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2016-06-06 Regular MeetingNEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 554 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, June 6, 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 Father Timothy Yates, Saint Basil the Great Orthodox Church, provided the invocation and Commissioner Zapple 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. Hearing none, Chairman Dawson requested a motion to approve the Consent Agenda. Motion: Vice - Chairman Barfield MOVED, SECONDED by Commissioner Watkins, 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 Regular Meeting of May 2, 2016, Budget Work Session of May 12, 2016, Agenda Review Meeting of May 12, 2016, and Regular Meeting of May 16, 2016. Adoption of Resolution to Add Roads to the State Road System — Governing Body The Commissioners adopted NCDOT State Road Resolution in support of adding Brighton Road, Crystal Court and Cameo Drive located in the Waterford Place Subdivision to the State Maintained Secondary Road System (Division File No. 1227 -N). A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XL, Page 11.1. Adoption of Resolution Approving a Grant Request for Shallow Draft Inlet Funds for Inshore Dredge Material Management Site at Carolina Beach Inlet — Engineering Department The Commissioners adopted a resolution approving a funding request to the N.C. Division of Water Resources for Shallow Draft Inlet Funds to support ongoing management and maintenance of an Inshore Dredge Material Management Site at Carolina Beach Inlet. The estimated cost of the permitting and authorization is approximately $31,000. If approved, the grant would provide approximately $21,000 or 66% for the project. The remaining cost is eligible for reimbursement from Room Occupancy Tax funds. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XL, Page 11.2. Approval of March 2016 Tax Collection Reports — Tax Department The Commissioners accepted the Tax Collection Reports of New Hanover County and New Hanover County Fire District as of March 2016. Copies of the Tax Collection Reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 11.3. Approval of April 2016 Tax Collections Reports — Tax Department The Commissioners accepted the Tax Collection Reports of New Hanover County and New Hanover County Fire District as of April 2016. Copies of the Tax Collection Reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 11.4. Approval to Increase the Fee Schedule for Off -Duty Deputies — Sheriffs Office The Commissioners approved an amendment to the fee schedule for businesses and film productions contracts with the Sheriffs Office to pay off -duty deputies for security work. The fee was increased from $30 to $36 per hour with a four -hour minimum. The County will continue to retain $6 per hour for administrative expenses while the deputy will be paid $30 per hour. The impact for the remainder of FYI Budget is projected to be less than $5,000 and sufficient funds are available to cover the increase. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 555 REGULAR ITEMS OF BUSINESS ADOPTION OF RESOLUTION AUTHORIZING REALLOCATION OF THE COUNTY'S QUALIFIED ENERGY CONSERVATION BOND ALLOCATION TO THE STATE OF NORTH CAROLINA Chief Financial Officer Lisa Wurtzbacher reported that in 2008 Congress authorized $3.2 billion in Qualified Energy Conservation Bonds (QECB) and New Hanover County was allocated approximately $2 million from the state. The funds enable state and local governments to issue bonds at low interest rates for energy conservation projects. The County does not need the funds and has been asked to transfer its allocation to the state for the N.C. Agricultural Finance Authority to fund projects eligible for the Green Community Program for Renewable Energy. One of the projects includes Optiva KV in Duplin County, which converts swine waste to energy for southeast area farms. She requested the Board adopt a resolution reallocating the funds to the state for the project. Greg Montgomery of C1eanSource Capital, the administrator for the Green Community Program, requested the County's QECB allocation in conjunction with six other counties within the N.C. Southeast Regional Economic Development Partnership for Duplin County, who did not qualify to receive an allocation. Funding of $6.5 million is needed for a ground- breaking project for the swine industry that removes swine waste from farms and converts it into methane gas. The project will improve the environment by removing the waste from the farms and be an economic benefit for the region and the agricultural industry. In response to questions about the criteria for the allocation, Mr. Montgomery explained that the state received its allocation of $96 million based on the 2008 population census. States were instructed to sub - allocate to large local governments with populations of more than a hundred thousand. Duplin County did not qualify. New Hanover, Robeson, Wayne, Onslow, and Cumberland Counties, as well as Fayetteville, all part of the Southeast Regional Economic Development Partnership, received allocations that have not been used. The Finance Authority requested the partnership to support the initiative because of the benefit for the region. The bonds can be used for qualified conservation projects for the purpose of energy efficiencies, renewable energy, alternative fuels or water conservation. No sunset provision was set by Congress for the QEC bonds, but the County may lose its allocation with a change in administration. A balance of $60 million remains across the state; however, it is difficult for local governments to use the allocation on independent projects because of the cost associated with bond financing. It is a question of state law whether the allocations could be returned to the state for reallocation. Mr. Montgomery further explained the proposed operation of the Optima project and the economic benefit for the farmers. It is a revenue generator for the farms and allows existing businesses to expand their swine operations in Southeastern North Carolina. Chairman Dawson requested direction from the Board. Motion: Commissioner Watkins MOVED, SECONDED by Commissioner Zapple, to adopt the resolution reallocating the New Hanover QECB Allocation of $2,006,351 to the State, and requests the State transfer such County QECB Allocation to the N.C. Agricultural Finance Authority to be used in its Green Community Program to finance one or more qualifying projects located in the Region, or otherwise be used for projects in the Region. Upon vote, the MOTION CARRIED 4 to 1. Commissioner White voted in opposition. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XL, Page 11.5. PUBLIC HEARING ON THE ECONOMIC DEVELOPMENT AND ECONOMIC INCENTIVE APPROPRIATIONS FOR FISCAL YEAR 2016 -2017 Chief Strategy and Budget Officer Beth Schrader reported that in consultation with the School of Government concerning the State law, a separate public hearing must be held for economic appropriations and expenditures included in the FY 2016 -17 Budget. She also noted a correction to the allocation to the Wilmington Film Commission that included a one -time payment from last fiscal year. Chairman Dawson opened the public hearing to receive comments on appropriations and expenditures for economic development. The source of funding for these appropriations and expenditures will be from the General Fund and/or loans and grants. The purposes of economic development and economic incentive agreements are to increase the population, taxable property, agricultural industries, employment, industrial output, or business prospects for New Hanover County. The following economic development expenditures were recommended for appropriation in the FYI 6-17 Budget and are under consideration for adoption on June 20, 2016: Economic Development Agencies /Organizations Amount Foreign Trade Promotion Council $2,500 The Southeastern Partnership $20,000 Wilmington Business Development $193,093 Wilmington Downtown, Inc. $65,000 Wilmington Film Commission $120,620 Cape Fear Council of Governments $36,648 Southeastern Economic Development Commission $18,240 Previously Approved Contractual Incentive Payments Amount Castle Branch Up to $50,000 Fortron Up to $100,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 556 General Electric Up to $175,000 Live Oak Bank Up to $65,000 PPD Up to $300,000 AAI Pharma (Alcami) Up to $55,000 Infrastructure Investment: A capital project investment of $14.6 million to fund the construction of water and sewer infrastructure along U.S. Highway 421 from the Isabel Holmes Bridge to the Pender County line. The source of funding will be loan proceeds and/or grants and/or the General Fund of the County. Chairman Dawson reported that no one had signed in to speak and closed the public hearing. Commissioner White requested funding information on the Foreign Trade Promotion Council, Wilmington Downtown, Inc., and Southeastern Economic Development Commission. County Manager Coudriet noted the following: Foreign Trade Promotion Council funding is in response to the reauthorization of the foreign trade zone at the airport and the Port of Wilmington. The County's participation as a member in the Foreign Trade Commission Council will show its support of the policy and promote the tax benefit of doing business at the airport or Port of Wilmington. The County should receive a return on the $2,500 investment through the creation of jobs and inventory. Wilmington Downtown, Inc. (WDI) provides a strong staff and board that works to increase the tax base in the downtown area that lowers the tax burden for everyone. The WDI may be beneficial in a public /private partnership in dealing with County downtown property. The amount of the multiyear agreement has increased and it is warranted due to the strong team and its clear vision for the downtown area. Southeastern Economic Development Commission is an important membership due to the availability of Federal EDA grant funds for other government or chamber entities in the County. Without the membership, no entity would be eligible to receive funding. In regards to the economic incentive agreements, Commissioner White requested that the Board be notified when the Employment Security Commission provides proof of the jobs data for incentive payments. Chairman Dawson requested direction from the Board. Motion: Vice - Chairman Barfield MOVED, SECONDED by Commissioner Zapple, to approve the economic development appropriations and expenditures based on the finding that the appropriations and expenditures will increase the population, taxable property, agricultural industries, employment, industrial output, or business prospects of the County. Upon vote, the MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING ON THE FY2016 -2017 RECOMMENDED BUDGET County Manager Coudriet presented an update to the FY 2016 -17 Recommended Budget and FY 2017 -21 Capital Improvement Plan for New Hanover County based on changes made by the Board highlighting the following: Recommended Budget Themes: • Advances superior education • Advances superior public safety • Meets ongoing and prior obligations • Plans for the long term operating and financial sustainability of the County: • Financial obligation of more than $340 million since 2008 for bonds approved by the voters • To address the revenue needs, another tax increase is proposed that will be assigned to the debt reserve and be used for debt obligation payments Recommended Budget Update: • General Fund = $317.7 million: • 3.0% increase from FYI 5-16 revised budget • Fire Services = $13.2 million: • 5.2% decrease from the FYI 5-16 revised budget • Environmental Management = $15.5 million: • 11.9% increase from the FYI 5-16 revised budget • Recommended Budget Tax Rate: Proposed 62.9 cent tax rate: • 5.5 cent tax increase (netted to 5.35 cents after bond refunding) • Dedicated