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2012-05-21 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 391 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday-, May 21, 2012, at 9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington,NC. Members present: Chairman Ted Davis, Jr.: Vice-Chairman Jonathan Barfield, Jr.: Commissioner Jason R. Thompson:and Commissioner Richard G. Catlin. Commissioner Brian M.Berger arrived at 9:03 a.m. Staff present: County Attomey Wanda M. Copley: Clerk to the Board Sheila L. Schuh and County Manager Bruce T. Shell. NON-SECTARIAN INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Richard G. Elliott, St. Andrew's On-the-Sound Episcopal Church, provided the invocation and Commissioner Thompson led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman Davis asked if anti- member of the Board would like to remove or discuss anti- item on the Consent Agenda. Hearing no comments, Chairman Davis called for a motion to approve the items on the Consent Agenda. Motion: Commissioner Thompson MOVED, SECONDED by Commissioner Catlin, to approve the Consent Agenda as presented. Upon vote, the MOTION CARRIED 4 TO 0. CONSENT AGENDA Approval of Minutes—Governing Body The Commissioners approved the minutes from the following meetings as presented by the Clerk to the Board: Agenda Review Meeting held on May 3,2012 Regular Meeting held on May 7, 2012 Special Meeting held on May 11, 2012 Approval of Eleven Items for Accession into Cape Fear Museum's Permanent Collection — Cape Fear Museum The Commissioners approved eleven donations for accession into the Cape Fear Museum's Permanent Collection. A complete copy of the Cape Fear Museum Permanent Collection May 2012 list is available for review at the Cape Fear Museum. Approval of Items for Deaccession from the Cape Fear Museum's Permanent Collection — Cape Fear Museum The Commissioners approved the list of items for deaccession from the Cape Fear Museum's Permanent Collection. A complete copy of the Cape Fear Museum Deaccession List for May 2012 is available for review at the Cape Fear Museum. Approval of First Reading Request to Award a Solid Waste Franchise to Coastal Waste Services,Inc.—Legal Department The Commissioners, pursuant to New Hanover County Code Section 44-55, approved the first reading request to award a solid waste franchise to Coastal Waste Sei ices, Inc. The initial franchise period will run for seven years. A second reading is required for final franchise award. Adoption of Resolution Appointing Map Review Officers—Planning Department The Commissioners,pursuant to North Carolina General Statute 47-30.2,adopted the resolution appointing Map Review Officers to examine and approve plats and maps prior to recordation at the Registry of Deeds. A resolution designating a Review Officer must be recorded in the county registry and indexed on the grantor index in the name of the Review Officer. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXV,Page 8.1. 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 April 30,2012: New Hanover Count-ti-Fire District New Hanover Comit-V Copies of the Tax Collection Reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXXV,Page 8.2. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 392 Adoption of Budget Ordinance Amendments—Budget Department The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30, 2012: 12-228-Health 12-229-Health 12-230-Health 12-231 -Health 2012-56-Finance 2012-57- Sheriffs Office Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XXXV,Page 8.3. REGULAR ITEMS OF BUSINESS PRESENTATION OF NEW HANOVER COUNTY RETIREMENT AWARD County Manager Bruce Shell requested Waymond Robinson, retiring from the Sheriffs Office, to step foiNvard to receive his retirement award. On behalf of the Board, Chairman Davis presented Mr. Robinson with an award and expressed appreciation for his rivent-N-four nears of sei ice. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager Bruce Shell requested the following employees to step forward to receive sei ice awards: Five Year: Michael Brigandi, Sheriffs Office Amy Cook,Health Department Ana Panasiuk,Health Department Virginia Wells,Health Department Fifteen Year: Donnie Hall,Fire Sei ices Donald Ross, Information Technology On behalf of the Board, Chairman Davis presented a sei ice award to each employee, expressed appreciation,and thanked them for their years of dedicated sei ice. RECOGNITION OF NEW EMPLOYEES County Manager Bruce Shell requested the following new employees to stand and be introduced: Sonia Cardoso,Health Department Robert Kessel,Health Department Marti Ellen Nolan,Libraiv On behalf of the Board, Chairman Davis welcomed the employees to County Govermnent and wished them success in their new positions. RECOGNITION BY THE NORTH CAROLINA ASSOCIATION OF COUNTY COMMISSIONERS TO PAIGE OWENS AS A 2011 OUTSTANDING COUNTY PROGRAM AWARD WINNER IN THE PUBLIC INFORMATION/PARTICIPATION CATEGORY North Carolina Association of County Commissioners Outreach Associate Neil Emory presented a 2011 Outstanding County Program Award to the New Hanover County Public Library Assistant Director Paige Owens in the Public hrformation/Participation Category for her entry,Help George Tell His Story. The Board offered their congratulations to Ms. Owens. RECOGNITION OF KATHY STOUTE AS A 2012 UNCW RAZOR WALKER AWARD RECIPIENT Assistant County Manager Chris Coudriet recognized Youth Empowerment Sei ices Director Kathy Stoute as a 2012 UNCW Razor Walker Award recipient. Ms. Stoute was one of four recipients and received the award on Monday, April 16, 2012. The award is given in sei ice to those individuals and organizations recognized as "walking the razor's edge" in sei ice to the children and youth of the State of North Carolina. The Board offered their congratulations to Ms. Stoute. ADOPTION OF PROCLAMATION RECOGNIZING MAY 2012 AS MENTAL HEALTH MONTH IN NEW HANOVER COUNTY Southeastern Center Public Information Specialist Kate Murphy presented the request for the Board's consideration to proclaim May 2012 as Mental Health Month in New Hanover County and was present to receive the proclamation. Commissioner Thompson read the proclamation into the record and moved for adoption. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 393 Motion: Commissioner Thompson MOVED, SECONDED by Commissioner Berger, to adopt the proclamation recognizing May 2012 as Mental Health 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 XXXV,Page 8.4. ADOPTION OF PROCLAMATION RECOGNIZING MAY 2012 AS BUILDING SAFETY MONTH IN NEW HANOVER COUNTY Planning and Inspections Director Chris O'Keefe and Inspections Manager Dennis Bordeaux presented the request for the Board's consideration to proclaim May 2012 as Building Safety Month in New Hanover County and were present to receive the proclamation. Commissioner Catlin read the proclamation into the record and moved for adoption. Motion: Commissioner Catlin MOVED, SECONDED by Commissioner Thompson, to adopt the proclamation recognizing May 2012 as Building Safety 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 XXXV,Page 8.5. NEW HANOVER COUNTY INSPECTIONS DEPARTMENT ADVISORY COUNCIL ANNUAL UPDATE New Hanover County Inspections Department Ads-ismy Council Chairman Rodney Harris presented the Inspections Department Advisory Council annual update stating that the purpose is to provide advice and guidance to the Inspections Division of the Planning & Inspections Department to ensure timely, efficient, consistent professional sei ice. Eight appointed members represent the Commercial and Residential Builders, Plumbing, Mechanical and Electrical Contractors,Engineers,and rivo at-large members:they meet quarterly. The Council supports task-oriented cross training of code officials to provide more efficient sei ice while maintaining quality in all trade areas: an updated and simplified fee schedule tied to the cost of construction; maintaining staff levels adequate to provide timely and consistent sei ice: and department educational outreach programs for building code and ordinance changes affecting the community. On behalf of the Board, Chairman Davis thanked Mr.Harris for the presentation. PRESENTATION OF THE FISCAL YEAR 2012-2013 RECOMMENDED BUDGET County Manager Bruce Shell presented the Fiscal Year 2012-2013 Recommended Budget with highlights from the presentation as follows: • Revenue neutral tax rate of 55.4 cents • Financing solution for 320 Chestnut Street • The Recommended General Fund Budget is$269 million, or 2%,above the FYI 1-12 Budget • The primary increases are: • Cape Fear Community College • Operating increase$1 million • Debt Sei ice for bonds increase$1.5 million • Personnel: • Nine positions are recommended in the General Fund • 1%market adjustment of the salary schedule • 4.7%increase in premium for BCBS to be shared by County and employee • Retirement rate decreases in FY12-13,a$90,000 savings:but increases in FY13-14 • Education: • New Hanover Comit-v Schools: • $61.7 million for current operations • $21.5 million for debt sei ice • Cape Fear Community College: • $7.2 million for current operations • $11.9 million for debt sei ice • Contingency: • $535,000 recommended. • Ad Valorem Taxes (59.56%), together with Sales Taxes (17.70%), comprise 77.26% of total County revenues. • The FY12-13 tax base is estimated to be $29 billion. This is a decrease from the FYII-12 base of $34 billion due to revaluation of property. The revenue-neutral tax rate is 55.4 cents and a 98.2% collection rate is anticipated. • Revenue from sales tax increases$1 million or 2.2%from FYI 1-12 Adopted. • $7 million of find balance to be appropriated in FY12-13. This is an increase of $4 million from FY11-12. Such a use of find balance is possible due to the County's strong financial health and desire to keep the tax rate constant. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 394 • Environmental Management Fund: • Tipping fee of$59/ton(no change from FYI 1-12) • Current Operations: • Landfill • Administration • Temporary security for Sustainable Energy Facility • Drop-off Recycling • New Operations: • Purchase, setup and operations of a small-scale sorting station • Staffed with a contract sei ice temporary to sort plastics from drop-off site recyclables • Projected to be self-supporting • Reduce the overall net County cost of recycling program by $0.4 million • Budget includes: • Final$0.6 million repayment of General Fund Loan • Annual$38,500 repayment of administration land purchase • $1.1 million to complete construction of Cell 6E and partial closure of Cell 5 • $0.2 million for Phase 2 of southern property permitting process • $0.3 million for initial design/engineering work for west side of Cell 6 partial closure • Special Fire Sei ice District Fund: • Revenue-neutral tax rate of 7.9 cents • After revaluation Tax Base$11.1 billion • Value of a permy: $1.1 million • Fund balance of$0.4 million has been proposed to be appropriated in FY 12-13 • 2012 Tax Revaluation: • Historically, tax base increases during revaluation • For the first time NC counties are experiencing a decrease in their tax base • This year NHC experienced a decrease from$34 billion to$29 billion • How this decrease impacts individuals: • NHC Tax Base decreased on average 15% • Using a revenue-neutral tax rate: • Individual decreases greater than 15%will see a decrease • Individual decreases less than 15%will see an increase • Next Steps: • June 4,2012 -Public Hearing on FY12-13 Recommended Budget • June 18,2012 -Commissioners adopt FY12-13 Budget Chairman Davis led the Board in discussion of the recommended budget. In response to Board questions, County Manager Shell confirmed that the revaluation has resulted in a $5 billion decrease in the tax base which equates to a decrease in the value of a penny from$3.3 million to$2.8 million which equates to a decrease of$500,000 on the value of a permy. Due to the decrease in the tax rate, in order to keep the tax rate revenue neutral,the tax rate needs to increase 8.85 cents to the proposed rate of 55.4 cents. In response to Board questions, County Manager Shell reported that if the tax rate is not increased to the revenue neutral rate, and expenditures are kept at the current levels, the county would be short approximately $25.2 million. In response to Board questions