STATE OF NORTH CAROLINA
COUNTY OF AVERY

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

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

Members Absent: Bill Beuttell

Call to Order
Chairman Poteat called the meeting to order at 3:05 p.m.
Commissioner Strickland offered prayer.

Public Comments
Ms. Emma Rogers, from Old Jonas Ridge Road, commented that she has been unable to get a one-half mile portion of the Old Jonas Ridge Road paved because 4 families on the road have refused to sign the right of way. She said the State does not have a right of way law whereby they can pave the road without the consent of the people who live there. Ms. Rogers said that she has been to the Dept. of Transportation and gone through all the procedures to try to get the road paved, but to no avail. She said that two families on the road would have to pay about $44,000 in a condemnation procedure for damages to the other people’s property in order to get the road paved, because evidently everybody’s property goes to the center of the road and the State does not have any right of way. Ms. Rogers said the Dept. of Transportation told her that Avery is one of the few counties that does not have a right of way. She asked the Commissioners what else she could do to get the road paved. Joe Strickland advised her that the County plays a secondary role in paving of roads. We have no say in what the State does as far as paving of our roads. However, we might be able to help you by talking to the Dept. of Transportation or sending a letter of support to the DOT for your request, he said. That is about the extent of what we can do because our hands are tied. Ms. Rogers asked where she could go or what she could do in order to get the regulations changed so she can get the road paved. Joe Strickland said that he did not think she could get the regulations changed, but that if it were to change, it would have to be done through our Representatives. He advised that Rep. Frye or Sen. Presnell might be able to shed some light on that matter. The Board agreed by consensus to write a letter to the Dept. of Transportation asking for relief in this situation and to send a copy to Senator Keith Presnell and Representative Phil Frye.

Travis Proctor spoke on behalf of the High County Sportsman’s Coalition regarding the sale of U.S. Forest Service lands in Avery County and the nation. Travis said that President Bush proposes to sell 300,000 acres of National Forest Service land, nationwide. They plan to sell 6,600 acres in the Pisgah/Nantahala national forests in Western N.C. There are two tracts in Avery County to be sold – total of 36.29 acres. According to the Register sent out by the Federal Government, this is only a starting point if this goes through. The High Country Sportsman’s Coalition is asking the Commissioners to consider drawing up a resolution in opposition to the sale of this property, Travis said. More information will be in the Avery Post next week about the sale of this property and people can comment either for or against the sale during the comment period, he said. None of the people I asked about it were in favor of selling Forest Service land anywhere, Travis said. Discussion on how much time the Board would have to act on this issue. Travis said that the Comment Period is from February 30 to March 30, and then if it goes through the Forest Service, it has to be passed by Congress. He added that it might even be better to oppose it then. If they get enough negative comments, it may not even go to Congress, Proctor said.

Joe Strickland suggested that with Board consensus, we could instruct the Manager to draft a Resolution for the Board to consider at our next meeting in this regard. Kenny Poteat added that McDowell County has already done a resolution in opposition to the sale of U.S. forest property. Following discussion, the Board instructed the County Manager to draft a resolution in opposition to the sale of U.S. forest lands in Avery County.

At the last meeting, Jerry Lee Dugger requested that guardrails, flashing light and speed limit signs be installed at the Crossnore Elementary School location. He returned to today’s meeting to inquire if anything has been done in regard to his request. Dugger said that this Board is running him around in a circle on this request and that this is the last time he will be coming in here to ask the Board for anything. After today, if I don’t get an answer, it’s going higher up; it’s going on television, Dugger said. Would you like to see it on Fox News that golf carts are more important than a child’s life here in Avery County? I am asking you which is worth more, golf carts over in Linville where they put up a 25 mph. zone and 4-way stop signs just for golf carts, or the lives of these kids down here at Crossnore Elementary School. I expect an answer to that today, Dugger said.

Kenny Poteat stated that he has received a lot of public input which agrees with Mr. Dugger’s position. Mr. Poteat said that this Board was supposed to meet with the Board of Education today for a joint meeting; however, the Board of Education moved that meeting to April 3, 2006. This issue is an agenda item for that meeting so that both boards can discuss it. He said that Mr. Dugger is welcome to attend that meeting. We will find out then who has the right and responsibility for this and something will be done, Poteat said. Dugger said that the DOT is sending him paperwork that shows that this is not their responsibility, rather it is the County’s responsibility because the parents and teachers of that school raised money to build that playground and the Commissioners approved to have the playground built. I think that makes the County responsible for the guardrails, Dugger said. Your dollars are going all over the county for this tourism stuff and I think you need to put some money toward these children instead of tourism. He said that he wants something in black and white today as to what the Commissioners are going to do.

Kenny Poteat said we appreciate your support and this is a worthy thing you are asking for. As to something in concrete today, this matter will be on the April 3 agenda of our joint meeting with the Board of Education.

