More than a year after winning $5,000 in the Haywood County Chamber of Commerce’s annual Business Start-up Competition, Aermor, an engineering and technical services business in Canton, is still growing.

After sweeping the competition, owner Penny Morgan announced some lofty goals — to become a 100-person, $26 million outfit within five years. With about a year and a half under her belt since his announcement, Morgan still thinks that is feasible.

Will it be a bomb, an oil shortage, energy grid damage or an electromagnetic pulse that renders America’s modern modes of transportation useless?

Or will it be the collapse of modern society or simply the collapse of your bank account under the pressure of mounting fuel costs that removes the option of driving a car from the transportation equation?

The strings of tradition and progress echoed from the back alley.

Upon further inspection (and a lone door cracked open), the harmonic tone was radiating from the mandolin of Darren Nicholson.

From Staff Reports

Patrick Willis is a history buff of the first order, so when he landed a part-time job staffing the front desk at the Canton Area Historical Museum while working on his masters in history from Western Carolina University, it was a perfect fit.

 Two technology-related businesses in Haywood County are looking to save some green by going green.

Canton may end up defending its use of the property known as Camp Hope in court this August.

John and Deborah Prelaz have filed a lawsuit against the town asking that Canton’s claim to the 38.15-acre property be deemed null and void after it allegedly violated the terms of the deed. The deed requires the town to use the land for recreational purposes that benefit mostly Haywood County residents and those in surrounding counties.

Evergreen Packaging has reached a partial settlement with environmental groups over pollution from the Canton paper mill in the Pigeon River.

Environmental groups had challenged the mill’s pollution permit, claiming that the standards weren’t tight enough. There were two bones of contention: how warm the river gets and the dark color the river takes on due to the mill’s discharges.

The portion of the suit dealing with temperature fluctuations to the river has been settled. Initially, the mill was permitted to raise the temperature of the river by 15 degrees Fahrenheit with its discharges, as measured at a monitoring point about half a mile downstream.

The limit was based on a monthly average, however, so spikes much higher were acceptable as along as it evened out over the course of a month to stay within the acceptable 15 degrees.

Now, the mill has agreed to an additional temperature criteria based on a weekly average. The river cannot exceed a maximum temperature of 89 degrees in summer or 84 degrees in the winter based on a weekly average, under the terms of the new settlement.

That is largely within the temperature confines the mill adheres to already.

“This agreement largely validates what was already a good permit ... the result of a good process,” Blue Ridge Plant Manager Dane Griswold said in a statement. “Having this issue settled means we can continue to provide jobs for hundreds of Western North Carolina families, continue to meet the needs of our customers and ensure the quality of the Pigeon River continues to improve.”

Hope Taylor, the director of Clean Water for North Carolina, said the temperature standard is still too lax in her book.

“We would have liked to go far enough to have a true mountain cold water stream downstream of the mill,” Taylor said.

But moving the mill toward a weekly average instead of a monthly average is still progress, said Taylor, who has been wrangling with the Canton paper mill over water quality issues for more than a decade.

Taylor said in some instances water in excess of 100 degrees Fahrenheit has been discharged into the river by the mill. For monitoring purposes, however, the river’s temperature is taken about half a mile downstream of the discharge point, after the hotter water has mixed with the rest of the river.

The lawsuit was filed by Southern Environmental Law Center on behalf of several groups: the Western North Carolina Alliance, Clean Water for North Carolina, the Tennessee Chapter of the Sierra Club, Tennessee Scenic Rivers Association, Cocke County, Tenn., and Clean Water Expected for East Tennessee.

The paper mill sucks roughly 29 million gallons a day out of the river and uses it in a myriad of aspects of the paper making process — from cooling coal-fired boilers to flushing chemicals through wood pulp  — and then dumps it back in the river again.

The settlement was reached “without any admission of liability” on Evergreen’s part, the agreement makes a point of noting.

Too dark? You decide

Another area environmental groups contested in the suit is how dark the river’s color should be. Discharges from the mill darken the color of the river. The state considers this purely an aesthetic issue, governed by a subjective standard. Whether the river is too dark is in the eye of the beholder.

The state has wagered that the color of the river is acceptable, and the mill no longer needs regulation on this front. Environmental groups argued the river is still too dark, however.

To resolve the issue, the mill will soon undertake a public perception study. A random panel will be asked to size up the color of the river upstream and downstream of the mill.

