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MINUTES
WILKES COUNTY BOARD OF COMMISSIONERS
JUNE 16, 2009
PUBLIC COMMENTS - MATT LEDFORD - Mr. Ledford read the following letter as Chairman of the Democratic Party: “I am pleased to report that Monday evening, June 15th, Sheriff Dane Mastin met with a delegation representing the Wilkes County Democratic Executive Committee regarding the proposed jail and law enforcement center. The meeting was productive and informative, and we greatly appreciate the Sheriff’s time and insights. Our committee is diligently working on an official proposal which will outline and discuss our recommendations regarding the law enforcement center and jail. We know this issue is time sensitive and to that end we intend to deliver our proposal to you, the Board, by the end of this week. While the Democratic proposal will be noticeably different and less expensive than the currently proposed jail and law enforcement center, we feel confident these differences will in no way compromise security and safety, a known concern to the community and the Sheriff. We also believe our proposal will allow for a significant improvement in efficiency by housing the administrative offices of the Sheriff’s Department in an existing facility. I would like to thank this Board for the opportunity to weigh-in on such an important matter. Like each of you, it is the desire of the Democratic Party to see Wilkes County grow and her citizens prosper. The efforts and ideas we put forth are rooted in the spirit of community and the common good.”
PUBLIC HEARING - ROAD NAME REQUEST - Chairman Zach Henderson declared the Public Hearing open concerning a road name request at 6:58 P. M. on Tuesday, June 16, 2009, with the following members present: Chairman Zach Henderson, Vice Chairman Keith Elmore, Commissioner Gary Blevins, Commissioner Luther Parks, and Commissioner Charlie Sink.
Also present were Tony Triplett, County Attorney; County Manager John Yates; and Alene Faw, Clerk to the Board.
Chris Huffman, Zoning Enforcement Officer, stated this Public Hearing is for the purpose of receiving public input on naming a private drive located off of Germantown Road. He stated the name of the private drive is Moravian Creek Drive. He stated all adjoining property owners on the road have been mailed out notification of this Public Hearing. He stated the Planning Department has received no opposition to this. Mr. Huffman gave the Board an aerial map of all the property owners that live along the proposed road.
There being no further comments regarding the road name request, Chairman Zach Henderson declared the Public Hearing closed at 6:59 P. M.
The Wilkes County Board of Commissioners met on Tuesday, June 16, 2009 at 7:00 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 and Pledge of Allegiance were led by Commissioner Luther Parks.
MINUTES - Motion was made by Commissioner Charlie Sink, seconded by Vice Chairman Keith Elmore and unanimously adopted to approve the Minutes of the Board Meeting held on June 2, 2009.
BUDGET AMENDMENTS & BUDGET TRANSFERS - Commissioner Luther Parks made a motion to approve Budget Amendments No. 71 (Health – CSC & MOW), No. 72 (Health – MCC & MOW), No. 73 (Health – General), No,. 74 (Health Programs/Salaries and B & C Cancer Control and Child Health), No. 75 (Health – Family Planning), No. 76 (General Fund), No. 77 (Health – Mesh Unit/Schools), No. 78 (General Fund), No. 79 (Fire Districts), No. 80 (Airport), and No. 81 (Landfill); and Budget Transfers No. 36 (Elections), No. 37 (Building Inspections), No. 38 (Sheriff, Jail, Emergency Communications, Fire Protection), and No. 39 (Recreation). The motion was seconded by Commissioner Charlie Sink and unanimously approved.
ROAD NAME REQUEST - Chris Huffman, Zoning Enforcement Officer, stated a Public Hearing was held earlier to receive public input to name a private drive located off of Germantown Road. He stated the proposed name is Moravian Creek Drive. He stated no opposition was voiced at the Public Hearing.
Commissioner Charlie Sink made a motion to approve the road name request as presented. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.
ROAD NAME – REQUEST TO SET PUBLIC HEARING - Zoning Enforcement Officer Chris Huffman stated the Planning Department has received a petition to name a private drive. He stated the drive is located off of Traphill Road in the Rock Creek Township. He stated the name chosen by petition is Springfield Drive. Mr. Huffman stated this request meets the requirements of the Wilkes County Road Naming Ordinance. He stated under the Ordinance a ten day notification period and a Public Hearing must be held.
Commissioner Charlie Sink made a motion to set a Public Hearing on the road name request on Tuesday, July 7, 2009 at 5:00 P. M. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.
SMOKY MOUNTAIN CENTER UPDATE - Don Suggs stated with him this evening is Suzie Long who is the point person for all Mental Health SADD issues that might come up for any kind of Wilkes County concerns. He stated she represents the Local Management Entity for Smoky Mountain Center and her office is located in Boone. He stated Shelley Lackey is also here. He stated her office is located in Sylva, NC and she is the Community Liaison person working with Consumer Family Advisory Committees and has a direct relationship with the Smoky Mountain Center Board of Directors in terms of minutes and educational things. He stated Mr. Ed Tarleton, Chairman of the Smoky Mountain Center Board, is also here. He stated Mr. Tarleton has quite a task and challenges in having a thirty member Board. Mr. Suggs stated he has been hired on an interim basis for Smoky Mountain Center to fill in for the Area Director while they are searching for a permanent replacement. He stated originally he was to work through the end of this month but it appears he will be there through the Fall because the search is continuing right now. He thanked the Board for the appointment of Commissioner Charlie Sink to their Board. He stated he has been very faithful in attending and it is not a short drive to Asheville to attend meetings and he appreciates Commissioner Sink’s input and support. Mr. Suggs stated there are a couple of new things in Wilkes County which are services that have an added value from the way they were in the past. He stated one of those is the Mobile Crisis Team which is now located in the Wilkes office which is a team of individuals that are able to go out and respond to mental health and substance abuse type emergencies in the community. He stated these persons can go to where the emergency is occurring and this is not an in office service but is an out of the office service primarily. Mr. Suggs stated this also guarantees access to a qualified substance abuse professional which is something that is relatively new as a requirement but it also requires that anyone on the team have at least telephone contact with the psychiatrist over any kind of emergency they might be having about a particular issue. He stated the other added addition for Wilkes County is funding for a walk in clinic. He stated basically a walk in clinic is so consumers can walk in to the office without an appointment and be assured they will be seen and get whatever kind of service they might need on any particular day. He stated the Mobile Crisis Team is available 365 days per year 24 hours per day. Mr. Suggs stated the Cannon Hospital in Avery County is back open and operating. He stated they have been open since last October and have ten psychiatric beds. He stated hopefully Wilkes County residents are able to use that because Wilkes County is the largest county in this particular region. He stated Wilkes has quite a demand from consumers who from time to time need hospitalization. Mr. Suggs stated they have been in at least two meetings with discussions with Wilkes Regional Medical Center about the possibility of them opening their in-patient unit which they had in past years. He stated understandably that is not going to occur unless the Legislature can come up with some funding that would assure the local hospital they will not get into a situation where they would be losing money because most small hospitals like Wilkes Regional are strapped as it is in order to make ends meet. He stated there are some discussions going on with Wilkes about possible development of those beds. Mr. Suggs stated the best stand to take at this point on the State budget is to say they do not know what the final version will be. He stated they are certainly hoping that it will not affect services to persons with disabilities too much. He stated they do expect there will be some type of cuts.
