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2014-05-19 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 79 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, May 19, 2014, at 9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, NC. Members present:Chairman Woody White; Vice-Chair Beth Dawson; and Commissioner Jonathan Barfield, Jr. By consensus, the Board excused Commissioner Thomas Wolfe’s absence as he is attending a conference associated with his duties as a member of the Alcohol Beverage Control Board. Commissioner Brian M. Berger was absent. Staff present: County Attorney Wanda M. Copley; County Manager Chris Coudriet; and Clerk to the Board Sheila L. Schult. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Richard G. Elliott, St. Andrew’s On-the-Sound Episcopal Church, provided the invocation and Commissioner Barfield led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman White asked if any member of the Board would like to remove or discuss any item on the Consent Agenda. Adoption of the Resolution Approving the Commissioner Barfield requested that Consent Agenda 3 – Disposal of Surplus Property be pulled to allow time for questions to be answered and placed on the agenda for the June 16, 2014 meeting. Hearing no further comments, Chairman White requested a motion to approve Consent Agenda Items 1, 2 4, and 5. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Dawson, to approve the Consent Agenda Items 1, 2, 4, and 5 as presented. Upon vote, the MOTION CARRIED 3 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: Work Session held on April 21, 2014 Agenda Review Meeting held on May 1, 2014 Regular Meeting held on May 5, 2014 Approval of the New Hanover County Juvenile Crime Prevention Council Funding Recommendation for Fiscal Year 2014-2015 – County Manager’s Office The Commissioners approved the New Hanover County Juvenile Crime Prevention Council’s (JCPC) recommendation to allocate $433,344 in State funds for FY14-15 as follows: JCPC Administration - $5,000 Teen Court - $46,375 Youth Empowerment Services - $381,969 The funding recommendation meets the JCPC priorities of Psychological Services, Community Service/Restitution, Home-Based Family Services and Teen Court. Adoption of the Resolution Awarding the Contract for the Home and Community Block Grant Nutrition Program to Gibbs Efting Management Services – Senior Resource Center The Commissioners adopted the resolution awarding the contract for the Home and Community Block Grant Nutrition program in the amount of $288,438 to Gibbs Efting Management Services. Proposals were solicited from qualified providers to provide nutritious meals five days per week to the elderly in their homes beginning July 1, 2014. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXVIII, Page 10.1. Adoption of Budget Ordinance Amendments – Budget Department The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30, 2014: 14-077 Parks and Gardens 14-078 Sheriff Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XXXVIII, Page 10.2. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 80 REGULAR ITEMS OF BUSINESS ADOPTION OF PROCLAMATION DECLARING JUNE 2014 AS ELDER ABUSE AWARENESS MONTH IN NEW HANOVER COUNTY Chairman White referenced the proclamation declaring June 2014 as Elder Abuse Awareness Month in New Hanover County and requested Marianna Stacy with Cape Fear Elder Abuse Prevention Network to make comments and receive the proclamation. Motion: Commissioner Barfield MOVED, SECONDED by Vice-Chair Dawson, to adopt the proclamation declaring June 2014 as Elder Abuse Awareness Month in New Hanover County as presented. Upon vote, the MOTION CARRIED 3 TO 0. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXVIII, Page 10.3. RECOGNITION OF EDWIN M. GILL AWARD PRESENTED TO STRATEGY AND POLICY MANAGER BETH SCHRADER Chairman White reported that this item has been pulled and will be heard at a meeting in the near future. PRESENTATION OF CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING County Manager Chris Coudriet reported that New Hanover County was presented the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for the FY13 Comprehensive Annual Financial Report. This is the thirty-third consecutive year that the County has achieved this prestigious award. On behalf of the Board, Chairman White presented the certificate to Finance Director Lisa Wurtzbacher. ADOPTION OF RESOLUTION AWARDING THE CONTRACTTO BORDEAUX CONSTRUCTION COMPANY FOR THE COBB JUDICIAL ANNEX RENOVATIONS Facilities Project CoordinatorKevin Caison presented the request for the Board’s consideration to adopt the resolution awarding the contract in the amount of $2,410,000 to Bordeaux Construction Company for the Cobb Judicial Annex renovations. Sealed bids for the Cobb Judicial Annex renovations