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2000-05-22 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 973 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, May 22,2000, at 9:00 a.m. in the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Commissioner Buzz Birzenieks; Commissioner Ted Davis, Ir; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen 0 'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Caster called the meeting to order and welcomed everyone present. INVOCATION AND PLEDGE OF ALLEGIANCE Deputy County Manager, Andrew 1. Atkinson, gave the invocation. Commissioner Howell led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Caster announced that time had been reserved to allow the public to present an item that was 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 Chairman Caster requested removal of Consent Agenda Item 10 to allow more time for discussion of the film production fee with the movie industry, and he also requested removal of Consent Agenda Item 8 to the Board of Equalization and Review Agenda. Discussion followed on Consent Agenda Item 4 regarding the fact that representatives of the equestrian interests do not want the horse ring located at Ogden Park. Chairman Caster said after talking to concerned citizens, he found the major problem was not the location, but the lack of parking facilities for horse trailers during horse shows. Parks Director, Neal Lewis, explained that the equestrian ring at Ogden Park would never be large enough to accommodate regional horse shows. With the completion offacilities in Ogden Park, the concerned citizens felt there was too much activity to hold horse shows near athletic fields and playgrounds. He also stated that parking had never been designated for horse shows at Hugh MacRae Park. Unfortunately with increased activity at Hugh MacRae Park, it is becoming a problem to hold large horse shows. The request under Consent Agenda Item 4 is to provide an additional parking lot at Ogden Park with the remaining funds to accommodate the use of the ballfields and playgrounds. The new parking lot will not be located in the vicinity of the equestrian ring. Discussion was held on Consent Agenda Item 4, the Latino Festival. Parks Director Lewis advised that this festival had become a popular event and the Parks Department was willing to co- sponsor the event as done with the Piney Woods Festival. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to remove Consent Agenda Items 8 and 10 as requested, and approve the remaining items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the following sets of minutes as presented by the Clerk to the Board: Special Meeting May 5,2000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 974 Regular Meeting May 8, 2000 Adoption of Resolution to Award Bid # 00-0339 and of Contract # 00-0339A to Aggreko, Inc., for Hurricane Protection Services The Commissioners adopted a resolution awarding the bid and contract to Aggreko, Inc. in the amount of $13,470 for the rental of generators on an as needed basis during hurricane season. 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 XXVI, Page 9. A copy of the contract is on file in the Legal Department. Approval Contract Amendment with the Town of Carolina Beach The Commissioners approved an amendment to the contract with the Town of Carolina Beach to continue providing plumbing, mechanical, and electrical inspection services and to eliminate handling permits, inspections, inspection records and other enforcement duties regarding building inspections since Carolina Beach has hired a Building Inspector. The proposed changes have been reviewed and approved by staff in both jurisdictions. The Chairman was authorized to execute the necessary contract documents. A copy of the amended contract is on file in the Legal Department. Approval of Amendment to Ogden Park Grant Project The Commissioners approved an amendment to the Parks and Recreation Trust Fund grant for Ogden Park to transfer the equestrian ring funding to construction of an additional parking lot and paved walking trail around the pond. Approval of Inspection Department Fee Schedule Revisions The Commissioners approved the revisions to the Permit Fee Schedule for new residential construction, existing residential construction, new commercial construction, existing commercial construction, and administrative fee policies as recommended and approved by the Inspections Advisory Council. The new fees will be implemented in the new fiscal year. A copy of the revised Fee Schedule is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVI, Page 9. Adoption of Resolution to Transfer Ownership and Control Resulting from Merger of America Online with Time Warner The Commissioners adopted a resolution and specified conditions for the merger of America Online with Time Warner into a new company, AOL- Time Warner. The Chairman was authorized to execute the necessary documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVI, Page 9. Approval for New Hanover County To Co-Sponsor the 3rd Annual Latino Festival The Commissioners approved co-sponsoring the third New Hanover County Latino Festival and granted permission for the festival to be held in Hugh MacRae Park on Saturday, November 4, 2000. The total cost to the County will be $2,000, and this will be an on-going sponsorship similar to the Piney Woods Festival. Release of Values - Tax Department The Commissioners approved release of the following late listing penalty since this was the taxpayer's first offense: Cavagnaro, Laura Leak $11.10 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 975 Approval of Lease Agreement for New Hanover Regional Medical Center (NHRMC) to Lease Property Located at Doctors Park The Commissioners approved a lease agreement for NHRMC to lease property located at Doctors Park, Building C, Wrightsville Avenue to Wilmington Pathology Associates. The lease will be at a fair market value. Adoption of Resolution Requesting the N. C. Department of Transportation to Add Boundary Street to the State Highway System The Commissioners adopted a resolution to add Boundary Street in the North Kerr Industrial Park to the N.C. Highway System. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVI, Page 9. Acceptance of Tax Collection Reports Through April 30, 2000 The Commissioners accepted the following Tax Collection Reports through April 30, 2000, as submitted by the Collector of the Revenue, Patricia 1. Raynor: New Hanover County New Hanover County Fire District Copies ofthe Tax Collection Reports are hereby incorporated as a part ofthe minutes and are contained in Exhibit Book XXVI, Page 9. Adoption of Resolution Awarding Bid # 00-0338 and Contract #00-0338 to Interior Systems, Inc. to Purchase Shelving for the Northeast Library The Commissioners adopted a resolution awarding Bid #00-0338 and Contract #00-0338 to Interior Systems, Inc., the lowest responsible bidder, in the amount of $105,282.50 to purchase shelving for the Northeast Library. 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 XXVI, Page 9. A copy of the contract is on file in the Legal Department. Adoption of Resolution Awarding Bid #00-0358 and Contract #00-0358 to Four Separate Groups for the Purchase of Furnishings for the Northeast Library The Commissioners adopted a resolution awarding Bid #00-0358 through four contracts in the total amount of $112,075.11 as follows: Interior Systems, Inc. Southern Office Furniture Dist., Inc. D/b/a Mac Thrift Office Furniture BroRoy Corporation Carswell Business Systems of Wilmington, Inc. $43,020.00 (Contract # 00-0358A) $ 3,347.70 (Contract # 00-0358B) $27,786.41 (Contract # 00-0358C) $37,921. 00 (Contract # 00-035 8D) 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 XXVI, Page 9. Copies of the contract are on file in the Legal Department. Approval of Budget Amendment #OO-Ol77-Social Services Administration/Adult Day Care and CP&L Intervention Programs The Commissioners approved the following budget amendment: NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 976 Adjustment Debit Credit Social Services Administration: DSS-Administrative Grants $44,139 Adult Day Care: Day Care Services $10,025 CP&L Intervention Program: Assistance Payments $34,114 Explanation: To budget additional State allocation for the Adult Day Care and CP&L Intervention Programs. No additional County funds are required. Approval of Budget Amendment #2000-36-Northeast Branch Library Capital Project The Commissioners approved the following budget amendment: Adjustment Debit Credit Port City Java Contribution Capital Project Expense $33,179 $33,179 Explanation: To budget funds received from Port City Java for construction costs associated with the kiosk. Authorization for the Health Department to File a Grant Application to Project ASSIST for an American Legacy Foundation Grant The Commissioners authorized the Health Department to file a grant application in the amount of $57,500 to Project ASSIST (American Stop Smoking Intervention Study) for an American Legacy Foundation grant. If the grant application is approved, the budget amendment will be for FY 2001 since this grant will be awarded for September 2000. The amount of $57,500 will be included in the budget request for the following fiscal years: FY 2002 and FY 2003. If grant money is not available to fund these positions after three years, they will be evaluated for termination. The grant application includes hiring one full-time Health Educator who will be involved in training for school personnel and youth. The Board of Health will partner with the Boards of Education in New Hanover and Brunswick Counties, Wilmington Health Access for Teens (WHAT) the Youth Advisory Board, and the University of North Carolina at Wilmington Crossroads Co-op Program. Funding will also be used to purchase a computer, provide youth incentives, training and travel, program training retreats for youth, and departmental supplies. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager O'Neal requested the following employees to step forward to receive service awards: Gwendolyn A. Taylor Mary L. Harrelson Bobby S. Harvey Laura A. Ferrell Sarah T. Sholar Barbara T. Harts Ameila Sidbury Inspections Department Social Services Social Services Library Inspections Dept. Social Services Library 5 years 5 years 5 years 5 years 10 years 15 years 20 years On behalf of the Board, Chairman Caster presented service awards to these employees and he expressed appreciation to them for their years of dedicated service. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 977 RECOGNITION OF NEW EMPLOYEES County Manager O'Neal requested the following new employees to stand and be recognized. Suzanne Taylor, Inspections Department Daniel Hands, Property Management Department Maxine Drummond, Department of Social Services On behalf of the Board, Chairman Caster welcomed the new employees to County Government and wished them well in their new positions. ADOPTION OF PROCLAMATION DESIGNA TING MAY 28 - JUNE 3, 2000, AS "HURRICANE AWARENESS WEEK" IN NEW HANOVER COUNTY Director of Emergency Management, Dan Summers, requested the Board to adopt a proclamation to designate May 28 - June 3, 2000, as "Hurricane Awareness Week" in New Hanover County. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to adopt the proclamation declaring May 28 - June 3, 2000, as "Hurricane Awareness Week" in New Hanover County. A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIV, Page 9. APPROVAL OF PROJECT IMPACT'S HURRICANE PREPAREDNESS EXPO 2000 Emergency Management Director, Dan Summers, reported on the 2000 Project Impact Hurricane Preparedness Expo to be held on Saturday, June 3,2000, at UNCW Trask Coliseum from 9:00 a.m. to 7:00 p.m. He advised that $24,700 has been raised by businesses participating in the event and stated the major sponsors are CP&L, Grainger Industrial Supply, Harris Teeter, The Home Depot, Kerr Drug, Lowe's Home Improvement Warehouse; Roll-A- W ay Storm & Security Shutters, the Southern Pure Water Factory, and Tidewater Technologies, Inc. There will be 101 exhibitors with preparedness and prevention information. The following media sponsors have contributed