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2016-03-07 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MARCH 7, 2016 PAGE 474 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, March 7, 2016, 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 Beth Dawson; Vice-Chairman Jonathan Barfield, Jr.; 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 Pastor Shawn Blackwelder, St. Paul’s United Methodist Church, provided the invocation and Commissioner Watkins led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman Dawson asked if any member of the Board would like to remove or discuss any item on the Consent Agenda. Motion: Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to approve the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes – Governing Body The Commissioners approved the minutes of the Agenda Review Meeting of February 11, 2016 and the Regular Meeting of February 15, 2016, as submitted by the Clerk to the Board. Approval of Waiver for Landfill Tipping Fees for the Wilmington Housing Authority – Environmental Management Department The Commissioners approved a waiver of landfill tipping fees for the Wilmington Housing Authority for a maximum cap of 200 tons per year. Construction waste and bulky item waste generated from multiple property clean- up projects throughout the year will be hauled by the Housing Authority to the County Landfill. For the current fiscal year, a total of $80,988 in tipping fees (1,581 tons) has been waived. A copy of the application is available for review in the Environmental Management Department. Approval of New Hanover County Board of Education General Fund Budget Amendment #5 – Strategy and Budget Department The Commissioners approved the Board of Education’s Budget Amendment #5 for the following:  Records reimbursement from the Hoggard Band Booster Club for $2,900 for summer band contracts, transfers vacancy savings of $33,000 for Board of Education approved contribution to Legion Stadium Scoreboard, and miscellaneous budget transfers including transfer of Risk Management funds from salary reserve of $60,000;  Budgets project savings to fund $99,023 for modular building leases to be used during construction at Laney High School and College Park Elementary School at Sidbury Road;  Budgets $68,000 of lottery allotment to be used for traffic improvements and paving at Bellamy Elementary School and Murray Middle School. The application for lottery funds for these traffic improvements was approved by the Board of Commissioners at the October 5, 2015 board meeting. REGULAR ITEMS OF BUSINESS ADOPTION OF RESOLUTION OF MAKING CERTAIN STATEMENTS OF FACT RELATED TO A REFUNDING BOND ORDER AUTHORIZING NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS, INTRODUCTION AND ADOPTION OF SAID BOND ORDER AND ADOPTION OF RESOLUTION APPROVING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016 Chief Financial Officer Lisa Wurtzbacher presented the following information on the General Obligation Debt Refunding:  Current Debt to be Refunded:  2007 School Bonds aggregate principal of $7.5 million  2008 Park and Recreation Bonds aggregate principal of $10.785 million  2009 School Bonds aggregate principal of $29.5 million  2010A Cape Fear Community College and Park and Recreation Bonds aggregate principal of $11.505 million  2016 Refunded Debt:  Estimated par amount of $54.1 million  Estimated true interest cost of 2%  No extension of debt maturity – scheduled for 2031  Refunding Bonds – Estimated Savings: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MARCH 7, 2016 PAGE 475 Estimated Current Refunding Estimated Debt Service Debt Service Savings 2007 General Obligation Bonds $8,450,000 $8,084,633 $365,367 2008 General Obligation Bonds 14,307,849 13,096,858 1,210,991 2009 General Obligation Bonds 40,002,500 36,985,008 3,017,492 20010A General Obligation Bonds 16,508,625 15,776,458 732,167 Total Estimated Savings $79,268,974 $73,942,957 $5,326,017  Estimated net present value savings of $4.5 million or 7.59%  Requested Actions and Next Steps:  Board to approve resolutions and introduce and approve bond order  Local Government Commission approval April 5, 2016  Sale date set for April 21, 2016 – Savings would start in the next fiscal year In discussion, Ms. Wurtzbacher reported that the Certain Statements of Fact concerning the proposed bond issue are:  The proposed bonds are necessary and expedient to lower debt service costs to the County  The sums estimated for these bonds are adequate and not excessive for the proposed purpose  The County’s debt management policies have been carried out in compliance with the law  The County’s budgetary and fiscal management policies have been carried out in compliance with the law  The schedule for issuing the bonds does not require a property tax increase Chairman Dawson announced that the Board is requested to consider three actions relating to the issuance of not to exceed $64,000,000 General Obligation