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258 The Board of Commissioners for the County of Cabarrus met in recessed regular session in the Multipurpose Room at the Cabarrus County Governmental Center in Concord, North Carolina on Monday, January 14, 2002, at 6:30 p.m. Present - Chairman: Robert M. Freeman Commissioners: Arne L. Fennel Coy C. Privette Richard D. Suggs Absent - Vice Chairman: Robert W. Carruth Als0 present were Frank W. Clifton, Jr., County Manager; Fletcher L. Hartsell, Jr., County Attorney; John Day, Deputy County Manager for Operations; Don Cummings, Human Resources Director; Dawn McHale, Tax Administrator; and Frankie F. Bonds, Clerk to the Board. Chairman Freeman called the meeting to order at 6:35 p.m. Economic Development Corporation Mr. Larry Hinsdale, Chairman of the Cabarrus Economic Development Corporation (EDC) Board of Directors, and the following members of the EDC Board were present for the meeting: Gary Ruth; Tim Foley; Mike Nash; Keith Wayne; and ~Ron Wilson. Also present were Maurice Ewing, President of the EDC, and John Cox, Chief Executive Officer of the Cabarrus Regional Chamber of Commerce. Commissioner Fennel, who also serves as a member of the EDC Board, introduced discussion concerning the EDC, specifically where EDC has been and where it is going. He listed the following three issues for the Board's consideration: (1) County Manager's proposal for the EDC to operate as a separate non-profit corporation and assume responsibility for its financial record keeping and payroll activities effective July 1, 2002; (2) Structure of the EDC Board; and (3) Goal of the EDC. The Board reviewed the structure of the EDC Board that existed in 1994. At that time the County assumed complete funding of the EDC and appointed a. majority 'of the 15-member EDC Board. The EDC expanded its Board in 1998 to include members appointed by each of the municipalities in the county. The EDC is again considering the restructuring of its Board, and 'Commissioner Fennel has been appointed by Mr. Hinsdale to chair a reorganization committee and to bring a recommendation back to the EDC Board for approval. Mr. Hinsdale defined the mission of the EDC as follows: (1) broaden the County's tax base; (2) diversify the County's tax base; and (3) bring more jobs to Cabarrus County. He stated the mission of EDC has remained the same although the structure of the EDC Board has changed during the years. Further, Mr. Hinsdale commented on concerns that have been raised about the operation of EDC as a private entity that spends public funds. Commissioner Fennel addressed the recent Lockwood Greene study that was prepared for the EDC. That study recommended increased spending for economic development and increased efforts to target specific industries to Cabarrus County. In addition, the study recommended that EDC seek private funds to help finance its operation. However, according to Commissioner Fennel, the possibility of obtaining private funds at this time is remote due to the current recession. Mr. Clifton gave a brief overview of the history of the EDC and the relationship between the County and EDC. He discussed concerns regarding the County's role in providing all accounting and payroll functions for EDC, which operates as a non-profit corporation. Mr. Clifton reviewed specific areas of concern involving accounting standards, purchasing regulations and personnel policy. He also discussed the following issues: (1) the County's ownership of the building in which EDC is now located; (2) how to measure the performance of EDC; (3) lack of oversight on EDC expenditures for which the County issues checks; and (4) the lack of EDC policies regarding per diem expenses and use of vehicle for personal use. Commissioner Fennel reviewed an email from Vice Chairman Carruth, who could not be present at the meeting, questioning the overall costs of operating the EDC independently as proposed by the County Manager. In his email, Vice Chairman Carruth proposed that the Board look at the future of the EDC over a period of two years with the possibility of the business community, as represented by the Chamber of Commerce, becoming a financial partner and providing 50 percent of the funding for the organization. In the interim, he proposed that the County freeze EDC funding at the current rates