concerning the amount of recommended fimding to Cape Fear Community College, County Manager Shell clarified that the College requested an increase in operations fimding in the amount of$2.5 million; $1 million is being recommended with the County debt sei ice increasing between FY2011-2012 and FY2012-2013 by $1.5 million for the College. The SafeLight program for New Hanover County Schools is not included in the recommended budget amount with the revenue of approximately $200,000 being separate and distinct. Commissioner Catlin stated that Carolina Beach is attempting to be below the revenue neutral rate and will result in a shortage of approximately$240,000 due to a decrease of sales tax revenue; due to the sales tax calculation method they will be punished for lowering their tax rate. County Manager Shell responded that the municipalities could be treated as an outside agency and fimding be allocated to them. He would rather not see the legislators change the sales tax calculation method. In his opinion,the consolidations of areas such as parks are a better way to cut costs for the municipalities. Chairman Davis stated that another impact on this budget, and fixture budgets, is the annexation of the Monkey Junction area:the City of Wilmington will benefit,all others will not. Commissioner Catlin stated that he continues to recommend that Cape Fear Community College hire a professional operator to oversee the Fine Arts Center which would help off-set some of the debt sei ice and operating costs of the project and be an economic driver for the community and generate revenues. Chairman Davis,who is the Board's representative on the Cape Fear Community College Board of Trustees, reported that the recommendation did not get very far: the project was brought back into budget so as not to have additional debt NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 395 sei ice. No changes can be made to the project without Board of Trustee approval. Commissioner Thompson added that in looking at a two-year budget, debt sei ice for the next fiscal year will increase approximately$3.8 million:almost$6 million in a two year period. County Manager Shell and Budget Director Cam Griffin clarified that as new debt is issued for the Community College, debt sei ice will decrease in other areas, resulting in an increase in the overall debt service by approximately $700,000 between FY2012-2013 and FY2013-2014. Hearing no firrther comments, Chairman Davis thanked County Manager Shell for the presentation. APPROVAL OF NEW HANOVER COUNTY BOARD OF EDUCATION CAPITAL OUTLAY FUND BUDGET AMENDMENT#7 Budget Director Cam Griffin presented the request for the Board's consideration to approve New Hanover County Board of Education Capital Outlay Fund Budget Amendment #7, which was approved by the Board of Education at their April 10,2012 meeting. The projects in the amount of$1,807,306 are as follows: • Lanev Field House Renovations-$860,064 • Track Repair and Replacement at high schools-$218,500 • Repairs to Mosley-$50,000 • Furniture and Custodial Equipment-$136,142 • Laptop Replacement-Isaac Bear-$56,200 • Workstation Memoiv Upgrades-$53,100 • Mounting Projectors at various schools-$263,800 • Vehicle Replacement-$169,500 The budget amendment also changes the $5,681 fimding for the Noble Middle School electrical project from bond revenue to lotteiv revenue. After brief discussion, Chairman Davis requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Thompson, to approve New Hanover County Board of Education Capital Outlay Fund Budget Amendment #7 as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the budget amendment is available for review in the Budget Department. APPROVAL OF PUBLIC SCHOOL BUILDING CAPITAL FUND LOTTERY APPLICATIONS New Hanover County Schools Assistant Superintendent for Planning and Operations Bill Hance presented the request for the Board's consideration to approve the Public School Building Capital Fund Lottery Applications in the amount of $1,304,535. The current unallocated balance for lotteiv fiords for New Hanover Count-v is $1,684,305. • Roland-Grise Middle School-$70,000 • Accessibility Various Schools-$120,000 • Fire Alarm Panels Various Schools-$36,546 • Carolina Beach Elementary-$131,152 • Noble Middle School-$834,642 • Williston Middle School-$49,500 • Partial Roof Replacement Various Schools-$32,695 • Hoggard High School-$30,000 After brief discussion, Chairman Davis requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Thompson, to approve the Public School Building Capital Lottery Funds Applications in the amount of $1,304,535 as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. APPROVAL OF REQUEST BY THE NEW HANOVER COUNTY BOARD OF EDUCATION TO SUBMIT APPLICATION FOR REALLOCATION OF QUALIFIED SCHOOL CONSTRUCTION BONDS New Hanover County Schools Assistant Superintendent for Planning and Operations Bill Hance presented the request for the Board's consideration to approve the submission of an application to the North Carolina State Board of Education for reallocation of Qualified School Construction Bonds allocated through the American Recovery and Reinvestment Act of 2009 for the following projects: • Bradlev Creek Elementary • Virgo Middle School • Wrightsboro Elementary • Trask Middle • Williston Middle • Roland-Grise Middle NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 396 Except for Wrightsboro Elementaiv, all projects are complete and there is a balance remaining of $706,704.13 that may be reallocated to fiord other school's capital needs. The Board of Education desires to use the savings to partially fiord HVAC replacement at Noble Middle School. The total project budget is $1,541,346. Funding is proposed through the NC Educational Lottery in the amount of$834,642 and Qualified School Construction Bonds in the amount of$706,704.13. In order to reallocate $706,704.13 a new application must be approved by the Board of Commissioners and submitted to the State Board of Education. After brief discussion, Chairman Davis requested direction from the Board. Motion: Chairman Davis MOVED, SECONDED by Commissioner Thompson, to approve the submission of application by the New