The Alleghany County Board of Commissioners met in
regular session on Monday, July 16, 2007, at 3:30pm in the Commissioners
Meeting Room of the County Administration Building, 348 South Main Street,
Sparta, North Carolina.

Present:
Chair Ken Richardson, Vice-Chair Warren Taylor, Commissioner Randy
Miller, Commissioner Doug Murphy, Commissioner Milly Richardson, County
Attorney Donna Shumate, County Manager Don Adams
and Clerk to the Board Karen Evans.

Chair Ken Richardson called the meeting to order.

Commissioner Warren Taylor led the Pledge of
Allegiance and opened the meeting with a prayer.

Chair Ken Richardson stated that the Regional Water
Authority Agreement needs to be added to the agenda under county business.

Commissioner Milly Richardson made a motion to
approve the amended agenda for this July 16, 2007, meeting.  Commissioner Randy Miller seconded the
motion.   Vote 5:0.

AGENDA

Monday, July 16, 2007

3:30 PM

3:30                Meeting
Called To Order, Pledge of Allegiance and Prayer

Motion
on Agenda for July 16, 2007, meeting

Motion
on Minutes for July 2, 2007, meeting

Motion
on June’s Tax Releases & Refunds

3:35    A.        Public
Comments—30 minutes

B.        Gary
Wilson

RE:
Benchmark Contract

C.        Mental
Health Annual Report

D.        Board
of Education Annual Report

E.        County
Business

1.
Reimbursement
Resolution

2.
NCACC Annual
Conference Voting Delegate

3.
AIM Contract
with Ashe Social Services

4.
DSS—Adoption
Assistance Budget Amendment

5.
Regional Water
Authority Agreement                        (added)

6.
Other Business

7.
Adjourn

Commissioner
Warren Taylor made a motion to approve the minutes for the July 2, 2007,
meeting.  Commissioner Milly
Richardson seconded the motion.
Vote 5:0.

Commissioner Milly Richardson made a motion
to approve the June Tax Releases and Refunds.  Commissioner Randy Miller seconded the
motion.  Vote 5:0.

Chair Ken Richardson opened the public
comments’ portion of the meeting.
He asked for public comments.
None were received.  He closed the public comments’
portion.

Gary Wilson with Benchmark CMR came before the Board
to discuss the Single-Family Rehabilitation (SFR) Program that Alleghany County
has received.  He explained how
their company provided a proposal to administer the program for Alleghany
County.  He talked about the
rehabilitation work here in the county and his concerns with this project;
availability of contractors and costs restraints.  He explained types of work that can be
performed with these monies.

County Manager Don Adams
presented the proposed project ordinance.
He explained that this puts the program in place.  He reviewed the $200,000 project costs;
$161,000 for rehabilitation, $23,000 for soft costs and $16,000 for
administration.

Commissioner Milly Richardson and Gary Wilson talked
about soft costs that may be associated with the projects and requirements of
people who receive the monies.

County Manager Don Adams
explained that he is requesting the Board allow the Chairman to execute the
final grant agreement, vote on the budget ordinance contingent upon final grant
approval, vote on administrative services contingent upon final grant approval,
vote on the procurement policy contingent upon final grant approval and vote on
the assistance policy contingent upon final grant approval.  He talked about the contract with
Benchmark being $35,335.

Commissioner Doug Murphy and Gary Wilson talked about
using local contractors and having to get certified people for the lead
abatement.

Chair Ken Richardson and Gary Wilson talked about
this is federal monies with no county monies being put into the program.

County Manager Don Adams
reviewed the assistance policy.

Commissioner Milly Richardson made a motion to allow
the Chairman to execute the final grant agreement.  Commissioner Randy Miller seconded the
motion. Vote 5:0.

Commissioner Doug Murphy made a motion to approve the
project budget ordinance in the amount of $200,000 contingent upon final grant
approval.  Commissioner Randy Miller
seconded the motion.  Vote 5:0.

County Manager Don Adams
talked about the agreement with Benchmark is for two years.  He further talked about the work that
will be performed for these monies.

Gary Wilson explained that they can only get 5% of
the money in the beginning and then can only get a percentage of the completed
work as it is done.

Commissioner Warren Taylor made a motion to approve
the Agreement for Administrative Services contingent upon final grant
approval.  Commissioner Randy Miller
seconded the motion.  Vote 5:0.

Commissioner Milly Richardson made a motion to
approve the Assistance Policy contingent upon final grant approval.  Commissioner Randy Miller seconded the
motion.  Vote 5:0.

Commissioner Milly Richardson made a motion to
approve the Code of Conduct contingent upon final grant approval.  Commissioner Warren Taylor seconded the
motion.  Vote 5:0.

