MINUTES
 
WATAUGA COUNTY BOARD OF COMMISSIONERS
TUESDAY, MARCH 18, 2008
 
            The Watauga County Board of Commissioners held a regular meeting on Tuesday, March 18, 2008, at 6:00 P.M. in the Commissioners’ Board Room of the Watauga County Administration Building.
 
                        PRESENT:       Jim Deal, Chairman
                                                William R. Winkler, III, Vice-Chairman
                                                Winston Kinsey, Commissioner
                                                Mary Moretz, Commissioner
                                                Anthony di Santi, County Attorney
                                    Robert E. Nelson, Jr., County Manager
                                                Deron Geouque, Assistant County Manager
                                                Anita J. Fogle, Clerk to the Board
 
            Chairman Deal called the meeting to order at 6:07 P.M., welcoming those in attendance.
 
JOINT MEETING WITH WATAUGA COUNTY BOARD OF EDUCATION
 
            The following Board of Education members were present for the joint meeting: Chairman Lowell Younce, Lee Warren, Deborah Miller, Steve Combs, and Ron Henries. Also present were Superintendent Bobbie Short, Board of Education Attorney Paul Miller, and Clerk to the School Board Jennifer Combs.
 
            An Agency Agreement; Lease and four contract amendments were added to the Joint Meeting agenda.
 
PRESENTATION OF THE THIRD GUARANTEED MAXIMUM PRICE (GMP) POST-BID FOR THE NEW WATAUGA COUNTY HIGH SCHOOL
 
Mr. Marty Moser with Barnhill/Vannoy presented the third Guaranteed Maximum Price (post-bid) including alternates numbered 2, 4, 5, 6 & 8 for the new Watauga County High School in the amount of $48,215,338 bringing the project total to $59,900,000. This GMP amount was to be presented to the LGC for financing approval at their April meeting.
 
            Mr. Mike Kesterson gave a brief update on the progress of the project. Mr. Kesterson stated that the structural steel installation was to begin in May 2008 and the substantial completion date for the entire project was scheduled for May 24, 2010.
 
            Upon recommendation from the Watauga County Board of Education, Commissioner Moretz, seconded by Vice-Chairman Winkler, moved to accept the Guaranteed Maximum Price with alternates numbered 2, 4, 5, 6, & 8 in the amount of $48,215,338 which was in the form of a third amendment to the Barnhill/Vannoy contract bringing the project total to $59,900,000.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            Chairman Deal reviewed four SfL+a contract amendments. The first, dated April 22, 2007, was in the amount of $39,000; the second, dated February 18, 2008, was in the amount of $35,000; the third, dated February 19, 2008, was in the amount of $25,000; and the fourth, dated March 11, 2008, was a deductive change order in the amount of $232,500.
 
            Commissioner Kinsey, seconded by Vice-Chairman Winkler, moved to approve the deductive contract amendment from SfL+a, dated March 11, 2008, in the amount of $232,500.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            Vice-Chairman Winkler, seconded by Commissioner Moretz, moved to approve the contract amendment from SfL+a, dated February 18, 2008, in the amount of $35,000 and the change order from SfL+a, dated February 19, 2008, in the amount of $25,000.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            County Manager Nelson was asked to contact SfL+a for a more current request for the contract amendment dated April 22, 2007, prior to consideration.
 
            County Manager Nelson presented a proposed “Agency Agreement by and between Watauga County Board of Education and Watauga County, North Carolina” and “Lease by and between County of Watauga, North Carolina as Lessor and Watauga County Board of Education as Lessee” regarding the new high school project.
 
            Upon recommendation from the Watauga County Board of Education, Vice-Chairman Winkler, seconded by Commissioner Kinsey, moved to approve the Agency Agreement and Lease, contingent upon review by the Board of County Commissioners’ and Board of Education’s attorneys.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            The joint meeting with the Board of Education adjourned at 6:30 P.M. and, after a short recess, the regular meeting of the Board of Commissioners resumed.
 
APPROVAL OF MINUTES
 
            Chairman Deal called for additions or corrections to the March 3, 2008, regular meeting and closed session minutes.
 
            Vice-Chairman Winkler, seconded by Commissioner Moretz, moved to approve the March 3, 2008, regular meeting minutes as presented.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            Commissioner Kinsey, seconded by Vice-Chairman Winkler, moved to approve the March 3, 2008, closed session minutes as presented.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
[Chairman Deal announced that Commissioner Cooper was out-of-town.]
 
APPROVAL OF AGENDA
 
            Chairman Deal called for additions and/or corrections to the March 18, 2008, agenda.
 
            County Manager Nelson requested to add a discussion to schedule a date for an upcoming joint meeting with the Towns of Blowing Rock and Boone and ASU.
 