Vice Chairman Keith Elmore stated it seems there is an epidemic of people overdosing and dying from legal drugs. He asked if Mental Health dispenses drugs. Mr. Suggs stated their psychiatrists prescribe medications from time to time. He stated they have a significant number of people that are prescribed medications but that is New River Service Authority’s psychiatrist that is doing that prescribing and not the Smoky Mountain Center that is doing that. He stated New River does employ psychiatrists that from time to time write medication. Mr. Suggs stated he thinks they do have a pretty stiff policy against writing prescriptions for pain killers, valium, minor kinds of tranquilizers, etc. He stated he doubts much of that kind of thing goes on. He stated he knows Vice Chairman Elmore is getting at abuse of prescription medications that people are getting from doctors. He stated he thinks he has heard in the recent past that Wilkes County has been identified as one of those areas where that seems to be somewhat of a problem. He stated they have discussed instituting some kind of an educational program for the communities about prescription drug abuse. He stated he does not think it is a problem only here but is a problem in many places. He stated he certainly does not want to blame the doctors for irresponsibility because he thinks sometimes these drugs are stolen and are available on the street for sale somehow. He stated they are certainly aware of that being a huge problem.
Commissioner Luther Parks asked how many people make up the Mobile Crisis Unit. Mr. Suggs stated there are five team members. He stated one is a qualified Mental Health professional, one is a psychiatrist, one is a substance abuse professional, and there are two other members. Commissioner Parks stated during the day they probably have a good response time. He asked what happens after hours. Mr. Suggs stated the service provider like New River is under an obligation to respond within a certain amount of time according to State guidelines. He stated if it is a true emergency situation they are supposed to make face to face contact with the consumer within two hours. He stated if it is something that can wait until the next day it has to be within twenty-four hours. He stated if it is routine, it is within seven to fourteen days. Mr. Suggs stated on the initial call people get triaged much the same as if you go to the emergency room at the hospital. He stated they would do that if a person walked into the clinic here in Wilkes.
Vice Chairman Elmore asked if a person knew of abuse of drugs with selling the drugs, how that would be reported to New River Mental Health. Mr. Suggs stated they could report that to the New River Service Authority but it is not likely they could do anything about it unless the particular person using the drug called and asked for help. He stated if someone knew someone was doing something illegal, the call would go the Sheriff’s Department or the local police. Vice Chairman Elmore stated a gentleman in the community has contacted him and was telling him of a person selling drugs he had gotten from New River. He asked if that should be reported to New River or Smoky Mountain and if there is anything that can be done. Mr. Suggs stated if that person has direct knowledge of that certainly a call to New River would be appropriate telling them what they think is going on. He stated whether or not they would report it to the law enforcement or not would be up to that individual on whether they wanted to get involved in a person’s issue or not.
Commissioner Gary Blevins asked where the walk in clinic is located in Wilkes County. Mr. Suggs stated it is at West Park. Commissioner Blevins asked if the Mobile Unit is multi-county or if it is specific to Wilkes County. Mr. Suggs stated it is multi-county. He stated there are two teams and they are housed in Wilkes.
Chairman Zach Henderson thanked Mr. Suggs for the report and for those who drove a long way to attend the meeting.
INDUSTRIAL EXTENSION SERVICE - Bob Hege stated the Industrial Extension Service is about fifty years old. He stated the Agricultural Extension Service is about one hundred years old in North Carolina. He stated the Industrial Extension Service is the same thing but is just working with industrial customers as opposed to farm and rural folks. He stated their sole mission in life is to make manufacturing more competitive in the world economy. He stated Terri Ratliff is the Director of the Industrial Extension Service and is a registered professional engineer and has just served a term as President of the International Registered Professional Engineers Society so the Industrial Extension Service is recognized on an international basis based on what she has been able to accomplish. Mr. Hege stated his first experience was with Ms. Ratliff as a long time friend. He stated she convinced him to go to one of her meetings at Freightliner in Denver, NC. He stated Freightliner had just finished three years of working with the Industrial Extension Service implementing lean manufacturing, some quality assurance programs, and doing anything they could do to make themselves more competitive in a world economy. He stated they had raised their output from $75 per man hour to $325 per man hour in a two year period of time. He stated they were so finite in what they did that moving things on the floor in that plant on cement was too slow so they put down plate steel so things could move faster in that building. Steve Forrest stated that paid for its self. He stated the first meeting he went to, Mr. Hege’s success was touted. He stated before the Industrial Extension Service went in there, in one hour they produced $22 worth of product and after they left it was $107 worth of product. He stated this is the most amazing thing he can tell about. He stated if the Board wants to impact the lives of the people in this County, to help promote the Industrial Extension Service. He stated the County already does because they are housed with Cooperative Extension so the County is already supporting them. Mr. Forrest stated he went to the High Country Council of Governments and they funded the work for him. He stated the Industrial Extension Service came in and totally changed his business completely and they can do it for every business here but it is going to take promotion. Mr. Forrest stated he brought information for all the Commissioners to look at. He stated if the Board wants to impact people’s lives here, this will do it. He stated it is already set up and running and all it is going to take is promotion. He thanked the Board for what they have done for him and to put this opportunity in front of them to help promote it. He stated the Industrial Extension Service comes in with experts to line up what a business needs. He stated they are totally devoted to a business and it makes a huge difference. He thanked the Board for their support of the Industrial Extension Service. Mr. Forrest stated he has talked to Linda Cheek with the Chamber of Commerce and she is planning on having another meeting like the one where he learned about what was happening at Meadows Mill. He asked the Board to stand behind this and get Economic Development or any other groups involved so these guys will help them. He stated all of this is laid out in the information he gave the Board. Mr. Forrest stated this past year they have come up with lean manufacturing in hospitals which he thinks will be a great thing all the way across North Carolina. He stated they are impacting lives all across the State and with the Boards help they can impact lives here in Wilkes County. Mr. Hege stated early in their work the Industrial Extension Service began to work with furniture plants because there were so many in North Carolina. He stated they have completed their work with three plants. He stated these three plants are more than competitive with any other furniture plants anywhere in the world. He stated the largest and best known is the former Lexington Home Brands now owned by Jimmy Chepley and Bob Timberlake. He stated they are building very high quality furniture and are competing pricewise with anybody anywhere in the world. He stated a plant in Mt. Airy is very successful. He stated the new owners of Broyhill are using the Industrial Extension Service to reset and reequip their plants. He stated what they have manufactured so far is doing very well in the marketplace. He stated they are able to price equal to or better for much better quality than what the Chinese are exporting to this country. Mr. Hege stated the Industrial Extension Service can make any business competitive anywhere in the world. Mr. Forrest stated with the Board’s help they can get the word out to businesses. He stated it will not be an easy sell. He stated he is on the Board of First Citizens Bank and he was talking to another Board member about how great this is. He stated the person told him they already do things well. He stated he falls into the “let them that don’t want none have memories of not getting any” so talk to someone else. He stated this will help every business and every person in the County and if the Board will help promote it that can be changed.
