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JUNE 6, 2011

Catawba County Board of Commissioners Meeting
Monday, June 6, 2011, 9:30 a.m.
Robert E. Hibbitts Meeting Room, 1924 Courthouse
30 North College Avenue, Newton, NC

1. Call to Order.

2. Pledge of Allegiance to the Flag.

3. Invocation.

4. Approval of the minutes from the Regular Meeting of May 16, 2011.

5. Recognition of Special Guests.

6. Public Comment for Items Not on the Agenda.

7. Presentation:

Catawba County Spirit Award Presented to Ned Jarrett.

8. Appointments.

9. Consent Agenda:

a. Catawba County Schools Transportation Office Expansion Budget Transfer.

b. Travel Policy for Alcoholic Beverage Control Board.

10. Departmental Report:

Economic Development Corporation:

Expansion Project for Dalco Nonwovens. Presented by Nathan Huret, Catawba County Economic Development Corporation.

11. Other Items of Business.

Adoption of the Catawba County Annual Budget for Fiscal Year 2011-12.

12. Attorneys’ Report.

Assignment of County’s Bid at Tax Foreclosure Sale. Presented by County Attorney Debra Bechtel.

13. Manager’s Report.

14. Adjournment

PERSONS WITH DISABILITIES: Individuals needing assistance should contact the County Clerk at 465-8990 within a reasonable time prior to the meeting. Access to the 1924 Courthouse for individuals with disabilities is at the south side (“A” Street). The elevator is located at the north end of the building. Participation in public meetings is without regard to race, creed, religion, national origin, sex, age, color, or disability.

INFOTALK/INTERNET: The Catawba County Telephone Information System will allow you to use your touch tone telephone to obtain current information on Catawba County 24 hours a day. Information is updated on a regular basis. Dial 465-8468 and INFOTALK will direct your questions with easy to understand instructions. Reach Catawba County on the Internet at

The next Board of Commissioners meeting will take place on Monday, June 20, 2011 at 7:00 p.m.

MONDAY, JUNE 6, 2011, 9:30 A.M.

The Catawba County Board of Commissioners will adopt a fiscal year 2011-2012 County budget, and consider approval of a proposed economic incentives agreement with Dalco Nonwovens, which is planning an expansion of its Conover facility that would retain 33 jobs, create 19 new jobs and bring $9 million in new investment to the county, when the Board meets at 9:30 a.m. on Monday, June 6, 2011, in the Robert E. Hibbitts Meeting Room of the 1924 Courthouse, at 30 North College Avenue in Newton.

The Board will also present the Catawba County Spirit Award to Mr. Ned Jarrett in recognition of his being inducted into the NASCAR Hall of Fame and his steadfast commitment to his home county and family, including his giving limitless hours to numerous community organizations and efforts. The Board will consider a proposed transfer of funds, already budgeted to the Catawba County Schools, to fund a needed expansion to the system’s transportation office; a recommended travel policy for the Alcoholic Beverage Control Board; and a resolution authorizing the Board’s Chairperson to execute an Assignment of a County tax foreclosure bid.

The Board will present its highest honor, the Catawba County Spirit Award, to Mr. Ned Jarrett in recognition of his having been inducted into the NASCAR Hall of Fame on May 23 and for his commitment to the support and betterment of the community. Mr. Jarrett won two NASCAR Premier Series championships, two Sportsman Division championships and 50 Premier Series races, with a graciousness that so fittingly christened him “Gentleman Ned”. After retiring from driving, he became the “voice of racing” as a television and radio broadcaster. Throughout his years in the racing world, Mr. Jarrett remained steadfastly committed to home and family. He has given limitless hours to numerous community efforts including his role as Honorary Chairman of the Greater Hickory Classic Golf Tournament and the Mental Health Fund Capital Campaign, and as an active volunteer and supporter of the Palliative Care Center & Hospice of Catawba Valley. The Award says, “He has been selfless and generous with both his time and resources and reflects the highest standard by which any true commitment to others should be measured.”