Mr. Dugger added that the Commissioners have their meetings set so that the working man can’t be here to voice their opinions on things. People would like to have the meetings at 7 pm in the evening so they can come in and voice their opinion. Other folks have to take time off from work to come in here.
Kenny Poteat said the Board will consider Mr. Dugger’s suggestion about meeting times.
Mr. Dugger asked to be notified when this item is put on the April agenda.

Commissioner Comments:
Joe Strickland expressed appreciation for Kenny Poteat’s willingness to run for re-election this year. He said Kenny has provided this county with a great deal of stability over the past 12 years. If he is re-elected, I think it will offer continued stability for the work we have accomplished over the past 6 years.

Joe Strickland also said that the Clerk to the Board has brought a matter to his attention regarding revising Board Policy so that the first Monday of each month we can accommodate all of our public hearings, just before the normal business session begins. That will allow the Clerk an opportunity to be able to arrange these hearings outside of the regular business. We could schedule the hearings at a time such as prior to 3 pm on the first Monday of each month, or schedule them between the hours of 3-4 pm or any additional time that is needed, with such a revision. Without going into the business session, you could conduct the public hearings and dispense with them and move in a more expeditious manner. I would hope the Board would consider such a policy change. Between the Manager and Clerk, I hope we can give consideration to that change. The County Attorney will probably have some comments on that issue as well, Joe said. I think we can accommodate our obligation under statute to arrange, prior to normal business session, these public hearings. The Chairman asked the County Attorney to research this matter for the Board and to report at the next meeting.

Joe then referred to the Medicare information included in the Consent Items. He said that a move is afoot with the NCACC to support the counties giving up one-cent tax revenue in support of Medicare. That translates that counties will be losing about one-half billion dollars in revenues and the state will be gaining about $1 billion dollars in revenue. I will be required to vote on this in the near future, so I want some input from the Board. If this comes to fruition, we are going to have to set a one-cent tax rate in order to recover those losses. That makes us the bad guy, when in fact, Medicare is a state issue rather than a county issue. Apparently the state is trying to resolve this on the backs of the counties. I was in favor of this at the beginning, but now that I see the position it is going to put our county in with taxes, then I have reservations about it. So, I would like for the Board to tell me what direction I should take in voting on this issue in Raleigh, Joe said. Joe added that the die may already be cast, and regardless of what we say or do, it may not change what happens. He added that we are the only state that is now required to contribute to the State Medicare, which translates to $1.4 million annually to our taxpayers. Right now it appears there is a lot of support in doing this at the expense of the counties. The Chairman asked that the Board read what is in the Consent Items about this, think about it, and let the Manager know how they feel so he can pass their comments along to Joe within the next few days.

Phyllis Forbes commented that she is pleased with the new Health Department facility project. It looks like it’s really moving along now.

The Chairman asked if there were any candidates for County Commissioner in attendance today. There were two candidates, Scott Heath and Glenn Johnson. The Chairman thanked these two candidates for attending and also issued an invitation for all persons who are running for the seat of County Commissioner to attend one of our meetings. There is no better way to learn what is going on in your county than to attend the Commission Meetings in person, Poteat said.

Susan Pittman commented that it is a good experience to serve on this Board. She said I think we can all work together and get along. I am looking forward to working with our new members, Pittman said.

Robert Wiseman commented on Mr. Strickland’s discussion about holding public hearings prior to the regular meetings on the first Monday of the month. He said that is a good idea; however, I would not exclude the necessity maybe of having to hold a public hearing at the second meeting of the month because between the first and second meetings there may be legal timeframes that come together, so we need to keep that option open. Joe Strickland suggested placing a waiver clause in the policy giving the Chairman the opportunity to waive that policy if necessary.

Avery Airport Authority Appointments
The County Manager advised that two appointments to the Airport Authority have expired and are pending. The terms of Bob Barinowski and Sam Ray both expired in February. The Authority is recommending that both of them be reappointed for an additional 4-year term, expiring February 2010.
The Manager recommended that the Board make these appointments as requested.

Motion by Joe Strickland to reappoint Sam Ray and Bob Barinowski to a 4-year term on the Airport Authority, to expire February 2010. Motion seconded by Phyllis Forbes and unanimously approved with 4 members in attendance.

Tax Collector Report – Phillip Barrier
Phillip Barrier, Tax Assessor, presented the Tax Collector Report on behalf of the Tax Collector, Mary Daniels, who was unable to attend today’s meeting.
Mr. Barrier reported that a total of $243,392.92 was collected through March 1, 2006.
Motion by Phyllis Forbes and second by Joe Strickland to approve this report as presented. Motion unanimously approved with 4 members in attendance.

Tax Assessor Report – Phillip Barrier
Phillip Barrier, Tax Assessor, presented the report of Releases/Refunds for the month of February.

