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<br />Below I have a cppy of a letter from Dr. N. P, Zarzar and Pat. Webb. 1 think we are
<br />all aware of what is said. It said this award is made with the understanding that
<br />561,765.OD, of local match has been se:t aside tp match State funds and it goes on to
<br />congratulate the staff, the Area Board, and the Commissioners for setting aside this
<br />money, of course, all of you, I think, are familiar with what is in the letter. I'll
<br />read it if anybody would like. Then copied from the Minutes of the Orange-Person-Chatham
<br />Mental Health Area Hoard on December 1Dth of 1975, the letter of approval came on December
<br />2nd. On December 10, Mr. Lewis reported that approval had been granted tp proceed with
<br />the renovation of the Northside School property. He asked that a committee be designated
<br />to determine the contribution from each of the counties involved. That was after the
<br />Grant had been awarded. Then, of course, he names a committee, and I would like to say
<br />to the North Carolina Division of Mental Health Services, in my opinion, that the pro-
<br />cedural guidelines set out by the North Carolina Division of Mental Health Services has
<br />been violated and in my possessior_, I have a copy bf the Procedural Guidelines; also I
<br />have in my possession, a copy of the formal application and under Facilities Information,
<br />on page 3, Item k, it says applicant's financial resources applicable tp this facility.
<br />They say they have cash in negotiable or non-negotiable securities o£ $61,765.00. Here
<br />we assume $50,000.00 for Orange county and $i1,765.D0 for Person and Chatham Counties.
<br />Under B it says indicate where applicant has a fee simple title ar leasehold interest.
<br />The applicant indicates it has leasehold interest, It says under C if the applicant
<br />has leasehold interest, give the following information: method .of lease 'pr other State
<br />interest - '25 years', number of years. to run - '25 years' they ask, is the lease
<br />renewal? They say 'yes'; and it says current appraised value of the land? They say
<br />$100,000. Annual rent. They say they are renting it for $1.00 per year. Its says
<br />include copy of lease agreement. They say npt available at this time, will forward
<br />if needed, This indicates to me they are leading the State people to believe they have
<br />this stuff i.n hand. We .all know that there is no such lease agreement. Page 7, Item 16,
<br />in the formal application the applicant gives assurance that Part A, number one, it .
<br />possess legal authority to apply for and receive grant pr loan and to finance and
<br />construct the proposed facility and that a resolution pr motion to so acL has been .duly
<br />adopted or passed as an official act by the applicant's governing Board. The Area
<br />Mental Health's Hoards minutes reflect no such thing. Number 2, the Applicant further
<br />gives assurance that sufficient funds will be available to meet the nan-State share of
<br />the cost of construction of the facility and that sufficient funds will be available
<br />when the construction is completed to assure effective operations and maintenance of the
<br />facility for the purpose for which constructed. It is understandable why the North
<br />Centsal-Region would approve this application, believing this to be true informantion.
<br />I'd like to say to the Orange County Board of Commissioners my opinion that no money
<br />can be set aside without formal action of this Board. I'd rather say to this Hoard,
<br />had it been an agreement that we fund this program this Board knows full well that
<br />this money is not available in the '74-'75 Budget as the application indicated. This
<br />Hoard should be aware that we cannot justify setting aside $50,00.0.OO.for matching
<br />Grant money when we don't awn the property which we are planning to renovate, that will
<br />' cost anothe]E $12Q000.00 that we don't have. I would like to ask the Division of Mental
<br />Health to rescind this application until we can get pur feet on the ground. Let this
<br />project be put on the priority list we have and to be funded when it reaches the top
<br />of the list."
<br />Chairman Garrett inquired, "Mr, Walker, is that all you intend to say at this
<br />time?" She continued, "I had asked Sam earlier to give sort of a background because
<br />I felt like he was an impartial observer back here and was not involved in all this,
<br />and I would like to recollPCt from my memory certain things that happened, or that I
<br />believe happened that irnrplved every member of the Board of County Commissioners
<br />and that is the old Board. Mr. walker was involved, and it involved Mr. Henry Walker,
<br />and Mr. Melvin Whitfield. The notes that T have, indicate the first action, that.I
<br />have, the discussion of the Northside School property took place on July 12., 1973, -
<br />when it states in the minutes that Commissioner Flpra Garrett asked Dr. .Coley if he
<br />felt it was worth investigating and that there were State funds available for con-
<br />struction and/or renovation of facilities for the Mental Health Program. The Board
<br />requested that the Mental Health representatives pursue the matter of securing funds
<br />for space to house the Mental Health Center. I believe in order of events, the next
<br />thing that happened was at budget time as Mr. Gattis stated, we asked about matching
<br />Funds being in this current year's. budget and we were told that the precise amount
<br />of funds and what wean necessary would not be needed for this year's budget and would
<br />probably be epming next year. That was done at.budget time. The next thing in order
<br />of events as I remember, is that the Health Planning Council of which -Henry Walker
<br />is a member at that time approved the grant application; with 561,000'.00 clearly
<br />stated in the grant "local money" it was approved by the Central Health Planning
<br />Council and then it went pn to Region J. Now, Region J sent out two notices, first
<br />they felt they had to have it. in quickly, since the application was sent by Mental
<br />xealth to the Clearinghouse. They felt that they must respond quickly, so they sent
<br />out the first notice on October 8th to the Board Chairman, Mr. Norman Walker, to
<br />myself, as a delegate of the Triangle J Council pf Governments and to Mr. Sam Gattis
<br />the principle for Orange County. And what it says in here is the purpose of this
<br />procedure is to guarantee that local governments are aware of projects that may be pf
<br />concern to them. Those receiving the notice of copies are most welcome to react, but
<br />have no obligations to do so nar have any red tape recuirements to complete. We were
<br />asked to react. We were sent the application and the $61,000.00 received by Mr. Walker
<br />and myself October Bth, but Region J did not Cite it fpund it was not necessary to-dp it
<br />without a formal Board meetinc. Sp they sent out another notice of the attempt that
<br />this wo~~d come .to the A--95 Review Process at the regular meeting of the Council of
<br />Governments, November 20th. Again receiving A-95 and review notification, the Chairman,
<br />Mr. Gattis, and myself, concerning this project with the 561,000.00, November 6th, I
<br />think it was November, it was not in the minutes,_Npvember 19th which was I think the
<br />Board meeting at, I may have brought it up sooner, but I can't find it anywhere in the
<br />minutes, but I officially brought up to the Board of Cpunty'Commissioners that consideration
<br />~ would take place at the November 20th, Region J Council of Governments meeting and I
<br />discussedaath that time what I thought was the pressing concern because T felt that all
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