            Commissioner Moretz, seconded by Commissioner Kinsey, moved to approve the March 18, 2008, agenda as amended.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
PROPOSED DOCUMENTS FOR NEW HIGH SCHOOL PROJECT FINANCING
 
Chairman Deal reviewed a Deed of Trust Security Agreement, an Installment Financing Contract, and a Resolution Authorizing the Deed of Trust and the Installment Financing Contract with BB&T, the bank that was approved at the March 3, 2008, meeting for the $70,000,000 High School financing placement.
 
            A.        Deed of Trust Security Agreement – Chairman Deal reviewed a Deed of Trust and requested that the statement which authorized “a maximum $100,000,000 in financing” be replaced with “a maximum of $70,000,000 in financing.” Chairman Deal also stated that the Exhibits were to reflect a newly recorded property description.
 
            Commissioner Kinsey, seconded by Commissioner Moretz, moved to approve the Deed of Trust with the amount not to exceed $70,000,000 and with the newly recorded property description included.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            B.         Installment Financing Contract – Chairman Deal presented the Installment Financing Contract with BB&T, the bank that was approved at the last Board meeting for the $70,000,000 High School financing placement. Chairman Deal stated that the property description was to reflect the newly recorded plat for the new High School.
 
            Commissioner Moretz, seconded by Vice-Chairman Winkler, moved to approve the Installment Financing Contract as presented in an amount not to exceed $70,000,000; and contingent upon Local Government Commission approval.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            C.        Resolution Authorizing Deed of Trust and Installment Financing Contract – Chairman Deal presented a Resolution of the Board of Commissioners of the County of Watauga, North Carolina, Approving an Installment Financing Contract and a Deed of Trust, Lease and Agency Agreement with Respect Thereto and Delivery Thereof and Providing for Certain Other Related Matters which was drawn by Bond Counsel Scott Leo.
 
            Vice-Chairman Winkler, seconded by Commissioner Kinsey, moved to adopt the resolution as presented.
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
PUBLIC HEARING TO ALLOW CITIZEN COMMENT ON THE SUBMISSION OF AN APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE CONSTRUCTION OF A “NEW HOSPITALITY HOUSE”
 
            Chairman Deal declared the public hearing open at 6:51 P.M. to consider a CDBG application for funds for the construction of the new Hospitality House.
 
            Mr. Joe Furman stated that, at a previous meeting, the Board approved a CDBG application for funds to construct a “new Hospitality House facility.” The application required two public hearings with this being the first and the second being scheduled for April 14, 2008.
 
There being no public comment, Chairman Deal declared the public hearing closed at 6:53 P.M.
 
            Mr. Furman requested the Board also schedule an additional public hearing for April 14, 2008, to allow citizen comment on the close-out of a current CDBG Urgent Needs Project.
 
            Commissioner Moretz, seconded by Vice-Chairman Winkler, moved to set a public hearing for April 14, 2008, to allow citizen comment on the close-out of a current CDBG Urgent Needs Project.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
SOIL AND WATER CONSERVATION GRANT APPLICATION REQUEST
 
            Mr. Denny Norris, Chair of the Watauga Soil and Water Conservation District, presented a grant application request in the amount of $168,000 from North Carolina DENR Division of Water Resources. The grant, if awarded, required a local match of $84,000 which has been awarded from the Clean Water Management Trust Fund. This project was to restore 1500 linear feet of the Upper Watauga River along headwaters in the Foscoe Community. The Soil and Water Conservation District Board planned to supervise the grant and provide supporting documentation to the County.
 
            Commissioner Kinsey, seconded by Vice-Chairman Winkler, moved to authorize the application for the grant in the amount of $168,000 from NCDENR with the local match of $84,000 to come from the Clean Water Management Trust Fund.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            Commissioner Kinsey, seconded by Commissioner Moretz, moved to adopt a resolution for the Upper Watauga River Enhancement Project.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
CHILDREN’S COUNCIL PROPOSED PROCLAMATION FOR “MONTH OF THE YOUNG CHILD”
 
Ms. Jennifer Wilson-Kearse presented a proposed proclamation denoting April as the “Month of the Young Child.”
 
            Commissioner Moretz, seconded by Vice-Chairman Winkler, moved to adopt the proclamation denoting April as “Month of the Young Child.”
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
COURTHOUSE WATERPROOFING BID AWARD
 
County Manager Nelson presented two bid proposals for waterproofing of the Courthouse, particularly the addition that was completed in 1983. ABG Caulking Contractors, Inc., located in Morristown, TN, submitted a proposal for $41,600. Southern Paint and Waterproofing Company, Inc., located in Greensboro, NC, submitted a proposal for $32,834. County Manager Nelson stated that this was a planned project and available funds existed in the Maintenance Department budget.
 
