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1995-10-16 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 57 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, October 16, 1995, at 9:00 A.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, wilmington, North Carolina. Members present were: Commissioners Sandra Barone; William A. Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; County Manager, Allen O'Neal; County At torney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order and welcomed everyone present. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Jay Young, Pastor of winter Park Pentecostal Holiness Church, gave the invocation. Commissioner Barone led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer inquired as to whether anyone in the audience would like to present an item not listed on the Regular Agenda or comment on an item listed on the Consent Agenda. The following item was presented: Promotion of Rabies Clinic Ms. Donna Neal, Chairman of the Animal Control Advisory Committee, reported on the danger of rabies reaching New Hanover County and presented a map showing where active cases of rabies had been found. She commented on the need to create a public awareness of this disease and announced that a free Rabies Clinic was scheduled for November 4, 1995, from 12:00 noon until 4:00 P.M. at the Five Points Community Center, Red Cross and MacCrae Streets. Ms. Neal presented a brochure on how to care for pets during hurricanes and reported this document was being distributed to local businesses and veterinarians to assist people in caring for their pets during emergencies. APPROVAL OF CONSENT AGENDA Chairman Greer requested removal of Consent Agenda Item #8. Commissioner Caster commented on Consent Agenda Item #3 regarding the contract with N. C. Correction Enterprises, Inc. for inmate labor at WASTEC, and he requested an explanation as to how the $60,000 would be expended. County Manager O'Neal responded the $60,000 would be used to pay for supervisory expenses, which is far less expensive than having to hire persons to supervise the inmates. Commissioner Caster commented on Consent Agenda Item #4, a contract with Miller Excavation and Demolition for mulching of storm debris and stumps received at the Landfill, and he inquired as whether the County had an existing contract with this company? County Manager O'Neal responded the County did not have an existing contract with this company. Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to remove Consent Agenda Item #8 for further discussion and approve the remaining items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 58 CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes of the Regular Meeting of October 2, 1995, as presented by the Clerk to the Board. Approval of 1996 Schedule for Regular Meetings of the New Hanover County Board of Commissioners The Commissioners approved the 1996 Schedule of the Regular Meetings of the New Hanover County Board of Commissioners. The schedule will be published in the Neighbors Section of the Star- News. Adoption of Resolution to Renew Contract #95-0100-A with N. C. Correction Enterprises, Inc. for Use of Inmate Labor at WASTEC and the New Hanover County Landfill The Commissioners adopted a resolution to renew the contract with N. C. Correction Enterprises, Inc. not to exceed $60,000 per year for the use and supervision of inmate labor at WASTEC and the Landfill. The Chairman was authorized to execute the necessary contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 4. A copy of the contract is on file in the Legal Department. Award of Contract to Miller Excavation and Demolition for Mulching of Storm Debris and Award of Contract to Wilmington Materials for Processing Storm Related Debris - Environmental Management The Commissioners awarded a contract to Miller Excavation and Demolition for mulching of storm debris and stumps received at the landfill. In the event there is no storm debris in FY 1995-96, the company will grind stumps stockpiled at the Landfill at a rate of $6.39 per ton for four-inch mulch. Authorization was given to Staff to expend the $5,000 budgeted if there are no storms. The Commissioners awarded a contract to wilmington Materials for the processing of storm related debris on the wilmington Materials property at a rate of $18.00 per ton for the grinding service. This contract will be binding until June 30, 1996, but not used unless the company is issued a notice to proceed. The County Manager was authorized to execute the contract documents. Copies of the contracts are on file in the Legal Department. Acceptance of Land Donation by B&D Development Corporation The Commissioners accepted the Deed of Gift from B&D Development Corporation for a parcel of land adjoining North Kerr Avenue and the Airport. The tract is approximately 2.13 acres, and after examination by the Department of Environmental Management, no environmental concerns were found. The Airport Authority is interested in obtaining the tract; however, for federal income tax charitable contribution purposes, the County must first hold title and then convey the land to the Airport Authority. Authorization to File the FY 1996-97 Vector Control Grant with the U. S. Army Corps of Engineers for Mosquito Control Activities The Commissioners authorized the Health Department to file a grant application in the amount of $73,000 to the U. S. Army Corps of Engineers for the FY 1996-97 Vector Control Grant to be used for mosquito control activities. The grant funds will be used for salaries of the Vector Control Staff and equipment for the program. Authorization to Submit a Grant Application to the N. C. Housing Finance Agency Single Family Rehabilitation Program The Commissioners authorized the Planning Department to submit a grant application in the amount of $300,000 to the N. C. Housing NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 59 Finance Agency to assist 10 to 12 very low to low-income owner- occupied households to rehabilitate their dwellings. The local match would be from $60,000 to $72,000 and would come from the General Fund Contingency. Acceptance of "Poets In Person" Grant and Approval of Budget Amendment #96-0051 - New Hanover County Public Library The Commissioners accepted the "Poets In Person" grant awarded by the American Library Association to the New Hanover County Library in the amount of $1,050 to be used to provide a five-week series of programs on contemporary poetry. The following Budget Amendment was approved: Budget Amendment #96-0051 - Library Debit Credit Library Poetry Grant $1,050 Contracted Services Books & Periodicals $750 $300 Purpose: To budget the "Poetry in Person" grant awarded by the American Library Association to the New Hanover County Library. The grant application was approved by the Board of County Commissioners on February 6, 1995. Release of Value - Tax Department The Commissioners approved property value adjustments to the following taxpayers because of conditions that were brought to the attention of the Tax Department. Backup information is available in the Tax Department upon request. Edward H. Chinnis, Jr. John E. Noland $ 2,360 $10,100 The Commissioners penalties because the listings on time: released taxpayers the following certified they late listing mailed their Prime Equipment James C. Stewart $1,385.81 $ 5.69 Acceptance of Tax Collection Reports Through September 30, 1995 The Commissioners accepted the following Tax Collection reports through September 30, 1995: New Hanover County Tax Collections New Hanover County Fire District Tax Collections Copies of the reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXIII, Page 4. Approval of Budget Amendment #96-0052 - Engineering Department The Commissioners approved the following Budget Amendment: #96-0052 - Fire District General Fund/Engineering Department Debit Credit Fire District Emergency Measures Transfer to General Fund $2,000 $2,000 General Fund/Enqineerinq Department Transfer In (from Fire District) Building $2,000 $2,000 Purpose: Transfer of funds from the Fire District to the General Fund/Engineering Department to fund a portion of the cost of the building to be located at the new communication tower site. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 60 Approval of Budget Amendment #96-0059 - 800/MHZ Capital Project #96-0059 - Fire Service District/800MHZ Capital Project Debit Credit Fire Service District Administrative Reserve $57,570 Transfer to Capital Projects (800/MHZ) $57,570 800/MHZ Capital Prolect Transfer In (from Fire Service District) $57,570 Rent $57,570 Purpose: To budget additional funds for the 800/MHZ Capital Project approved by the Board of Fire Commissioners on September 27, 1995. Adoption of Resolutions to Add Roads to the State Highway System The Commissioners adopted resolutions to add the following roads to the State Highway System: Archer Drive & Barlow Court in the Oxford Place Subdivision Brandy Court Copies of the resolutions are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXIII, Page 4. APPROVAL OF CONSENT AGENDA ITEM #8, A RESOLUTION ESTABLISHING AN OPTIONAL RELOCATION BENEFITS POLICY FOR NEW HANOVER COUNTY Chairman Greer expressed concern for beginning the relocation benefits and stated he felt the rehabilitation of dwellings was appropriate, but he did not feel the County should become involved with relocating persons. County Manager 0' Neal reported homeowner relocations have occurred in the past under the CDBG Program and advised that occasionally, a home is found where it is not feasible to rehabilitate the structure, whether being occupied by the homeowner or tenant. When this situation occurs, any local government receiving federal or state funds must comply to the federal Uniform Relocation Act. Presently, the County has an opportunity to adopt its own policy, which would be less expensive and less restrictive than the federal relocation policy. Staff Planner, Wanda Coston, reported when a home could not be rehabilitated, the relocation of the homeowner or tenant was usually a temporary situation; however, in some cases these people had to be relocated permanently from the community if no viable housing was available in the immediate area. She stated in preparing the grant application, temporary relocation figures were factored into the project and were part of the budget. County Manager 0' Neal reported on the numerous problems experienced by other counties with rehabilitation programs, and he complimented Ms. Coston for the excellent manner in which she had administered the programs with very few complaints. Motion: Chairman Greer MOVED, SECONDED by Vice-Chairman Mathews to adopt a resolution establishing an Optional Relocation Benefits Policy for New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 4. PRESENTATION OF SERVICE AWARDS County Manager O'Neal requested the following employees to step forward to receive Service Awards: NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 61 Name Years of Service Michael S. McCollum, Environmental Management 5 Catherine M. Jarrett, Department of Social Services 5 Cecilia N. Spry, Department of Social Services 5 Thurman Bass, Jr., Environmental Management 10 Mary F. Gaskin, Tax Department 20 Chairman Greer, on behalf of the Board, presented the service awards and expressed appreciation to the employees for their years of dedicated service to New Hanover County. POSTPONEMENT OF AGENDA ITEM #2, FINDINGS ON THE RELOCATION OF THE EMERGENCY MANAGEMENT DEPARTMENT AND EMERGENCY OPERATIONS CENTER Chairman Greer reported the County Manager had postponed this item until a later meeting. DISCUSSION OF THE GOVERNOR'S "WORK FIRST" WELFARE REFORM PROGRAM Discussion was held on the additional costs and responsibilities that will be placed on counties if the Governor's Work First Welfare Reform Program is enacted. Director of Social Services, Wayne Morris, informed the Board that if this program is enacted, the workload will greatly increase because all participates will be required to work with monitoring of individual job records, tracking of school attendance and immunizations, provision of child care, and other items that have not been defined in the Governor's Work First Welfare Reform Program. He reported currently there are 2,158 AFDC adult clients with 532 working clients. Based on the Work First criteria with a caseload of this size, 941 of these clients will have