to pay for ongoing debt service approved • Fire Service District tax rate maintained at 7 cents • Environmental Management tip fee reduced from $52 to $50 per ton • Recommended Budget Investments: 1. New Hanover County Schools: Current Expense: $2,700 per pupil Capital: $3.0 million Coastal Horizons /Wilmington Health Access for Teens = $100,000 for a school -based health clinic at Hoggard High School NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 557 follows: 2. Cape Fear Community College: • Operating: $10.4 million (same as FY16 allocation) • Capital: $0 3. New Additional Resources at the Sheriff s Office: • Detectives and intervention specialists with the Gang Task Force and creation of ELEMENTS -Youth Violence Intervention Program • Additional detectives to staff Opioid Task Force • Eight detention officers to address the safety and security in the detention center facility 4. Continues to fund prevention and intervention programs for at -risk youth 5. Economic Development: • $100,000 Undesignated • $439,000 Economic Development Organizations: • WBD, WDI, SEDC, Film Commission, Southeastern Partnership • $745,000 Economic Incentive Payments • FY17 Capital Improvement Projects: $14.6 million for US Highway 421 water and sewer construction funded via loan proceeds Capital Planning: 1. Five Year Capital Improvement Plan (CIP): • FYI 6-17 = $31.4 million for CIP; $3.3 million funded by General Fund Revenues 2. Capital Outlay: • FYI 6-17 = $2.0 million for capital outlay • Funded via General Fund revenues Personnel: • 37 Positions Recommended in General Fund: • 21 Sheriffs Office • 12 DSS (50% reimbursable) • 2 Health (1 funded by Community Care NC) • 1 Human Resources (ABC funded) • 1 Parks (partially funded by Airlie Foundation) 2 Positions Recommended in Other Funds: • 1 Fire Services • 1 Environmental Management Fire Service District: • Revenues Ad valorem tax rate of $0.07 • Capital: • Tender replacement funded by loan proceeds = $254,000 • Continued fire hydrant installation = $10,000 • Ogden Fire Station replacement funded through loan proceeds = $4.6 million Environmental Management: Tip Fee: • Reduced to $50 /ton from $52 /ton, a 3.8% reduction (third consecutive year tip fee reduced) • Will remain at $50 per ton through FYI 8-19 $50 tip fee allows the County to: • Fund operating obligations • Maintain unrestricted fund balance of at least 8% Chief Financial Officer Lisa Wurtzbacher reported on changes to the Debt Service Fund as follows: Debt Service Fund Structural Change: • All CFCC Bonds, School Bonds, Parks and Recreation Bonds, General Government Debt from: • General Fund (CFCC 2008 Bonds /General Government Debt) • Public Schools Bonds (Prior to and 2014 School Bonds) • Debt Service Funds (2006 Parks and Recreation and 2008 CFCC Bonds) • Debt Service Refunding savings of more than $7 million over the life of the debt • 2017 Savings = $948,387: • School Bonds = $580,954 • CFCC Bonds = $73,923 • Parks and Recreation Bonds = $293,510 Chief Strategy and Budget Officer Beth Schrader reported on changes to the Recommended Budget as Board Changes to Recommended Budget: 1. New Hanover County Schools: • Current Expense: Reduced to $2,660 per pupil • Capital: Reduced to $2.015 million 2. Cape Fear Community College: • Operating: Increased to $10.9 million • Capital: Increased to $773,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 6, 2016 BOOK 33 PAGE 558 Outside Agencies /Partners: • WAVE - Increased by $55,000 to $312,000 • UNCW - $167,000 (with allocations /$167,000 in FYI and $166,000 in FY19) • CFRC &D - $9,000 • Cape Fear Literacy Council - $9,500 • Friends of Fort Fisher - $5,000 • Warrior Family Ministries - $7,200 • WARM - $10,000 • Recovery Resource Center - $5,000 • One Love Tennis - increased $6,000 to $25,000 • COG Continuum of Care for Homelessness - increased $12,500 to $25,000: • Adjustment due to last year's agreement when transitioned to COG • ACCESS of Wilmington — decreased $5,000 to $5,000 Other Adjustments to Recommended Budget: 4. Economic Development: • Wilmington Regional Film Commission - reduced $24,000 to eliminate one payment made in FYI and net of CPI contractual adjustment • Wilmington Business Development - increased $2,000 for CPI contractual adjustment 5. Tax Base: • $10,000,000 increase to taxable base (increase of $57,000 in revenues) 6. Debt Refunding Savings Budgeted for Contribution to Fund Balance - $806,000 7. Miscellaneous Changes: • Adjustments for grant allocations, etc. • $90,000 increase to backup 911 Center CIP project for licenses and maintenance costs; paid with 911 surcharge fees Tax Rate — After Changes: • Proposed 62.3 cent tax rate: • 4.9 cent tax increase • Dedicated to pay for ongoing annual debt service approved by voters • $2.0 million contribution to Debt Reserve • Assumes use of $2.5 million CFCC bond premiums to pay CFCC debt service in FYI Chairman Dawson noted that some adjustments were corrections and not necessarily from Commissioners' requests. Funding for the Continuum of Care was based on an agreement with the Council of Governments to operate the program and the Wilmington Film Commission was a correction on last year's funding. In discussion of the increase funding for WAVE, Ms. Schrader and County Manager Coudriet explained that the original funding recommendation was for bus routes in the unincorporated County. With the shortfall of $145,000 from ROAP grant funds, the WAVE Authority requested additional funds from the County to maintain its operations. Some grant funding is no longer available to the County and WAVE because of becoming more urbanized. Existing bus routes in the unincorporated area will continue to operate. Chairman Dawson opened the public hearing to receive public comments from New Hanover County Schools, Cape Fear Community College, and other agencies and individuals. New Hanover County Schools Chairman Donald Hayes of the New Hanover County Board of Education expressed appreciation