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2017-05-15 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 787 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, May 15, 2017, at 9:02 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present: Chairman Woody White; Vice-Chairman Skip Watkins; Commissioner Jonathan Barfield, Jr.; Commissioner Patricia Kusek; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney Wanda Copley; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Imam Abdul Rahman Shareef of the Tauheed Islamic Center of Wilmington provided the invocation and Vice-Chairman Watkins led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman White requested a motion to approve the Consent Agenda as presented. MOTION : Commissioner Barfield MOVED, SECONDED by Commissioner Kusek, 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 Special Meeting held on April 27, 2017, Agenda Review Meeting held on April 27, 2017, and Regular Meeting held on May 1, 2017. Approval of February 2017 Tax Collection Reports – Tax Department The Commissioners accepted the Tax Collection Reports of New Hanover County, New Hanover County Fire District, and New Hanover County Debt Service as of February 2017. Copies of the tax collection reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 32.1. Approval of March 2017 Tax Collection Reports – Tax Department The Commissioners accepted the Tax Collection Reports of New Hanover County, New Hanover County Fire District, and New Hanover County Debt Service as of March 2017. Copies of the tax collection reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 32.2. Adoption of Budget Ordinance Amendments – Strategy and Budget Department The Commissioners approved the following Budget Ordinance Amendments for fiscal year ending June 30, 2017: NCSU Extension Service 17-075 Senior Resource Center 17-076 Social Services 17-077, 17-078 Sheriff's Office 17-079, 17-080, 17-081 Copies of the budget amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XL, Page 32.3. REGULAR ITEMS OF BUSINESS PRESENTATION OF SERVICE AWARDS County Manager Coudriet recognized the following employee receiving a retirement award: Kathi Heslin, Social Services, retiring with twelve and a half years of service Chairman White presented a retirement award to Ms. Heslin and the Commissioners expressed appreciation and thanked her for her years of dedicated service. County Manager Coudriet requested the following employees to step forward to receive service awards: Five Years: Ondina J. Baranoski, Social Services Laura R. Barfield, Library Julie A. Depriest, Emergency Management/911 Sherry L. King, Register of Deeds Justine G. Montgomery, Social Services Ten Years: Amy M. Cook, Human Resources Twenty Years: Vanessa L. Causey, Library NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 788 Chairman White presented a service award to each person and the Commissioners expressed appreciation and thanked each one for their years of dedicated service. County Manager Coudriet requested the following new employees to step forward and be introduced: Jessica Berardi, Finance Department Yasmine Bines, Department of Social Services Sarah Broach, Department of Social Services Stacey Cohen, Register of Deeds Jerry Graves, Health Department Laura Hall, Health Department Megan McAllister, Emergency Management/911 Hakima Mobley, Department of Social Services Katherine O’Malley, Emergency Management/911 Phillip Philbee, Emergency Management/911 Kimberlee Pike, Emergency Management/911 Swanza Rhodes, Property Management Christopher Richardson, Information Technology Octavius Samuel, Emergency Management/911 Ashlee Schlotterbeck, Department of Social Services Dalzenia Scott, Property Management Tracy Watson, Emergency Management/911 Aisha Way, Emergency Management/911 Kara Williams, Emergency Management/911 Terrance Williams, Department of Social Services Alyssa Wilson, Emergency Management/911 The Commissioners welcomed the employees to County Government and wished them success in their new positions. PRESENTATION AND ADOPTION OF NATIONAL SAFE BOATING WEEK PROCLAMATION Chairman White reported that the USCG Auxiliary, Wilmington Flotilla 054-010-06, has requested the Board adopt a proclamation recognizing May 20-26, 2017 as National Safe Boating Week and invited Flotilla Staff Officer, Public Affairs Steve Morris on behalf of the USCG Auxiliary, Wilmington Flotilla, to provide the presentation. Flotilla Staff Officer Morris introduced Wrightsville Beach Vice Flotilla Commander Nick Giachino, Station Acting Commander Allan Bozeman, and Wilmington Flotilla Commander Keith Wilson and provided the following overview of the USCG Auxiliary, Wilmington Flotilla:  U.S. Coast Guard Auxiliary in New Hanover County:  Mission is to secure and ensure the safety of our waterways and people using the waterways  Wilmington Flotilla:  Teaches boating safety courses through the County. If born in 1988 or later, a person is required by law to have a boating license to operate a power boat.  