Real & Personal Releases
Phillip reported a total of $354.04 in Real/Personal Releases.
Motion by Susan Pittman and second by Phyllis Forbes to approve the list of Releases as presented in amount of $354.04. Motion unanimously approved with 4 members in attendance.

Real & Personal Refunds
Phillip reported a total of $322.24 in Real/Personal Refunds for the month.
Motion by Phyllis Forbes and second by Susan Pittman to approve the list of Refunds as presented. Motion unanimously approved with 4 members in attendance.

Resolution - 2006 Board of Equalization & Review
Phillip Barrier asked that the Board adopt a Resolution for the 2006 Board of E&R, as presented. This Resolution is a statutory obligation we have to fulfill. It states that the County Commissioners are not going to serve as the Board of E&R for 2006, gives the rate of pay for persons who are appointed to serve, etc. Phillip advised that he has started taking applications for the Board of E&R, adding that March 10 is the last date that applications can be submitted. He added that he has 3 applications in his office and 6 more are being filled out.

Motion by Joe Strickland to adopt this Resolution for the 2006 Board of Equalization & Review in Avery County as presented, and to give the Chairman the authority to sign the Resolution. Motion seconded by Susan Pittman and unanimously approved with 4 members in attendance.

Phillip Barrier then reported on ongoing work on the 2006 Revaluation.
He advised that his office finished their new construction field visits this morning. He said it looks as though the Bd. of E&R will begin on April 24, 2006. He added that they have about 300 appeals for that Board out of a total of 25,000 parcels in the County. Joe Strickland asked that Phillip explain the opportunities the taxpayer has to be heard if they take issue with the value set for their property. Phillip explained the rights of the taxpayer.

County Manager Report – Robert Wiseman
Health Department Construction Update
Robert Wiseman advised that we are almost back on schedule now on the Health Department construction project following a few setbacks. There were a few changes which the contractor was willing to absorb in order to expedite the completion of the building. We hope that we will have a certificate of occupancy by August or September of this year so we can move into that new facility.

Board of Elections Office
Robert Wiseman advised that there have been some changes at the Board of Elections Office recently. He advised that he did not include this information in the Board Packets last Friday because it is still a work in progress. Robert then provided the Board with a copy of his notes in this regard. He explained some of the events which have transpired over the past week at the Board of Elections Office.
By statute, the Board of Commissioners has no authority to hire, fire or discipline employees of the Avery County Board of Elections, Robert said. Several months ago, the Board of Elections and the Commissioners entered into a Memo of Understanding, recognizing the fact that the Commissioners have no authority to hire, fire or discipline the Bd. of Elections employees. They entered this agreement with the Bd. of Elections that the County Personnel Policy would be administered on their behalf by the County Manager. All the County Manger can do is recommend; I have no authority, and the Commissioners have no authority to intervene in this issue, Robert said. The sequence of events which have occurred are as follows:
1) Jackie Coffey resigned from the Bd. of Elections due to personal priorities. That left 2 out of 3 members on the Bd. of Elections. 2) When Danny Phillips declared his candidacy for Sheriff, Jack Hughes was forced to resign his position because he is the candidate’s uncle. This resulted in there being only one seated member, Mrs. Faynita Johnson, being left on the Board of Elections.
Joe Strickland commented that any appointments to the Bd. of Elections have to come from Raleigh, that we have no say so in it.
3) Wayne Johnson, Director of the Avery County Board of Elections, filed his candidacy for Clerk of Superior Court in Avery County on February 28, 2006. By doing so, he rendered himself ineligible to continue as the Director of Elections, per state statute. The State Board of Elections makes that decision, not the local Board of Elections. Wayne’s employment then ceased as an employee of Avery County with his filing.

In summary, Avery County now has only one official Board of Elections member, Wiseman said. We have no Director or Assistant Director. All vacancies on the Board of Elections must be filled before their recommendation for a director can be forwarded to the State Board of Elections. The earliest the State Board of Elections could consider a recommendation for board appointments would be March 9. The next meeting of the State Board will be March 21 and March 22. We have to make a recommendation and wait for their approval before that person can be hired. The Bd. of Elections cannot recommend a director when they have only one Board member. The Board of Commissioners has no authority in this matter, Robert said.

The earliest the State Bd. of Elections could consider a recommendation for two board appointments would be March 9. Chances are it won’t happen; instead, it will be at the state meeting on March 21 and March 22. It cannot delay the election process in the county. Robert added that the burden is on the State Board of Elections to solve this. He said that he thinks the Democratic and Republic Executive Committees have recommended persons to fill these 2 vacancies, but nothing has been heard from the State yet on their recommendations. The Commissioners are hamstrung until the State Board resolves this issue, and they must do it prior to the elections, which are scheduled for May 2.