for County funding of education in Public Schools. Superintendent Dr. Tim Markley presented the Schools' budget request highlighting the following: Accomplishments: • Academic Highlights: • District scored above state average in the following: • Grade Level Proficiency • College and Career Readiness Standards including ACT • Percent of Schools Meeting or Exceeding Growth Expectations • 100% Graduation Rates at Isaac Bear and Wilmington Early College High Schools • High - Quality Personnel: • 2016 Regional Teacher of the Year: Katie Snyder of Hoggard High School • 2015 State NCVPS E- Learning Coordinator of the Year: Wendy Kraft, Instructional Services • 2015 Regional Principal of the Year: Dr. Robin Hamilton, Parsley Elementary School • 287 National Board Certified Teachers and 933 teachers with a Master's or an advanced degree Special Initiatives: • Strengthening of Magnet Programs: • Freeman School of Engineering: Renewed Engineering Focus, More Opportunities for Student Competition, and Year -Round Calendar • Snipes Academy of Arts and Design: Renewed Arts Integration Focus with K -5 Instrumental Music and Year -Round Calendar • International School at Gregory: K -8 Spanish Immersion and Continued STEM Focus NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, JUNE 6, 2016 BOOK 33 PAGE 559 • D. C. Virgo Preparatory Academy: Expansion of Project Lead the Way, National Competition Teams, and Year -Round Calendar Low Performing Plan Initiatives: • Schools designated as Tier I Priority for Supplemental Funding: • International School at Gregory • Snipes Academy of Arts and Design • D. C. Virgo Preparatory Academy • Freeman School of Engineering • Williston School of Science, Math and Technology • Winter Park Elementary School • 3 Year Directed Improvement Plan and $2.5 million supplemental funding budget developed in conjunction with Instruction. • Performance Composite of District v State: The district's grade level proficient (GLP) composite for End -of -Grade and End -of- Course assessments is 63.3% (State 56.6 %). The district's Career and College Readiness (CCR) composite for End -of -Grade and End -of- Course assessments is 54.2% (State 46.9 %): • NHCS students out perform districts in the area on state End -of -Grade and End -of- Course. • NHCS vs. Urban and Similar -Size Districts: NHCS out performs urban districts with the exception of Wake County and out performs districts of similar size. • Graduation Rate of Target Groups: • Improvements made in the Limited English Proficient and Students with Disabilities groups • Schools Meeting or Exceeding Growth Expectations of 2014 -2015 = 80% (State 72 %) • An indication of the rate at which students in the school learned over the past year. Calculated using all end -of -grade and end -of- course test scores by an Educator Value -Added Assessment System. • Current Use of County Appropriations Support 29% of the NHCS Operating Budget and 89% of the NHCS General Fund as follows: • 54% Salaries and Benefits for 632 locally funded positions: • 61% Instructional support and 39% system -wide support, including technology and maintenance, clerical and central administration • 12% Teacher and School Administrator Supplements • 34% Non - salary operational, instructional and administrative support • Enrollment Growth projected = 26,458 • New Hanover County Funding Request: 2015/16 County Requested 2016/17 County Appropriation Increase Request Operating for NHCS $68,357,447 $3,079,153 $71,436,600 Operating for Charters $2,252,653 $261,627 $2,514,280 Capital for NHCS $3,000,000 $0 $3,000,000 Total $73,610,100 $3,340,780 $76,950,880 • Operating Request based on $2,700 per pupil • Estimated K -12 Enrollment: NHCS: 26,458 Charter Schools: 968 • Funding Priorities: • State Salary and Benefit increases for local employees. • Increase Teacher Supplements by 7% in Targeted Schools to enhance recruitment for the best teachers in high -needs schools. • Implement revised pay schedules to improve equity and make schedules more competitive. • New Positions to address increased student support needs with the opening of JC Roe Center as a suspension school, along with additional Counselors, Social Workers, Special Education Teachers, Technology and Central Support. • Capital Outlay Priorities include: • Completion of projects at Sidbury Road and Lakeside - does not qualify for lottery funding • Cooler replacement at Johnson and Gregory • Replacement of data/voice cabling at Bellamy Elementary • Replacement of 1,000 outdated computers • Replacement of 4 Maintenance/Transportation Vehicles • LGC does not allow the use of unencumbered fund balance for those projects In discussion of the fund balance, Chief Financial Officer Mary Hazel Small reported that the School Board decreased the fund balance from 8% to 7% to $17.7 million. The fund balance includes one -month reserve for salaries in case of delay in payments from federal reimbursements and for emergencies. Vice - Chairman Barfield expressed concern that Freeman, Snipes and D.C. Virgo Elementary Schools are 98- 99% minority students, while Holly Tree, Parsley, and other schools are 98 -99% majority white students and he asked how the Schools plan to address the issue of diversity and change the dynamics in the schools. Dr. Markley responded that repurposing the schools' magnet programs should bring in students from other parts of the County and increasing the supplement pay for teachers at those schools should bring in higher quality and more experienced teachers. These schools also have a smaller number of students in the classrooms and more mental health workers and assistant principals are provided. He reported that progress was being made but it would take some time to make changes in the programs. These schools may not have been the highest achieving schools, but the students achieved their growth targets of a year's worth of learning. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 560 Cape Fear Community College Dr. Amanda Lee, President of the Cape Fear Community College, on behalf of the Board of Trustees, expressed appreciation for the County's support of the budget request for FY2016 -17 that will enable the college to continue to be a leader in workforce development, preparing students for transfer to highly regarded universities, and being a community resource for lifelong learning where students can achieve a better standard of living for themselves and families. She reported that the state of the community college is very good. Dr. Lee requested an additional $1.2 million for operating and capital funds. The operating increases would fund five months of expenses for the Advanced and Emerging Technology Building and two months for the Humanities and Fine Arts Center. The funding would add a 3% salary increase for local employees to match the anticipated salary increase for state employees. She reported that the Advanced and Emerging Technology buildings are on schedule to be completed in early spring and a lot of interest has been shown in the flexible training lab in response to the community's economic development initiatives and needs. The increase in capital funding would provide a safe and secure working environment for employees and students. Additionally, Dr. Lee requested the County's assistance in the future to develop a multiyear plan to better address the college's maintenance and repair and renovation needs. She thanked the Commissioners, County Manager and staff for taking the time to work with the college in evaluating and understanding the budget requests and expressed appreciation for the funding of the debt service on the instructional facilities. Chief Financial Officer Jim Morton was available for questions. Other Agencies /Individuals Comments Jennifer Bell, Executive Director and Chad Porter, board member, of Access of Wilmington and operators of the Miracle Field and the Miracle League of Wilmington programs, reported that the primary purpose of the non- profit organization is to provide recreation and other services for people with disabilities. They expressed appreciation for the recommended funding and shared how the funds would give back to the community by providing a health and well -being resources for disabled individuals. The County has one of the largest populations of disabled community members in the state with almost 18% having either cognitive or physical disabilities. The organization provides exercise programs for group homes and nursing homes and they plan to offer national softball tournaments for the Wounded Warriors from Jacksonville and for other people in wheelchairs or with disabilities to play at the Miracle Field, the largest accessible baseball field in the country with a field depth of 185 feet. Nelson Beaulieu, a resident of the County and parent of two children in County Schools, expressed appreciation for the work effort of the Commissioners and staff in preparing the budget. As education is one of the County's priorities, he supported funding for the Schools at the requested amount of $2,700 per pupil so that schools in the district that are suffering and have the most needs, will get more assistance. He believed that the schools with the most needs would hurt the most from the reduction in funding. Mary Ann Furiss, founding member of Recovery Resource Center, expressed appreciation for the recommended funding from the County that will help those who are recovering from substance abuse and mental health issues. The group of volunteers are committed to assist those that have abuse problems with prescription medication, alcoholism, and opioid addictions. Initially, the organization received funding from CoastalCare and other local foundations. Grant funding will be used for public education with a primary focus on reaching senior citizens and veterans. Will Rikard, Executive Director of Phoenix Hometown Hires, requested the Board to reconsider funding the non -profit organization that helps individuals find jobs and prepares them through job readiness and life skills training classes. The County benefits from the organization because the programs work to reduce poverty, crime, recidivism rates, and the jail population. Their goal for the year is to put 150 residents into jobs and by 2019 to place over 250 people into jobs. Most of their clients have criminal records and some were homeless. The County's investment of $25,000 per year would get a 60% return on investments based on employment of 120 clients. Additionally, less people would need government support and businesses would benefit from more consumers. Current funding is from individuals, businesses, foundations and churches. In response to Board questions, Mr. Rikard reported that the County hired one person from Hometown Hires for the Parks and Recreation Department and the organization contracts with the Department of Social Services for Work First reimbursements of $1,500 per job. Their 9 -month program focuses on long -term measured stability, which includes continued education, career development, financial and budget planning. Mr. Rikard requested the Board to reconsider their decision and fund Phoenix Hometown Hires for the next 2 years at $25,000 so that they can continue to provide more services resulting in positive economic impact and positive outcomes for individuals. Paul Laird, Executive Director of Friends of Fort Fisher, expressed appreciation for County funding that will support programming for 20,000 plus children that visit the site on an annual basis and he reported that a request has been submitted to the legislators for an expansion of the facilities to accommodate more visitors at the historic sites. Emily Turner, Coastal Horizons Open House /Rape Crisis Center, requested the Board to approve the recommended funding for FY2016 -2017. She gave a brief overview of the programs and services provided by the Coastal Horizons and said that with County