Performs no cost vessel safety checks at State parks, marinas, boating ramps, and a person’s home  Provides displays of literature on water safety at locations throughout the area  Supports the active duty Coast Guard in New Hanover County and surrounding areas  Participates in local events such as the Azalea Festival  May 20 – 26, 2017 is National Safe Boating Week. The Wilmington Flotilla’s objective is to create public awareness about boating safety, paddle responsibly, and safety on the water:  Every year approximately 700 people die or are killed in accidents on the waterway  Life jackets save lives:  76% of all fatal boating accident victims drowned. Of these, 85% were not wearing a life jacket  When participating in paddle sports wear a bright bathing suit and be aware of surroundings Chairman White asked for direction from the Board. Motion: Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation declaring the week of May 20-26, 2017 as National Safe Boating Week in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman White thanked Wilmington Flotilla Staff Officer Morris for the presentation and members of the Wilmington and Wrightsville Beach Flotillas for attending the meeting. Commissioner Kusek stated she was pleased to learn that people operating boats are now required to take a boating safety course. She encouraged everyone to make every effort to operate a boat the same as they would operate an automobile and take the appropriate safety precautions for children and adult passengers. She expressed appreciation for the work being done by the Wilmington and Wrightsville Beach Flotillas. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 789 Commissioner Barfield stated that many years ago he became part of the Wrightsville Beach Flotilla when he owned his first boat and taking the boating safety course. During that time, he learned a lot about boating and boating safety. He thanked the Wilmington and Wrightsville Beach Flotillas for their great work. Commissioner Zapple stated that boating safety is important and expressed appreciation to Flotilla Staff Officer Morris for noting that swimming lessons from infants to adults was available at the YWCA. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XL, Page 32.4. ADOPTION OF A RESOLUTION ACKNOWLEDGING THE PLANNING AND COLLABORATION BY OUR COMMUNITY WITH THE WELLS FARGO TOURNAMENT, THE UNCW GRADUATION AND THE ONE TREE HILL CONVENTION County Manager Coudriet stated that three major events, the Wells Fargo tournament, UNCW graduation st and One Tree Hill convention took place the week of May 1 in New Hanover County. Due to the planning and collaboration efforts, everything went as smoothly as possible in the community. The fruits of the labor will be enjoyed for a long time to come with the number of folks that were exposed to New Hanover County and Wilmington. For the most part it was not an inconvenience to anyone who lives in the community. He expressed appreciation to the Board for reading the resolution and acknowledging all of the work that went on for more than a year into preparing for the st week of May 1 and recognizing that the Unified Incident Command approach works. Chairman White commended the efforts of everyone and noted how incredible the process was that he witnessed while visiting the Unified Incident Command area. It speaks to the confidence, ability, training, and planning of the Unified Incident Command to carry on with its job to where no one was aware of its presence and no incident happened. He expressed appreciation for the efforts of the Unified Incident Command and those who supported it for the work they performed above and beyond their regular duties to keep the community safe and secure throughout the week. Chairman White asked for direction from the Board. Motion: Vice-Chairman Watkins MOVED, SECONDED by Commissioner Zapple, to adopt the resolution recognizing the Unified Incident Command in support of the Wells Fargo Championship and other major events the week of May 1 – 7, 2017. Upon vote, the MOTION CARRIED UNANIMOUSLY. Commissioner Zapple commented that during the past week he has heard nothing but positive comments from the community while visiting different areas of the County. This included the positive feedback and compliments of the entire County staff from the Porters Neck residents he met with during this time. He is looking forward to seeing the results of the Choose Cape Fear campaign and reported that there will be a feature in the site selector magazine about the region coming out later this year. He expressed appreciation to the people working behind the scenes, Captain Lachlan MacNeish, Captain Kevin McDonald, and the communications team of Lieutenant Jerry Brewer and Communications and Outreach Coordinator Jessica Loeper. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XL, Page 32.5. FISCAL YEAR 2017 THIRD QUARTER FINANCIAL RESULTS Chief Financial Officer Lisa Wurtzbacher presented a fiscal summary for the General, Fire Services, and Environmental Management Funds for the third quarter of Fiscal Year 2017 through March 31, 2017:  General Fund – Revenues as of March 31, 2017:  Total General Fund revenues were $239.3 million which is approximately 81.6% of budgeted revenues for the year. In 2016, the amount was $233.7 million.  