Draft

March 24, 2003

The Alexander County Board of Commissioners held a Special Called Meeting on Monday, March 24, 2003 in the Commissioners’ Room of the Alexander County Courthouse, Taylorsville, North Carolina.

Chairman Robertson called the meeting to order at 6:00 PM.

Commissioner Odom gave the invocation and Jake Morris, grandson of Commissioner Bolick, led the Pledge of Allegiance to the Flag.

ADOPTION OF AGENDA

Chairman Robertson informed the Board that Commissioner Hammer had some comments to be made during Other Business. Chairman Robertson also requested recognition and praise of our troops during Other Business.

Commissioner Hammer made a motion to adopt the agenda as amended. Commissioner Keever seconded the motion. The Board voted unanimously in favor of the motion.

Chairman Robertson stated that the Board, in accordance with the requirements for the application for the Rural Center grant, would hold 3 meetings. The first meeting as the Alexander County Board of Commissioners to conduct the public hearing for the Bethlehem Sewer District. The second meeting as the Alexander County Board of Commissioners to create the sewer district and the rate structure. The third meeting as the Bethlehem Sewer District Board of Directors to approve the Resolution Authorizing the Unsewered Communities Grant Application, the Resolution Creating and Establishing a Capital Reserve Fund, the Resolution Adopting the Water Conservation Plan, and the Resolution adopting the CIP.

Andy Lovingood, P.E. McGill Associates, presented a map which showed the boundaries for the proposed Bethlehem Sewer District. Mr. Lovingood stated that the boundaries were established based on the need for sewer, information provided by County and Health Department staff, and guidelines required for the Rural Center funding.

Mr. Lovingood stated that the Rural Center required the proposed area to be under the 90% national average for medium household income and he noted that the proposed district was at 89.3%. Mr. Lovingood also noted that the Rural Center required the proposed area to have a population of less than 5,000. The proposed district has a population of approximately 1,723. Mr. Lovingood mentioned that the lower Rink Dam Road area was part of the Hickory Urban Area which was ineligible to benefit from the project and was therefore not included in the proposed district.

Mr. Lovingood stated that staff completed 75 onsite surveys and found many failing septic system caused by shallow soils, rock, sloped properties, older homes with more usage, etc. Chairman Robertson asked exactly how many failing systems staff found. Mike Apke, P.E. McGill Associates, replied that staff located 7 failing systems and 2 systems that were questionable. Mr. Apke also noted that staff had spoken with 22 property owners who stated that they had had periodic problems with their septic systems.

Mr. Lovingood informed the Board that Alexander County would be applying for the $3 million Rural Center grant which would require a 10.1% match. This grant would pay for Phase I of the Bethlehem sewer project which would result in a main trunk line structure, or the foundation, of the entire project. Phase II and Phase II will be completed at a later date as funds are available.

Chairman Robertson called the public hearing to order and requested any public comment.

Public Comment

Leo Knode stated that he moved into a new house in Fairfield Acres off Ritchey Road in 1968. After one month, he had to have a new septic tank installed and has had to install yet another septic tank since that time. Mr. Knode stated that, due to continual problems, he was going to have to put in one more very soon. Mr. Knode also noted that everyone in the neighborhood had also had to have new septic tanks installed over the years.

Mr. Lovingood noted that Mr. Knode’s property was in the Phase II portion of the sewer project.

Commissioner Bolick projected a time line of 8 to 10 years to complete the entire sewer system. Mr. Lovingood agreed.

There being no further public comment, Commissioner Odom made a motion to close the public hearing. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Keever made a motion to adjourn from the first of 3 meetings for the Bethlehem Sewer District at 6:22 PM and to immediately reconvene in the second meeting. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

W. Darrell Robertson, Chairman         Jamie C. Millsaps, Clerk to the Board

Draft

March 24, 2003

The Alexander County Board of Commissioners held the second part of the Special Called Meeting at 6:23 PM on Monday, March 24, 2003 in the Commissioners’ Room of the Alexander County Courthouse, Taylorsville, North Carolina.

Chairman Robertson presented the Resolution to Create the Bethlehem Sewer District and proposed sewer rates which included $4.00 per thousand gallons and a $21.50 minimum fixed charge.