            Commissioner Kinsey, seconded by Vice-Chairman Winkler, moved to award the bid to Southern Paint and Waterproofing Co., Inc. in the amount of $32,834.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
PLANNING AND INSPECTIONS MATTERS
 
A.        Out-of-State Travel Request – Mr. Joe Furman requested out-of-state travel for Mr. Paul Buchanan, Fire Inspector, to travel to the National Fire Academy in Emmitsburg, Maryland. Lodging was to be provided on the campus of the Academy and FEMA was to reimburse $330 in travel costs. The County’s cost was for a meal ticket and Mr. Buchanan’s time. The training was necessary to allow the discharge of the duties of a fire inspector.
 
            Commissioner Kinsey, seconded by Commissioner Moretz, moved to approve the out-of-state travel request for Mr. Paul Buchanan as presented.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            B.         Brookshire Park Streambank Restoration Project Bid Award – Mr. Furman reviewed bids that were received for the restoration project which involved the New River where it flowed through the County-owned Brookshire Park. The following bids were received:  Appalachian Environmental in the amount of $269,899.90; Adams Contracting in the amount of $238,725.00; J. W. Hampton Company in the amount of $183,719.00; Insite Development in the amount of $175,980.00; Blue Ridge Grading in the amount of $167,135.00; and Phillips & Jordan in the amount of $179,275.50.
 
Mr. Furman stated that the project was funded by grant funds. The low bidder was Blue Ridge Grading with a bid of $167,135 for approximately 517 feet of channel restoration. As this amount exceeded available funds, staff value engineered the project and reduced the overall recommended contract to $100,714.
 
            Vice-Chairman Winkler, seconded by Commissioner Kinsey, moved to award the bid to Blue Ridge Grading in the amount of $100,714 as value engineered by staff and execute the contract, contingent upon the County Attorney’s review.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
BUDGET AMENDMENTS
 
Ms. Doris Isaacs presented the following budget amendments for Board approval:
 
            Account #                    Description                                                           Debit             Credit
145480-438800           Crisis Intervention Payment                              $44,392
143531-323000           Administrative Cost Reimbursement                                        $44,392
 
            The amendment recognized additional revenue from NC Department of Health and Human Resources for the Crisis Intervention Program.
 
            Account #                    Description                                                           Debit             Credit
103414-341422           Passport Processing Fees                                                       $17,389
104142-412100           Salaries-Regular                                              $12,588
104142-418100           Social Security Contributions                                $961
104142-418200           Retirement Contributions                                       $603
104142-418300           Hospital Insurance Expense                               $2,377
104142-418600           Workers Compensation Expense                            $52
104142-418900           Deferred Compensation                                        $628
104142-418901           Other Fringe/$30/month                                        $180
 
            The amendment recognized projected revenue from passport processing and the appropriation of funds for additional personnel expenses.
 
            Account #                    Description                                                           Debit             Credit
103991-399101           Fund Balance Approp.-New                                             $2,430,634
109800-498043           Trans. to School Cap. Proj. Fund               $2,430,634
433980-398010           Transfer from Gen. Fund                                                   $2,430,634
435911-458000           Capital Outlay-Bldg. & Improve.                $2,430,634
 
            At the December 20, 2007, Board of Commissioners’ meeting, contracts were awarded for the early steel and concrete package for the new WHS project. These expenditures are funded by an appropriation from the General Fund’s fund balance. The General Fund is to be reimbursed upon the completion of the financing for the project.
 
 
            Account #                    Description                                                           Debit             Credit
219800-498010           Transfer to the Gen. Fund                              $354,577
213991-399101           Fund Bal. Approp.-New                                                      $354,577
103991-399101           Fund Bal. Approp.-New                                                      $336,401
103980-398121           Transfer from Cap. Reserve                                                 $354,577
105921-463001           CCC&TI Site Work                                      $690,978
 
            At the December 3, 2007, meeting, the Board of Commissioners approved funding for cost overruns of $690,978 on the CCC&TI vocational education building. Funds available ($354,577) in the Capital Reserve fund were not sufficient. The Board approved additional funds to be advanced from the General Fund’s fund balance to be repaid from allocations to the CIP for CCC&TI.
 
            Account #                    Description                                                           Debit             Credit
103991-399101           Fund Balance Approp.-New                                                  $82,388
109800-498043           Transfer to School Cap. Proj. Fund                 $82,388
433980-398010           Transfer from Gen. Fund                                                        $82,388
435911-469199           Professional Services-Other                             $82,388
 
            The amendment transferred funding from the General Fund’s fund balance for required permits from the Town of Boone for the new WHS. This funding was approved at the February 19, 2008, Board meeting. The General Fund was to be reimbursed upon the completion of the financing for the project.
 
            Commissioner Kinsey, seconded by Commissioner Moretz, moved to approve the budget amendments as presented.
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
MISCELLANEOUS ADMINISTRATIVE MATTERS
 
A.                 Proposed Hazardous Materials Emergency Planning Grant Agreement – County Manager Nelson stated that, each year, the State of North Carolina Department of Crime Control and Public Safety provided $5,000 in grant funding to the County Department of Emergency Management for training activities with no local match required.
 
Vice-Chairman Winkler, seconded by Commissioner Kinsey, moved to approve the grant application in the amount of $5,000.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
B.                 Proposed Memorandum of Understanding for the High Country RPO – County Manager Nelson stated that the High Country Rural Transportation Planning Organization (RPO) was a group that supported and provided input into planning for road improvements in the High Country region. The County Manager reviewed a proposed updated Memorandum of Understanding, specifying the roles and responsibilities of the RPO.
 
Commissioner Kinsey, seconded by Commissioner Moretz, moved to approve the Memorandum of Understanding as presented.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            C.        School Board Request for Site Preparation Assistance – County Manager Nelson stated that, every few years, the High School Vocational Department constructed a house as an educational opportunity for various classes. Once the house was completed, it was sold via public auction. The County Manager stated that the Board of Education had requested that the Watauga County Sanitation Department provide the excavation and preparation of a site for this year’s planned construction.
 
Vice-Chairman Winkler, seconded by Commissioner Moretz, moved to approve the High School’s request for the Sanitation Department’s help in excavation and site preparation for their upcoming house construction.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
D.        Boards and Commissions – County Manager Nelson stated that, at the last meeting, two names were presented from the Town of Boone for nominations to fill the position as the Town’s representative on the Watauga County Recreation Commission. Staff had mis-stated that there was one position on that Board which represented the Town and, therefore, only one was voted on. Since that meeting, the staff learned that there were in fact two positions open and the nomination for the remaining position was Mr. David Koppenhaver.
 
            Commissioner Moretz, seconded by Vice-Chairman Winkler, moved to appoint Mr. David Koppenhaver to the Watauga County Recreation Commission as a representative of the Town of Boone.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
E.         Announcements – County Manager Nelson announced that the NCACC District Meeting for Watauga County was scheduled for Wednesday, April 23, 2008, in Wilkesboro.
 
County Manager Nelson announced that the NCACC was hosting a Transportation Summit on April 15, 2008; Sustainable Energy Conference on April 8-9; and a Water Resources Conference on May 22.
County Manager Nelson announced that W.A.M.Y. Community Action had requested a County representative be present at their March 25, 2008, meeting in Crossnore to discuss the proposal which was forwarded to them last year regarding the space currently provided to them and subsequently subleased at the Western Watauga Community Center.
 
Due to scheduling conflicts and by consensus, the Board directed the County Manager to attend W.A.M.Y. Community Action’s meeting on March 25, 2008, as their representative.
 
County Manager Nelson announced that the first meeting of the Board in April had been cancelled and the second meeting was rescheduled to Monday, April 14, 2008, at 6:00 P.M.
 
County Manager Nelson announced that Scott Hildebran, Blowing Rock’s Town Manager, had given him the following potential dates for a joint meeting with the Towns of Blowing Rock and Boone; Watauga County; and Appalachian State University: Monday, April 14, 2008; Wednesday, April 16, 2008; and Monday, April 28, 2008, with the meeting beginning at 4:00 P.M. on either date.
 
By consensus, the Board agreed to the Monday, April 28, 2008, date at 4:00 P.M. and directed the County Manager to inform Mr. Hildebran.
 
PUBLIC COMMENT
 
            There was no public comment.
 
CLOSED SESSION
 
            At 7:25 P.M.,  Vice-Chairman Winkler, seconded by Commissioner Moretz, moved to enter Closed Session to discuss Attorney/Client Matters, per G. S. 143-318.11(a)(3) and Economic Development Matters, per G. S. 143-318.11(a)(4).
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
 
            Vice-Chairman Winkler, seconded by Commissioner Moretz, moved to resume the open meeting at 8:05 P.M.
 
VOTE:   Aye-4(Deal, Winkler, Kinsey, Moretz)
              Nay-0
              Absent-1(Cooper)
ADJOURN
 
            The Chairman adjourned the meeting at 8:05 P.M.
 
 
 
Jim Deal, Chairman
 
ATTEST:                                                                                
Anita J. Fogle, Clerk to the Board