The environmental groups have agreed to table their concerns over color pending the outcome of the study. In the meantime, Taylor said her organization is riding herd on the protocols for how the study will be carried out to ensure it is done fairly.

“Blue Ridge Paper is paying for the consultants who are coming in to do this study, so you have to assume they would bias the study,” Taylor said. “There is a way to really manipulate the way the study goes.”

For example, the mill initially proposed taking the panel to view downstream portions of the river first where the water is darker due to the discharges, then to the upstream portions where the water is clear. But the color contrast of the river downstream would likely be more striking if viewed the other way around — seeing the clear stretch first then the darker stretch, Taylor said. So she proposed a different methodology: splitting the panel into two groups in terms of viewing order.

“We said, ‘No, you have to have to have half of them go one way and half go the other way,’” Taylor said.

Taylor also wants to ensure the panel doesn’t have anyone on it who works at the mill, or whose family members work at the mill. She is also scrutinizing the way the questions will be phrased and the spectrum of multiple-choice answers.

Mike Cohen, a spokesperson for the Canton mill, said the issue of color is primarily aesthetic, thus the subjective standard is appropriate.

But Taylor believes there are underlying ecological concerns from the color of the river.

“We see that color as evidence of the chemical soup coming into the river,” Taylor said. Some of those compounds could be toxic, said Taylor, even though the state doesn’t currently classify them as toxic.

Even on the basis of aesthetics, the color is still a black mark against the mill, according to the lawsuit.

“We believe the dark color makes the river less desirable for fishing, rafting and wading than other, less polluted rivers nearby,” said Daniel Boone of Tennessee Scenic Rivers Association in a press statement.

Taylor said the mill should not deprive the public from being able to use and enjoy the river as a resource.

Whether the public is indeed bothered by the river’s color — based on the opinions of the random panel that is selected — will be borne out by the study in coming months, with the results finalized in early 2013.

The parties in the suit will then revisit the issue of color. The mill hopes the study will resolve the concerns and the rest of the suit can be dismissed, according to a statement by the mill.

Permit, take III

The environmental standards in the mill’s water pollution permit have already been tightened once compared to what the state initially suggested. The state was sent back to the drawing board once by the Environmental Protection Agency, which intervened in the pollution permit two years ago.

The state had initially recommended looser temperature criteria. The state also deemed the mill had already done enough to improve the color in the river, and that the color discharges were now acceptable and no longer needed regulating through a permit.

But the EPA called for tighter limits, telling the state to tighten up temperature fluctuations. Under the state’s original permit, the mill would have been allowed to raise the river’s temperature by as much as 25 degrees Fahrenheit downstream of the mill based on a monthly average, but the EPA reined it in to only 15 degrees warmer.

The EPA also wasn’t convinced color was no longer an issue. The study to determine whether color was within acceptable levels was a result of the EPA stepping in, Taylor said. The EPA also wanted tougher monitoring requirements on dioxins and fish tissue testing.

The permit was approved by the state two years ago in May 2010. Technically, the permits are up for review every five years.

“It is pretty much a continual process,” said Cohen, the mill spokesperson.

In reality, it is often longer between permits. Before the new one was adopted in 2010, the last one before that dated to 2001. The mill operated under an extension of that 2001 permit for four years while a new one was being worked out.

The river downstream from the mill is far cleaner today than anytime in the mill’s 100-year history. The Pigeon River was once so polluted few fish species could survive and it was unsafe for people to swim in.

During the 1990s, the mill embarked on a $300 million environmental overhaul, spurred partly by expensive class action lawsuits.

The biggest environmental victory of the 1990s was getting the mill to drastically reduced dioxin, the most toxic chemical discharged into the river. The final health advisory against eating fish caught downstream of the mill was lifted in 2005. Fish once wiped out by the mill’s pollution are being reintroduced in a joint effort between the mill and state wildlife and environmental agencies.

But environmentalists and downstream communities want the mill to make further improvements. But instead, it seems progress has plateaued.

Canton and Waynesville’s paths have diverged when it comes to the most cost efficient way to haul trash to White Oak Landfill.

Both towns will face higher costs to dump residents’ trash starting this summer when the county closes a trash transfer station that served as a mid-way point and instead will require towns to truck trash all the way to White Oak.