Commissioner Gary Blevins stated in the High Country Council of Government budget this year there are several more manufacturing entities in Wilkes County that are in the pipeline to get grants from Workforce Development. Mr. Hege stated he received a grant for one of his programs from Golden Leaf Foundation. He stated there are a lot of funds to help out. Commissioner Blevins stated High County has several more businesses in their budget this year for lean manufacturing. He stated he will mention the Industrial Extension Service to them and see if that can be incorporated in what they are doing with grant money.
Vice Chairman Keith Elmore asked if there is any cost. Mr. Hege stated there is no cost involved for a lot of things but if it gets into more involved things there may be costs but there are funds available from High Country, Golden Leaf, NC State, etc. He stated there are a lot of sources of funding. Mr. Hege stated he spent a little bit of money but no where near what these folks provided. Mr. Forrest stated he got a grant because he did not feel like he had the money to pay it but he could have paid it over and over again for the benefits they get from them. He stated it is truly amazing what they can do for every business here and every employee in the County. Mr. Forrest stated the steel put down at Freightliner was paid for. He stated these guys see things differently than he does and it works.
Chairman Zach Henderson thanked Mr. Hege and Mr. Forrest for coming to the meeting. He stated he appreciates what they do for this community.
SOLID WASTE MANAGEMENT PLAN RESOLUTION - Kent Brandon, Solid Waste Director, introduced Kelly Coffey from the High Country Council of Governments. He stated Mr. Coffey has been instrumental in updating the Ten Year Comprehensive Solid Waste Management Plan which the County is required to do at least every three years.
Mr. Coffey stated every local government in North Carolina is required by law to develop a Ten Year Solid Waste Management Plan and an update is due every three years so 2009 is an update year. He stated the plan describes any anticipated changes in the way solid waste is managed. He stated this can be anything from opening a new convenience center to opening up another landfill if the landfill will be filling up within the next ten years. Mr. Coffey stated in looking at the plan there is really not much anticipated change in Wilkes County over the next ten years so much of the plan is just a description of what the County is already doing. He stated if something does come up in the next few years and the Board sees something needs to be changed, that is what the three year updates are for. He stated this is a plan only and by adopting this the County is not committing themselves to any particular action in that plan unless it is required by law and that would have to be done whether the plan is adopted or not. Mr. Coffee stated most of the information in the plan is pretty straight forward.
Commissioner Luther Parks made a motion to adopt the Solid Waste Management Plan Resolution. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
WILKES COUNTY
RESOLUTION ACCEPTING AND ENDORSING THE SOLID WASTE MANAGEMENT PLAN OF 2009 FOR WILKES COUNTY
WHEREAS, it is a priority of this community to protect human health and the environment through safe and effective management of municipal solid waste;
WHEREAS, the reduction of the amount and toxicity of the local waste stream is a goal of this community;
WHEREAS, equitable and efficient delivery of solid waste management services is an essential characteristic of the local solid waste management system;
WHEREAS, it is a goal of the community to maintain and improve its physical appearance and to reduce the adverse effects of illegal disposal and littering;
WHEREAS, Wilkes Countyrecognizes its role in the encouragement of recycling markets by purchasing recycled products;
WHEREAS, involvement and education of the citizenry is critical to the establishment of an effective local solid waste program;
WHEREAS, the State of North Carolina has placed planning responsibility on local government for the management of solid waste;
WHEREAS, NC General Statute 130A-309.09A(b) requires each unit of local government, either individually or in cooperation with other units of local government, to update the Ten Year Comprehensive Solid Waste Management Plan at least every three years;
WHEREAS, the Wilkes CountySolid Waste Management Department has undertaken and completed a long-range planning effort to evaluate the appropriate technologies and strategies available to manage solid waste effectively;
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF WILKES COUNTY:
That Wilkes County’s 2009 Ten Year Comprehensive Solid Waste Management Plan is accepted and endorsed and placed on file with Clerk to the Board on this day, June 16 2009.
/s/ Zach Henderson, Chairman
ATTEST:
/s/ Alene E. Faw, County Clerk
SHERIFF’S DEPARTMENT – TRANSFER OF EQUIPMENT - Major Greg Minton requested transfer of the old MESH unit a 1996 F-3 chassis from the Health Department to the Sheriff’s Department. He stated the deal previously mentioned with an interagency transfer between Wilkes County and Hendersonville, Tennessee fell through because of budget shortfalls so the Sheriff’s Department still has the Silver Eagle. He stated they are looking for better uses of their grant money and right now with the expenditure of the proposed revisions that need to be done on the Eagle, they have determined it would be a lot cheaper with the MESH unit. He stated the MESH unit is still serviceable and it will be a more cost effective means to allow them to have a Mobile Incident Command Center. Major Minton stated they have to have that. He stated it will allow for data transfer and remote operations in the County. He stated Wilkes County does not have a very stable broadband access once you get off of Highway 421. He stated they need to go up to receive the signal either by satellite or an extended antenna. He stated those things take very heavy chassis to run them on, specifically the antenna which they have already purchased through a previous grant. He stated they are just looking for a platform to put those items on. He stated the Eagle is not cost effective. He stated they received an estimate and it was going to cost $117,000 just to get the Eagle serviceable and that is too much to ask. He stated with the economic considerations they are trying to scale back what they are going to do and the MESH unit will allow them to do that. Major Minton stated the second request is to sell the Eagle they currently have in inventory that was purchased with grant funds to allow them to expend the monies from that sale to purchase communications and data relay equipment so they will put all of their money toward communications and technology as opposed to cabinetry and office space which the MESH unit currently has.
Commissioner Gary Blevins made a motion to approve the requests. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
CORPS OF ENGINEERS – MEMORANDUM OF UNDERSTANDING - County Manager John Yates stated he had a meeting yesterday with North Wilkesboro Town Manager Hank Perkins and Wilkesboro Town Manager Ken Noland. He stated he would like to put this request off for about a month. He stated they are trying to get some more grant money for Phase 3 of the water intake. He stated right now the Rural Center has given the County $500,000 but the total project is $3 million so they would like to have a little more time to see if there are any more funds available.
JURY COMMISSION APPOINTMENT - County Manager John Yates stated he received a letter from Janet Handy, Clerk of Superior Court, recommending that Herbert Settle be reappointed to the Jury Commission for the term beginning June 1, 2009 and ending June 30, 2011 by the Board of Commissioners.
Commissioner Gary Blevins made a motion to approve the reappointment as requested. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.
ECONOMIC DEVELOPMENT CORPORATION BOARD APPOINTMENT - County Manager John Yates stated he received a letter from Assistant Economic Development Director Robin Hamby stating the County appoints four members to the Economic Development Commission. He stated the appointments are:
Commissioner Charlie Sink 2007-2010
Keith Johnston 2007-2010
Blake Lovette 2006-2009
Tracy Walker 2008-2011
He stated Mr. Lovette’s term has expired and the EDC would like to know if it is the Board’s desire to reappoint him. He stated he has contacted Mr. Lovette and he said if it is the Commissioners desire he would serve again.