support, the Open House and Rape Crisis Center will be able to continue providing those vital services. Rhonda Bellamy, Executive Director of the Arts Council of Wilmington and New Hanover County, thanked the Commissioners for their participation in several events of the Arts Council in the development of the strategic plan NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 561 and workshops and panel discussions of the Wilmington Arts Summit. The Arts Council will once again participate in a comprehensive survey of arts organizations and their spending in the county. The last census reported direct expenditures of $5.7 million by arts organizations that adds millions of dollars in taxes to local and state coffers. Although classified in culture and recreation, the Arts Council is an economic development engine for the County that supports a multimillion - dollar industry. She expressed appreciation for the recommended funding of the upcoming survey. Jana Jones Halls, Blue Ribbon Commission on the Prevention of Youth Violence, expressed gratitude for County funding of programs that address issues of youth violence and poverty. Their programs will expand to serve the youth in grades 1 -12 in the after school program, summer programs, enrichment programs and the new summer employment program. Vice - Chairman Barfield requested that Ms. Halls work with the County's Human Resources Department to employ one or two youths from the summer employment program. Jimmy Pierce, Director of the Kids Making It (KMI), expressed appreciation for funding KMI and other human service agencies that serve the youth in the community. KMI will serve more than 500 kids beginning at the age of seven and up. Woodworking classes are planned for younger children and entrepreneurial and apprenticeship programs are available for teenagers. Starting this year, they will provide skill trade classes of electrical, plumbing, and HVAC to older teenagers and help them find summer jobs. Chairman Dawson thanked everyone for their comments and expressed appreciation for the non -profit agencies that support the County's strategic priorities of reducing and preventing crime and improving public safety, education, job creation and workforce development in the community. She reminded the Commissioners that copies of each funding request are available in the Commissioners' Office for their review. Hearing no further comments, Chairman Dawson closed the Public Hearing. BREAK: Chairman Dawson called a break from 6:30 p.m. to 6:45 p.m. PUBLIC HEARING AND APPROVAL OF REZONING REQUEST BY WILMINGTON BUILDERS, APPLICANT, ON BEHALF OF THE PROPERTY OWNERS, NOELLE HOLDINGS, LLC AND THE STOKLEY FAMILY TRUST, TO REZONE 0.45 ACRE LOCATED AT 2 SILVA TERRA DRIVE FROM R- 15, RESIDENTIAL DISTRICT, TO (CZD) O &I, CONDITIONAL OFFICE AND INSTITUTIONAL DISTRICT, IN ORDER TO DEVELOP AN OFFICE BUILDING (Z-952,4/16) Chairman Dawson opened the public hearing and requested staff to make the presentation. Ben Andrea, Current Planning and Zoning Supervisor, reported that the property located at 2 Silva Terra Drive, at the intersection of Silva Terra Drive and Carolina Beach Road, is zoned R -15. Zoning in the vicinity consists of a mixture of commercial and residential zoning districts. On the southwest side of Carolina Beach Road, the zoning is predominately R -15, including Silva Terra Subdivision and the surrounding parcels. An area of conditional R -7 exists in the 4800 block of Carolina Beach Road. Across Silva Terra Drive is a 1.06 acre Conditional Office and Institutional district that was approved in 2005 and consists of a multi - tenant office building. Another Conditional O &I district was approved in December 2002 and is conditioned to several uses including computer audio /video service, recording studio, personal real estate rental office, barber shop, service station, lawn mower repair shop, rental tool business, and real estate business. The area across Carolina Beach Road is a variety of zoning types under either City or County jurisdiction. A large area along Belle Meade Drive was annexed into Wilmington and under development with multi - family residential projects. A proposed multi - family residential project was recently approved by the Board. Other zoning districts across Carolina Beach Road include MF -L (City), R -10, and R -15. The petitioner is seeking to rezone a 0.45 acre parcel to (CZD) O &I, Conditional Office and Institutional District, in order to repurpose an existing 1,425 square foot residential structure for use as an office. It is a brick ranch style house that was constructed in 1970. The purpose of the Office and Institutional (O &I) District is to provide areas where institutional uses, professional office uses, and other uses compatible to uses of an office or institutional nature are encouraged to locate and to provide protection for this type of land use from encroachment by other less desirable uses. The district's principal means of ingress and egress should be along collector roads, minor arterial streets, and /or major arterial streets. The proposal includes using the existing driveway on Silva Terra Drive and a driveway permit from NCDOT will be required. The driveway would need to be widened to accommodate travel. The Planning Board discussed a driveway from Carolina Beach Road but ultimately decided that it was not feasible due to the location and the intersection. Additional landscaping will be required, including streetyard plantings along both Silva Terra Drive and Carolina Beach Road, foundation plantings around the building perimeter, and interior parking lot landscaping. A variance from the nonresidential structure setback and buffer yard requirements was approved by the Zoning Board of Adjustment on April 26, 2016 and was necessary because the existing structure and driveway location would not have met the requirements of Section 60.3 and Section 62.1 -4. The proposed plan must also go through the County's site plan/building permit review process. The process includes the review of technical standards of the County's development regulations, including landscaping, buffering, stormwater, and building code requirements. Staff concludes that the application is consistent with the requirements of the zoning ordinance and the additional zoning requirements for landscaping and buffering can be met. Staff concludes that the application is also consistent with the 2006 CAMA Land Use Plan and the intent of the Urban land use classification. At the May 5, 2016 Planning Board meeting, the Board voted 5 -0 to recommend approval with no conditions. Mr. Andrea responded to Board questions regarding the setback requirements and regulations concerning any expansion or modification of the structure. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 562 J.C. Hearne II, Attorney representing the petitioner, stated that the request is to retrofit the existing 1,425 square foot house for an office space for three to four administrative staff. The Zoning Board of Adjustment approved two variances that would be limited to the current structure and the Planning Board recommended approval of the rezoning. The proposed driveway would align with the driveway of the office building across at Silva Terra Drive. Mr. Hearne said that rezoning of the property is consistent with the intent of the 2006 CAMA Land Use Plan, as the purpose of the Urban classification is to provide for continued intensive development and redevelopment of existing urban areas; and it is reasonable and in the public interest because it maximizes the effectiveness of commercial uses by locating them within close proximity to the markets they serve and ensuring such commercial uses do not diminish the quality of life of the existing residential community. The change would be consistent with the County's Policies for Growth and Development because the parcel abuts to a busy commercial corridor and O &I use is across the street at Silva Terra Drive. The requested zoning change is consistent with the property's classification on the land classification map. Significant changes have occurred on Carolina Beach Road with large multifamily projects on the other side of Carolina Beach Road and the current zoning of residential use is no longer appropriate. The limited conditional use of the rezoning would make the property more suitable for redevelopment and mitigate the impact of the proposed use. The developer plans to leave the existing footprint of the house, some exterior maintenance will improve the aesthetics and a parking area will be added to the rear of the property. There will be no obnoxious lighting at night or unsightly dumpsters and the proposed use will fit into the residential neighborhood. None of the neighbors were in opposition of the request. Steve Niemeyer, of Wilmington Builders and representing the petitioner, reported that NCDOT has reviewed the project and he was told that a driveway permit will be required once a zoning change has been made. Their plans show that the driveway will have a wide turn in the parking area to accommodate any traffic; however, the proposed office use is for four employees and no customer oriented traffic is expected. The petitioner's intent is to leave the footprint and the structure in place with no expansions. Mr. Andrea clarified that no other variances would be allowed for the building unless another request comes back for review and he read for the record that the request is consistent with the purposes and intent of the 2006 CAMA Land Use Plan because the Urban classification calls for continued development and redevelopment of urban areas; and it is reasonable and in the public interest because it maximizes the effectiveness of commercial uses by locating them within close proximity to the markets they serve and by ensuring that such commercial uses do not diminish the quality of life of the existing residential communities. Hearing no further comments or discussion, Chairman Dawson closed the public hearing and asked the petitioner whether to continue the application to a future meeting or proceed with the Board deciding to approve or deny the rezoning request. Mr. Hearne requested the Board to proceed with the decision. Chairman Dawson requested direction from the Board. Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Watkins, to approve the request to rezone 0.45 acre at 2 Silva Terra Drive from R -15, Residential District, to (CZD) O &I, Conditional Office and Institutional District, finding that the request as described is: 1. Consistent with the purposes and intent of the 2006 CAMA Land Use Plan because the Urban classification calls for continued development and redevelopment of urban areas. 2. Reasonable and in the public interest because it maximizes the effectiveness of commercial uses by locating them within close proximity to the markets they serve and by ensuring that such commercial uses do not diminish the quality of life of the existing residential communities. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 4 OF NEW HANOVER COUNTY, NORTH CAROLINA, ADOPTED APRIL 7, 1971, is hereby incorporated as a part of the minutes and is contained in Zoning Book I, Section 4, Page 105. PUBLIC HEARING AND APPROVAL OF ZONING ORDINANCE AMENDMENT REQUEST BY DESIGN SOLUTIONS TO AMEND ARTICLE VII SECTION 81: MINIMUM PARKING REQUIREMENTS TO CREATE PARKING REQUIREMENTS FOR MULTI- FAMILY RESIDENTIAL PROJECTS BASED ON THE NUMBER OF UNITS AND NUMBER OF BEDROOMS PER UNIT (A -423, 5/16) Chairman Dawson opened the public hearing and requested staff to make the presentation. Ben Andrea, Current Planning and Zoning Supervisor, reported that currently the zoning ordinance requires two parking spaces per dwelling unit, regardless of unit type of single family, duplex, or multifamily residential uses. The petitioner is requesting to amend the parking standards to differentiate parking standards