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MINUTES
WILKES COUNTY BOARD OF COMMISSIONERS
JANUARY 5, 2010
The Wilkes County Board of Commissioners met on Tuesday, January 5, 2010 at 5:00 P. M. with the following members present: Chairman Zach Henderson, Vice Chairman Gary Blevins, Commissioner Keith Elmore, Commissioner Luther Parks, and Commissioner Charlie Sink.
Also present for the meeting were Tony Triplett, County Attorney; John Yates, County Manager; and Alene Faw, Clerk to the Board.
The meeting was called to order by Chairman Zach Henderson who welcomed those in attendance.
INVOCATION AND 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 Commissioner Keith Elmore and unanimously adopted to approve the Minutes of the Board Meeting held on December 15, 2009.
BUDGET AMENDMENTS - County Manager John Yates stated Budget Amendment No. 30 has been added. He stated last Wednesday there was a power surge that fried the back-up battery and the 911 system was down approximately forty minutes. He stated the County has had to purchase a new battery that will take care of the 911 system and the County’s servers at a cost of approximately $49,000. He stated part of that expense was taken from E 911 funds and $21,000 was taken from the Tax Department to pay for this. Mr. Yates stated the hospital has let the County borrow a battery until the new one comes in and it will be put on line tonight and the system will go down for a short time but it will be back up.
Motion was made by Commissioner Luther Parks seconded by Vice Chairman Gary Blevins and unanimously adopted to approve Budget Amendments 26 (General Fund/Airport), No. 27 (Health – Preparedness), No. 28 (B & C Cancer Control Program), No. 29 (Health – General) and No. 30 (General Fund and Emergency Telephone E-911 Fund).
AIRPORT – TRANSPORTATION IMPROVEMENT PLAN - Jimmy Luther with W. K Dickson advised every year the State sends out their Transportation Improvement Plan to all the airports in North Carolina. He stated this is pretty much a planning tool they use for a five year period. He stated they ask each airport to list pretty much their wish list of projects they have to accomplish over the next five years. He advised the State looks at that in a narrower sense of two to three years so far as their money and planning to allocate funds. Mr. Luther stated he has developed the TIP for the next five years in accordance with that. He stated the projects that are listed are pretty much the same projects that have been on the County’s TIPs in previous years. He stated they have either moved down the list based on priority or they have moved due to cost changes throughout the year so far as the cost increases. He stated a five year old project obviously would not be the same price to construct today as it was five years ago so there have been a few changes made on that. Mr. Luther stated this does not obligate the County to anything so far as project funding or dollars. He stated this is the County’s wish list. He stated once a project is chosen by the Division of Aviation to be funded, they would issue a grant. He stated at that time the County would have the opportunity to have a local match and accept the grant for the project if the County considered moving forward. He stated this is in accordance with the Airport layout plan and the Airport Board’s and County’s plan of how the Airport is to develop over the next five years. He stated these projects concentrate on the Airpark and some taxiway and paving improvements.
Chairman Zach Henderson stated the Board has talked about this on a number of occasions and this is the County’s continuing wish list for the future and does not obligate the County to anything but this is just a plan.
Mr. Luther stated this gives the Division of Aviation an opportunity to see from each airport how much capital improvement they plan and that helps them take their money pot and allocate it out to the airports. He stated they will put in a ranking. He stated this year there is a new approach. He stated the counties or airport sponsors do have a face to face meeting with the Division of Aviation and Wilkes County’s is scheduled for January 15th at 2:00 P. M. He stated he, Airport Board Chairman Lee Herring, and possibly County Manager John Yates will attend that meeting to go over this list. He stated the meeting will last about an hour to an hour and a half and they will have an opportunity to tell the Division of Aviation what is happening at the Airport, how it is developing, and what the County sees in the future, etc. Mr. Luther stated this is a little different approach. He stated in the past this was mailed in and no one heard anything until they got a project. He stated now they are trying to get a little more face time with everybody and understand airports better.
Commissioner Charlie Sink made a motion to approve the TIP Plan. The motion was seconded by Commissioner Luther Parks and unanimously approved.
AIRPORT – TAXIWAY CONTRACT - Jimmy Luther with W. K. Dickson stated the Board has before them a letter with a recommendation of award for a project that was bid on October 22, 2009. He stated the low bid for that project is Mathis & Sons Grading of Wilkesboro. He stated there were about five different phases of that particular project. He stated those phases encompassed moving to the eastside of the airfield, developing a partial parallel taxiway with connectors back to the west side of the Airport, as well as airfield lighting and paving associated with those. He stated the grant that came in to allow that work to be constructed was not as much money as the entire bid package so they are recommending the County only consider awarding what they have in Phase 3, Schedules 1 and 2 which is a connector directly across from the existing terminal building to the east side. He stated this would be developing an L shaped piece of pavement and access. He stated that gives access to parts of the airpark that are readily accessible for development right now including MXR and the piece the County has graded to house up to three or four more hangars there. He stated this makes that access available.
Chairman Zach Henderson asked if the grant monies the County has applied for will cover that much. Mr. Luther stated that is correct. He stated there are two grants that are in place now. He stated one is $500,000 and the other is $150,000 and the bid amount is $582,000 so the $650,000 that is available will more than cover the cost of developing that area. Chairman Henderson asked if once this is done it will satisfy the County’s contractual agreements with MXR and take care of things the County says they will do to satisfy the County’s obligations. County Attorney Tony Triplett stated this will do everything the County is obligated to do contractually the County can do right now. He stated the only thing remaining is the County has contractually obligated themselves to take paving and other infrastructure right to their hangar and make the connections to the building and bays but obviously that cannot be done until their building is done so the County will know where it is, where the footprint of it is and how it is going to be designed. Mr. Triplett stated with that one caveat this will and this is by far the biggest remaining expense involved in that. Mr. Luther stated the cost for paving up to the building will be incidental as it is paving up to the width of their hangar door which is if they have a one hundred foot wide door there will be a hundred foot wide pavement but they do not know what their building configuration is going to be. Chairman Henderson asked if this is the last major expense. Mr. Luther stated it is.