Vice Chairman Keith Elmore made a motion to approve the reappointment of Blake Lovette to the EDC Board. The motion was seconded by Commissioner Luther Parks.
Commissioner Gary Blevins stated Tracy Walker is also listed from 2008-2011. He asked if he is still a member of the Economic Development Corporation Board. He stated his understanding is after Mr. Walker retired he was not interested in continuing. He asked if he is still an active member of the EDC. Commissioner Charlie Sink stated Mr. Walker is not active but he is on the EDC Board. Commissioner Blevins stated his understanding from Mr. Walker was he is not on the EDC Board and maybe that ought to be checked into.
Voting on the motion: Ayes - Unanimous
AIRPORT - PROFESSIONAL FLIGHT SOLUTIONS – HANGAR LEASE - County Attorney Tony Triplett stated a ten day notice as required has run in the newspaper on the hangar lease for Professional Flight Solutions. He stated this is officially before the Board for action.
Vice Chairman Keith Elmore asked how the County determines the leasing at the Airport. He asked if that is based on square footage. He stated the County is leasing one hangar for $50,000 and he is concerned on how the property is leased. He asked if it is based on the individual and what they are doing. Mr. Triplett stated that varies. He stated some are individuals and some are companies like David Wingler that has his own LLC. He stated there is not a set formula per square foot. Vice Chairman Elmore asked who determines that. Mr. Triplett stated the Airport Board makes that recommendation to the Board of Commissioners. He stated the Board of Commissioners have the final say on all leases at the Airport. He stated as a general matter of practice the Board of Commissioners have accepted the recommendations of the Airport Board. He stated they go through and examine each lease, deal with the prospective tenant, are familiar with the property, and are familiar with other leases. He stated their obligation is to be in charge of those aspects of the Airport operations. Mr. Triplett stated typically the Board of Commissioners have accepted their recommendations in the past and that is what has happened here. He stated the Airport Board has talked to Mr. Wingler at length and looked at other leases out there. He stated this is a County owned hangar as opposed to a ground space lease. He stated some leases come before the Board for ground space which brings far less rental because the tenant actually owns the hangar. He stated in this case the County owns the hangar so the rental is much higher to reflect the County owns the hangar and are getting rent for both the ground space and the hangar facility. Mr. Triplett stated so far as the actual amount that is the recommendation of the Airport Board. He stated anytime the Board of Commissioners wish to look into that further or talk to the Airport Board that is entirely appropriate. He stated the way this was set up in the beginning when the Airport Board was first established in 2002 was certain powers are vested in them and certain powers are reserved to the Board of Commissioners. He stated a power reserved to the Board of Commissioners is final approval of leases of real estate at the Airport. Mr. Triplett stated the Ordinance also states the Board of Commissioners are to consider but are not bound by the recommendation of the Airport Board. He stated typically the process is the Airport Board makes a recommendation and the Board of Commissioners accepts it.
Commissioner Charlie Sink made a motion to adopt the Resolution approving the Lease and Operations Agreement with Professional Flight Solutions. The motion was seconded by Vice Chairman Keith Elmore and unanimously approved.
RESOLUTION AUTHORIZING
LEASE AND OPERATIONS AGREEMENT
AT WILKES COUNTY AIRPORT
WHEREAS, the County of Wilkes (hereinafter the “County”) is the owner and operator of the Wilkes County Airport in Rock Creek Township, Wilkes County, North Carolina, and is the owner of a hangar situated thereon, at 254 Corporate Aviation Drive which is approximately 4,259 square feet in size; and
WHEREAS, the County has received an offer from Professional Flight Solutions, LLC, of Wilkes County, North Carolina (hereinafter “PFS”), to lease the above described hangar, together with ground space on which the same is situated and other property as described herein below, upon those terms and conditions as are further described herein below; and
WHEREAS, the above described lease, together with all of the terms and provisions for the same, have been reduced to writing in the form of a Lease and Operations Agreement (hereinafter the “Agreement”) which the County and PFS desires to execute; and
WHEREAS, the Wilkes County Airport Board at its regular meeting of May 21, 2009, approved the lease of the above described property to PFS under the terms set forth herein and recommended that the same be approved by the Wilkes County Board of Commissioners (hereinafter the “Board of Commissioners”); and
WHEREAS, the Board of Commissioners, upon review of the Agreement and upon the recommendation of the Wilkes County Airport Board, desires to accept said offer by PFS and to execute the Agreement; and
WHEREAS, a Notice of Intent describing the terms of the Agreement has been duly published at least ten (10) days prior to said meeting, as required by G.S. §160A-272; and
AND WHEREAS, the description of the property to be leased as set forth in the Notice of Intent was as follows:
DESCRIPTION OF PROPERTY TO BE LEASED: The Agreement is for the lease of approximately 21,648 square feet of ground space, together with a hangar situated thereon which is owned by the County and which is approximately 4,259 square feet in size, said hangar being located at 254 Corporate Aviation Drive. The County has secured a survey of said property in order to more fully and accurately describe the same, and the description from this survey will be attached as an exhibit to the Agreement.
AND WHEREAS, the amount and terms of the offer by PFS to lease said property were set forth in the Notice of Intent as follows:
AMOUNT AND TERMS OF OFFER: PFS proposes to lease the above described property from the County, and the County proposes to lease the same to PFS, for an initial term of two (2) years, with a maximum of four (4) automatic renewal terms of two (2) years each unless either party provides notice to the other at least thirty (30) days prior to the end of the term that the Agreement will not be renewed. Rental to be paid by PFS to the County would be the sum of $850.00 per month. PFS would be responsible for payment of all utilities, contents insurance, and liability insurance. The County would be responsible for insurance on the hangar. PFS would be responsible for all repairs and maintenance, except that the County would agree to perform an annual inspection on the overhead doors and to perform any maintenance thereon necessitated by the results of said inspection. The Agreement provides that its primary purpose is for the storage of aircraft, but it also authorizes PFS to engage in the business of flight training, professional pilot services, aerial photography, treatment/certification of leather for use in aircraft interiors, and for other purposes consistent with aeronautical use as set forth in the Agreement. Said lease shall in all respects be subject to the Rules and Regulations for the Wilkes County Airport.
NOW, THEREFORE, BE IT RESOLVED, pursuant to G.S. §§153A-176, 160A-272, and 63-53(3), that the Agreement with PFS as presented at the June 2, 2009 meeting of the Board of Commissioners, and as set forth in the Notice of Intent, is hereby approved, and the Chairman and Clerk of the Board of Commissioners are authorized to execute the same on behalf of the County.
This the 16th day of June, 2009.
