SUBJECT:Minutes of Regular Meeting, 1/16/18

DATE:1/17/18FILE NO: DATE276

TO:Cherokee County Council

SUBJECT:Minutes of Regular Meeting, 1/16/18

There was a Regular Meeting of County Council Tuesday, 1/16/18, 5 PM in Council Chambers. Chairman Tim Spencer presided with David Smith leading in prayer. Council present: Tim Spencer, David Smith, Mike Fowlkes, Tracy McDaniel & Quay Little. Council absent: Charles Mathis & Lyman Dawkins. Administrator Belue, Attorneys Jim Thompson & Joe Mathis and Clerk Doris Pearson were present. The news media was informed by agenda and in compliance with the SCFOIA and 1 was present. There were around 25 visitors.

Councilman Tracy McDaniel made the motion to adopt the agenda of 1/16/18 as received and posted in compliance with the SCFOIA. Mike Fowlkes seconded and council voted in favor.

Councilman Quay Little made the motion to approve the minutes of the Public Hearing & Regular Meeting of 1/2/18; Special Call Meetings of 1/4/18, 1/9/18 & 1/11/18 as received in the agenda package. Mike Fowlkes seconded and council voted in favor.

KNOW2 Interim Administrator Heather Swayngim introduced herself to council. She reported that the KNOW2 Banquet for the OSCARS will be 3/1/18 with a 50’ish Style Black Tie optional event to be held at the Broad River Electric Co-Op. Lib Ivey will be the recipient of the OSCAR and Julie Fowler will be the Mistress of Ceremony.

CPA McAbee, Schwartz, Halliday & Co. Comprehensive Annual Financial Report (CAFR) year ended 6/30/17. Stan Halliday commended council, Administration & the Finance Dept. for a great financial statement. He outlined the Auditor’s Communication Letter and asked council to be sure and read it in full. In the CAFR on Page 8-9 is your independent auditor’s report which lets you know what we did; page 10 is the Management’s discussion & analysis; page 14 & 15 is your government wide financial analysis; Page 21 is your balance sheet which is one of the strongest around at 106% and if things go south for you, you have the funds to weather through the storm; page 61 is your general fund – your Administrator & Finance Dept. did a good job setting this budget. In my recommendation report five years ago we recommended you hire a Finance Director which you did and that was a very position move in the right direction. Not all transfers from the Treasurer to the Finance Dept. have been done and I encourage you not to let that linger, but to continue to go forward and make these transfers. I know they had a staffing issue to get things to the Finance Dept. in a timely manner but there were deposits that were not made on time; penalties on payroll taxes; etc. so I hope council will continue to go forward with transferring all accounts to the Finance Dept. I just want to say thank you to Holland & his staff, Ann Boggs & her staff and Jackie & her staff in helping us get this report completed. County Administrator Holland Beluereferred to Page 62 – general fund budgetary comparison schedule – if you look at the 3rd column up from the bottom under the net change in fund balance: 3rd & 4th column – in 2017 FYB you finished $786,397 excess revenues over actual expenses which is the reality number of

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how we actually do your operating budget. Roughly $1 million of that was transferred from LOST from the 2017 receipts so FY 2017 was the 1st time since we implemented the LOST that you had to spend any money from it. You spent $214,165 from LOST. You are a very strong positioned county and always have been and will continue to be so as long as you continue to operate the county as you have in the past. The reason you went in for $214,000 LOST is because you spent $462,841.89 to acquire land for the purchase of the VA Nursing Home to be built in Cherokee County; you partnered with the Recreation District to put up lights at the Ford Complex for a total cost of $331,918.84 which these two capital projects cost $762,760.73 which came from you contingency fund which is funded by LOST. If you take those two capital fund projects out of your general budget; your general fund revenue excluding all exceeded expenses exceeded by $578,595.73. So Cherokee County performed $578,000 better than we anticipated. You budgeted for $2,314,000 from LOST to be expended in 2017 FY and we anticipated that we would probably spend $700,000 but even with these projects you only spend $214,000. As a credit to council, to procurement, Finance Dept. and all Dept. Heads you were able to bring this budget in even better than our best projection of over ½ million dollars better including spending $792,000 for capital projects. This is a testament of what you can do and your fiscal opportunity is stronger than it has ever been. You still are putting money in the bank. Your 2018 FYB will be different because your salaries are different; you will spend a little more of that money. You are following the same trends this year as you did last year. I feel you will continue to be a very strong in making strong financial decision for the best interest of this county. I do caution you about your fund balance. You have roughly $13 million from the sale of Peachtree Centre between the acquisition cost, revenues, bank accounts, etc. When you spend this one time money, it does not regenerate itself so continue to be cautious with that mindful act. I hope you can continue to work together to support the Finance Dept. so that you can get this audit report by Oct., Nov., & Dec. opposed to Jan. & Feb.