Commissioner Keith Elmore stated the bid tabulation shows Phase 4, 1 & 2 and Phase 5. He asked if those are items the County is not required to do. Mr. Luther stated this is correct. He stated the County is not accepting that right now as they do not have grant money to do that work. Commissioner Elmore asked if that is in the plan for the whole scheme of things and is something the County will be required to do at some point. Mr. Triplett stated it is not. He stated all the County is required to do contractually for MXR is what is before the Board tonight which is Schedules 1 and 2. He stated the other schedules will be to continue to take the taxiway further up the Airport on the west side and the County is not obligated to do that in any way, form, or fashion. Mr. Luther stated as the airpark further develops to the north the County will need the additional taxiway and connector in these other schedules of work. He stated they bid that at the time hoping they would have good enough prices that funding dollars would allow that to be built now but that is not the case. He stated once those projects come back around to be built or considered they will have to be rebid and put back out for bid. He stated once they are tabled tonight they basically go away so far as any obligation. Mr. Luther stated the Board is only considering awarding $582,026.85 to Mathis to do this connector over into the Airpark Stage 1.
Commissioner Elmore stated his biggest problem with this is receiving the grant money in a timely manner. Chairman Henderson stated the Board has talked about this and he understands his concerns. Commissioner Elmore asked if there is anyway the County can have assurances the County will receive this grant money. He asked if there are documents for that. Chairman Henderson stated there is documentation where the money has been applied for. Mr. Luther stated the grant has actually been awarded to the County. Commissioner Elmore asked if there is a date for receipt. Mr. Luther stated this is a reimbursement grant so the County has to spend the money and then apply for the reimbursement. He stated once the project starts, each month the contractor will turn in a pay application and when the County pays him for that invoice the County will in turn invoice the State for that same amount of money and expect to get that back within thirty to forty-five days after that.
Vice Chairman Gary Blevins stated the County has been approved for $650,000 and will be awarding contracts for $582,000 and will be able to invoice the State monthly. Mr. Luther stated that is correct. He stated the invoices are typically monthly as the contractor is paid. Vice Chairman Blevins asked Mr. Luther if he feels certain the County will receive those funds. He asked what the timeline for completion of the project is. Mr. Luther stated the project should be completed in ninety days depending on the weather. Vice Chairman Blevins asked if the bids taken on October 22nd are still good. Mr. Luther stated the bids were good for 120 days.
Commissioner Elmore stated the County has put about $2.5 million of the fund balance in the Airport right now. He stated he thinks the County has applied for grants and this process has been going on for a year and a half and the State still owes the County for grants. He stated that is his main concern. He stated Mr. Luther is saying they will reimburse the County when the work is done. He stated if he has some sort of assurance that will occur he will have no problem voting to approve this but with the history of what has happened on this project and with the County getting threatening letters from the Local Government Commission about the fund balance he is concerned about pulling more money out of fund balance to pay for this without some assurance the State will reimburse the County.
Chairman Henderson stated the types of reimbursement are different. He stated the type of reimbursement the Board is considering tonight the County is guaranteed to get that back. Mr. Luther stated the County has already been reimbursed the other money that was spent at the Airport for infrastructure. Chairman Henderson stated the County was told they would be reimbursed for some of the money the County fronted and may very well be reimbursed for that. He stated he was not given a date on that and cannot say when but there was an indication the County would be getting some additional monies for that. He stated that has not been received because of economic conditions in Raleigh as well as what is going on here locally. He stated there are different types of reimbursements the County can expect. He stated for the type of reimbursement the Board is considering tonight he thinks it is safe to assume the County will get that money. Mr. Luther stated the Airport Improvement Program is where the County is looking to get reimbursement for this work from as well as the work previously done at the Airport that the County has already been reimbursed for. He stated the County filed their final reimbursement last month for the west hangar development area for the grading, drainage and paving done over there. He advised the State promised $993,000 and the County has received those grants and drew the last amount down. Commissioner Elmore asked if the County has received that money. Mr. Luther stated the County has received the authorization to draw that money. He stated the application to draw down on it was sent in basically thirty days ago. He stated there were two sent in at the same time and they paid the $66,000 and the County is expecting the other. He stated he made a call before he got here to see if it was in the mail today.
Vice Chairman Blevins asked how much the County is talking about getting they have not actually gotten on grants that have been applied for. County Manager John Yates stated the water and sewer is the grants that are still outstanding in the amount of $1.2 million. Vice Chairman Blevins asked if the Board is talking about $1.2 million they thought the County was going to get for this project but have not received. Mr. Yates stated none of that work has been done. He stated he received another letter from the EDA this week and he is working with the High Country Council of Governments to answer their questions. He stated Mr. Luther and Mr. Triplett are also working on answering questions for them. Mr. Yates stated he was under the impression they were going to make a decision the second week in January but he was wrong. He stated they have asked for more information and this has been pushed back to at least February and maybe even longer.