approximately $75,000 of media time in promotion of the event: WECT TV 6 WWAY TV 3 WAAVNews/Talk 980; WWQQ Double Q, WQSL Q-92; WGNI 102.7; WMNX Coast 97.3; WXQR Star 105; WSFM Surf 107; WKXB Jammin 99.9; WRQR Rock 104.5; WLGX Smooth Jazz 106.7 Director Summers requested the Commissioners to attend the event and support the hurricane awareness campaign. A Hurricane Preparedness Party will be sponsored by Barnes & Noble on June 1,2000, at 7:00 p.m. Refreshments will be served and activities have been planned for the children. In closing, Director Summers expressed appreciation to the businesses and community for the support given to this event, which helps citizens to prepare for hurricanes. Commissioner Birzenieks complimented Director Summers for the excellent manner in which the event was carried out last year. He advised that he purchased hurricane shutters from a vendor at the Expo, who informed him that so many orders were received after the event, it was almost impossible to deliver and install the shutters in a timely manner. Directors Summers stated that prevention can be a WIll-WIll situation for the local governments, businesses, and citizens. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 978 ACCEPTANCE OF COUNTY MANAGER'S FISCAL YEAR 2000-2001 RECOMMENDED BUDGET County Manager, Allen O'Neal, reported that he was pleased to present the recommended budget for FY 2000-2001. After a thorough review, a tax rate of 59.5 cents, an increase of 3 cents over the current tax rate, is being proposed. This increase will partially cover the increased debt service on bonds issued for New Hanover County Schools and Cape Fear Community College. The debt service increase results from bonds passed by the voters in 1997, and it will continue to increase for the next few years as the debt service is fully funded. A 5-year debt service schedule can be found on Pages 23-25 of the recommended budget. The tax rate is proposed to fund a portion of the debt service increase and fund County operations with no expansions or enhancements for the next fiscal year. Funding expanded facilities at a minimum level cannot be continued into the future if our citizens are to receive the services they demand. The decisions made to balance the recommended budget with this tax rate will have some affect on long-term plans for the County. A pie chart was presented on recommended expenditures for FY 2000-2001 as follows: Education 34.0% Human Services 28.8% Public Safety 13.8% General Government 10.2% Debt Service 4.9% Cultural & Recreational 4.7% Transfers 3.1 % Economic & Physical Development 0.3% Contingency 0.2% Education continues to dominate the largest category of expenditures. When reviewing a breakdown of expenditures by object, the County spends more on education than on salaries for County employees, which is the next major category of expenses. A pie chart was presented on educational expenditures. The School System requested a 31.6% increase, which would have increased the tax rate by 10 cents. Funding in the amount of $55.4 million, or 34% ofthe general fund budget, is recommended for schools. This figure represents an increase over the current year of$4. 9 million. Ofthe $55.4 million recommended for schools, $5.4 million is funded by the portion of the sales tax designated for schools. No growth is projected in the sales tax revenue due to the forced annexation by the City of Wilmington. The $1 million transferred from the County's fund balance for the schools will fund the $4.8 million increase in the school debt service and fund a 3% increase for current operating and current expense outlays. Discussion followed on the amount of funding appropriated to schools. Commissioner Davis stressed the importance of the citizens understanding that basically when voters pass bond issues, the debt service has to be paid. When the bond issues for New Hanover County Schools and Cape Fear Community College were passed by the voters, the bond debt payment for FY 2000-2001 for schools will represent a $3.1 cent increase on the property tax rate and a $.05 cent increase for Cape Fear Community College, which is a total increase of 3.6 cents on the property tax rate. The budget recommended by the County Manager transfers $1 million from the County's school fund balance account in order to keep the tax rate at 3 cents instead of 3.6 cents. Budget Director, Cam Griffin, explained that in order to fund schools, a New Hanover County School account was established as a special revenue fund to account for the one-half cent sales tax designated for schools, the building fund for public schools, and transfers from the general fund. The $1 million transferred to assist with funding schools was transferred from this account. Commissioner Davis reiterated that funds were not transferred from the Schools' fund balance, which is totally controlled by the Board of Education, but from the County's special educational account that was set up to fund schools. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 979 County Manager O'Neal presented a graph showing that County contributions to public schools have increased significantly in recent years. Educational funding continues to increase at a greater rate than general fund expenditures. The increase in the general fund without schools or debt service is only 1.4% over the current year's budget. This is less than the anticipated growth in population or the inflation rate. The population is projected to increase at 1.9% between 1999 and 2000, and the current rate of inflation is 2.7%. This means that if funding for education is removed, the County budget would only increase 1.4%. Ad valorem taxes and sales taxes account for 77% of the total recommended revenue. No fund balance appropriation is recommended for FY 2000-2001. No growth in the sales tax is projected as a result of the City's annexation. The N. C. General Assembly must be kept aware of the need for local governments to have alternative sources of revenue to more equitably distribute the tax burden. The tipping fee for the Environmental Management Fund is recommended