Collections of property tax were $165.9 million which is approximately 98% of budgeted property tax for the year. This is an increase of $4.1 million over the 2016 year.  Sales tax collected for six months is $32.7 million which is approximately 51.6% of budgeted sales tax. This is an increase of 7.3% over the 2016 year.  Other revenues were $40.7 million which is a slight decrease from the 2016 year. This is mainly due to the intergovernmental revenues being lower, which was expected and budgeted:  The Intergovernmental Revenues final amount may come in lower than budgeted due to the Human Services revenues. The Human Services expenditures may come in under budget.  This is offset by charges for services. Other taxes include the real estate tax which is seeing a continual increase in building and transactions occurring in real estate. There is also an increase in inspections revenues and erosion control permits. These items are offsetting where it was thought the County would be at this time during the year.  Debt Service Fund – Revenues as of March 31, 2017:  This fund accounts for the 6.9 cents to pay for some of the Cape Fear Community College (Community College) General Obligation Bonds and the Parks and Recreation General Obligation Bonds.  Total revenues received were $55.4 million which represents approximately 96.8% of budgeted revenues. All of the debt service is being paid out of this fund except for Environmental Management and Fire Services. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 790  Collection of property tax generated in this fund was $20.2 million which represents approximately 96.9% of budget.  All transfers in from other funds have been made.  General and Debt Fund – Expenditures:  Total expenses represent $224.7 million spent which is approximately 70.1% of budgeted expenditures. In the prior year $210.8 million was spent.  General Government, Human Services, Public Safety and Culture/Recreation between 65 and 70 percent spent:  General Government increased from 2016 to 2017 in part due to moving the Planning Department from Public Safety into General Government this year. There were also some increased expenditures for the revaluation and some Property Management projects rolled over from last year. Public Safety also had a slight increase from last year mainly in the Sheriff’s Department due to the budgeting of additional positions.  Education expenditures were $61.3 million and this amount does not include the debt service. It only includes operating and capital expenditures.  The Debt Service for the Community College and public schools increased by $4.7 million from 2016 to 2017 ($39.9 million to $44.6 million). The last portion of the Community College bonds and the first portion of the school bonds in FY16-17 is the first year to have a full year’s worth of payment for the new debt.  Fire Services:  Total revenues collected were $9.3 million which represents 68.8% of budget revenues.  Property tax revenues collected were $8 million which represents at 98.4% of budget.  Sales tax revenues collected at 43.5% of budget.  Loan proceeds and associated capital expenditure will not be made in the fiscal year.  Environmental Management:  Charges for service at 68.1% of budget, an increase from prior year due to continued increase in tonnage received.  Operational expenses are 50.4% of budget due to emergency reserve fund not used to date.  Capital expenses at 59.1% of budget. In response to questions regarding increased sales tax revenues, Ms. Wurtzbacher confirmed that this was due to the expansion of the tax increase expansion from the State. This is on top of the normal growth we would expect to see. In regard to questions about the Environmental Management roll off trucks, County Manager Coudriet stated that the County still maintains the green boxes at each recycling location. As such, it is responsible for moving the material to the Sunoco facility which is on County property and there is a need to maintain roll off trucks. In regard to questions about where the benefit should go due to lowering the Environmental Management tipping fee to $48 per ton, County Manager Coudriet stated this amount is what is being recommended to the Board. The amount is based on staff’s belief that it is their duty to provide the lowest possible cost to operate Environmental Management but also to fund the Board’s existing policy choices. It is the Board’s choice through a policy discussion to decide what to do with revenues at $50 per ton or higher and where to send those revenues. Under the current policy, the cost to provide the service is $48 per ton and covers the cost to run construction and demolition (C&D), fund all closure, post-closure, administrative reserve, and capital capital reserve. This is why the recommendation is to lower the rate. Commissioner Zapple stated he absolutely supports the lowering of the tipping fee. He requested staff to provide options of how the Board can make use of the potential additional revenue to start the policy discussion. He thinks there may be a better way to return it to the public so that every County citizen participates in the tremendous success. Chairman White