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2018-02-19 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 32 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, February 19, 2018, at 9:00 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 M. Copley; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Jonathan P. Conrad, St. Paul’s Evangelical Lutheran Church, provided the invocation and Commissioner Zapple led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman White stated that Consent Item 5, Consideration of a Budget Amendment Related to Voting Equipment Replacement, is being pulled for additional discussion and requested a motion to approve the remaining items on the Consent Agenda as presented. Motion : Commissioner Barfield MOVED, SECONDED by Commissioner Kusek, to approve the remaining items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION AND APPROVAL TO MOVE TO THE CONSENT AGENDA ITEM 14 – ADOPTION OF A RESOLUTION REQUESTING THE NC DEPARTMENT OF ENVIRONMENTAL QUALITY (NCDEQ) TO REQUIRE TENANTS OF THE FAYETTEVILLE WORKS SITE TO CEASE OPERATIONS THAT RESULT IN THE PRODUCTION OF FLUOROCHEMICAL COMPOUNDS Chairman White asked for direction from the Board to move Item 14, Adoption of a Resolution Requesting NCDEQ to Require Tenants of the Fayetteville Works Site to Cease Operations that Result in the Production of Fluorochemical Compounds, from the Regular Agenda to the Consent Agenda and adopt the resolution as presented under the Consent Agenda. Motion : Commissioner Zapple MOVED, SECONDED by Vice-Chairman Watkins, to move Item 14, Adoption of a Resolution Requesting NCDEQ to Require Tenants of the Fayetteville Works Site to Cease Operations that Result in the Production of Fluorochemical Compounds, from the Regular Agenda to the Consent Agenda and adopt the resolution as presented under the Consent Agenda. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes – Governing Body The Commissioners approved the minutes of the Agenda Review Meeting of February 1, 2018 and Regular Meeting of February 5, 2018. Adoption of State Road Resolutions – Governing Body The Commissioners adopted the North Carolina Department of Transportation (NCDOT) State Road Resolutions in support of adding the following roads to the State Maintained Secondary Road System:  Bloomington Lane located within the Fields at Wendover and Wendover South Subdivisions (Division File No: 1232-N).  Lendire Road and Beacon Road located within the following sections of Copperfield, Hollyfield, Jacobs Ridge, Kingswood, and Berkeley, all sections of the West Bay subdivision in New Hanover County (Division File No. 1240-N). Copies of the resolutions are hereby incorporated as part of the minutes and are contained in Exhibit Book XLI, Page 4.1. Approval to Accept a Grant of Evzio (Injectable Naloxone) from Kaleo Pharmaceuticals – Health The Commissioners approved acceptance of 200 two-dose Evzio kits from the Kaleo Pharmaceuticals grant program. The New Hanover County Health Department has been awarded and received the 200 two-dose injectable Evzio kits from Kaleo Pharmaceuticals valued at $98,000. Evzio is naloxone that is in an auto injector. It is used to revive citizens who have overdosed on opioids, resulting in respiratory failure. Each year Kaleo Pharmaceuticals, manufacturer of Evzio, has a donation program that provides up to 200 kits at no charge. This medication will be housed in the clinic pharmacy and will be dispensed to first responders as well as the public upon request. This will be the second donation from Kaleo that the Health Department has received and is not a cash grant. A copy of the budget amendment is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.2. Approval to Submit a 2019 Grant Application to the North Carolina Governor’s Highway Safety Program for Funding in the Amount of $20,000 for “Booze it and Lose It” and “Click It or Ticket” – Sheriff The Commissioners approved a resolution authorizing the Sheriff’s Office to submit a 2019 Grant Application to the North Carolina Governor’s Highway Safety Program (GHSP) for 2019 grant funding for training and to purchase radar units. The total project costs are $20,000; $5,000 for in-state and $5,000 for out-of-state travel NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 33 and training reimbursements for Sheriff's Office personnel that will assist in the campaigns and training; and $10,000 for 4 radar units. There is no local match requirement. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.3. Adoption of Budget Amendments – Strategy and Budget The Commissioners adopted the following budget amendments amending the annual budget ordinance for fiscal year ending June 30, 2018:  Social Services 18-035, 18-037, 18-040  Sheriff’s Office 18-036, 18-041, 18-043 Copies of the budget amendments are hereby incorporated as part of the minutes and are contained in Exhibit Book XLI, Page 4.4. Adoption of a Resolution Requesting the NC Department of Environmental Quality (NCDEQ) to Require Tenants of the Fayetteville Works Site to Cease Operations that Result in the Production of Fluorochemical Compounds – County Manager The Commissioners adopted a resolution requesting the NCDEQ to require tenants of the Fayetteville Works site to cease operations that result in the production of fluorochemical compounds. The Cape Fear Public Utility Authority adopted a resolution requesting the same at their meeting on February 14, 2018. They asked New Hanover County to adopt a resolution as well. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.5. Discussion of Consent Item 5 and Approval of a Budget Amendment Related to Voting Equipment Replacement – Strategy and Budget In response to Board questions, County Manager Coudriet stated that the equipment rented will comply with the new law. It will be approximately 43 machines that deal with Americans with Disabilities (ADA) compliance. As such, the County does have an option and staff has identified a vendor who has agreed to rent to the County the units that are necessary to meet with the statutory changes. The County will have an election in the primary that is completely consistent with the law. County Manager Coudriet further stated that the law is in place and the County will not be in a position to identify a new vendor and new equipment until a number of issues with the State and local Boards of Elections are resolved. While it does not apply to all North Carolina counties, this County is not the only governmental entity finding themselves in a position of having to certify new equipment. Additional information: In 2013, the Voter Information Verification Act was passed requiring new certification standards for all equipment used after January 1, 2018. The County uses a combination of electronic poll books, direct record electronic equipment, and vote tabulation equipment. Based on these new standards, all direct record electronic voting equipment (touchscreen), which also serve as it’s ADA compliance machines, will be decertified. With the vacancies at the State Board of Elections Ethics Enforcement, there is no Board to certify any voting equipment. It is not anticipated that a State Board will be seated and a vendor certified this fiscal year. Therefore, this capital project is being removed from the budget this year and staff will request it once a State Board has been seated and a vendor/equipment has been certified. Chairman White asked for direction from the Board. Motion : Commissioner Zapple MOVED, SECONDED by Vice-Chairman Watkins, to approve Budget Amendment 18-045 related to the voting equipment replacement. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the budget amendment is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.6. REGULAR ITEMS OF BUSINESS ADOPTION OF A RESOLUTION RECOGNIZING THE NEW HANOVER COUNTY SHERIFF’S OFFICE COMMUNITY1 PROGRAM Commissioner Zapple stated that this resolution is to recognize the New Hanover County Sheriff's Office efforts through the Community1 program to assist at-risk individuals and their relationship within the community. He read the resolution into the record. Chairman White asked for direction from the Board. Motion : Vice-Chairman Watkins MOVED, SECONDED by Commissioner Zapple, to adopt a resolution recognizing the New Hanover County Sheriff’s Office Community1 Program. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman White expressed appreciation to Sheriff McMahon and his department for their hard work. In light of some of the events last week, the Board appreciates what they do and always will support the department and defer NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 34 to Sheriff McMahon for the professional advice that is provided to this community to keep everyone safe. He invited Sheriff McMahon to make comments and step forward to accept the resolution. Sheriff McMahon recognized Detention Officer Johnson who came up with this program. He thanked the Commissioners for their ongoing support. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.7. PRESENTATION OF DISTINGUISHED BUDGET PRESENTATION AWARD FOR THE FISCAL YEAR BEGINNING JULY 1, 2017 Chairman White stated that the County has received notice from the Government Finance Officers Association of the United States and Canada (GFOA) that New Hanover County has qualified to receive the Distinguished Budget Presentation Award for the 27th consecutive year. He asked Chief Strategy and Budget Officer Beth Schrader to provide more information about this award. Ms. Schrader stated that the GFOA has an award process for the distinguished budget presentation and it recognizes professionalism in the preparation of the budget and the budget documents. It looks at the budget document in the form of it being a policy document, a financial plan, an operations plan, and a communication device. It helps the citizens understand what it is we do and where their tax dollars go. For the 27th straight year, New Hanover County has been fortunate to receive the distinguished budget award. County Manager Coudriet stated that he doesn’t think it could be overstated that the Board’s budget is its strategic plan and a reflection of the Board’s priorities. The Strategy and Budget Office prepare documents that only a few counties or municipalities in the country are extended recognition for in terms of how it's developed. Ultimately it is not only a communication tool to the Board, but also to the community to remind everyone what the County has set as a priority and what it is actually doing to achieve its results. County Manager Coudriet thanked Ms. Schrader and her team for administering a budget that's fiscally sound, always balanced, and reflects the priorities of the community. Commissioner Barfield expressed appreciation for the work of the County Manager and his team in making th sure the County is fiscally and financially responsible. To have received this award for the 27 year in a row and be one of the few counties in the state to have two AAA bond ratings, demonstrates we are doing something right. PRESENTATION OF SERVICE AWARDS AND INTRODUCTION OF NEW EMPLOYEES County Manager Coudriet recognized the following employees receiving retirement awards: Stephanie Carver, Library, retiring with thirty years of service Chadrick Lewis, Sheriff’s Office, retiring with thirty years of service Duane Ward, Sheriff’s Office, retiring with twenty-nine years of service Chairman White presented retirement awards to Ms. Carver, Mr. Lewis, and Mr. Ward, and the Commissioners expressed appreciation and thanked them for their years of dedicated service. County Manager Coudriet requested the following employees to step forward to receive service awards: Five Years: Lauren Brothers Sheriff’s Office Ashley Outten, Social Services Ten Years: Tiffany Frahm, Social Services Jennifer “Bambi” Karabin, Engineering Twenty Years: Patricia Jauregui, Engineering Twenty-Five Years: Lora Howard-Thackrah, Finance Regina Randall, Finance 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 stand and be introduced: Dayana Abalo, Social Services Dietrich Blum, Health Robin Graham, Sheriff Claudia Grainger, Parks Gavin Kersey, Parks Jessica Laws, Property Management Arthur Lewis, Social Services Elena Lotten, Finance Margaret Pearce, Parks and Garden Dymarie Perez, Property Management Tina Reaves, Health Rebecca Sherrill, Social Services Jessica Wyatt, Health The Commissioners welcomed the employees to County Government and wished them success in their new positions. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 35 PUBLIC HEARING AND ACTION DEFERRED ON THE CONSIDERATION OF AN ECONOMIC DEVELOPMENT INCENTIVE GRANT PURSUANT TO G.S. 158-7.1 Chairman White opened the public hearing and invited Scott Satterfield, CEO of Wilmington Business Development, to present information on the economic development incentive grant request. Mr. Satterfield stated that Wilmington Business Development (WBD) serves as the County’s economic development partner in business recruitment, retention, and expansion and this project request covers different items as it relates to those aspects. National Gypsum is one of the leaders in the United States of wall board, also known as sheet rock. National Gypsum made the Wilmington facility dormant in 2008 with no clear indication whether they would ever put that facility back to use again. It's a very important operation and has been an important operation in the County. National Gypsum and company representatives contacted WBD several months ago regarding a potential opportunity to evaluate reopening the Wilmington facility. The company’s facilities in other states have also been dormant since 2008. In order for the company to locate and reestablish its operation, nearly $25 million of capital expenditures would take place in this County to get the facility up to working order and modernize it. Another aspect is that 51 new jobs would be created with an average annual salary of over $57,000 per year, not including benefits. Benefits would be on top of that. Again, the company would spend around $19 million on plant equipment, $2 million on outbound rail, $3 million on additional equipment, and approximately $1 million on rail cars. An economic impact assessment was done by the University of North Carolina - Wilmington that shows the annual impact of this operation is over $10 million a year in this County. The one-time impact of the reestablishment of this facility is nearly $28 million. The employment associated with this would affect 120 jobs and labor income of over $7 million per year. WBD is asking New Hanover County and the City of Wilmington to partner in the form of an incentive grant to New NGC Inc. d/b/a National Gypsum Company for a re-opening of its facility in the City of Wilmington. Benefit outcomes include expansion of the tax base and increasing the number of well-paying jobs, and the return of manufacturing jobs to the community that make traded sector products. The proposed incentive grant from New Hanover County is up to $70,000 per year for a total of five years and not to exceed $350,000, with a separate incentive grant from the City of Wilmington. The grant is subject to the appropriation of the then-sitting Board of County Commissioners. Additionally, the appropriation is subject to National Gypsum investing at least $25 million in capital improvement in the City of Wilmington and increasing the number of new full-time equivalents by at least 51 at their City of Wilmington facility. The City of Wilmington will conduct a public hearing on February 20, 2018. The reopening time frame would be approximately one year from the decision on where they are going to re-modernize the facility. If the decision is made to utilize the Wilmington facility, operations may possibly begin sometime late in the first quarter or early second quarter of 2019. Mr. Satterfield concluded his comments stating that WBD has enjoyed strong dialogue with the company and numerous allies related to the company. WBD feels the diversification this continues to add to our regional economy is tremendous. He reiterated that should the Board of Commissioners and the Wilmington City Council approve this request, it is still not guaranteed National Gypsum will choose to utilize its Wilmington facility. Chairman White directed that the record reflect that this public hearing is to receive comments on appropriations and expenditures for economic development and economic incentive agreements. The source of funding for the agreements will be from the General Fund of the County. 