MINUTES
 
WATAUGA COUNTY BOARD OF COMMISSIONERS
MONDAY, FEBRUARY 1, 2010
 
 
            The Watauga County Board of Commissioners held a regular meeting on Monday, February 1, 2010, at 9:00 A.M. in the Commissioners’ Board Room of the Watauga County Administration Building.
 
                        PRESENT:       Jim Deal, Chairman
                                                John Cooper, Commissioner
                                                Tim Futrelle, Commissioner
                                                Winston Kinsey, Commissioner
                                                Anthony di Santi, County Attorney
                                    Robert E. Nelson, Jr., County Manager
                                    Deron Geouque, Deputy County Manager
                                                Anita J. Fogle, Clerk to the Board
 
            Chairman Deal called the meeting to order at 9:04 A.M., welcoming those in attendance.
 
            Commissioner Cooper opened the meeting with a prayer.
 
                [Clerk’s Note: Vice-Chairman Winkler was unable to attend due to an out-of-town commitment.]
 
APPROVAL OF MINUTES
 
            Chairman Deal called for additions and/or corrections to the January 19, 2010, regular and closed session minutes.
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to approve the January 19, 2010, regular meeting minutes as presented.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            Commissioner Cooper, seconded by Commissioner Futrelle, moved to approve the January 19, 2010, closed session minutes as presented.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
APPROVAL OF AGENDA
 
            Chairman Deal called for additions and/or corrections to the February 1, 2010, agenda.
 
            Commissioner Cooper, seconded by Commissioner Futrelle, moved to approve the February 1, 2010, agenda as presented.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
REQUEST TO APPOINT THE HOME AND COMMUNITY CARE BLOCK GRANT (H&CCBG) ADVISORY COMMITTEE AND LEAD AGENCY
 
Ms. Angie Boitnotte, Director of Project on Aging, stated that each year Watauga County was required to appoint a Home and Community Care Block Grant (H&CCBG) Advisory Committee and a lead agency to determine how best to utilize the H&CCBG funds for the coming Fiscal Year. Ms. Boitnotte recommended the following for appointment to the committee: Commissioner Tim Futrelle, Anita Davie, Jim Atkinson, Linda Bretz, Gail Hawkinson, David Loop, Margie Mansure, Christy Pruess, Pam Rush, Sara Shoemaker, Barbara Adams, Pat Coley, Becky Council, Anna Meyers, Dick Oehser, Dr. Milton “Bunk” Spann, and Betty Wyse. 
 
            Ms. Boitnotte also requested that the Project on Aging be appointed as the Lead Agency.
 
            Commissioner Cooper, seconded by Commissioner Futrelle, moved to appoint the Project on Aging as the Lead Agency and appoint the following to the H&CCBG Advisory Committee: Commissioner Tim Futrelle, Anita Davie, Jim Atkinson, Linda Bretz, Gail Hawkinson, David Loop, Margie Mansure, Christy Pruess, Pam Rush, Sara Shoemaker, Barbara Adams, Pat Coley, Becky Council, Anna Meyers, Dick Oehser, Dr. Milton “Bunk” Spann, and Betty Wyse.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
TAX MATTERS
 
            A.        Monthly Collections Report – Tax Administrator Kelvin Byrd presented the Tax Collections Report for the month of January 2010.
 
B.         Releases and Refunds – Mr. Byrd presented the following Refunds and Releases for January 2010 for Board approval:
 
TO BE TYPED IN MINUTE BOOK
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to approve the Refunds and Releases Report for January 2010, as presented.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            C.        2010 Tax Listing Period Extension Request – Mr. Byrd requested that the tax listing period for 2010 be extended through February 28, 2010. The purpose of the extension was to allow ample time, due to recent weather conditions, for citizens to file personal property. Mr. Byrd presented a draft resolution which authorized the extension.
 
