MINUTES

WILKES COUNTY BOARD OF COMMISSIONERS

OCTOBER 6, 2009

The Wilkes County Board of Commissioners met on Tuesday, October 6, 2009 at 5:00 P. M. with the following members present: Chairman Zach Henderson, Vice Chairman Keith Elmore, Commissioner Gary Blevins, Commissioner Luther Parks, and Commissioner Charlie Sink. 

Also present for the meeting were Tony Triplett, County Attorney; County Manager John Yates; and Alene Faw, Clerk to the Board. 

The meeting was called to order by Chairman Henderson who welcomed those in attendance.   

INVOCATION & PLEDGE OF ALLEGIANCE – The Invocation was led by Commissioner Luther Parks. The Pledge of Allegiance and the 4-H Pledge were led by members of the 4-H Club. 

MINUTES - Motion was made by Commissioner Charlie Sink, seconded by Commissioner Luther Parks and unanimously adopted to approve the Minutes of the Board Meeting held on September 15, 2009.

BUDGET AMENDMENTS & BUDGET TRANSFERS - Vice Chairman Keith Elmore made a motion to approve Budget Amendments No. 10 (General Fund), No. 11 (Extension Local), and Budget Transfer No. 4 (Information Technology Services). The motion was seconded by Commissioner Gary Blevins and unanimously approved.

ROAD PETITIONS - Motion was made by Commissioner Charlie Sink seconded by Commissioner Luther Parks and unanimously adopted to approve the following road petitions:

                        Green Walnut Street and White Walnut Street

                        REQUEST:     Addition to State System

                        Jackson Drive and Bell Avenue

                        REQUEST:     Addition to State System

TAX DEPARTMENT – RELEASES - Tax Administrator Alex Hamilton asked the Board to approve tax releases as presented. He stated these are mainly the result of sending the tax bills out and mistakes were made.

Vice Chairman Keith Elmore stated there are a lot of computer errors and asked what that is. Mr. Hamilton stated on the listing for Business Personal Property the program did not depreciate it correctly. He stated the software company is working on fixing that. He stated if the property was tied into a parcel of land it did not depreciate the equipment. He stated that should be automatically depreciated so they had to go in and manually depreciate everything. He stated they have made the software company aware of this and they will take care of this.

Commissioner Charlie Sink made a motion to approve tax releases in the amount of $180,004.48 as requested. The motion was seconded by Commissioner Gary Blevins and unanimously approved.

TAX DEPARTMENT - 2009 UTILITY TAXES - Alex Hamilton, Tax Administrator, requested the Board charge him with collecting 2009 utility taxes in the amount of $720,766.25. 

Commissioner Luther Parks made a motion to charge the Tax Administrator with collecting the 2009 utility bills. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.

Commissioner Charlie Sink asked Mr. Hamilton if he is seeing a big change in the utility valuations. Mr. Hamilton stated they dropped a little bit for this year but it is not as drastic as what he thought. He advised the State values all of that. Commissioner Sink stated the Tax Department does not have any control over this. Mr. Hamilton stated it was not as major as what they were expecting. He stated he had budgeted a slight decline so he should be all right in that regard. 

4-H WEEK PROCLAMATION - Chairman Zach Henderson read a Proclamation recognizing National 4-H Week. He stated the group of 4-Hers led the Pledge earlier and did a good job.

Vicky Shew stated this is the 100^th year for 4-H.    Chairman Henderson told the group they do a great job and thanked them. 

Commissioner Luther Parks made a motion to approve the Proclamation as presented. The motion was seconded by Commissioner Charlie Sink and unanimously approved.

NATIONAL 4-H WEEK

OCTOBER 4-10, 2009

WHEREAS, 4-H youth across the nation are leading efforts to solve problems in their communities and make a difference for their futures. 

WHEREAS, 4-H is the largest youth development organization in North Carolina and the largest in the nation with six million young people.