Refunding Bonds, Series 2016. In previous years, the County has issued General Obligation School Bonds, General Obligation Park and Recreation Bonds, and General Obligation Public Improvement Bonds and staff believes the County will gain debt service savings in refunding the outstanding general obligation. Certain findings of facts must be made and presented to the Local Government Commission. The findings are made in the Resolution Making Certain Statements of Fact. The Board must also introduce and approve the Refunding Bond Order and direct the Clerk to the Board to publish the notice of its adoption. Finally, the Board must adopt a Bond Resolution, which provides the terms of issuance of the General Obligation Refunding Bonds, Series 2016, authorizes the County to execute and deliver certain documents related thereto and directs the Local Government Commission to sell the bonds. Chairman Dawson requested a motion to adopt the Resolution Making Certain Statements of Fact. Motion : Vice-Chairman Barfield MOVED, SECONDED by Commissioner Zapple, to adopt A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE. Upon vote, the MOTION CARRIED UNANIMOUSLY. County Attorney Copley introduced and read the title of the BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA and she reported that the Bond Order in its entirety is included as part of the agenda package. Chairman Dawson requested a motion to adopt the Bond Order. Motion : Vice-Chairman Barfield MOVED, SECONDED by Commissioner Watkins, to adopt the BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Dawson directed the Clerk to the Board to publish notice of the Refunding Bond Order and requested direction on the Bond Resolution. Motion : Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to adopt A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016 OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA. Upon vote, the MOTION CARRIED UNANIMOUSLY. Copies of the Resolution Making Certain Statements of Fact, Refunding Bond Order, and Bond Resolution are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 5.1. APPROVAL OF CONDITIONS FOR THE COUNTY’S CHILD CARE SUBSIDY PROGRAM County Manager Coudriet presented the following background information concerning the child care subsidy program administered by the Department of Social Services: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MARCH 7, 2016 PAGE 476  The County has a child care subsidy waitlist of more than 600 children year over year  Waitlist is worked consistent with state and federal rules  FY 15-16 Recommended Budget included County money for child care subsidy – jobs program  Why use County funds for child care:  Quality child care affords a parent to work knowing their child is safe and secure  Parent(s) sometimes choose unemployment or under-employment because of child care cost  County jobs program can change this reality for some families  FY 15-16 Budget recommendation intent:  Address economic development and early childhood readiness  Fund based on proportional size of the child care waitlist  Ultimate adoption of $448,000 or the equivalent of child care for 100 children for the year  County Guidance:  Identify parent(s) that are unemployed or under-employed because of the cost of child care  Offer assistance to parent(s) willing to reenter the workforce, work more hours, or take a higher paying job  Place children in child care facilities rated at least 4 stars  Require a mechanism that ensures County funds go where the budget anticipated  Establish a data set that demonstrates efficacy of the child care/jobs program for more long term consideration  Status as of today:  DSS staff developed a survey aimed at parent(s) to determine interest in returning to work or working more hours  DSS staff developed a County application that mirrors state application  To date, no County applications have been filed:  Ten to twelve families showed interest but have not follow through with application  State/Federal Rules v. County Guidance:  DSS board and staff prefer to administer program consistent with state/federal program rules:  State/federal rules emphasis on the child and the child’s status as a citizen or legal resident  County guidance targets parent(s) who want to work – status of parent(s) is relevant:  Parent must be a citizen or legal resident who can lawfully work in the state  Objective to put parents back to work and provide quality child care  Currently 497 children on waitlist Chairman Dawson stated that the Budget included funding for the program to address the County’s strategic priorities of improving economic development by creating jobs and getting people back to work and the priority of helping young children get ready for school. It was her intent of helping those who are legally able to work to obtain child care so that they can increase their income, be removed from the social services rolls, and be productive citizens of the community. In response to