2015-01-20 Regular Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 214
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular Session on Tuesday, January 20, 2015,
at 9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington,
NC.
Members present: Chairman Jonathan Barfield, Jr; Vice-Chairman Beth Dawson; Commissioner Skip
Watkins; Commissioner Woody White; and Commissioner Rob Zapple.
Staff present: County Manager Chris Coudriet; County Attorney Wanda Copley; and Clerk to the Board
Teresa Elmore.
INVOCATION AND PLEDGE OF ALLEGIANCE
Rabbi Paul Sidlofsky, Temple of Israel, provided the invocation and Commissioner Zapple 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 requested a motion to approve the Consent Agenda.
Motion:
Commissioner Watkins MOVED, SECONDED by Vice-Chairman Dawson, to approve the Consent
Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA
Approval of Minutes – Governing Body
The Commissioners approved the following minutes as submitted by the Clerk to the Board:
Agenda Review Meeting held on December 30, 2014
Regular Meeting held on January 5, 2015
Closed Session held on January 5, 2015
Reappointment of William Vassar to the Wilmington Regional Film Commission – Governing Body
The Commissioners appointed William Vasser to serve another three-year term on the Wilmington
Regional Film Commission. The term will expire December 31, 2017.
Adoption of Resolution Adopting a Plan Supporting Involuntary Commitment Transport Services – County
Attorney
The Commissioners adopted a resolution approving the plan for transportation of involuntary commitment
respondents between New Hanover Regional Medical Center (NHRMC) and Lighthouse by Medshore, as permitted
by N.C.G.S. §122C-251(g). The plan shall include an agreement between NHRMC and Medshore for provision of
these services at no charge to the County or to NHRMC. The plan allows a private provider to transport involuntary
commitments to an out-of-state facility. At a minimum, all transporters will be Basic Life Services (BLS) Certified.
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book
XXXIX, Page 2.1.
Adoption of Resolution Awarding Bid to Thermal Resource Sales for the Purchase of Florida Heat Pumps for
the New Hanover County Judicial Building – Property Management
The Commissioners adopted a resolution awarding RFB# 1252014 and contract to Thermal Resource Sales
in the amount of $262,800 for the purchase of Florida Heat Pumps for the New Hanover County Judicial Building
and authorize the County Manager to execute the contract, contract form to be approved by the County Attorney.
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book
XXXIX, Page 2.2.
Acceptance of November 2014 Tax Collection Reports – Tax Department
The Commissioners accepted the following Tax Collection Reports as of November 2014:
New Hanover County
New Hanover County Fire District
Copies of the Tax Collection Reports are hereby incorporated as part of the minutes and are contained in
Exhibit Book XXXIX, Page 2.3.
Adoption of Budget Ordinance Amendments – Budget Department
The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30,
2015:
15-039 Emergency Management and 911 Communications
15-041 Sheriff's Office
15-042 Property Management
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 215
15-043 Senior Resource Center
Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are
contained in Exhibit Book XXXIX, Page 2.4.
REGULAR ITEMS OF BUSINESS
PRESENTATION OF SERVICE AWARDS AND INTRODUCTION OF NEW EMPLOYEES
County Manager Coudriet requested the following employees to step forward to receive service awards:
Ten Year: Regina Bradley, Health Department
Chad Hollar, Sheriff’s Department
Edwin Morton, Sheriff’s Department
Kari Sanders, Department of Social Services
Fifteen Year: Donald Hoffsher, Parks and Gardens Department
Twenty Year: Arthur Malpass, Planning and Inspections Department
Paula Marn, Department of Social Services
Twenty–Five Year: Beverly Thomas, Finance Department
Chairman Barfield presented a service award to each employee and the Commissioners expressed
appreciation and thanked each one for their years of dedicated service.
Recognition of New Employees
:
County Manager Coudriet requested the following new employees to stand and be introduced:
Melissa Lyles, Engineering Department
David Forrest, Information Technology Department
Bradley Schuler, Planning and Inspections Department
On behalf of the Board, Chairman Barfield welcomed the employees to County Government and wished
them success in their new positions.
PRESENTATION AND APPROVAL OF THE AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE
30, 2014
Finance Director Lisa Wurtzbacher reported that the New Hanover County Comprehensive Annual
Financial Report for the fiscal year ended June 30, 2014 is completed and showing an increase in the fund balance.
She introduced Erica Brown, Audit Manager of Martin, Starnes and Associates, CPA, to give the audit and financial
report.
Erica Brown, Audit Manager of Martin, Starnes and Associates, CPA, presented an unmodified opinion of
the County’s 2014 Annual Report reflecting that the financial statements are materially accurate and the report has
been accepted by the Local Government Commission. The following highlights of the financial report were
presented:
Revenues increased $3,282,253 or about 1%
Major sources of increase are ad valorem and sales tax
Expenditures increased $5,645,743 or about 3%
Fund Balance Position-General Fund:
Total Fund Balance $101,975,040
Non-spendable - 128,721
Stabilization by State Statute - 23,509,092
Restricted, other (Register of Deeds) - 579,307
Assigned - 14,088,884
Unassigned – June 30, 2014 $63,669,036
Unassigned – June 30, 2013 $62,334,516
Includes the Public School Building Fund
Fund Balance increased $2.5 million and unassigned only increased $1.3 million as there was also
an increase in assigned and an increase in Stabilization by State Statute
General Fund Budget and Actual 2014 Budget Actual
Revenues $272,624,046 $275,712,975
Expenditures 199,289,228 186,691,842
Revenues Over (Under) Expenditures 73,334,818 89,021,133
Other Financing Sources (Uses) (73,334,818) (86,245,204)
Net Change in Fund Balance $ - $ 2,775,929
Revenue above budget due to inspection fees, property tax and sales tax revenues being more than
budgeted that can be attributed to an improving economy. Departments did well in controlling
expenditures and containing costs.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 216
Budget Actual
Property Tax: $161,641,517 $165,307,926
Other Taxes: $55,556,437 $56,379,614
Human Services Expenditures: $60,488,940 $53,615,690
Public Safety Expenditures: $52,682,637 $51,952,229
General Government Expenditures: $35,237,153 $32,535,630
Environmental Management Fund:
Charges for Services $11,900,000 12,689,379
Other Revenues 1,149,612 1,207,114
Expenses (12,302,733) (12,038,242)
Revenues Over (Under) Expenses 746,879 1,858,251
Other Financing Sources (Uses) (746,879) 281,122
Net change in Fund Balance $ - $2,139,373
(Positive change in fund balance due to the delay in getting DENR permit approval
for the partial cell closure project budgeted at $2,057,779. Project moved to FY 2015.)
Chairman Barfield expressed appreciation for the good report, congratulated past and current board
members and the County Manager and Staff for being good stewards of the County’s resources, and requested a
motion to approve the County’s Comprehensive Annual Financial Report.
Motion
: Vice-Chairman Dawson MOVED, SECONDED by Commissioner Zapple, to accept and approve the
Comprehensive Annual Financial Report for fiscal year ended June 30, 2014, as presented. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
APPROVAL OF BOARD OF EDUCATION BUDGET AMENDMENT – GENERAL OBLIGATION
SCHOOL BONDS
Budget Director Cam Griffin reported that New Hanover County Schools Facility Planning and
Construction Director Eddie Anderson is present to answer any questions the Board may have regarding the
individual projects to be funded by the recently passed school bond referendum.
In response to questions from the Board, Finance Director Lisa Wurtzbacher reported that it is anticipated
that the County would need to begin the purchase of bonds in the next fiscal year. The Board has already approved
the purchase of the land and the design for the new school and would need to approve a budget amendment to
establish the budget for the $160 million bond approved by the voters in November 2014. The budget amendment
would appropriate the bond funding by specific project as permitted. The local school board must obtain approval
from the County for any changes in the allocation between projects.
Motion
: Commissioner Watkins MOVED, SECONDED by Vice-Chairman Dawson, to approve the New Hanover
County Board of Education Capital Outlay Fund Budget Amendment #4, which establishes the budget for the $160
million bond approved by the voters in November 2014. Upon vote, the MOTION CARRIED UNANIMOUSLY.
APPROVAL OF CAPE FEAR COMMUNITY COLLEGE $40,000,000 GENERAL OBLIGATION BONDS
Finance Director Lisa Wurtzbacher reported that at the last Board meeting, Cape Fear Community College
(CFCC) provided information about the Advanced and Emerging Technologies Center (AETC) and the need for the
remaining $40 million bond funds. In 2008, $164,000,000 of Cape Fear Community College general obligation
bonds were approved by the voters of New Hanover County to construct and equip certain facilities. Since that
time, $124,000,000 of those general obligation bonds were issued and those proceeds were used to construct and
equip Union Station, Humanities and Fine Arts Building and a new parking deck. They are requesting the
remaining $40 million to construct and equip a new AETC at CFCC's north campus.
Additionally at the last meeting, the Board discussed the full time equivalence (FTE) and the projected
growth. The facilities master plan projected a 35% growth in FTE based on a methodology approved by the State
using the Budget’s FTE allocation. The FTEs found on Table 26 of the State’s web site represents what Ms.
Wurtzbacher believed to be the service level provided for the year, which shows a 19% growth rate from 2008. The
numbers from Table 26 were used to calculate the FTEs for the State’s allocation for the budget. In regards to the
Assignable Square Feet, the Facilities Master Plan recommended 280,000 Assignable Square Feet (ASF) and with
the additional square footage of the AETC and the completed buildings of Union Station and the Humanities and
Fine Arts buildings, the ASF would be 220,000 as follows:
Gross Assignable
Building Square Feet Square Feet
Union Station 251,000 124,368
Fine Arts (Estimated) 159,000 53,560
Total Added 410,000 177,928
Loss Lease Space (36,529) (35,132)
Net Added 373,471 142,796
Proposed AET (Estimated) 125,957 77,843
499,428 220,639
Ms. Wurtzbacher reported that the amount of debt to be issued for the remaining projects would be up to
the $40 million. Current estimates for the remaining projects show a need for $38.4 million as follows:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 217
Previously Issued Debt, Premiums and Interest $131,061,506
Project Expenditures to Date (113,876,845)
Remaining Budget: Fine Arts and Galehouse (11,253,184)
AET Budget and Contingency (40,396,184)
Downtown Renovations Budget (4,003,000)
Total Current Needs $(38,467,707)
Ms. Wurtzbacher reported that the County would be in compliance with the debt policy limits and that the
bond counsel and the Local Government Commission will determine and refine the amount to be borrowed. Any
remaining bond proceeds would be used to pay down the principle of the debt. The impact of the debt is as follows:
Projected
Goal 2014 2015 Impact Estimated 2015
Debt Service n/a $ 48,801,664 n/a* n/a*
Outstanding debt per capita 2,200 1,845 184 1,890
Outstanding debt to assessed value 1.60% 1.34% 0.2% 1.38%
Impact on debt service to
Operational Expenditures 20% 16.5% n/a* 17.6%
* No impact in fiscal year 2015. Debt service does not begin until fiscal year 2016. Average debt service
is estimated to be approximately $2,726,000.
In further discussion, the Commissioners made the following remarks concerning the authorization of the
bond funds.
Commissioner Watkins commented that while he supports the community college system the County needs
to consider the cost of the bonds and the annual cost of operations for the new buildings. A property tax increase
may be needed to cover the debt. In considering such an increase, he would weigh the cost of the debt to the
potential benefits from the buildings and new programs as they relate to area growth and business retention,
expansion and recruitment.
Commissioner Zapple commented he supports CFCC, as it is important to the future of the County’s
economic development by attracting new businesses to the area. In 2008, the $164 million referendum was
supported by the County Commissioners and approved by the voters. The three projects have provided more value
to the community due to lower construction costs during the recession. The issuance of the remaining $40 million
would continue to provide positive benefits to the community.
In response to Commissioner White’s question on the best methodology to use when assessing space needs,
Finance Director Wurtzbacher responded that the State’s Table 26 was used to calculate the budgeted FTE on the
State’s allocation form. Normally the calculation is based on the higher of the prior year or the higher average of the
last two years in order that no drastic increase or decrease in funding occurs. The State agreed that Table 26 was a
more accurate measure to determine space needs.
Commissioner White expressed concern about the decrease in enrollment in the college system for 2012,
2013 and 2014. He reasoned that the State Allocation Budgeted FTEs were not the best measure of the CFCC needs
to justify a 37% growth rate when the enrollments for Table 26 showed a 10% growth rate for the seven-year period.
He believed that the poor handling of the bond funds, the expense of the buildings, and the lack of space for student
use was due to the poor decision making of the first two buildings. The trend of debt accumulation and financing is
unsustainable without a tax increase. He reported that CFCC is proposing a 40% increase in its operations budget
for the new facilities and asking for $100,000 for a facilities master plan. He noted that he requested CFCC to
perform a space needs study before moving forward with the proposed building project. Although a proponent of
the college, he would not support the request for the $40 million bond issuance.
Chairman Barfield commented that the County’s fund balance continues to grow and it could issue the
bond debt and remain within its debt policy. Although he supports the community college and this request, he
believes there is a need to raise taxes to cover the college bonded debt and urged the Board to raise the tax rate. He
further commented that the community has been well served by the current projects and various companies have
noted that the training programs have been a positive factor in the development of job creation.
Vice-Chairman Dawson commented that she supports the request as the annual financial audit report
showed that the County is within the debt capacity limits set by the Board and has the ability to pay for the bond
debt. One of the most important responsibilities of the Commissioners is making decisions that will impact the
community and citizens for future years. When making decisions on any economic investment, the Board needs to
consider the return on investment. These investments will offer educational opportunities that would provide a
better quality of life for the citizens and business community.
Chairman Barfield requested direction from the Board.
Motion
: Vice-Chairman Dawson MOVED, SECONDED by Commissioner Zapple, to authorize Staff to move
forward in the process to issue the remaining general obligation bonds in an amount not to exceed $40,000,000, to
include working with Local Government Commission and the County’s bond counsel in preparing the necessary
documents to facilitate the sale. Upon vote, the MOTION CARRIED 4 to 1. Commissioner White voted in
opposition.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 218
APPROVAL OF AUTHORIZATION FOR WRIGHTSVILLE BEACH’S COASTAL STORM DAMAGE
REDUCTION PROJECT FOR CONTINGENCY USE IN THE ABSENCE OF FEDERAL FUNDING
Shore Protection Coordinator Layton Bedsole reported that staff proposes to secure federal and state
authorizations for the Wrightsville Beach coastal storm damage reduction (CSDR) project. The project would have
the exact attributes as implemented by the US Army Corps of Engineers (USACE) and would include Masonboro
Inlet north to Moore’s Inlet Drive (approximately 14,000 linear feet). The Wrightsville Beach permitting approach
would be the same that was successful in securing the Carolina Beach and Kure Beach CSDR projects’ permits.
In response to questions from the Board, Mr. Bedsole reported that Room Occupancy Tax funds would be
used to obtain the permitting at a cost of less than $35,000. The CSDR project would cost approximately $8 million
and if federal dollars were not available, then the County would have authorization to proceed with the project. He
requested authorization to negotiate a change order to the current contract for services with Coastal Planning and
Engineering, the firm who completed the Carolina Beach project and the ongoing Kure Beach CSDR projects’
permitting.
Chairman Barfield requested direction from the Board.
Motion
: Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to direct Staff to move forward
with permitting of the Wrightsville Beach coastal storm damage reduction project as a contingency to no federal
funding and to authorize staff to negotiate a change order with Coastal Planning and Engineering. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
PRESENTATION ON THE WATER QUALITY MONITORING IN NEW HANOVER COUNTY 2013-2014
ANNUAL REPORT
Dylan McDonnell, Long Range Planner of the Planning and Inspections Department, reported that the
water quality monitoring reports are available for viewing on the County’s Development Services web page. The
County has contracted with Coastal Planning and Engineering since 2007 to monitor seven creeks monthly within
the County to address public health concerns on water quality and to measure the overall health of the watersheds.
Brad Rosov, Coastal Planning and Engineering, presented the results of the Water Quality Monitoring
Program between July 2013 and June 2014. At each of the nineteen monitoring stations, water quality samples are
collected and analyzed for biological, chemical and physical parameters. Individual reports were given on each of
the watersheds of Barnards, Futch, Lords, Motts, Pages, Prince Georges, and Smith Creeks. Turbidity and
chlorophyll-a were determined to be “good” within all watersheds. Dissolved oxygen was deemed to be “good” in
all creeks with the exception of Prince Georges Creek and Futch Creek where their levels, on average, was
considered to be “poor" and “fair”, respectively. Enterococci was problematic within three of the watersheds of
Motts Creek, Pages Creek, and Prince Georges Creek. Futch Creek, Barnards Creek, and Lords Creek were deemed
“good” for enterococci. Dissolved oxygen levels exceeded the State standard within surface samples within Prince
Georges Creek, Pages Creek, Futch Creek, and Smith Creek. Dissolved oxygen levels improved within Barnards
Creek, Motts Creek and Lords Creek.
In response to Board questions, Mr. Rosov recommended that the County might want to investigate further
the cause of poor water quality in Pages Creek as the level of bacteria remains high, which may be the result of
improperly abandoned septic tanks or illicit septic tanks in the area. He commended the Board’s decision to move
forward with installing the sewer system in the Marquis Hill Subdivision, as it should improve water quality for
Barnards Creek. Additionally, he pointed out that the Heritage Park Subdivision is not within any of the seven
creeks monitored, as its runoff flows into the Northeast Cape Fear River.
On behalf of the Board, Chairman Barfield thanked Mr. Rosov for the report.
PUBLIC HEARING AND APPROVAL OF SPECIAL USE PERMIT REQUEST BY CARL RESANOVICH
AND CAROL LEAVITT TO PLACE A SINGLE-WIDE MOBILE HOME AT 6519 SYCAMORE AVENUE
IN CASTLE HAYNE (S-624)
Chairman Barfield opened the Public Hearing and announced that the special use permit process requires a
quasi-judicial hearing; therefore, the Clerk to the Board must swear in any person wishing to testify. He requested
all persons who signed in to speak or who want to present testimony to step forward to be sworn in.
The following persons were sworn in:
Ben Andrea
Brad Schuler
Chris O’Keefe
Timothy Kaplan
Carl Resanovich
Carol Leavitt
Eric Hanson
Current Planner Brad Schuler presented the request by the applicants, Carl Resanovich and Carol Leavitt,
for a Special Use Permit to place a single-wide mobile home on a 1.229-acre site at 6519 Sycamore Avenue in the
Castle Hayne community and provided a slide overview of the property.
The site is zoned RA Rural Agricultural The zoning ordinance requires single-wide mobile homes obtain a
Special Use Permit in certain zoning districts (RA, R-20, I-1, and I-2 districts), however, it does not require the
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
REGULAR MEETING, JANUARY 20, 2015 PAGE 219
Planning Board to review the application. There have been four Special Use Permits issued for mobile homes along
Sycamore Avenue since 1986, the most recent issued in 1997. The applicants discovered a permit was required after
applying for a building permit for the mobile home. The mobile home has received approval from the Health
Department for private well and septic service. The parcels immediately surrounding the site contain single-family
residential, including other mobile homes, and agricultural uses. Riverside Mobile Home Park is directly east of the
proposed location of the mobile home.
Staff concludes that the four findings of fact are positive and in accordance with Section 71 of the Zoning
Ordinance. The use will not substantially injure the value of adjoining or abutting property and that the location and
character of the use if developed according to the plan as submitted will be in harmony with the area in which it is to
be located and in general conformity with the plan of development for the County.
Chairman Barfield stated that no one had signed up to speak in opposition of the request and invited the
petitioners to make comments.
Timothy Kaplan, representing the petitioners Carl Resanovich and Carol Leavitt, stated that the property
will be used as a residential property and it would be in harmony with the area as there are other mobile homes
nearby. Property values would not be impacted. The property owners have received nine signatures of consent
from surrounding neighbors.
Eric Hanson, sales manager of Oakwood Homes, stated that the petitioners have purchased a mobile home
that will be in harmony with the area and built according to State standards and includes Energy Star rated heat
pump and appliances.
Chairman Barfield closed the Public Hearing and stated if the Special Use Permit is denied, the petitioner
may only resubmit at the discretion of the Planning Director. He asked whether the petitioner wished to proceed or
continue the matter. The petitioners responded that they wish to proceed and that they agreed with staff’s findings.
Chairman Barfield requested direction from the Board.
Motion:
Vice-Chairman Dawson MOVED, SECONDED by Commissioner Watkins, to grant the Special Use
Permit to place a single-wide mobile home at 6519 Sycamore Avenue in Castle Hayne based on the evidence
presented and the findings of fact concluding that: 1) the use will not materially endanger the public health or safety
where proposed and developed according to the plan as submitted and approved; 2) the use meets all required
conditions and specifications of the Zoning Ordinance; 3) the use will not substantially injure the value of adjoining
or abutting property or that the use is a public necessity; and 4) the location and character of the use if developed
according to the plan as submitted and approved will be in harmony with the area in which it is to be located and in
general conformity with the plan of development for New Hanover County. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
A copy of the order granting a Special Use Permit and listing the findings of facts is contained in SUP
Book IV, Page 54.
PUBLIC COMMENTS ON NON-AGENDA ITEMS
Chairman Barfield reported that no one had signed up to speak on non-agenda items.
Additional Comments:
Chairman Barfield congratulated Hollis Briggs, coordinator for the annual Martin Luther King events, in
recognition of the many successful functions and the parade in honoring the vision and dream of Martin
Luther King.
Vice-Chairman Dawson reported on the recent NCACC legislative conference and the Commissioners
success in getting several New Hanover County legislative priorities included onto the State associations’
priority list.
Commissioner Zapple congratulated Chairman Barfield for receiving the distinguished Black Image Award
at the recent Black Males Matter event.
ADJOURNMENT
There being no further business, Chairman Barfield adjourned the meeting at 11:00 a.m.
Respectfully submitted,
Teresa P. Elmore
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 checkout at all New Hanover County Libraries and on-line at www.nhcgov.com.