Vice Chairman Blevins asked on the County’s agreement with MXR going forward, where the County stands on that on contractual obligations to them. He asked what the timeframe is for the County to complete all of this work in order to fulfill the County’s Economic Development Agreement with them. He asked if MXR can begin their work prior to any of this transpiring. Mr. Triplett stated they can begin their work prior to this transpiring but they are not contractually obligated to do so. He stated the way this is set up is with trigger points. He stated he developed a list of trigger points and the last of those to occur triggers their obligation to build their hangar. He stated they will have eighteen months to build their hangar once the last trigger point occurs. Mr. Triplett stated the trigger points have basically all been reached except this one. He stated this is the last remaining trigger point. He stated once the contract is awarded for the taxiway and signed that is the last trigger point and the eighteen months to build their hangar starts. He stated the County has another contractual obligation to pay them some economic incentive payments including a large lump sum payment upon completion of their hangar but that is not obligated to be paid unless and until they finish their hangar and get a certificate of occupancy for it. Vice Chairman Blevins stated that would take as long as eighteen months. Mr. Triplett stated that is correct. He stated it will definitely take into next fiscal year.
Vice Chairman Blevins stated he understands Commissioner Elmore’s concerns about putting additional money into this project given the economic climate we are in right now; however, the County has made an agreement with MXR and this is the last trigger point and a lot of the funds have been forthcoming although there is a significant amount that have not. He stated the County does have a fund balance that has to be nurtured diligently but the Board has to continue this project at least through this trigger point because of the County’s agreement with MXR and it goes back several years that this agreement has been negotiated. Vice Chairman Blevins stated this is something that as a Board they are obligated to do despite the concerns about finances right now.
Commissioner Elmore asked if the County does not get the money, the Board will be starting the budget work in March or April, will the County be looking at a tax increase because of this. Mr. Yates stated not at this time. He stated he and Finance Director Jerry Shepherd will be looking at a short term loan the Airport can take out as an enterprise fund and pay back. He stated he is going to push hard on a monthly basis to submit for these reimbursements so hopefully there will not be that much out there. Commissioner Elmore asked if the Airport right now has a fund balance. Mr. Shepherd stated there is no money there. He stated the County has supplemented these projects. Commissioner Elmore asked if Mr. Shepherd has that number. Mr. Shepherd stated as of November 30th, the Airport was supplemented $2.7 million. Commissioner Elmore stated that is in a period of less than two years.
Mr. Yates stated the County is owed $600,000 that he hopes that will be in within the next month and are owed money for the completion for Johnson Road the County has not been paid for. Commissioner Elmore asked if the County is looking for reimbursements of $600,000 plus $400,000 plus $500,000. Vice Chairman Blevins asked if the $1.5 million of the $2.7 million will be coming back to the County. Mr. Yates stated there is about $1 million coming back right now. Chairman Henderson stated there are other monies the County has been told they might be able to get in addition to that.
Commissioner Elmore asked if the County can borrow money at the Airport. He stated he noticed an article in the newspaper that the schools were not going to be able to borrow money. Mr. Yates stated this would be a straight loan from the bank. He stated the schools were looking for zero percent money and there is not a market for those bonds.
Commissioner Charlie Sink made a motion to approve the taxiway contract. The motion was seconded by Vice Chairman Gary Blevins and unanimously approved.
AIRPORT – GRANT RESOLUTION - County Manager John Yates advised he has received a letter from the Division of Aviation regarding the State airport aid grant agreements for the funding of the County’s Block Grant Project for the eastside partial parallel taxiway and security fencing. He stated the Board of Commissioners must approve the resolution for the grant.
Vice Chairman Gary Blevins made a motion to approve the resolution as presented. The motion was seconded by Commissioner Luther Parks and unanimously approved.
RESOLUTION
WHEREAS, a Grant in the amount of $150,000 has been approved by the Department based on total estimated cost of $166,667; and
WHEREAS, an amount equal to or greater than ten percent (10%) of the total estimated project cost has been appropriated by the Sponsor for this Project.
NOW THEREFORE, BE AND IT IS RESOLVED THAT THE County Manager of the Sponsor be and he hereby is authorized and empowered to enter into a Grant Agreement with the Department, thereby binding the Sponsor to the fulfillment of its obligation incurred under this Grant Agreement or any mutually agreed upon modification thereof.
