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1995-06-05 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 723 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, June 5, 1995, at 6:30 P.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Commissioners Sandra Barone; WilliamA. Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; County Manager, Allen 0' Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order. INVOCATION AND PLEDGE OF ALLEGIANCE TO THE FLAG Reverend Larry Green, Pastor of New Temple Church of God ln Christ, gave the invocation. Commissioner Caster led the audience ln the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer inquired as to whether anyone from the general public would like to comment on an item not listed on the Regular Agenda or an item listed on the Consent Agenda. The following items were presented: Discussion of Problem Being Experience by Airpark, Inc. Ms. Judy Travers, representing Airpark, Inc., reported on the problems being experienced with the Airport Director and Airport Authority in trying to obtain an access permit to operate an off- airport parking service facility. In September, 1994, an application was made for the access permit, and as of this date the permit has not been issued. During this period, Airpark, Inc., in a good faith effort, has paid the Airport $100 per month until a reasonable fee was established and a permit issued. Now, Airpark, Inc. has been requested to enter into a contract to pay a 29 percent fee on the gross profits of the business. The company feels this is an unreasonable fee, and the Airport, in an attempt to force the company to sign the contract, is issuing $50 citations to each Airpark driver when dropping-off and picking-up a customer at the Airport. Mrs. Travers reported if the problem is not resolved immediately, Airpark, Inc. will be driven out of business. She requested assistance from the Commissioners in resolving this matter, and asked the Board to carefully appoint members to serve on the Airport Authority who have a better understanding of small minority businesses and the need for healthy competition at the Airport. Commissioner Sisson requested an explanation as to why Airpark, Inc. had a been problem to the Airport. Ms. Travers responded the Airport was concerned about losing some of its parking business. County Attorney Copley advised that discussion was being held to see if a reasonable fee could be established. Ms. Travers stated a 29% fee was not reasonable, when Airpark, Inc. has contracts with other airports in North Carolina, South Carolina, and New York with a zero to ten percent fee. Mr. Dick Carter, a resident of 209 Oakhurst Road, strongly objected to the Airport Authority requesting an American citizen, who had invested money to start a new business on private property, to pay a 29% fee on the gross profits of the business. He expressed concern for hearing that many businesses at the Airport were unhappy because of the management, and he urged the Commissioners to help Ms. Travers resolve this matter. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 724 Chairman Greer expressed appreciation to Ms. Travers for bringing this matter to the attention of the Board. Discussion of the "Cure AIDS of Wilmington" Organization Ms. Belinda Blue, Director of Cure Aids of Wilmington, Inc., located at 812-A Castle Street, commented on the importance of outreach and prevention of AIDS and requested the Commissioners to support this organization. Information was presented on the events to be held, and the amount of State funds that will be provided in order for outreach workers to visit the homes and provide information about AIDS. Medical Centers will be established at eight housing centers, and it is hoped this educational effort will create an awareness of AIDS and reduce the number of cases in New Hanover County. The Commissioners were requested to participate in this program by serving on the Southeastern North Carolina HIV Prevention Community Planning Group Board, and, also, attend the first Annual Awareness Festival to be held on June 17, 1995, at the Martin Luther King Center. Chairman Greer expressed appreciation to Ms. Blue for bringing this importance issue to the attention of the Board. Discussion of Green Belt Purchases of Land Mr. Mark Kelly commented on the following items: Green Belt Land Purchase Proqram: The Commissioners were requested to establish a committee to use a voter approved one-half percent sales tax with a sunset provision of 2-3 years to purchase land to be used as green space. Currently, there is property between Rose Avenue and the Cypress pointe Apartments that would make a beautiful, natural wooded area to be reserved as green space in New Hanover County. The Green Belt Land Purchase Program has been most successful in Boulder, Colorado, and other parts of the western United States with development of beautiful natural bike paths and walking trails. Duties of the Sheriff Under Consolidation: The Commissioners were requested to clearly mandate that the Sheriff will remain in full control of his constitutional duties if the voters decide on a consolidated government. He reported if the Board was not fully aware of the Sheriff's constitutional duties, there was a book entitled, Anderson on Sheriffs, which explains the constitutional duties of a true sheriff, not as a political pawn of any joint merger between the City and County. Discussion of the Appropriate American Flaq: The Commissioners were requested to establish a committee to study Article III in the U. S. Constitution concerning the jurisdiction of an American gold- fringed flag. In 1940, the Buck Act was passed which extended the jurisdiction of the United States and its territories into and over the States of the Union through the use of a gold-fringed flag via social security numbers and federal grants and loans. He volunteered to serve on a committee to establish true Common Law in New Hanover County to remove all gold-fringed flags in every County building including the schools. Commissioner Sisson reported Boulder, Colorado had been quite successful with the Green Belt Land Purchase Program and suggested the possible use of this program as a way to reserve space for a County drainage system. APPROVAL OF CONSENT AGENDA Chairman Greer requested removal of Item #8, and Commissioner Barone recommended approval of the minutes for the Regular Meeting of May 15, 1995, with the additions requested. Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster remove Item #8, approve the minutes with the additions requested by Commissioner Barone, and approve all remaining items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 725 CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes of the Consolidation Study Commission on May 1, 1995 and May 22, 1995 as presented by the Clerk to the Board. The minutes of the Regular Meeting of May 15, 1995, were approved with the additions as requested by Commissioner Barone. Approval of Medical Plan for the Jail The Commissioners approved the Medical Plan Hanover County Jail as presented by the New Hanover Department. The Chairman was authorized to execute documents. for the New County Health the necessary 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: Roads in Crosswinds Subdivision Sleepy Hollow Lane Roads in Arrowhead Subdivision Roads in Glenwood Subdivision Copies of the resolutions are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXII, Page 36. Renewal of Lease (Contract #93-0082) for the Branch Library at Plaza East Shopping Center The Commissioners renewed the lease for the Branch Library at Plaza East Shopping Center for a three-year period subject to all terms, provisions, and conditions of the original lease. The Chairman was authorized to execute the lease renewal agreement. A copy of the lease agreement lS on file ln the Legal Department. Award of Contract #95-0305 to Elderhaus for Day Care Services and Award of Contract #95-0251 to Well Care Nursing Services for In- Home Aide Services - Department of Aging The Commissioners adopted a resolution awarding Contract #95- 0305 to Elderhaus for day care services, Contract #95-0251 to Well Care Nursing Services for in-home aide services, and approved the Home and Community Care Block Grant for Older Americans as recommended by Home and Community Care Block Grant Committee. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 36. Copies of the contracts are on file in the Legal Department. Adoption of Resolution to Award Contract #95-0318 to Diamond Power Specialty Company for Three (3) Drum Water Level Indicator Systems for the WASTEC Facility The Commissioners adopted a resolution awarding the contract to Diamond Power Specialty Company, the lowest responsible bidder, in the amount of $26,160, plus shipping for the purchase of three drum water level indicator systems for the WASTEC Facility. 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 XXII, Page 36. A copy of the contract is on file in the Legal Department. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 726 Adoption of Resolution to Award Contract #95-0315 to Kentube Engineered Products, L.L.C. to Purchase Economizer Tubes for the WASTEC Facility The Commissioners adopted a resolution awarding the contract to Kentube Engineered Products, L.L.C., lowest responsive bidder, in the amount of $28,130.20, plus shipping for the purchase of economizer tubes for the WASTEC Facility. 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 XXII, Page 36. Adoption of Resolution to Award Contract #95-0316 to the Detroit Stoker Company for Grate Parts at the WASTEC Facility The Commissioners adopted a resolution awarding the contract to the Detroit Stoker Company, the lowest responsible bidder, in the amount of $59,227.92 for grate parts for the Detroit Stoker boiler at the WASTEC Facility. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 36. A copy of the contract is on file in the Legal Department. Acceptance of Offer by the Macedonia Missionary Baptist Church to Purchase Blount School Tract, Tax Parcel #RO-4913007003000 The Commissioners accepted an offer in the amount of $25,308 from the Macedonia Missionary Baptist Church for purchase of the old Blount School site. Pursuant to G.S. 160A-269, the offer will be duly advertised for upset bid. The Board of County Commissioners may terminate the sale process at any time and reject any offers. Adoption of Resolution for Submittal of the Riverside Park Grant Application to the North Carolina Public Beach and Waterfront Access Program The Commissioners adopted a resolution for submittal of the Riverside Park Grant application to the North Carolina Public Beach and Waterfront Access Program in the amount of $17,625 with a County Match of $3,375 in cash and $2,500 in-kind services as allocated in the FY 1995-96 Budget for the Parks Department. 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 XXII, Page 36. Approval of Budget Amendment #95-0217 - New Hanover County Library The Commissioners approved the following Budget Amendment: 95-0217 Library Debit Credit Librarv Contribution-Book Sale Lost Books $5,748 $3,948 Books & periodicals $9,696 Purpose: To budget the greater than estimated revenues from book sale, gifts, and payment for lost books to purchase additional library materials. Approval of Budget Amendment #95-51 - Sheriff's Department The Commissioners approved the following Budget Amendment: 95-51 Controlled Substance Tax - Sheriff's Department Debit Credit Controlled Substance Tax Controlled Substance Tax $8,372 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 727 (Budget Amendment #95-51 continued) Debit Credit Controlled Substance Tax Capital Outlay $8,372 Purpose: To increase the budget for revenue received May 18, 1995 in the amount of $8,371.70. Controlled Substance Tax funds are budgeted as received and must be used for law enforcement activities as the Sheriff deems necessary. Approval of Budget Amendment #95-0201 - Cooperative Extension Debit Credit Cooperative Extension Child Care Block Grant $29,434 Salaries and Wages FICA Health Insurance Telephone printing Supplies Training/Travel Equipment $22,000 1,487 2,070 161 200 1,000 1,800 716 Purpose: To increase the budget for the Cooperative Extension Service to accept an award of another Child Care and Development Block Grant. The grant application was approved by the Commissioners at the regular meeting of October 17, 1994. Report of Budget Amendment #95-0211 for Entry Into the Minutes The following Budget Amendment was reported for entry into the minutes: 95-0211 Non-Departmental/Outside Agencies/Economic & Physical Debit Credit Non-Departmental Contingencies $1,500 Outside Aqencies/Economic & Physical Chamber of Commerce $1,500 Purpose: To transfer funds from contingencies for a contribution to the Greater Wilmington Chamber of Commerce for support of the Legislative Weekend to be held in New Hanover County. The funding was approved by the Board of County Commissioners on May 15, 1995. Adoption of Resolutions Related to the Sale of Surplus Property Owned by the City of Wilmington and New Hanover County - 1103 Dawson Street, 1107 Dawson Street, 707 Meares Street The Commissioners adopted resolutions proposing acceptance of offers for the sale of the following properties: Parcel Number R0054-10-023-007.000 R0054-10-023-010.000 R0054-13-009-011.000 Address 1103 Dawson 1107 Dawson 707 Meares Amount of Offer Offer St. $1,200 St. $2,600 St. $1,500 Tax Value $1,865 $2,364 $2,376 Offerer: New Covenant Holiness Church - 1103 Dawson Street 1107 Dawson Street Offerer: Phillip & Gloria Fields - 707 Meares Street Copies of the resolutions are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXII, Page 36. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 728 REVIEW OF FY 1995 - 9 6 RECOMMENDED FUNDING REQUEST FOR THE NEW HANOVER COUNTY SCHOOLS Ms. Janice Cavenaugh, Chairman of the Board of Education, expressed appreciation for being allowed to appear before the Board and reported on the rising costs in school construction, maintenance, utilities, and personnel. She requested the Commissioners to approve the budget request as submitted, which was prepared in the most economical manner possible. Dr. Dale Martin, Superintendent of Schools, reported when beginning the budget process for schools, all department heads submitted budget requests that totaled $14.5 million. After review by the Administrative Staff and the Board of Education, the figure was reduced to $3.5 million for FY 1995-96. He requested the Finance Director, Roy Keith, to comment on the proposed school budget and answer any questions. Mr. Roy Keith reported because of legislative mandates the budget process for schools had many unknowns. All costs must be estimated eight to sixteen months in advance, pay raises must be approved by the State Legislature, fringe benefits must be estimated, and the number of teachers and teacher assistants must be forecasted based upon the student population. The School System feels the State Legislature inflicts more negative impacts on the schools than on county governments because of increased mandates, changes, and year to year fluctuations. The School System has no choice but to be proactive during the budget process and reactive after the State Legislature adjourns in July. The local budget is a sole source of funds, particularly in the areas of maintenance, utilities, and capital outlay. The schools deal in averages, not absolutes; therefore, a line item may be overestimated instead of underestimated. The School System is honest and forthright with its customers, and there is no padding, fudging or intent to mislead anyone. The schools practice fiscal conservatism by addressing the most critical needs of the students. A lengthy discussion was held on maintenance of the school buildings and the definition of maintenance. Mr. Keith explained that routine maintenance was the repair of buildings already in existence, such as painting and other minor repairs; whereas, renovations or major repair projects were interpreted as capital outlay. vice-Chairman Mathews expressed concern for the lack of maintenance at the schools with reports that funds allocated for maintenance were not being spent for this purpose. He commented on a recent tour of the schools by members of the County Staff to see areas that had been repaired, and reported Staff was shown areas in need of repair instead of repairs that had occurred. He requested that some form of accountability be established to insure that County appropriated maintenance funds were being spent for maintenance of existing schools. He, also, stressed the importance of providing structurally sound and safe classrooms for the students before beginning other projects. Dr. Martin explained that County Staff had requested a tour of certain buildings; therefore, those school facilities