to be brought into the Work First Program. In the current JOBS Program there are 350 of these AFDC clients with another 75 teenage clients, who will be dropped from the JOBS Program because of the Work First Program. He reported the duties of the Department of Social Services will double if the Governor's Work First Program is enacted. Discussion was held on the waivers in the Work First Program and concern was expressed about whether or not the paper flow and record keeping process would be reduced. Deputy County Manager Atkinson reported the Work First Program will reduce the benefits to the clientele without streamlining the amount of monitoring and paperwork which currently keeps the Social Workers from working in the field with the clients. Chairman Greer reported the County must be cognizant of the fact that any federal regulations will be retroactive to October 1, 1995, which will create a problem with current budgets for the fiscal year. Also, the County should not become the level of government that will be responsible for picking up the additional costs when state and federal Welfare Reform Programs are implemented. He recommended informing the Governor, the local legislative delegation, and the congressional delegation that counties should not be responsible for the financial burden that will be created by implementation of any state and federal Welfare Reform Programs. Deputy County Manager Atkinson reported on the time and effort gi ven by the MIS Director and DSS Director in developing an automated program to more efficiently process the numerous forms required to meet state and federal regulations. He expressed concern that these programs were not being considered under the State's program. A lengthy discussion was held on the importance of the state and federal legislative representatives recognizing the tremendous costs that could be placed on counties with the implementation of Welfare Reform Programs. Commissioner Sisson recommended meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 62 with the local legislative delegation and explaining the County's concerns. Consensus: After further discussion, it was the consensus of the Board to request the County Manager to prepare a letter for the Chairman's signature to Governor Hunt informing him about the County's concern for the costs that could be placed on counties throughout the State if the Work First Welfare Reform Program is enacted. Also, the County Manager was requested to schedule a meeting with the local legislators in the spring before the Short Session of the General Assembly to discuss Welfare Reform and the financial burden that could be placed on counties. PRESENTATION OF FEASIBILITY STUDY FOR CONSTRUCTION OF A MATERIAL RECOVERY FACILITY (MRF) - ENVIRONMENTAL MANAGEMENT Director of Environmental Management, Ray Church, advised the Board that the purpose of a Material Recovery Facility was to reduce the wastestream by 20,000 tons through processed and recycled materials as well as adhere to the State regulations prohibiting the burning of steel or aluminum cans. Currently, the City of wilmington, New Hanover County and beach communities are processing only 3,300 tons per year of recycled materials. Once the proposed facility is fully operational, it should process over 20,000 tons per year. Director Church reported the facility would be funded from the $1.4 million remaining from the 1993 Special Bond Issue and the Material Recovery and Buy-back Facility would provide the following benefits: (1) Operate as a buy-back facility for all recyclable materials brought to the facility from the general public and private haulers. (2) utilize employees of Keys to Industrial Training and Services, Inc. to maintain and operate the facility on a long-term basis. (3) Provide the capability for all private haulers to compete for and profit from commercial and curbside collection service by providing equal access to a local market and processing capability for recyclable materials. (4) Reduce the initial capital expenses for the facility by requesting proposals for lease/purchase arrangements through a materials broker, which is a common practice. (5) Identify potential long-term arrangements for material markets to provide stability to the County recycling/waste management program. In summary, Director Church provided the most economic and recycling services. reported efficient the public will be means of providing Director Church introduced Mr. Street Lee, a representative of McKim & Creed, to report on the Construction and Demolition (C&D) Facility Study. The following goals of the Construction and Demolition Facility study were presented: (1) Identify the current C&D wastestream practices. (2) Determine al ternati ves for handling the C&D waste through recycling or reuse of the processed materials. (3) Recommend a program for implementing a facility that would handle this type of waste. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 63 Charts were presented on the C&D Facility life-cycle cost estimates, revenue projections and costs for the integrated C&D/MRF Facility. In summary, the study concluded that a C&D Facility should be established at the WASTEC Facility because of the economic benefits and the fact that wood wastes and other burnable materials would be utilized as fuel for the incinerator. Director Church requested the Commissioners to authorize Staff to proceed with the following steps: (1) The design, specifications, and bid documents for construction of a building to house a Materials Recovery and Buy-back Facility. (2) Develop terms for a long-term agreement with Keys to Industrial Training and Services, Inc. for the operation and maintenance of the Facility. (3 ) Receive Requests for Proposals for lease/purchase arrangements for conveyor, sorting, and baling equipment from vendors. (4) Receive Requests for Proposals for long-term marketing arrangements for materials processed at the Facility. Mr. W. C. Pridgen, Executive Director of Keys to Industrial Training and Services, Inc., reported on the many benefits that would be derived by utilizing the services of 20-25 vocational rehabilitation clients of the Keys Program to maintain and operate the Material