Hanover County Board of Education to the North Carolina State Board of Education for Qualified School Construction Bonds in the amount of $706,704.13 as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. AUTHORIZATION TO SUBMIT AN ENERGY ASSURANCE GRANT AGREEMENT TO THE NORTH CAROLINA DEPARTMENT OF COMMERCE, STATE ENERGY OFFICE, AND ADOPTION OF BUDGET ORDINANCE AMENDMENT 12-234 Emergency Management and 911 Communications Director Warren Lee presented the request for the Board's consideration to authorize the submission of an Energy Assurance Grant Agreement to the NC Department of Commerce, State Energy Office, and adopt Budget Ordinance Amendment 12-234. New Hanover County has been selected to participate in an Energy Assurance pilot project with the NC State Energy Office and the City of Wilmington. The pilot project will consist of a radio frequency firel tank measurement project involving three City of Wilmington underground storage tanks and development of an Energy Assurance Plan(Emergency Support Function 12 ("ESF-12"))for New Hanover County. The goal of the pilot project is to improve fiael planning efforts within North Carolina by allowing the State Energy Office to access information about the firel consumption patterns of local and county governments. This information will enhance the State Energy Office's understanding of how motor firels are consumed across the State, improve awareness,and ultimately lead to improved energy assurance plarming by local governments and the State. The $10,000 grant will be administered by Emergency Management and used for a temporary part-time employee to write an Energy Assurarlce/ESF 12 plan and work with the City of Wilmington and the State Energy Office to conduct the pilot firel monitoring project. This grant requires the County to fiord the project and submit invoices to the State Energy Office for reimbursement. Commissioner Catlin voiced his concern on the need and validity of the proposed program with Director Lee responding that grant is favorable and will be used to fiord a temporary part-time employee to write an Energy Assurarlce/ESF 12 plan. After a brief question and answer period,Chairman Davis requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Berger, to authorize the Emergency Management Department to submit an Energy Assurance Grant Agreement to the NC Department of Commerce, State Energy Office and adopt Budget Ordinance Amendment 12-234 as presented. Upon vote, the MOTION CARRIED 4 TO 1. Commissioner Catlin voted in opposition. A copy of the budget ordinance amendment is hereby incorporated as a part of the minutes and contained in Exhibit Book XXXV,Page 8.6. A copy of the grant agreement is available for review in the Emergency Management Department. ADOPTION OF BUDGET ORDINANCE AMENDMENT 12-226 TO ALLOCATE PAYMENT FUNDS TO TAX MANAGEMENT ASSOCIATES Assistant County Manager Avril Finder presented the request for the Board's consideration to adopt Budget Ordinance Amendment 12-226 in the amount of$122,999 to allocate payment fiords to Tax Management Associates leaving net revenue for the County in the amount of$368,994. Tax Management Associates performs audits of commercial personal property tax listings. The fees will only be charged to the County when the revenues have been collected by the County's Tax Department. These fees are paid solely by the County and the various municipalities do not share in these costs but do receive additional revenue were appropriate. Staff has calculated $491,993 in County levied taxes, penalties, and interest that are expected to be collected by the end of the fiscal year for recent discoveries. Approximately $296 million in value has been discovered which is estimated to be additional revenue for the comit-v in the amount of$1.94 million: $355,072 for the City of Wilmington: $237 for Wrightsville Beach: and $836 for Carolina Beach. Total fees paid to date including this budget amendment is in the amount of$352,289. After brief discussion, Chairman Davis requested direction from the Board. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 397 Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Thompson, to adopt Budget Ordinance Amendment 12-226 in the amount of$122,999 for allocation of the fee to Tax Management Associates. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the budget ordinance amendment is hereby incorporated as a part of the minutes and contained in Exhibit Book XXXV,Page 8.7. BREAK Chairman Davis called for a break from 10:54 a.m. until 11:02 a.m. APPROVAL TO MOVE FORWARD WITH A PLAN TO BE BROUGHT BACK TO THE BOARD FOR CONSIDERATION ON JUNE 18,2012 TO RENOVATE THE BUILDING LOCATED AT 320 CHESTNUT STREET,APPROVAL TO USE GENERAL STATUTE 143-64.32,AND DIRECTION TO STAFF Assistant County Manager Avril Finder presented the request for the Board's guidance concerning the renovations of the building located at 320 Chestnut Street. The following scenarios were presented and discussed: Description Estimated Cost Gross Annual Cost Renovation of six floors $10,000,000 $701,321 Demolish and rebuild four floors with rivo shell floors $10,600,000 $740,745 Demolish and ftrlh-rebuild six floors $12,100,000 $851,498 Demolish and ftrlly rebuild seven floors $13,975,000 $870,095 Upcoming legislation is proposing to change the juvenile age from 16 to 18 and has a good chance of passing in the short session and be effective in four years. The impact is anticipated to be one additional Assistant District Attorney: 12-13 additional court counselors: more court time: more or bigger court rooms: increase case load to the Department of Social Seivices, Youth Empowerment Seivices, and the Public Defender: and more space at the Detention Center. District Chief Judge J. H. Corpening encouraged the Board to move forward with renovating the building to meet the ftrture growth needs related to the change in the juvenile age and court-related fimctions. Assistant County Manager Finder continued reporting that proposed ftrture uses include: • Public Defender—5,400 square feet • Guardian Ad Litem—3,000 square feet • Drug Treatment Court—1,000 square feet • Community Seivices—2,500 square feet • Register