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 County is considering entering into an incentive agreement with New NGC, Inc. d/b/a National Gypsum Company that would result in expenditures of up to $350,000 over five years in annual payments of $70,000 to reopen, refurbish, and operate the existing Gypsum facility located at 838 Sunnyvale Dr. Wilmington, NC. New NGC, Inc. will create 51 new jobs with an average salary of at least $57,000 and spend a minimum capital investment of $25,000,000. Chairman White announced that Mr. Satterfield spoke in favor of the request and asked that those who signed up to speak in opposition to the request to give their comments. Harper Peterson, resident of Orange Street, stated that he does not want to downplay or disparage National Gypsum, as he thinks we need that industry, especially here in southeastern North Carolina. However, he would like to know if the Board and staff considered the environmental impacts of this reapplication and reopening the plant, specifically the formaldehyde emissions. National Gypsum received a new permit in 2016. The last emissions count was in 2009 representing formaldehyde emissions in 2005, which he believes was 57 pounds. The new application allows up to 8.77 tons of formaldehyde emissions. This is considered a hazardous air pollutant. He is sure the filtration systems that will be required by the NC Department of Environmental Quality (NCDEQ) and Division of Water Quality will be monitored, if they have the staffing and the funding. The question needs to be addressed and the community needs to be part of this conversation. He requested the Board to continue the item to allow time to research and gather information on the formaldehyde emissions and engage the community. Johnnie Henagan, resident of Washington Street, stated that while he appreciates this project will be an economic activity here in this community, he has similar concerns to Mr. Peterson’s. He’s concerned about the company, its past and proposed future in such proximity to neighborhoods such as his, Sunset Park, and the river. The company will produce gypsum, which uses formaldehyde in the process. This is a dangerous chemical and should not be used in close proximity to residential neighborhoods, nor to our very vulnerable and vibrant Cape Fear River. He encouraged the Board to thoroughly study the company before giving them funds and also do an in-depth study on the impacts of this chemical. Bob Stewart, resident of Old Town Street, stated that he and his wife just moved to the area in May 2017 and live in the River Lights community. He just heard about this matter last night and also learned that a minority of the NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 36 Board members just learned last night about the details of this item. He feels this portion of the Board, the citizens, and the communities around the plant were kept in the dark. Chairman White asked Mr. Stewart to elaborate on what he meant about the minority being in the dark and whether or not the community was kept in the dark. He is not aware of that and asked Mr. Stewart to share any evidence or facts he had on it. Mr. Stewart responded that he spoke with people who said they just learned recently about the details about the emissions. In his opinion, this is no way to run the public's business. If Chairman White was the majority of those left out in the dark on the details of this formaldehyde emissions, Mr. Stewart doesn’t think Chairman White would feel kindly towards these actions either. He understands that the permit in 2008 or 2009, when National Gypsum ceased operation, allowed the company to emit up to 59 pounds per year of formaldehyde. The permit the Board is acting on, it is his understanding, would allow this company to emit not pounds, but 8.77 tons per year of formaldehyde into the air. He does not think the residents of River Lights and other communities will feel well served by this being approved. Chairman White allowed Mr. Stewart an additional thirty seconds to complete his comments due to responding to his question. Mr. Stewart concluded his comments stating that the community has just experienced an environmental impact through GenX and Chemours’ chemical dumping, which is being timidly approached by the state. He does not understand why the Board would rush ahead to approve this request to add environmental and air quality damage to the community. He requested that the Board continue the matter until further vetting and discussion is done. Bob Parr, resident of Falcon Point Drive, stated that he does not believe the Board has enough evidence before it to make a sound decision. If the Board has not heard about the formaldehyde issue before the last several days, it should have. He would gladly answer questions on formaldehyde. Another matter the Board should be aware of is that in January 2018, National Gypsum was part of a price fixing settlement for, he thinks, $125 million. He felt that was also an issue for the Board if it was not aware of the settlement. While it doesn’t mean the plant cannot come here, it does mean the citizens and the Board need to fully vet these issues. He urged the Board to delay its decision and fully vet the issue of formaldehyde and the price fixing settlement that is public record. Representative Deb Butler, resident of South 4th Street, thanked the Board for its service, and stated she is attending as a citizen although she does serve in the North Carolina House of Representatives. Without repeating the history of what is now known to be GenX contamination, she wants to remind everyone how complex that issue has become both from a regulatory, scientific, and political point of view. She thinks everyone here has said the same thoughts as she has to our citizens, that we want to stop playing catch up on these issues and that we want to prevent these chemicals from getting into our water and our air on the front end. We have all said that it is incumbent upon the permitee to demonstrate and prove beyond a shadow of a doubt that their use of a public resource will not injure our citizens. It is not clear to her that we have clarity on that point. She would like to know what eight tons of formaldehyde will do in an already stressed environment and the information needs to be known now, not later. She further stated that she would like to address projected growth. Everyone saw Mayor Saffo’s speech on projected growth over the next thirty years. People want to be here. While it bodes well for the economy, it begs the question of incentives in the first place, particularly for a smokestack industry. She suggests it may not be the best fit for this region any longer or moving forward. As to the projected growth, she is afraid it will not come if we further tax our environment. In her legislative capacity, she receives emails daily from people who are taking a “wait and see approach” and will not build their dream home until the GenX issue is resolved. She suggests that we are dangerously close and perhaps on the precipice of killing our potential growth as it is. We don't know the tipping point. She respectfully asked the Board to consider the totality of the circumstances as they are presented, pause in making a decision, and do the research so it can be understood exactly what we're getting ourselves into. Chairman White asked Representative Butler if she understood this Board is not a permitting authority for this and that this is a financial question. Representative Butler responded that she did understand. Chairman White stated whether or not the Board approves the request, the company has permits and it can apply for the modification with or without anything the Board does today. The questions posed by her and others are properly, in his view, addressed to the NCDEQ Secretary as to whether the modification imposes a health and safety risk at the levels allowed by the modification. The questions are not proper within this jurisdiction and certainly, the Board is not equipped to answer those questions. He asked if she had posed the questions yet