were received and opened on April 29, 2014 at 3:00 p.m. The bids included a base bid and four alternates for the project as follows:  Alternate 1 – cost to replace the windows instead of using the existing windows  Alternate 2 – cost to add fascia coping to protect the building from stains that may be caused by dripping rain and other conditions  Alternate 3 – cost for the bidder to use Cast Stone which was preferred by the County  Alternate 4 – cost for window framing by Kawner which was preferred by the County The following bids were received: Company Base Bid Alt 1 Alt 2 Alt 3 Alt 4 Total Bid Bordeaux Construction $2,248,000 $145,000 $17,000 $0 $0 $2,410,000 Daniels & Daniels $2,950,000 $151,000 $7,500 $0 $0 $3,108,500 Group Management $3,289,000 $90,600 $16,400 $0 $0 $3,396,000 Heard Ratzlaff $2,989,970 $138,150 $16,775 $0 $138,150 $3,283,045 Monteith Construction $2,865,000 $65,000 $16,000 $20,000 $0 $2,966,000 The scope of work includes removal and replacement of the existing brick and stone veneer, structural repairs per engineered plans, replacement of windows, flashing, sheathing, air and moisture barrier, weep inserts, masonry damp proofing, insulation, drywall as needed, painting, and cleaning. Staff recommends the Board adopt the resolution awarding the contract to Bordeaux Construction Company in the amount of $2,410,000 which includes all four alternates for Cobb Judicial Annex renovations. Chairman White requested direction from the Board. Motion: Vice-Chair Dawson MOVED, SECONDED by Commissioner Barfield, to adopt the resolution awarding the contract in the amount of $2,410,000 for the Cobb Judicial Annex renovations toBordeaux Construction Company as presented. Upon vote, the MOTION CARRIED 3 TO 0. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXVIII, Page 10.4. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 81 THIRD QUARTER FISCAL YEAR 2014 FINANCIAL UPDATE Finance Director Lisa Wurtzbacher presented a fiscal summary for the General, Environmental Management, and Fire Services Funds for the third quarter of Fiscal Year 2014 through March 31, 2014:  General Fund:  Revenues:  Ad Valorem Taxes - $159,513,318; 98.68% actual collected year-to-date  Sales Taxes - $26,072,030; 49.67% actual collected year-to-date  Other Taxes - $2,429,857; 60.66% actual collected year-to-date  Charges for Service - $7,322,102; 78.12% actual collected year-to-date  Intergovernmental Revenue - $27,350,231; 61.81% actual collected year-to-date  Other Revenues - $1,269,356; 56.46% actual collected year-to-date  Appropriated Fund Balance - $0  Total Revenues - $223,956,894; 78.15% actual collected year-to-date  Expenditures:  General Government - $22,776,408; 64.45% actual spent year-to date  Human Services – 38,079,413; 62.10% actual spent year-to-date  Public Safety - $36,885,504; 70.88% actual spent year-to-date  Economic and Physical Development - $677,361; 42.37% actual spent year-to-date  Culture and Recreation - $7,437,755; 64.91% actual spent year-to-date  Education - Community College - $6,505,783; 75% actual spent year-to-date  Debt Service - $23,905,138; 83.9% actual spent year-to-date  Transfers Out:  Education – Public Schools - $61,717,265; 72.13% actual spent year-to-date  Other - $737,133; 35.01% actual spent year-to-date  Total Expenditures - $198,721,760; 69.34% actual collected year-to-date  Environmental Management Operating Fund:  Revenues:  Charges for Service - $8,359,961; 70.3% actual collected year-to-date  Intergovernmental Revenue - $364,224; 84.9% actual collected year-to-date  Long-term Debt Issued - $0 actual collected year-to-date  Other - $510,308; 70.8% actual collected year-to-date  Total Revenues - $9,234,493; 57.7% actual collected year-to date  Expenditures:  Salaries and Benefits - $1,336,424; 71.3% actual spent year-to-date  Operating Expenditures - $3,434,634; 46.1% actual spent year-to-date  Debt Service - $260,463; 42.6% actual spent year-to-date  Capital Expenditures - $2,056,086; 86.6% actual spent year-to-date  Transfers to Capital Projects - $500,000; 16.3% actual spent year-to-date  Total Expenditures - $7,587,607; 47.4% actual spent year-to-date  Fire Services Fund:  Revenues:  Ad Valorem Taxes - $8,740,657; 100.2 % actual collected year-to-date  Sales Taxes - $1,196,194; 49.4% actual collected year-to-date  Intergovernmental Revenue - $20,919; 13.2% actual collected year-to-date  Charges for Service - $75,571; 159.1% actual collected year-to-date  Other Revenues - $78,714; 680.0% actual collected year-to-date  Appropriated Fund Balance - $0 actual collected year-to-date  Total Revenues - $10,274,739; 87.1% actual collected year-to-date  Expenditures:  Operating Expenditures - $7,571,082; 73.9% actual spent year-to-date  Debt Service - $617,746; 72.1% actual spent year-to-date  Capital