            Commissioner Cooper, seconded by Commissioner Futrelle, moved to adopt the resolution authorizing the extension of the 2010 tax listing period through February 28, 2010 as presented by Mr. Byrd.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
FINANCE MATTERS
 
A.        Budget Amendments – Chairman Deal welcomed Ms. Margaret Pierce on her first official day as Watauga County Finance Director. Ms. Pierce presented the following budget amendments for Board approval:
 
            Account #                    Description                                                           Debit             Credit
104199-499101           Contingency-Board of Education                                            $34,800
109800-498043           Transfer to Capital Projects – WHS                 $34,800
433980-398010           Transfer from General Fund                                                    $34,800
435911-499100           Contingency – WHS Project                            $34,800
 
            The amendment transferred additional proceeds above the amount budgeted for the sale of the Edmisten House property to the contingency for the high school project.
 
            Commissioner Futrelle, seconded by Commissioner Cooper, moved to approve the budget amendments as presented.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
B.         Surplus Property Request – Ms. Pierce presented a list of property and requested the items be surplused and subsequently sold through GovDeals, recycled, or scrapped as appropriate.
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to surplus the property as presented by Ms. Pierce and to authorize the property to be recycled, scrapped, or listed for sale on GovDeals.com as requested.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
C.        Official Depository Designation Request – Ms. Pierce requested approval of Bank of Granite official depository designation forms for the County’s various financial accounts due to the appointment of a new Finance Director. The Bank required the forms which authorized appropriate parties to sign checks, drafts, and other public orders for Watauga County.
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to approve the Bank of Granite official depository designation forms as presented to the Board.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
MISCELLANEOUS ADMINISTRATIVE MATTERS
 
A.        School Matters
 
1.         Proposed SkyLine Membership Corporation Lease Agreement – County Manager Nelson presented a lease request between the County and SkyLine Membership Corporation for a 50 x 50 foot area on the new high school site in the vicinity of the building. The purpose of the lease was to allow the Board of Education to contract with SkyLine Membership Corporation for internet services. The service agreement was to generate approximately $2,000 per month in savings to the Board of Education and allow SkyLine to waive installation fees. This arrangement was also to offer more capacity and faster service to all of the County’s schools.
 
            The Board discussed the following items that needed to be addressed prior to consideration of the lease: 1) identify the location of the space needed by SkyLine; 2) allow the County Manager and/or the New High School Sub-Committee to discuss the length of the lease with SkyLine; 3) have the County Attorney prepare an appropriate lease to protect the County’s interests; and 4) ensure that the County had final approval of the design of the building.
 
After discussion the Board agreed, by consensus, to table further discussion until the March 1, 2010, meeting to allow time for input and a potential recommendation from the New High School Sub-Committee regarding this request.
 
2.         New High School Change Order Request # 37 – County Manager Nelson presented Change Order #37 for the new high school project in the amount of $22,046. The change order was due to the placement of masonry veneer over cast-in-place retaining walls in areas 1 and 3 as requested by the School Board. The County Manager stated that funds for this Change Order were to be allocated from the Board of Education’s FF&E Budget.
 
            Commissioner Futrelle, seconded by Commissioner Cooper, moved to approve Change Order # 37 in the amount of $22,046 for the new high school project with funds to be allocated from the Board of Education’s FF&E Budget.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            B.         Sheriff’s Office Out-of-State Travel Request – County Manager Nelson stated that the Sheriff’s Office had requested an investigator be allowed to attend out-of-state training in Myrtle Beach, South Carolina on March 11th and 12th. The investigator was scheduled to teach a class as well as attend the remainder of the drug diversion seminar. The County Manager stated that, currently, all County Departments had travel frozen with the exception of required or mandated training for certification purposes.
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to approve the out-of-state travel for the Sheriff’s Office as requested.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            C.        Contingency Fund Request for Landfill Gas to Energy Project – County Manager Nelson presented a request from Lisa Doty, Recycling Coordinator, to establish a contingency fund in the amount of $15,000 for the Landfill Gas to Energy Project. A contingency fund was not established when the project was originally approved. The contingency amount was to bring the project’s total to approximately $175,268, which was still below the original $200,000 projected cost. 
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to approve a contingency fund in the amount of $15,000 for the Landfill Gas to Energy Project as requested.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            D.        Discussion of Federal Issues for Submission to the NCACC – County Manager Nelson stated that discussion was tabled at the last Board meeting regarding Federal issues that were to be presented at the National Legislative Conference in March 2010. The County Manager shared the fact that the North Carolina Association of County Commissioners (NCACC) had previously established Federal issues of statewide importance and stated that the NCACC welcomed any additional items. After further discussion, no additional items were submitted.
 