to the authorities in Raleigh. Representative Butler stated that copies of her comments are before them but not before today because of just learning of this yesterday. She stated that as Chairman White is a lawyer, he knows that any time facts and circumstances emerge you have the authority to rethink it and reexamine it. A strong message can be sent as a community about seismic testing, off shore drilling, and we can espouse our opinions on what is going to be a good fit for our community. Chairman White and the Board have the unfettered authority to send that message about how it approaches this and people look to them for leadership, guidance, and wisdom. The choices the Commissioners make will dictate whether or not this company chooses this location. Leslie Cohen, resident of Peachtree Avenue, stated she echoes a lot of the concerns expressed today and understands the Board does not have purview over revoking the permit. However, there is no reason that the Board cannot take the environmental concerns as a mitigating point in whether or not it wants to incentivize this project. She feels not doing so would be a grave error on the Board’s part. In speaking with a chemical engineer about the permit and its potential impacts on the community, there are several questions she would like to see answered before a decision is made to grant this incentive. Before a decision is made on this matter, she would like to know why the permit allows such a greater amount of formaldehyde emissions than was previously allowed by this company; what dispersion studies have been done and what are the results on the communities that will be impacted by this operation; and how does this plan fit in the comprehensive growth plan. She urged the Board to consider all these questions and not just the economic impact. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 37 Chairman White thanked the speakers for their comments, closed the Public Hearing, opened the floor to Board discussion, and asked for direction from the Board. In response to Board questions, Mr. Satterfield stated that James Phipps, Corporate Director of Environmental Affairs for National Gypsum, was present and could address questions about the formaldehyde emissions. Mr. Phipps stated that the existing permit was renewed in 2016 and expires in 2024. With regard to formaldehyde, the company is limited to 8.77 tons per year, which makes the company a minor source under the Clean Air Act. In 2007-2008, the company conducted stack tests and developed the modification to include this condition into the permit. As part of the analysis, North Carolina via NCDEQ conducted air dispersion modeling to do an air toxic analysis and determination and determined that the risks and emissions would meet the qualifications. Regarding the proposed restart, National Gypsum would not be increasing formaldehyde emissions above the limit of 8.77 tons per year. The condition covers the company’s three main families of materials. The Wilmington site was one of the first sites that the company tested with regard to formaldehyde. Since that time the technology in relation to materials, particularly the mat material, has improved as far as reductions of formaldehyde. He would expect that the emissions would reduce for certain products. Also, all combustion units are currently set to be dual fired units with natural gas and no. 2 fuel oil. If this project moves forward, the company will eliminate the no. 2 fuel oil option and go straight natural gas. This will reduce emissions and particulates, nitrogen oxides (NOx), sulfur dioxide (SO2), and greenhouse gases. The company will also look to install equipment to increase recycling capability for osphate board so it can be brought back into the system instead of potentially going to beneficial use for agriculture gypsum or the landfill. Mr. Phipps further stated that National Gypsum is not looking to increase emissions of formaldehyde, that is going to be kept as is. Overall, on an annual basis, the company will actually have lower emissions than what it had when the facility closed in 2008. In response to Board questions regarding the request for a permit modification to increase emissions, Mr. Phipps stated the modifications are for equipment, to update to new equipment. There will be a bag house for particulate control and new stacks, so that had to be updated, but the company is not looking to increase emissions. Again, if the company moves forward, it would eliminate the no. 2 fuel oil tank and go to straight natural gas which overall, from a potential standpoint, will lower emissions. The existing cap of 8.77 tons will remain the same for formaldehyde. He assumes the emission statement referred to in Board questions covers the 2008 year when the facility shut down, so it would not be a full year. Additionally, the company is required under its permit to report quarterly to the state the number of hours of operation of board production and the twelve month rolling total of formaldehyde emissions so it will be available for public record. In regards to the formaldehyde numbers seen in the 2005 report, Mr. Phipps stated he expects that would cover before the company had its water resistant board, its two families of materials, that led to the permit modification for the 8.77 tons per year cap. In response to Board questions, Mr. Phipps confirmed that if this project moves forward, the air emissions of formaldehyde will be included up to 8.77 tons. He confirmed that as far as potentials, it is potentially an increase from 59 pounds to slightly more than 16,500 pounds of formaldehyde through air emissions connected to this facility. The modification in 2007-2008 was for the water resistant board, which established the 8.77 tons per year and the company would maintain that. Also the technology with regard to the materials, he expects the pounds per hour to actually go down from the operation. A brief discussion was held about where the formaldehyde emissions level would place the County in the state rankings. Mr. Phipps stated that he would have to look at the data for other sites to be able to determine if at 16,500 pounds it would place the County first in the state for emissions. As part of the permit modification in 2007- 2008, the emissions went through a technical analysis and air dispersion modeling which looks at things such as local receptors and fence line concentrations as part of the air permit. It is a minor source under the federal standards. One would do a case by case analysis with regard to the air toxics and the dispersion model analysis. In response to Board questions on the health impacts of formaldehyde, Mr. Phipps stated that it is a potential carcinogen, which is why it is listed as a hazardous air pollutant under the Clean Air Act. Under the federal statutes, sources that are less than ten tons per year potential, for a facility running nonstop 24 hours per day, 365 days per year, it would be considered a minor source. It’s also listed under the North Carolina air toxic program, which is why it goes through its analysis when looking at permit modifications. The goal is to stay under ten tons. Under the Clean Air Act, going over ten tons would perhaps mean being classified as a major source. Regarding the formaldehyde increase from 2008, Mr. Phipps stated that the rationale behind it is for the water resistant board and also a fiberglass mat board, which is the purple board seen in construction. This is the company’s product and what is being discussed. It does emit formaldehyde from the kiln and it's a different blend as far as production. This is why the permit modification was to produce sufficient amounts of the water resistant board while maintaining the company’s minor status and meeting North Carolina's requirements. In response to Board questions about capturing the formaldehyde, Mr. Phipps stated the options are very limited. The only thing that could be done is some kind of additional combustion technology on the back end, but then there’s additional combustion emissions that would have to be dealt with. He reiterated that National Gypsum is wanting to maintain what it had since it had gone through the appropriate reviews and analyses