WHEREAS, 4-H in North Carolina claims 239,904 youth members and 23,000 volunteers, while Wilkes County’s 4-H program numbers more than 1,410 members and more than 250 volunteers.

WHEREAS, 4-H as part of the NC Cooperative Extension System of NC State University and NCA&T State University is a program where youth learn through opportunities that provide them hands-on experiences in 4-H’s mission mandates of science, engineering and technology; healthy living; and citizenship.

WHEREAS, 4-H has connected youth and their communities with the innovative research and resources from our nation’s 106 land-grant universities and colleges for more than 100 years;

NOW, THEREFORE, I, Zach Henderson, Chairman of the Wilkes County Board of Commissioners, do hereby proclaim October 4-10, 2009, as National 4‑H Week in Wilkes County. I urge the people of this community to take advantage of the opportunity to become more aware of this special program that enhances our young people’s interests in their futures as part of Wilkes County 4-H Youth Development and to join us in recognizing the unique partnership between our County and our State University System.

                                                       /s/ Zach Henderson, Chairman

      Wilkes County Board of Commissioners

APPALACHIAN REGIONAL LIBRARY BOARD OF TRUSTEES APPOINTMENTS - County Manager John Yates stated he received a letter stating the Trustees of the Wilkes County Library Board recommend the reappointment of Joyce Anderson of Wilkesboro and of Bill Warden, Jr. of Wilkesboro to the Appalachian Regional Library Board of Trustees. He stated they are recommending Ms. Anderson to serve another four year term beginning August 2009 and ending August 2013 and Mr. Warden to serve another two year term ending August 2011. 

Commissioner Gary Blevins made a motion to approve the reappointments as recommended. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.

TOWN OF RONDA – WATER PROJECT - Victor Varillo, Mayor of Ronda, stated he has Benjy Thomas with West Consultants with him. He thanked the Board of Commissioners for their help in support of the Town of Ronda’s infrastructure projects over the years and also on behalf of the people in the eastern part of Wilkes County. Mr. Varillo stated at the beginning of the year the Town of Ronda sent out an application to the American Reinvestment and Recovery Act to expand their water system. He stated they were awarded a nearly $1.5 million award to expand their water system to reach into eastern Wilkes County and specifically to go to the Pleasant Hill community which has some serious water problems. He stated they have sub-standard lines, very low water pressure, and there is poor water quality throughout that area for people that are on wells that will benefit from this project. Mr. Varillo stated at the time they were counting on having a minimum of 150 customers. He stated those would be taken over from Elkin on the Wilkes County side. He stated they did not know at the time they submitted the application that approximately 100 of those customers are actually within the Town limits of Elkin and they have no problem as their water system has been upgraded already so they are only looking at about 50 customers. Mr. Varillo stated the idea was to build a system they could add onto so over time they would like to go from their water tower to C. B. Eller School, up to the Pleasant Hill community, and loop around to be the first part of the project. He stated later on they would move back down to Highway 268 where there are a lot of people with water quality issues and wells drying up to make a complete circle. He stated that was the idea behind getting this first phase of the project together. Mr. Varillo stated they have identified approximately 324 homes in the area that would benefit if they wanted to hook up to the water system. He stated they have contacted dozens of these potential customers and have identified at least another 30 or 40 that want to attach. He stated the Pleasant Hill Baptist Church is also behind this project. He stated they really want it to go their way as they have a daycare center they want to expand. He stated right now they are not able to do that and there is an urgent need for that service in that part of the County. Mr. Varillo stated C. B. Eller School has a need for water and for fire protection. He stated they are on a well system and they have their own septic tank system and have some water issues. He stated their water is heavily treated so they can drink it and use it and this would help alleviate that problem. He stated the School System is very much behind this project. Mr. Varillo stated the award is in two parts. He stated one half of it is money that is awarded to the Town of Ronda and they do not have to repay that. He stated the other half is a zero percent interest loan payable over a twenty year period. He stated in order to make this project work they have conservatively estimated the cost to be $3,111 per month and they will have a shortfall of $1,538 because they will not start with the whole customer base they were hoping for. Mr. Varillo stated the Town is asking the County to make up that shortfall until they add more customers. He stated that would be a monthly payment of $1,538 which would not start for another year until after the project is completed. He stated it will probably be the beginning of 2011 when they start paying this money back so it will not be needed for well over a year. Mr. Varillo stated they have been canvassing the area as they want to start up with as many customers as possible. He stated he believes that projects of this kind need to be self-sustaining. He stated this is an enterprise project and should not be funded out of general funds but they may need some help to get it going. He stated this is a golden opportunity for the County. He stated they will not see this kind of opportunity again for some time. He stated eastern Wilkes County really needs this. He stated they are looking at development in eastern Wilkes County and this is one way of getting that to them. He stated this is just a piece of the project. He stated they have a vision to make a complete loop come back to Highway 268 and go across the Yadkin River and go to the Clingman area where they would like to see some development occur. He stated this is part of the project. Mr. Varillo stated a really nice part about this particular engineering is they do have an interconnect with the Town of Elkin which will also serve as an emergency backup and if they ever have water problems, they would be able to get water from Elkin. He stated this is a very nice regional project that is a good match for their regional resources.

