2014-01-16 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
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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