before the plant was shut down. The company does not intend to do any additional modification to that. There are currently no plans for modifications on the back end for the upgraded facility. Regarding the reduction plan of the pounds per hour and the current permit for the mat product allowing 6.784 pounds per hour, Mr. Phipps stated that this would be done through improved technology. The mat technology has improved over the last ten years. The binder technology that keeps the fiberglass with the mat has improved NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 38 enough that the formaldehyde emissions have been reduced. The upgraded mat would be used immediately at this facility. Historically, based on what the company has seen it expects to see a 30% to 50% reduction and is as close a range as Mr. Phipps can estimate. It will depend on the facility and several other variables. In response to Board questions about the breakdown of formaldehyde, Mr. Phipps stated that the company’s analysis, consistent with the state's, is to do the dispersion modeling using met data: the contours of the location, the locations of populations, fence line, and conduct modeling based on the maximum amount of emissions that would be produced, and from there it can be determined what the potential concentrations are. Again, when this was run in 2008 that was the result that led to the permit modification and the company has no plans on changing that from an annual standpoint. Moving forward in reference to this technology as far as the mat product, he would expect that there would be a consideration to use stack testing to demonstrate the lower numbers. This would potentially be after the facility starts up. Formaldehyde is soluble in water and does breakdown. In response to Board questions, Mr. Phipps stated that he could not provide an answer to whether or not the company would return if an incentive was not given. He reiterated that the permit was renewed in 2016 and will come up for renewal in 2024. In response to Board questions regarding the dispersion modeling, Mr. Phipps stated that he does not have copies of the models and would have to go to NCDEQ to obtain them. He will be attending a meeting to discuss this permit and the other proposed changes mentioned earlier and can certainly look at the models again. He confirmed that part of the dispersion models would include information about the areas that would be affected, how far it goes, and at what concentrations. He can ask NCDEQ to look at how far out the dispersion goes beyond the boundaries of the facility itself. Chairman White stated that one of the speakers in his comments used the word “minority” to infer the majority had information and had not shared that with others. He asked Commissioner Barfield and Commissioner Zapple if either of them had any evidence that this is the case and if they felt in any way they didn't have the same information as anyone else on this panel. Commissioner Zapple responded that he did not interpret the question that way and he received the information yesterday for the first time, same time as everyone else. He interpreted the comment that the information had not been widely disseminated before today’s meeting where the Board is expected to make a decision. Chairman White further stated that it inferred to him that the minority somehow did not have the information, that the majority did. He wanted to clear the record for the public that he had no more information than anybody else. If he had, he thinks people know his record well enough to know it would have been shared immediately. He then requested County Manager Coudriet to explain the public notice requirements and how it was followed in this matter. County Manager Coudriet stated that the public notice was submitted on the Wednesday before it ran on Friday a week ago. He does not have the specific dates, but there was more than 10 days’ notice given of a public hearing that stated the specifics of what the question before the Board is, to Chairman White’s point made earlier about incentives. It addressed specifically the time, the place, and what the value of the investment is and what the requested incentive payments would be over the course of five years. The County has more than met the obligation of public notice and public hearing requirements as it relates to this particular incentive. Chairman White thanked County Manager Coudriet for his comments and stated that there was a request to allow a brief rebuttal comment to comments made by Mr. Phipps. He will suspend the public hearing rules to allow Mr. Peterson up to three minutes to make rebuttal comments. In rebuttal, Mr. Peterson stated that after reading over the application, not only is the formaldehyde a question but there is also a question about the 200-gallon fuel tank on site as mentioned by Mr. Phipps. The permit stated there is 100 gallons of SO2 sulfur-based fuel in the fuel tank. The direction is to go to an ultralow sulfur no. 2 fuel and the difference between the fuel in the tank presently is 287 parts per million and they would like it to come down to 15 parts per million, which is another drop. The fact that there is fuel in the system now that will be mixed with new fuel should be a question to ask if there is an environmental concern in terms of any emissions during the production process. Regarding whether or not National Gypsum could open regardless of the Board’s decision, County Manager Coudriet stated that rests within the jurisdictional boundary in the zoning rules of the City of Wilmington (City), not New Hanover County. The fact that they were operating and closed and it had never been suggested along the way that they were operating under a special use permit at the time, unless the City has modified its rules along the way, he’s not aware that it needs to go through new approvals for operations with the City. That's a question better answered by City staff. Commissioner Barfield asked County Manager Coudriet if it was possible to do a dual track to allow continued discussion about the incentive and at the same time as we put certain criteria in for other companies to employ “x” number of people to meet a certain benchmark before anything is expended from the County, almost like a looksee to see exactly what could happen. This would allow for more information to be gathered and allow for a better informed decision and determination. He would not want to put a stop on anything, but at the same time allow the opportunity to explore what’s there so the Board can make an informed decision. County Manager Coudriet responded that the Board is free to consider and address whatever it thinks is important to ultimately sign an agreement with the company. Commissioner Zapple stated that he will be hard-pressed to make a decision based on the evidence or the information that has been presented during the meeting. There's a number of troubling issues and he feels that he needs NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 39 more time. He would like the matter to be tabled. The jobs aspect of this is terrific for the community. However, without any dispersion modeling for the Board to see and given the fact that formaldehyde is a known human carcinogen, and seeing that the permit is going up to 8.77 tons as opposed to pounds, there are a number of questions unanswered as to what effect this is going to bring to the local community, as well as communities beyond. He reiterated that he does not have enough information at this point to make an informed decision. Motion: Commissioner Zapple MOVED to table the consideration of a resolution to extend an economic development incentive to New NGC, Inc. d/b/a National Gypsum Company until the Board can receive more information to be able to make an informed decision. Chairman White stated that there is a motion on the floor to table this matter. Chairman White stated that when the County is asked to look at these incentive packages, a lot of times they are not able to peer into what companies are asking to do because of non-disclosure agreements, legal documents, and confidentiality rules that are not able to be changed. When WBD brings forward something like this it's