WILKES COUNTY
/s/ Zach Henderson, Chairman
Wilkes County Board of Commissioners
ATTEST:
/s/ Alene Faw, Clerk
AIRPORT - BILLY MCELWEE – HANGAR LEASE AMENDMENT - County Attorney Tony Triplett stated at the last meeting the Board of Commissioners authorized publication of a notice of an Amendment to Billy McElwee’s lease at the Airport. He stated Mr. McElwee made a motion at the Airport Board meeting to amend his own lease to reflect the same thing David Wingler’s lease reflects with regard to how the property is to be used. He stated this is a County owned hangar very similar to the one Mr. Wingler will be leasing. He stated it is a little larger hangar so the rental will be a little more for Mr. McElwee. Mr. Triplett stated the amendment before the Board is not to change the rental, term, or anything else. He stated the amendment will change the purpose of the lease to match that of Mr. Wingler. He stated Mr. McElwee felt it was appropriate that he be bound by these provisions which are a little stricter than the ones he is bound by right now. He stated Mr. McElwee felt it was proper to be under the same restrictions as Mr. Wingler.
Chairman Zach Henderson stated the Board talked about this at the last meeting that it might not even be necessary. He stated the Board is entertaining this at the request of Mr. McElwee. Mr. Triplett stated that is correct.
Commissioner Gary Blevins made a motion to adopt the Resolution approving the Amendment to Billy Elwee’s Lease Agreement. The motion was seconded Commissioner Luther Parks and unanimously approved.
RESOLUTION AUTHORIZING
AMENDMENT TO LEASE AGREEMENT
WITH WILLIAM H. MCELWEE, III AND KAREN I. MCELWEE
AT WILKES COUNTY AIRPORT
WHEREAS, the County of Wilkes (hereinafter the “County”) and William H. McElwee, III and Karen I. McElwee, jointly and severally (hereinafter “McElwee”), entered into a Lease Agreement (hereinafter the “Agreement”) under date of July 1, 2008, and recorded at Book 1093, Page 135, Wilkes County Registry, for certain ground space at the Wilkes County Airport as more fully set forth therein; and
WHEREAS, the County and McElwee have agreed to amend certain provisions of the Agreement and to enter into an Amendment to Lease Agreement (hereinafter the “Amendment”) in order to evidence the same; and
WHEREAS, the Amendment would modify the Agreement by replacing the current Section I, titled “Purpose; Quiet Enjoyment,” with a new Section I which revises the language governing the purpose and uses to which the leased premises may be put; and
WHEREAS, the Wilkes County Airport Board at its regular meeting of May 21, 2009, approved the Amendment and recommended that the same be approved and executed by the Wilkes County Board of Commissioners (hereinafter the “Board of Commissioners”); and
WHEREAS, the Board of Commissioners, upon review of the Amendment and upon the recommendation of the Wilkes County Airport Board, desires to approve the same and to authorize the execution thereof; and
WHEREAS, a Notice of Intent describing the terms of the Amendment has been duly published at least ten (10) days prior to said meeting, as required by G.S. §160A-272; and
NOW, THEREFORE, BE IT RESOLVED, pursuant to G.S. §§153A-176, 160A-272, and 63-53(3), that the Amendment with McElwee as presented at the June 2, 2009 meeting of the Board of Commissioners, and as set forth in the Notice of Intent, is hereby approved, and the Chairman and Clerk of the Board of Commissioners are authorized to execute the same on behalf of the County.
This the 16th day of June, 2009.
WILKES COUNTY
/s/ Zach Henderson, Chairman
Wilkes County Board of Commissioners
ATTEST:
/s/ Alene Faw, Clerk
LAW ENFORCEMENT CENTER - Chairman Zach Henderson stated Grant Tharpe with Cope Associates has been asked to provide the Board with some information regarding possible modifications to the planned jail facility.
Mr. Tharpe stated the Board asked him at the last meeting to look at shelling in the second floor of the Law Enforcement Center. He stated he projected a savings of $2 million to $2.5 million and a cost of about $200,000 to redesign the space and rebid. He stated the 34,000 square feet is the entire second floor administrative space. He stated the entire space cannot be shelled in. He stated a portion of the second floor is detention and jail related. He stated the master control center which is the nerve or brain center of the entire operation is on the second floor as well as the visitation and the inmate pass to get to courtrooms. He stated there is an area that cannot be shelled in.
Mr. Tharpe stated he went back and looked at what effect this would have on every drawing they had. He stated it is not as simple as drawing a line and saying do not do anything in that area. He stated the mechanical systems, plumbing systems, and the electrical systems have different components and categories that cross lines. He stated in the drawings there are door schedules, finish schedules, millwork details, and a myriad of a couple of hundred drawings that are affected by not doing anything in that area. He stated they looked at what it would take to get this blank when it goes out to bid and everything is taken out that is affected. Mr. Tharpe stated at the last meeting he said that would cost $200,000 to $250,000 plus rebidding. He stated they have got a figure of $280,000 total which includes changing all drawings, doing all the re-engineering, rebidding the project, and submittal to the State and interaction to them because it has to go back to the State with these types of changes. He stated the $280,000 is a not to exceed. He stated once they get in and start doing the design and redesign, if the cost is $320,000, they will invoice $280,000. He stated if it comes in at $240,000 that is the amount the County will be invoiced for. He stated it is difficult at this time to say how many hours every discipline and every drafter and designer would have to expend to do that.
Chairman Henderson asked based upon what they have found out so far, the amount of square footage that would be shelled. Mr. Tharpe stated that would be approximately 27,000 square feet. Chairman Henderson asked what that will leave for administrative office. He stated there will have to be administrative offices for detention staff. Mr. Tharpe stated the 7,000 square feet includes the visitation area, which is a requirement of the State, the public lobby space, and toilet space. He stated the administration space is the master control and a few offices that interact with the officers that are responsible for getting inmates to and from Court. He stated mostly the administrative spaces are right in the corner and there is a corridor that takes inmates to Court.
Chairman Henderson stated if this is put back out to bid what the time process is. Mr. Tharpe stated starting with tonight he has left a couple of weeks for further discussions on the Board’s part. He stated if by the end of the month the Board decides to go this route, it will take two months to make all of the changes to go to the State. He stated they would get this to the State in September. He stated they feel very comfortable with their review this time because the last time on their review they had comments but this time should be simpler because they are familiar with this other than that area. He stated they are looking at going out to bid in September while it is still at the State for review, receiving bids in October and if they get the State’s comments back and they are satisfied, the earliest construction could begin would be November 2009. He stated that is the best case scenario. Mr. Tharpe stated the last time it took several months to get comments back from the State and they cannot control that.
Commissioner Gary Blevins asked what they estimate the savings to be on the 27,000 square feet. Mr. Tharpe stated that would be about $2 million. Commissioner Blevins asked if that would be less the $280,000 in additional cost so that would be around a $1.7 million in savings. He stated the County would go from $26.1 million to around $24 million. Mr. Tharpe stated he has randomly called three or four of the previous bidders and asked if this came back out would they rebid because it is quite an effort of tens of thousands of dollars for them to prepare a bid. He stated out the four, three did not call back. He stated he does not know if they have not had time to call back or if there is a message in that. He stated one bidder did call back and said they would still be interested. He stated out of curiosity he wanted to see what kind of mix he got on that. Mr. Tharpe stated construction costs are still very competitive. He stated Commissioner Luther Parks stated at the last meeting he hoped the County would still realize the competitive market and the competitive edge. He stated the only thing he has heard opposite from that was at a Town Hall meeting last night on a building they are doing where the architect and the contractor are on the same team. He stated the contractor was telling the town they are starting to see things creep up a bit. He stated with the cost of petroleum prices, gas is going up a bit. He stated they said if you look at Lowe’s and Home Depot you will start seeing a box of nails 25¢ or 50¢ more than they were sometime back. He stated he does not have any hard numbers or evidence of that. He stated he cannot say steel is going ballistic, etc. He stated this was a very large reputable contractor that is starting to see a little bit of cost coming back in. Mr. Tharpe stated there is still a lot of competition. He stated Madison County is about ready to go out to bid on a Law Enforcement Center and they are getting quite a few calls on that so they know there is still interest out there.