NORTHWESTERN REGIONAL HOUSING AUTHORITY – PROPERTY ACQUISITION - Ned Fowler, Director of Northwestern Regional Housing Authority, stated they are the non-profit corporation providing affordable housing development services in Wilkes and surrounding counties for the past thirty years. He stated with him is Ed Holland, Vice Chairman of the Regional Housing Authority Board of Trustees and representative for Wilkes County on their Board. He stated they are here tonight to ask the Board’s consideration on an important new opportunity currently presenting itself in downtown Wilkesboro which they are confident will provide lasting benefits to the citizens of Wilkes County. He stated that opportunity is the proposed historic renovation and adaptive reuse of the old Wilkesboro School. He gave the Board a drawing of the proposed renovations. Mr. Fowler stated if they are successful in bringing highly competitive tax credit dollars to Wilkes County in 2010 for these purposes they should be able to do the following:
- Provide full project financing with no local government funds
- Provide a fair purchase price to the local government for the property subject to appraisal for the land and the building
- Return the property to the ad valorem tax books
- Revitalize a blighted property in downtown utilizing local contracting, materials, and supplies to the fullest extent possible
- Will do everything they can to list the property on the National Register of Historic Places which protects the property in perpetuity
- Provide attractive affordable housing to Wilkes County seniors who have limited incomes and severe housing need
- Create a community meeting space and historic memory room in the area free for use by the citizens and also not to isolate the seniors who live there
Mr. Fowler stated he would like to recognize County Attorney Tony Triplett with regard to some of the details they have been discussing with respect to property control that is needed in the near term so they can pursue these financing opportunities. Mr. Triplett stated he, Mr. Fowler, and Mr. Holland talked earlier this afternoon about what is actually before the Board tonight which is a request by the Housing Authority to consider entering into an offer to purchase and contract. He stated the Board will recall it was proposed at the last Board meeting the Housing Authority be able to lock up the property and have control of the property so they can make application for the grants they have spoken of. He stated what they are asking of the County is that the Board approve an offer to purchase and contract that would accomplish this. Mr. Triplett stated he has had the opportunity to go through this and it is a standard offer to purchase and contract. He stated it does have some provisions they have talked about for clarification purposes. He stated the most important thing he is going to mention to the Board is as the Board knows a County cannot just simply privately negotiate the sale of its property to any entity under any circumstances. He stated only particular circumstances qualify for that. He stated he went through two of those at the last meeting. He stated one was low and moderate income housing and the other was historic properties. Mr. Triplett stated given the particular requirements of the statutes, they feel that if the Board does wish to proceed with this the best avenue is going to be under a statute that allows a County Board of Commissioners to convey property to a public or private entity for low or moderate income housing programs. He stated that appears to be the statute that would operate here and would work best if the Board wishes to go forward with that. Mr. Triplett stated a strong component of the presentation of course is the historic nature of this property but there is no guarantee that is going to happen and he is hesitate to recommend to the Board, if they decide to go forward, they base their approval on the historic property aspects of this transaction in case that does not go through. He stated also even if the Board did that they can only agree by private negotiation to convey property for historic preservation purposes to an entity one of whose primary purposes is the preservation of property like that. He stated that is probably not one of the primary purposes of Northwestern Regional Housing Authority. Mr. Triplett stated on the other hand providing housing for low and moderate income persons certainly is one of if not the primary purpose they serve. He stated that appears to be the statute the County would need to go under if the Board wants to do this. He stated what the Board is being asked to do tonight is to approve this contract. He stated the County is not conveying any property tonight or having a closing. He stated the Board is being asked to approve a contract that will obligate the County if certain conditions are fulfilled to sell this property to Northwestern Regional Housing Authority or actually a non-profit corporation by the name of Northwestern Housing Enterprises, Inc. or its assigns for $325,000 if these conditions are met. Mr. Triplett stated the conditions primarily are concerned with the application for the Historic Preservation Grants that were spoken of at the last meeting by Mr. Fowler. He stated if that process is successful and those grants are obtained and the financing is able to be approved and in place, the Housing Authority will have the authority and the right to proceed to closing. He stated at that point the County would execute a General Warranty Deed to them for this property. He stated the only caveat is even if all that happens and the Board approves all this and Northwestern Regional Housing is successful and this project goes forward and goes to closing and the County conveys the property, it will have to be conveyed subject to covenants and conditions that assure that it will be developed for sale or leased to persons of low or moderate income. He stated there will have to be covenants and conditions in the deed that assure it is used for that purpose. Mr. Triplett stated Mr. Fowler has sent him language to look at and he will be looking over that and working on it. He stated that does not have to be decided tonight. He stated that would be in the deed but not in this contract. He stated all the Board is being asked to do is to approve a contract that would surrender the County’s control over this property and cede control to the Housing Authority for the purpose of making their applications. He stated if they are successful the County would proceed to closing and for $325,000 the property would be conveyed to them or their assigns. He stated that is the decision the Board is called on to make tonight.
Chairman Zach Henderson stated when the project originally came up he was under the impression the proposal was based upon preservation of the property for historic purposes. He stated it has been pretty much talked about along those lines. He asked if it changes the scope of the project when they say it can be used for other purposes other than for historic preservation. He asked if the scope of the project changes is it a different project than what the Board originally talked about. Mr. Triplett stated if the Board wishes to proceed with this, they will have to choose one of these two avenues, either the low and moderate income housing avenue or the historic preservation avenue. He stated by choosing the low and moderate income housing avenue it does not necessarily change the nature of the project; however, it does probably provide a little more latitude for the project to subsequently change as a purely legal matter. He stated he, Mr. Fowler, and Mr. Holland talked about that this afternoon. Mr. Triplett stated if the Board chooses this avenue, low and moderate income housing, and for some reason the historic preservation aspect of the project simply cannot be realized but the Housing Authority is able to go forward with the project anyway they would have the right to do so. He stated he does not know how comfortable the Board feels about that but by choosing this avenue that is a possibility that cannot be ruled out. He stated he is not saying that is what the Housing Authority wishes to do and they do not. He stated they want to emphasize the historic preservation nature of this and intend to do that but if the County chooses this other avenue and that proves to be unsuccessful, they can still go forward with the project. Chairman Henderson stated taking that issue into consideration if Mr. Triplett is aware of the feelings of the Wilkesboro Town Council and are there any concerns about that topic. Ken Noland, Wilkesboro Town Manager, stated the Town has two concerns with this property. He stated one is the preservation of the historic structure and two is allowing for some housing downtown. He stated Northwestern Regional Housing has come up with an opportunity for them. He stated he understands the legal terms of what Mr. Triplett is saying on how to convey the property and if it is the choice of this Board to convey it for low and moderate income housing the Town is still in support. He stated the reason they would be in support is this property is within the district of their Historic Preservation Commission boundaries. He stated that requires any external up fit or rehabilitation to the building be done in a way that maintains the historical integrity. He stated the Town of Wilkesboro would still have control over the exterior of that building to make sure that part of the building maintains that historic nature. Mr. Noland stated what it possibly could change is some of the interior because they do not have control now or would not have control of that. He stated he does not know exactly what the organizations plans are for retrofitting the interior. He stated the Town is still good based on that because they still have control over the exterior site.
