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2018-01-08 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, JANUARY 8, 2018 PAGE 1 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, January 8, 2018, at 4:02 p.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 M. Copley; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Daniel F. Lewis, First Presbyterian Church, provided the invocation and Commissioner Barfield 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 items on 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 December 14, 2017 and Regular Meeting of December 18, 2017. Approval of First Reading to Award a Solid Waste Franchise to Big D Recycling, LLC – County Attorney The Commissioners, pursuant to New Hanover County Code Section 44.55, approved the first reading request to award a solid waste franchise to Big D Recycling, LLC. The initial franchise period will run for seven years. A second reading is required for final franchise award. Approval of Appointments of Commissioners to Various Boards and Committees – Governing Body The Commissioners approved the finalized list of New Hanover County Commissioner appointments to various Boards and Committees for 2018. A copy of the list of Commissioners appointed to County Boards and Committees for 2018 is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 1.1. REGULAR ITEMS OF BUSINESS POSTPONEMENT OF A RESOLUTION TO CONGRATULATE NEW HANOVER HIGH SCHOOL WILDCATS FOR WINNING THE SCHOOL’S FIFTH NORTH CAROLINA HIGH SCHOOL ATHLETIC ASSOCIATION STATE FOOTBALL CHAMPIONSHIP Chairman White reported that the recognition of the New Hanover High School Wildcats for winning the school’s fifth North Carolina High School Athletic Association(NCHSAA) State Football Championship has been postponed until a future meeting. CONSIDERATION AND ADOPTION OF A RESOLUTION AUTHORIZING THE NEGOTIATION OF AN INSTALLMENT FINANCING CONTRACT FOR THE OGDEN FIRE STATION REPLACEMENT AND PINE VALLEY LIBRARY, DIRECTING THE PUBLICATION OF NOTICE WITH RESPECT THERETO, AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS THERETO Chief Financial Officer Lisa Wurtzbacher stated that the County has two capital projects, the Ogden Fire Station and the Pine Valley Library, where debt needs to be issued. These projects were budgeted to be funded either wholly or in part through loan proceeds. Ms. Wurtzbacher presented the following information regarding the projects:  Capital Projects:  Replacement of Ogden Fire Station:  Approximately 13,000 square foot facility  Total estimated project cost of $5.3 million  Groundbreaking July 2017  Construction of Pine Valley Library:  Approximately 19,000 square foot facility  Total estimated project cost of $6.3 million  Groundbreaking November 2017  Debt is not to exceed $9,150,000 due to other funding sources used for the projects: Amount Required Pine Valley Library 3,958,591 Ogden Fire Station Replacement 4,640,580 Outstanding on Ogden Fire Station Land 461,127 Estimated Closing Costs/Other Fees 89,702 Total $9,150,000 Staff did anticipate debt service payments for this in the debt schedule in the Board’s 2018 budget book: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, JANUARY 8, 2018 PAGE 2  Estimated Debt Service Payment: Estimated Project Payment Ogden Fire Station* 414,440 Ogden Fire Station Land 136,577 Pine Valley Library* 272,365 Total Estimated Debt Service Payment $ 823,382 *Terms used during the 2018 budget process were 15 years at 4%  Impact on Debt Capacity Limits: Estimated 2018 Amounts Projected Impact on debt per capita 40 1,692 Impact on debt to assessed value .03% 1.19% Impact on debt service to Operational Expenditures .21% 15.3% Ms. Wurtzbacher stated that staff anticipates the 2018 limits to remain within the policy set by the Board. All of the projected calculations are under those limits, so there is still capacity for future borrowing. The Board is being asked to approve the resolution as presented, which essentially contains all of the items needed to continue moving forward. The next steps in the process are:  Next Steps:  January 8, 2018: Board approves resolution and directs staff to publish notice of public hearing  January 22, 2018: Board holds public hearing and approves bank contract:  A public hearing is needed because security for the loan will be real property that the County owns  February 6, 2018: Local Government Commission (LGC) approves the issuance of debt  February 9, 2018: Closing documents finalized In response to Board questions, Ms. Wurtzbacher stated that she is confident the County will receive approval from the LGC. In regard to the Pine Valley Library project, there are several sources of revenue being used to fund the project in the form of loan