Expenditures - $172,247; 24.9% actual spent year-to-date  Total Expenditures - $8,361,075; 70.9% actual spent year-to-date Hearing no comments, Chairman White thanked Ms. Wurtzbacher for the update. PRESENTATION OF FISCAL YEAR 2014-2015 RECOMMENDED BUDGET County Manager Chris Coudriet presented the Fiscal Year 2014-2015 New Hanover County Recommended Budget with highlights as follows:  Revenues:  The recommended budget is balanced with a 55.4 cent tax rate, which is the same as FY13-14  The increase in the tax base for FY14-15 is less than 1%  The base for the General Fund is estimated at $29.5 billion; with a 98.5% collection rate, the value of a penny is $2.9 million  The base for the Fire Service District is $11.3 billion; with a 98.5% collection rate, the value of a penny is $1.1 million NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 82  Appropriation of fund balance in the amount of $9 million  Sales tax is projected to increase 3.2% over the FY13-14 amount  Increase in charges for services and fees is projected at 11.2% impacting Inspection’s and Register of Deeds  Expenditures:  Economic Development and Intelligent Growth:  Rollover of $250,000 of funds from FY13-14; and $350,000 budgeted in FY14-15  Increase funding by $50,000 above the contracted amount for Wilmington Business Development to advance recommendations from the Garner Economics report  Fully fund incentives in FY14-15 for PPD, GE, Castle Branch, Fortron and Live Oak Bank  The Board directed an increase in the amount of $293,000 to Cape Fear Public Transportation Authority/WAVE; funding in the amount of $158,000 is designated of two annual payments to build their fund balance and $275,000 is intended to support operating expenses of countywide WAVE fixed routes  Superior Public Education:  Cape Fear Community College (CFCC):  Operating - $11 million; $2.3 million increase  Debt - $15.3 million; $3.8 million increase  New Hanover County Public Schools:  Current expense - $67.9 million; $3.2 million increase  Capital - $2.8 million; $600,000 increase  Debt - $19.9 million; $900,000 decrease  Superior Public Health and Safety:  Continued funding of effort to focus on crime in public housing communities and gang related violence  Programs to reduce juvenile recidivism  NC FAST  Action plan for health and human services collaboration  Reduce the rate of adult and juvenile obesity  Fire Services District:  The Fire Services Fund is balanced with no change in the tax rate which will remain at 7.9 per $100  The addition of nine positions  Capital – quint apparatus  Consolidation study implementation  Environmental Management Enterprise Fund:  The Environmental Management Enterprise Funds is balanced with a 6.8% reduction in the tip fee to $55 per ton with the fee being fixed through FY18-19  Increase diversion of municipal solid waste by 30%  Expand the life of the landfill to 73 years  $800,000 toward fund balance annually  $1.15 million toward closure/post closure reserve annually  $250,000 toward capital reserve annually  $2 million if FY15-16 through FY18-19 for future cell construction on the southern property  Effective County Government:  Expansion of law enforcement evidence room - $400,000  Widening of the Hugh MacRae trails - $200,000  Construction of Ogden Skate Park - $300,000  Marching grants for the Middle Sound Loop and south Smith Creek trails - $120,000  Financing of Capital:  Financing of capital at this level is a departure from what we have done in the past, but is a reasonable business strategy to maintain the current tax rate, meet needs of new facilities and deal with deferred and postponed capital and maintenance needs  2% market adjustment for the salary schedule starting after the first quarter  Implementation of the pay and classification plan effective July 1, 2014  Eight positions for Department of Social Services NC FAST workers  Nine positions for Fire Service District (Fire Fighters, Lieutenant)  Strategic Priorities Accomplished:  Moving the community forward  Every Board priority funded  Covering all mandated obligations  Limiting overall rate of growth: 2.1%  Tax Rate Position:  Recommended budget balanced at 55.4 cents  Most effective rate to cover debt obligations is 60.4 cents which pays for voter-approved debt since 2006 for CFCC and Parks NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 83  Closing Comments:  The most effective tax rate to fund the increasing voter-approved debt service is 60.4 cents which meets the known and predictable debt service obligations through FY20-21  The already voter-approved debt service is not fully satisfied until 2035  If the Board elects to modify the tax rate to account for the voter-approved debt my recommendation is that those dollars be assigned to a debt reserve fund so that all additional