Commissioner Warren Taylor made a motion to approve
the resolution giving the County Manager the authority to sign rehabilitation
contracts for the 2007 SFR program.
Commissioner Doug Murphy seconded the motion.  Vote 5:0.

Commissioner Doug Murphy made a motion to approve the
Procurement Policy contingent upon grant approval.  Commissioner Milly Richardson seconded
the motion.  Vote 5:0.

County Manager Don Adams
talked about the County wants to have local contractors bid on these
projects.  He talked about the cycle
of the $300,000 and the $400,000 grants that the County will continue being
involved with.  He reiterated that
if any local contractors are interested to call his office.

Commissioner Doug Murphy and Gary Wilson talked about
advertising in the local paper and contacting licensed contractors to let them
know about these jobs.  Gary Wilson
stated that local contractors will be a priority.

Pam Andrews came before the Board to discuss the
activities for the New River Service Authority (NRSA) and for New River
Behavioral Healthcare (NRBH).  She
talked about Alleghany County joined a multi-county interlocal agreement to
provide mental health services.  She
updated the Board about the actions of the service authority with the
interlocal agreement and about the local NRBH name change to New River Local
Management Entity (New River LME).
She explained the services that these organizations perform.  She further explained that after the
final audit this fall New River LME will officially close and dissolve and then
people will only deal with the New River Service Authority or the Smoky
Mountain LME.  She talked about the
New River Service Authority began offering services in Elkin, Mount Airy and
Statesville and having a 12-month contract.  She reviewed services that are offered
at those three locations.

County Manager Don Adams
asked about the fund balance the issue between New River and Smoky Mountain.

Pam Andrews explained that it was her understanding
that issue was settled at the last meeting.  She stated her appreciation for the
Commissioners.

Sandy Walker came before the Board to present the
annual report for New River Behavioral Healthcare (NRBH).  She gave the Board statistics regarding
services provided by them.  She
reviewed the activities available and programs offered through mental
health.

Dr. Jeff Cox
came before the Commissioners to present the Board of Education’s annual
report.  He provided information
about the recent unofficial test results.
He invited the Commissioners to attend a welcome-back-to-school cookout
on August 1.  He reviewed the
unofficial test results for the school system and individual schools.  He talked about changes that are taking
place at the schools including staff changes.  He further talked about highlights at
each school and system-wide highlights.

County Manager Don Adams
presented a reimbursement resolution regarding the $2,000,000 school capital
funding for all four schools.  He
explained the timing on the QZAB funding.

Dr. Cox talked about having the air conditioners
installed before schools starts at an approximate cost of $100,000.  He further talked about this is included
in the QZAB funding.

Chair Ken Richardson and County Manager Don Adams talked about this resolution allows the
County to use the QZAB loan monies to reimburse the schools for these
costs.

County Manager Don Adams
stated that this type of resolution is not unusual.  He gave examples of prior resolutions.

Commissioner Doug Murphy and Dr. Cox talked about
having a verbal agreement on the QZAB funding and the QZAB information has been
posted on the web site showing the counties that received funding.

County Manager Don Adams
stated that he is concerned about finding a bank that will provide these
services and timing issues with renovating the Piney Creek School gymnasium
where the Local Government Commission requires a formal bid process on those
renovations.  He further stated that
the resolution is for the HVAC project for $100,000 plus small incidentals from
the County like legal fees or Local Government Commission fees associated with
the project.

Commissioner Randy Miller and Dr. Cox talked about
the air-conditioning projects will be in place prior to school beginning.

Commissioner Warren Taylor made a motion to approve
the reimbursement resolution as presented by the County Manager.  Commissioner Randy Miller seconded the
motion.

County Manager Don Adams
stated that the schools are assuming the liability on this.

The Board voted on the motion on the floor.  Vote 5:0.

Dr. Cox and County Manager Don
Adams talked about additional costs will need to come back
before the Board.

County Manager Don Adams
stated that the North Carolina Association of County Commissioners need to have
someone elected as the voting delegate for the annual conference.

Commissioner Milly Richardson made a motion to
appoint Ken Richardson.
Commissioner Warren Taylor seconded the motion.  Vote 5:0.

County Manager Don Adams
presented a contract between Alleghany in Motion and Ashe County Social
Services for transportation services.
He explained the need for the contract.

Commissioner Milly Richardson made a motion to allow
the Chairman to sign these contracts.
Commissioner Warren Taylor seconded the motion.  Vote 5:0.

County Manager Don Adams
presented budget amendment General Fund #1 in the amount of $2,644 for adoption
assistance.

Commissioner Warren Taylor made a motion to approve
budget amendment General Fund #1 in the amount of $2,644.  Commissioner Randy Miller seconded the
motion. Vote 5:0.