at $32 per ton which represents an increase of $4 per ton. The Citizens Solid Waste Advisory Board will continue to study alternative funding strategies for the operation of the Environmental Management Department. The impact of the City's annexation plan on the Fire Service District will continue to be reviewed. Implementation of the next phase of the City's forced annexation prior to September 1, 2000, will negatively impact the Fire Service District and its budget. No increase in the Fire Service District tax is recommended in the FY 2000-2001 budget. The current tax rate will remain at 3.5 cents. The Water and Sewer District currently provides service to approximately 26,000 water and sewer customers, both residential and commercial. The District's current operation and future expansion are funded by user fees and a $2.4 million transfer from the general fund, which comes from the undesignated portion of the half-cent sales tax. No funds are included for directly funding capital projects. Plans call for financing the cost of developing Veterans Park, constructing an Administration Building, completing the Judicial Building expansion, and constructing a new Jail. The Board may want to increase the budget to fund some of these projects on a pay-as-you-go basis. The following unknown situations may impact the budget before the end of the fiscal year: 1. Determining the most efficient way to fund and address a County Drainage Plan. 2. Future annexations by the City of Wilmington. 3. The County's role in Legion Stadium renovations. 4. The most efficient way to provide child support services. 5. The most effective way for the County and School System to meet the future needs of students at an acceptable tax rate. 6. The State's actions on Mental Health and other issues. County Manager O'Neal advised that the Public Hearing on the recommended FY 2000-200 1 Budget will be held on June 5, 2000, and adopted on June 19,2000. He spoke on this being a tight budget and informed the Board that many expenditure demands are facing New Hanover County. The recommended budget has been prepared with slower growth in the tax base and a decrease in the County's share of the sales tax revenue, which has been exacerbated by the City's annexation plan. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 980 In closing, County Manager O'Neal expressed apprecIatIOn to County employees for continuing to provide high quality services to the citizens. He recognized the following employees in the Budget Department for the work and effort given to prepare the FY 2000-2001 Budget and he also recognized Mr. Carey Gibson, Computer Specialist Technician, for the power point presentation: Cameron Griffin, Budget Director Norma S. Troutman, Budget Analyst Antoinette Shields, Budget Analyst Brenda T. Bowman, Administrative Assistant Susan 1. Jaindl, Administrative Secretary County Manager O'Neal offered to answer any questions. Commissioner Birzenieks recommended scheduling a Budget Work Session to have sufficient time to discuss and question many issues in the recommended budget. He asked if Staff had a figure on the number of students enrolled in public schools this year compared to last year. County Manager O'Neal responded that the current FY 1999-2000 student enrollment after the first ten days of school was 21,425. He advised that he did not have an enrollment figure for the previous year; however, when reviewing records, an enrollment of2l,425 is not much greater than 10 years ago. Currently there are 11 existing schools that are not operating at full capacity with many schools that are operating over capacity. He informed the Board that he would be glad to provide the enrollment figures. Commissioner Birzenieks asked if more than one Budget Work Session would be needed. County Manager O'Neal responded that he felt only one Work Session would be needed because the recommended budget does not leave much room for change and does not include new items. The departments requested 71 new positions, and only 8 new positions are recommended. Commissioner Birzenieks spoke on the importance of the pay and classification plan to County employees as well as supplements for teachers and stated last year, the Commissioners allocated an additional $2.5 million to be used for teacher supplements. Budget Director Griffin reported that last year the Commissioners increased the recommended tax rate by one cent to increase funding for schools. This increase enabled the Board of Education to have sufficient funding for the following items; however, only $68,000 was used for salary Increases: Teacher supplements Maintenance Salary Increase for County paid school employees $2,500,000 $1,000,000 $1,100,000 Further discussion was held on the budget presented by the Board of Education last year. County Manager O'Neal advised that during the budget process last year, he requested a priority list of funding needs from the Board of Education. The response received was that every item requested was a priority need; therefore, he did not make the same request for FY 2000-2001 budget. Budget Director Griffin informed the Board that last year the Board of Education requested $69,158,000 and the Commissioners approved a budget request of$50,457,000. Consensus: After further discussion of the need to have sufficient time to discuss the recommended budget, it was the consensus of the Board to schedule a Budget Work Session on Thursday, May 25, 2000, in Room 501 of the County Administration Building, 320 Chestnut Street, at 6:00 p.m. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 981 ADOPTION UPON THE FIRST READING OF AN ORDINANCE AMENDING CHAPTER 6, ARTICLE V, PRIVILEGE LICENSE TAX, DIVISION 2. SCHEDULE OF THE NEW HANOVER COUNTY CODE County Manager O'Neal reported that in order to bring the New Hanover County Code in compliance with recent changes in the North Carolina General Statutes governing Schedule B, License Tax, the following changes need to be made: Section 6-90. Schedule B. License Tax ADD: ( 7) Check Cashing Business (NCGS 105-88) DELETE: (13) Laundries (NCGS 105-85) DELETE: (14) Linen Supply Companies (NCGS 105-85) CHANGE: (20) Pawnbrokers (NCGS 105-88) from $275.00 to $100.00 $ 12.50 $ 12.50 $100.00 Chairman Caster called for a motion to adopt the amendment as presented. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to adopt the ordinance amending Chapter 6, Article V, Privilege License Tax, Division 2. Schedule of the New Hanover County Code as presented to comply with changes n the North Carolina General Statutes governing Schedule B License Taxes. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the ordinance is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVI, Page 9. The ordinance will be codified into the New Hanover County Code. ADOPTION OF RESOLUTION SUPPORTING THE ACQUISITION OF THE NATIONAL GUARD ARMORY AS AN INTEGRAL PART OF THE LEGION STADIUM SPORTS COMPLEX Chairman Caster requested the Board to adopt a resolution in support of acquiring the National Guard Armory as part of the Legion Stadium Sports Complex. He advised that in 1990, an agreement was signed whereby the County would convey the National Guard Armory to the City of Wilmington when the National Guard no longer needed the property. Commissioner Davis asked if adopting the resolution would obligate the County to fund planned improvements for Legion Stadium. Chairman Caster responded that no funding would be involved with adoption of the resolution. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to adopt the resolution as presented. 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 XXIV, Page 9. ADOPTION OF RESOLUTION SUPPORTING BRUNSWICK COUNTY'S EFFORTS TO HOST THE GOVERNOR'S CONFERENCE ON TRA VEL AND TOURISM IN THE YEAR 2003 Chairman Caster requested the Board to adopt a resolution to support the effort of Brunswick County to host the Governor's Conference on Travel and Tourism in the Year 2003. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to adopt the resolution of support for the Governor's Conference on Travel and Tourism be held in Brunswick County in the Year 2003. Upon vote, the MOTION CARRIED UNANIMOUSL Y. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 982 A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIV, Page 9. NOMINATIONS TO THE COASTAL RESOURCES COMMISSION Chairman Caster reported that the Board has been requested to submit nominations to the Office of the Governor for appointments to the Coastal Resources Commission. He informed the Board that the Commissioners could submit four nominations which had to be forwarded to the Office of the Governor by June 1,2000. Chairman Caster nominated the following persons and stated each nominee had been contacted and was willing to serve on the Coastal Resources Commission: Johnnie Baker, Marine Related Business Representative Professor John Fisher, Coastal Engineering Representative Mayor Joan Altman, At-Large Representative Commissioner Birzenieks seconded the nominations. Vote: Upon vote, the Board voted unanimously to submit the nominations as presented by Chairman Caster. PUBLIC HEARING TO SOLICIT CITIZEN COMMENTS REGARDING SUBMISSION OF AN INFRASTRUCTURE GRANT APPLICATION UNDER THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM TO CONSTRUCT A TRUNK LINE TO PROVIDE WATER AND SEWER FOR A PORTION OF THE WRIGHTSBORO COMMUNITY Staff Planner, Wanda Coston, reported at the Public Hearing held on May 8, 2000, the Board decided to move forward with submitting a grant application under the CDGB Program for an infrastructure grant to make water and sewer improvements in the Wrightsboro Community near Chair Road. She said that due to details regarding an offer by the N. C. Department of Transportation (NCDOT), the application has not been completed. Vice-Chairman Greer explained that when the location of the Outer Loop (known as the U. S. Highway 17 Bypass) was moved to an area south of General Electric, a minority community was impacted by the new site. A federal law is in place to protect minority communities when a highway or other project creates an impact on a neighborhood. In this case, the NCDOT contacted the community and asked what type of infrastructure was needed in the Chair Road neighborhood. The response was water and sewer. At first it was thought the NCDOT would provide or participate in funding the water and sewer project. It now appears that an offer will be made by the NCDOT to provide money to the County for a number of years interest free. If the grant is awarded to the County and State funds are available, the water and sewer project can be completed. Vice-Chairman Greer reported that a meeting would be held this afternoon with representatives from the NCDOT to discuss the availability offunding. If State funding is received, this area could receive water and sewer services well in advance of the scheduled plan for the Wrightsboro area, which will benefit both the community and the Water and Sewer District. Chairman Caster opened the Public Hearing, and he asked if anyone from the public would like to speak. No public comments were received. Chairman Caster closed the Public Hearing. County Engineer, Wyatt Blanchard, explained that two key factors are involved in this process: (1) meeting the time frame for working out the details and filing the grant application by May 26, 2000; and (2) coordinating the water and sewer project with expansion of the Northside Wastewater Treatment Plant. He stressed the importance of being sure that sewer capacity at the NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 983 treatment plant will be available once the project is completed. Discussion was held on the availability of County funding for the Wrightsboro infrastructure project. County Engineer Blanchard explained that if State and grant funds are received, money should be available to complete the project. A rough estimate of the project cost is $3.5 to $4 million. Chairman Caster asked what would happen if the grant was not awarded to the County. County Engineer Blanchard explained that if a resolution is adopted to file the Community Development Block Grant and the County does not receive the grant award, the County is not obligated to proceed with the project. County Manager O'Neal requested the Board to consider continuing the meeting until May 25, 2000, when the Budget Work Session is scheduled, so more details can be presented on the proposed project after discussion has been held with NCDOT officials. Staff Planner Coston informed the Board that a financial commitment has to be made by the local government as part of the Community Development Block Grant rating system. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to approve filing the grant application to the N. C. Small Cities Community Development Block Grant program in the amount of $850,000. Upon vote, the MOTION CARRIED UNANIMOUSLY. After further discussion, the Board agreed to continue the meeting until Thursday, May 25, 2000. BREAK Chairman Caster called a break from 10:10 a.m. until 10:20 a.m. COMMITTEE APPOINTMENTS Appointment to the Board of Fire Commissioners Chairman Caster reported that Mr. Darryl T. Langley had resigned on the Board of Fire Commissioners and advised that seven applications have been received to fill the at-large community representative unexpired term. Commissioner Howell, the Board's representative on the Board of Fire Commissioners, requested postponing this item for 30 days to allow him time to contact the applicants. Consensus: It was the consensus of the Board to postpone filling the vacancy on the Fire Commission until the June 19,2000, meeting. Appointments to the New Hanover Commission For Women Chairman Caster announced that four vacancies exist on the Commission for Women with one applicant Patricia A. Tate being eligible for reappointment. Commissioner Davis nominated Patricia A. Tate for reappointment and Donna Grady. The nomination was seconded by Commissioner Birzenieks. Chairman Caster nominated Christina L. Adams. The nomination was seconded by Commissioner Birzenieks. Commissioner Birzenieks nominated Leslie Hossfeld. Chairman Caster seconded the nomination. Vote: Upon vote, the Board voted unanimously to reappoint Patricia A. Tate to serve a 3-year term NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 984 on the Commission for Women to expire May 31, 2003; appoint Christina L. Adams to fill an unexpired term to expire May 31, 2002; appoint Donna Grady to fill an unexpired term to expire May 31, 2001; and appoint Leslie Hossfeld to fill an unexpired term to expire May 31, 2001. Appointments to the Cape Fear Coast Convention & Visitors Bureau Chairman Caster announced that two vacancies exist on the Cape Fear Coast Convention & Visitors Bureau as follows: Categories: Attractions - 1 Vacancy Marilyn A. McConnell - Railroad Museum Board Restauranteur - 1 Vacancy Roy 1. Clinton, eligible for reappointment John M. Coble Chairman Caster opened the floor to receive nominations. Commissioner Birzenieks nominated Roy 1. Clifton for reappointment. Commissioner Davis seconded the nomination. Chairman Caster nominated Marilyn A. McConnell. Commissioner Davis seconded the nomination. Vote: Upon vote, the Board unanimously reappointed Roy 1. Clifton to serve a 3-year term in the restauranteur category on the Cape Fear Convention and Visitors Bureau and appointed Marilyn A. McConnell to serve a 3-year term in the attractions category on the Cape Fear Convention and Visitors Bureau with the terms to expire May 31, 2003. Reappointment of Carolyn Lyons to Serve on the Wilmington/N ew Hanover County Insurance Advisory Committee Chairman Caster announced that one vacancy exists on the Insurance Advisory Committee and one application has been received in the name of Carolyn Lyons. Discussion followed on the upcoming changes in the Insurance Advisory Committee because of the retirement of the Executive Director. Clerk to the Board, Lucie F. Harrell, recommended reappointment of Ms. Lyons or extending her term until these changes have been completed. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to reappoint Ms. Carolyn Lyons to serve on the Insurance Advisory Committee. Upon vote, the MOTION CARRIED UNANIMOUSLY. MEETING CONVENED FROM REGULAR SESSION TO HOLD A REGULAR MEETING OF THE NEW HANOVER COUNTY WATER AND SEWER DISTRICT Chairman Caster convened from Regular Session to hold a meeting of the New Hanover County Water and Sewer District at 10:30 a.m. Chairman Caster reconvened to Regular Session at 10:43 a.m. MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE 2000 BOARD OF EQUALIZATION AND REVIEW Chairman Caster convened from Regular Session at 10:44 a.m. to hold a meeting of the 2000 Board of Equalization and Review. Chairman Caster reconvened to Regular Session at 10:55 a.m. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 985 ADDITIONAL ITEMS Adoption of Resolution of Support for Completion of the U. S. Highway 17 Bypass Chairman Caster requested a motion to adopt a resolution to urge the General Assembly to complete the U. S. Highway 17 Bypass. Motion: Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to adopt a resolution of support for completion of the U. S. Highway 17 Bypass. 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 XXVI, Page 9. Adoption of Resolution to Request Enabling Legislation by the North Carolina General Assembly to Allow New Hanover County to Implement a Point-of-Origin Local Option One- Cent Sales Tax to be Approved by the Voters of New Hanover County County Manager O'Neal informed the Board that the deadline for submitting local bills to the N. C. General Asssembly was May 17, 2000. He asked if the Board still wanted to adopt a resolution requesting the local delegation to introduce a bill to allow New Hanover County to implement a local option one-cent sales tax. General discussion was held on the fact that some counties are opposed to a point-of-origin sales tax. Vice-Chairman Greer explained that some counties are concerned because a point-of- origin local option sales tax would allow all revenue generated from the tax to remain in New Hanover County. Commissioner Howell emphasized the importance of the cItIzens understanding that implementation of a local option sales tax will relieve the tax