Loading...
HomeMy WebLinkAbout2014-01-16 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 WORK SESSION, JANUARY 16, 2014 PAGE 7 ASSEMBLY The New Hanover County Board of Commissioners met for a Work Session on Thursday, January 16, 2014, at 2:30 p.m. in the Harrell Conference Room at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chairman Woody White; Vice-Chair Beth Dawson; Commissioner Jonathan Barfield, Jr.; and Commissioner Thomas Wolfe. Commissioner Brian Berger was absent. Staff present: County Manager Chris Coudriet; Deputy Clerk to the Board Kymberleigh G. Crowell; Budget Director Cam Griffin; Budget Analyst Katie Lumb; Accounting Manager Jennifer Maready; Assistant County Manager Avril Pinder; and Budget Finance Director Lisa Wurtzbacher. Chairman White called the meeting to order, stated the purpose of the work session is to discuss with county staff the WAVE interlocal agreement (ILA) and requested that County Manager Chris Coudriet provide a brief overview. County Manager Chris Coudriet stated that the presentation today is to present the initial changes rd specifically to the ILA that County staff have proposed based on the October 3 Work Session/Joint Meeting with the Board of Commissioners, Wilmington City Council (City) and Cape Fear Public Transportation Authority (WAVE). County Staff has worked on these ILA changes with City and WAVE Staff and asked Finance Director Lisa Wurtzbacher to make the presentation. PRESENTATION AND DISCUSSION ON DRAFT CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY/WAVE TRANSIT INTERLOCAL AGREEMENT Finance Director Lisa Wurtzbacher provided an overview of the proposed ILA with WAVE Transit:  Funding:  Additional clarity is needed for the following:  Service levels County will support  Funding level County will provide  Additional transparency of cost allocations between paratransit and fixed route  Two year rolling funding  Fund balance  Funding Methodology:  Required Local Contribution:  Paratransit: $163,192  Pleasure Island Route (#301): $ 41,845  Northern Route (#207): $ 75,835  Total Paratransit and Unincorporated Routes Shortfall: $280,872  Prior Year Funding Levels:  County 2013 Contribution: $176,000  County 2014 Contribution: $140,000  Funding Fund Balance based on Actual 2013 Result:  Total Operating Expenditures: $7,891,271  Proposed 8% Fund Balance: $ 631,302  Total City Funding (83.3%): $1,249,000  Total County Funding (16.7%): $ 250,000  The County’s 2013 budgeted contribution for WAVE was $250,000 with approximately $74,000 dedicated to capital outlay and $176,000 to operations.  County’s Portion of Fund Balance Contribution: $105,287  Other Discussion Items:  Board Composition:  Five members appointed by County  Five members appointed by City  One member appointed jointly (human services agency served by WAVE)  Member(s) appointed by Brunswick County (non-voting or voting member?)  Add or change membership based on parties joining agreement.  Debt:  Authority to obtain and incur own debt and/or bonds  County and City to approve debt for operations, expansion and improvement  County and City to approve bond obligations.  Terms of the Agreement:  Ten year terms renewable upon County and City Board approval  Amendment to extend terms may be made when debt/long term lease is obtained by Authority Finance Director Wurtzbacher reported that during discussions with City and WAVE representatives she did not hear any opposition about the fund balance percentage split and explained that the ratio reflects current NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 WORK SESSION, JANUARY 16, 2014 PAGE 8 funding by the County and City. This information does not cover capital improvements, only operating costs; included in proposed revisions is to adopt a five-year capital improvement (CIP) plan. WAVE does not have and was not created with a fund balance. Staff explained that while the idea of creating a fund balance without assistance is important it may not be practical and likely to be established by contributions from the County and City to equal 8% of expenditures in proportionate share of funding. Fund balance could be used for unforeseen expenditures such as fuel cost spikes, insurance hikes, union contract pricing; not for expenses such as van purchases and service expansion. WAVE would need to maintain a minimal fund balance level of 8% of operating budget; when fund balance is used, a plan to replenish it within a twenty-four month period must be submitted to the Boards; if the fund balance falls below the required level, it will be in default of the agreement. In regard to paratransit costs, the required local contribution of approximately $163,000 is not necessarily considered a shortfall. Rather, it’s the remaining amount needed to cover paratransit costs after Federal and State revenues are received and Social Services, Senior Resource Center as well as others pay for services. Staff also reported that Brunswick officials are paying approximately $94,000 for cost of service for the Brunswick connector. The Board held a discussion that although WAVE does provide access to transportation for people who might not have other means, concerns were expressed about decisions made in route restructuring, not using smaller vehicles, operational expenses and not being able to change the habits of area motorists over the last ten years. Staff reported that in terms of efficiency there is evidence that the rider cost per mile in the more urban, dense districts reflects a greater degree of efficiency. It is pennies on the dollar in the more centralized service area while being more expensive and less cost efficient in the suburban and unincorporated areas of the county. In response to Board discussion staff responded that the basis of the ILA revisions in terms of funding is to allow the Board of Commissioners the flexibility to look at route efficiency and effectiveness data for the suburban and unincorporated areas of the county on a regular basis. This will allow the Board to decide whether to continue funding more broadly or in a narrow sense. Suggestions were made that this topic can also be included as part of the Long Term Comprehensive Land Use Plan discussion in order to be proactive rather than reactive in planning future routes. While there will always be a need for public transportation services, focus will need to be on the costs associated with adding more routes. ADJOURNMENT There being no further discussion, Chairman White adjourned the meeting at 3:13 p.m. Respectfully submitted, Kymberleigh G. Crowell Deputy Clerk to the Board