Mr. Thomas stated the Town of Elkin will not only be a good backup but it will become necessary eventually if the Town of Ronda system expands to serve other areas such as Highway 421. He stated at some point their wells would not have enough capacity to serve all these different areas. 

Commissioner Charlie Sink asked if the Town of Ronda already has an agreement with the Town of Elkin in case they need the water. Mr. Varillo stated they have a letter of understanding. He stated it would probably be based on the same contract the Town of Elkin has with Surry County. He stated they will provide water to Surry County for the Fiberwatt plant and their agreement would be the same sort of structure. Commissioner Sink stated it will probably be down the road before the Town of Ronda’s capacity would expand beyond what they can do but he wanted to make sure they cover their water needs because the County has seen that need for a number of years with the problems that Pleasant Hill and others have with a situation that needs to be addressed. He asked what size line they are putting in. Mr. Thomas stated they are using an eight inch and a six inch combination. Commissioner Sink stated he knows that will carry quite a bit of water but they are talking about trying to get commercial development out to Clingman and eventually to Highway 421 and obviously that is the way the County would want to go. He asked if those lines will serve that kind of capacity. Mr. Thomas stated that depends. He stated the wet industries seem to be gone now. He stated fire protection for a big box type business would be a matter of putting a tank in the vicinity of the commercial development to provide storage for fire protection. Commissioner Sink stated over a period of years land along Highway 421 has been considered for possible industrial development and that has not gone very well but maybe that will change in the future. He stated those do not have huge water needs. He stated there are not many of those industries around and it would probably be more of a distribution type facility that would have normal bathroom needs. Commissioner Sink stated the County would like them to keep that in mind as they move ahead because the County needs a presence on Highway 421 and are hoping the Town of Ronda would be able to supply that with the infrastructure out there. He stated this is a good project.