Recovery and Buy-back Facility. He commented on the money that would be saved by the County and stated the Keys Program would, also, be greatly enhanced. Discussion was held on why the Material Recovery Facility was needed. Director Church reported the program would remove the non- burnables and place burnables in the incinerator, which would greatly increase the efficiency of WASTEC, provide for disposal of 182,000 tons of construction waste, and greatly reduce the wastestream. The facility would be self-supporting and would not cost the County money since funds are available from the 1993 Special Bond Issue. Chairman Greer commented on disposal of construction and demolition materials and asked if a plan could be worked out with the contractors to separate the materials into two or three containers? He reported this type of program would be much less costly than spending $1.4 million for the proposed facility. Director Church advised that this idea had been discussed and educational programs had been provided to the contractors by the Keep America Beautiful Agency. He informed the Board that currently there was a program in place with a reduced tipping fee to encourage the separation of materials; however, most of the contractors still mix the loads. Commissioner Sisson commented on the concept being an excellent idea and stated since the County does not have a mandatory trash collection system, he feels this program will provide some form of curbside recycling pick-up to County residents who want the service. After further discussion, County Manager O'Neal recommended scheduling a Work Session to thoroughly review the proposals presented. Commissioner Barone inquired as to why the County was continuing to expand government? She also inquired as to why the County was competing with the private sector, who has repeatedly proven it could provide services at a lesser cost? She informed the Board that the proposed concept would create a need for additional labor, which will increase the cost of benefits through NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 64 medical insurance, retirement plans, and taxes. There will be additional costs for buildings, equipment, insurance, storage, disposal, and more management personnel will be needed to supervise the Keys employees. She recommended bidding the project out to the private sector with a Request for Proposals document being prepared to require the companies responding to take all recyclables, not just the items that are profit-oriented. Commissioner Barone reported she ran for public office to be sure that County Government was downsized, not expanded, and stated, in her opinion, the proposal presented was ludicrous and should be provided by the private sector, not the government. Consensus: After further discussion, it was the consensus of the Board to schedule a Work Session on November 2, 1995, at 10:00 A.M. in Room 501 of the County Administration Building, to discuss the proposed Material Recovery Facility. BREAK Chairman Greer called a break from 10:35 A.M. until 10:55 A.M. APPROVAL OF REQUEST BY THE BOARD OF EDUCATION TO APPROPRIATE ADDITIONAL FUNDS TO COMPLETE SCHOOL CONSTRUCTION PROJECTS AND APPROVAL OF THE ASSOCIATED BUDGET AMENDMENT #96-19 Chairman of the Board of Education, Janice Cavenaugh, commented on the letter written to the Board of County Commissioners prior to the meeting and reported due to cost overruns of $550,026 in school construction bids, the Commissioners were being requested to reimburse the Public Schools' Fund Balance by that amount plus $90,000 for connecting the Ogden Elementary School to the County's sewer system. She reported quality items, such as walkway covers, specified windows, and ceramic bathroom fixtures had been eliminated in order to save money. She advised that the Board of Education was concerned about the elimination of these quality items but felt that further depletion of the fund balance would place the school system at risk. Commissioner Barone inquired as to whether flat roofs were being used on the new school buildings? Ms. Cavenaugh responded the pitch of the roofs had been scaled down, but the Board of Education refused to use flat roofs. Commissioner Barone inquired as to the current amount of the fund balance? Ms. Cavenaugh responded the current fund balance was approximately $3,000,000 which was dangerously low. Chairman Greer inquired as to whether the general fund was used for the new administration office complex? Ms. Cavenaugh responded the general fund had already been used for the administration building and other needs. Discussion was held on the amount of money in the account for the schools. County Manager 0' Neal reported there was approximately $2,200,000 in this account as of June 30, 1995. vice-Chairman Mathews commented on the problems experienced in the school restrooms with vandalism and reported the school system must move forward with addressing this problem. He expressed concern for constantly hearing that children were afraid to use the bathrooms. Ms. Cavenaugh reported the Board of Education has tried to educate the children on having respect for the school facilities, particularly the restrooms; however, vandalism was still occurring. She reported without a complete monitoring system of the restrooms, she felt this problem would continue. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 65 Discussion was held on replacing the quality items that had been withdrawn from the construction projects in order to avoid future maintenance problems in the new schools. County Manager O'Neal reported the Public Schools' account had increased due to additional sales tax revenue as a result of rapid growth in the County, and he advised the Board that these funds had to be used for school capital projects. After further discussion of the funds needed to replace these items, Ms. Cavenaugh reported that $1,141,353 would take care of the construction cost overruns, connecting the sewer line to the Ogden Elementary School, and replace the quality items that had been eliminated from the construction plans. Commissioner Barone inquired as to whether any maintenance funds had been used to purchase towel bars, dispensers, and other items? Ms. Cavenaugh responded that funds had not been removed from the maintenance account for those purposes. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Sisson to approve a funding allocation of $1,141,353 to the schools to provide funding to replace the quality items eliminated from the contracts, connect the sewer line to the Ogden Elementary School, and approve the associated Budget Amendment. Upon vote, the MOTION CARRIED AS FOLLOWS: voting Aye: Commissioner Caster Commissioner Sisson Vice-Chairman Mathews Chairman Greer voting Nay: Commissioner Barone Budget Amendment #96-19 New Hanover County Schools Fund/Schools Capital Projects Fund Debit Credit New Hanover County Schools Fund Appropriated Fund Balance $1,141,353 Transfer to Other Funds (to Fund 330/Schools Capital Projects) $1,141,353 Schools Capital Prolects Transfer In (from Fund 125/Schools) $1,141,353 Capital Project Expense $1,141,353 Purpose: To appropriate fund balance from New Hanover County Schools' Fund for a transfer to the Schools Capital Projects Fund for additional cost of capital projects. ADOPTION OF RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE NORTH CAROLINA LOCAL GOVERNMENT COMMISSION FOR APPROVAL OF AN INSTALLMENT FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 FOR EXPANSION OF THE SOCIAL SERVICES BUILDING Chairman Greer opened the Public Hearing. Finance Director, Bruce Shell, reported the Board had approved installment financing for expansion of the Social Services Building; however, in order to comply to the requirements of the North Carolina Local Government Commission, according to N. C. General Statute 160A-20, a Public Hearing must be held to allow the public an opportunity to comment on the financing agreement. He informed the Board he would be glad to answer any questions. Chairman Greer inquired as to the number of years the project would be financed? NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 66 Finance Director Shell responded the financing would be for a term of four years. He reported when reviewing the existing debt for the Law Enforcement Center and the Library, Staff felt it would be beneficial to borrow enough money to payoff the remaining balances on these projects at a lower interest rate, which will save the County $37,000 in interest over the four-year period. Discussion was held on Item #5 in the resolution. Chairman Greer asked if one-half of a cent per $100 valuation would be required? Finance Director Shell responded this figure was used because the N. C. Local Government Commission was reviewing the total refinancing agreement; however, one-third of a cent per $100 valuation would be adequate. County Manager O'Neal recommended changing this paragraph to clearly state that no tax increase would be necessary. Finance Director Shell responded this was a standard form; however, he would be glad to check with the N. C. Local Government Commission to see if the wording could be changed. After further discussion of the wording in the resolution being misleading, it was agreed to amend Item #5 to reflect a change from the one-half of a cent per $100 valuation to one-third of a cent per $100 valuation. Chairman Greer inquired as to whether anyone from the public would like to comment. No remarks were received. Chairman Greer closed the Public Hearing. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to adopt the resolution with amending Item #5 from "one-half to one-third of a cent per $100 valuation" if this change is acceptable with the N. C. Local Government Commission. Upon vote, the MOTION CARRIED AS FOLLOWS: voting Aye: Commissioner Caster Commissioner Sisson Vice-Chairman Mathews Chairman Greer voting Nay: Commissioner Barone A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 4. UPDATE ON THE JANUARY 1, 1997, PROPERTY TAX REVALUATION Tax Administrator, Roland Register, informed the Board that the 1997 Property Tax Revaluation will be a two-year process and had already begun. Appraisers, wearing identification tags and using County vehicles with decals on the side, will be going through the various neighborhoods to determine the value of properties. He reported State Law requires the revaluation every eight years; however, New Hanover County opted to follow the provision that allows the revaluation to be performed in shorter intervals. He emphasized the importance of everyone understanding that increasing values does not equate to increasing tax rates. Tax Administrator Register presented the following key points of the revaluation process: (1) New values will go into effect January 1, 1997. This will affect the tax rate to be set by June 30, 1997, and the tax bills that will be mailed in August, 1997. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 67 (2) The purpose of the revaluation is not to raise taxes, but to adjust assessed values as closely as possible to the current market value. (3) After the 1991 revaluation, the ratio of assessed values to market values was 98.49%. In 1994, the ratio was down to 87.43% and in 1995, down to 84.99%. The revaluation is an equitable way to value properties because the process removes the high and low values back into the fair market value. (4) It appears that values will increase in the following areas: (a) properties on or near the water; (b) acreage that can be immediately developed; and (c) improved commercial property on Oleander Drive and Carolina Beach Road. Also, well- established neighborhoods, such as Princess Place and the downtown business district were already valued at 38% over the assessed values. (5) Computer modeling is being revised with cost data gathered and developed. From this data, standards and rules are developed which results into a computer model that can generate similar values for similar types of structures. In summary, the County has an excellent track record with revaluations performed entirely by the County Staff. The informal appeal process will occur after revaluation notices are mailed in November, 1996, in order to provide adequate time for the property owners to review the new values and discuss their concerns with the Tax Department. If the property owner is not satisfied after an informal appeal with the Tax Department, a