Wayne Johnson vs. People of Avery County
Robert Wiseman advised the Board that today he received a subpoena –Wayne Johnson vs. People of Avery County. Joe Strickland commented that the Manager has met his obligation to call this lawsuit to the attention of the Board of Commissioners, and under policy he is instructed to then turn it over to the County Attorney. The Commissioners, under policy, will have no comment in this regard, Joe said.
Robert added that it is also policy that when any county department or individual has been notified that they are under litigation, that all information be handled between the respective legal counsels.

Employment Security Commission Lease
Robert Wiseman advised that he has included information in the Consent Items regarding the ESC Lease. Their lease has expired and they have chosen not to renew the lease. If they wish to continue, they have to give us prior notice of their intent to do so, and they did not do that. The current terms of the lease are being considered Robert then gave the Board a comparison of lease amounts currently being paid by the ESC Offices in Watauga and Mitchell Counties as compared to the amount Avery County receives from the ESC. The lessee in Boone pays the Town $12.25/sq. ft. and pays their own electric and janitorial; the Mitchell County lessee pays $10.93 per sq. ft. and their electrical, janitorial and maintenance costs. Avery County ESC pays $6.97/sq. ft. and Avery County pays the electric, utilities, maintenance and janitorial costs.
They are going to say that they can’t afford to pay the rent increase we are requesting, but if they can pay it in these other counties, then ESC can pay it in Avery County, Robert said.

Joe Strickland commented that this is a business decision for the Manager to handle. He said that if the local ESC Office had exercised its option under the contract, it could have gone one more year and had a real bargain, but they didn’t exercise that option, and this is a business decision. The Manager will exercise his responsibility to act responsibly on the finances of this County, Joe said. Robert said he wanted to be on record with this issue because it could become a pseudo-political issue, because if ESC Services are leaving Avery County, then the Board will likely be hearing about it from the public.

Mayland Community College – Dr. Suzanne Owens
Dr. Owens stated that she is here to introduce herself as the new President of Mayland Community College and also to thank the Board for their support of Mayland Community College and the Avery Campus. We are celebrating our 35th year at the college and our 3 counties have provided the local support very generously we believe, in terms of their budget restraints in all 3 counties. I wish to thank you and state that we look forward to a long, continued history of that support. I would also like to thank Mr. Sam Ray, former Chair and senior member of our board, for being with me today.

Dr. Owens stated that Mayland’s enrollment continues to grow, even with the lay-off situation being somewhat resolved. In terms of people already passing through our educational system, we have approximately 100 more students this spring than we had last spring. If you compare our enrollment now to 2001, we have approximately 400 more students enrolled for spring than we did at that particular time. Eighteen of those students are enrolled in a new Human Services Technology program. The Avery Campus had growth last year and exceeded the 50 fte required for funding of the facility, so the Avery Campus did receive some state funding last year, and has for the first time grown beyond the 50 fte, which is full time equivalent students enrolled.

We will be holding a reception on May 8, 2006 from 3:30 p.m. – 5:30 p.m. in celebration of the Avery Campus of Mayland Community College, Dr. Owens said.

Joe Strickland commented on how well Mayland is doing in all 3 counties. He complimented Dr. Owens and the college on the fine job they are doing. Kenny Poteat said we have had excellent leadership at Mayland over the years. Susan Pittman said we are very fortunate to have Dr. Owens as the leader of our community college, especially as she is one of our own. Dr. Owens advised that she has been employed at Mayland for the past 18 years.

Discussion on the new State Lottery and what revenues it may represent to the college. Dr. Owens said she understands that the higher education portion will be $34 million and that would be divided with the university system. We are usually the lesser partners in a division, she added. She also said that the monies would be designated as student financial aid. Phyllis Forbes said there was talk that the Lottery money would go for public education, but we don’t know that yet. She asked Dr. Owens if those monies would be supplanting funds they currently receive from the State. Dr. Owens said they don’t know that yet, either. Discussion was held on this matter.

The Board took a break at this time.

Public Hearings
Motion by Susan Pittman and second by Phyllis Forbes for the Board to go out of Regular Session for purpose of holding 4 public hearings, as previously advertised. Motion unanimously approved with 4 members in attendance at 4:20 p.m.
The Chairman advised, upon advice from the County Attorney, that the Board would be holding all 4 public hearings consecutively, at the times allotted, then the Board would reconvene in Regular Session and vote on adoption of required documents from those Hearings.

Public Hearing - $2 Million Variable Rate Installment Financing Contract, Avery High School Project
The Chairman called the Public Hearing to order at 4:20 p.m. Several members of the public and press were in attendance, as well as members of the Avery Board of Commissioners, County Manager, Finance Officer and County Attorney.