revenues will be used for debt service and not absorbed by the general fund for operations  Next steps:  Dates for potential work sessions  June 2, 2014 – Public Hearing on FY14-15 Recommended Budget  June 16, 2014 – Adoption of FY14-15 Budget A complete copy of the FY14-15 Recommended Budget is available for review in the County Manager’s Office and Budget Department as well as on the County’s website. BREAK Chairman White called for a break from 10:28 a.m. until 10:38 a.m. SOLID WASTE PRESENTATIONS FROM WASTE MANAGEMENT AND WASTE INDUSTRIES Chairman White invited Waste Management Inc. Vickie Liebers and Waste Industries Ven Poole to make their presentations to the Board concerning the Request for Proposals (RFP) they submitted for handling of the County’s solid waste: Waste Management Government and Community Relations Vickie Liebers presented the following information with highlights as follows:  New Hanover County seeks to save landfill airspace:  Waste Management accomplishes the County’s primary goal  Waste Management is without question the low bidder  Waste Management is the only responsive bidder  Waste Management is the only bidder to qualify under the request for proposal (RFP) requirements  Waste Management’s bid allows staff to effectively manage the County’s environmental resources  The competitor’s bid is non-responsive  Hard Fact: Waste Management is the low bidder:  The financial results for the only required base bid clearly defines Waste Management as the low bidder  The low bidder is the only responsive bidder  Competitor’s pricing includes tonnage caps  Competitor’s pricing has fuel surcharge fees  Readiness to serve NHC:  Despite myth and spin, Waste Management and our partner, Robeson County, are able to complete the startup phase in 6 months  Robeson County has contacted the NC Department of Environment and Natural Resources (NC DENR) to confirm there are no issues to delay startup  Waste Management is prepared to enhance the currently owned Wilmington transfer station (TS) with $1.2 million in capital, which will be completed in less than 6 months from the signing of contract  Competitor cannot permit and build TS within 12 to 18 months. The competitor’s long startup period will cost taxpayers a significant amount of money compared to the Waste Management startup date  The right steps to sustainability:  Countywide curbside collection:  Waste Management will provide both municipal solid waste (MSW) and recycling collection at the curb  Current area pricing for curbside residential service is approximately $26 per month for only MSW:  Waste Management pricing is approximately $17 per resident per month with 96 gallon carts for both MSW and recycling services  Curbside option eliminates the need for the nine County recycling convenience sites  At your door household hazardous waste (HHW) collection:  Eliminates the need for HHW sites or landfill (LF) special event collection  Bagster, the convenient way for residents to schedule bulk pickups or home project debris removal  Waste Management collection options provides residents with convenient services at reasonable prices  The right decision is in your hands:  Contract with Waste Management, the low bidder and only responsive bidder  Contracting with the industry’s environmental leader, Waste Management will provide community-based solutions for today and tomorrow NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 84  Implement a comprehensive plan to utilize existing expansions on the current County landfill and continue to consume airspace  Right steps to move forward:  Award Waste Management and partner Robeson County a contract based on the lowest priced base bid response  Contract signed by June 9, 2014  Implement start date December 8, 2014 In response to Board questions concerning the timeframe for the Request for Proposals having exceeded ninety days Ms. Liebers stated that they would extend their proposed cost for ninety days . In response to Board questions concerning the permitting of the Robeson County landfill, Ms. Liebers stated that she knows Robeson County has had conversations with DENR and everything has been approved; she didn’t know if they had a written confirmation. She stated that she was not aware of Robeson County offering landfill services to other counties. The landfill that Waste Management currently owns on River Road will remain in their ownership or it can be leased. Chairman White invited Waste Industries USA, Inc. President and Chief Executive Officer Ven Poole to make their presentation with highlights as follows:  Founded: 1970 – based in Raleigh, North Carolina  New Hanover branch: 1973 (Waste Industries ran NHC landfill for County)  Employees: 108 (average 9 years of service)  Fleet: 48  Tons collected: 128,000 (61.5% of