were visited. As to maintenance, the School Administration had been forwarding monthly reports as requested by the Commissioners several months ago. Commissioner Sisson expressed concern for repalrs being improperly done and stressed the importance of using the right procedures and materials when repairing the school buildings. Dr. Martin agreed with Commissioner Sisson and stated all repair projects should be performed correctly; however, funds in the amount of $29 million would be needed to make the necessary repairs that have been neglected for years. Also, renovation funds had to be used last year to purchase 13 portable units at $35,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 729 each because of the desperate need for additional classrooms. He assured the Commissioners that the Board of Education and School Administration were frustrated about the lack of maintenance and stated this problem could not be resolved overnight. vice-Chairman Mathews responded the Commissioners were aware that school maintenance had been neglected for years; however, there should be a way to know that County appropriated funds have been expended for maintenance and repairs to the existing school facilities. Commissioner Sisson expressed concern for hearing that bids had come in at $168 per square foot when the State had indicated a standard construction cost of $78 per square foot. He stressed the importance of reducing the cost per square foot and recommended advertising the bids on a statewide basis. Dr. Martin responded the School Administration had advertised on a statewide basis and was disappointed in the bid quotations. After checking into the matter, it appears that the construction cost per square foot in an area from Wilmington to Raleigh, and from Raleigh to Charlotte, had increased 30% in the last three months. The Board of Education has not agreed to construct a building at $168 per square foot; however, contractors cannot be forced to submit a reasonable bid. Mr. Jack Claywell, a representative of Boney Architects, Inc., reported bids had been let on two elementary schools, and the construction cost had increased by 30%. Also, the cost of renovating a structure is approximately 1.5 times more than new construction because of the work being labor intensive. At the Ogden Elementary School, the cost for renovating and expanding the cafeteria was $117,000 with only $140,000 budgeted to that school; therefore, funds were not available to construct two new classrooms. Commissioner Sisson responded a school policy must be developed to stay within the budget because the people at Ogden Elementary School were led to believe that two new classrooms would have priority over the cafeteria when voting on the school bond issue. He recommended bidding the proj ect out of state before letting contracts for inflated figures. Dr. Martin volunteered to forward a copy of the items listed in the original bond issue. He advised the Board that persons living in the Ogden area were informed of the following construction and renovation items: (1) construction of the cafeteria addition; (2) renovation of the administrative area, common area, and walkway cover; (3) removal 0 f the underground storage tank and asbestos materials in the buildings; (4) renovations of the restrooms and entrances; (5) new signage; and (6) parking as required by the Americans with Disabilities Act for a total budget of $224,000. At no time was the construction of two classrooms mentioned. After discussion with the school principal, the cafeteria renovation was named as the first priority, and bids were let and received at a cost of $117,000 with only $140,000 budgeted for the fiscal year. In good faith, Mr. Fred Tedder and members of the Administrative Staff met with the Ogden PTA and explained that $140,000 had been budgeted for the fiscal year; therefore, with a bid quote of $117,000 for the cafeteria renovation, funds would not be available for the construction of any new classrooms. He expressed concern for people adding projects to the list of projects that were presented to the voters in original bond issue. Commissioner Sisson responded that certain adjustments were made to the original bond list, such as eliminating the walkway cover or not removing some of the asbestos, and this led people to believe that extra money would be available for classroom additions. He, again, expressed concern for cost overruns, the NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 730 inability to receive responsible bids, and limited funds that will not increase without another bond issue, which, in his opinion, will be difficult to pass. vice-Chairman Mathews inquired as to why a Hoggard Football field was removed from funds maintenance? study for the budgeted for Mr. Keith responded the study was considered a maintenance function and was paid from that account. Commissioner Sisson expressed concern for the lack of communication between the Board of County Commissioners, the Board of Education, and the School Administration and urged that the lines of communication be opened to better address the school needs. Commissioner Barone commented on attending the Board of Education meeting held on April 18, 1995, and expressed concern for the members of the Board of Education voting on the budget without being aware of its contents. Later, she learned the Finance Committee, the group responsible for working through the budgetary process, had not met as a committee to discuss the budget with the department heads. She asked why the Finance Committee did not meet with the department heads until after the budget had been approved on April 18, 1995, and forwarded to the County Commissioners? Ms. Janice Cavenaugh, Chairman of the Board of Education, responded to the best of her knowledge every member of the Board of Education had been updated on the budget and its contents when holding the meeting on April 18, 1995; therefore, she did not ask any questions. Ms. Allene Keith, a member of the Finance Committee, reported the Committee did not meet prior to April 18, 1995; however, discussion was held with the School Administration on all departmental budget requests. During the budget process, it became apparent that a "zero" based budget could not be prepared for FY 1995-96; therefore, the Finance Committee prepared the budget based upon discussion and review of the departmental requests with the School Administration. She stated, in her opinion, the departmental recommendations presented in the budget were reasonable. Also, once the funds are appropriated, the Finance Department will individually question the Administrative Staff as to how the monies will be allocated among the different departments and how the funds will be spent for the different school needs. She reported the Finance Committee will perform a "zero" based budget for FY 1996-97 to better inform the Board of County Commissioners and general public about school expenditures. Commissioner Barone reported on being informed by a member of the Board of Education that approximately $750,000 of savings had already been earmarked from the meetings held with department heads, and she inquired as to why no response had been received from her letter forwarded to the Board of Education's Finance Committee requesting the school budget to be reduced by that amount? Ms. Keith responded that budget adjustments had been made during the school year; therefore, she felt the $750,000 was one line item or a surplus. Dr. Martin commented on the inability of the School System to know the impact of the State budget on the schools until that budget is adopted; therefore, the Board of Education has to appear before the County for a funding request without knowing the State figures. Consequently, the $750,000 that has been seen as a line i tern surplus could be needed to replace a shortage of funds received from the State. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 731 Commissioner Barone expressed appreciation for the response by Dr. Martin but strongly objected to not receiving a letter of explanation from the Board of Education. She also disagreed with Ms. Cavenaugh about the members of the Board of Education being aware of the items in the school budget, and reported when one member of the Board of Education did inquire about the budget, she was treated disrespectfully at the April 18 meeting. Commissioner Barone recommended a change in policy that would allow all members of the Board to participate in the budget process. Ms. Cavenaugh disagreed with the statements by Commissioner Barone and reported every member of the Board of Education received a copy of the budget well in advance and had an opportunity to discuss concerns with the Finance Officer, the Superintendent, and departments. There was no reason for any member not to be well informed, and no one was locked out of the budget process. Commissioner Barone commented on the generosity of the Board of County Commissioners with an additional $100,000 donated from a lottery scam, an additional $10,000 for improvements to athletic fields, an additional $205,000 to purchase land for the northern elementary school site, and an additional $1,065,000 for the Siemens Building because of a glitch in financing. She, also, expressed concern for the statement made by Charles (Duke) Lineberry, a member of the Board of Education, at the April 18 meeting relative to the lawsuit that occurred in Brunswick County because the Brunswick County Board of Commissioners did not provide the requested funding. She reported, in her opinion, the Board of County Commissioners had been very responsive to school needs. Ms. Cavenaugh responded this matter could be discussed with Mr. Lineberry. Commissioner Barone expressed concern for the rudeness of the Board of Education and School Administration to persons speaking in opposition to the Pre-Kindergarten Program, and she inquired as to what will happen to the 59 children who did not pass kindergarten, which is the legal responsibility of the School System? Dr. Martin reported the children that did not pass kindergarten would be required to go through kindergarten agaln under State and County funding. Commissioner Sisson requested the Board of Education to work with the County Commissioners in trying to resolve some of the problems mentioned at the budget hearing. Ms. Cavenaugh welcomed the invitation and reported the Board of Education would be glad to discuss any items of concerns with the Board of County Commissioners. Appreciation was expressed to the County Manager for his cooperation at all times, and to the Tax Department and Planning Department for their assistance to the schools. Dr. Martin expressed appreciation to County Manager O'Neal and his entire staff for their cooperation during the past year. Ms. Allene Keith reported the Finance Committee provides public notice of its meetings, and she invited the Commissioners to feel free to attend at any time. She emphasized the importance of the Commissioners understanding that members of the Finance Committee take their responsibilities very seriously and make every effort to assure that funds are allocated and spent in the proper manner. Chairman Greer inquired as to whether $78 was considered by the State as the standard construction cost per square foot? Dr. Martin responded the State's standard was $78 per square NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 732 foot; however, the bids received for the northern and southern elementary schools were considerably higher. Chairman Greer expressed concern for maintenance funds being used to fund a study for the football field, and he requested Dr. Martin to be sure that funds designated for maintenance were used to repair buildings. Ms. Cavenaugh agreed and recommended establishing a common definition of maintenance so both boards would use the same interpretation. Chairman Greer, on behalf of the Board, expressed appreciation for the remarks received and reported in order to meet the local school needs, the members of the Board of County Commissioners and Board of Education must work cooperatively together and open up the lines of communication. BREAK Chairman Greer called a break 8:05 P.M. until 8:25 P.M. REVIEW OF FY 1995 - 9 6 RECOMMENDED FUNDING FOR THE NEW HANOVER COUNTY DEPARTMENT OF SOCIAL SERVICES (DSS) Director of Social Services, Wayne Morris, reported after working with the County Manager and Staff, the Board of Social Services and Staff were satisfied with the recommended budget. He commented on welfare reform currently being discussed in Congress and reported the Department of Social Services could be confronted with drastic changes. Chairman Greer, on behalf of the Board, expressed appreciation to Director Morris for the budget presentation. REVIEW OF FY 1995 - 9 6 RECOMMENDED FUNDING FOR THE NEW HANOVER COUNTY HEALTH DEPARTMENT Heal th Director, Robert S. Parker, reported the Board of Heal th had a few concerns with the recommended budget, and he introduced Mr. Mark A. Veenstra to comment on these concerns. Mr. Veenstra expressed appreciation to the County Staff for the assistance given with preparing the budget, but expressed concern for the deletion of the following items: (1) a full-time clerk in the Animal Control Department; and (2) a capital request for an on-site generator at the Animal Control Center. He reported on the current procedure used for collecting fees and the amount of papers that have to be processed by the Animal Control Center. During the month of March, 1,900 renewal notices were mailed with 1,600 returned paid and 600 delinquent. With only a part-time clerk position, the records are now two and one-half months behind. Currently, the records are being processed by the part-time clerk and overtime pay to Animal Control Officers, which has amounted to more than $10,000 during the past year. The Board of Health feels the additional $6,000 required for a full-time clerk position would allow the system to run more efficiently and cover this cost with increased revenue from the collection of fees. The Commissioners were requested to include the full-time clerk position in the FY 1995-96 Budget. Mr. Veenstra reported an on-site generator was recommended by the Building Committee during the construction of the Animal Control Center, but deleted at the time of bidding due to budget constraints. He commented on the need to maintain air- conditioning and ventilation in the animal area during power outages, and requested the Commissioners to include an additional $18,000 in the FY 1995-96 Budget for purchase of a generator. Commissioner Barone inquired as to whether there was a "Friends of Animal Control" group? NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 733 Animal Control Director, Ron Currie, responded no group of this type was in place; however, the Animal Control Center was ln the process of establishing a volunteer program. Commissioner Barone commented on the Retired Seniors Volunteer Program and recommended contacting this group to assist with the workload at the Animal Control Center. She asked the County Manager if this could be arranged? County Manager O'Neal responded he would be glad to check into the matter and report back to the Board. Discussion was held on the request for a part-time position becoming a full-time position. County Manager O'Neal responded the Human Resources Department had a part-time temporary position that could possibly be assigned to this type of project. Chairman Greer, on behalf of the Board, expressed appreciation to Mr. Veenstra for the budget presentation. REVIEW OF FY 1995 - 9 6 RECOMMENDED FUNDING FOR THE NEW HANOVER COUNTY SHERIFF'S DEPARTMENT Sheriff Joe McQueen reported if consolidation should occur, some additional equipment would be needed; however, he was pleased with the County Manager's recommended budget. He commented on the increasing number of inmates and reported an additional nurse was needed in the main j ail during night hours. Currently, the deputies are dispensing medicine, which removes them from their regular duties and could create a problem with dispensing the wrong medication. The Commissioners were requested to provide another nurse position for the main jail. Sheriff McQueen commented on the recent 911 Center power outage and reported a backup unit was being constructed to back up the existing system. He complimented the Director of Emergency Management for his assistance during the incident. In closing, Sheriff McQueen expressed appreciation for the pay plan market adjustment and merit raise included in the FY 1995-96 Budget. Chairman Greer, on behalf of the Board, expressed appreciation to Sheriff McQueen for the budget presentation. REVIEW OF FY 1995 - 9 6 RECOMMENDED FUNDING FOR THE SOUTHEASTERN CENTER Southeastern Center Area Director, Art Costantini, advised the Board that a majority of the increased