not uncommon to focus, rightly, on the financial aspects of the relocation decision, what is the return on investment, average job wage, and equipment enhancement, etc. Questions are asked about that because the County doesn’t want to give taxpayer money unless there's a clear and unambiguous conclusion that it's for a return on investment that the taxpayers are going to make. By giving something if that company comes here, then they are going to grow, their wages are going to grow, and they are going to have a positive economic impact on the community and that analysis is the beginning point for these types of decisions. This request has morphed into a scientific question today for known reasons. The community still suffers from the Titan debacle and it has been compounded by the GenX experience beginning June 8th of last summer. Even though this is not a scientific panel, Chairman White stated the Board is not equipped or educated to decide whether or not formaldehyde disperses properly and is harmful or not. The Board certainly doesn’t want to do anything that would incentivize a company to come here and hurt the citizens. Scientists and regulators tell us that information. Chairman White further stated that the focus is typically on the financial aspects of these things. The Board doesn’t normally know or have any reason to know about things outside of its purview. Air and water quality permitting is up the food chain in government. With that as a precedent the Board normally follows, it would have had no way of thinking about this piece. Chairman White stated he does not feel blindsided, but he also did not know that this was an issue of some concern to people and suggested that in the future the Board may need to be a little more aware of the issues on the margins over which the Board does not have jurisdiction. He did not know formaldehyde was put in wall board. However, if it's something that this Board needs more information on before it can decide whether or not to incentivize, then he would support a motion to table. He concluded his comments stating that he does support the project for all the reasons that have been discussed. It might be that the company chooses to go somewhere else, and he hopes that this is not perceived that way. It's not within the Board’s control, and it shouldn't be, to censor or manage what information might be relevant to the people coming before it. He knows three of the six speakers tonight are candidates for public office, but that doesn’t mean the concerns aren’t legitimate and it also doesn’t mean that they are. Dispersion models and more information could be obtained and the Board could feel perfectly comfortable moving forward. He also wants to see what the City says during its meeting tomorrow. Vice-Chairman Watkins acknowledged speaking with Commissioner Zapple on Sunday about this issue. He asked Mr. Phipps if there was any other way to increase the filtration to remove more of the emissions. Mr. Phipps responded that it’s not a question of something where a filter is used. It is not in the board per se, it's generated in the kiln as part of the process from the stack. Due to the large air flow from the kiln, water scrubbing wouldn't be a possibility. A filter, such as a carbon filter, would not be an option because of the air quality, as formaldehyde is a very small molecule. This would be a form of combustion technology, some kind of oxidizer in order to treat that very high air flow. Mr. Phipps further stated that in regards to the oil in the tank, the tank will be removed and the oil would be sold. It will not go through the process. The provision came in 2011 when the sulfur dioxide levels standards were changed, so that would not be an issue. Commissioner Kusek stated that for a number of years before being elected she watched this community get led around by a handful of people who always are opposed to everything. She is not opposed to everything. She thinks it's important to try to stay focused on our knitting. She is not opposed to having more studies. When the gentleman talked about the minority that wasn't informed about this issue, she hadn't heard the word formaldehyde until this morning and doesn’t know about the rest of the Commissioners. She stated while she is not opposed to taking a step back, she is not in support of making this turn into a political football for the people who are running for office. She also doesn’t think that's fair to the community. Commissioner Barfield stated that at some point the Board will need to do its due diligence. The questions he has are how does the Board do that, who does it, and on what timetable and timeline is that done. Again, his thought is to do a dual track to give the option to pull back if this doesn't look favorable for the County, but at the same time keep moving forward to figure out whether it is something that would be beneficial for the County. He wants to know if that is a possibility and just as the Board can put conditions on special use permits and incentives given to companies, can a condition be included that as we find out more information from NCDEQ or the Environmental Protection Agency (EPA) that this is not a good fit for the community, the Board can rescind something that may have been offered. County Manager Coudriet stated that in his opinion, administratively, the answer is yes, the Board could offer an incentive and then condition upon it some point along the way prior to execution. The expectation and the standard would be that the County would not enter into an agreement or it would report to the Board some number of days in NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 40 advance of the agreement being ready for execution and share any new information that has been learned or discovered through this due diligence period. In response to Board questions, County Manager Coudriet stated that based on experience with prior incentive agreements, it takes at least thirty days for the agreements to be executed. The agreements are negotiated out between the legal counsels and in this case there would be three counsels, the City, the County, and the company and the respective staffs. Commissioner Barfield reiterated that when he works with real estate clients, an offer is made to a client and there is a clearly defined due diligence period. There is then an opportunity for due diligence and if the decision is made to decline the purchase, the earnest money is returned. Also someone else may come in and decide to make an offer on the property and you are pretty much out of the conversation. Again, he is just looking for a win-win. In learning more, the Board can make a better decision on what it needs to do and what it should not do, but it’s not closing the door without having enough information to say the door needs to be closed. Commissioner Zapple stated that he thinks in the Board’s scope this public hearing is exactly the due diligence being discussed. He reiterated that there is not enough information presented to raise his comfort level as to what the effects will be of this dramatic increase in formaldehyde emissions. He understands exactly what Commissioner Barfield is saying and supports his thinking on it, but this public hearing is about getting that information and the information has not been presented. Chairman White stated that there is a motion on the table and as he stated earlier, he seconds the motion. Motion : Commissioner Zapple MOVED, SECONDED by Chairman White, to table the consideration of a resolution to extend an economic development incentive to New NGC, Inc. d/b/a National Gypsum Company until the Board can receive more information to be able to make an informed decision. Chairman White asked for direction from the Board. Commissioner Kusek asked if a date could be included in the motion so the matter does not get extended indefinitely. Chairman White asked if Commissioner Zapple would allow a substitute motion for a thirty-day period where the Board will revisit the matter thirty days from now. He realizes this is inviting a lot of information to be given to the Board on science and formaldehyde that he is not sure the Board is equipped to filter through. Chairman White