Tim Greene, Finance Officer, commented that at a previous meeting we held a Public Hearing for a $2 million dollar QZAB (Qualified Zone Academy Bond financing). That is currently hung up in Federal legislation between Congress and Senate. The Senate wants to revise how the counties participate in the QZAB. There are 3 changes being proposed by the Senate to that legislation, but the House wants to leave it as is. They will have to get together and work out the details, Tim said.

The QZAB Bond is very attractive financing and we are very interested in being able to ultimately get that financing. We have been approved for it and it is now just a matter of the details being worked out with Federal legislation, Tim said. In the meantime, we are holding another public hearing so that in the interim, if this legislation is settled and if we need to get some temporary financing, we can do so. We are in the process of paying some bills out of pocket, and we will be reimbursed with either the QZAB or the installment loan. This is only for the purpose of getting a temporary or “bridge loan” to hold us over until the QZAB legislation is decided, then it would be paid off, Tim said.
Michaelle Poore, County Attorney, added that it will provide the temporary financing for the $2 million QZAB, but if for some reason the QZAB does not work out, then this $2 million loan can be rolled into permanent financing. That way we won’t have to come back and hold a second public hearing on this. We talked to the bank about setting up a variable rate for the first year on a $2 million dollar loan, with a fixed provision that would kick in if we are still in the loan after that period, Michaelle said.

Comments: Joe Strickland said that there are two issues, the first being the bond itself and what may happen to it. The second issue is that since we don’t t know what will happen with the Feds on the bond, we are going to have to go into a $2 million dollar loan to substitute for that QZAB. If it all works out, that’s good, but if not, then we will have a $2 million dollar debt. Michaelle Poore said that if that QZAB does become effective at a later date, we can then roll this $2 million loan into that QZAB.
Joe Strickland said the dilemma is that we are encumbering debt as we speak and we have one of two choices; we can either dip into Fund Balance or find a financial solution such as this loan to bridge us until the QZAB Bond is resolved by the Federal Government. Michaelle Poore said that if the QZAB does not become an option, then this will turn into permanent financing.

Joe Strickland commented that worst case scenario would be that the $2 million loan would change direction and it may be one of two things; it might go down the tube or we may find ourselves having to pay an interest subject to whatever Congress concludes. By exercising the second option, if the Fed’s interest rate is greater than the loan, we have the opportunity to go either way. Michaelle advised that is correct.

Kenny Poteat added that the original $2 million QZAB was supposed to be interest-free; whereas, now there may be some interest attached. However, either way, we made a commitment and we are sticking to it.

Bob Tatum, Project Manager for the High School, advised that work is currently underway on this project. The 400 pod has been demolished and they will now start putting things back. They have also started work on the Gym. We hope to put new electrical, plumbing, ceilings, recessed lights, doors and windows in the High School with that $2 million, Tatum said. The total bid project cost is $3,046,000.00. Kenny Poteat advised that we will discuss at a later time how that additional $1 million will be used.

Commissioner Strickland commented that it appears that due to circumstances, we are backed up against the wall on this and have no other choice. We committed ourselves in good faith, based upon what the State was recommending to us, then somebody changed the rules while we are incurring debt for what we agreed upon, which is now changed. The significant difference is the fact that we are either going to get the $2 million interest free or we have a backup which will cost us a certain level of interest through the Bank of America, Strickland said. Robert Wiseman advised that we started out with a $2 million interest-free loan and now, depending upon what the Feds do, it may not be interest free, and it might be to our advantage to do an installment loan as opposed to the QZAB. What we are doing here with Tim’s direction is ensuring that we don’t lock ourselves into a lose situation. This is a bridge loan. We are ensuring our options to take the course that is most beneficial to the people of Avery County, Robert said.

Chairman Poteat advised that once we are out of our public hearing process, we will need approval of the Resolution on this matter.

Phyllis Forbes asked if we have a timeframe as to when the Federal Government will be making a decision on the QZAB. Tim Greene said the Feds want to continue this program so that any changes we make will be retroactive to any loan closed after December 31. I think they will resolve these problems this year. The Senate and House Subcommittees are supposed to meet the middle of this month, but how long it will take them after that, I don’t know, Tim said. I would think within a month or two they would resolve this matter, but we don’t know, Tim said.

Sam Ray suggested that rather than paying interest, why don’t you just take it out of Fund Balance. Kenny Poteat advised that the Board will certainly explore that possibility.

There being no further comments, the Chairman declared this Public Hearing closed at 4:33 p.m.

Public Hearing - $1,046,000 Fixed Rate Installment Financing Contract – Avery High School Project
Chairman Poteat called this Public Hearing to order at 4:34 p.m. Members of the public and press were in attendance, as well as members of the Avery Board of Commissioners, County Manager, Finance Officer and County Attorney.

The Chairman stated that this is a Public Hearing regarding $1,046,000 at a fixed rate installment financing contract for the Avery County High School project. He asked Tim Greene, Finance Officer, to comment on this matter.