funding would be used to provide a salary increase for employees who had not received a raise during the past four years. He reported the pay scale was 21% lower than the average pay plan throughout the State; therefore, the pay scale needed to be upgraded in order to compete with the Department of Social Services and Health Department for nurses and social workers. He commented on the current budget deficit and reported next year the Southeastern Center would be operating in the black with a fund balance. Appreciation was expressed to the Commissioners for the recommended budget request. Commissioner Caster expressed appreciation to Dr. for the job being performed and wished him well with his address the problems at the Southeastern Center. expressed appreciation to Commissioner Sisson for Commissioners informed about the problems that experienced at the Southeastern Center. Costantini efforts to He, also, keeping the have been REVIEW OF FY 1995-96 RECOMMENDED FUNDING FOR CAPE FEAR COMMUNITY COLLEGE Dr. Eric McKeithan, President of Cape Fear Community College, expressed appreciation to the Commissioners and County Staff for the cooperative manner in which the County had work with Cape Fear NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 734 Community College during the past year. He advised that $1.9 million had been requested; however, the College was pleased with the recommended budget of $1.5 million. Presently, the College was in the process of downsizing, and the Trustees were working toward increasing the fund balance to $250,000 to provide a two-month operating reserve. Commissioner Barone commented on the full utilization of the classrooms at Cape Fear Community College and congratulated Dr. McKeithan and Staff for this accomplishment. She also expressed appreciation to the Board of Trustees for allowing the College to remain in the downtown area. Commissioner Sisson requested Dr. McKeithan to present a long- range plan for preventative maintenance of existing buildings, a cost proj ection of maintenance for the new buildings, and the projected increase in utilities when the new buildings are occupied. Dr. McKeithan responded he would be glad develop a plan and forward a copy to the Commissioners. Commissioner Caster inquired as to whether the State had allocated the final bond funds? Dr. McKeithan reported the percentage would be distributed on a pro-rata basis, which means Cape Fear Community College should receive approximately $800,000. Also, bills have been introduced in the State Expansion Budget and State Capital Budget with the possibility of the College receiving $2.5 million from the State Capital Budget. Chairman Greer, on behalf of the Board, expressed appreciation to Dr. McKeithan for the informative presentation. PUBLIC HEARING ON THE PROPOSED FY 1995-96 BUDGET FOR NEW HANOVER COUNTY Chairman Greer opened the Public Hearing and requested all persons to limit their remarks to three minutes. Comments from the General Public Mr. Robert Kendrick, a concerned taxpayer, reminded the Chairman of his words, "spend less and raise no taxes." He expressed disappointment on the proposed 3.5 cent tax increase recommended by a Republican controlled Board of County Commissioners, and reported this was not fair to the taxpayers who wanted less government. Mr. Dana Page, a resident of 410 John Mosley Drive, commented on a survey performed by the Christian Coalition of New Hanover County and reported the Chairman had responded that he supported cutting county spending instead of raising taxes to balance the County budget. Now, a budget has been presented with a 3.5 cent tax increase. He expressed concern for the following items: (1) budget cuts being made in Raleigh and Washington with no budget cuts being made in New Hanover County; (2) the County's coding procurement process whereby 71% of the vendors are out-of-town with only on 29% being local; (3) the organizational structure of the County, which represents too much government with no need for the Human Relations Department and the Print Shop; and (4) the lack of effort given to merging the City and County Human Resources Departments, the Parks Departments, the Planning Departments, and privatization of the Cape Fear Museum. Mr. Page reported that County budgets had tripled in thirteen years, and it was time to reduce the number of departments and employees. Commissioner Barone requested an explanation as to why 71% County business was performed by out-of-county vendors. Chairman Greer commented on time constraints and requested Mr. Page to mail the information requested to Commissioner Barone. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 735 Budget Presentation by the Ogden-New Hanover Rescue Squad Mr. Phil Rhodes, Chief of the Ogden-New Hanover Rescue Squad, explained that rescue services were contracted through the Emergency Medical Services Department of New Hanover County. He requested additional funds in the amount of $22,812 to cover repairs to the bay doors and parking facility at the Carolina Beach Road station, and to provide a salary increase to the full-time clerk, at a salary below $14,000, who has not received a raise in the past five years. Chairman Greer, on behalf of the Board, expressed appreciation for the budget presentation. Budget Presentation by Elderhaus, Inc. Ms. Linda Pearce, Executive Director of Elderhaus, expressed appreciation to the County Manager for the funds recommended, but requested the Commissioners to fund the additional $7,010 presented in the original budget request. She commented on the increase in the number of patients and reported the additional funds were badly needed because of increased food costs, gas for the mini-van, insurance, and minor campaign costs. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Pearce for the budget presentation. Budget Presentation by the Community Penalties Program Ms. Sherri S. Yelton, Executive Director of the Community Penalties Program, Inc., presented an information packet and requested Mr. Dickson B. Baldridge, a member of the Community Penalties Program Board of Directors, to make the budget presentation. Mr. Baldridge requested the Commissioners to approve the budget request in the amount of $13,500 for the Community Penalties Program, Inc. He reported the program provides a valuable service to the taxpayers of the County as well as to the persons who have been victims of criminal acts. The main objective of the program is to reduce prison overcrowding by providing Judges with alternative sentencing options. The current cost for incarceration of one inmate per year is $23,000 in the State of North Carolina. Since July 1994, the Community Penalties Program has presented 44 cases in Court, of which 38 were accepted by the Judge. This has resulted in a savings of more than $874,000 to North Carolina taxpayers. Also, more than $3,000 has been returned to victims, and offenders have performed 633 hours of Community Service Work. The Commissioners were advised that a contribution on the County level was required to continue the program in New Hanover County. Mr. Baldridge requested the Commissioners to approve the full funding request because this program renders a service to the County that no other agency provides at a savings to the taxpayer. Mr. Darryl Bruestle, a member of the Community Penalties Program, Inc. Board of Directors, reported the composition of the Board represents all areas of the Criminal Justice System and is very much supported by this system. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Yelton for the budget presentation. Budget Presentation by Cape Fear Council of Governments Ms. Rose Ann Mack, Executive Director of the Cape Fear Council of Governments, introduced Mr. Linwood Norris, Chairman of the Cape Fear Council of Governments and a member of the Columbus County Board of Commissioners. Ms. Mack expressed appreciation to the Board for past support of the Cape Fear Council of Governments and presented a report on the following services provided by the agency: (1) the Job Training Partnership Programs; (2) services provided to the aging with a state certified Ombudsman visiting area nursing homes and NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 736 rest homes; and (3) coordination of the activities of the Emergency Medical Services Advisory Committee to plan training programs, in Basic Trauma Life Support, pediatric Advanced Life Support, and Critical Incident Debriefings. She commented on increasing costs for services rendered by the Cape Fear Council of Governments and requested the Commissioners to approve a funding request of $15,930, which was $2,234 over the County Manager's recommended budget. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Mack for the budget presentation. Budget Presentation from the Lower Cape Fear Hospice Ms. Wendy Block reported she was Chairman of a $4.2 million fund-raising effort to build a 12 -bed facility for Hospice to better serve the community. She requested the Executive Director of Hospice, Eloise Thomas, to present the budget request. Ms. Eloise Thomas commented on the reasons for people choosing Hospice services and reported the Lower Cape Fear Hospice was planning to construct the first Hospice residential In-Patient Center in Southeastern North Carolina. The Center will be located near Wilmington's major medical centers and is designed to provide a peaceful environment for terminally ill persons and their families. The Commissioners were requested to provide capital funds in the amount of $20,000 per year for three years totalling a contribution of $60,000. Chairman Greer inquired as to whether Hospice would be requesting funds from surrounding counties? Ms. Thomas responded since the facility would be located in New Hanover County, the Board of Directors decided not to ask surrounding counties to contribute to the capital project. However, funds have been received from other counties in the amount of approximately $1,500 per year for operating costs. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Thomas for the budget presentation. Budget Presentation by the Child Advocacy Commission Ms. Amy Hamme, Executive Director of the Child Advocacy Commission, expressed appreciation to the County Manager for the $20,000 funding recommendation, but requested approval of the original budget request in the amount of $22,000. She presented background information on the growth in services rendered by the Child Advocacy Commission and presented a status report on each program. Commissioner Caster inquired as to the total budget for the Child Advocacy Commission? Ms. Hamme responded the budget was $208,877, including the Family Nurturing Program. Commissioner Sisson inquired as to the amount of money raised through private fund raisers? Ms. Hamme responded that $27,000 had been raised this year. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Hamme for the budget presentation. Budget Presentation from the Committee of 100 Mr. Peter Fensel, representing the Committee of 100, expressed appreciation for the current and past support of the Committee of 100, and requested the Commissioners to consider funding at $60,000 instead of $50,000 as recommended by the County Manager. He advised that the New Hanover County Committee of 100 was one of the smallest funded economic development committees among the NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 737 surrounding counties with Brunswick County contributing $200,000 to its agency. The Commissioners were requested to reconsider the funding request and approve the additional $10,000 as originally submitted. Chairman Greer, on behalf of the Board, expressed appreciation to Ms. Fensel for the budget presentation. Funding Request From Coastal Horizons Center, Inc. Mr. Margaret Weller-Stargell, representing Coastal Horizons Center, Inc., expressed appreciation to the Commissioners for support of Crisis Line Open House and the Rape Crisis Center. She reported Crisis Line Open House had received a reduction in CBA funding based on the number of youth served that had been referred by the Juvenile Court. She presented background information on the clients served and requested the Commissioners to approve a one- time funding request in the amount of $18,692 to offset the CBA funding reduction. Funding Request from WHQR Public Radio Mr. Michael Titterton, representing WHQR Public Radio, expressed appreciation for the funding recommendation in the FY 1995-96 Budget. He commented on the difficulties that will be experienced in Public Radio with the lack of federal funding, and reported WHQR plans to raise private funds through fund raisers and other various events. He, again, expressed appreciation for support of public radio. Commissioner Barone advised Mr. Titterton she would be glad to help with any fund raising events. Funding Request from the New Hanover County Veterans Council Mr. E. T. Townsend, Secretary of the Veterans Council, expressed appreciation for the County funding a Veterans Services Officer and presented background information on the number of clients served and revenues generated by the Veterans Council since the position had been filled. Chairman Greer, on behalf of the Board, expressed appreciation to Mr. Townsend for the hours of volunteer time given to assist the veterans in New Hanover County. Chairman Greer closed the Public Hearing on the proposed budget and reported the funding requests would be considered and final action would be taken before June 30, 1995. BREAK Chairman Greer called a break from 9:50 P.M. until 10:05 P.M. PUBLIC HEARING TO CONSIDER REZONING 363.17 ACRES ON THE NORTHWEST SIDE OF US HIGHWAY 17 WEST OF MIDDLE SOUND ROAD FROM R-15 RESIDENTIAL TO R-10 RESIDENTIAL (325.77 ACRES) AND B-2 BUSINESS (37.40 ACRES) FROM R-15 RESIDENTIAL (Z-535, 5/95) Chairman Greer opened the Public Hearing. Planning Director, Dexter Hayes, reported the Planning Board decided to vote separately on the petition since it consisted of two parts. The Planning Board voted 5 to 2 to recommend approval of rezoning 325.77 acres from R-15 Residential to R-10 Residential concluding the rezoning would not be inconsistent with the Land Use Plan. The Planning Board pointed out that Staff's concerns about sewer capacity limits were moot because the lack of capacity would limit all development, regardless of the zoning classification. Opponents argued that limits on the sewer capacity should be addressed before approving an increase in density, which would further degrade an already bad traffic pattern in the area. The Planning Board voted 5 to 2 to recommend denial of rezonlng 37.40 acres from R-15 Residential to B-2 Business. The Planning Board felt the proposed extension would be a significant NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 738 increase in the depth of the existing commercial district, which would be inconsistent with previous decisions by the County to limit the overall depth to its current location. However, not wanting to leave an R-15 strip between the area recommended for R- 10 and the existing B-2 area, the Planning Board voted unanimously to rezone the area proposed for B-2 Business (37.40 acres) by the petitioner to R-10 Residential. Mr. Dallas Harris, the petitioner, reported historically his company had tried to build affordable houses with the need for smaller lots. As to the need for expanding sewer and the impact of this project on the Ogden Interceptor, he was willing to participate in the County's capital expenses for expansion of the sewer. He reported very minimal commercial property was available from Highway 17 back through the Gordon Road area; therefore, the B-2 would allow for the commercial tracts to be developed with the use of back roads instead of allowing continued strip commercial zoning along Market Street. Mr. Harris requested the Commissioners to approve the R-10 Residential zoning for more density and B-2 Zoning for commercial tracts as requested. vice-Chairman Mathews inquired as to how traffic congestion would be addressed? Mr. Harris responded there would be three access points: (1) an access that would be shared with the south side of Ogden Park; (2) an access through the Granville Ryals tract; and (3) an access at the Bayshore stoplight. vice-Chairman Mathews responded he would rather see shopping centers placed a distance from the road with service roads in lieu of strip commercial zoning on Market Street. Chairman Greer reported under an ideal situation, commercial development should be off of the main road with various access points; however, if the property is rezoned to B-2 Business, there is no way to ensure this type of development would occur. If the property is zoned R-10 residential as recommended by the Planning Board, then commercial petitions can be submitted in the future as needed. Mr. Harris reported constructing houses lS more