formal hearing can be scheduled with the County Commissioners sitting as the Board of Equalization and Review to hear the appeal. If the property owner is not satisfied with the decision rendered by the Board of Equalization and Review, a formal hearing can be scheduled with the N. C. Property Tax Commission. There have been very few formal appeals. Of the appeals which were heard by the N. C. Property Tax Commission or the N. C. Court of Appeals, all decisions rendered have upheld the values determined by the County. The record clearly shows that the "mass appraisal system" is a dependable process. vice-Chairman Mathews complimented the Tax Administrator and Staff for the excellent manner in which the previous revaluation was performed. He requested the Tax Administrator to use additional phone lines during the upcoming process which in his opinion, was most beneficial during the last revaluation. Chairman Greer expressed appreciation to Tax Administrator Register for an informative presentation. TAX APPEAL BY DOUGLAS E. BYRUM ON VALUE OF 1995 CHEVY CAVALIER Tax Administrator, Roland Register, introduced Mr. Douglas E. Byrum and reported he was present to appeal the value placed on his 1995 Chevy Cavalier. He informed the Board that Mr. Byrum had paid the taxes and fees as required by law. Mr. Byrum reported the assessed value of his 1995 Chevy Cavalier was placed at $15,200, which was totally illogical since the sticker price on the vehicle was $14,620. After visiting the Tax Department to find out how the tax value was determined, no satisfactory answer was received. Later, he received a form letter which reads as follows: "Value and conditions are determined as of January 1..... .we do not consider the various options which mayor may not be on the vehicle." Mr. Byrum strongly objected to the method used to value new vehicles and stated the tax value of the car should be the sticker price of $14,620 or the manufacturer's suggested retail price of $12,465. He read the following sentence from the same paragraph: "We adopt uniform guide values based on the Vehicle Identification Number (VIN)." He, also, objected to NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 68 using this number as the basis for determining the tax value of the car. Mr. Byrum requested the Commissioners to review Exhibits, 1, 2, 3, 4, 5, 6, and 7 as presented in the agenda packet, and stated the purpose of his appeal was to understand how the value was determined on his new car. Tax Administrator Register reported the form letter should not have been given to Mr. Byrum without being customized to his individual case. Tax Administrator Register explained that the Appraisal Staff works with the vendor (who values vehicles for 87 of the 100 counties in North Carolina) to obtain the manufacturer's information before new cars are placed on the market. The vendor reviews typically equipped cars, such as air-conditioning, automatic transmission, radio, stereo, etc. with use of the Vehicle Identification Number to ascertain the type of engine and model of vehicle. He advised the Board that this system had worked well, and reported when excessive errors are found, refund checks are automatically mailed to the owners without requests having to be made. Tax Administrator Register reported in Mr. Byrum'S case, the vehicle was valued "sight unseen" through mass appraisal at $15,200 in advance of the car being purchased. He reported Mr. Byrum paid $14,620 for the car which is only a 4% deviation. The State Law requires the appellant to prove that the County employed an arbitrary or illegal method of appraisal in reaching the assessed value, or that the County assigned a value that substantially exceeded its true value in money as of January 1 for the year of issue. The Tax Department applied a uniform value to the vehicle in a manner that has a minor but reasonable deviation. From the information presented by Mr. Byrum, the appellant has not proven that the assessment was substantially greater than the true market value, nor has he proven that the County used an arbitrary or illegal method of appraisal. For these reasons, he would recommend that the assessed value of $15,200 be upheld. Discussion was held on the form letter and the options that were not considered. Tax Administrator Register advised that the intent of the form letter was to notify owners that the tax value of new vehicles was based on typically equipped cars with no consideration given as to options such as sunroofs, compact disc, whitewall tires, etc. Chairman Greer commented on the form letter being confusing and requested the Tax Administrator to clarify the language because it was misleading. Tax Administrator Register reported he would be glad to change the form letter. Chairman Greer inquired as to why Tax Equity Consultant, Inc. (TEC) did not use the sticker price for the value of the vehicle in order to avoid errors in the assessment of new vehicles? Tax Administrator Register responded there is no market information on the sales price of new automobiles until a year after the vehicles have been introduced; therefore, the tax consultant must provide a uniform value in advance of the sales price information being released that will be uniformly applied to all new vehicles throughout the entire year. Chairman Greer inquired as to whether applied values differ in the various states and if the tax consultant works with values in other states? NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 69 Tax Administrator Register reported that TEC applies its value study only to North Carolina and does not operate outside the state. He advised the NADA was not used because it requires starting with a base price and adding options, which is not compatible to the use of computers and would require four or five additional employees. The County pays $7,000 for the consulting service, which is less costly than hiring additional employees. Chairman Greer commented on the value appraisal process being as realistic as possible and stated, in his opinion, a new car should be adjusted according to the bill of sale. Tax Administrator Register responded if the County decided to accept a 5% deviation, it would take two full-time