of Deeds— 10,500 square feet • Probation/Parole—16,178 square feet • Total—38,178 square feet • Gang Task Force would be moved to the vacated Register of Deeds space The estimated amoral rent savings with renovation would be in the amount of$318,008. Staff has investigated the sale-leaseback arrangement with rehabilitations tax credits. Various assumptions that would need ftirther validation through proposals before a final estimate could be brought forward including sales price, renovation cost, and a buy-out cost. The total space available is 45,500. An owner can lease less than 50% of the space to a tax-exempt entity to qualify for the tax credit. A sale-leaseback with the County would prevent the developer from receiving the historic tax credit and therefore the renovation expenditures would not be eligible for the rehabilitation tax credit. The owner must hold the building for five years after the rehabilitation or pay back the credit. Staff requests that the Board approve New Hanover County be exempted, as allowed by G.S. 143-64.32, from the requirement to use the qualifications-based selection process to select an architect and engineer and continue to use Jolm Sawyer Architects for architectural and engineering seivices given the firm's extensive background and previous experience with this project. The armual debt seivice cost for the renovation is included in the FY2012-2013 budget. In response to Board questions concerning historical designation and potential tax credits, Jolm Sawyer explained the extensive process required for historical designation and the construction requirements that accompany the designation. It is not an automatic tax credit. After a question and answer period with staff, Chairman Davis requested comments from the Board. Commissioner Catlin stated that before moving forward with renovation/rebuilding he would like to gauge private sector interest in buying the building or entering into a private/public partnership. He would also like to continue pursuing historical designation and tax credits. He is in favor of continuing to use Jolm Sawyer Architects. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 398 Commissioner Thompson stated that he would support directing staff to bring a proposal for Board consideration to renovate the six floors and to continue discussions with the City of Wilmington to assess their interest in leasing space. Vice-Chairman Barfield stated that he supports renovating the building for space needs now and in the ftiture and continue to use John Sawyer Architects for the project. Commissioner Berger stated that he supports directing staff to move foiNvard with the renovation of six floors and to continue discussions with the City of Wilmington to access their interest in leasing space and pursue any interest from the private sector. In response to the discussion of selling the property, County Manager Shell stated that due to the complicated analysis that needs to be conducted, staff will need more time to conduct an appraisal and other items. Hearing no ftarther comments, Chairman Davis requested direction from the Board. Motion: Commissioner Thompson MOVED, SECONDED by Vice-Chairman Barfield, 1)to direct staff to bring a plan to renovate the six floors at 320 Chestnut Street, at the cost of$701,321 amorally, for Board consideration at their June 18, 2012 meeting: 2) to continue with negotiations with the City of Wilmington to vet their interest in leasing space:and 3)to approve allowing New Hanover County to be exempted,as allowed by G.S. 143-64.32,from the requirement to use the qualifications-based selection process to select an architect and engineer and continue to use John Saivver Architects for architectural and engineering sei ices for the project as presented. Upon vote, the MOTION CARRIED 3 TO 2. Commissioner Berger and Catlin voted in opposition. ADOPTION OF RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT PURCHASE CONTRACT WITH BANK OF AMERICA PUBLIC CAPITAL CORPORATION TO FINANCE THE ACQUISITION OF A CATERPILLAR 826G COMPACTOR AND AN ARTICULATED DUMP TRUCK Assistant County Manager Avril Pinder presented the request for the Board's consideration to adopt the resolution authorizing the execution and delivery of an installment purchase contract with Bank of America Public Capital Corporation to finance the purchase of a Caterpillar 826G compactor and an articulated dump truck. The Board of Commissioners approved resolutions and budget amendments for the purchase and intent to finance a Caterpillar 826G Compactor ($739,754) and an Articulated Dump Truck ($299,728) for the Landfill totaling$1,039,482. The required debt payment for FY 2012-2013 will be$313,520.12,which is less than budgeted by $15,268.88: the estimated debt payments for FY 2012-2013 is in the amount of $328,789. There is no prepayment penalty. Chairman Davis requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Thompson, to adopt the resolution authorizing the execution and delivery of an installment purchase contract with Bank of America Public Capital Corporation to finance the acquisition of a Caterpillar 826G compactor and an articulated dump truck as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXV,Page 8.8. BREAK Chairman Davis called for a lunch break from 12:24 p.m.until 1:04 p.m. CONSIDERATION AND DISCUSSION OF RENOVATION AND LONG-TERM OPERATION OF THE NEW HANOVER COUNTY SUSTAINABLE ENERGY FACILITY Assistant County Manager Chris Coudriet presented for the Board's consideration to enter into a sei ice contract to operate the New Hanover County Sustainable Energy Facility (formerly known as WASTEC) and provided a brief timeline and the evaluation process that was used. As part of the Board's direction to staff to layup WASTEC, it also directed staff to explore a comprehensive approach to finding an alternative operator to the facility. The county evaluation team employed a rivo-step process to find the right partner in bringing the facility back to life as a Sustainable Energy Facility (SEF). The extensive process led to detailed proposals by Wheelabrator Technologies, Inc. and Covanta Energy Corporation,industry leaders in converting