Mr. Fowler stated there is a significant financial advantage to Northwestern Housing to pursue full historic preservation of the existing building because then the project would benefit from both the housing credits and the historic credits in terms of financing the cost of the project. He stated their full intention is to go forward in both directions both providing affordable housing and doing it in accordance with the requirements of historic preservation. Mr. Fowler stated because the historic preservation is a separate prong of this, it is a four part submission to the National Park Service. He stated it is possible during the submissions to the National Park Service and these are architectural submissions that are required to preserve the historic integrity of the building, the Park Service would have a hurdle this project could not reach in order to obtain full listing on the National Registry of Historic Places. Mr. Fowler stated if that happened they would have a partial historic renovation. He stated driving by the building you could not tell any difference because it would look fully historically renovated but the ultimate goal is indeed to go all the way with the historic renovation because of the financial incentives involved and also in the public trust to preserve in perpetuity the building for we the people. He stated they would approach this both ways. Mr. Fowler stated their house counsel was on the phone with him this morning on the same question that Mr. Triplett, Mr. Holland, and he discussed today which is one of the two statutes the County has to respond to in order to negotiate the sale. He stated the County can probably use either one but Mr. Triplett’s opinion and their house counsel’s opinion is that the safer more realistic State Statute under which property can be transferred to a non-profit for a public purpose is the Low Income Housing Statute rather than the historic.
Vice Chairman Blevins asked what the term for this purchase and contract is. Mr. Fowler stated the timing of the language in this offer to purchase and contract is dictated by the State’s allocation of housing tax credits. He stated they go through the same process every year so they have a set timeframe that they go through. He stated this contract provides that if the Board approves it tonight, they will have to get it executed within three to four working days so they can meet the State’s preliminary deadline for a credit application. Mr. Fowler advised the State will authorize a market analysis and an appraisal and will charge Northwestern Regional Housing for those items. He advised the State will authorize and contract for both of those on the old building. He stated when they do that they will score this submission. He stated it will go to their Board in July and they will make their announcements on awarding the credits in early August. He stated Housing Tax Credits are volume capped like Industrial Development Bonds and there are only so many per State per capita allocation. He stated that makes it a scarce resource and a competitive process. He stated they and others, for profit and non-profit developers around the State, are competing for those dollars so they will be ranked and scored. He advised Statewide one out of four will be funded in the pool. He stated they think this one can be successful but if it is not for some reason, they put a provision in this contract that turns control of this property back over to the County at the end of August if they have not received a reservation of credits. He stated if they have not been successful and received a reservation of credits by August 31, 2010 the property comes back to the County’s control and makes the contract null and void. Mr. Fowler stated if they are successful they have from August until approximately the end of October to line up their institutional investors and hopefully their local advantaged construction lending and close the purchase by November 19th. He stated he wants to make it clear to the Board that the State will not allow them to apply for the credits without control of the property which the Board will have to authorize tonight if they are going to go after it this year. He stated as a point of clarification he would like to note that the offer to purchase is indeed offering $325,000 for the property but that offer will have to be subject to appraisal. He advised the State will not allow them to have a purchase price that exceeds the fee appraisal. He stated he does not think there will be any difficulty but he does not know.
Vice Chairman Blevins asked what parcel of land exactly is included in this contract. He asked if it includes the building the County utilizes to store equipment. Mr. Triplett stated it does. Vice Chairman Blevins stated the County would have to go through the expense of that process by November. Mr. Fowler stated if some of that is voting equipment they do not think they will need access to the building prior to the November 2010 elections. He stated they would need access to the historic building and the contract would authorize that in the interim they be allowed to go in and do at their expense property surveys and environmental hazard reviews because if they are successful the first thing they will be required to do in the building process is to send a hazmat team in under a plan approved by hazard engineers to remove any asbestos, lead based paint, oil drums, and any environmental hazards that might be there. He stated there could be sub-surface oil tanks. He stated they will be required to get all of that done before the general contractor can even enter the building to begin the work.
Commissioner Luther Parks asked if the building is fixed and restored as being discussed what the worth will be at that time. Mr. Fowler stated the value after it is done at their best estimate on a cost basis would be in the neighborhood of $6 million.
Commissioner Keith Elmore made a motion to approve an offer to purchase and contract between Wilkes County and Northwestern Housing Enterprises, Inc. as presented at tonight’s meeting, to authorize the County Manager to sign the offer to purchase and contract on behalf of the County, and to give this approval based on the authority of General Statute 153A-378 Subdivision 3 concerning the conveyance of property for low and moderate income housing programs. The motion was seconded by Commissioner Luther Parks and unanimously approved.
Mr. Fowler stated they are excited about this and they appreciate the Board’s consideration. He stated they will do their best to make this a shiny apple in Wilkes County.