Tim Greene stated that the total cost for the Avery High School Renovation Project is $3,046,000. The maximum amount we can borrow under the QZAB is $2 million dollars, so that leaves another $1,046,000.00 that Avery County will have to fund, whether it be in Fund Balance, installment loan, or some other option. With these public hearings, we are getting approval so that when the time comes, if the County decides to get a loan, then we will have the public hearing process done and a Resolution in place so our options are that we can either borrow the other $1,046,000, or we can do pay as we go financing, Tim said.

Chairman Poteat then asked Bob Tatum, Avery High School Project Manager, what the additional $1,046,000 would be used for. Tatum said it would be used for basically the same thing as the $2 million. He said that the High School is an old building; it was finished in 1968 and is 38 years old. It needs a lot of work. We hope that this $3,046,000 will get us through the next 15-20 years by doing wiring, plumbing, windows, doors, ceilings, lights, asbestos removal, etc. We were at $4-5 million cost estimate on this project at one time, but are now down to $3,046,000 Tatum said.

Joe Strickland commented that at a joint session with the Board of Education, we rendered the decision that we would commit ourselves to this additional $1 million because through the concerted effort of the school system and the County, they had reduced this from a $5 million dollar bill down to roughly $4 million. It was something that in our discussion we said that we could not start it and then not see it through to fruition. I said to this Board that this is a debt service and it goes at the top of the heap. I also reminded the Board that because we are committed to a “pay as you go” process, that it gives us the opportunity without robbing Fund Balance, which is already earmarked for part of this “pay as you go” commitment, to spread this indebtedness over more than one fiscal year, thereby not overburdening the taxpayer, Strickland said.

Chairman Poteat said we had lengthy conversations on this matter and we met several times with the Board of Education. At one point we discussed everything from a new “state of the art” high school to refurbishing. I feel that some well chosen elected officials go their heads together and came up with the right idea, and that is where we are at now, and what it’s going to cost to get where we need to be as a county.

The Chairman asked for further public comments. There were none. The Chairman then declared this Hearing closed at 4:39 p.m.

Public Hearing – Second Required Hearing for CDBG Scattered Site Application
The Chairman called this Public Hearing to order at 4:40 p.m. There were several members of the public and press in attendance, as well as members of the Board of Commissioners, County Manager, Finance Officer and County Attorney.

The Chairman turned the Hearing over to Michelle Ball, High Country Council of Governments, to explain the necessity of this second CDBG Hearing.

Michelle Ball stated that this Public Hearing is the second required for the Community Development Block Grant Scattered Site Housing Program for 2006 in Avery County. Every three years, each county receives $400,000 for this program for substandard housing and it is used for scattered site housing repairs or replacement of homes. Our committee in this county has met on this matter and we will be making a final selection of these homes in the near future. Our application period was December 1 – January 27, 2006. We advertised in the paper and I solicited from other people; we received about 20 applications, but only 19 were eligible, Michelle said. One household was over on the HUD income limits, and I have 7 more applicants to visit. I am visiting each home and taking pictures. I will bring that information back to the Committee as well as the family situation and what repairs are needed, Michelle said. The Committee will then decide which homes we will select. It will be narrowed down from 19 homes to about 6 or 8 homes that will receive repairs.

Kenny Poteat said that with 19 homes vying for around $400,000 in funds, how many homes can we hope to repair or refurbish with this amount of money. Michelle said we are limited to around $30,000 if we go in and actually repair the home. The State says that we cannot do any repairs to a mobile home unless it is less than 8 years old. The State will not allow us to replace a single-wide mobile home with another single-wide, so we are replacing with double wides or putting double wides back in place on a permanent foundation. The owner can then ultimately turn it into real property if they wish to. The cost of those is from $55,000 to $65,000, depending upon the grading, wells and septic system. We might do 5 replacements as compared to 10 rehabs. These days we are not getting the homes that can be repaired. Michelle added that they will probably be able to help from 6 to 8 people with these funds.

Michelle advised that as long as the CDBG line item at HUD is funded, we are guaranteed these grant funds every 3 years. It used to be that we had to compete for these funds, but it is not like that now, Michelle said. We are scheduled to receive another Scattered Site Grant in 2009.

Susan Pittman asked how they dispose of the old single wide mobile homes when they are replaced. Michelle said we have been allowed to take them to the landfill sometimes and they are crushed. We usually separate the metal from everything else. Sometimes it is burned on site and the metal is taken to the landfill. She said that we have to take down the old home, whether frame or mobile home; that is a requirement. Susan asked where these people stay in between the time they have to move out of their old home and when they can move into their new home. Michelle said that if they have enough property, we allow them to stay in their old home while we are putting the new home on that same property. They can then move into the new home and we will take down the old one. Sometimes these people will stay with other family members while we are working on their homes. Once, I had to put some people up at a hotel for about a month because they had no other family. We don’t do that very often if we can help it because it is an extra expense to the project which takes away from another home.

