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.