YADKIN RIVER GREENWAY INTERGOVERNMENTAL AGREEMENT - County Attorney Tony Triplett stated the Yadkin River Greenway Intergovernmental Agreement and the accompanying memo before the Board have been in the works for some period of time. He stated as long ago as 2006 representatives of both Towns, the County, and the Yadkin River Greenway Council began meeting and talking about this and trying to come up with a new agreement to govern how the Greenway is going to be approached from this point forward. He stated there was an initial Intergovernmental Agreement back in the year 2000 when it was first formed which he included with the Board’s information. He stated that agreement was for the very first phase of the Greenway which was a wonderful accomplishment at that time but the Greenway has grown by leaps and bounds since then so there was a feeling that there needs to be a more comprehensive agreement on how to govern security, maintenance, easements, expansions, and virtually every issue that comes up with the Greenway. Mr. Triplett stated he has worked with Wilkesboro Town Manager Ken Manager, Wilkesboro Attorney Bill Gray, North Wilkesboro Town Manager Hank Perkins, North Wilkesboro Town Attorney Gary Vannoy, and Bill Clifton with the Greenway Council. He stated he has talked to County Manager John Yates and Sheriff Dane Mastin who has in turn talked with Chief Rhodes and Chief Bowlin with the two Towns. He stated there has been a lot of people working on this to try to cover all aspects of this and he thinks they have a pretty good comprehensive agreement now that really is not that different from what they have been doing and is pretty much a continuation of what they have done up to this point. Mr. Triplett stated this agreement gives more detail than they had before and basically makes it applicable to the whole Greenway and any expansions of the Greenway. He stated the most important issue is probably security and maintenance. He stated it provides that each jurisdiction is responsible for its own security. He stated on maintenance the Town of Wilkesboro has already taken all portions of the Greenway within its municipal limits into its own park system so they are already supplying maintenance to its portion of the Greenway. He stated North Wilkesboro has not yet done that but may do it at some point. He stated the agreement would call for the County to provide maintenance to the County’s and North Wilkesboro’s portions of the Greenway and then bill North Wilkesboro for their pro rata portion of this maintenance.
Commissioner Luther Parks stated the agreement is for a minimum of twenty years. He asked what happens beyond that. Mr. Triplett stated a new agreement would be needed at that time if it is still in place at that time and the Greenway is still going forward. He stated it would have to be readdressed at that point.
Commissioner Charlie Sink stated the agreement is dated July 1, 2009. He asked if that is the appropriate dating. Mr. Triplett stated it should be dated January 1, 2010 and will be changed if the Board approves the agreement.
Mr. Triplett stated this is on the agenda for the Town of North Wilkesboro at their meeting tonight and they are probably going to approve it and it is on the agenda for the Town of Wilkesboro next week and they are probably going to approve it also.
Commissioner Charlie Sink made a motion to approve the Yadkin River Greenway Inter-Governmental Agreement. The motion was seconded by Commissioner Luther Parks and unanimously approved.
LANDFILL - County Manager John Yates stated he and Solid Waste Director Kent Brandon wanted to come before the Board tonight to make the Board aware with the economic downturn the Landfill is not immune. He stated the Landfill is losing revenues as they are not getting the tonnages they have in the past coming in. He advised the State mandated recycling has got people doing a lot more recycling. He stated the Landfill is emptying their containers more and plastics are really coming in well. He stated this is keeping a lot of trash out of the Landfill which is good but this is not generating revenues. Mr. Yates stated if a person brings in a bag of recycling they can dump a bag of trash for free and this is costing the Landfill a lot of money.
Mr. Brandon stated the bag for bag trade off is hurting the Landfill mainly because when the State passed the law in October 2009 requiring plastic bottles to be recycled most people started recycling more of everything else which has reduced revenues at the Landfill. He stated a good example of this is when they opened the first working day after the Christmas holiday, they took in 221 tons of trash and approximately 100 tons of this was household trash which should have brought in around $3,800 and they only collected about $1,600 because of the bag for bag trade off. Mr. Brandon stated he would like to recommend discontinuing the bag for bag trade off policy and allow people to dispose of their recyclables free of charge but pay for disposal of their trash. He stated this would increase revenues at the Landfill while still allowing citizens to dispose of recyclables free of charge. Mr. Brandon stated it is also his understanding that Wilkes is the only county in the State that still has the bag for bag trade off arrangement.
Commissioner Charlie Sink stated the Town of North Wilkesboro has started picking up recyclables in town and one of the Town people said they are not paying the County what they used to. He stated everybody is going in that direction.
Chairman Zach Henderson stated that is a good thing so far as the recycling part of it but the County is losing money on the bag for bag. Mr. Brandon stated the revenue end is hurting the Landfill.
Mr. Yates stated he, Mr. Brandon, and Landfill Supervisor Phil Green when to a meeting at the Uwharrie Landfill month before last and every county represented there are all seeing the decrease in their revenues. He stated this is partly because of recycling and partly because of the economy. He stated the Landfill is just not getting the tonnage in. Mr. Yates stated they are not saying this will correct all the problems. He stated the Landfill has three positions that are not filled and they are trying to take steps to cut costs the best they can but they may have to come before the Board to cut more. He stated they think this proposal will help some.
Chairman Henderson stated this is a real problem and the Board is going to have to do something about it.
Vice Chairman Gary Blevins stated with regard to accepting recyclable for free which sounds like a good policy, is there a significant cost to the Landfill in how they handle that recycling material and what they do with it. He asked if the Landfill is taking it for free and then costing to handle and dispose of it. Mr. Brandon stated it is costing some where in the neighborhood of $50,000 per year to transport it to Foothills Recycling. Mr. Yates stated the Landfill runs roll off containers from all of the Convenience Centers to Foothills Recycling, dumps them, and takes them back. He stated there are significant transportation costs. Mr. Brandon stated there is an expense to the recycling. Chairman Henderson stated it is an encouragement to people to recycle if they do it on a free basis.