stated that there is a need to have the questions out there as to exactly what it is the Board needs to know such as the dispersion modeling and any other question. This way if the Board is going to reconsider this in thirty days, there are not new questions brought up at that time. Commissioner Zapple agreed and stated that there is a need to know the health effects of formaldehyde and at what levels. Commissioner Barfield stated that he thinks it would be helpful to have someone from NCDEQ present when this matter is brought back to the Board. County Manager Coudriet stated that staff will make the request. In response to Board questions, Mr. Phipps reiterated that the permit was modified in 2007-2008 and renewed in 2016. It was amended before the facility shut down and has the authority to issue 8.77 tons of formaldehyde under the prior operation. He would have to check with the state with their analysis conducted about obtaining the results within the thirty days. County Manager Coudriet stated that for the benefit of the community to understand the due diligence this Board has done to this point throughout the process, the question was posed are there environmental concerns; are there environmental permits that need to be secured? The response along the way was, no, the permits are in place. This is why he felt it important for Mr. Phipps to address that the permit predates any ask of this Board and predates 2016. The Board posed the right questions along the way about the status of existing permits and are new permits that deal with air quality or water quality issues necessary to secure? If so, what are they? The response legitimately was, no, that there are permits that have been in place since the facility was here originally when it closed down and that renewal of those permits happened along the way. He would not want anyone who is viewing this or present at the meeting to think that the Board did not pose specific questions about the status of permits, particularly those permits that need to be secured. In response to additional Board questions, Mr. Phipps stated that National Gypsum has three products in the form of exterior board, regular interior board, and water resistant board. In early 2004, the company was not producing the exterior board. For a frame of reference, with regard to impacts and analyses an example is the Mount Holly, NC facility. It is a high speed line that runs about three times faster than the Wilmington line would run. The emissions from the exterior board ran about 15,000 to 16,000 pounds per hour. From the modeling standpoint, this was compliant and it met all the risk assessments and there is a school across the road from the plant. This is not something that is unusual with regard to the industry. National Gypsum wants to make sure it has everything in order and will be happy to work with the County to meet it. Chairman White stated that the reason why the Board is going through this today is because this community who the Board represents, has been through two specific situations over the last six years where no one ever suggested that even those companies were, at the time it was thought, violating federal or state law. The Board has since learned different at least as it relates to one of them. It's also exposed in unequivocal terms policy problems at the federal and state levels with how air and water quality issues are permitted. No one is suggesting that National Gypsum is not trying to abide within the law. It sounds as if it certainly does and would be as it relates to those permit issues on the NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 41 environment. However, this community has been traumatized by its education over the last eight months on legal issues that companies claim they have done to the river. They claim they have done nothing illegal, but we are not sure that they have. We think they did, but they disagree. It's certainly not something personal to Mr. Phipps or his company, but these experiences, as all experiences, inform the future and that's why the Board is going through this. Chairman White asked Commissioner Zapple to allow a substitute motion to revisit this matter within 30 days and ask staff from NCDEQ and County staff to answer questions related to dispersion of the formaldehyde and health effects of formaldehyde. Commissioner Zapple stated that the only item he would add is if the Board cannot have that information within thirty days that the Board have the ability to extend the period until the information is available. Chairman White stated the item could be put on the agenda and the Board can decide at that time what to do. Substitute Motion: Commissioner Kusek MOVED, SECONDED by Vice-Chairman Watkins to table the consideration of a resolution to extend an economic development incentive to New NGC, Inc. d/b/a National Gypsum Company for a period of thirty days and ask staff from NCDEQ and the County staff to answer questions related to dispersion of the formaldehyde and health effects of formaldehyde. If the information is not available within thirty days, the Board has the ability to extend the period until the information is available. Upon vote, the MOTION CARRIED UNANIMOUSLY. BREAK: Chairman White called a break from 11:01 a.m. to 11:10 a.m. CONSIDERATION AND APPROVAL OF AN INTERLOCAL AGREEMENT WITH TRILLIUM HEALTH RESOURCES FOR THE CONSTRUCTION AND OPERATION OF A HEALING PLACE FACILITY Chief Financial Officer Lisa Wurtzbacher presented the request for the Board to consider approving the County to enter into an interlocal agreement with Trillium Health Resources (Trillium) for the construction and operation of a Healing Place facility as follows:  Background:  In 2016, Board of County Commissioners committed to support a local Healing Place facility  Trillium solicited and selected an architect and construction manager at risk  Design began, but ended in the schematic design phase due to policy changes in state funding to local management entities/managed care organizations (LMEs/MCOs)  County and Trillium partnering to continue this project for a 100 bed facility  Interlocal Agreement:  Trillium will maintain design and construction manager at risk contract and will manage the project with assistance from County  County will issue debt to pay for the design and construction of Healing Place facility after property transfer from Trillium to County if approved by the Board of County Commissioners  County appropriation to Trillium will be used for Healing Place operational costs and debt service on the facility construction  501(c)(3) to be established by Trillium to operate and fundraise for the facility  Funding Model:  Model allows for current appropriations to cover debt service and a portion of operational costs  Interlocal agreement specifies that County not responsible for operating shortfalls of Healing Place facility Estimated Year OneEstimated Ongoing Debt Service $ 972,543 $ 972,543 Operational Costs 1,277,500 1,277,500 One-time Expense 919,577 0 Total Costs $ 3,169,620 $ 2,250,043 Available Funding $ 1,570,000 $ 1,570,000  Timeline:  Interlocal Agreement Approval by Board of Commissioners: February 19, 2018  Interlocal Agreement Approval by Trillium Board: February 22, 2018  Board Approval of Guaranteed Max Price: October 2018  Design Completed: January 2019  Construction Completion: March 2020  Requested Actions:  Approve the interlocal agreement  Approve the capital project ordinance and associated budget:  $300,000 to fund design through the guaranteed maximum price is determined In response to Board questions about the interlocal agreement, Ms. Wurtzbacher stated Trillium is aware of the funding gap and has said it will find a way to fill it. Trillium will also be the lead in the project. However, similar to other projects that the County partners with, the County will be engaged in the conversation to make sure that it’s needs are met and everything is on track. The County’s project manager will assist when needed as well and would NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 42 not be on the construction site on a weekly basis. There would be a need to determine how often the project manager would need to be onsite. The