A. The Board will consider a request from the Catawba County Schools for the transfer of $25,000 remaining in the budget for a completed storage facility to a new project to build a needed expansion to the system’s Transportation Office. The Catawba County Schools Transportation Department has assumed routing responsibility for the other two school systems over the past two years. Consolidating the routing of buses saves money through more efficient scheduling. While the County Schools has provided the actual transportation, each school system had been doing its own routing. In order to provide this service, additional office space is needed for personnel assigned to the Transportation Information Management System routing for buses. These funds will be used to expand the existing office space from roughly 8 x 8 square feet to 14 x 14 square feet and add handicap ramps. The County Schools has requested to use funds remaining in a Storage Facility Maintenance Project to fund this office space expansion. The County funded $180,000 in Fiscal Year 2009/10 to purchase and set up a metal storage building for Catawba County Schools Maintenance. The system was able to obtain a less expensive structure and save money on the project by having in-house staff perform the set-up and electrical work. The Board’s Finance and Personnel Subcommittee recommends the Board approve this budget transfer.

B. The Board will consider a proposed Travel Policy for the Alcoholic Beverage Control Board. The Catawba County Alcoholic Beverage Control (ABC) Board has requested that the Board of Commissioners approve the ABC Board’s Travel Policy, which has been approved by the Catawba County ABC Board. The North Carolina Alcoholic Beverage Control Commission now requires that the Catawba County Alcoholic Beverage Control Board provide proof that its appointing authority has approved its travel policy. The ABC Board developed its policy after reviewing the County Code and a review of the proposed policy shows it very closely mirrors that of the County’s. The Board’s Policy and Public Works Subcommittee recommends the Board of Commissioners approve the ABC Board’s Travel Policy.

The Board will consider a proposed economic incentives agreement with Dalco Nonwovens, which is considering a $9 million expansion at its existing manufacturing facility in Conover, which would retain 33 existing jobs and create 19 new jobs. Dalco Nonwovens needs to double its productive capabilities to supply growing demand from a diverse array of markets, including geotechnical, automotive, furnishings, industrial and agricultural. Even while operating 24 hours/7 days a week with four shifts, Dalco declines sizable opportunities daily due to limited production capacity. The company’s expansion would double its productive output, investing approximately $7.3 million to purchase a new nonwovens production line and an additional $1.7 million for construction of 55,000 square feet of manufacturing and warehousing space and an expanded office. The average wage, including the 19 new positions, will exceed the average Catawba County wage of $658 per week or $34,216 annually.

Based on the condition of a total new investment of $9 million, the retention of 33 existing employees and the creation of 19 new jobs, Dalco Nonwovens’ enrollment and participation in the Education Matters program, and adhering to all North Carolina general statutes, a County incentive could be in the form of a performance based grant with a maximum payment of $19,260 per year for 3 years (for a total maximum incentive of $57,780) upon approval of a contract and the satisfaction of conditions of that contract. This amount was derived by determining the guaranteed investment and subsequent income stream to the County over a three year period and multiplying that figure by 40%. The ad valorem tax receipts on $9 million equal $144,450 over three years. This investment will net a positive payback to the County immediately, similar to paybacks used to determine grant involvement in other County projects. As with all incentives provided by the County, these incentives will be based on a contractual performance agreement which requires Dalco Nonwovens to meet minimum thresholds of investment and job creation each year prior to incentive payment by the County. The agreement requires repayment should the investment and/or job creation amounts not be sustained.

The Board will adopt a Fiscal Year 2011-2012 County Budget. The recommended budget reduces the property tax rate by one half cent to 53 cents per $100 of property valuation. Over the last four years, County budget reductions now total $10.5 million and have impacted 100 positions or 9% of the workforce. For the third year in a row, reductions are made to County spending, impacting 34 positions, helping to reduce the County budget by 2.86%. Expenses in County departments are reduced by $1.75 million, no new County programs are recommended, funding for future water and sewer projects is reduced by $1.55 million, and $1.55 million in funds for future school construction projects would be diverted to maintain public school and community college operating funds.

The Board will consider a resolution authorizing its Chair, Kitty Barnes, to execute an assignment of a County tax foreclosure bid to Mr. Salvatore Matthew Toscano. On May 17, 2011, a tax foreclosure sale was held for parcel 3741-14-34-0489, further identified as 415 East 26th Street, Newton. There were no other bidders present and Catawba County was the last and highest bidder in the amount of $4,500. North Carolina General Statute 105-376(a) authorizes the County to assign its bid at any time by private sale for not less than the amount of the bid once the upset period has closed. The upset bid period for this parcel ended on May 27, 2011, and no upset bids were filed. Mr. Salvatore Matthew Toscano is interested in having the County’s bid assigned to him for the full bid price of $4,500. Mr. Toscano’s payment will cover all back taxes and costs expended by the County in the foreclosure process and put the property back on the County tax rolls.