Vice Chairman Blevins stated if the object of that process is to reduce the volume of material going into the Landfill is that occurring and the volume of material going into the Landfill decreasing. Mr. Brandon stated it is. Vice Chairman Blevins stated he would think the cost of maintaining the Landfill and the number of people that are required to perform that activity would be reduced if the amount of material going in is also reduced. He asked if that is correct. Mr. Brandon stated it takes a certain amount of personnel to operate regardless of whether they are taking in a great deal of trash or a moderate amount of trash. Vice Chairman Blevins stated in a lot of business models as you get a larger volume, per unit costs less so if you reduce the volume the unit cost goes up. He stated basically what it happening is it is costing the Landfill more per ton of litter to dispose of it now that we have recycling. Mr. Brandon stated that is true. Vice Chairman Blevins stated if the rate is set at $38 per ton that may not really reflect the true cost of what it takes to handle a ton of trash at this time.
Mr. Yates stated that is correct. He stated one of the problems is State mandates that are coming down. He stated they have had two in the last three months. He stated DEHNR has said they are going to make the County monitor their gas emissions. He stated EPA came in with their gas standards and the Landfill will have to hire engineers to do the report and that is going to cost about $5,000 per year from here on out. He stated he is expecting them to come down even harder on gas emissions and make the Landfill flare the gas off eventually at all three Landfills. He stated the cost is creeping up and the County does not have any control on those mandates.
Vice Chairman Blevins stated he would be curious in looking at the expenses and revenues for the Landfill and asked Mr. Brandon to give the Board a better idea of what a true cost is per ton for their overall operation with the new regulations in effect and the recycling operation, etc. notwithstanding any new regulations that might come into effect with the gases, etc. so the Board will have a handle on what it is really costing at the Landfill to handle the trash.
Commissioner Keith Elmore asked if there are folks that will pick up the recyclables for them. He stated there is some value there and instead of the County spending $50,000 to ship the product have they tried to sell it and have someone pick it up. Mr. Brandon stated they have looked at that and right now with the price of recyclables it would not be cost effective for the Landfill to take that on themselves. He stated a big initial expense is getting the recyclables prepared to market such as baling. He stated the plastics and cardboard would need to be baled. Mr. Brandon stated there would be a considerable expense to buying a baler and a building to house it, etc.
Commissioner Luther Parks stated recycling is extending the life of the Landfill. Mr. Brandon stated that is correct. Commissioner Elmore stated that saves about $1 million per year. Commissioner Charlie Sink stated he hopes it would be that much but he thinks that might be a little high. He stated as they are looking at their cost they might want to poll other Landfills to see what they are charging now. He stated the only raise the County has had in the charge has been mandated by the State and it has not been changed since the Landfill was opened. Mr. Brandon stated Yadkin County charges $50 per ton. Commissioner Sink recommended they call around and find several landfills that Wilkes would be comparable to and get an idea of what folks are actually charging. He stated he certainly does not want to jump prices with the economic times now but the Board has to be realistic on what the Landfill is charging to provide the service.
Vice Chairman Blevins stated on municipal services like water and sewer they are revenue neutral. He stated they bring in enough money to pay for the service but he does not know how the Landfill statutes operate but he would think it would be the same. Commissioner Sink stated it cannot be revenue neutral. He stated they have reserves they have to maintain. Vice Chairman Blevins stated the Landfill is basically set up to not make money or lose money.
County Attorney Tony Triplett stated the Landfill should not lose money if they can help it but it is set up as an enterprise fund. He stated both the Landfill and Airport are enterprise funds and the Board wants them ideally to operate with a surplus. He stated money can be set aside for future Landfill purposes like new cells or a new compactor, etc. He stated historically that is what has been done with the enterprise fund and that typically is the goal the County will want to try to achieve.
Mr. Yates advised the State requires the County to put so much back per year for closure of the Landfill.
Chairman Henderson stated on the last cell or two the County has opened, there has been money to pay for that and the County did not have to borrow the money. He stated some counties have to borrow money to open and close cells.
Finance Director Jerry Shepherd stated the Landfill has been debt free for four or five years. Chairman Henderson stated that is a good thing. Mr. Yates stated the Landfill is to the point now they are tight on money.
Chairman Henderson asked if the Board wants to think about this bag for bag issue about whether or not to start charging for all that, do they want Mr. Brandon to come back with some figures at the next meeting, or does the Board want to take action on this tonight. He stated he thinks this is something the Board is going to have to address whether it is tonight or at the next meeting or two. He stated the Landfill cannot continue to lose revenue the way it is.
Vice Chairman Gary Blevins made a motion to go ahead at the recommendation of the experts and eliminate the program the Landfill has been using and also look at the rate structure going forward and take more time to look at that and make the right decision and do what is fair for the taxpayers and people of the County and eliminate the archaic system that is not working any more based on the new laws and to stop the flow of lost revenues. The motion was seconded by Commissioner Charlie Sink.
Commissioner Elmore stated this will be a fee increase on some folks that are using this and he believes it warrants a little more study before the Board makes this change. He stated he does not think this has been publicized. He asked how many people utilize this program. Mr. Brandon stated he does not have an exact number but a lot of people do. Commissioner Elmore stated he thinks the Board should let people voice an opinion before the Board makes a decision.
Vice Chairman Blevins asked if the motion can be amended to put the proposal into effect over a thirty day period with a notification. He stated he does not think a Public Hearing is really necessary. Commissioner Elmore stated he thinks there should be feedback if fees are going to be raised.
Vice Chairman Blevins amended his motion to be effective with a thirty day notification. Commissioner Sink amended his second.