Administrator Holland Belue presented a three-party grant agreement with Cherokee County, SC Dept. of Commerce and ACE Bakery for $100,000 to go toward site preparation & building construction for the expansion of ACE Bakery. [Tracy McDaniel made the motion to approve Administrator Belue & Chair Spencer to execute the documents in accordance with the contract between Cherokee Co., SCDOC & ACE Bakery for $100,000. Mike Fowlkes seconded and council voted in favor.]

Administrator Holland Belue reminded council that their trail balance was in their agenda pkg. for Dec., 2017. Ann has prepared her staff so they can continue to give you this report in the 2nd council meeting of every month.

Administrator Holland Belue stated with the upcoming winter storm alert I will continue to make the decision on the closing of county buildings if necessary if council so chooses to allow me to do that. Chair Spencer replied that will be fine with council.

Development Board Deputy Director Ken Moon requested council to go into Executive Session for the purpose of discussion of matters relating to future proposed locations, expansions or provision

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of services including locations and expansions of industries or other businesses in the area served by a public body specially Project Peach. [Mike Fowlkes made the motion to go into Executive Session for this purpose. Tracy McDaniel seconded and council voted in favor and went into executive session at 5:33 pm.]

Councilman Quay Little made the motion for council to come out of Executive Session at 6:11 PM. Tracy McDaniel seconded and council voted in favor. Attorney Joe Mathis stated for the record that no vote or action was taken by council during executive session.

Councilman Mike Fowlkes made the motion to pass the 1st Reading of Ordinance No. 2018-01 authorizing & approving 1) development of a Joint County Industrial & Business Park pursuant to Section 4-1-170 of the Code of Laws of SC 1976, as amended, in conjunction with Spartanburg County (the “Park”), such park to be, at the time of its initial development, geographically located in Cherokee County and to include certain property owned and/or operated by a Company identified for time being as PROJECT EIGHTY-ONE, or one or more of its affiliates or other related companies; 2) the execution & delivery of a Written Park Agreement with Spartanburg County as to the requirement of payments of a Fee in Lieu of Ad Valorem Taxes with respect to park property and the sharing of the revenues and expenses of the Park; 3) the distribution of Revenues from the Park within Cherokee County; and 4) other matters related thereto. Quay Little seconded and council voted in favor.

Appalachian Council of Governments Director Steve Pelissier & Chip Bentley presented the advertisement for County Administrator & Finance Director. The County advertisement will go on the county web page with a little less info but with a link to a full job description; and the other is a little longer & wordy which will be one that we will work with council to send to several professional organizations such as SCAC, ICMA, Municipal Associations throughout NC, SC Finance Director’s Asso., etc.

Councilman Mike Fowlkes made the motion to allow ACOG upon their recommendation to advertise for the County Administrator’s position. Tracy McDaniel seconded and council voted in favor.

Councilman Mike Fowlkes made the motion to allow ACOG upon their recommendation to advertise for the Cherokee County Finance Director’s position. Tracy McDaniel seconded and council voted in favor.

Councilman Quay Little made the motion to un-appoint Ann Boggs as the Cherokee Co. Economic Development Corp. Treasurer effective 1/24/18. Tracy McDaniel seconded and council votedin favor.

Councilman Mike Fowlkes made the motion to name Billy Dean Blanton as Interim County Administrator effective 1/16/18 with the salary of $52,000/year @ $1,000/week beginning 1/22/18. Quay Little seconded and council voted in favor.

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Administrator Holland Belue stated effective immediately upon by departure as County Administrator on Friday, 1/19/18, 5 PM, that Interim Admin. Billy Blanton will be assigned the Cherokee Co. Administrator’s vehicle so he can perform the duties associated with his position. I will work with Mr. Blanton to get him a smart phone assigned asap.

Councilman David Smith re-appointed Gayle Phillips to serve another term on the Cherokee Co. Alcohol & Drug Abuse Board. Tracy McDaniel seconded and council voted in favor.

Councilman Tracy McDaniel made the motion to pay the claims for Cherokee Co. in the amount of $189,274.44. Mike Fowlkes seconded and council voted in favor.

Administrator Holland Belue announced that in light of the recent weather winter storm forecast, I officially close the county administration offices to the public for Wed., 1/17/18. [Quay Little made the motion to do so. Mike Fowlkes seconded and council voted in favor.]

As there was no other business to come before council at this time, Chairman Tim Spencer adjourned the meeting at 6:20 PM.

APPROVED: 2/5/18Respectfully submitted,

BY ITS CHAIRMAN: Tim SpencerDoris F. Pearson, Clerk to Council