a Special Meeting will be necessary on this subject.

Altamont Trash Site
Robert Wiseman advised that the Board held discussion in September 2004 regarding the flooding and safety aspect of where the Altamont site is located at the end of the Nursery Straight. Several Commissioners were vocal about whether or not to continue using that site given the probability of repeated flooding and also the safety issues at the site. They also debated on whether we should try to find another suitable site in that vicinity to relocate. The discussion at that time was that in July 2006, the trash site would be discontinued if we could not find another place to put it. Phyllis Forbes, Buddy Norris and I have looked and tried to find a suitable location out of the floodplain that would alleviate the safety hazards, but we have not been very successful. We have not found a suitable location, Robert said. Even if we could have, the mitigating factor is that through the Workforce Development Program we have manpower that would cost us nothing. These people are assigned to flood related or flood preventative programs. However, we would have to pay for materials ourselves. Buddy Norris will have preventative maintenance done around this site. We have also tried to get No Passing Zone or Trucks Entering Highway signs for this location, but have had no success.

Joe Strickland asked about a long-term solution for this site. Robert Wiseman advised that he felt that at some point in time, we may be able to locate a convenient, safe location out of the floodplain to combine both the Altamont and Three Mile sites into one site.

Joe advised that he is willing to support any cost in keeping the Altamont site operational until such time as it washes away. At that point, I will not agree to throw tax dollars toward something that is in a floodplain. If keeping it operational gives us breathing room to find an alternative, that’s fine. We have all recognized and said that it is a possibility that it will be closed down if it washes away again, Joe said.
Phyllis said that for right now we need to work on flood control and allowing the Workforce Development to do some things down there and keep the site open, because we don’t have an alternative. One of the things I think comes into play is that this site is used a lot and has more tonnage than the Three-Mile site. It is used about triple to what the Three Mile site is used. It would be making people from the Crossnore/Altamont areas have to either drive down to the Three Mile or Linville site if it were closed, Phyllis said, and that is a long drive if you live in Crossnore, etc.
Joe Strickland recommended keeping the Altamont site operational until it washes away. The Board agreed that the site should be kept operational until it washes away.

Recreation Advisory Committee – Dawn Dellinger, Chairman
Dawn Dellinger advised that the Board previously approved the money for the County to hire a Recreation Director. The Advisory Board then started the hiring process. The position was advertised and we received a total of 14 applications. Each application was reviewed and the top 7 candidates were interviewed. Selection was based on education, experience and overall quality of the information presented. All 7 applicants were qualified for the position and they were not all from Avery County.

The Advisory Board’s unanimous recommendation for the position of Avery County Recreational Director is Robbie Willis. He is highly qualified for the position with a Bachelor’s Degree from University of Tennessee at Chattanooga in Secondary Education, Recreational Specialist. He has over 15 years of experience in the field and has worked at A.S.U., East Tennessee State University, the University of Chattanooga and various internships. He has broad experience in grant writing and many contacts in the recreation community where he can tap into much needed resources for the Recreation Department. He has both supervisory and managerial experience in the field of recreation. He is a resident of Avery County, played sports here and his family is well established in Avery County, Dellinger said.

On behalf of the members of the Recreation Advisory Board, we strongly recommend that you approve our recommendation and instruct Mr. Wiseman to put Mr. Willis to work immediately as the Recreation Director for Avery County, Ms. Dellinger said. She then provided the Board with a copy of some strategic planning prepared by Mr. Willis.

Commissioner Strickland thanked the Recreation Advisory Committee for all their hard work in searching for a new Recreation Director. He added that the employment of Mr. Willis is at the discretion of the County Manager, as the Board is no longer involved with employment.

Robert Wiseman stated that the Recreation Advisory Committee is here today in the best interest of Mr. Willis and to get a show of support and a degree of unity from the governing board so they can leave here with the assurance that this Board is behind them 100%. He added that the paperwork for the employment of Mr. Willis has been done and that he will begin work at 8 a.m. on Wednesday.
Chairman Poteat added that he feels that the list of goals provided by Mr. Willis shows a lot of vision and planning on his part. The Board welcomed Mr. Willis, adding that he has their support and backing.

Robbie Willis commented that he has had his eye on this job since he was 14 years old and that everything he has done in his life has prepared him to do the job, and that he is looking forward to it. He said there are a lot of things we can do here and that he feels that in a short period of time you will see the results.