municipal solid waste into energy. Staff is recommending entering into a partnership with Covanta Energy Corporation. Staff bases their recommendation on the following: • Timeline-Phase 1 retrofit complete in fifteen months from Notice to Proceed. • Retrofit experience-uniquely identified -addressed certain code and safety issues: municipal retrofit- operations contract for Harrisburg,PA • Permitting Strategy-well thought out, comprehensive,multi-tiered approach • Guarantees - retrofit price, O&M price, throughput, electricity production, environmental, quality of residue, schedule,and energy usage NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 399 • Phase 1 retrofit costs: • Capital expenditures: $27,074,000 • Management fee: $5,094,000 • Total Phase 1 costs: $32,168,000 • Armual debt sei ice implications for Phase 2: • Covanta: $3.9 million(10.7%: 20 years) • NHC: $2.2 million(4.74%:20 years) • Phase 2: ongoing operations: • Annual seivIce fee: $12,859,000:plus$15/ton over 150,000 tons • Electric sales—34,000 MegawattsNear minimum guarantee(year one) • Guarantee will reset higher based on year one performance • 50 0/o/50%share above minimum • Metal recoveiv: • 100%to the county until equipment is paid • 50 0/o/50%split thereafter • Special waste(50 0/o/50%split) • Net to count-v estimated between$200,000-$400,000 armual1v • Tip fee needs to be approximately$86-$93 per ton for the life of the project Staff is requesting the Board to direct staff on how to proceed. Options may include directing staff to negotiate a comprehensive sei ice agreement, schedule a separate workshop on this matter, or bring the recommendation back to the board at its June 3,2012 for formal action. In response to Board questions, Mr. Coudriet reported that all sei ices provided will be covered by the proposed tip fee: the proposal does not include curbside pick-up or recycling: the five current recycling drop-off sites will remain in operation. Commissioner Catlin stated that a good thing about the proposal is that the County will not be numing the facility but voiced his concern that the County would be assuming the financing. He requested staff provide additional cost information on maintaining or lowering air emissions. Also,flow-control guarantee is needed for the proposal to succeed. In response to Board questions, Mr. Coudriet reported that the single best way to guarantee flow-control is for the County to enter into the pick-up business. County Attorney Copley stated that in her opinion the County is in control of flow-control through the franchise agreements that are in place with the haulers. Commissioner Thompson stated if the Board wants to consider the lowest cost to the citizen's trash could be shipped indefinitely to Sampson County landfill, diverting as much tomrage as possible, and save our landfill space: long--term our landfill airspace will have the most value. Vice-Chairman Barfield requested staff provide ftirther information on the true cost that counties are charging above the tip fee. After a question and answer period, the unanimous consensus of the Board was to schedule a work session at 4:00 p.m. on June 4, 2012 to allow additional time to review the information provided and to ftarther consider the proposal. Staff was directed to place the proposal on the agenda for the June 4, 2012 meeting for Board consideration. PUBLIC HEARING AND APPROVAL TO ADD SECTION 41-1(7)(1)TO THE ZONING ORDINANCE TO CREATE A PROCEDURE FOR THE INSTALLATION OF TRAFFIC CALMING DEVICES (A-396, 04/12) Chairman Davis requested staff to make the presentation. Senior Planner Sam Burgess, presented the request for the Board's consideration to add Section 41-1(7)(1) to the Zoning Ordinance to create a procedure for the installation of traffic calming devices and provided an overview of the amendment. The Planning Board, at their April 12, 2012 meeting, voted 5-0 to recommend approval of amended language, including accepting final construction plans and details sealed by all licensed professionals legally recognized in the State of North Carolina. No one from the public spoke for or against the amendment. Chairman Davis opened the Public Hearing and asked if anyone from the public wished to speak in favor of or in opposition to the request. Hearing no comments, Chairman Davis closed the Public Hearing and requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Catlin, to approve adding Section 41- 1(7)(1) to the Zoning Ordinance to create a procedure for the installation of traffic calming devices as presented finding that the request is: 1) consistent with the purposes and intent of the policies in the 2006 CAMA Land Use Plan; and 2) reasonable and in the public interest to make changes that correct existing language in the ordinance. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 400 A copy of the ordinance amending the Zoning Ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXV,Page 8.9. PUBLIC HEARING AND APPROVAL TO AMEND SECTION 97-4 OF THE ZONING ORDINANCE REMOVING THE AMORTIZATION TABLE AND ASSOCIATED LANGUAGE AND ALLOW SIGNS ON CAROLINA BEACH ROAD TO REMAIN IN PLACE AS LEGAL NON-CONFORMING SIGNS (A- 400,04/12) Chairman Davis requested staff to make the presentation. Zoning Compliance Official Steve Stills presented the request at the Board's direction to amend Section 97-4 of the Zoning Ordinance to remove the amortization table and associated language and allow signs to remain in place as legal non-conforming signs on Carolina Beach Road. The Planning Board, at their April 12, 2012 meeting, voted 5-0 to recommend approval of amended language. No one from the public spoke for or against the amendment. Chairman Davis opened the Public Hearing and asked if anyone from the public wished to speak in favor of or in opposition to the request. Hearing no comments, Chairman Davis closed the Public Hearing and requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Catlin, to approve amending Section 97-4 of the Zoning Ordinance to remove the amortization table and associated language and allow signs to remain in place as legal non-conforming signs on Carolina Beach Road as presented finding that the request is: 1)consistent with the purposes and intent of the policies in the 2006 CAMA Land Use Plan; and 2) reasonable and in the public interest to make changes that correct existing language in the ordinance. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the ordinance amending the Zoning Ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXV,Page 8.10. PUBLIC HEARING AND APPROVAL TO ADD SECTION 59-10 TO THE ZONING ORDINANCE TO CREATE A CONDITIONAL DISTRICT(A-401,04/12) Chairman Davis requested staff to make the presentation. Plaiming and Inspections Director Chris O'Keefe presented the request for the Board's consideration to add Section 59-10 to the Zoning Ordinance to create a conditional zoning district applicable to uses permitted by right along with a site specific development plan. Similar to the Conditional Use District, staff, the Planning Board and ultimately the Board of County Commissioners can attach conditions,without following a quasi-judicial process, to the development of the project in order to help mitigate potential negative impacts. The Planning Board, at their April 12, 2012 meeting,voted 5-0 to recommend approval of amended language. No one from the public spoke for or against the amendment. Chairman Davis opened the Public Hearing and asked if anyone from the public wished to speak in favor of or in opposition to the request. Hearing no comments, Chairman Davis closed the Public Hearing and requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Catlin, to approve adding Section 59- 10 to the Zoning Ordinance to create a conditional zoning district applicable to uses permitted by right along with a site specific development plan as presented finding that the request is: 1) consistent with the purposes and intent of the policies in the 2006 CAMA Land Use Plan; and 2) reasonable and in the public interest to make changes that correct existing language in the ordinance. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the ordinance amending the Zoning Ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXV,Page 8.11. PUBLIC HEARING AND CONTINUATION OF REQUEST TO AMEND SECTION 62-1 OF THE ZONING ORDINANCE TO REMOVE THE NON-CONTIGUOUS LOT REFERENCE(A-402,04/12) Chairman Davis requested staff to make the presentation. Zoning Compliance Official Steve Stills presented the request for the Board's consideration reporting that staff is proposing to amend Section 62-1 of the Zoning Ordinance to remove the non-contiguous lot reference. The Planning Board, at their April 12, 2012 meeting, voted 5-0 to recommend approval of amended language. No one from the public spoke for or against the amendment. Chairman Davis opened the Public Hearing and asked if anyone from the public wished to speak in favor of or in opposition to the request. J.B. Piner, 5614 Myrtle Grove Road, spoke in opposition to the request stating that the request will take away people's rights to put an accessory structure on a lot that is not developed and requested no changes be made to the existing zoning. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 401 Hearing no fiarther comments, Chairman Davis closed the Public Hearing and requested direction from the Board. In response to Board questions, Official Stills reported that staff has enforced not being able to build on non-contiguous lots. Dwelling units must be associated with the accessory structure either on the same lot or on a contiguous lot. Motion: Commissioner Catlin MOVED, SECONDED by Commissioner Thompson, to amend Section 62-1 of the Zoning Ordinance to remove the non-contiguous lot reference for discussion purposes. In response to Board questions, Official Stills reported that staff has received a request for a three-bay garage that is above and beyond a normal garage to be built on a lot where no dwelling unit exists. Director Chris O'Keefe added that the zoning amendment will eliminate the ability to build a house on one lot and go into another neighborhood and build a structure, such as the referenced three-bay garage. The "non-contiguous lot" is the key wording to the proposed change and is suggested to protect the existing community from a use that may not have any resident component. In response to Board comments, Director O'Keefe reported that there was not much interest from the community in the proposed amendment. In the past, and currently, the zoning has been enforced stating that he was not sure how it was interrupted in the past but the basic premise is that zoning is created so like-uses are grouped together,especially in residential areas. After brief discussion, Commissioners Catlin and Thompson withdrew the motion. Motion: Commissioner Berger MOVED, SECONDED by Vice-Chairman Barfield, to continue the request to amend Section 62-1 of the Zoning Ordinance for sixty days to allow for input, including but not limited to, the realtors and homebuilders associations. Upon vote, the MOTION CARRIED UNANIMOUSLY. APPROVAL OF REVISED LEGISLATIVE GOALS Assistant County Manager Chris Coudriet led the Board in the discussion to reconsider the adopted 2012 Short Session Legislative Goals and adoption of a resolution supporting SB433 requesting Health and Human Sei ices flexibility. The revised goals are listed below: • Amend the Justice Reinvestment Act (G.S.15-A-1334) to exempt active Adult Drug Treatment Court participants. The General Assembly sought to address prison confinement costs by limiting revocation of certain probationary sentences. An unintended consequence from the Act is that repeat offenders inappropriately benefit from Drag Court. Such persons manipulate the Drag Court option on an on-going basis with frequent relapses and a demonstrated lack of commitment to treatment. The present legislation unfortunately does not permit such persons to have their probationary sentences revoked so as to seine appropriate jail time,until they have seined two 90-day periods in the county jail. • Amend Renewable Energy and Energy Efficiency Portfolio Standard (G.S. 62-133.8) to add to the definition of"renewable energy resources"waste-to-energy facilities utilizing municipal waste. • Amend Authority of Boards of Commissioners over