2007-08-09 Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 31
WORK SESSION, AUGUST 9, 2007 PAGE 158
ASSEMBLY
The New Hanover County Board of Commissioners met for a Work Session on Thursday, August 9, 2007,
at 3:05 p.m. in Conference Room 601 at the New Hanover County Government Center, 230 Government Center
Drive, Wilmington, North Carolina.
Members present were: Chairman William A. Caster; Vice-Chairman Robert G. Greer; Commissioner Ted
Davis, Jr.; Commissioner William A. Kopp, Jr.; County Attorney Wanda M. Copley; Clerk to the Board Sheila L.
Schult and County Manager Bruce T. Shell.
Commissioner Nancy H. Pritchett was absent.
Chairman Caster called the meeting to order and announced that the purpose of the work session is to
discuss the Mason Inlet Relocation Project general process and policies for tax assessment and to receive an update
on the Mason Inlet Relocation Project.
County Manager Bruce Shell and Assistant County Manager Dave Weaver presented the following agenda
for the work session:
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History of Inlet Project and Current Status
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Overview of Costs
?
Proposed Assessment Program
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Discussion
HISTORY OF INLET PROJECT AND CURRENT STATUS
Chris Gibson, Gahagan & Bryant Engineers and Surveyors, presented a slide overview of Phase 1 and
Phase 2 projects highlighting the following:
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Phase 1 project ? size 180,000 cubic yards; cost $631,000.
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Phase 2 project ? size 149,000 cubic yards; cost $702,715.
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Project purposes have been consistently met for five years.
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Shell Island is currently safe from inlet migration.
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Beachfront homes have been protected with beach fill but it is an ongoing process.
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The inlet remains within the inlet corridor limits.
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Maintenance shows predictable trends in sediment transport.
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Future maintenance will focus on Mason Creek and the Atlantic Intercoastal Waterway.
Brent Anderson, Land Management Group, presented an overview of the five year project overseeing the
mitigation site and biological monitoring of Mason Inlet stating that the results have been favorable and that success
criteria has been met in project years one through four with the expectation that it will also be met in the final year
of the project.
OVERVIEW OF COSTS
Finance Director Avril Pinder presented the following information on the Mason Inlet relocation project
and the assessment cost for maintenance:
Overview of Cost:
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Initial project cost $8,031,797
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First assessment in 2002 - 6,740,932
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Remainder to assess 1,290,865
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Cost incurred since assessment +1,998,518
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$3,289,383
Total to assess
Wrightsville Beach:
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Initial project cost $5,278,651
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First Assessment - 3,987,786
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Remaining balance 1,290,865
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Maintenance cost incurred 1,437,340
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$2,728,205
Total to assess
Breakdown of maintenance costs totaling $1,437,340:
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Oyster placement $ 13,136
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Project administration $30,354
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Remote Data Systems $3,690
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Gahagan & Bryant $981,555
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Land Management Group $164,714
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National Audubon $37,157
?
UNCW Monitoring $206,734
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 31
WORK SESSION, AUGUST 9, 2007 PAGE 159
Figure Eight Island:
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Initial project cost $2,753,146
?
First assessment - 2,753,146
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Sand placement cost incurred 561,178
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$561,178
Total to assess
Breakdown of sand placement costs totaling $561,178:
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Cottrell Dredging $241,663
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Figure Eight HOA 319,515 (reimbursed HOA amount of Cottrell Dredging contract)
Finance Director Pinder continued reporting that the total amount to assess to Wrightsville Beach is
$2,728,205 and to Figure Eight Island is $561,178 for the total amount of $3,289,383.
PROPOSED ASSESSMENT PROGRAM
County Attorney Wanda Copley and Deputy County Attorney Kemp Burpeau presented the following
overview of the required timeline for the special assessment:
September 4, 2007 Board meeting ? The Board will determine the cost to be assessed using the existing
assessment formula and then direct staff to prepare a preliminary assessment roll, listing parcels, basis, cost for each
owner, and payment terms. The Board may establish an interest rate not exceeding eight percent per year with a
payment term not to exceed ten years. A project map displaying the information will be prepared and the roll will
be filed in the Clerk to the Board?s office for inspection. The Board will set a date for a public hearing on the roll.
The notice for the public hearing will be published ten days prior to the hearing and at least ten days prior to the
hearing each owner will be mailed a notice of the public hearing and a letter informing them of their right to
examine the full roll and the specific amount intended to be assessed.
October 1, 2007 Board meeting ? The Board will hold the Public Hearing on the preliminary assessment
roll. At that time the Board can annul, modify or confirm the assessments. Upon confirmation, the Clerk to the
Board will note the time and date in the minutes and at that time the assessment will be treated as a tax, collectable
by the County. A notice of the confirmed assessment roll will be published no earlier than twenty days after the
confirmation noting the time and terms for paying the assessment. An owner challenging the assessment may file an
action in the State trial courts no later than ten days after the Board confirms the rolls.
In response to a question by Commissioner Davis, Finance Director Pinder reported that the collection rate
on the first assessment was approximately 99%. Staff continues to work on collecting the remaining outstanding
amount of $50,000.
PRESENTATION BY MASON INLET PRESERVATION GROUP
Frank Pinkston, on behalf of Mason Inlet Preservation Group, presented the request to use non-
reimbursable funds from the Room Occupancy Tax to cover a portion of the continuing cost for maintaining Mason
Inlet.
Mr. Pinkston stated that the project was completed successfully in 2002 and prevented the potential closure
of the inlet protecting the marsh, fish and wildlife. The project has gone beyond protecting property owners to being
a benefit to the State, County, tourism trade, residents, and visitors. There has never been any direct financial
benefit received by the Wrightsville Beach north-end property from the portion of the Room Occupancy Tax funds
developed for beach nourishment.
Mr. Pinkston requested that the Board support and provide non-reimbursable funding assistance from the
Room Occupancy Tax fund to help defray the outstanding assessment. The request is for non-reimbursable
assistance of approximately $1.4 million or 50% of the outstanding assessment. The benefited Wrightsville Beach
property owners would carry the burden of the remaining 50% of the outstanding assessment.
Mr. Pinkston recommended that if Room Occupancy Tax funds were not available for the project that the
funds come from the County?s General Fund with all County property owners sharing in the maintenance costs.
Dick Hoffman, Shell Island HOA, reported that Shell Island property owners have paid approximately
$200,000 per year into the Room Occupancy Tax fund.
Chairman Caster stated that the program has been a success and worked beyond his expectations. He stated
that he was fearful of changing the formula.
Deputy County Attorney Burpeau stated that to change the formula would be an involved process and
recommended that the Board could consider a credit to the property owners.
Commissioner Kopp requested that staff obtain the totals for Room Occupancy Tax funds paid for by the
Wrightsville Beach property owners.
NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 31
WORK SESSION, AUGUST 9, 2007 PAGE 160
Vice-Chairman Greer stated that he feels that the property owners need to pay the remainder of the initial
assessment but perhaps assistance could be provided for the ongoing maintenance costs.
After brief discussion on the use of Room Occupancy Tax funds, Chairman Caster announced that the
Commissioners will consider the Mason Inlet Special Assessment at the Board?s September 4, 2007 meeting.
ADJOURNMENT
There being no further discussion, Chairman Caster adjourned the meeting at 4:05 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board