Joe Strickland commented that we are simply meeting a statutory obligation to hold a public hearing. It requires no action on our part.

The Chairman asked for further public comments. There were none. He then declared the Public Hearing closed at 4:45 p.m.

Public Hearing – CDBG Closeout, Energy X-Change
The Chairman called this Public Hearing to order at 4:46 p.m.

The County Manager introduced Heather Dawes, Executive Director of Energy X-Change. Ms. Dawes stated that she is here to observe and to meet the Board today. She said that all of these grant proceedings took place before she came on board with the Energy X-Change. She advised that the Project Manager during this grant period was Tamara McNaughton.

Ms. Tamara McNaughton stated that she managed this grant and she is here today to represent Energy X-Change. She said we had monies from September 2004 and she closed it out in October 2005.

Chairman Poteat asked for questions from the public regarding the closeout of this $75,000 planning grant for Energy X-Change. This grant expired effective January 31, 2006. There were no questions from the public.

Commissioner Strickland asked if we have satisfied all of our obligations under the grant in order to retire it and whether there are any outstanding issues. Ms. McNaughton advised that there are no outstanding issues and that we have successfully completed the project and all requirements have been fulfilled. She added that at some time in the future we will be receiving further monies for Energy X-Change.

Robert Wiseman, County Manager, advised that this $75,000 is known as a capacity building grant. It is not for construction or brick and mortar, but rather for the development of the organization—for software, furniture, etc., for things that increase the capacity to continue on. Robert suggested that it would be worthwhile to visit the Energy X-Change site which is located down at the old landfill on Brushy Creek Road. The old landfill has been drilled and tapped for methane gas. That gas is being used to provide energy for the greenhouse operation, hydroponics, and other projects down there. The original plan is to have a micro turbine down there that will be fueled by this methane process. We have had a few setbacks with that but it is still on the drawing board to create energy to sell back to Carolina Power & Light Company. Another phase is a woodworking operation in addition to the agricultural part of the project, which is designed to propagate endangered species in a controlled environment. A kiln will be fired with the heat generated by this methane gas which would supply energy for the lathe and wood-turning equipment. That is what this grant was basically used to facilitate, Robert said. It is an ongoing process and an idea whose time has come. They should be very proud of this project, Wiseman said.

The Chairman asked if any action is required of this Board regarding the closeout of this grant. Ms. McNaughton advised that no action is required.
The Chairman asked for further comments. There were none. The Chairman declared the Public Hearing closed at 4:50 p.m.

There were no other public hearings at this time.
Motion by Joe Strickland for the Board to go out of the Public Hearing session at 4:50 p.m. Motion seconded by Phyllis Forbes and unanimously approved with 4 members in attendance.

Resolution - $2 Million Installment Financing Contract
Motion by Joe Strickland to adopt this Resolution regarding a $2 million Installment Financing Contract and authorize the Chairman to sign it. Motion seconded by Phyllis Forbes and unanimously approved with 4 members in attendance.

Resolution - $1,046,000 Installment Financing Contract
Joe Strickland asked if the Board previously approved a resolution in this regard. He was advised that no resolution was approved previously.
Motion by Joe Strickland to adopt this Resolution Authorizing the Filing of an Application for Approval of a Financing Agreement Authorized by N.C. General Statute 160A-20, and authorize the appropriate parties to sign. This is for $1,046,000, which completes our obligation under the renovation of the Avery High School. Motion seconded by Susan Pittman and unanimously approved with 4 members in attendance.

Resolution CDBG #03-C-1192 – CDBG Closeout, Energy X-Change
The Manager advised the Board that a Resolution for the Closeout of this CDBG funds for Energy X-Change needs to be approved by the Board. He then read aloud the proposed Resolution.

Motion by Joe Strickland and second by Phyllis Forbes to approve this Resolution on Energy X-Change CDBG Grant Closeout as presented, and authorize the Chairman to sign it. Motion unanimously approved with 4 members in attendance.

Proclamation - Dr. Mary Martin Sloop Highway
Ms. Melinda Martin Pepple of Crossnore School, Inc., appeared before the Board on behalf of Dr. Phyllis Crain, who was unable to attend today’s meeting. Ms. Pepple advised that their objective today is to recognize Dr. Sloop for her numerous contributions to the area by naming part of U.S. 221 for her. This area would start at Linville Falls at Famous Louise’s Restaurant and go to Linville. We want to rename this highway in honor of Dr. Mary Martin Sloop. We are working through the Dept. of Transportation in North Wilkesboro to accomplish this and we are hoping to have this done within a 3-month period. We have designed a proclamation and several groups, including our board and the Tree Grower’s Association have already signed this proclamation. She then read the proposed Proclamation aloud. Ms. Pepple advised that there will be a slight change in the Proclamation as written today in order to make it more consistent. The wording will be changed from Mrs. Sloop to Dr. Sloop in order to make it more consistent.