The Canton town board decided last week to privatize trash pick-up. Rather than running its own trash fleet, Canton will contract with Henson Waste Disposal starting July 1. The company is based in Canton.

To continue trash pick-up in-house, Canton would have had to hire additional garbage men and buy an additional truck to haul loads out to White Oak and back — an additional 40 miles, or one hour, round-trip for each load.

The extra long trip made it difficult to gauge what would be cheaper — contracting a company or doing the work itself.

“That is the reason we have to look at it to see if we are going to have to go out and buy heavy duty vehicles or contract it out,” said Alderman Ed Underwood.

Town Manager Al Matthews said no town workers will lose their jobs as a result of the switch over, as the town crews that do trash pick-up will stay on the town’s payroll in the streets department.

Henson Waste was the apparent low bidder with a price of $184,884 a year. However, it is currently unknown what the contract price will be. The town and Henson Waste are still negotiating “minor technicalities” within the contract, including a possible fuel adjustment clause, Matthews said.

The county is estimated to save $800,000 to $900,000 annually as a result of closing the transfer station — some of which commissioners said it will give back to towns to help cover their additional costs.

Hauling trash the additional distance to White Oak will also impact commercial garbage haulers and industries with large trash volumes, like manufacturing plants or the hospital. County residents, however, can continue to use one of the many convenience stations located throughout the county.

The town of Waynesville had briefly considered contracting out its solid waste operations as well but decided to continue hauling its own waste based on an analysis done with the help of Land-of-Sky Regional Council, a government planning and development organization in Asheville.

Although there will be additional costs associated with the decision — including the purchase of a new, more efficient rear-loading garbage truck and one new employee — the town does not yet know how much more it will have to shell out each year, said former Town Manager Lee Galloway. Galloway is remaining on board with the town as a consultant until the end of June.

Additional costs for the town will also translate to more money out of residents’ pockets every month. Residences currently pay $6.50 a month for trash pick-up.

“We will be recommending a rate increase,” Galloway said. The amount of the increase is also unknown.

To help mitigate the added cost and cut down on trips to the far away landfill, Waynesville will continue to promote recycling. There is grant funding available for towns to purchase recycling carts or bins for their resident, and Galloway would like to see Waynesville take advantage of that.

“We need to make it easier for people to recycle,” Galloway said. “I would love it if the town could apply for and get money for carts.”

The town currently picks up blue bags full of recyclables from homes and businesses. However, it does not collect cardboard or glass from businesses.

“We haven’t collected cardboard in probably 10 years,” Galloway said. “There is a guy (from Henson Waste) who picks up cardboard and hauls it to Jackson.”

Business owners should call Henson Waste if they wish to have its cardboard and glass picked up for recycling.

The county is also making a push for increased recycling countywide. The goal is to decrease the amount of waste in landfills by eventually recycling at least 40 percent of its refuse. Haywood County currently recycles 11 percent of its garbage and hopes to increase that to 20 percent during the next 10 years.

It also plans to add to the list of items that can be recycled, such as glass, cardboard, paper and plastics. Soon, the county hopes to recycle carpet and shingles.

The county sells its recycled materials to companies around the U.S., which amounted to more than $642,000 in gross revenue during the last fiscal year.

“We use the revenue from the recycling to offset our costs,” said Stephen King, director of Recycling and Solid Waste Management in the county.

Voice your opinion

The Haywood County Board of Commissioners will hold a public meeting at 5:30 p.m. Monday, May 7, on its 10-year solid waste plan. The plan, which details the county’s goal regarding solid waste, is available at www.haywoodcounty.net. The website also lists what items the county currently recycles.

Canton’s elected leaders could find their two-year terms of office doubling if voters support a proposed change to give the mayor and board of aldermen four years in office.

The town board will hold a public hearing at 6 p.m. on Feb. 28 to gauge residents’ feelings about shifting from the current two-year terms to four-year, staggered terms.

“I think it would behoove our community to make that decision,” said Mayor Michael Ray.

Ray said he did not think that adding another two years to the terms would make much difference.

Unlike most towns, Canton’s mayor and four aldermen have to run for election every two years. Every other town board in the region, as well as county commissioners, serves four-year terms.

While Canton’s town board has long toyed with the idea of switching to four-year terms, it would mark a change for Canton voters who are likely accustomed to the more frequent election cycle. The town board discussed the issue at their meeting last week and decided to leave the final decision up to voters.

