2011-04-04 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 157
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular Session on Monday, April 4, 2011, at
6:00 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington,NC.
Members present were: Chairman Jonathan Barfield, Jr.; Vice-Chairman Jason R. Thompson;
Commissioner Ted Davis, Jr.; Commissioner Richard G. Catlin; County Attorney Wanda M. Copley; Clerk to the
Board Sheila L. Schuh and County Manager Bruce T. Shell.
Commissioner Brian M.Berger arrived at 6:04 p.m.
Chairman Barfield called the meeting to order and welcomed everyone present.
INVOCATION AND PLEDGE OF ALLEGIANCE
Pastor Joseph Garnett,Freedom's Way Ministries,Inc,provided the invocation.
Vice-Chairman Thompson led the audience in the Pledge of Allegiance to the Flag.
APPROVAL OF CONSENT AGENDA
Chairman Barfield asked if any member of the Board would like to remove or discuss any item on the
Consent Agenda.
Hearing no comments, Chairman Barfield called for a motion to approve the items on the Consent Agenda.
Motion: Commissioner Catlin MOVED, SECONDED by Vice-Chairman Thompson, to approve the Consent
Agenda as presented. Upon vote, the MOTION CARRIED 4 TO 0. Commissioner Berger arrived after the vote
was taken.
CONSENT AGENDA
Approval of Minutes—Governing Body
The Commissioners approved the minutes as presented by the Clerk to the Board.
Special Meeting held on March 5,2011
Closed Session Meeting held on March 5,2011
Work Session Meeting held on March 10,2011
Agenda Review Meeting held on March 10, 2011
Regular Meeting held on March 14,2011
Appointment of Patricia O. Kusek as the Joint Member with the City of Wilmington to Serve on the Cape
Fear Public Utility Authority—Governing Body
The Commissioners approved the nomination of Patricia O. Kusek as the joint member with the City of
Wilmington to serve on the Cape Fear Public Utility Authority with the term to expire on June 30,2014.
Authorization for the Senior Resource Center to Submit a Grant Application to the North Carolina
Department of Transportation—Parks,Gardens and Senior Resource Center
The Commissioners authorized the Senior Resource Center to submit a grant application to the North
Carolina Department of Transportation (Section 5310) in the amount of$125,000. If awarded, the funds will be
used to provide transportation services for 160 elderly and disabled persons who are currently on the waiting list.
The Federal portion of the grant is $100,000, the State provides a 10% match of $12,500, and the County is
responsible for the remaining 10%match of$12,500. The County match will come from the Transportation Escrow
Account in the Senior Resource Center budget.
Acceptance of 2010 Grant Award from the Port Security Grant Program and Adoption of Budget Ordinance
Amendment 11-204—Sheriffs Office
The Commissioners, on behalf of the Sheriffs Office, accepted grant funds from the Port Security Grant
Program in the amount of$585,351 and adopted Budget Ordinance Amendment 11-204. The funds will be used to
purchase two boats and related equipment. No local match is required.
A copy of the budget ordinance amendment is hereby incorporated as a part of the minutes and is contained
in Exhibit Book XXXIV,Page 5.1.
Acceptance of 2010 Grant Award from the Port Security Grant Program and Adoption of Budget Ordinance
Amendment 11-203—Sheriffs Office
The Commissioners, on behalf of the Sheriffs Office, accepted grant funds from the Port Security Grant
Program in the amount of$70,000 and adopted Budget Ordinance Amendment 11-203. The funds will be used to
purchase Search and Rescue Team medical and surveillance equipment. No local match is required.
A copy of the budget ordinance amendment is hereby incorporated as a part of the minutes and is contained
in Exhibit Book XXXIV,Page 5.2.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 158
Acceptance of New Hanover County and New Hanover County Fire District Tax Collection Reports — Tax
Department
The Commissioners accepted the following Tax Collection Reports as of February 28, 2011:
New Hanover County Fire District
New Hanover County
Copies of the Tax Collection Reports are hereby incorporated as a part of the minutes and are contained in
Exhibit Book XXXIV,Page 5.3.