proceeds of approximately $4 million; funds from the sale of the Myrtle Grove Library which are anticipated to be approximately $1.2 million; $468,000 from the General Fund; $150,000 from fundraising; and $490,000 from escrow funds that the library has raised over several years. There are no current offers for the Myrtle Grove Library property and staff is not actively pursuing selling it because there is a need to wait closer to when the new facility will open. In response to additional Board questions, Ms. Wurtzbacher stated that this matter will not go to market because it is an installment financing. Only one bid was received because many banks only wanted to finance for 10 years and we have 15 years in our budget. BB&T was the only bidder and they are within the budgeted amount. Regarding the verbiage in the resolution, Ms. Wurtzbacher explained that additional land did not have to be purchased for the Ogden Fire Station. The word “acquisition” is in the resolution because the existing loan for the land is being refinanced. Land was not purchased through loan proceeds for the Pine Valley Library and the funds will only be for equipping and construction. County Manager Coudriet stated he believes the cost for the land was approximately $444,000 for the Pine Valley Library land. Ms. Wurtzbacher confirmed that amount would be in addition to the budgeted amounts discussed today. Hearing no further discussion, Chairman White asked for direction from the Board. Motion : Commissioner Zapple MOVED, SECONDED by Vice-Chairman Watkins, to adopt a resolution to authorize the negotiation of an installment financing contract for the Ogden Fire Station Replacement and Pine Valley Library, directing the publication of notice with respect thereto, and providing for certain other related matters thereto. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 1.2. CONSIDERATION AND ADOPTION OF A RESOLUTION FOR THE AWARD OF BID FOR THE CONSTRUCTION OF LANDFILL CELL 7 ON THE SOUTHERN PROPERTY TO WELLS BROTHERS CONSTRUCTION Chairman White thanked Environmental Management Director Joe Suleyman for the hard work he puts into the Environmental Management Department operations. He regularly receives calls and emails about Director Suleyman and his staff about how accommodating and helpful they are with customers. Vice-Chairman Watkins also thanked Director Suleyman and his staff for their hard work. Director Suleyman expressed appreciation for Chairman White’s and Vice-Chairman Watkins’ comments. He stated this is a request to award the bid for a contract to construct the first cell, Landfill Cell 7, on the southern property. This project will be different from prior cell projects. It will be the largest cell constructed to date at this site. Typically, a four- or five-acre cell is built and this project will be for an approximately 10-acre cell. The design of this cell is different in that the side slopes will have a three-to-one slope instead of a four-to-one slope. This will allow for extra airspace in the cell and the design was approved by the Department of Environmental Quality. This is the department’s first try at this new design and incorporates some new technologies, one of which is the liner system. If there is a liner system failure, 70% of the time it is during installation. The liner system being incorporated into this NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, JANUARY 8, 2018 PAGE 3 design has filaments running through it. This allows the liner to be electrically tested to determine if there are any defects and address the issues before placing waste in the cell. Director Suleyman concluded his presentation stating that six qualified bids were received in December 2017. After review by staff and the consulting engineer, Wells Brothers Construction was selected as the lowest responsible bidder and the bid came in approximately $504,000 under budget. In response to Board questions, Director Suleyman stated that the County has not worked with Wells Brothers Construction prior to this project. Staff did perform a review of their references and across the board the references were stellar. The alternate bid for Cell 8A that was received from Wells Brothers Construction was within line, but was in excess of what is budgeted for the year by approximately $900,000. A brief discussion was held about the alternate bid for Cell 8A. Director Suleyman explained discussion was held about not moving forward with this part of the project. One reason the cost factor was so high, regardless of the bidder, is when that much liner area is exposed, only a portion of that area is being used at a time. In this case, 15 acres would be exposed. During the entire exposure time any rainwater that touches the liner