questions from Commissioner White on why legal residents should receive County funding, County Manager Coudriet explained that legal residents most likely pay rent and part of that rent would satisfy property tax and they consume goods and pay sales taxes. Anyone who is legally working and has a reasonable need for the child care subsidy and paying their proportional share of the child care cost would be a viable candidate for the subsidy. Staff was not instructed to obtain information on whether the parents are legal or illegal residents or U. S. citizens. In addressing additional concerns, County Manager Coudriet explained that the program is very much needed and gave the example of the Head Start program, which is administered by the County Schools. Approximately 180 families meet the criteria and eligibility for the child care subsidy in just the 3-year-old age bracket. Staff believed that it was a reasonable assumption from the data that a larger number of children existed in the community. More time may have been needed to develop the program and a means of tracking the results of children entering kindergarten to determine their preparedness for school. Commissioner White commented that many people in the community are suffering and have great needs and he did not support the County funding federal and state programs. County Manager responded that the child care subsidy program is an economic development program that helps people who want to work, but who are unable to work because of the large expense of daycare services. These children benefit from being in a facility that can prepare them emotionally and socially for the school system. A Duke University study shows that kids in a preschool setting have an opportunity to be very successful when they enter kindergarten and the County has focused on these types of programs at the library, museum, and cooperative extension giving children another access to resources. Vice-Chairman Barfield pointed out that not all people living in the county are either U.S. citizen or illegal immigrants as there are many legal residents with visas, local employment, and are homeowners. Some from other countries are making large investments in the local economy. He reported that at a recent DSS board meeting, discussion was held on whether illegal immigrants were receiving the child care subsidy and asked whether the County had any evidence of illegal immigrants receiving County dollars. County Manager Coudriet responded that no County funds have been expended from the child care subsidy money. Vice-Chairman Barfield further commented that child care may not be affordable for working parents and this funding would pay for that service. Other parents may want to learn a skill in order to get a job and DSS provides NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MARCH 7, 2016 PAGE 477 funding for child care so that the parent can attend school. Federal and state rules say that if a parent or the child is a U.S. citizen, they qualify for the child care subsidy. Commissioner Zapple commented that the child care subsidy is a jobs program and if the Board wants to make a difference within the community in addressing issues of crime and creating a skilled workforce, the child care subsidy provides an opportunity. Every adult who legally joins the workforce is less reliant on social service programs, receives income, and becomes a more productive tax paying member of the community. Furthermore, children are better prepared to start their school career and based on the evidence from the Smart Start program, basic math and reading skills are far better when children attend a child care facility with a 4-star or higher rating. Commissioner Watkins commented that the fiscal year is ending in less than four months and he questioned whether adequate time was available to create and implement the subsidy program and asked how the unspent funds would be handled. County Manager Coudriet responded that the unexpended funds would accrue back to the fund balance unless the Board makes a decision to carry a portion forward into the next budget year for the program. Although staff continues to recommend the program and a mechanism is in place that would demonstrate evidence of the demand, the program is not in operation. Vice-Chairman Barfield reported that during the last DSS board meeting, it was learned that federal and state funds were expended and that $240,000 of the $448,000 appropriation would be needed. Commissioner Zapple said that to raise the comfort level with the child care subsidy program he believed it important to reiterate some of the points made by the manager and make some clear guidelines on how the money is to be spent and presented the following motion. Motion : Commissioner Zapple MOVED to state the position of the Board and administrative staff, that parents in either single or two-parent households who find themselves in the position of not working