E.         Boards and Commissions – County Manager Nelson stated that the appointments of Tony Gray and Lisa Martin as members of the Tourism Development Authority were to expire in February 2010. Both were willing to serve again, if reappointed. The County Manager stated that Ms. Suzanne Stevens, owner of Valle Crucis Bed & Breakfast, had also expressed interest in serving. 
 
No action was required at this time as this was a first reading for the appointments.
 
F.         Announcements – County Manager Nelson announced that Guilford County was hosting an Ethics Training Class for Elected Officials on February 16, 2010, from 8:00 A.M. to 10:00 A.M. in Greensboro. The class satisfies G. S. 160A-84 requirements.
 
By consensus, the Board directed the County Manager to contact the High Country Council of Governments and/or Mr. Jim Blackburn to request ethics training be conducted locally for officials from the High Country’s counties and towns.
 
County Manager Nelson announced that Western Carolina University’s Public Affairs Department was presenting a seminar on February 19, 2010, from 10:00 A.M. to 3:00 P.M. in Asheville regarding opportunities and training in gauging public opinion.
 
            County Manager Nelson announced that the High Country Area Agency on Aging and Region D Senior Tar Heel Legislature were sponsoring a Legislative Brunch on April 20, 2010, at the LaQuinta Inn in Boone from 10:00 A.M. to 12:00 noon.
 
PUBLIC COMMENT
 
There was no public comment.
 
CLOSED SESSION
 
            At 9:31 A.M., Commissioner Cooper, seconded by Commissioner Futrelle, moved to enter Closed Session to discuss Attorney/Client Matters, per G. S. 143-318.11(a)(3).
 
VOTE:   Aye-4 (Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1 (Winkler)
 
Commissioner Cooper, seconded by Commissioner Kinsey, moved to resume the open meeting at 10:30 A.M.
 
VOTE:   Aye-4 (Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1 (Winkler)
 
ACTION AFTER CLOSED SESSION
 
At the December 7, 2009, regular meeting the Board adopted a resolution designating Watauga County as a Recovery Zone. By adopting the resolution, the County was eligible to and subsequently submitted a Notice of Intent to Issue Recovery Zone Bonds to the North Carolina Tax Reform Allocation Committee which included a Recovery Zone Economic Development Bond (RZEDB) allocation request in the amount of $4,524,000 to construct an indoor recreation facility. The recreation facility was proposed to be approximately 80,000 square feet and was to be located on County-owned property adjacent to the new high school, currently under construction. The County also planned to request additional reallocated RZEDB, if available, for this project.
 
Recently, the County was notified that the unallocated capacity, or funds not earmarked by eligible counties, was sufficient to allow Watauga County to apply for an additional amount for the construction of a future Recreation Center. The deadline for the first round of applications to issue the bonds was February 15, 2010. Discussion was held regarding the potential to request a total amount of $12,000,000 in RZEDB for a new recreation center. 
 