is considered leachate and has to be treated at great expense even though it’s rainwater. In the design of Cell 8A a rain flap was incorporated, which is another thinner liner system on top, to help the existing liner to divert rainwater to the stormwater system. While there would have been a gain of the benefit of lower mobilization costs spread over many more acres, the cost of the rain cap made it cost prohibitive for long-term. The rain cap is built into the cost. Due to being significantly over budget at this time, staff can return to the Board with a request next year to try to incorporate Cell 8A and Cell 9 at that time. County Manager Coudriet stated that while Director Suleyman is doing a fantastic job with the presentation, what is not being discussed and is part of the calculations, are the impacts of House Bill 56. The cost of construction and the life of Cell 7 guarantees the County cover under the existing debt that is issued. He could not in good conscious recommend to the Board to move forward with an additional $900,000 investment, not knowing whether or not the County would still have flow control past the life of this. Staff is still working on House Bill 56, but it did impact and factor into the decision not to recommend the alternate bid for Cell 8A. In response to additional Board questions, Director Suleyman stated that in looking at the pricing ranges, everyone else is very close to each other. The department’s consulting engineer contacted Wells Brothers Construction to verify their bid quote was accurate. Wells Brothers Construction confirmed it was what they wanted to submit. Staff believes that as they specialize in earth moving, which is a large part of this project, they do know what they are doing and have the cost savings there. Another factor in the pricing is access to suitable soils for the construction project. They may have an agreement with a local quarry that has the suitable soil needed at a lower price than their competitors. Director Suleyman stated that he is confident there will not be a request from the contractor for an amendment for additional monies because of something that wasn't specifically identified in the request for bid. Verbiage concerning daily damages was included many years ago into these contracts. It’s based on a daily penalty of $1,000 per day. Director Suleyman further stated that four years ago when this process started, there was only a year’s worth of air space left and that has not changed. It's absolutely critical that Wells Brothers Construction get this cell built and built right the first time. Construction is planned for eight months and there is a year left of space remaining. Their performance and the performance of our engineers as quality control/quality assurance are going to be absolutely critical to this project. He believes if they cannot deliver, they will be able to pay the daily penalty as they are a very large company. While his department has not had the experience working directly with Wells Brothers Construction, in researching other projects they have handled the feedback received was that they were a substantial company, they know what they are doing, and are good to work with. Hearing no further discussion, Chairman White asked for direction from the Board. Motion : Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, to adopt a resolution to award the bid in the amount of $3,688,943.07 for construction of Landfill Cell 7 to Wells Brothers Construction, the lowest responsible bidder. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 1.3. CONTINUANCE OF THE PUBLIC HEARING REZONING REQUEST BY DESIGN SOLUTIONS ON BEHALF OF THE PROPERTY OWNER, ACI PINE RIDGE, LLC, TO REZONE 3.45 ACRES LOCATED AT 168 AND 178 PORTERS NECK ROAD FROM B-1, BUSINESS DISTRICT, AND B-2, HIGHWAY BUSINESS DISTRICT, TO (CZD) B-2, CONDITIONAL HIGHWAY BUSINESS DISTRICT, IN ORDER TO DEVELOP A HOTEL (Z17-12) Chairman White stated that Cindee Wolfe of Design Solutions on behalf of the property owners, ACI Pine Ridge, LLC, has requested that this item be continued and requested Ms. Wolfe to provide an update. Ms. Wolfe stated that she is the authorized agent for both the owner and developer, and apologized for the late timing of this request. This entire shopping center area is controlled by some restricted covenants and they are extremely detailed. It appears that one of the owners has most, if not all, of the input in this matter and it has been a dynamic situation working through the process with them. The project has been very well supported through the process. While this request is not causing anyone an imposition, having additional time to work with staff to get a little bit finer detail of some items found that had to be