“It’s been the way it is for a long time,” Alderman Ed Underwood said of the two-year model. “That is what the people have got used to. I think having their input is going to be very important.”

Because the entire board and the mayor run for re-election every two years, a perfect storm of circumstances could saddle the town with a completely new board and mayor, and institutional knowledge could disappear with the previous leaders.

“We were worried about the possibility,” said Alderman Patrick Willis.

Fellow Alderman Jimmy Flynn first broached the idea during his last term but no action was taken.

“I’ve been pursuing that ever since I got re-elected,” Flynn said. “If you do the staggered terms, you don’t run the risk of the whole board coming in new.”

In 2007, Canton saw three of the five seats on the board flip in a single election. And again in 2009, three of the five seats flipped. A wholesale change of the board hasn’t taken place in at least four decades, however.

Two extra years would also allow leaders to tackle longer-term projects more easily.

“I’m sure it would give anyone who is elected a longer time to complete things,” Ray said, adding that candidates would realize personal savings because they would not have to spend on campaign materials every two years.

However, a longer term is also a bigger commitment from the candidate’s standpoint.

“It’s seemed a long time since I’ve been elected, and that was only three months ago,” joked the newly elected Willis.

Although the board is required to hold a public hearing before switching to four-year terms, the law does not require residents to have a vote. The town has elected to make it a ballot issue in November.

“I feel this should be put before the people,” Ray said. “The electorate might like the possibility to have a quick turnaround.”

In addition to four-year terms, the proposal would also institute staggered terms, meaning only part of the board is up for election every two years.

If the new terms are approved, the two aldermen who receive the fewest votes in the 2013 town election would serve for only two years and then have to seek re-election again in 2015 before going to a permanent four-year cycle. The two aldermen and the mayoral candidate with the most votes during next year’s election would begin serving four-year terms at that time.

The Imperial Hotel in Canton has become entangled in a legal battle as a result of unpaid bills by a contractor.

Haywood County Builders Supply has filed a civil suit and lien against the hotel, owned by outgoing Canton Mayor Pat Smathers. The claim states that Smathers and his contractor Gary Cochran failed to pay for $29,084.93 in building supplies, such as lumber, paint, flooring, doors and nails. The supplies were used to renovate the old Imperial Hotel, which was built in 1911.

“It is what it is. I don’t agree with it,” Smathers said, adding that he didn’t want to “lambast anybody.”

Smathers said that the problem is between the contractor and Haywood Builders. Smathers said he paid Cochran for the cost of all the materials.

“Everything has been paid to the contractor,” Smathers said.

However, Cochran said Smathers still owes him money, and as a result he hasn’t been able to pay his bill with Haywood Builders.

Haywood Builders fronted the supplies and materials to Cochran for the job. Cochran would then wait to get paid by Smathers before paying the invoice with Haywood Builders.

“I paid as I got reimbursed,” Cochran said. “There is still money outstanding.”

To help cover the cost of the renovations, Smathers got a $90,000 grant from the North Carolina Rural Center to renovate the Imperial Hotel. It was a one-to-one matching grant, requiring Smathers to spend $1 of his own money for every $1 he got in grant funds.

He’s spent most of the money, according to the Rural Center. As of Nov. 10, the remaining grant funds totaled about $4,000.

The Rural Center also awarded Smathers a previous $25,000 grant for architectural and engineering plans.

Cochran said the grant process created a cash flow quandary. Bills for labor or materials must be paid for first and only then could he be reimbursed for the costs.

The grant money came in “slower than I ever thought,” Cochran said.

The county, which had to sign off on the grant and act as the fiduciary manager, requires both invoices and cancelled checks from Smathers before submitting an application to the Rural Center for reimbursement from the grant funds. Then, the center must process the application prior to reimbursing the money. This procedure can take several weeks.

Haywood Builders has also filed a civil suit against Cochran and Smathers. According to the suit, Cochran owes the building supply company an additional $186,954.96, plus interest and fees, for other projects.

Cochran said he sat down with Haywood Builders and tried to work things out many times but was unable to work out a payment plan.

“It’s been a downturn in the economy,” Cochran said. “We’ve been down for the last couple years.”

Last year, Haywood County issued 172 building permits for privately owned housing units — compared to 366 in 2008, according to data from the U.S. Census Bureau.

The firm representing Haywood Builders declined to comment.