burden being placed on property owners. Commissioner Davis advised that if a local option sales tax is implemented, the citizens can be informed about the exact use of the tax, a sunset clause can be included in the legislation, and food can be excluded from the additional sales tax to avoid a hardship on low-income families. Further discussion was held on allowing the voters to approve the proposed point-of-origin local option one-cent sales tax. County Manager O'Neal explained that a local option sales tax can be implemented by the Board without approval by the citizens. Vice-Chairman Greer expressed concern for the citizens not voting on imposing a local option sales tax because they will feel it is just another tax. He said if the citizens understand that revenue generated from the one-cent sales tax will be used to meet specific needs and relieve the burden on the property tax rate, the proposed one-cent sales tax should be approved by the voters. After further discussion, Chairman Caster recommended adopting a resolution that will allow the citizens to vote on implementing an additional point-of-origin local option one-cent sales tax. Motion: Commissioner Birzenieks commented on the need to provide another source of revenue other than the property tax, and he MOVED, SECONDED by Commissioner Davis, to request the County Manager to prepare a resolution to request enabling legislation for a point-of-origin local option one-cent sales tax to be voted on by the citizens of New Hanover County. The resolution is to be immediately forwarded to the local legislative delegation and members of the N. C. General Assembly. Upon vote, the MOTION CARRIED UNANIMOUSL Y. Reminder of Date for Annual Group Picture Chairman Caster reminded the Commissioners that the annual group picture of the Board is scheduled for Monday morning, June 19, 2000, at 8:00 a.m. in the Assembly Room of the New Hanover County Courthouse. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 986 MEETING TO BE CONTINUED TO THURSDAY, MAY 25, 2000 Chairman Caster called for a motion to continue the Regular Meeting until Thursday, May 25,2000, at 6:00 p.m. in Room 501,320 Chestnut Street, Wilmington, North Carolina, to complete discussion of the Community Development Block Grant infrastructure project for the Wrightsboro area. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Davis, to continue the meeting until Thursday, May 25,2000 for discussion of the Community Development Block Grant and the infrastructure project for the Wrightsboro area. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster adjourned the meeting at 11 :55 a.m. Respectfully Submitted, Lucie F. Harrell Clerk to the Board MINUTES OF CONTINUED MEETING, MAY 25, 2000 ASSEMBLY The New Hanover County Board of Commissioners met in a continued meeting from May 22, 2000, on Thursday, May 25, 2000, at 6:00 p.m. in Room 501 of the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Members present were: Commissioner Buzz Birzenieks; Commissioner Ted Davis, Jr.; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen 0 'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Caster called the continued meeting to order and requested Vice-Chairman Greer to explain developments that occurred at the meeting held with NCDOT officials regarding the infrastructure project for the Wrightsboro area. DISCUSSION OF CONSENT AGENDA ITEM 8, SUBMISSION OF COMMUNITY DEVELOPMENT BLOCK GRANT FOR WRIGHTSBORO INFRASTRUCTURE PROJECT Vice-Chairman Greer reported that when the N. C. Department of Transportation (NCDOT) moved the location of the Outer Loop to property located in the Wrightsboro Community near Chair Road, the residents in this small neighborhood were impacted by the project. Under the federal Environmental Justice Act, regulations are in place to protect minority low-income neighborhoods. The NCDOT met with the community and asked what type of infrastructure was needed for the area. The response was the provision of water and sewer. Vice-Chairman Greer said that Commissioner Howell, members of the Administrative Staff, and he met earlier today with four representatives from the NCDOT to discuss the possibility of running a trunk line to provide sewer to this neighborhood. The NCDOT has offered to allow New Hanover County to borrow the money for the project, which is estimated to cost $4.5 million, at 4% for a period of 5years. Payments will not begin until the water and sewer project has been completed. The NCDOT will pay for the environmental study at a cost of approximately $200,000. The downside of this offer is that New Hanover County can borrow the money at an interest rate of approximately 5.5% without having to finance the entire project at one time, extend the payment period for a number of years, and avoid having to perform an environmental study. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 987 Commissioner Howell expressed concern for only 60 houses being served when the trunk line is completed. He said this means that the cost per house is over $60,000, which is not a cost-effective project. Chairman Caster commented on discussing the filing of a Community Development Block Grant for the project, and he requested an explanation of how this would be coordinated with the proposed sewer project. Vice-Chairman Greer explained that filing the grant application was a separate issue. The Planning Staff has proceeded with preparing the grant application for $850,000. If the grant is awarded, the $850,000 would be deducted from the estimated cost of$4.5 million for the provision of sewer to the W rightsboro area. If the grant is submitted to the N. C. Department of Commerce, Division of Community Assistance, and the grant is awarded, the County has the right to accept or reject the grant award. Commissioner Howell advised that normally the cost per house for providing sewer to a neighborhood was approximately $2,000. In this case, the cost per house would be at least $66,000. The County is being requested to spend a great deal of money for this project, particularly when it appears the NCDOT would like for