New Hanover landfill volume)  Economic impact: $1,880,000 spent annually with New Hanover County vendors (excludes fuel, landfill and payroll)  Cost of solid waste disposal in North Carolina:  For a county the size of New Hanover, that owns its own landfill, the cost of disposal should be in the low $40/ton range  New Hanover cost of disposal for citizens and business is $59/ton  This excess cost siphons over $3 million out of the local economy  Waste Industries offered to transfer it all to Sampson for $38/ton  Other similar sized counties with their own landfill:  Cumberland: $30.00/ton  Buncombe: $43.00/ton  Wake: $35.00/ton  Onslow: $47.00/ton  Wayne: $31.50/ton  Forsyth: $34.00/ton  These counties also have recycling programs and convenience sites  Solid waste generation versus population:  Source: NC DENR Annual Report:  2012 population: 209,846  2012 solid waste handled: 209,968 tons  Per capita: 1.0006  Projected 2018 population: 218,351  Projected solid waste generation: 218,478  Annual change in tonnage: + 0.7% (versus negative 3.14% in staff analysis)  Fuel cost projection:  Source: US Energy Information Administration (EIA):  2015 = $3.97/gallon  2024 = $4.80/gallon  2.2% annual increase (versus 4% in staff analysis)  $4.80 from EIA versus $5.62 by staff in 2024  Excess heavy equipment and trucks:  County analysis of value: $2,808,104 (excludes WASTEC property)  Waste Industries estimate: $3,250,000 (excludes WASTEC property)  Estimated value of WASTEC: $1,900,000 (net of demolition costs)  Closure and post closure reserve:  Staff estimated the landfill to be full in 35 years and assumed they needed to accrue $1,159,000 annually  Typically you accrue the total you need as you deplete the airspace so your reserve is full when its actually time to close  If you aren’t placing waste in the landfill then the accrual should be zero for those years  Running landfill the expense would be about $1,159,000 annually  Transferring to Sampson this expense should be almost zero  Permit and construct timeline (6 months):  Case study: Waste Industries Sanford Transfer Station: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 19, 2014 PAGE 85  County issued special use permit: October 21, 2013  NC DENR permit: December 3, 2013  Construction: December 9, 2013  Certificate of Occupancy: April 30, 2014  Open for business: May 1, 2014 In response to Board questions concerning the timeframe for the Request for Proposals having exceeded ninety days Mr. Poole stated that their bid was open-ended. In response to Board questions, Environmental Management Director Joe Suleyman reported the following:  Concerning tonnage limits, the RFP response from Waste Industries included a cap on the amount of construction and demolition material that they propose to handle, 6,000 tons; Waste Management also had a cap on yard waste, 2,500 tons.  Concerning closure/post-closure costs, the County is significantly behind in this area. At the end of this fiscal year we will be putting the first true dollars in this fund in the amount of $210,000; the landfill has been receiving waste since 1981 without any financial reserve. We still have to put waste into the landfill to keep the permit active which will trigger responsibility to generate closure/post- closure set asides. There is also a $2 million requirement from NCDENR for funds to be set aside to handle any remedial actions they may assess.  Concerning a chart presented by Mr. Poole concerning the County’s tip fee, the chart, compiled by the County’s Finance Department, was based on data put in the ten year financial analysis keeping operations basically the same but also setting aside certain dollars for maintaining the fund balance, the closure/post-closure fund, setting aside capital equipment reserves and things like that. After a question and answer period, hearing no further comments, Chairman White, with consensus of the Board, directed staff to place the item on the Board’s June 16, 2014 agenda. COMMITTEE APPOINTMENT Lower Cape Fear Water and Sewer Authority Chairman White reported that a vacancy exists on the Lower Cape Fear Water and Sewer Authority. The Cape Fear Public Utility Authority has requested that the member appointed, serve on both Boards. Vice-Chair Dawson nominated Charles Lawrence Sneeden, Jr. for appointment. Vote Results: The Board voted 3 to 0 to appoint Charles Lawrence Sneeden, Jr. to a three-year term on the Lower Cape Fear Water and Sewer Authority with the term expiring on May 31, 2017. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chairman White reported that no one was present to speak on a non-agenda item. ADJOURNMENT Hearing no further business, Chairman White adjourned the meeting at 11:58 a.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-line at www.nhcgov.com.