profitable; however, it was felt the community would be better served with commercial uses in the neighborhood. Chairman Greer closed the Public Hearing. Commissioner Sisson commented on the remarks about affordable housing made by Mr. Harris and pointed out that affordable can be perceived in two ways: (1) The cost of affordable housing to the home buyer. (2) The cost of affordable housing to the County with the development of 246 additional homes which will severely impact the following items: (a) Traffic on Gordon Road, which lS already at gridlock during peak hours. (b) Student capacity of the new elementary school to be constructed on Gordon Road will be reached before the school is completed. This will negate any relief that was to have been given to the Ogden Elementary School, which is already overcrowded. The County may have to construct a new school. (c) The sewer capacity in this portion of the County has almost reached it capacity. with an additional 246 homes, the County will have to incur the cost NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 739 of maintaining and building the facilities to handle this capacity before the Northside Treatment Plant is constructed. (d) The new homes will create an additional load on the fire and other emergency services. Commissioner Sisson stated, in his opinion, the County should not approve projects of this size until some of the infrastructure needs have been addressed by the County. Mr. Harris responded traffic will not go away and people will continue to move into New Hanover County. With the proposed B-2 Business zoning, the amount of sewer would be less, and the tax base would be greater. Also, the proposed proj ect will remove traffic from Market Street. Commissioner Sisson responded when performing a survey during the Land Use Plan Update, the two major concerns by the citizens were pollution of the surface waters and traffic in an already congested area. Mr. Harris responded the developer is required to install the water and sewer lines with payment of a tap fee. If these fees are not adequate to cover the costs, the County should increase the user fees. Commissioner Sisson recommended remaln R-15 Residential instead of rezonlng the property to R-10. allowing the property increasing the density to by Mr. Bill Grathwol commented on serving as a member of the New Hanover County Planning Board for a number of years and explained that the only difference between urban transition and limited transi tion was water and sewer. The developers have already provided water and sewer in the transitional area being considered. Mr. Grathwol reported he had given the County a significant water and sewer system, and he was now in the process of acquiring a 500,000 gallon water tank at a cost of $500,000 to construct and give to the County. He expressed concern for the remarks made by Commissioner Sisson and stated that developers have contributed their fair share to New Hanover County. Commissioner Sisson responded he was not diminishing the contributions made by developers; however, he was trying to point out that the proposed development would increase the potential density in those areas, which over a period time will not pay for itself because of the increased demand for urban services. Chairman Greer closed the Public Hearing. Motion: Commissioner Sisson MOVED to leave the property zoned R- 15. THE MOTION FAILED DUE TO NOT RECEIVING A SECOND. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Mathews to rezone the entire tract to R-10 as recommended by the Planning Board. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barone Commissioner Caster Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Sisson A copy of "AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF ZONING AREA NO. 8B OF NEW HANOVER COUNTY, NORTH CAROLINA ADOPTED JULY 7, 1972," is hereby incorporated as a part of the minutes and is contained in Zoning Book II, Section 8B, Page 47. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 740 PUBLIC HEARING TO CONSIDER A REQUEST BY MICKI WEISNER ET AL TO REZONE 3.1 ACRES ON THE EAST SIDE OF US HIGHWAY 421 SOUTHEAST OF SANDERS ROAD TO B-2 BUSINESS FROM R-15 RESIDENTIAL (Z-537, 5/95) Chairman Greer opened the Public Hearing. Planning Director, Dexter Hayes, reported the Planning Board voted 6 to 1 to recommend approval of rezoning 3.1 acres on the east side of Carolina Beach Road at Sanders Road from R-15 Residential to B-2 Business. The Planning Board noted the rezoning would be consistent with the policies of the Land Use Plan and compatible with similar zoning on adjacent parcels. The lone dissenter felt the request was inconsistent with the Land Use Plan because County sewer was not readily available, and the request was simply a case of rezoning for the sake of rezoning, which was not a prudent approach to land use management. Chairman Greer inquired as to whether anyone from the general public would like to comment. The following remarks were received: Ms. Micki Weisner, an associate broker with Hanover Realty, requested the Commissioners to rezone the entire tract to B-2 Business since it was surrounded by commercial uses. Commissioner Sisson inquired as to whether any concerns had been received from adjacent property owners. Planning Director Hayes responded no concerns had been received. Chairman Greer closed the Public Hearing. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barone to approve rezoning 3.1 acres of land on the east side of Carolina Beach Road at Sanders Road from R-15 Residential to B-2 Business as recommended by the Planning Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of "AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF ZONING AREA NO. 4 OF NEW HANOVER COUNTY, NORTH CAROLINA, ADOPTED JULY 7, 1972," is hereby incorporated as a part of the minutes and is contained in Zoning Book I, Section 4, Page 45. PRESENTATION ON THE SALE OF SCHOOL BONDS Deputy County Manager, Andrew J. Atkinson, reported the County would be using fixed and variable rates as a component of the $21 million school bond sale scheduled for August 8, 1995. He requested the Director of Finance, Bruce Shell, to explain the process. Finance Director Shell reported the investment advisors, John Barnes and David Fischer, has recommended the use of fixed and variable rates. It is the intent of the Finance Department to budget yearly the amount of the fixed rate and pool the reserves over a period of time to allow for changes in the variable rate. Staff feels an annual savings will accumulate in the separate fund to offset higher interest rates in future years. The risk involved would be an increase in short-term rates; however, the consultants feel this would be unlikely. Charts were presented reflecting the savings that should be accrued with fixed and variable rates. The County's investments range from $40 to $70 million depending on the time of the year. If the lowest earnings, which is a conservative daily rate, are compared with the average tax exempt note rate, the earnings will remain above the figure borrowed; therefore, the County will be protected from having to increase the tax rate if interest rates should accelerate. The rating agencies suggest a benchmark of 20% for the County's total debt as a variable rate in order to be safe and flexible. With the proposed bond sale, the County will have 6% of the total debt at a variable rate. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 741 In summary, Finance Director Shell reported out of the $21 million dollar bond issue, $12 million would be sold at a fixed rate with $9 million being sold at a variable rate. Discussion was held on why the figures of $12 million and $9 million were selected. Deputy County Manager Atkinson commented on this being the first time the County had used a variable rate and stated Staff felt the County should be conservative until the process of tracking and monitoring the issue had been determined. Commissioner Barone complimented staff for an innovative financing policy and reported she felt the risk factor was very minimal. County Manager O'Neal reported no action was necessary; however; he felt the Board should be completely informed on the debt service structure. SECOND READING OF AN ORDINANCE TO OBTAIN METERED ELECTRICAL SERVICE PRIOR TO CERTIFICATE OF OCCUPANCY, SECTION 5-110, CHAPTER 5, ARTICLE IV OF THE NEW HANOVER COUNTY CODE Chairman Greer announced a second reading of the proposed ordinance was scheduled since the ordinance was not unanimously adopted at the first reading held on May 15, 1995. He reported the ordinance had amended with the following disclaimer statement: Upon any subsequent violation, the said developer/builder shall be permanently disqualified from participating in the program. Chairman Greer inquired as to whether anyone from the general public would like to comment. No comments were received. Chairman Greer closed the Public Hearing. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to adopt the ordinance as amended. 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 XXII, Page 36. RATIFICATION OF THE APPOINTMENT OF FRED SPAIN TO SERVE ON THE DOMICILIARY HOME COMMUNITY ADVISORY COMMITTEE Chairman Greer requested ratification of the appointment of Fred Spain to serve on the Domiciliary Home Community Advisory Committee due to the resignation of Ms. Mariam Holt. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Mathews to ratify the appointment of Fred Spain to serve a one-year initial term on the Domiciliary Home Community Advisory Committee. The term is to expire May 31, 1996. Upon vote, the MOTION CARRIED UNANIMOUSLY. MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER & SEWER DISTRICT Chairman Greer convened from Regular Session at 11:05 P.M. Chairman Greer reconvened to Regular Session at 11:08 P.M. ADOPTION OF CAPITAL PROJECT ORDINANCES AND BUDGET AMENDMENTS 95-52, 95-53 AND 95-43 Finance Director, Bruce Shell, requested adoption of the Capital Project Ordinances to establish the budget for the construction of the Ogden Interceptor, NorthChase Interceptor, and Northside Wastewater Treatment Plant. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 742 Chairman Greer inquired as to whether englneers had been hired to design the NorthChase Interceptor? Assistant County Manager, Dave Weaver, reported no bid proposal had been developed. He reported the Ogden Interceptor would connect the new Northside Wastewater Treatment Plant with the Ogden area, which was a critical need. Commissioner Barone cautioned losing the one million gallon per day discharge permit into the Northeast Cape Fear River, and requested the County Manager to be sure this permit was kept in the same location. County Manager 0' Neal responded the capacity would not be lost. After further discussion, it was agreed for the County Manager to discuss this matter with Commissioner Barone sometime next week. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Caster to approve the Capital Proj ect Ordinances for the Ogden Interceptor, NorthChase Interceptor, and Northside Treatment Plant projects and the associated budget amendments. Upon vote, the MOTION CARRIED UNANIMOUSLY. Budget Amendment #95-52 Ogden Interceptor Capital Project Debit Credit Oqden Interceptor Installment Loan Proceeds $4,500,000 Oqden Interceptor Capital Project Expense $4,500,000 Purpose: To establish proj ect budget according to the Capital Project Ordinance. Funding in the amount of $19,000,000 was approved for the Northside Treatment Plant, Ogden Interceptor and NorthChase Interceptor at the Regular Meeting of the Board of County Commissioners held on May 15, 1995. Budget Amendment #95-53 NorthChase Interceptor Capital Project Debit Credit NorthChase Interceptor Installment Loan Proceeds $2,500,000 NorthChase Interceptor Capital Project Expense $2,500,000 Purpose: To establish proj ect budget according to the Capital Project Ordinance. Budget Amendment #95-94 Northside Treatment Plant Capital Project Debit Credit Northside Treatment Plant Installment Loan Proceeds $12,000,000 Northside Treatment Plant Capital Project Expense $12,000,000 Purpose: To increase the budget by $12,000,000 as approved at a Regular Meeting of the Board of County Commissioners held on May 15, 1995. Copies of the Project Ordinances are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXII, Page 36. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 743 APPROVAL OF CONSENT AGENDA ITEM #8, RESOLUTION TO AWARD CONTRACT #95-0320 TO VOLUND ECOLOGY SYSTEMS A/S FOR GRATE PARTS FOR THE VOLUND BOILER AT THE WASTEC FACILITY Chairman Greer inquired as to the amount of the freight and DDU costs on the bid to Volund Ecology System A/S for the purchase of grate parts for the Volund Boiler. Finance Director Shell responded the bid award was in the amount of $47,128.61 plus the direct duty tax of $25.30 plus freight. After discussion with the Purchasing Agent, the freight charges by Volund in previous purchases have been quite reasonable and should be less than $5,000. Motion: Chairman Greer MOVED, SECONDED by Commissioner Barone to award the contract to the Volund Ecology Systems A/S in the amount of $47,128.61 for grate parts with the DDU and freight charge not to exceed $5,000. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 36. ADOPTION OF RESOLUTION FOR THE SALE OF $5,000,000 SCHOOL BOND ANTICIPATION NOTES Motion: Chairman Greer MOVED, SECONDED by Vice-Chairman Mathews to adopt a resolution for the sale of $5,000,000 school bond anticipation notes on June 6, 1995. 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 XXII, Page 36. ADDITIONAL ITEMS - COUNTY MANAGER Budget Review Session Scheduled for June 19, 1995 Consensus: It was the consensus of the Board to schedule a Budget Review Session and adopt the FY 1995-96 Budget on June 19, 1995, following the regular meeting of the Board. ADDITIONAL ITEMS - COUNTY ATTORNEY Adoption of Resolution for Support of House Bill 1060 County Attorney Copley requested the Commissioners to adopt a resolution of support for House Bill 1060 to amend the General Statutes to allow the County to assume the debt of the City as required by Bond Counsel. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Sisson to adopt the resolution of support for House Bill 1060, an act amending the General Statutes relating to the consolidation of cities and counties and consolidated city-county taxation and finance. 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 XXII, Page 36. Approval of Settlement Agreement in Hicks v. New Hanover County County Attorney Copley requested the Commissioners to approve the settlement agreement for Hicks v. New Hanover County in the amount of $47,500. Commissioner Caster cautioned paying a settlement when the County is not liable, just because an insurance company has agreed to settle out of court. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 5, 1995 BOOK 24 PAGE 744 Commissioner Barone responded she would support the agreement because of the economics, but stressed the importance of not setting a precedent. Motion: Commissioner Barone MOVED, SECONDED by Chairman Greer to approve the settlement agreement for Hicks v. New Hanover County in the amount of $47,500. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the settlement agreement is on file in the Legal Department. ADDITIONAL ITEMS - COUNTY COMMISSIONERS Consideration of Establishing a Policy for Land Acquisitions and Building Site Improvements Paid by New Hanover County for the Volunteer Fire Departments Commissioner Sisson commented on the consolidation process and recommended adopting a policy, in lieu of amending the contracts with the Volunteer Fire Departments, to say that any County paid land acquisitions or building site improvements exceeding $15,000 would require the designation of New Hanover County as the secured credi tor under a deed of trust or a tenant in common over the realty involved. Under the performance requirements in the contracts, it should clearly state if further performance standards are developed, all departments will have to comply to those standards. County Attorney Copley inquired as to whether the $60,000 issue had been resolved with the Ogden Volunteer Fire Department? Commissioner Sisson responded this matter had not been resolved and stated the Ogden Volunteer Fire Department has been informed that New Hanover County would be a tenant in common or the money would not be released. No action was taken. A Request to Reconsider House Bill 607 Introduced by Representative Danny McComas Commissioner Barone reported Representative McComas had requested the Commissioners to reconsider House Bill 607 and requested direction from the Board. After discussion, it was the consensus of the Board not to consider the bill. ADJOURNMENT Chairman Greer adjourned the meeting at 11:45 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board