employees to determine if the variation was accurate. Also, if an individual has a close relationship with a car dealer, frequently large discounts are given to those individuals with other persons having to pay the full price. In his opinion, applying a mass appraisal approach as approved by the State is the most equitable way to value new vehicles. In Mr. Byrum's case, a 4% deviation is not a significant error. Commissioner Sisson inquired as to what percentage would be considered significant? Tax Administrator Register responded over 10% as outlined by the State. vice-Chairman Mathews inquired as to the additional tax assessed to Mr. Byrum with the 4% deviation? Tax Administrator Register responded the additional tax was $3.57. Chairman Greer commented on the need to be as fair as possible to the public and recommended that TEC use figures that reflect 4% less instead of 4% higher on car values. Tax Administrator Register advised the Board that counties have a choice of three ranges, low, median, and high. New Hanover County has always used the low percentage rate. vice-Chairman Mathews asked Mr. Byrum if he was aware of the additional tax due to the 4% deviation? Mr. Byrum responded that he did inquire about the amount and he was not aware that the additional tax was $3.57. He strongly objected to the method of value applied and the rude manner in which he was treated by the Tax Department when trying to find out how the value was determined. He advised the Board that he was a taxpayer and, in his opinion, to assess the value at $15,200 over the sticker price of $14,620 was a ridiculous system. Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to uphold the assessed value of $15,200 for the 1995 Chevrolet Cavalier based upon the mass appraisal approach as recommended by the Tax Administrator. Upon vote, the MOTION CARRIED UNANIMOUSLY. Consensus: After further discussion, the Tax Administrator was directed to change the language on the options in the form letter, and authorize the Chairman to write a letter to the tax consultant requesting an explanation of the method used for valuing new vehicles as well as perform a review of the present value process to provide the most equitable method of valuing vehicles. BREAK Chairman Greer called a break from 12:05 P.M. until 12:20 P.M. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 70 MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER & SEWER DISTRICT Chairman Greer convened from Regular Session to hold a Regular Meeting of the New Hanover County Water & Sewer District at 12:21 P.M. Chairman Greer reconvened to Regular Session at 12:46 P.M. ADDITIONAL ITEMS - COUNTY COMMISSIONERS Discussion on Appointment of Members to Serve on the Partnership for Children's Board of Directors - Smart Start Commissioner Caster reported Mr. Mark Lanier, a Special Assistant to the Chancellor at UNC-W, was no longer involved with the Partnership for Children's Board of Directors. He requested the County Manager to check into the process for appointing members to serve on this Board, since the Commissioners agreed to make the appointments. County Manager O'Neal responded that he would check into the matter and place this item on a future agenda. Public Hearing to be Held by the School Capital Construction Study Commission Vice-Chairman Mathews announced the School Capital Construction Study Commission will be holding Public Hearings across the State and will be meeting in wilmington on November 30, 1995, beginning at 3:00 P.M. until 7:00 P.M. He inquired as to whether any of the Commissioners were planning to attend. County Manager O'Neal advised that he had scheduled a meeting with Dr. Martin to discuss the school facilities needs in New Hanover County and reported this item would be placed on the agenda for discussion. Discussion of the Site for the Ogden Volunteer Fire Department Substation vice-Chairman Mathews commented on the memorandum from the County Attorney regarding the Deed of Trust and Promissory Note offered by Attorney Tom Morgan, on behalf of the Ogden Volunteer Fire Department, and reported he obj ected to this suggestion because he felt the County should have j oint ownership of the property. County Attorney Copley reported as requested, she researched the title to the property and found that Ogden Volunteer Fire Department had paid $35,000 for the property and the title was transferred on August 29, 1994. Further discussion was held on the purchase of the property and whether the funds to purchase the property were from District funds allocated to the Ogden Volunteer Fire Department or from private funds. Commissioner Sisson expressed concern for having no control over situations of this type unless a uniform contract policy is developed with the Volunteer Fire Departments. He strongly supported j oint ownership and stated, if an agreement cannot be reached, the County should search for another site. Vice-Chairman Mathews commented on the need to provide more fire protection to the area, and he urged the County to move forward with the project. Chairman Greer commented on the need to protect the County and stated, in his opinion, the property should be joint ownership. He suggested paying the Ogden Volunteer Fire Department $17,500 for half ownership of the property. County Attorney Copley responded she could notify Attorney Morgan that the County is willing to pay the $60,000 already committed plus $17,500 for joint ownership of the property. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 71 Consensus: After further discussion, it was the consensus of the Board to direct the County Attorney to write Tom Morgan, the attorney representing the Ogden Volunteer Fire Department, and notify him that the County desires to have joint ownership of the property and will reimburse the Ogden Volunteer Fire Department half of the purchase price at $17,500 plus the original $60,000 commitment for construction of the building. Discussion on Failure of the Telephone System Vice-Chairman Mathews commented on the recent failure of the phone system and requested an explanation as to why the system failed and why the backup systems did not function. County Manager O'Neal advised that the major component of the computer driven system failed and the two backup systems did not function. He advised that Carolina Telephone Company had been very responsive in trying to correct the problem and stated as of today, the public should not have a problem calling the various offices. Vice-Chairman Mathews commented on the importance of having a functioning backup system, particularly in the case of an emergency, and requested a written explanation as to why the back- up systems failed to function. Discussion of Outdoor Burning in New Hanover County Commissioner Sisson commented on attending a meeting at the Department of Aging and reported he met a senior citizen who had respiratory problems and was experiencing health problems because of open burning on construction sites near his neighborhood. He informed the Board that this person told him the materials were being burned without anyone on site to monitor the fire. Commissioner Sisson expressed concern for situations of this type and reported as the County continues to grow with sites being cleared for construction, he feels the outdoor burning policy should be discussed as an agenda item at a regular meeting. Discussion of Trunk Line Extensions South of Monkey Junction Commissioner Sisson advised the Board that he was told by one developer that the land south of Monkey Junction could be developed with dry sewer and septic tank systems because the soil was sandy and had excellent drainage. He commented on remarks made at the recent Work Session regarding an application for a high density project in this area, which requires the availability of sewer, and expressed concern for the Commissioners not having enough control over high density projects. Commissioner Sisson advised that when he reviewed the items heard by the Technical Review Committee on September 27, 1995, three items were for high density development projects, one at 4.8 units per acre, one at 3.6 units per acre, and one at 3.7 units per acre. All of the high density projects were in the residential district, which in effect allows for a zoning change without approval by the Board of County Commissioners. He commented on the cooperative offer by the developers to participate in funding the extension of trunk lines south of Monkey Junction but expressed concern for uncontrolled growth in this part of the County without more control over high density projects. He recommended placing an item on a future agenda to amend the zoning Ordinance to provide some form of control over these projects. Adoption of Resolution Declaring the Result of the Special Referendum Held on October 10, 1995, Regarding Consolidation of the City of Wilmington and New Hanover County Chairman Greer requested a motion to adopt the resolution showing that out of 86,447 registered voters, 11,390 voted in favor of consolidation and 15,935 voted in opposition to consolidation. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 72 Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Barone to adopt the resolution as presented. The floor was opened to discussion. Commissioner Sisson inquired as to what would happen if the Board did not adopt the resolution? County Attorney Copley reported under House Bill 1060, the Board had no choice but to adopt the resolution. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 4. Status Report on Policy Change in the Minor Permitting Process Director of Inspections, Jay Graham, reported on the recent change in the review policy for issuance of minor permits less than $30,000, for small additions to homes. When reviewing the current policy, it was found that key members of the management staff were spending five to six hours per day assisting people walking into the office and requesting a plan review for issuance of minor permits. with a limited Inspection Staff, it was decided to implement a policy that would require the permit to be filed in the office by 10: 00 A.M. one morning with the review and approval process being completed by 10:00 A.M. the next morning. This change allows for more delegation of permit reviews by the members of staff and provides more time for field inspections. Currently, the policy change appears to be working satisfactorily for the public as well as providing better time management for the members of staff. Chairman Greer commented on receiving one complaint under the policy change and inquired as to whether complaints had been received in the Inspections Department? Inspections Director Graham responded that no complaints had been received. Commissioner Sisson reported he had received complaints from persons with large proj ects who were having to wait for field inspections because of the time involved with minor permits. He stated, in his opinion, the policy change should better accommodate the public and be more time efficient. Commissioner Barone expressed concern for not being notified in advance about the policy change and requested the Inspections Director to advise the Board of any future changes in order to properly respond to public inquiries. Inspections Director Graham apologized for not notifying the Board and reported he would be sure proper notification was given in advance with any future changes. Assistant County Manager, Dave Weaver, reported the Inspections Director came to him about the change and apologized for not notifying the Board. MEETING CONVENED FROM REGULAR SESSION TO HOLD A CLOSED SESSION County Attorney Copley requested a Closed Session pursuant to N.C.G.S.143-318.11(4) relative to discussion of matters relating to the location or expansion of industries or businesses in the areas served by the public body. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Caster to convene to Closed Session for the purpose of discussing matters relating to the location or expansion of businesses in the area. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 BOOK 25 PAGE 73 Chairman Greer convened from Regular Session to Closed Session at 1:14 P.M. Chairman Greer reconvened to Regular Session from Closed Session at 1:59 P.M. and reported no action was taken in the Closed Session. ADJOURNMENT Chairman Greer adjourned the meeting at 2:00 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board