Commissioner Gary Blevins stated in the Town of Wilkesboro when a new account is added to the water system, there is a tap fee of currently $600 for a residential hookup. He stated it would help the County greatly in terms of the payment for individuals that will be utilizing this water to help to pay for it by having some sort of tap fee involved. Mr. Varillo stated he agrees and they have been talking about a tap fee of some kind and trying to work out a structure. He stated they have not nailed down a specific dollar amount they want do. He stated they have been talking about if a customer were to hook up within a certain period of time their tap fee would be x number of dollars and if they go beyond that amount of time it would be more expensive. He stated the longer they wait, the more it will cost so basically jump on the wagon now. Mr. Varillo stated they have been looking at that and trying to strike the right balance between what they need and what folks in that community can afford. Commissioner Blevins stated affordability is very important but if half the money is coming from a grant and the other 50% comes from a loan that is twenty years with zero interest, would it be possible to allow those people to pay that tap fee over an extended period of time. He stated it certainly would not cost the Town anything and they would not have to pay any interest. He stated they could possibly take two years and that would be a tremendous financial benefit to them in the long run. He stated the County right now is on a pretty tight budget and anything that could be done to bring the County’s portion down, it is still reasonable and affordable to the people going to utilize this service, would be beneficial and welcomed by the Board. Mr. Varillo agreed with that. He stated it is a really hard time being an elected official and he appreciates the job the Board of Commissioners is doing. He stated their headaches are much bigger than his. He stated this is an opportunity that is not going to come their way again for a while.

Commissioner Sink stated when the County was dealing with the sewer project, there were no tap fees charged. He stated that was part of the grant. Mr. Varillo stated that is correct. 

Commissioner Blevins asked if that is stipulated in this grant. Mr. Varillo stated it is not. Commissioner Blevins stated he would seriously look at that as he thinks it sets a poor precedent to not have some sort of fee to get on this system. 

Commissioner Sink stated they do not want to discourage people from hooking onto the system. He stated this is not talking about a lot of money and $1,500 a month is not a lot of expenditure on the County’s part to see this type of thing. He stated the Town of Ronda could very quickly make that up. Mr. Varillo stated his goal is to have all the customers in place, the 135 they need, to make this self-sustaining before they actually have to make the first payment back.

Chairman Zach Henderson stated it could be possible the Town of Ronda would not need the County’s help. Mr. Varillo stated that is what he is hoping for but he promised his Board he would not proceed until he was sure the Town was covered. He stated the Town of Ronda with 600+ people cannot afford this.

Commissioner Sink stated the lump sum of $369,000 is not palatable right now. Mr. Varillo stated he put that amount in at the request of the County Manager. Commissioner Sink stated with this being an enterprise fund, he could see the County not having a whole lot in it but he definitely thinks the County should step up and be a part of this. 

Commissioner Blevins asked where in the County’s budget this money is going to come from. Chairman Henderson stated this will be in next year’s budget. County Manager John Yates stated it will come from the General Fund. He stated he has not started putting together next year’s budget but he and Finance Director Jerry Shepherd have had conversations on where they need to start on the budget for next year because it is going to be extremely tight. Mr. Yates stated he has had meetings on that this week. He stated any amount of money is going to be tough but this is a great project and he will find it. 

Commissioner Luther Parks stated there are several customers out there that have had trouble with their wells in the past few years because of the drought. He asked if there are several that are right at the point of trying to make a decision and having a lot of problems with their wells and may tap on but have not committed yet. Mr. Varillo stated the folks that have water quality issues are definitely thinking about getting on the system if it is available to them. He stated he does not know about folks that had problems because of the drought. He stated that has been largely alleviated in the last few months to a year. He stated he does have a petition at Town Hall with thirty-six signatures off of Highway 268 which is going to be the next loop back he wants to hit, that have specifically asked for water service from the Town because their water is not drinkable. He stated they have bad well water and they drink bottled water all the time and do not even like to bathe in it so he knows there is a demand from people that have water quality issues. 

Commissioner Sink asked what type of agreement needs to be done through the County Attorney. He asked if there is any special contract. County Attorney Tony Triplett stated he always recommends that. He stated it is better to put something like this in writing and he is assuming if this assistance does materialize they are looking at payments directly from the County to the Town of Ronda. Mr. Thomas stated it can be that way or directly to the Department of Environment & Natural Resources. Commissioner Sink stated if the County is supporting this and the Town is looking at becoming self-sustaining it would be easier for the County to pay the Town of Ronda because they are always going to be paying that payment. Mr. Triplett stated it would be his preference for the flow of funds to come from the County to the Town of Ronda and then Ronda make the monthly payment as required for their debt service. He stated he can do an Interlocal Agreement between the Town of Ronda and the County of Wilkes that would cover the County’s obligation to the Town. He stated this would not be a big deal but will need to be in writing. He stated that can be done at any time. He stated the County can build in stipulations this only materializes if the Town does not have the requisite number of customers signed up by that time. He stated the Board can wait and move forward later if needed or this can be done now with the stipulations built in that will make it a moot point if they get the required number of customers. 