Adoption of Budget Ordinance Amendments—Budget Department
The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30,
2011:
11-193 - Social Services
11-209-Emergency Management
2011-41 - Sheriff's Office
2011-42- Sheriff's Office
Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are
contained in Exhibit Book XXXIV,Page 5.4.
REGULAR ITEMS OF BUSINESS
RECOGNITION OF INAUGURAL CITIZENS ACADEMY CLASS
The Board recognized the following persons that completed the inaugural Citizens Academy class and
presented them with certificate of completion:
Latoya Dean Patricia Matson
Lenwood"Bo"Dean Joseph Palank
Beverly Delahunty Margie Parker
Charles Deslaurier Earla Pope
Anna Erwin James Pope
Gerald Farrell Emma Saunders
John Frye David Spetrino
Fred Gainey Lois Taylor
Natasha Jones Barbara Walker
Jackson Jordan Myrna Wexler
Michelle Li Owen Wexler
ADOPTION OF PROCLAMATION RECOGNIZING APRIL 2011 AS NATIONAL COUNTY
GOVERNMENT MONTH IN NEW HANOVER COUNTY
Veteran Services Director Ellis Pinder presented the request for the Board's consideration to proclaim April
2011 as National County Government Month in New Hanover County and was present to receive the proclamation.
The theme of the observance is"Serving Our Veterans, Armed Forces, and Their Families." New Hanover County
government provides many services for veterans and their families including a Veterans Service Office, Veterans tax
exemption,and health services.
Commissioner Catlin read the proclamation into the record.
Motion: Commissioner Berger MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 2011 as National County Government Month in New Hanover County. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXXIV,Page 5.5.
ADOPTION OF PROCLAMATION RECOGNIZING APRIL 2011 AS SEXUAL ASSAULT AWARENESS
MONTH IN NEW HANOVER COUNTY
Coastal Horizons, Inc. submitted the request for the Board's consideration to proclaim April 2011 as
Sexual Assault Awareness Month in New Hanover County. Coastal Horizons staff was present to receive the
proclamation.
Chairman Barfield read the proclamation into the record and moved for adoption.
Motion: Chairman Barfield MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 2011 as Sexual Assault Awareness Month in New Hanover County. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXXIV,Page 5.6.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 159
ADOPTION OF PROCLAMATION RECOGNIZING APRIL 2011 AS CHILD ABUSE PREVENTION
MONTH IN NEW HANOVER COUNTY
Department of Social Services Director LaVaughn Nesmith and Assistant Director Wanda Marino
submitted the request for the Board's consideration to proclaim April 2011 as Child Ahuse Prevention Month in
New Hanover County and were present to receive the proclamation.
Commissioner Davis read the proclamation into the record and moved for adoption.
Motion: Commissioner Davis MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 2011 as Child Ahuse Prevention Month in New Hanover County. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXXIV,Page 5.7.
ADOPTION OF PROCLAMATION RECOGNIZING APRIL 10-16, 2011 AS NATIONAL
TELECOMMUNICATORS WEEK IN NEW HANOVER COUNTY AND PRESENTATION OF MARY
ANTLEY TELECOMMUNICATOR OF THE YEAR AWARD
Emergency Management and 911 Communications Director Warren Lee presented the request for the
Board's consideration to proclaim April 10-16, 2011 as National Telecommunicators Week in New Hanover
County and was present to receive the proclamation.
Commissioner Catlin read the proclamation into the record and moved for adoption.
Motion: Commissioner Catlin MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 10-16, 2011as National Telecommunicators Week in New Hanover County. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
Chairman Barfield and the Board presented the 2011 Mary Antley Telecommunicator of the Year Award to
Janica Banker with C Squad. Ms.Banker was present to receive her award.
A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book
XXXIV,Page 5.8.