changed today, due to some of these restrictions, would be appreciated. Ms. Wolfe stated that the request is to continue this matter until the Board’s February 5, 2018 meeting as she believes all of the details can be sorted out by that meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, JANUARY 8, 2018 PAGE 4 Ms. Wolfe concluded her comments stating that the changes being discussed would otherwise, if this project were to be approved, be considered minor modifications and the Board would be asked to not remand it back to the Planning Board. The Planning Board’s recommendation forwarded to the Board of Commissioners was for basically the same thing. It's a hotel, it's in the specific space, and the conditions will remain the same. Chairman White thanked Ms. Wolfe for the update and requested direction from the Board. Motion: Vice-Chairman Watkins MOVED, SECONDED by Commissioner Kusek, to continue the public hearing for a rezoning request by Design Solutions on behalf of the property owner, ACI Pine Ridge, LLC, on property located at 168 and 178 Porters Neck Road, until the Regular Meeting of February 5, 2018. Upon vote, the MOTION CARRIED UNANIMOUSLY. PUBLIC COMMENT ON NON-AGENDA ITEMS Chairman White announced that no one signed up to speak under public comment. ADDITIONAL AGENDA ITEMS OF BUSINESS County Manager Coudriet stated that the community and the Board showed great patience with County staff starting last Wednesday with the winter weather issue. He thinks we faired quite well and the county will be open for business without a delay on Tuesday. County government was still able to provide service during this time and he thanked everyone for being patient. Chairman White stated that he knows everyone involved in these matters are well positioned to make the right decision at the right time and commended County Manager Coudriet and his staff. The Board feels well served in that regard and thanks everyone for their hard work. Commissioner Barfield stated that there will be various events occurring in the community this week to celebrate the life of Dr. Martin Luther King, Jr. A meet and greet this evening starting at 6:00 p.m. will be held at the Cape Fear Museum, a Pot Luck for Peace will be held on Thursday evening at the MLK Center, a banquet at the Hilton will be held on Friday evening, a breakfast banquet will be held on Saturday morning, and the annual parade will take place on Monday in downtown Wilmington. He looks forward to celebrating with our community and wished everyone a Happy New Year. Commissioner Zapple stated that he wanted to make comments about his time serving as the Commissioner representative on the Trillium Health Resources – Southern Regional Advisory Board. The LMEs and MCOs across the State are experiencing a great time of transition, as the funding model continues to change, to provide local services in our communities to assist those with mental and behavior health issues and intellectual and developmental disabilities. The time he spent this past year attending the meetings in Jacksonville, NC and building a positive working relationship with the other members of the Southern Regional Advisory Board has made a difference in our county. Trillium chose to make several major investments in New Hanover County focusing a considerable portion of their reinvestment funding in our community over the past two years through projects such as the splash pad, the Wilmington Social Recreation program, the new Integrated Family Services Center that offers walk-in help and has a mobile crisis team ready 24-hours a day, and the Wilmington Wellness City. He has enjoyed working with the Trillium staff and acting as a strong advocate for New Hanover County and our county staff to make sure New Hanover County receives the best opportunities for new innovative programs. Earlier this fall, County Manager Coudriet and he attended a meeting in Greenville, NC to make an appeal to the Trillium Governing Board to not cut the funding to the 100-bed drug treatment facility promised to New Hanover County for over two years. He is proud to say those efforts have paid off, and a funding model has been created that will get the Healing Place facility and Healing Transitions program here in New Hanover County, with the groundbreaking occurring later this year. Trillium has been a good partner for New Hanover County and the relationship continues to grow. He knows Commissioner Kusek will continue the good work started earlier this year and he stands ready to assist her in any way possible for the benefit of the citizens of New Hanover County. ADJOURNMENT There being no further business, Chairman White adjourned the meeting at 4:33 p.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.