Vice Chairman Keith Elmore stated he would like to throw out another option. He asked if the Board sets a budget of $15 million, can they build 200 cells and offices to operate those cells. He asked if that is something the Board wants to do. He asked if Mr. Tharpe can draw that. Mr. Tharpe stated if the Board says they have $3 million and asked what they can do, he will come back and say the County can build 50 beds, etc. He stated what they would have to do is look at the absolute critical priorities – how many beds the County has to have and the administrative space that accompanies that to be able to effectively operate the facility. He stated if the Board gives them $15 million marching orders they would go away and come back and preliminarily say this is what the County can do and see if that is reasonable. Vice Chairman Elmore asked the time frame if the Board did that. Mr. Tharpe stated that is almost a start over and a total redo. He stated Cope has been working since February 2007 so it has been about a two year process to get here and that is normal. He stated a good six months or eight months was a thorough study and interaction with the committee and the Commissioners so that would be backed out but it would still take a year to get back out to bid.
Chairman Henderson asked if the number of $15 million is posed if Mr. Tharpe is saying he will go away and come back and tell the Board what he can do for that. He stated Vice Chairman Elmore put the number 200 beds on that. He asked Mr. Tharpe if he is saying he can build a 200 bed jail for $15 million or is he saying he can build something for $15 million but will not say what until he does the design work. Mr. Tharpe stated the safest way would be to ask him what the County can get for $15 million. He stated he could go back and give it some quality time, thought, and design and let the Board know what they can get. Chairman Henderson stated he is hearing Mr. Tharpe is not prepared to put a number of beds on that until he does the design work. Mr. Tharpe stated that is right. Chairman Henderson stated that could be 200, 100 or 150. Mr. Tharpe stated if the Board wants to say how many beds the County can get for $15 million, he can punch some numbers out and give the Board an approximate. He stated the tricky part is looking at what can and cannot go. He stated he will have to spend hours to get his head around that to come up with an exact figure. He stated at the last meeting the Board discussed shelling in the second floor administration, taking out the $300,000+ grading and reducing 100 beds might save $5 million. Commissioner Blevins asked if that would require a more extensive redraw. Mr. Tharpe stated it would. He stated one of the positives in what he has is the civil costs are almost negligible. He stated there is some money in there for civil just in case there is some overlap or the County wanted to look at parking numbers or things of that nature that would help. He stated eliminating 50 or 70 parking spaces would save some additional money that is not just in the shelling in of this. He stated if the grading is pulled out the civil engineer has to go back because there are two sets of grading drawings, one that is pulled out that someone else does and what it will look like for the next bidder when that grading contractor gets offsite. Commissioner Blevins stated the $5 million savings included not finishing in and removing the number of beds. Mr. Tharpe stated that would require some additional design efforts and time because they will have to go back and look at even the electrical systems and HVAC systems to see how that is affected by loping off that section.
Vice Chairman Elmore stated it seems to him if the County was going to do the original plan they should have done it and since they did not, there is an opportunity to do a new affordable $15 million plan. He stated he is certainly no expert on building but he reads the paper. He stated Ashe County finished a jail for $14 million for 175 beds and Yadkin County is looking at building 75, 100, or 150 beds for $8 million or $9 million. He stated if the Board does the modified plan the County will still have to raise taxes 4¢ to 6¢ in two years. Vice Chairman Elmore stated to him it makes more sense to go ahead and build 200 cells now for what the County can afford to pay for. He stated the Middle Schools will be paid for in nine years and that frees up a $2 million payment and if 100 beds have to be added in seven, eight, nine, or ten years down the road, there will be money to do. He stated certainly it will be more expensive but the County will have money to do that. He stated those are his thoughts on what the Board should do.
Commissioner Blevins stated it is basically coming down to a question of the affordability of this and how this Board is going to come down on that question. He asked if the Board feels this County with the situation we are in can afford to go ahead with a project that is going to run over $35 million by the time it is paid for or is the Board going to go back and retrench and come up with a project that is affordable and is more modest and can be added onto at a later time. Commissioner Blevins stated he does not personally think the County can afford to build the Law Enforcement Center that has been planned and proposed. He stated he thinks the minor modifications the Board is talking about making are a waste of money. He stated he cannot see how the County can justify spending another $300,000 to save $1.7 million and end up with an administration building that is not even completed. Commissioner Blevins stated either the Board needs to decide they can afford this project at about the level it was originally designed or set it aside and do something more modest perhaps at a different site that is more in line with what some of the Board feel the County can afford at this time. He stated it is going to come down to one or the other and he does not think there is a lot of in between.
Mr. Tharpe stated the only thing he would ask the Board to think about is that one of the overriding or guiding principles from the inception of this project was to create a justice center. He stated the site was pre-graded to an extent ten or twelve years ago when the courthouse was built. He stated he usually does not throw out his recommendation unless it is asked for but the Board needs to strongly consider the same site, even if they only do a portion of the project just to be able to avoid transportation of inmates and create the justice center. He stated it may look a little strange to have just a configuration of beds out there. Mr. Tharpe stated the Board does have a plan that does, can, and will work. He stated even if they only do $15 million of it at this time, it is a design that can be grown into and it would eventually be the plan before the Board. He stated transportation costs can be expensive and there is a lot of liability with bolts, breaks, or accidents when inmates are taken into and out of a car or facility.
Commissioner Parks asked at what point is it more valuable to build a single level rather than a two story. He asked what the breaking point is. Mr. Tharpe stated they have looked at buildings as a whole on that but they were more office or administrative type areas. He stated they usually find as long as there is 10,000 or more square feet on a footprint it is better to go single story because it does not make any sense to have two stories of 5,000 square feet because of the vertical circulation versus one story at 10,000 square feet. Mr. Tharpe stated on a jail he has not looked at or calculated those numbers but typically as long as there is more than fifty inmates in housing it makes sense to do the double stacked cells like the plan has. He stated in Jackson County they designed half a pod that has fifty inmates that are double stacked. He stated two or three day rooms feed that and in the future when they have a need the other fifty beds will be added in that same configuration and the same staffing will oversee that. He stated a lot of times to go down to one level, it is more staff intensive because when you add more pods, it equates to more correction staff to evaluate that. He stated that number is pretty low. He stated he could see fifty beds being one level but much over that he would recommend that type of configuration to be able to add in the future and do it staff effectively.
Chairman Henderson thanked Mr. Tharpe for coming this evening.