            According to the North Carolina Department of Commerce the oversight responsibility for the issuance of RZEDB rests with the North Carolina Local Government Commission (LGC). For a bond to be approved by the LGC for sale, all projects were required to demonstrate financial feasibility. To be considered, the borrower (County) must provide evidence that it has satisfied one of the following criteria: a commitment from a bank or other financial institution to purchase the bonds; a commitment from a bank or other financial institution to provide a letter of credit to support the bonds; or evidence that, based on the credit strength of the underlying borrower, the bonds were to have at least an investment grade rating of BBB or better.
 
            A supplemental application was to be required by those requesting reallocation funding which allowed for greater detail about the economic benefits of the specific project with emphasis on the positive effect the project was to have on the community, region and state including job creation and private investment. Submission of Bond counsel of record was also required.
 
            The Notice of Intent did not obligate the County but merely gave the County the option to utilize the bonds; however, if the Board chose to follow through with the project, the bonds were required to be issued by April 15, 2010, or be included on the May 2010 agenda of the LGC for approval.
 
Discussion was held regarding the need for an indoor recreation facility in Watauga County, a need which has been discussed by the Board of Commissioners since 1999. A site for a new recreation center was included adjacent to the new high school currently under construction. The site has been rough graded and the parking lot, which was to serve the dual purposes of being utilized for school functions and athletics as well as the future recreation center needs, has been constructed. The Watauga County Parks and Recreation Comprehensive Systemwide Plan, which was adopted at the January 19, 2010, Board meeting, reiterated citizen desire for an indoor recreation facility.
 
The members of the Board of Commissioners have communicated with the Western Youth Network (WYN), an agency that works to mentor youth and deliver important information and life skills training to middle-graders in an effort to prevent substance abuse. Discussion was held regarding the importance of working with WYN by including a teen center as a part of the recreation center with an overriding goal of preventing high school dropouts.
 
            After discussion, the Board took the following actions:
 
            Chairman Deal appointed a sub-committee to track the progress of this process. The sub-committee included Chairman Deal, Commissioner Cooper, County Manager Nelson, Deputy County Manager Geouque, Finance Director Pierce, Planning & Inspections/Economic Development Director Furman, Parks and Recreation Director Poulos, and such others as designated by the County Manager.
 
Commissioner Cooper, seconded by Commissioner Futrelle, moved to direct County Manager Nelson and/or Deputy County Manager Geouque to prepare and advertise a Request for Qualifications (RFQ) for architectural services for the construction of a recreation center.
  
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-(Winkler)
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to direct Planning & Inspections/Economic Development Director Furman to submit the application for unallocated funds entitled “Recovery Zone Bonds Request for Reallocation” in an amount of $7,476,000, which was to bring the total amount requested for a new recreation center to $12,000,000.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            Commissioner Futrelle, seconded by Commissioner Cooper, moved to direct Finance Director Pierce and/or County Manager Nelson to acquire evidence that, based on the credit strength of Watauga County, the bonds, if obtained, were to have at least an investment grade rating of BBB or better and to gather information relevant to the proposed project including interest rates.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            The Board, by consensus, directed the sub-committee to work with the Town of Boone on issues relevant to the proposed project.
 
 
            Commissioner Cooper, seconded by Commissioner Futrelle, moved to appoint Parker Poe as Bond Counsel, contingent upon moving forward with the proposed project.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
            Commissioner Cooper, seconded by Commissioner Kinsey, moved to proceed with a fact-finding mission to gather information which would allow the Board to make an informed decision regarding the construction of an indoor recreation center which could provide additional recreational activities for those in the area; allow for collaborations with the Western Youth Network in providing a space for a teen center; create additional jobs; and provide additional activities for tourists visiting the area.
 
VOTE:   Aye-4(Deal, Cooper, Futrelle, Kinsey)
              Nay-0
              Absent-1(Winkler)
 
ADJOURN
 
            Chairman Deal adjourned the meeting at 10:45 A.M.
 
 
Jim Deal, Chairman
 
 
ATTEST:
Anita J. Fogle, Clerk to the Board