Commissioner Blevins asked the timeframe for getting this project approved and having it guaranteed the County will make this supplemental payment. Mr. Varillo stated the bids are out now and are due on November 12^th. Mr. Thomas stated the Town needs to know by their next Council meeting they can award a contract and will be financially able to do so. 

Mr. Triplett stated if the Board wants to go ahead and move forward now and wants to come up with an Interlocal Agreement, do they want to address the question of tap on fees. He stated if so, the Board will have to figure that out and decide how they want to do that. He stated it looks like a lot of points have to be negotiated if the Board is going to go ahead with this now. Commissioner Sink stated tap on fees are part of the Towns everyday operations. He stated that is what the Town of Wilkesboro does and it is within their enterprise fund. He stated he does not know if that is up to the Board of Commissioners to make that kind of decision. Mr. Triplett asked if the County is going to want credit for any tap on fees the Town charges against the County’s obligation to the Town of Ronda or is the County going to pay $1,500+ regardless of whether there is a tap on fee. 

Commissioner Blevins stated he thinks the County should do everything they can to reduce the Town’s burden in this project and to support it to whatever extent needed beyond what they are able to support. He stated he feels strongly the Town needs to have some source of tap fee structure in place going forward in order to make this project not a drain on their General Fund. He stated that is affordable and fair to the people that will be served by the water project itself.

Mr. Thomas stated the payments are actually due annually or semi-annually so the County can do an assessment sometime before the payment is due. He stated this is not something that will have to be calculated every month. Commissioner Parks asked if every customer that is added on will bring the payment down. Mr. Varillo stated that is correct. He stated they will have more funds to cover the debt service.

Commissioner Sink stated he thinks the County needs to establish the Interlocal Agreement. He stated he thinks it will just complicate this if the Board needs to try to distinguish tap fees. He stated that is a decision the Town should make because they will be operating the enterprise fee, not the County. He stated the various towns operate their own water systems so this would just complicate things. Commissioner Sink stated if the County was talking about $15,000 per month he could understand that but $1,500 per month is not a lot of money. Mr. Varillo stated they have not had a chance to analyze what would be an appropriate tap on fee. He stated they need to factor in such things as what it is going to cost for one of their guys to go in and put a meter in. He stated they have an idea but they are not so sure about once they get out that far in the County are they going to stick with the same meter boxes or will they have auto reads. He stated he would love to have the auto reads where they just drive by and that would save them a lot of money down the road, but they have not had any experience with those so they are still in the process of analyzing what an appropriate tap on fee would be, how would they structure that, and would it be payable up front or over time.

Chairman Zach Henderson stated this is good discussion and all the points are very valid on all sides. He stated he thinks there is interest in doing this and it is just a question of how. He stated he is hearing the Town of Ronda needs to know something or they cannot proceed after getting a bid and they need to have a commitment from the Board for the County’s support if they need it. 

Commissioner Gary Blevins made a motion to go ahead with an Interlocal Agreement with the Town of Ronda to provide the portion of the payment necessary that is negotiated going forward up to the amount necessary to be able to make their payment with the County Attorney and the Town to bring the details back to the Board of Commissioners at a later time. The motion was seconded by Commissioner Charlie Sink and unanimously approved.