CROSSFIRE UNITED METHODIST CHURCH - Planning Director Eddie Barnes stated he has a request from Crossfire United Methodist Church for the County to act as the Grant Administrator for a project they are working on. He stated they have purchased the old Lovette Company building on Highway 115. He stated that is a 30,000 square foot facility and they propose to use about one half of the facility as their new Church and fellowship area. He stated they are looking at using the other half for business opportunity. He stated they have formed a non-profit called The Storefront. Mr. Barnes stated the building has a lot of cold storage and they are proposing to use that cold storage in a commercial aspect as freezer lockers to help local farmers and produce growers. He stated they have gotten a $100,000 grant from Golden Leaf and a $65,000 grant from the USDA R-Beg Program. He stated they are looking at a $48,000 grant from the Rural Center. Mr. Barnes stated this is going to be to structure the building and recompartmentalize the freezer lockers so they can be available to commercial operators or to individuals to use the cold storage facility. He stated they are proposing in the future to be able to have a smokehouse there to be able to smoke meats and things of that nature. Mr. Barnes stated Dwight Smith is here representing Crossfire and he could address more of those specifics. He stated the Rural Center requires that a local government entity be the one to apply for a grant and Crossfire is requesting the County apply for and administer the grant and they will be the operating managers of the project. Mr. Barnes stated the County would not have to put up any money for a match. He stated there will be an in-kind match for the County’s administrative services of the grant. He stated Crossfire has a two year period in which to complete the project. He stated a stipulation of the project is they create at least four jobs and that those jobs are maintained for at least a six month period. He stated once that period is met, they will be reimbursed by the Rural Center for the money they have expended. Mr. Barnes stated this is a 50% grant so they will have to expend at least $96,000. He stated invoices will come to the County and the County will send the invoices to the Rural Center who will send a check to the County and the County will send it to Crossfire for reimbursement. Mr. Barnes stated Crossfire is asking for the Board’s consideration and approval to administer the grant on behalf of Crossfire.
Chairman Zach Henderson stated his understanding is that individuals such as the master gardeners program, people who grow their own vegetables or fruit, etc., or who raise beef organically and need cold storage can go there and do that themselves. Mr. Barnes stated Crossfire is working with a consultant and he has looked at a lot of different market aspects for this type service and there seems to be a great need for cold storage facilities. He stated there are several meat producers here in a tri-county area that do not have adequate cold storage facilities to keep and age the beef properly, etc. so some commercial meat packagers are going to be able to use the facility as well as individuals. Chairman Henderson stated this sounds like an interesting thing for the community.
Commissioner Luther Parks made a motion to approve the request. The motion was seconded by Commissioner Charlie Sink.
Vice Chairman Keith Elmore asked if Crossfire has already received $100,000 from Golden Leaf. Mr. Smith stated that is correct. He stated the RB Grant from USDA has been approved and they are waiting to receive those funds. He stated this will just be an additional piece to that. He stated they are renovating the facility to separate the Church side from the warehouse side for fire safety issues.
Commissioner Gary Blevins asked if this is a commercial for profit operation or is it incorporated as part of the non-profit. Mr. Smith stated it is incorporated under Crossfire’s non-profit status and will be a non-profit company. He stated this will create jobs to help the economy here in Wilkes County and help those that are out of work. He stated they hope the four employees will be the start of many. Mr. Smith stated the second aspect is to provide the cold storage area that will help the economy of the farmers in the area whether it is agricultural or meat producers where they can receive a lower cost cold storage than they normally would at a commercial type cold storage and help them with transportation costs. He stated right now they have to go to Winston, Statesville, or Charlotte for storage. He stated they are looking to try to help benefit the community as much as possible. Mr. Smith stated the Church’s standpoint is to have the largest impact on the region they possibly can with the facility that is there.
Vice Chairman Elmore asked if Crossfire will have to have USDA inspections. Mr. Smith stated if they do meat processing, they will have to be under USDA. He stated the smoking operation will not have to be under USDA inspection because the actual producers of that are inspected at their facilities. He stated they bring the product in and it is under refrigeration, put through the smoking process, and they load it back out and Crossfire is not processing it other than just putting in through the smoking process.
Commissioner Blevins asked County Attorney Triplett if the County has administered a grant of this nature for a Church organization. He asked if that is a little unusual. Mr. Triplett stated it is. He stated he has not heard of an arrangement like this before. He stated it is an interesting arrangement and a fascinating type of arrangement. He stated he does not think it presents a legal problem for the County because essentially it furthers a commercial purpose. He stated he would have a lot of concern about this if it were furthering a religious purpose and the Board were becoming involved as administrator of a grant for a Church related activity that furthered a religious purpose. He stated since this is a rather unusual situation of a Church like any other non-profit working toward a commercial purpose he does not think there will be a legal problem with doing it even though it is unusual.
Voting on the motion: Ayes - Unanimous
BLUE RIDGE OPPORTUNITY COMMISSION - County Manager John Yates stated he has a letter from Mary Edna Faw, Director of the BROC Elderly Nutrition Program, stating that in order to make sure all funds available to Wilkes County Aging Services for this year remain in the County, it is necessary to make some transfers between services at this time. He stated Wilkes Senior Citizens Council needs to transfer $1,592 to the BROC Elderly Nutrition Program and the BROC Elderly Nutrition Program needs to transfer $4,300 from home delivered service to congregate services. He stated the total amount added to congregate meals service would be $5,892. He stated since Wilkes County holds the contract with High Country Council of Government, the Board’s approval is necessary to transfer these funds.
Chairman Zach Henderson stated this has to be done in a timely manner so BROC does not lose the money. Mr. Yates stated if the Board does not do this, BROC will lose the money.
Commissioner Charlie Sink made a motion to approve the request. The motion was seconded by Commissioner Gary Blevins and unanimously approved.
AIRPORT ACCESS ROAD - County Manager John Yates stated bids were received on June 16, 2009 for the Airport access roadway, Johnson Ridge Road. He stated the low bidder is Mathis & Sons Grading. He stated they have met the bidding requirements and W. K. Dickson recommends the County consider awarding the contract with Alternate Bid Item 9A in place of Base Bid Item No. 9 for the amount of $243,220.70. He stated the bids were very close
Vice Chairman Keith Elmore made a motion to approve the bid for Mathis & Sons. The motion was seconded by Commissioner Luther Parks and unanimously approved.
AIRPORT – W. K. DICKSON CONTRACT - County Manager John Yates asked the Board to consider approval of Amendment No. 17 with W. K. Dickson. He stated this is for the road project and will be reimbursed by the State. He stated this includes construction contract administration for a lump sum of $14,250, record drawings and project certification $850, and construction surveys an estimate of $4,500.
Chairman Zach Henderson stated this will be reimbursed to the County and is just an addendum to what W. K. Dickson is already doing.
Commissioner Charlie Sink made a motion to approve the contract addendum. The motion was seconded by Commissioner Gary Blevins and unanimously approved.
Mr. Yates stated this will put the project a couple of weeks ahead of schedule.