or working less than they could because of the cost of child care, the Board supports and recommends a County jobs program through the child care subsidy aimed at helping our citizens get back into the workforce with the following conditions related to the Department of Social Services for use of the budgeted County supplemental funding as follows: 1. Identify unemployed or under-employed parent(s) that are not able to pursue new or expanded employment because of the cost of child care; 2. Offer a child care subsidy if the parent(s) will enter the work force, return to the work force, increase hours of work or take a higher paying job; 3. The parent(s) recipients of the NHC County supplemental child care subsidy must have the ability to work lawfully; 4. New Hanover County does not fund or support illegal behavior and taking a job without legal status is unlawful; 5. Consistent with Smart Start funding, the supplemental child care subsidy would go to 4-star or higher daycare facilities. Vice-Chairman Barfield SECONDED the motion and requested to add the following conditions to the motion: 6. To include the offer of child care subsidy to persons seeking higher education or a GED in order to get a job; and 7. To extend the level of daycare service from 3 to 5 star facilities as some may not be in close proximity to the home or place of employment and cause a transportation burden for the parent. Commissioner Zapple agreed to add the two conditions to his motion. In discussion of eligibility of non-citizens for programs, Vice-Chairman Barfield reported that 7% of the population receiving assistance from DSS are non-citizens and noted that DSS does have a jobs program called Work First, which is currently assisting more than 150 participants. Substitute Motion : Commissioner White MOVED, SECONDED by Commissioner Watkins, to rescind the expenditure of $448,000 approved in the County budget for the child care subsidy program, as the funding is for a non-emergency use and County funds should be used to address the needs of citizens before being spent on the needs of legal or illegal residents. Upon vote, the MOTION FAILED 2 TO 3. Chairman Dawson, Vice-Chairman Barfield, and Commissioner Zapple voted in opposition. Chairman Dawson stated that it was the intention of the Board for the funding to be administered in the manner as presented in Commissioner Zapple’s motion identifying the conditions to expend the funds. The motion would make it an official statement. In response to questions, DSS Director Michelle Winstead clarified that the motion is consistent with Smart Start rules for funding and confirmed that Smart Start funding can be used for 3-star daycare facilities. Also, she said that there are income limits and varying levels of care depending on the number of children and their ages. Commissioner Watkins expressed concern that he had many questions about the guidelines of the program and the unexpended funds and he preferred to delay action until more information is known. Vice-Chairman Barfield said that the motion on the floor sets the conditions for the appropriations and requested the Board move forward with the vote. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MARCH 7, 2016 PAGE 478 Motion: Vice-Chairman Barfield MOVED, SECONDED by Commissioner Zapple, to call for the vote. Upon vote, the MOTION CARRIED UNANIMOUSLY. Vote Result: Chairman Dawson called for the vote on the motion by Commissioner Zapple and amended by Vice- Chairman Barfield to place a set of conditions for expending funds of the child care subsidy. Upon vote, the MOTION CARRIED 3 to 2. Commissioners Watkins and White voted in opposition. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chairman Dawson reported that no one had signed up to speak on non-agenda items. ADDITIONAL AGENDA ITEMS  County Manager Coudriet reported that the County sponsored maintenance event of the Mason’s Inlet dredging project has been completed within the timeline as authorized by the federal and state governments.  Commissioner Zapple reported that he along with Vice-Chairman Barfield and County Manager Coudriet attended the NACo Legislative Conference in Washington, DC. Productive meetings were held with Congressmen Rouzer and Jones, Senators Tillis and Burr, and Governor McCrory’s Washington, DC staff.  Vice-Chairman Barfield added that the state’s congressional delegation attended a breakfast meeting with the North Carolina Association of County Commissioners while at the conference and they provided updated information on various issues. He also attended Transportation Steering Committee meetings and will provide a report to the WMPO/Transportation Advisory Committee. The conference was well attended by county commissioners from across the country and there were several great national speakers. ADJOURNMENT There being no further business, Chairman Dawson adjourned the meeting at 5:25 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.