County Manager Don Adams
presented the Regional Water Authority Agreement.  He stated that the other entities have
agreed to this Agreement.  He
reviewed the two main changes from when the Board last considered this
Agreement.

Commissioner Warren Taylor talked about how the
County Manager has extensively reviewed this Agreement.  He further talked about the Authority
has an attorney who has worked on this Agreement.

Commissioner Warren Taylor made a motion to approve
the Regional Water Agreement.
Commissioner Doug Murphy seconded the motion.

Commissioner Milly Richardson and County Manager Don Adams talked about the costs for the Town of
Sparta and the Town of Independence.
She further talked about the costs issue for the Town of Sparta.

Commissioner Warren Taylor stated that he thinks the
Town’s officials are looking at future needs.

The Board voted on the motion on the floor.  Vote 4:1 (Milly Richardson).

County Manager Don Adams
mentioned that Alleghany County is now hiring a Planning Director and a
Recreation Director.  He stated that
the job ads are in the Alleghany News.

Chair Ken Richardson presented a letter from the
Library Board recommending Alice Keighton to replace Jonathan Halsey on the
Library Board.

Commissioner Milly Richardson made a motion to
appoint Alice Keighton.
Commissioner Randy Miller seconded the motion.  Vote 5:0.

Commissioner Warren Taylor talked about the
Department of Corrections sending a crew here to help keep the roadsides
clean.  He asked if the County
Manager will send a letter stating the County’s appreciation for their
services.

Commissioner Milly Richardson asked the County
Manager to give the Board an update on a cemetery issue.

County Manager Don Adams
talked about receiving a complaint in April about a cemetery that had been
disturbed off of Pine Swamp Road.
He further talked about his investigations regarding this
complaint.  He reviewed his actions
of sending a letter to the property owner, Rivers Edge Landing, on June 8.  He stated that he continued researching
this cemetery; discovered that this is the Major Joines cemetery and other things
that he discovered.  He further
stated that he discovered that he wasn’t the appropriate person to handle
this complaint.  He read a portion
of NCGS 65-13 that deals with abandoned cemeteries.  He said he turned over all of his
information to the Sheriff’s Department who is researching this
issue.  He talked about the survey
at the Library indicated that nine possible gravesites are still there.  He stated that he isn’t
comfortable quoting what he has heard.
He reviewed facts that he knows and thinks Law Enforcement would be the
more appropriate people to talk to about this incident.

Commissioner Milly Richardson stated that she has
received calls about the Commissioners are trying to sweep this under the
rug.  She further stated that this
is why she brought it up for the County Manager to discuss publicly.

County Manager Don Adams
talked about following the procedures in NCGS 65-13, but it is not this
Board’s responsibility to make sure the procedures are followed and not
to investigate the complaints.  He
advised the Board to wait until the investigation has been completed.

Being
no further business, Commissioner Warren Taylor made a motion to adjourn the
meeting at 5:15pm.  Commissioner
Doug Murphy seconded the motion.
Vote 5:0.

Respectfully Submitted,

Karen Evans

Clerk to the Board

Attest:

Ken Richardson

Chairman

NORTH CAROLINA

ALLEGHANY COUNTY

RESOLUTION

DECLARATION OF
OFFICAL INTENT TO REIMBURSE

BE
IT HEREBY RESOLVED that Alleghany County, North Carolina does hereby adopt the
following declaration (the “Declaration”) of official intent to
reimburse.

This
declaration (the “Declaration”) is made pursuant to the
requirements of the United States Treasury Regulations Section 1.150-2 and is
intended to constitute a Declaration of Official Intent to Reimburse under such
Treasury Regulations Section.

The
undersigned is authorized to declare the official intent of Alleghany County,
North Carolina (the “issuer”) with respect to the matters contained
herein.

1.
Expenditures to
be Incurred.
The Issuer anticipates incurring expenditures (the
“Expenditures”) to renovate Alleghany High School, Glade Creek
Elementary School, Piney Creek Elementary School and Sparta Elementary School
in Alleghany County, North Carolina.

2.
Plan of Finance.  The Issuer intends to finance a portion
of the costs of the Project with proceeds of debt to be issued through
Qualified Zone Academy Bonds and/or through standard installment purchase
contracts, the interest on which is to be excluded from gross income for
Federal income tax purposes (the “Borrowing”).

3.
Maximum
Principal Amount of Debt to be Issued.   The maximum principal amount
of the Borrowing to be incurred by the Issuer to finance the Project is
currently $2,000,000.

4.
Declaration
of Official Intent to Reimburse.  The
Issuer hereby declares its official intent to reimburse itself with the
proceeds of the Borrowing for any of the Expenditures incurred by it prior to
the issuance of the Borrowing.

Adopted
this the 16th day of July, 2007.