Finance Office Report – Tim Greene
Tim Greene reported fund transfers from the General Account to the NCCMT for month of December 2005 and January 2006.
Bank Balances as of 1/31/06:
General Account $ 959,880.95
NCCMT 17,456,036.41
Total $ 18,415,917.36

Avery County High School Project Ordinance
Tim Greene asked the Board to approve the Avery County High School Project Ordinance as presented.
Discussion by the Board on what action they need to take regarding approval of this Ordinance in light of previous discussion today about the funding for this project. Joe Strickland commented that by approving this Ordinance we would be clarifying our commitment to the project. The Board agreed that they have no choice but to approve the Ordinance. Tim Greene stated that, depending upon the financing, we may have to revise this Ordinance later on. He added that this Ordinance is assuming that we are moving forward with this project. Joe Strickland commented that the motion to approve should contain a contingency that this is contingent upon all the proper authorization falling into place. The Board agreed.
We will also need authorization for the Board to sign it, Joe added. He pointed out that his name needs to be replaced with Susan Pittman’s name as the Vice-Chairman on this document.

Motion by Joe Strickland to approve the Avery County High School Ordinance, as presented, with a notation that Susan Pittman be listed as Vice-Chair and that this motion is contingent upon the research that is being done concerning QZAB Funds through our Federal government. Further, that the Chairman has the authorization to sign this document. Motion seconded by Phyllis Forbes.
Discussion. Tim Greene advised that the total project cost is currently at $3,046,250. Joe Strickland asked about the other $1.04 million that was committed and if it is included in these figures. Tim advised it is included in this amount and that this Board has not decided as to what financing, if any, we will use in order to come up with that other $1 million. We will address how to plan for that extra million dollars in our next budget cycle, Tim said.
Motion unanimously approved with all members in attendance.

Budget Amendment # __________________ - Avery Senior Services
Tim Greene advised that R.D. Daniels, Director of the Avery Senior Center, received notification that his department has received some additional funding in the amount of $1,024.00 from the Administration on Aging, and that we need to approve a budget amendment to recognize this increased funding.

Motion by Susan Pittman and second by Phyllis Forbes to recognize revenue in amount of $1,024.00 from the Administration on Aging to the Avery County Senior Services Department. Motion unanimously approved.

County Attorney Report – Michaelle Poore
Michaelle Poore advised that there was a pending lawsuit against the County – Lilianna Morton vs. Avery County, for an automobile accident. That matter has been settled and the insurance carrier has paid out on it. The County is not out any money, Michaelle added.
There are no other pending actions at this time of which the Board needs to be made aware, Michaelle said.

Approval of Minutes
Motion by Bill Beuttell and second by Susan Pittman to approve the Minutes of the January 3, 2006 Regular Meeting and the January 17, 2006 Special Meeting of the Board as written. Motion unanimously approved.

Agenda Consent Items
Joe Strickland commented on a resolution by the Republican Executive Committee in Avery County. He said he is intrigued with some of the members of that board; namely one of them being a former County Manager, in that there is an effort to set a tax rate when we have no earthly idea as to what the budget may look like at this time. I don’t know how you could render a decision that is somewhat arbitrary and definitely capricious in that regard, Joe said.

Secondary Road Construction - in Avery County
Robert Wiseman advised the Board about an item not in today’s Consent Items, adding that he would provide them with a copy. He referred to a letter addressed to Chairman Poteat concerning the 2006 Secondary Road Construction Program in Avery County containing, among other things, a list of the State Road Numbers in Avery County.

Bill Beuttell commented that when we have our annual road meeting with the State DOT, I think that they keep on appropriating no more money than they did the year before. Given the cost of living increases, it means we are getting less and less money each year. They also admitted to me in a meeting that the roads in Avery don’t last as long as the roads off the mountain. Everybody in the government is talking about equity and equality to make sure everybody is being treated fairly. We have a road system in this county that is falling to pieces because the State government is putting less and less money into new roads each year and less money into the maintenance of the existing roads, Bill said. Because of our geological proximity here in the mountains, the lifespan of the investment the State is putting up here has a much shorter lifespan than the money they are spending on roads in places such as Hickory, Charlotte, Raleigh, etc. We have additional concerns here in the mountains that need to be addressed. If we addressed this issue to the DOT and they say they still won’t give us any more money, then at least we have addressed that issue. I would like to make an issue of that this year and get an answer from them as to if they are going to do something and if not, to please tell us they aren’t, Bill said.
Joe Strickland said that historically, funding ceases at Interstate 77. He added that you have to consider how the General Assembly is controlled. Bill said we have continually asked the General Assembly to give us revenue options here in Avery County to help us support ourselves, but they refuse to do so. I want everybody to know that no matter how hard we try, our requests seem to fall more and more on deaf ears, Bill said.

Adjourn
Motion by Joe Strickland and second by Susan Pittman to adjourn today’s meeting at 5:37 p.m. Motion unanimously approved.

___________________________________
Kenny Poteat, Chairman
Avery County Board of Commissioners

ATTEST: ____________________________
Nancy H. Cook, Clerk to the Board