ADOPTION OF PROCLAMATIONS RECOGNIZING APRIL 16-30, 2011 AS SPRING LITTER SWEEP
TIME IN NEW HANOVER COUNTY AND APRIL 2011 AS GREAT AMERICAN CLEANUP MONTH IN
NEW HANOVER COUNTY
Keep America Beautiful of New Hanover County Coordinator Jennifer O'Keefe presented the request for
the Board's consideration to proclaim April 16-30, 2011 as Spring Litter Sweep in New Hanover County and April
2011 as Great American Cleanup Month in New Hanover County and was present to receive the proclamations.
Commissioner Berger read the Spring Litter Sweep proclamation into the record and moved for adoption.
Motion: Commissioner Berger MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 16-30, 2011 as Spring Litter Sweep Time in New Hanover County. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
Commissioner Berger read the Great American Cleanup Month proclamation into the record and moved
for adoption.
Motion: Commissioner Berger MOVED, SECONDED by Vice-Chairman Thompson, to adopt the proclamation
recognizing April 2011 as Great American Cleanup Month in New Hanover County. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
Copies of the proclamations are hereby incorporated as part of the minutes and are contained in Exhibit
Book XXXIV,Page 5.9.
PUBLIC HEARING AND ACCEPTANCE OF 2010 NORTH CAROLINA SMALL CITIES COMMUNITY
DEVELOPMENT BLOCK AWARD AND ADOPTION OF CAPITAL PROJECT ORDINANCE AND
BUDGET ORDINANCE AMENDMENT 2011-45
Chairman Barfield reported that the Board is being requested to consider the acceptance of the 2010 North
Carolina Small Cities Community Development Block Grant Program—Economic Recovery Grant Award and hold
the required Public Hearing.
Chairman Barfield requested a motion to open the Public Hearing to receive comments on the award of an
Economic Recovery Grant from the North Carolina Department of Commerce, Community Investment and
Assistance Office in the amount of$500,000.
Motion: Vice-Chairman Thompson MOVED, SECONDED by Commissioner Catlin,to open the Public Hearing to
receive comments on the award of an Economic Recovery Grant from the North Carolina Department of Commerce,
Community Investment and Assistance Office in the amount of$500,000. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 160
Community Development Planner Wanda Coston reported that New Hanover County has been awarded an
Economic Recovery grant from the North Carolina Department of Commerce, Community Investment and
Assistance Office in the amount of$500,000. The proposed project will involve the demolition and clearance of
three houses, the reconstruction of three houses and the rehabilitation of two houses, all of which are occupied by
five very low income homeowners. This is the second grant that the County has received in the past year, with the
previous grant in the amount of$400,000.
Hearing no public comments, Chairman Barfield requested a motion to close the Public Hearing.
Motion: Commissioner Thompson MOVED, SECONDED by Commissioner Catlin,to close the Public Hearing to
receive comments on the award of an Economic Recovery grant from the North Carolina Department of Commerce,
Community Investment and Assistance Office in the amount of$500,000. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
Chairman Barfield requested direction from the Board.
Motion: Commissioner Catlin MOVED, SECONDED by Vice-Chairman Thompson, to accept the 2010 North
Carolina Small Cities Community Development Block Award, adopt the Capital Project Ordinance and Budget
Ordinance Amendment 2011-45, and authorize the Chairman and staff to execute the appropriate documentation as
presented. Upon vote,the MOTION CARRIED UNANIMOUSLY
A copy of the capital project ordinance and the budget ordinance amendment is hereby incorporated as part
of the minutes and is contained in Exhibit Book XXXIV,Page 5.10.
BREAK
Chairman Barfield called for a break from 6:50 p.m.until 7:05 p.m.
APPROVAL TO IMMEDIATELY LAY-UP WASTEC AND REVIEW FUTURE OPTIONS ON MAY 16,
2011
County Manager Bruce Shell reported that the Board of Commissioners requested an independent
assessment of work needed to refurbish WASTEC. The County contracted with HDR Engineering.