The Board agreed to serve as the Bethlehem Sewer District Board of Directors.

Commissioner Bolick made a motion to approve the Resolution to Create the Bethlehem Sewer District and the Rate Structure as proposed. Commissioner Keever seconded the motion. The Board voted unanimously in favor of the motion.

Rick French, County Manager, recommended that the Board move forward with the purchase of 1 million gallons of water capacity in the City of Hickory water plant. Mr. French stated that Martin Reidinger, Attorney from Asheville, and staff was working on the draft agreements for EnergyUnited and the Town of Taylorsville.

Mr. French discussed the draft agreement between Alexander County and the City of Hickory which included a payment schedule of 25 years at 5% interest. Mr. French also distributed an amortization schedule which was based on information received from the City of Hickory. The cost of capacity is $1.52 per gallon and the deadline for the purchase is April 1, 2003.

Commissioner Odom asked what the residential rate would be adjusted to. Mr. French replied that the residential rate would change in July 2003 and would depend on actions of the bulk customers (how much water purchased and at what rate).

Commissioner Keever made a motion to approve the purchase of 1 million gallons of capacity in the City of Hickory water plant. Commissioner Hammer seconded the motion. The Board voted 4 in favor of the motion (Commissioners Bolick, Hammer, Keever, and Robertson) and one against the motion (Commissioner Odom). The motion carried.

Jennifer Herman, Finance Officer, discussed the status of the 2002-2003 budget as of February 28, 2003 which included the following information:

1. As of February 28, 2003, 67% of the budget year has elapsed. The County has collected 77% of the budgeted General Fund revenues mainly due to property tax collections from December 2002 and January 2003. Approximately 61% of the budgeted General Fund expenditures have been spent. Ms. Herman stated that there were only a few departments that had exceeded the 67% mark for the budget year.
2. The Solid Waste fund has collected 76% of revenues budgeted and has spent 67% of the expenses budgeted. The year-to-date net income is currently at $113,000 mainly due to a timber sale that brought in $110,000. Ms. Herman projected the end-of-year income for the Solid Waste fund to total $125,000.
3. The sales tax collections, including the collections for the quarters which ended in September 2002 and December 2002, are up almost 8% from the same time last year. The sales tax collections for the first 2 quarters of this year are higher than the average for the last 3 years. The one-cent sales tax collections, which should be at 50%, are at almost 60%. The first and second half-cent sales taxes are at a collection rate of almost 50%. The third half-cent sales tax, enacted in October 2002, should be at a collection rate of 14% but is only at 6.46%. Ms. Herman explained that this low collection rate was due to the fact that this was a new sales tax that was just getting started. Ms. Herman stated that staff would have a better indicator with the May distribution in regard to what to expect with quarterly distributions of the third half-cent sales tax. Ms. Herman noted that the Board had budgeted $580,000 in Contingency for this sales tax.
4. The County has spent approximately 59% of amount budgeted for Medicaid which is a good figure considering that 67% of the budget has elapsed. Ms. Herman informed the Board that she had spoken to Karen Hoyle, DSS Director, who projected that Medicaid expenses would be under budget by approximately $200,000 for this budget year. Luther Stocks, Tax Administrator, has projected that tax collections would be at approximately $200,000 more than what budgeted. Ms. Herman stated that these funds would be added to the Fund Balance. The projection for the unreserved Fund Balance as of June 30, 2003 is $1,354,000 which would be at 5.8% of the budget. Ms. Herman stated that the County would have to save an additional $46,000 to bring the unreserved Fund Balance up to 6% and $513,000 to bring the unreserved Fund Balance up to 8%.

Commissioner Bolick conveyed his appreciation to Ms. Herman, Mr. French, and all County employees for working together during this budget crisis and striving to make the best out of the situation.