construction manager at risk and others involved in the project would be on site every day. In response to Board questions regarding the design and construction schedule, Ms. Wurtzbacher stated that the architect is still in the schematic design phase which has to be completed. Once that is completed the construction manager at risk will start working to get bids and begin the construction documents. The design completion is when the construction documents are actually ready. A brief discussion was held about the state level discussions regarding all LMEs/MCOs. Ms. Wurtzbacher stated that the agreement is with Trillium and as part of the agreement, Trillium has to setup a nonprofit so they will really be operating it. If Trillium were to go away, the hope is that another organization would come in, but the nonprofit can still continue to operate. County Manager Coudriet stated that there will always be some entity responsible for providing state oversite for mental health and substance use. As the Board is aware, Trillium is a successor to CoastalCare, which was a successor to Southeast Center. Should there ever be a larger scale consolidation and as the County would have to be party to establishing that successor organization, it would require that organization to continue forward under the same parameters as this interlocal agreement with Trillium. Commissioner Zapple requested that the words “and successors” be added to the agreement. Chairman White stated that as he understood from Ms. Wurtzbacher from the debt perspective that it’s owned by the County and is collateralized. This project is a good start, but there have been deficiencies seen of it not serving adolescents and women. The hope is that Congressman Rouzer will find ways to receive federal dollars and that the state will be able to help deal with this underserved population. He thanked the Commissioners, County Manager Coudriet, and Ms. Wurtzbacher for their work on this matter. He agreed that “successors” should be added to the interlocal agreement. In response to Board questions, County Manager Coudriet stated that the Board appropriates $2.15 million a year to broadly support Trillium. About $100,000 of that funding is allocated directly to support The Harbor and the balance Trillium disburses within its general budget, performs crisis intervention training (CIT) and other things in the region. It’s not necessarily earmarked in support of anything for New Hanover County or the southern part of the state. Trillium will use a portion of the $2.15 million to support the operations to provide service. There will still be funds available out of the $2.15 million, which is equivalent to $3 per person in the County, that Trillium will still be able to continue working as they are currently. They will rearrange the pool of funds within the LME/MCO, but nothing will be reduced nor will anything stop as a result of the agreement. It could be argued that services will be enhanced and improved because the Board is allowing the construction of a long-term peer-led recovery facility. If there is a reduction in service, it would be a result of the LME board or the state identifying new priorities for using state money for mental health, substance use, and disabilities in the region. Chairman White asked for direction from the Board. Motion : Vice-Chairman Watkins MOVED, SECONDED by Commissioner Zapple, to approve the interlocal agreement with Trillium Health Resources for the construction and operation of a Healing Place facility and associated capital project ordinance. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the capital project ordinance is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 4.8. FISCAL YEAR 2018 SECOND QUARTER FINANCIAL RESULTS Chief Financial Officer Lisa Wurtzbacher presented the 2018 second quarter financial results which includes financial activity from October 1, 2017 through December 31, 2017.  Second Quarter Financial Summary:  General Fund – Revenues:  Total general fund revenues at 53.9% of budget  th $122.2 million in property tax received with due date of January 5  Sales tax of $17.5 million received representing three months of distribution  Second quarter comparisons:  2018: Ad Valorem was $122.2 million; Other was $39 million  2017: Ad Valorem was $118.6 million; Other was $39.9 million  2016: Ad Valorem was $121 million; Other was $40.6 million Ms. Wurtzbacher stated that in regards to ad valorem revenues, it has been seen on a month after month basis revenues collected are ahead when compared with the same time the prior year, even with a tax decrease. In working with the Tax Department and reviewing the numbers and the history, staff feels the County could be anywhere from $1.5 million to $2.5 million over budget on ad valorem revenue and the number is only for the General Fund. Similar trends are being seen in the Debt Service Fund and the Fire Service Fund. Sales tax is also ahead of where it was expected to be. Staff estimated 5.23 percent growth rate over what was actually received last year and it’s now over seven percent. It is still too early to provide a number of where the County could potentially be and as of this report there was only three months of sales tax. In response to Board questions, Ms. Wurtzbacher stated that the quarter-cent sales tax is bringing in more than $8 million per year. She would estimate it to be over $9 million and it continues to climb. In regards to where the projected $1.5 million will go if over budget, Ms. Wurtzbacher stated it will roll to fund balance. If we are over the 21%, the funds will be allocated toward capital and capital improvement projects. The plan is to bring forward a NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, FEBRUARY 19, 2018 PAGE 43 budget amendment later this year with the increase so potentially it could reduce the appropriated fund balance or if there are other expenditure needs, it could go towards those needs. There have been no discussions as of yet to identify a specific capital project for the $1.5 million to $2.5 million. County Manager Coudriet stated that the referenced budget amendment will be presented to the Board during th the March 12 meeting. Staff is trying to be very timely in reporting the information to the Board when there is a high degree of confidence of an over collection or under collection of revenue. In his opinion, the budget amendment will address both the over collection of property tax and the estimated over collection of sales tax. Chairman White thanked Ms. Wurtzbacher for the presenting the information. COMMITTEE APPOINTMENTS Appointment to the Wilmington/New Hanover Port, Waterway and Beach Commission Chairman White reported that one vacancy exists on the Wilmington/New Hanover Port, Waterway and Beach Commission in the Shipping category with two applications available for consideration. Chairman White nominated Robert P. Divoky Commissioner Zapple nominated Donald E. Harris With no other nominations, Chairman White called for a vote on the nominations in order of being received. Vote Results: The Board voted in the majority to appoint Robert P. Divoky to the Wilmington/New Hanover Port, Waterway and Beach Commission to serve a three-year term with the term to expire February 28, 2021. Chairman White, Vice-Chairman Watkins, Commissioner Barfield, and Commissioner Kusek voted in favor. PUBLIC COMMENT ON NON-AGENDA ITEMS Chairman White announced that no one signed up to speak under public comment. ADDITIONAL AGENDA ITEMS OF BUSINESS Commissioner Barfield stated that District Attorney Ben David has spearheaded a celebration for April 4th to bring awareness to it being 50 years from the date when Dr. Martin Luther King, Jr. was assassinated in Memphis, TN. District Attorney David pulled together several stakeholders to have a conversation and will be requesting a resolution recognizing the event. The group is hoping to bring the request forward in March and is working with County and City of Wilmington staff on the resolution. He commended District Attorney David for his efforts. ADJOURNMENT There being no further business, Chairman White adjourned the meeting at 11:46 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.