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11-03-1997 BOC Meeting MinutesNEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, NOVEMBER 3, 1997 BOOK 26 PAGE 180 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, November 3, 1997, at 6:30 P.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Commissioners Buzz Birzenieks; Ted Davis, Jr.; Charles R. Howell; Vice-Chairman William A. Caster; Chairman Robert G. Greer; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order and welcomed all persons present. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Carl Holiday, Pastor of the House of Praise, gave the invocation. Commissioner Birzenieks led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer announced that time had been reserved for anyone from the public to present an item not listed on the Regular Agenda or comment on an item listed on the Consent Agenda. He requested all persons speaking to limit their remarks to three minutes. No items were presented. APPROVAL OF CONSENT AGENDA Vice-Chairman Caster asked if the funding for the Coastal Horizon's Open House, as listed under Consent Agenda Item 6, would resolve the problems expressed by Ms. Margaret Weller- Stargell? Commissioner Birzenieks responded the transfer of funds as proposed under Item 6 would resolve the problems and provide a more efficient system by eliminating some of the bureaucracy. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Caster to approve the items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes for the Regular Meeting of October 6, 1997, and the Emergency Meeting of October 16, 1997, as presented by the Clerk to the Board. Approval of Contract #98-0151 with American Uniform Sales, Inc. to Purchase Body Armor Vests - Sheriff's Department The Commissioners awarded the bid and contract to American Uniform Sales, Inc., the lowest responsible bidder, in the amount of $26,145 for the purchase of armor vests for the Sheriff's Department. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIV, Page 9. Approval of Budget Amendments #97-0059, #97-0060, and #97-0061 for the Department of Aging The Commissioners approved the following budget amendments for the Department of Aging to budget additional revenue received: Budget Amendment #97-0059 - Aging/Senior Center Debit Credit Aging/Senior Center Title III Health Grant Other Improvements 6,818 6,818 Purpose: To adjust budget to reflect grant award for walking trail at the Senior Center. Budget Amendment #98-0060 - Department of Aging NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, NOVEMBER 3, 1997 BOOK 26 PAGE 182 Budget Amendment #98-19 Federal Forfeited Property - Capital Project Debit Credit Federal Forfeited Property Federal Forfeited Property 60,000 Capital Project Expense 60,000 Purpose: To increase the budget for the trade-in allowance for five (5) Harley Davidson motorcycles Bid #98-0152) purchased originally with Federal Forfeited Property funds. Adoption of Resolution Authorizing the No Cost Transfer of Two Lots to Wilmington Housing Finance and Development The Commissioners adopted a resolution transferring the following lots owned jointly by the City and County to Wilmington Housing Finance and Development, Inc. for demolishing the structures and constructing a house or placing a pre-built house on each lot: 1) Parcel 049-13-003-007.000, 3301 Princess Place Drive 2) Parcel 054-13-024-011.000, 705 Kidder Street A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIV, Page 9. Approval of Budget Amendment #98-0056 to Transfer CBA Funds from the Coastal Horizon's Open House Program to the Department of Social Services and Transfer County Funds from the Department of Social Services to the Coastal Horizon's Open House Program The Commissioners approved the following budget amendment to provide funding to the Coastal Horizon's Open House Program through direct allocation of County funds. The State Community Based Alternatives (CBA) funding is designed to provide services to juveniles involved with the court system. Coastal Horizon's Open House Program currently receives CBA funds, but has continuing problems with meeting the 50% requirement of clients served by court-referred New Hanover County residents. This problem can be avoided by funding Open House through a direct allocation of county funds and increasing the CBA funding to DSS by the same amount for the group homes that serve qualifying youths. Budget Amendment #98-0056 - Various Debit Credit Social Services/State & AFDC Foster Homes CBA Grants 51,198 Community Based Alternatives Agencies Coastal Horizon's Open House Program CBA Grants 51,198 51,198 General Fund Outside AgenciesIHuman Services Coastal Horizon's Open House Program 51,198 Approval of Budget Amendment #98-17 - Federal Forfeited Property - Sheriff's Department The Commissioners approved the following budget amendment: 98-17 Federal Forfeited Property Capital Project Debit Credit Federal Forfeited Property 9,520 Capital Project Expense 9,520 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, NOVEMBER 3, 1997 BOOK 26 PAGE 185 Commissioner Birzenieks commented on proposed financing for the recommendations involving the City, County, and a variety of organizations, and asked if the Committee specifically reviewed financing options such as grants and bonds for implementing the plan? Ms. Dankel responded the Committee did not have time to review financing options; however, this would be the next step in implementation of the plan. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Dankel for presenting the findings of the Community Arts Committee. DISCUSSION AND PRESENTATION OF SPACE NEEDS FOR THE SOUTHEASTERN CENTER Dr. Arthur F. Costantini, Area Director of the Southeastern Center, stated before presenting the findings of the space needs for the Southeastern Center, he would like to introduce two members of the Southeastern Center Board, Dr. Charles R. Vernon, and Ms. Mary Hatcher. Dr. Costantini reported the purpose of the presentation was to inform the Board of County Commissioners about space needs of the Southeastern Center and hopefully return in approximately two weeks with a request to approve the purchase of a building and assist the Center in arranging financing. He advised the Southeastern Center was desperately in need of additional space. Currently, the Southeastern Center occupies approximately 29,000 square feet of space on 17th Street, of which 18,000 square feet is located in the main building and 11,000 square feet in the Detox Center. In addition, the Center leases 20,000 square feet in various locations at a cost of$250,000 per year. The Center currently needs an additional 1 0,000 square feet immediately. Due to the lack of space, some services cannot be provided to meet the needs of clients. For example, there is a waiting list of three to four weeks for clients to see a psychiatrist. Funds are available in the current budget to hire an additional psychiatrist, but there is no space in the existing building for an office. The Southeastern Center needs 10,000 to 15,000 square feet immediately and another 10,000 to 15,000 square feet over a three-year period. After discussing the problem with the County Manager, the Southeastern Center was told to perform a space study to determine the exact space needed. The firm ofBMS Architects, PC, was hired to perform a study. The findings of the study indicate that Southeastern Center needs 51,000 square feet over the next three years, in addition to the 29,000 square feet of space on 17th Street. The study included a site review to see if it would be possible to expand the existing buildings. The following recommendations were presented: Solution A: Keep the Southeastern Center where it is located and build the needed additional space on the site. This option will leave the Center on the major transportation arteries that serve New Hanover Regional Medical Center which will require additional parking. The building would be expanded by 51,247 square feet of additional space to bring the existing 29,180 square feet up to 81,428 square feet of needed space. A two-level parking deck would have to be constructed to provide parking for 210 cars, and a two-story building would be constructed over the deck. The projected cost of this option is estimated at $7,250,000. The advantage of Solution A is that the Southeastern Center will remain on the same campus. The disadvantage of this option is an overly crowded campus. Solution A(I): This solution is the same as Solution A with the exception of parking. A parking deck would be constructed under the building. A two-story building would be constructed on the ground with the parking requirements being satisfied by use of the New Hanover Regional Medical Center parking structure on the northwest corner of the site. The projected cost of this option is estimated at $6,400,000. Solution B: This solution would relocate the Southeastern Center to another location. The advantage ofthis option would be selecting a parcel ofland that would accommodate the space needs and parking. The disadvantage is finding affordable land in New Hanover County. The projected costs to purchase five acres is $200,000 per acre. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, NOVEMBER 3, 1997 BOOK 26 PAGE 186 Dr. Costantini reported the Southeastern Center was negotiating with BellSouth to purchase the building on Shipyard Boulevard at a cost of$3,000,000. The building would provide space for the future and meet the parking requirements. In closing, Dr. Costantini stated in order to purchase the BellSouth Building, approval would be required from the New Hanover County Board of Commissioners, the Brunswick County Board of Commissioners, and the Pender County Board of Commissioners. If the negotiations are satisfactory, the Southeastern Center will appear before the Board again to request approval for the Center to purchase the BellSouth Building. Also, if the building is purchased, the Southeastern Center has funding available to pay for the structure; however, the Board of County Commissioners may have to assist with the financing mechanism used for the project. Commissioner Birzenieks congratulated Dr. Costantini and Commissioner Davis for pursuing the purchase of the BellSouth Building. He stated this option was economically feasible, provided adequate parking, and would move the Southeastern Center from an overly crowded campus. Vice-Chairman Caster requested an explanation of the benefits that would be lost with the Center being moved away from New Hanover Regional Medical Center? Dr. Costantini responded the Southeastern Center Board would have to be very selective in the services that should remain on the current campus, such as the Detox Center. Discussion was held on County funding. Dr. Costantini responded the Southeastern Center is not requesting the County to fund $50,000 per year; however, the Center needs assistance with arranging the financing. The purchase price of the building is $3,000,000, and the Center is trying to negotiate financing. The numbers in the agenda packet were prepared before the BellSouth Building became a possibility. Commissioner Davis requested an explanation of renovation costs to the BellSouth Building. Dr. Costantini responded approximately $250,000 to $500,000 would be needed to renovate one floor. The projected renovation cost is $27 per square foot. Once the Center is relocated, the amount of renovated space will be determined because many of the offices are in good condition. Commissioner Davis asked Dr. Costantini ifhe was in the position to inform the Board about the amount of money that will be needed. Dr. Costantini responded the Southeastern Center can pay $1,000,000 down with repayment of the balance over a two to three-year period. Commissioner Davis stressed the importance of the Board understanding that the Southeastern Center is willing to make a major commitment by providing a $1,000,000 down payment toward the amount to be borrowed, which will be the purchase price plus renovation costs. Also, the $500,000 the Center is willing to commit for debt service does not include the rent received from BellSouth for a period of three to five years. Vice-Chairman Caster asked if the two current buildings would be used by the Southeastern Center if the BellSouth Building was purchased. Dr. Costantini responded the buildings would be used to provide substance abuse services that must be located near the emergency room and Medical Center. Chairman Greer congratulated Dr. Costantini and the Southeastern Center Board for the excellent financial condition of the Southeastern Center, which was in a deficit situation when Dr. Costantini was hired as director. He stated he would be in favor of purchasing the BellSouth Building, but he was opposed to expanding the current building. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, NOVEMBER 3, 1997 BOOK 26 PAGE 197 Ms. Melvin advised this schedule would have to be approved by the participating agencies because of a potential for an increase. Also, the agencies may discontinue service with the transportation system in March or April, which will cause the mileage to fall before the 96,000 miles per quarter. Commissioner Howell reported there is a total budget of $436,000 for all participating agencies. Some agencies are not receiving mileage, like Head Start, who was projected to pay a portion of the $436,000 budget. If the rate is increased, the Department of Aging will be negatively affected with a projected shortfall of$17,000. The Department of Aging does not have an additional 17,000. If only one agency was participating in the system, the formula submitted by Chairman Greer would work; however, the question to answer is who will reimburse the Department of Aging and other agencies for the funding shortfalls. Chairman Greer stated that Mr. Hellens should not be held responsible for any shortfalls that occurs in participating agencies. He asked why the County became involved in the transportation system when this service could be contracted with a company like PTS, Inc. and paid directly by New Hanover County. County Manager 0 'Neal responded the State through Executive Order declared that all local government transportation efforts should be centralized and consolidated for the purpose of saving money. Before the transportation system was established, the Department of Aging, Department of Social Services, and Southeastern Mental Health Center were entering into individual arrangements with a taxi company or any other transportation service to provide transportation to persons in need of being transported to doctors appointments, drug stores, shopping, etc. This method was not efficient because each department had different rates with no quality control over the transportation services provided. This was the reason for the Executive Order. It was found that providing the service through the bidding process was more competitive and efficient. Chairman Greer stated he felt the transportation system had not been efficient. At the first of the year, each agency using the system should commit to a certain number of miles and be required to pay the County for that number of miles. This procedure would eliminate the loss of funds for other agencies when there is a mileage shortfall. Ms. Melvin responded the agencies in the system have signed a memorandum of agreement to purchase miles in the system. The new agencies coming into the system created the problem. Head Start had agreed to pay maintenance and insurance costs on the buses in order to participate in the transportation system. At that time the per mile rate was $1.09. With the proposed rate increase, Head Start could not absorb the additional cost and did not enter the system. Normally, the participating agency will contribute the buses to the system and the private operator will pay for insuring and maintaining the buses. The agency would no longer be involved in the transportation. PTS, Inc. was not ready to absorb the cost of maintenance and insurance for Head Start. Chairman Greer inquired as to the number of miles committed by Head Start and the YWCA? Ms. Melvin responded that Head Start and the YWCA were scheduled to bring in 40,000 to 50,000 miles, which represents approximately 10%. The YWCA Board will have to decide if they want to continue to participate with the increased rate per mile. If these agencies do not participate in the system, other agencies will be recruited to enter the system. She stated if the transportation system falls short of mileage and County agencies are the only participating agencies, the budgets for those agencies will have to be increased. Commissioner Davis stated that staff originally recommended awarding the bid to Progressive Transportation; however, the Board decided to award the bid to PTS, Inc. He asked if Progressive Transportation was still willing to take over the service? Ms. Melvin responded that Progressive Transportation would assume the transportation service at $1.15 per mile as originally bid.