commissions, boards, agencies, etc. (G.S. 153 A-77), to delete subsection (f) that states the Act is applicable only to counties with a population in excess of 425,000. • Amend Administrative Hearings (G.S. 150B Article 3) to modify Session Law 2011-398, to re-establish that the decision of an administrative law judge in the context of any appeal under the State Personnel Act from a County Health Department or County Social Sei ices Department or their respective Boards is only an advisory recommendation and not binding on the County Department or Board. • Adopt a State Budget Ordinance restoring a 50150 state/local match for finding of Drug Treatment Court Programs pursuant to G.S. 7A-794,Funding Administration. • Amend Water and Sewer Authorities (G. S. 162A, Article 1)as follows: A water and sewer authority may elect to promote programs which allow it to address assistance to customers in need in the payment of their water and sewer accounts. • Amend Annexation of Non-Contiguous Areas (G. S. 160A, Article 4, Part 4) specifically 160A-58.1 (a), first sentence, as follows: Upon receipt of a valid petition signed by all of the owners of real property in the area described therein and receipt of a resolution of the Board of County Commissioners approving such petition, a city may annex an area not contiguous to its primary corporate limits when the area meets the standards set out in subsection(b)of this section. After brief discussion, Chairman Davis requested direction from the Board. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Thompson, to adopt the revised Legislative Goals as presented and direct staff to send the information to the New Hanover County local delegation for the upcoming short session of the General Assembly and to adopt the resolution supporting SB433 as presented. Upon vote, the MOTION CARRIED 4 TO 1. Commissioner Berger voted in opposition. A copy of the resolution and revised legislative goals are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXXV,Page 8.12. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 402 COMMITTEE APPOINTMENTS Appointments to the Cooperative Extension Advisory Council Chairman Davis reported that five vacancies exist on the Cooperative Extension Advisory Council with three applicants eligible for reappointment and one application available for the Board's consideration. Chairman Davis nominated Nathan Bales, Angela Keith, and Charles F. Mincey for reappointment. The nominations were seconded by Commissioner Catlin. Vote: The Board voted 4 TO 1 to reappoint Nathan Bales,Angela Keith, and Charles F. Mincey to seine three-year terms on the Cooperative Extension Ads-ismy Council with the terms to expire on May 31, 2015. Commissioner Berger voted in opposition. Commissioner Thompson nominated Justin LaNasa for appointment. The nomination was seconded by Vice-Chairman Barfield. Hearing no further nominations, Chairman Davis called for a vote on the nominations. Vote: The Board voted UNANIMOUSLY to appoint Justin LaNasa to seine a three-year term on the Cooperative Extension Ads-isoiv Council with the term to expire on May 31,2015. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chairman Davis announced that time has been reserved to allow the public to present an item that was not listed on the regular agenda. Chuck Kuebler, Port City Baseball, requested the Board contribute to the proposed baseball stadium project. Thomas Hauser, Global River Church, respectfully declined the Board's request to provide a non-sectarian invocation stating that it would violate his believe in scripture and in the commandments of Jesus Christ. ADDITIONAL AGENDA ITEM OF BUSINESS ADOPTION OF BUDGET ORDINANCE AMENDMENT 12-242 TO ALLOCATE FUNDS TO THE CAPE FEAR PUBLIC UTILITY AUTHORITY FOR THE KIRKLAND SEWER PROJECT Assistant County Manager Avril Finder presented the request for the Board's consideration to adopt Budget Ordinance Amendment 12-242 to allocate finds to the Cape Fear Public Utility Authority for the Kirkland Sewer project. On May 7, 2012, the Board approved a Participation Reimbursement Agreement between the County and Cape Fear Public Utility Authority to assist in financing the construction project defined as Kirkland Sewer. The County will provide finding at no-interest in the amount of$650,000 for the project. After brief discussion, Chairman Davis requested direction from the Board. Motion: Commissioner Catlin MOVED, SECONDED by Commissioner Thompson, to adopt Budget Ordinance Amendment 12-242 to allocate finds to the Cape Fear Public Utility Authority for the Kirkland Sewer project as presented. Upon vote, the MOTION CARRIED 4 TO 1. Commissioner Berger voted in opposition. A copy of the budget ordinance amendment is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXV,Page 8.13. CLOSED SESSION Chairman Davis announced a Closed Session pursuant to General Statute 143-318.11(a)(3) to consult with the County Attorney regarding a matter of potential litigation. Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Catlin, to enter into a Closed Session pursuant to General Statute 143-318.11(a)(3) to consult with the County Attorney regarding a matter of potential litigation. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis convened to Closed Session at 3:09 p.m. CONVENE TO REGULAR SESSION Chairman Davis convened the meeting to Regular Session at 3:42 p.m. and reported that the Board has concluded its consultation with the County Attorney with no action being taken. ADJOURNMENT There being no further business, Chairman Davis requested a motion to adjourn the meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 32 REGULAR MEETING,MAY 21,2012 PAGE 403 Motion: Commissioner Catlin MOVED, SECONDED by Vice-Chairman Barfield, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis adjourned the meeting at 3:42 p.m. Respectfully submitted, Sheila L. Schult Clerk to the Board Please note that the above minutes are not a verbatim record of the l ew Hanover Couno)Board of Commissioners meeting. The entire proceedings are available for review and check-out at all Aei-Hanover Couno)Libraries and on innr.nhcgov.com HC'Live or innr.nhcgov.com pages.BOC%aspy