HDR Engineering Vice-President Donald J. Castro presented the following information:
• Scope and Purpose of Report:
• Perform a facility walk-through
• Review performance data
• Identify equipment/facility repair or replacement to achieve 90%availability
• Develop an opinion of probable cost for five year period
• Provide recommendation for implementation approach
• Performance Summary:
• Industry Norm—85-92%plant availability(annually)
• Calendar Year 2010 WASTEC:
• Unit 1—33.7%
• Unit 2—69.9%
• Unit 3 —49.0%
• 2010 Unscheduled Shutdowns:
• Boiler tube failures—31 events
• CO excursions—28 events
• Grate problems—18 events
• Residue generation rate:
• 40%by weight of processed weight;industry norm is 25-30%
• Power generation rate:
• Approximately 200 Kilowatt hour per ton which is 50%of industry norm
• Condition Assessment:
• General facility repairs—roof, siding,tipping floor rehab, general site
• Boilers — NDT testing; refractory & tube, grates, superheaters, economizers, sootblowers
repair/replacement;combustion optimization
• Cranes—inspection&repairs
• Ash Handling Systems—conditioner system upgrades,bunker repairs,dump valve replacement
• Emissions Control Systems—SDA inspections&repairs,fabric filter repairs/replacement
• Stack—inspection,repairs,coatings
• Balance of Plant Systems—T/G inspections&cleaning,water treatment assessment, electrical power
systems review and replacement,transformer and distribution evaluation and upgrade
• Opinion of Cost of Repairs/Replacements:
• Major refurbishments over five-year period(Table 1):
• Year 1—$8,495,000
• Year 2—$2,080,000
• Year 3—$2,230,000
• Year 4—$1,150,000
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 161
• Year 5—$3,120,000
• Total in the amount of$17,075,000+$2 million in one-time event soft costs
• All major refurbishments in Year 1 (Table 2):
• Year 1—$11,820,000
• Year 2— $855,000
• Year 3— $1,440,000
• Year 4— $1,210,000
• Year 5— $2,790,000
• Total in the amount of$18,115,000+$2 million in one-time event soft costs
• Implementation Plan:
• Sequenced Shutdown-approximately 24 months to complete upgrade(Table 1)
• Full Plant Shutdown-approximately 18 months to complete upgrade(Table 2)
In response to Board questions, County Manager Bruce Shell reported that the County has subsidized the
Emergency Management Enterprise Fund in the amount of$4.2 million, and as reported, the facility is not running
to full capacity. The cost to run WASTEC is approximately$500,000 per month.
Mr. Shell presented the following recommendation:
• Lay-up WASTEC immediately:
• Substantial debt owed to general fund
• $4.2 million as of 6/30/10
• FY 11 operating loss will add to debt
• Under any retrofit scenario,minimum of four months shutdown to perform work
• $3.9 million per year average"net revenue" ($55.65 per ton tip fee)
• Minimal short term impact to Landfill capacity
• WASTEC currently operating at approximately 40%
• 70,600 tons per year additional to Landfill
• 38 employees laid off; recommending 6 weeks of severance pay in the amount of$172,000;potentially
26 weeks of unemployment in the amount of$500,000
• Lay-up timeline:
• April 5,2011 - initiate boilers shut down
• April 6,2011 -stop accepting waste at WASTEC
• April 7,2011 -Begin truck and haul of waste from WASTEC tip floor
• May 5, 2011—lay-up complete
• Exercise 18 month retrofit option:
• Significant long term value in dual assets
• Suspend operations;rehab all three boilers at once
• Inefficient to operate/sequentially rehab boilers
• Bulk of time spent for project planning and procurement and boiler 3 overhaul(ten months)
• Will provide greater certainty about costs
• Impact of rehab:
• $13.9 million debt-$1.3 million per year debt service(COPS)
• $1.5 million on-going capital investment per year at WASTEC (above routine maintenance
and repair costs)
• Facility at 85%availability(150,000 tons throughput)
• Electric sales of$1.4 million per year($46/megawatts hours)vs. $510,000 currently
• Next steps:
• Develop comprehensive execution plan to address the following:
• Source funding(public and/or private)
• Renovation oversight(NHC or outsourced)
• Operation(NHC or outsourced)
• Procurement process/timing
• May 12ffi work session to review prior to May 16, 2011
Commissioner Catlin stated that the revenue from power generation is important and it is in the best interest
of the County to get legislation classifying waste-to-energy as renewable energy. He endorsed the Solid Waste
Advisory Board's recommendations and encouraged the Board to review the recommendations.