The following issues were discussed during Other Business:

1. Rick French, County Manager, stated that an open house was scheduled for April 1, 2003 from 9:00 AM until 10:30 AM to review the newly combined facilities located in the Dayton Office Building. The new facilities include the Alexander County Resource Center and the Division of Community Corrections.
2. Mr. French stated that the NCACC District Meeting for Alexander County would be held on Thursday, April 24, 2003 from 12:00 PM until 3:00 PM in the Burke County Agriculture Building.
3. Mr. French informed the Board that information had been provided in the agenda packets regarding the Duke Power hydro relicensing.
4. Mr. French provided animal control ordinances from Alexander County, Wilkes County, and Caldwell County for the Board’s review. Mr. French stated that the County needed to update the animal control ordinance in the near future.
5. Mr. French discussed the condemnation of a house owned by Janet Moore. According to Robert Campbell, County Attorney, the property was found to be in such a state of disrepair to prevent its occupancy by any person. It has been ordered that no person shall occupy this dwelling. If it is found that a person is entering the premises in violation of this order, possible criminal charges could be filed against the violator. Mr. French stated that the County could file a civil action against those trespassers seeking an injunction against them for trespassing but he noted that this would be very expensive. Mr. French informed the Board that a neighbor to the property had requested that the County demolish the home but he noted that this would also be a very expensive venture because the County would have to pay to have the property demolished up front and then attach it as a lien on the property. Mr. Campbell has suggested that the neighbor institute a civil action if she deems this property a nuisance and handle this matter herself.
6. Chairman Robertson noted that all 100 counties in North Carolina had enacted the recent half-cent sales tax.
7. Commissioner Hammer discussed the ongoing war and he encouraged all citizens to either burn their front porch lights or a small candle in a window to show support and respect for our troops. Commissioner Hammer also encouraged citizens to purchase and fly American flags.

Chairman Robertson suggested placing red, white, and blue ribbons on the flagpole at the courthouse and any other county offices to remind citizens of our troops and their families.

Commissioner Keever asked if there was any special program in place to provide financial need to families of troops on active duty in Iraq. Commissioner Keever felt that the Board should establish a fundraising effort if these families needed financial support and he asked staff to determine if there was a need.

Commissioner Odom made a motion to draft a letter from the Board in support of President George Bush, thanking him for his commitment to the United States of America. Commissioner Keever seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Bolick asked that the letter be placed in the Charlotte Observer as well as The Taylorsville Times.

Commissioner Hammer made a motion to adjourn from the second of 3 meetings for the Bethlehem Sewer District at 6:54 PM and to immediately reconvene in the third meeting as the Bethlehem Sewer District Board of Directors. Commissioner Bolick seconded the motion. The Board voted unanimously in favor of the motion.

W. Darrell Robertson, Chairman         Jamie C. Millsaps, Clerk to the Board

Draft

March 24, 2003

The Bethlehem Sewer District Board of Directors held the third part of the Special Called Meeting at 6:55 PM on Monday, March 24, 2003 in the Commissioners’ Room of the Alexander County Courthouse, Taylorsville, North Carolina.

Chairman Robertson stated that the Board of Directors needed to perform 4 duties during the meeting which included approving the Resolution Authorizing the Unsewered Communities Grant Application, adopting the Resolution Creating and Establishing a Capital Reserve Fund, approving the Resolution Adopting the Water Conservation Plan, and approving the Resolution adopting the CIP.

Commissioner Bolick made a motion to approve the Resolution Authorizing the Unsewered Communities Grant Application. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Bolick made a motion to approve the Resolution Creating and Establishing a Capital Reserve Fund. Commissioner Odom seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Keever made a motion to approve the Resolution Adopting the Water Conservation Plan. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Odom made a motion to approve the Resolution Adopting the Capital Improvement Plan (CIP). Commissioner Bolick seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Keever made a motion to adjourn the meeting of the Bethlehem Sewer District Board of Directors at 6:58 PM. Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

Commissioner Keever made a motion to enter into Closed Session at 6:59 PM to discuss contractual matters pursuant to N.C.G.S. 143-318.11(a)(5). Commissioner Hammer seconded the motion. The Board voted unanimously in favor of the motion.

There being no further business, Commissioner Odom made a motion to adjourn at 7:45 PM. Commissioner Keever seconded the motion. The Board voted unanimously in favor of the motion.

W. Darrell Robertson, Chairman         Jamie C. Millsaps, Clerk to the Board