CLOSED SESSION - Commissioner Luther Parks made a motion to go into Closed Session to discuss the location or expansion of business in Wilkes County; to consult with the County Attorney to consider and give instructions concerning one or more potential judicial or administrative actions; and to consult with the County Attorney to protect the attorney-client privilege. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
Motion was made by Commissioner Charlie Sink seconded by Commissioner Luther Parks and by unanimous vote adopted to adjourn back into regular session.
SUNCREST FARMS - ECONOMIC INCENTIVE AGREEMENT - County Attorney Tony Triplett stated Suncrest Farms is a business that has been located here for a number of years at the old Industrial Park in Wilkesboro. He stated they process and sell country hams. He stated Suncrest Farms is in the middle of an expansion project. He stated they have just begun and have been talking with the County and Economic Development about an incentive for their expansion operation. He gave the Board a copy of an Economic Investment Agreement that is the result of discussions between the County and Suncrest Farms. Mr. Triplett stated under the proposed Economic Investment Agreement Suncrest Farms would agree to make certain additions to their building, would make certain additions to the amount of machinery and equipment they list with the County, and would agree to hire a certain number of additional jobs by the time the County is obligated to make a payment to them. Mr. Triplett stated the County in turn would agree upon fulfillment of those conditions to make economic investment payments to Suncrest Farms for a period of three years in the amounts set forth in the agreement. He stated the amount for the first year would be $2,855.70, the second year would be $2,770.20, and the third year would be $2,667.00.
Commissioner Charlie Sink made a motion to set a Public Hearing on July 7, 2009 at 5:00 P. M. for consideration of an Economic Investment Agreement for Suncrest Farms pursuant to General Statute 158-7.1. The motion was seconded by Commissioner Luther Parks and unanimously approved.
MXR TECHNOLOGIES - ECONOMIC INVESTMENT AGREEMENT - County Attorney Tony Triplett stated before the Board is a proposed Economic Investment Agreement between the County and MXR Technologies. He stated the Board has been in discussions for a considerable amount of time with MXR Technologies. He stated MXR currently occupies what is called the community hangar at the Airport and have been undertaking manufacturing operations for several months or a year. He stated MXR has agreed to construct a permanent facility in the new Airpark on the east side of the runway. He stated the County in return for their agreement has agreed to complete infrastructure, provide water, sewer, a taxiway for runway access, and other infrastructure items in the Airpark that would allow MXR to have their operations and facility on that side of the runway. Mr. Triplett stated the County has also agreed under the proposed Economic Investment Agreement to enter into a ground space lease with MXR for seven acres of property in the Airpark on which they would build their facility. He stated the County has further agreed as part of the Economic Investment Agreement, if approved by the Board, upon completion of the facility by MXR to pay MXR an economic incentive payment of $175,000 upon the issuance of a Certificate of Occupancy for their structure in the Airpark on the east side of the runway. He stated the County has also agreed to make certain economic investment payments for four years to MXR. He stated the amounts are fairly small beginning at $143 per year and building up over the four years to approximately $2,000 per year. Mr. Triplett stated this is not for the Board’s approval or vote tonight but is simply to consider setting a Public Hearing for public comment to be received. He stated two actions will be required if the Board decides to move forward with this. He stated one will be to set the Public Hearing for the Economic Investment Agreement. He stated if the Board decides to move forward with that he will present a proposed ground space lease that will also require some notice before it can be approved by the Board as well.
Commissioner Luther Parks made a motion to set a Public Hearing on July 7, 2009 at 5:00 P. M. for consideration of an Economic Investment Agreement for MXR Technologies pursuant to General Statute 158-7.1. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
Mr. Triplett stated the proposed ground space lease for MXR in the event that Board does approve the Economic Investment Agreement will call for MXR to lease seven acres on the east side of the runway. He stated on that seven acres they would agree to construct their permanent facility. He stated the Lease and Operations Agreement that has been drafted establishes a term for MXR of five ten year terms for a total of fifty years. He stated the lease starts at $609.84 for the first year, approximately $1,200 for the second year, $1,800 for the third year, $2,400 for the fourth year, $3,000 for years five through ten and escalates after that to respectively for ten year terms $4,000 per year, $5,500 per year, $7,400 per year, and $9,900 per year. Mr. Triplett stated this Lease and Operations Agreement has been approved by the Airport Board. He stated they have reviewed it and talked about it at length and it has received their approval. He gave a copy of the agreement to the Board for their review.
Chairman Zach Henderson stated this is a fairly standard lease that other occupants at the Airport enter into. Mr. Triplett stated this is correct. He stated the Board is not being asked to approve this lease tonight but simply to authorize the usual ten day notice to be placed in the newspaper the same as was done for Professional Flight Solutions and for the amendment for Billy McElwee. He stated it would be the same procedure.
Mr. Triplett stated the lease refers to a designee. He stated the Airport Board discussed a request by MXR that the actual lease for the hangar be to a third party, a holding company, which in turn will lease the hangar and the ground space to MXR. He stated a typical business arrangement is for a holding company to actually hold title to property and lease it to an operating company. He stated that will probably happen fairly regularly as the Airpark develops. Mr. Triplett stated MXR is the first to make this request. He stated the Airport Board discussed it and what will probably end up happening is a holding company owned by Corky Meyer, the investor in the business, will actually construct the hangar and lease both it and the ground space to MXR, the operating company. He stated MXR remains bound by all provisions of the Economic Investment Agreement and by the lease. He stated they are ultimately responsible under the lease and this is just a legal arrangement to allow a holding company to actually lease the ground space and sublet it to MXR as an operating company. He stated that is a very standard arrangement in business and happens frequently. Mr. Triplett stated the Airport Board did not have any problem with that. He stated it may be the actual lease that comes to the Board will name a party other than MXR with the lease then to be assigned to MXR. He stated it will be subject to all of the same terms and provisions that are in the lease and MXR will ultimately be responsible for it.
Commissioner Charlie Sink made a motion to publish notice, pursuant to G.S. 153A-176, 160A-272, and 63-53(3), of the intent of the Board of Commissioners to enter into a Lease and Operations Agreement between Wilkes County (as Lessor) and MXR Technologies, Inc. (as Lessee), or such holding company or related entity as MXR may designate, for ground space for the construction of an aircraft manufacturing and production facility, together with parking and taxi-lane access for the same, on a parcel consisting of approximately 7 acres located in the new airpark on the east side of the runway at the Wilkes County Airport, a more precise legal description of which is to be set forth in a survey obtained by the County, under terms and conditions as set forth in the proposed Lease and Operations Agreement presented at tonight’s meeting, with the County Attorney to present a Resolution for final approval of the Lease and Operations Agreement at the next meeting of the Board of Commissioners. The motion was seconded by Commissioner Luther Parks and unanimously approved.
ADJOURN - Motion was made by Commissioner Luther Parks seconded by Commissioner Charlie Sink and by unanimous vote adopted to adjourn the meeting of the Wilkes County Board of Commissioners at 9:40 P. M.
Alene E. Faw, Clerk Zach Henderson, Chairman
WILKES COUNTY BOARD OF COMMISSIONERS
Approved:
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