stated he was not sure how we can dictate and control free market enterprise from government. If staff can develop some ideas with how to return the $600,000 to the citizens he would support that. ADOPTION OF AMENDMENTS TO THE FUND BALANCE POLICY Chief Financial Officer Wurtzbacher reported that the New Hanover County Board of County Commissioners adopted its current Fund Balance Policy in 2013 requiring a minimum of 21% on assigned fund balance. Staff has been evaluating how the policy can be updated to provide flexibility while still being responsible and also maintaining the AAA credit rating. This policy was a key factor in the County achieving a AAA credit rating from S&P, the firm's highest rating, making the County double triple A rated with its rating from Moody’s also at Aaa. After discussions with the County’s financial advisors, staff is recommending several amendments to the Fund Balance Policy that allows the County more flexibility in the use of fund balance while maintaining a fiscally responsible fund balance level. Those recommendations are highlighted in the attached policy and include: 1. Changing the policy level from a required 21% to a corridor of 18% to 21%. This change allows the County to drop below the 21% level if needed without being out of compliance with our policy. It is not the intent of the recommendation that we manage our budget and finances to the 18% level, but that instead, when needs arise or circumstances warrant, the County is afforded the flexibility of going below the 21%. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 791 2. Adding a section to the policy that would allow the Chief Financial Officer to assign funds above the 21% level to future capital and capital project needs. This may be done by either assigning the amount in the general fund or moving the funds to a designated capital project fund. 3. Adding a formal communication statement to the policy that the Chief Financial Officer will communicate to the Board of County Commissioners the level of fund balance. If the level is near the bottom of the allowed range, recommendations will be made by the Chief Financial Officer on where the level should be within the range. If any significant event or change occurs that may lead to the County being below the bottom of the allowed range, the Chief Financial Officer will notify the Board of County Commissioners. Commissioner Barfield commented everything being done right now fits with our vision of a vibrant, cultural community, and a community building a sustainable future for generations to come. The fund balance, economy, and sales tax continue to grow and the County is in a good position in being able to attract people to the area. He supports the policy amendments as presented. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Kusek, to adopt the amendments to the Fund Balance Policy. Upon vote, the MOTION CARRIED UNANIMOUSLY. COMMITTEE APPOINTMENTS Appointments to the New Hanover County Adult Care Home Community Advisory Committee Chairman White reported that up to two vacancies exist on the New Hanover County Nursing Home Community Advisory Committee with one application available for reappointment and one new application available for consideration. Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Kusek to reappoint Trish Looney to serve a three-year term on the New Hanover County Adult Care Community Advisory Committee with the term expiring May 31, 2020 and appoint Marcia R. Morgan to serve an initial one-year term on the New Hanover County Adult Care Community Advisory Committee with term expiring May 31, 2018. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointment to the Lower Cape Fear Water and Sewer Authority Chairman White reported that one vacancy exists on the Lower Cape Fear Water and Sewer Authority with one application available for reappointment and three new applications available for consideration. Vice-Chairman Watkins nominated C. Lawrence Sneeden, Jr. The nomination was seconded by Commissioner Barfield. Hearing no further nominations, Chairman White called for a vote on the nomination of C. Lawrence Sneeden, Jr. Vote Results: The Board voted UNANIMOUSLY to reappoint C. Lawrence Sneeden, Jr. to serve a three-year term on the Lower Cape Fear Water and Sewer Authority with the term to expire on May 31, 2020. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chairman White reported that one person had signed up to speak on non-agenda items. David Brenner, resident of Banyan Trail, spoke about flooding issues in the Avenel Subdivision and requested assistance from the Board. He stated that since the construction of the neighborhood there has been a low depression area on Halcyon Lane that has always flooded. Originally a gravity operated swale was to be installed from that low section to Little Creek to allow drainage and prevent flooding. The developer was allowed to eliminate the gravity operated swale with approval from New Hanover County and North Carolina Department of Environment and Natural Resources (NCDENR). In 1998, the Avenel Homeowners Association (HOA) requested that the County Engineering department look for a way to control the excessive flooding. The HOA noted there were environmental health concerns and there was going to be a new sewage lift station proposed for that low flooding area and that property owners' wells would be even more significantly impacted. In 1999 the County Engineering department responded that in order to protect the sanitary lift station, to minimize the flooding of large storms, and to meet the water quality requirements, the department proposed to pump the excess water from this area. The County Engineering department then requested and received modification to the stormwater permit and added the pump, which protects and discharges that flood water from around the lift station. After the flooding that occurred due to Hurricane Hermine, the HOA formed a Stormwater Committee to investigate the history of flooding and make recommendations. The HOA and Stormwater Committee requests that the County assume the operation and maintenance of the lift station which, according to NCDENR, still resides with the County, and that the County evaluate installing a larger pump. Vice-Chairman Watkins stated that Mr. Brenner spoke about this matter with the Cape Fear Public Utility Authority (CFPUA). He asked that Mr. Brenner and the HOA work with County Engineer Jim Iannucci on this matter. Commissioner Kusek stated that her concerns were still the same as when Mr. Brenner came before the CFPUA, that in 2011 NCDENR verified the conformance and conveyed the custodianship of the stormwater permit to the homeowners. She believes this concern needs to be clarified as it may be part of the issue. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 REGULAR MEETING, MAY 15, 2017 PAGE 792 Mr. Brenner stated that it was clarified in February with a clear statement from the department that handles water quality at the State level that it was never transferred to the HOA and still resided with the County. The HOA does not have a fund for handling this and there are a number of complaints. There are new residents in the area, some of which are attorneys, and there is an insistence that the HOA take action and correct it. Mr. Brenner feels the problem is with the County as the County designed, built, and permitted it. According to the State the County has the responsibility. Vice-Chairman Watkins noted that the CFPUA has installed seals in certain manhole covers and bolted some down. With the recent storm there seemed to a “bubbling” through the manhole covers. Chairman White commented that there are two issues and Mr. Brenner in working with Mr. Iannucci may resolve one of them. He stated that the County may or may not agree with the legal opinions Mr. Brenner referenced in his comments. He would like to know more about NCDENR conveying the permit to the HOA, whether or not the HOA accepted it, and what the legal status is of the County. If the County is required or has some history and legal obligation to do it he is certain it will be taken care of. He would like a legal opinion on this from the County Attorney and an engineering opinion from the County Engineer. Commissioner Zapple stated a sign is posted on the pump station referring any issues with it to the County. The sign references New Hanover County and CFPUA. He has received numerous complaints from homeowners in the area. He understands the frustration of the HOA being bounced from one bureaucratic agency to another. The fix seems to be a larger pump and the need for someone to be responsible for it. He would like to see a specific plan of action brought forward to the Board including the specific liability mentioned before of who is in charge of this pump. ADDITIONAL ITEMS OF BUSINESS Commissioner Barfield reported that he participated in the Carousel Center’s 14th Annual Making Legends Local event and hoped everyone who attended had a wonderful time. stth Chairman White announced that the June 1 Agenda Review Meeting and June 5 Regular Meeting have th been canceled and combined into an Agenda Review Meeting for Thursday, June 15 and Regular Meeting on June th 19. The public notice will be published today or tomorrow. th Commissioner Zapple expressed concern that canceling the June 5 meeting will impact the public hearing on the proposed budget and not provide the opportunity of the public to come forward to provide additional th information or ask questions about the budget. His understanding is that there may be an opportunity on June 19, but the Board will also have to vote on the budget the same night and the public needs clear direction on this matter. th Chairman White stated that the clear direction is that the public hearing will be on June 19 and the Commission will consider the budget that night or another night if it chooses. The Commission can make any changes or additions. It does not deprive at all any citizen of seeing what the proposed budget is today, participating, commenting, as they frequently do and are doing as we speak. ADJOURNMENT There being no further business, Chairman White adjourned the meeting at 10:05 a.m. Respectfully submitted, Kymberleigh G. Crowell 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 online at www.nhcgov.com.