Voting on the motion: Ayes - Chairman Zach Henderson
Vice Chairman Gary Blevins
Commissioner Luther Parks
Commissioner Charlie Sink
Nays - Commissioner Keith Elmore
ADULT CARE HOME COMMUNITY ADVISORY COMMITTEE APPOINTMENT - County Manager John Yates stated he has received a letter from High Country Council of Governments stating that Brenda Sales has indicated her willingness to be appointed for a one year term to the Wilkes County Community Advisory Committee for Adult Care Homes. He stated currently two vacancies exist on this committee.
Commissioner Luther made a motion to approve the appointment as requested. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
PURCHASING DEPARTMENT – SALE OF SURPLUS PROPERTY - County Manager John Yates stated he has received a request from the Purchasing Department to sale surplus items being a 1998 GMC 3500 Cab & Chassis, Mileage 202,915 and a Sig Sauer 9mm Pistol SN 242676 using the electronic auction method.
Commissioner Charlie Sink made a motion to approve the request. The motion was seconded by Commissioner Luther Parks.
Commissioner Keith Elmore asked what electronic auction is. Mr. Yates stated that is use of the internet. Commissioner Elmore asked if that is the County site. Mr. Yates stated it is at govdeals.com. Commissioner Elmore asked if the County posts the items. Mr. Yates stated they do. He stated the County sold a car there and got a lot more bids on the car. He stated it goes all over the State. Commissioner Parks stated the site includes pictures.
Voting on the motion: Ayes - Unanimous
SMOKY MOUNTAIN CENTER - County Manager John Yates stated Smoky Mountain Center wants to buy two condos. Commissioner Charlie Sink stated Smoky Mountain Center has been looking for office space for sometime in Boone over a period of several years and they have finally found two condos located on New Market Boulevard. He stated the Nationwide Insurance person was the developer of this condo building. He stated they have already bought the condos but after the purchase the Local Government Commission has said they need the Boards of Commissioners to approve the purchase. Commissioner Sink stated there are two units one on the ground floor to accommodate folk’s initial appearance and another on the second floor. He stated one was acquired through foreclosure, unfortunately, but they got a very good price at almost half of what the person was asking for it. He stated the LGC needs the Boards approval to purchase the two condos.
Commissioner Keith Elmore asked what they are doing now for office space. Commissioner Sink stated they are renting. Commissioner Elmore asked where they got the money. Commissioner Sink stated they have accumulated money over a number of years. Commissioner Elmore stated their funding is county money. Commissioner Sink stated it is very little county money. Commissioner Elmore asked where the funding comes from. Commissioner Sink advised it is State and Federal money. He stated this purchase does not involve county funds or service funds. Commissioner Elmore stated Wilkes County provides the bulk of their funds. Commissioner Sink stated the LME operating budget is $50 million to $60 million and Wilkes County provides a miniscule amount. Chairman Zach Henderson stated the County provides money to New River but this is the LME side.
Vice Chairman Gary Blevins asked if there are facilities here. Commissioner Sink stated there are provider facilities through New River.
Mr. Yates stated the County contributes $324,000 per year. Commissioner Sink stated that is not even 1/10 of a percent of their budget. Vice Chairman Blevins stated they provide a lot more than that to the County. He stated that is like Region D. He stated the Region D dues are $36,000 per year but the County gets back millions in pass through money for Work Force Development, etc.
Commissioner Elmore asked if Smoky Mountain Center is mental health. Chairman Henderson stated it is the LME side. Commissioner Elmore stated they are headquartered in Asheville. Commissioner Sink stated they have three offices one in Sylva, one in Boone, and one in Lenoir. He stated the primary staff is in Sylva.
Commissioner Luther Parks made a motion to approve the Resolution. The motion was seconded by Commissioner Charlie Sink.
Commissioner Elmore asked if all the other counties have approved this. Commissioner Sink stated he has not heard how many have approved it. Chairman Henderson stated all fifteen have to be approached on this. Commissioner Sink stated he does not foresee any problems on that.
Voting on the motion: Ayes - Unanimous
RESOLUTION
OF THE
WILKES COUNTY COMMISSION
WHEREAS, Smoky Mountain Center for Mental Health, Development Disabilities and Substance Abuse services (“Center”) is an area authority organized under North Carolina General Statute 122C, and as such serves as the Local Management Entity for the area consisting of fifteen counties; and,
WHEREAS, the Center has purchased certain real property in Watauga County, North Carolina, which it intends to use in the normal course of its business; and,
WHEREAS, pursuant to G. S. 122C-147(c) each county in the fifteen county area must approve the purchase of real property by an area authority by resolution of the County Commission; and,
WHEREAS, the property is described as Suite 2A & Suite 4 of the New Market Office Suites, as shown in Unit Ownership Book 8 Page 162 of the Watauga County Registry of Deeds.
NOW THEREFORE BE IT RESOLVED that this Board upon motion and a second, and after discussion in open session, hereby approves the purchase of the property by the Center, this the 5th day of January, 2010
WILKES COUNTY BOARD OF COMMISSIONERS
/s/ Zach Henderson, Chairman
CLOSED SESSION - Commissioner Luther Parks made a motion to go into Closed Session to consult with and give direction to the County Attorney concerning pending administrative matters by the name of Wilkes County versus Louisiana Pacific Corporation on property tax appeals 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 Luther Parks seconded by Vice Chairman Gary Blevins 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 Vice Chairman Gary Blevins and by unanimous vote adopted to adjourn the meeting of the Wilkes County Board of Commissioners at 6:40P. M.
Alene E. Faw, Clerk Zach Henderson, Chairman
WILKES COUNTY BOARD OF COMMISSIONERS
Approved:
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