Chairman Poteat added that the road naming would be only for the portion of U.S. 221 that lies within Avery County. Mr. Poteat said he thinks this would continue the legacy of one of the finest ladies ever to live in this area. He asked if there is any possible opposition to the naming of the road or if there might be plans to name a portion of that road after anyone else. Ms. Pepple advised that it would not supercede anything else, to her knowledge.

Motion by Joe Strickland that along with the suggested revisions, that we adopt this Proclamation and authorize the appropriate signatures. Motion seconded by Susan Pittman and unanimously approved with 4 members in attendance.
Melinda Pepple advised that they will re-do the Proclamation and bring it back for the Board to sign.

Finance Officer Report – Tim Greene

Tim Greene advised that the County’s Fund Balance amount has swelled due to all the tax revenue coming in right now. A good bit of this will be going out between now and the end of the year. Of that $18 million, our Unreserved Fund Balance is nearly $4.2 million dollars and we have maintained 20% through our last year’s expenditures. Kenny Poteat added that, in layman’s terms, this is a checking account rather than a savings account. Joe Strickland commented that it is important for the Commission candidates, and everyone else, to appreciate the fact that even though we have an $18 million dollar Fund Balance, with the adopted philosophy that we are going to pay as we go, that the $18 million has a goodly portion of it committed either in the completion of the Courthouse, the renovation of the Jail or the renovation of the schools, etc. It may also serve us the opportunity to hold the line on our taxes in the up and coming budget process, Joe said.

Budget Amendment #_____________ CHAF Grant
Tim Greene advised that the County received some additional funding from the NC Dept. of Crime Control & Public Safety - Crisis Housing Assistance Funds (CHAF), in amount of $872,020.00. These funds are to be used to replace homes destroyed by Hurricanes Ivan and Frances. We approved $400,000 in a previous Budget Amendment that we had received earlier. This will bring the total grant up to $1,369,500.00. This is a 100% reimbursement grant, Tim added.

Motion by Phyllis Forbes to recognize the CHAF Grant in amount of $872,020.00, second by Susan Pittman and unanimously approved with 4 members in attendance.

Robert Wiseman advised that this money replaced about 10 homes that were destroyed during those floods or were condemned as a result of the floods. It has been a slow process and some people are still living with relatives, etc. These monies have nothing to do with the Scattered Site Grant we discussed earlier, Robert said.

County Attorney Report – Michaelle Poore
Michaelle Poore advised the Board that there is no pending litigation other than the item the County Manager brought up today. She added that she hopes to have a report on that matter next week. There have been no changes in other pending items.
Robert Wiseman advised that he received that registered letter just a few minutes before he walked in here this afternoon and had not had a chance to share it with the Board previous to the meeting.

Approval of Minutes
Motion by Susan Pittman and second by Phyllis Forbes to approve the Minutes of the February 6, 2006 Regular Meeting. Motion unanimously approved with 4 members in attendance.

Agenda Consent Items
The Chairman advised that the Board has alluded to several of the Agenda Consent items during the meeting today.
Joe Strickland commended the Manager for his fiduciary responsibility of reporting to the Board the budget changes that were made. He made these changes without exceeding the appropriations that have been made by this Board during the budget process. I would say that because of the business decisions the Manager has made that he has removed the element of politics from this and he is to be commended for the work he has done.

Assisted Living Facility, Elk Park
Susan Pittman asked Bill Close, EDC Chairman, about the new Assisted Living Facility that is planned for Elk Park. Mr. Close advised that he will be meeting with the developer later this evening and will also go back to Elk Park for a meeting with the Town Board at 6 pm tonight. Everything has moved along very nicely with the exception that there seems to be some continuing negotiation which needs to be done with the developer and the Town of Elk Park on specifically the infrastructure fees that the Town wants to charge. The developer seems to need some further explanation. Close said. Hopefully the negotiations won’t break down. I should have further information within the next couple of days. We are very optimistic. The investors want to press forward and continue negotiations and try to get the last few items resolved, Close said.

The Board adopted the Consent Items by consensus.

Upcoming Meetings
The next Regular Meeting will be on April 3, 2006 at 3 p.m.
The Board will also meet in a joint meeting with the Board of Education at 5:15 p.m. on April 3. The Commissioners will be hosting that joint meeting, Poteat added. We will begin our twice monthly meetings effective May 2006.

Adjourn
Motion by Joe Strickland and second by Phyllis Forbes to adjourn this meeting at 5:10 p.m. Motion unanimously approved with 4 members in attendance.

___________________________________
Kenny Poteat, Chairman
Avery County Board of Commissioners

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