the County to resolve their problem. Under the Environmental Justice Act, the residents could file a lawsuit if some form of relief is not received for the negative impact of the project. He said, personally, he was not in favor of bailing out the State. Finance Director, Bruce Shell, advised that historically, more money would be spent for this particular project; however, the trunk line could serve 488 homes. It is felt that the N. C. Department of Commerce will provide a grant to assist with constructing the project. County Manager O'Neal noted that the per house cost is extremely expensive; however, construction of this trunk line infrastructure could be quite beneficial to New Hanover County in the future. County Engineer, Wyatt Blanchard, said that in the short-term, the project would allow the Water and Sewer District to eliminate the Walnut Hills Wastewater Treatment Plant, which is a 100,000 gallon per day plant that serves 700 units. This plant is inefficient and with the new discharge regulations, it would be an advantage to dispose of the facility. Commissioner Birzenieks commented on the route being selected by the NCDOT and said the community has a right under the Environmental Justification Act to request relief, which is the provision of sewer to the community. The State is requesting New Hanover County to pay for the project so the Outer Loop can be constructed. A lengthy discussion was held on the importance of completing the Outer Loop. Commissioner Howell said that the Commissioners do not want to hold up the project, but the County should not become a victim of the State. County Manager O'Neal advised that under normal circumstances, the NCDOT would clear out an area, pay the market value for home sites, and resolve problems in adjoining neighborhoods. The Environmental Justice Act has several components regarding racial makeup and income of the neighborhood. The State is trying to engage the County to become a partner to keep the Outer Loop highway project on schedule. The NCDOT and Department of Commerce are willing to provide grant funds and loan money to the County to ensure this project is completed in a timely manner; however, it is not the responsibility of New Hanover County to participate in funding the project. Commissioner Birzenieks commented on the importance ofthe Outer Loop to the region and stated the residents in this portion of the Wrightsboro area deserve relief; therefore, he has no problem in partnering with the State. County Manager O'Neal suggested meeting with Ms. Louise McColl and other area members of the N. C. Department of Transportation Board to discuss the proposed offer. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 988 Commissioner Howell informed the Board that Ms. McColl was in favor of the County participating in the project. Commissioner Davis expressed grave concern for placing an undue burden on New Hanover County taxpayers for a project that is the responsibility of the State of North Carolina. Further discussion was held on when this area ofWrightsboro was scheduled to receive sewer as outlined in the Master Plan for the Water and Sewer District. County Engineer Blanchard advised that sewer was scheduled to be available in this area by the year 2014. Commissioner Davis expressed concern for providing sewer to a sparsely populated area before serving the Castle Hayne area. He objected to spending over $3.6 million for an infrastructure project that should be paid by the State. Commissioner Birzenieks suggested applying for the grant and meeting with the local legislators and NCDOT representatives to discuss funding for the project. Further discussion was held on the obligation of the County if the grant is awarded. Staff Planner, Wanda Coston, explained that if the $850,000 grant is awarded, the County has the right to accept or reject the grant award. However, under the competitive grant rating system, the County will receive 200 points for commitment by the local government. There is a certification portion of the application that commits the County to the project. Currently, there is a project budget for this infrastructure system in the amount of$3,600,000 with a local commitment of $2,779,000. Commissioner Davis asked if the County rejects the grant award, will this have a negative impact on future grant awards. Staff Planner Coston responded that rejecting the grant could be a disadvantage in obtaining future grants. Vice-Chairman Greer noted that if $850,000 is awarded to the County, the Walnut Cove Pump Station can be eliminated and this money would be applied toward providing sewer to the area. Commissioner Davis said if the County files the grant application, the County will be committed to the project. Commissioner Howell expressed concern for placing the cost ofthis project on the taxpayers when this is a State responsibility. Commissioner Birzenieks asked County Engineer Blanchard ifthe County should participate in the project. County Engineer Blanchard responded that eliminating the Walnut Cove Wastewater Treatment Plant would be an asset to the Water and Sewer District in a few years. Chairman Caster called for a motion. Motion: After discussion of needing to complete the Outer Loop, Commissioner Birzenieks MOVED, SECONDED by Vice-Chairman Greer, to submit the Community Development Block Grant with a local commitment of $2,779,000 for the provision of sewer to the Wrightsboro area in the vicinity of Chair Road. Upon vote, the MOTION CARRIED by a 3 to 2 vote as follows: Voting Aye: Commissioner Birzenieks Vice Chairman Greer Chairman Caster Voting Nay: Commissioner Davis Commissioner Howell NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 22, 2000 AND CONTINUED MEETING OF MAY 25, 2000 BOOK 25 PAGE 989 Commissioner Birzenieks requested the Board to discuss this project with NCDOT officials and also meet with the legislative delegation to discuss the need for revenue sources. ADJOURNMENT Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSL Y. Chairman Caster adjourned the meeting at 6:45 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board