The Board held a discussion concerning the need to fund the expense of opening up Cell 6E at the Landfill
in the next fiscal year budget.
In response to Board questions, Environmental Management Director John Hubbard reported that the
permits will remain valid indefinitely as long as the fees are paid and the permits are kept updated. Based on a five
year estimate,the County will lose approximately 50%of Landfill volume or one-half year for every year WASTEC
is laid-up.
Chairman Barfield voiced his concern that previous Board's did not support increasing the tip fee to ensure
that WASTEC operated as a true enterprise fund. The Board has a responsibility to maintain the County's
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32
REGULAR MEETING,APRIL 4,2011 PAGE 162
infrastructure. He stated that he is in favor of keeping WASTEC open during the repair process as there is only a six
months difference in the two scenarios presented.
In response to Board questions, Mr. Shell reported that the tip fee required to support WASTEC would be
in the range of$70. General Statutes does not allow the County to make money on solid waste; so once the General
Fund has been paid back,the County would need to lower the tip fee to sustain the expenses.
Commissioner Catlin stated that he sees that there are two decisions before the Board: one is the
immediate decision of whether or not to continue operating WASTEC at a loss and the other is to determine the
future of WASTEC which will need to be at a future meeting once business plan options are available for the
Board's consideration.
Hearing no further discussion, Chairman Barfield requested direction from the Board.
Motion: Commissioner Catlin MOVED, SECONDED by Commissioner Berger, to lay-up WASTEC immediately
as recommended by the County Manager and to direct staff to bring business plan options for WASTEC for the
Board's consideration at their May 16, 2011 meeting. Upon vote, the MOTION CARRIED 4 TO 1. Chairman
Barfield voted in opposition.
A copy of the report New Hanover County WTE Assessment Report by HDR Engineering is available for
review in the County Manager's office.
PUBLIC COMMENTS ON NON-AGENDA ITEMS
Chairman Barfield announced that time had been reserved to allow the public to present an item that was
not listed on the regular agenda. The following citizens offered comments:
Claud "Buck" O'Shields, 102 Partridge Road, voiced his concern that there is a need for better
communication on the county parks programs. He requested the Board meet with the stakeholders of the park
facilities to include the operators of the programs,Parks Advisory Board, staff, and school system on future fees and
use.
Vice-Chairman Thompson reported that he serves as the Board's representative on the Parks Advisory
Board and that numerous workshops and stakeholder meetings have been held during the past two years to solicit
input from the public.
Chuck Dorman, 113 Redwood Court, requested the Board consider supporting the privatization of the
Alcohol Beverage Control. The current process is in place solely for the State's tax base and is not benefitting the
business owners and/or citizens.
FOREIGN TRADE ZONE PROJECT UPDATE
Commissioner Catlin presented an update for the Board's information on the formation of a Foreign Trade
Zone. The Federal program, which is delegated to the State Department of Commerce, establishes a zone that
allows manufacturing and import/export businesses to delay paying duty tax on their products until they leave the
designated zone. The Port currently has Foreign Trade Zone designation and the Airport Industrial Park, which
consists of 140 acres and has water and sewer available,is being considered to be incorporated into that zone. There
will be little cost to extend the zone,mostly paperwork. Staff is currently exploring the best way to move forward.
ADJOURNMENT
There being no further business, Chairman Barfield adjourned the meeting at 8:38 p.m.
Respectfully submitted,
Sheila L. Schult
Clerk to the Board
Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners
meeting. The entire proceedings are available for review and check-out at all New Hanover County Libraries and
on www.nhcgov.com/NHCLive or www.nhcgov.com/pgges.BOC/ashy