VISITORS CENTER CONTRACT - County Attorney Tony Triplett stated the County has been talking with the Chamber of Commerce for months about a contract for operation of the Visitors Center. He stated the Visitors Center is now open but the previously drafted and negotiated contract for operation of the Visitors Center was done at a time when the source of funding was different and both the source and the amount of funding have now changed so that requires some changes in the draft of the contract he has been discussing with the Chamber. Mr. Triplett gave the Board a copy of Draft No. 5 of the contract which has gone through a lot of drafts since the Board started talking about it. He stated the changes are highlighted that relate just to the amount and the source of the funding. He stated he has had a chance to talk to Chamber Director Linda Cheek this afternoon and their Board did have several suggestions about some additional fairly minor changes that are well taken so there may be a couple of other changes that need to be made on top of what is in Draft No. 5. He stated the Department of Transportation will also have to review this and give their approval. He stated this draft is just for the Board to look at and review to see if they have any questions. He stated hopefully he will have an agreement at the next meeting or the meeting after that ready where all parties have reviewed it and it is ready for approval. He stated the Commissioners can call him or County Manager John Yates if they have any questions.

2010 CENSUS PARTNER PROCLAMATION - County Manager John Yates stated the Census people are asking the Board of Commissioners to pass a 2010 Census Partner Proclamation. He read the Proclamation. 

Commissioner Charlie Sink made a motion to approve the 2010 Census Partner Proclamation. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.

2010 CENSUS PARTNER PROCLAMATION
WILKES COUNTY

WHEREAS,an accurate census count is vital to our community and residents’ well-being by helping planners determine where to locate schools, day care centers, roads and public transportation, hospitals and other facilities, and achieving an accurate and complete count of the nation’s growing and changing population;

WHEREAS, more than $400 billion per year in federal and state funding is allocated to states and communities based, in part, on census data;

WHEREAS, census data help determine how many seats each state will have in the U.S. House of Representatives and often is used for the redistricting of state legislatures, county and city councils and voting districts;

WHEREAS, the 2010 Census creates jobs that stimulate economic growth and increase employment;

WHEREAS, the information collected by the census is confidential and protected by law;

Now, therefore, we PROCLAIM that Wilkes County is committed to partnering with the U.S. Census Bureau to help ensure a full and accurate count in 2010.

As a 2010 Census partner, we will:

1.      Support the goals and ideals for the 2010 Census and disseminate 2010 Census information to encourage those in our community to participate.

2.      Encourage people in our community to place an emphasis on the 2010 Census and participate in events and initiatives that will raise overall awareness and ensure a full and accurate census.

3.      Support census takers as they help our community complete an accurate count.

4.      Create or seek opportunities to collaborate with other like-minded groups in our community by participating in Complete Count Committees and/or utilizing high-profile, trusted voices to advocate on behalf of the 2010 Census.

Signed this 6th day of October, in the year 2009.

                                                               /s/ Zach Henderson, Chairman

                                                              Wilkes County Board of Commissioners

CLOSED SESSION - Commissioner Luther Parks made a motion to go into Closed Session to discuss matters relating to the location or expansion of business in Wilkes County; to establish or instruct the staff concerning negotiation of the price and terms of a contract concerning the acquisition of real property; to consult with the County Attorney to consider and give instructions concerning one or more potential judicial or administrative actions; to consult with the County Attorney to protect the attorney-client privilege; and to prevent the premature disclosure of an honorary award of scholarship. The motion was seconded by Commissioner Charlie Sink and unanimously approved. 

Motion was made by Commissioner Charlie Sink seconded by Vice Chairman Keith Elmore and by unanimous vote adopted to adjourn back into regular session. No action was taken.

ADJOURN - Motion was made by Commissioner Charlie Sink seconded by Commissioner Luther Parks and by unanimous vote adopted to adjourn the meeting of the Wilkes County Board of Commissioners at 8:30 P. M.

Alene E. Faw, Clerk                                                                  Zach Henderson, Chairman

WILKES COUNTY BOARD OF COMMISSIONERS

Approved: