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2015-05-04 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 290 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, May 4, 2015, at 4:00 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. 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 Chairman Barfield provided the invocation and Vice-Chairman Dawson 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. Commissioner Zapple requested to remove the approval of the minutes for a correction of the spelling of Sonoco in Agenda Item 14 of the April 16, 2015 Agenda Review Minutes. With no further corrections, Chairman Barfield requested a motion to approve the minutes as amended. Motion : Commissioner Watkins MOVED, SECONDED by Vice-Chairman Dawson, to approve the Agenda Review Minutes of April 16, 2015 as amended and the Regular Meeting of April 20, 2015 as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Barfield requested a motion to approve the remaining Consent Agenda items as presented. Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Watkins, to approve the remaining Consent Agenda items as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of the New Hanover County Board of Education Capital Outlay Fund Budget Amendment #7 – Budget Department The Commissioners approved the New Hanover County Board of Education’s Capital Fund Budget Amendment #7, which they adopted on April 7, 2015. The budget amendment records lottery revenue funds, decreases capital outlay funds for HVAC projects and moves funds to bond funds, and corrects the total for the Williston Middle School project. As of April 23, 2015, the remaining balance of lottery proceeds for future allocation is $730,450. A copy of the capital outlay fund budget amendment is available for review in the Budget Department. Adoption of Budget Ordinance Amendments – Budget Department The Commissioners adopted the following Budget Ordinance Amendments for fiscal year ending June 30, 2015: 15-055 Department of Social Services 15-066 Sheriff's Office 15-069 Cape Fear Museum Copies of the budget ordinance amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XXXIX, Page 9.1. REGULAR ITEMS OF BUSINESS ADOPTION OF PROCLAMATION RECOGNIZING MAY 10 – JUNE 21, 2015 AS ELDER ABUSE AWARENESS MONTH Chairman Barfield reported that the Cape Fear Elder Abuse Prevention Network has requested the Commissioners recognize the period between Mother's Day, May 10 and Father's Day, June 21, 2015 as Elder Abuse Awareness Month in New Hanover County. Chairman Barfield read the proclamation into the record and moved for adoption. Motion : Chairman Barfield MOVED, SECONDED by Vice-Chairman Dawson, to adopt the proclamation recognizing the period between Mother's Day, May 10 and Father's Day, June 21, 2015 as Elder Abuse Awareness Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Marianna Stacy, on behalf of the Cape Fear Elder Abuse Prevention Network, accepted the proclamation and commented on the importance of bringing awareness of elder abuse and the network’s goal of educating everyone on the indicators in order to stop elder abuse. Other members of the volunteer group were in attendance. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 291 A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.2. ADOPTION OF PROCLAMATION DECLARING THE MONTH OF MAY 2015 AS NATIONAL PRESERVATION MONTH Chairman Barfield reported that the Historic Wilmington Foundation has requested the Board to adopt a proclamation declaring the month of May 2015 as National Preservation Month in New Hanover County. Commissioner Zapple read the proclamation into the record. Motion : Vice-Chairman Dawson MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation declaring the month of May 2015 as National Preservation Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. George Edwards, Executive Director and Kent Stephens, President of the Historic Wilmington Foundation were present to receive the proclamation and expressed appreciation for the support of the Commissioners and staff for historic preservation and the Foundation. This year's theme is "Preservation: A Foundation for the Future." A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXXIX, Page 9.3. ADOPTION OF PROCLAMATION RECOGNIZING THE MONTH OF MAY AS MENTAL HEALTH MONTH Chairman Barfield reported that CoastalCare has requested the Board to adopt a proclamation recognizing the month of May 2015 as Mental Health Month in New Hanover County. Vice-Chairman Dawson read the proclamation into the record and moved for adoption. Motion : Vice-Chairman Dawson MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation recognizing May 2015 as Mental Health Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. CoastalCare Communication Specialist Kate Murphy was present to accept the proclamation and expressed appreciation for the involvement of the Commissioners and Staff in supporting mental health services for the community. Vice-Chairman Dawson thanked Ms. Murphy for the work she does in educating the public safety officials in receiving crisis intervention team training and certifications so that law enforcement can recognize and assist citizens in getting the proper help instead of taking them to jail or to the emergency departments. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.4. ADOPTION OF PROCLAMATION RECOGNIZING THE MONTH OF MAY AS FOSTER CARE AWARENESS MONTH Chairman Barfield reported that Michelle Winstead, Social Services Interim Director and Wanda Marino, Social Services Assistant Director, have requested the Board adopt a proclamation recognizing the month of May 2015 as Foster Care Awareness Month in New Hanover County. Commissioner Skip Watkins read the proclamation into the record and moved for adoption. Motion : Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation recognizing May 2015 as Foster Care Awareness Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Social Services Interim Director Michelle Winstead and Social Services Assistant Director Wanda Marino were present to accept the proclamation and reported on the need to have more people sign up to be foster parents. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.5. ADOPTION OF RESOLUTION AWARDING BID TO MCDANIEL SUPPLY COMPANY FOR INMATE COMMISSARY SERVICES FOR THE DETENTION FACILITY – SHERIFF’S OFFICE Captain Mark Vincent of the Sheriff’s Office requested the Board to award a contract to McDaniel Supply Company to provide inmate commissary services at the County’s Detention Facility. A Request for Proposals was sent to qualified vendors interested in providing inmate commissary services on January 13, 2015, and the bids were opened on February 27, 2015. He recommended awarding the contract to the current provider of the past four years, McDaniel Supply Company, based on the following: 1. 99.5% fill rate with zero rate for down time 2. Vendor owns hardware and software/no third party to deal with 3. Vendor provides 50 free indigent packs per week 4. Vendor tailored software to meet the County’s needs 5. Vendor takes pictures of individuals using the kiosks 6. Vendor provides value in commission/fees to County, consumers and citizens 7. No cost to the County and vendor will pay the County a commission fee up to 40% of net sales NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 292 Chairman Barfield requested direction from the Board. Motion : Vice-Chairman Dawson MOVED, SECONDED by Commissioner Watkins, to adopt a resolution awarding the contract to McDaniel Supply Company to provide inmate commissary services to the County’s Detention Facility. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.6. . ADOPTION OF RESOLUTION AWARDING BID TO METALTECH SYSTEMS, INC. FOR THE PURCHASE AND INSTALLATION OF CONSTRUCTION AND DEMOLITION RECYCLING EQUIPMENT Environmental Management Landfill Manager Sam Hawes requested the Board to award a bid to MetalTech Systems, Inc. for the purchase and installation of construction and demolition recycling equipment for the Landfill. A Request for Bids (RFB) was initiated for the purchase and installation of Construction and Demolition (C&D) Recycling Equipment and seven bids were received and reviewed by staff. Staff recommended awarding the bid to MetalTech Systems, Inc., the lowest bid in the amount of $804,966. The project will divert a significant amount of recyclable materials from the landfill and ultimately extend the life of the landfill. Vice-Chairman Dawson said that she supports efforts of saving landfill space and is very supportive of trying to find private sector solutions in dealing with the landfill. She noted the other costs of the construction project, which includes the State permits, concrete pad and electrical work for a total cost of $1.5 million. Chairman Barfield requested direction from the Board. Motion : Commissioner Zapple MOVED, SECONDED by Commissioner Watkins, to adopt the resolution awarding the bid to MetalTech Systems, Inc., for the purchase and installation of construction and demolition recycling equipment in the amount of $804,966. Upon vote, the MOTION CARRIED 4 TO 1. Vice-Chairman Dawson voted in opposition. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.7. ADOPTION OF A RESOLUTION AUTHORIZING THE PUBLIC TRANSPORTATION 5310 PROGRAM Finance Director Lisa Wurtzbacher reported that on November 17, 2014, the Board held a public hearing and approved a request to submit a grant application to the N.C. Department of Transportation for the 5310 Enhanced Mobility of Seniors and Individuals with Disabilities Program. She requested the Board to adopt the resolution authorizing the County Manager or his designee to sign the application and to enter into an agreement with NCDOT to provide public transportation services. The $175,000 grant provides the Senior Resource Center with funding for transportation costs of seniors. Motion : Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to adopt the resolution authorizing the County Manager or his designee to sign the application and to enter into an agreement with NCDOT to provide public transportation services for the Senior Resource Center. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XXXIX, Page 9.8. PRESENTATION OF THE FY15-16 RECOMMENDED BUDGET AND FY16-20 CAPITAL IMPROVEMENT PLAN County Manager Coudriet presented the FY15-16 Recommended Budget and FY16-20 Recommended Capital Improvement Plan with highlights as follows: Budget Themes  Advancing the County’s strategic management plan direction  Aligning resources to meet Board-identified priorities  Meeting ongoing and prior obligations  Planning for the long-term operating and financial sustainability of the County Tax Rate  Proposed 60.4 cent tax rate per $100 of assessed value  Five cent tax increase to be set aside in a debt service fund  Constructed to pay for ongoing annual debt service approved by the voters in 2006 and 2008 FY14-15 Tax Rate Comparison of Fifteen Urban and Peer Counties  The proposed property tax rate of 60.4 cents supports that New Hanover County is in a strong position as compared to fifteen North Carolina counties identified as urban with high-value investment bond ratings. FY15-16 Recommended Budget  General Fund = $306.6 million:  1.3% increase from FY14-15 revised budget  Fire Services = $13.8 million: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 293  4.9% increase from the FY14-15 revised budget  Environmental Management = $12.9 million:  18.7% decrease from the FY14-15 revised budget Economic Conditions - Local Economy Continues to Show Signs of Recovery  Register of Deeds’ collections are up 22% and trending favorably  Unemployment rate dropped to 5.1% as reported in March 2015  Passenger activity at ILM increased over the previous three years  Tourism was estimated at $478 million; a 4% increase over 2012  Population growth is at a slower rate than prior to the recession, but growing at 2.5%  Ad valorem tax base has only grown 4.6% since FY12-13 (revaluation year):  1.1% annual growth Revenue Picture  Increase in tax base = 2.4%  Sales tax estimated to increase 12% over FY14-15:  Two percent over expected collections  Increase in charges for services estimated to increase 2%  Sales Tax Revenue Growth Projections:  General Fund = $48.8 million  Schools = $11.8 million  Fire Services = $2.8 million  Growth of Revenue for Register of Deeds and Planning and Inspections Department Projections:  Register of Deeds = $3.1 million  Planning and Inspections Department = $3.4 million Fund Balance Recommended for Appropriation = $7.6 million  General Fund = $6.7 million for capital, capital outlay, and other one-time expenses  911 Fund = $900,000 Note: Appropriation of fund balance for capital and one-time expenditures is possible because of the County’s overall strong financial position, previous funding strategies, and best management practices, which should represent the strategy for budget development going forward. Budget Growth and Drivers - Commitment to Public Education  New Hanover County Schools:  $3.8 million current expense increase  $250,000 capital increase  $4 million total increase  Cape Fear Community College:  $3.8 million increase  Operating and debt service  Total = $6.9 million Economic Development  The Board established economic development as its first-among-equals priority.  Community surveys (2012 and 2014) identified the single highest priority of taxpayers are more jobs and better jobs.  $500,000 for economic development investments  $25,000 above contract amount to the Wilmington Film Commission  $50,000 above contract amount for Wilmington Business Development  $20,000 for the second of a three-year commitment to the Southeastern Partnership for the three County micromarketing alliances  Fund incentives for PPD, GE, Castle Branch, Fortron, and Live Oak  Water/Sewer extension along US Highway 421 to Pender County line: $12 million Limited Obligation Bonds issuance  WAVE Transit  Comprehensive development plan = $500,000  Dredging of the Carolina Beach Inlet = $300,000:  Designed template to determine efficacy of the eight feet plus or minus two feet theory  U-district Fund to be used for ongoing maintenance after the efficacy of dredged template Superior Public Education - Policy Goal Reflected by Preparing Students to be Successful in a 21st Century World  New Hanover County Schools:  Current expense = $71.7 million ($3.8 million increase)  Capital = $3.0 million ($250,000 increase)  Debt = $19.9 million ($32,000 increase)  Goal of per pupil funding allocation = $2,700; currently = $2,640  Cape Fear Community College:  Operating = $12.2 million ($1.6 million increase)  Debt = $17.5 million ($2.2 million increase)  Early Childhood preparedness:  Replacement of current Myrtle Grove Library to 17th Street Extension and South College Road  Relocation of Carolina Beach Library to Snows Cut Crossing Shopping Center = $45,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 294  Include $673,000 to expand childcare subsidy  Establish four Outdoor Environmental Learning Centers at NC Pre-K schools in partnership with the Soil and Water Conservation District = $10,000 Superior Public Health and Safety  Health and Human Services (HHS):  Space redesign for DSS = $250,000:  Implement elements of the HHS Functional Collaboration  Economic services supervisors = two  Expansion of walk in clinic hours at The Harbor facility = $100,000  Public Safety:  Expand prevention programs managed by the County’s Department of Youth Empowerment Services  Continue funding for Communities in Schools, Dreams of Wilmington, Kids Making It, Wilmington’s Residential Adolescent Achievement Place, One Love Tennis  $25,000 in funding for Blue Ribbon Commission of Youth Violence  $250,000 for Juvenile Justice Service review (anticipated change in the law of 16 year olds treated as juveniles in the courts instead of adults)  911 Backup Center  Upgrade of 800 MHz radio software Fire Services District  Fire Service District tax lowered to seven cents:  11% tax rate decrease  Sustains operations without compromising response system or service district fund health  Capital:  Fire engine  Continued fire hydrant installation  Acquisition of Ogden Fire Station Environmental Management  Tipping Fee decreased to $52/ton = 5.5% decrease:  FY15 (current year) decrease from $59 to $55 = 6.8% reduction  $52/ton fee through FY19-20  Fund operating obligations through FY19-20  Maintain unrestricted fund balance of 8%  $1.16 million toward closure/post closure reserve annually  $250,000 toward capital reserve annually  Fund projected capital projects through FY19-20:  $2.7 million in FY15-16  Materials Recovery Facility:  Partnership with the City of Wilmington  Expand existing regional recycling processing  Increase diversion of recyclable materials from the landfill Effective County Management: The Model of Good Governance  1.7% market adjustment effective first pay period of fiscal year:  Based on the Southeast CPI-U yearly average  2% merit pool with a range of potential merit awards:  Seven positions to right-size operations:  General Fund = six:  Three new custodial positions and one mechanic position for Property Management  Two economic case worker supervisors  Environmental Management = one environmental technician Capital Planning  Five year Capital Improvement Plan (CIP):  FY15-16 CIP = $6.8 million  $1.2 million fund balance appropriation  Capital Outlay:  FY15-16 capital outlay = $2.1 million  Funded via fund balance  Projects funded with the $1.6 million include:  Replacement of County elevators = $800,000  Replacement of HVAC units at the Main and Northeast Libraries = $253,000  Countywide drainage projects = $140,000  Health department phase 2 renovations = $414,000  Two projects funded by the Emergency Telephone Fund:  800 MHz Public Safety Radio System Upgrade = $2 million  Backup 911 Center and Emergency Operations Center = $1 million  Other projects in the Recommended Budget (not inclusive):  Register of Deeds - movable shelving = $200,000  Information Technology needs = $635,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 295  Motor vehicle fleet = $706,000; replacement vehicles: twenty-five for Sheriff’s Office, three for General Fund Departments and two for DSS; one non-replacement for Parks and Gardens and 1 non-replacement for the Sheriff’s Office \[purchased with ABC funds\], Global Positioning System (GPS) will be installed on these vehicles to conserve fuel and ensure employee safety Unknowns  Ebb and the flow of the economic recovery statewide and locally  Sunset of the State film incentive and its associated loss of sales taxes locally  Pending pieces of legislation that converts sales taxes to a State sales tax and redistributes funds via a per capita formula FY14-15 Tax Rate Comparisons for Counties with Aaa/AAA Bond Rating and Regional Partners  Graph demonstrates relative competitiveness to other Aaa, AAA counties and regional partners Next Steps  Public hearing for Budget = June 8, 2015  Adoption scheduled = June 22, 2015 BREAK: Chairman Barfield called a break from 5:40 p.m. to 5:55 p.m. DISCUSSION OF THE RECOMMENDED BUDGET In further discussion of the Recommended Budget, the Commissioners held a question and answer session with staff and made comments on the proposed Budget. The Commissioners directed staff to provide additional information for review and discussion at the Budget Work Session as follows: Commissioner Zapple:  Sales tax projections and the actual for the last two years Commissioner White:  Annual and accumulative growth assumptions for the ad valorem growth of 1%, 2%, and 3% growth and the last seven years; annual and accumulative sales tax projections for the next seven years accumulated based on 5, 6 and 7 percent growth rates  A definitive response from the Local Government Commission on whether they would allow the County to sell the next $200 million of bonded debt to pay interest only for a period of 2, 3 or 4 years, and the impact to cash management  The County’s fund balance based on the basic variables of the actual budget, the revised budget, and the gross tax and revenue collections from all sources Commissioner Watkins:  Additional information on the elevator replacements at the Judicial Building Vice-Chairman Dawson:  To check for any bond debt or any outstanding debt that would benefit from refinancing  To prioritize and rank items in the capital improvement plan and the budget with needs versus wants Consensus : The Commissioners agreed to schedule a Budget Work Session on Thursday, May 14, 2015 at 2:00 p.m. Agenda Review would follow at 4:00 p.m. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chairman Barfield reported that no one had signed up to speak on non-agenda items. ADDITIONAL COMMENTS:  County Manager Coudriet reported that staff had met with Jack Barto, CEO of New Hanover Regional Medical Center, and his senior staff about health care trends and the possibility of partnership opportunities with the hospital administering the County’s health plan, participation in the hospital’s wellness program, administering the County’s clinic, and contracting with the Sheriff’s Office for medical care of inmates. Further conversation will proceed with hopefully some opportunities for the Board to consider by early 2016.  Commissioner Zapple reported on attending a ribbon cutting for SGS Environmental Services, an international company based in Switzerland who offers environmental laboratory services.  Vice-Chairman Dawson reported on attending and representing the County at the annual meeting of the Southeastern Economic Development Commission. Many elected officials and economic developers attended to discuss the possibilities of grants for funding of infrastructure, buildings and business parks.  Vice-Chairman Dawson reported that she along with Chairman Barfield, Commissioner Zapple and Staff would attend the North Carolina Association of County Commissioners Assembly Day on May 6, 2015. Meetings with the local legislative delegation are scheduled to discuss important issues such as the sales tax redistribution bill, economic incentives, and the film industry grants.  Commissioner Watkins expressed appreciation for staff’s hard work in preparing the Recommended Budget and encouraged citizens to view the County’s current budget and the recommended budget online at the County’s web at NHCGOV.COM. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 4, 2015 PAGE 296 ADJOURNMENT There being no further business, Chairman Barfield adjourned the meeting at 6:45 p.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.