for multi - family residential development uses and base the minimum parking requirement for a multi - family residential project on the types and number of bedroom units. The petitioner proposes to require 2.5 spaces per three - bedroom units, 2 spaces per two- bedroom units, and 1.5 spaces per one - bedroom units. The change would align the County's regulations more with the City of Wilmington's residential parking standards of 1.5 spaces per one - bedroom unit, 2 spaces per two - bedroom units and 2.25 for three- bedrooms or more. The City's ordinance also allows a discretionary requirement of up to 2.5 spaces, and a reduction to 1 space per unit for elderly housing. Staff supports the petitioner's proposal to differentiate parking requirements based on the residential use type and to reduce the requirements for one - bedroom multifamily units; however, staff is reluctant to recommend increasing the minimum requirement for three bedroom units to 2.5 spaces. Staff recommends keeping that requirement at 2 spaces per unit for two- bedrooms or more. This application was heard at the May 5, 2016 Planning Board meeting with five members present. The Planning Board voted 3 -2 to recommend approval of staff s recommended version. Of the two members who voted in opposition, one member felt the change would be more appropriate as part of the upcoming project to evaluate and amend the County's land use regulations, and the other member was supportive of the staff - recommended version but NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, JUNE 6, 2016 PAGE 563 preferred increasing the recommended requirement of 2 spaces per two or more bedroom units to 2.5 spaces per two or more bedroom units. Staff believes the revision is appropriate at this time as it is a minor technical change and aligns with the goals of the upcoming comprehensive plan. Additionally, it creates more design flexibility and allows for maximum land use while not compromising parking needs for multifamily residential projects. In response to Board questions, Mr. Andrea explained that staff s slightly modified version would be carried forward with the Unified Development Ordinance (UDO) because reducing the requirement to 1.5 spaces is consistent with other jurisdictions as reported in staff s summary. Although the City requires 2.25, staff recommends 2 spaces and is unable to justify increasing the parking requirement. The draft comprehensive plan notes that the County has limited area for development and will need to maximize land uses and encourage other types of transportation. The recommendation allows for more design flexibility. Cindee Wolf of Design Solution, the applicant, reported that the American Planning Association suggests that the most popular method of determining off street parking requirements might be to consider other jurisdictions. The City's ordinance has a maximum number of spaces allowed that might not be the best for clients. The developers may know more about the needs of a development, as they would want a project with adequate parking that would be marketable and attractive. However, with the increase in multifamily developments and tax credit projects, the trend may be that more residents will use public transportation. She supported that the County's ordinance does not require a maximum number of spaces. She requested the Board to approve the changes at this time instead of waiting two or three years for the UDO to address parking requirements. Currently, the County does not have a multifamily zoning district, but the ordinance does require single - family lots to have at least 2 parking spaces for any parcel, which includes performance residential and high - density developments. The proposal would require multiple homes /units on a single lot or project to have 1.5 spaces per one bedroom unit. She requested approval of staff s recommendation as the modification would generally contribute to the public health, safety and general welfare of the community and create a more aesthetic and pleasing environment. In response to questions about the City's ordinance, Ms. Wolf explained that developers would want to make sure of adequate parking spaces for their clients. The City's ordinance limits the maximum number of allowed spaces. Three bedroom units can only have 2.5 parking spaces per unit. She requested the Board not to include a maximum number of spaces in the ordinance so that developers can provide adequate parking spaces based on the projects' needs. Chairman Dawson requested direction from the Board. Motion: Commissioner Watkins MOVED, SECONDED by Commissioner Barfield, to approve the staff - recommended version of the amendment, as the Board finds that this request for a zoning ordinance amendment as described is: 1.) Consistent with the purposes and intent of Policy 5.2 of the 2006 CAMA Land Use Plan because the amendment provides more design criteria that results in more efficient land use and impervious surface reduction. 2.) Reasonable and in the public interest as the amendment would maintain adequate minimum parking requirements while offering more flexible design criteria and lowering impervious surface coverage for multi - family residential projects. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the ordinance amending the Zoning Ordinance is hereby incorporated as part of the minutes and is contained in Exhibit XL, Page 11.6. PUBLIC COMMENTS ON NON - AGENDA ITEM Chairman Dawson reported that no one had signed up to speak on non - agenda items. ADDITIONAL ITEMS Chairman Dawson thanked staff for the hard work in preparing the budget and requested the Commissioners offer solutions in order to reach a consensus of the Board for approving the budget. In discussion, the Commissioners agreed that another budget work session was not needed. ADJOURNMENT There being no further business, Chairman Dawson adjourned the meeting at 7:45 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.