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2019-05-06 Regular MeetingNEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 6, 2019 ASSEMBLY BOOK 34 PAGE 275 The New Hanover County Board of Commissioners met in Regular Session on Monday, May 6, 2019, at 4:00 p.m. in the Andre' Mallette Training Rooms at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chairman Jonathan Barfield, Jr.; Vice - Chairwoman Julia Olson - Boseman; Commissioner Patricia Kusek; Commissioner Woody White; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney Wanda M. Copley; and Clerk to the Board Kymberleigh G. Crowell. MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE Chairman Barfield led the audience in a moment of silence and in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chairman Barfield requested a motion to approve the Consent Agenda as presented. Motion: Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, 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 Regular Meeting of April 15, 2019. Adoption of Lupus Awareness Month Proclamation — Governing Body The Commissioners adopted a proclamation recognizing May 2019 as Lupus Awareness Month. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.1. Ratification of Wilmington Treatment Center Day Proclamation — Governing Body The Commissioners ratified a proclamation for Wilmington Treatment Center Day as adopted by general consensus on April 23, 2019. Chairman Barfield presented the proclamation at the grand opening of the Wilmington Treatment Center on April 26, 2019. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.2. Approval of the First Reading of a Solid Waste Franchise for Waste Industries USA, LLC — County Attorney The Commissioners approved the first reading of a solid waste franchise to be granted to Waste Industries USA, LLC. Pursuant to Section 44.55, the applicant has provided information about the business organization, equipment, personnel and fiscal responsibility. The Environmental Management Director and the Chief Financial Officer have no objections to the franchise request. The decision to approve the current solid waste franchise agreement was considered against the implications of House Bill 56 and its impact on the County's ability to control the flow of solid waste. Staff believes that private solid waste collection companies will ultimately make post -2020 final disposal decisions based on two factors: price and convenience /location. The New Hanover County landfill is competitive in both areas and will continue to seek methods to control costs while offering cutting -edge services to the public. The initial franchise period will run for seven years. A second reading is required. A copy of the franchise agreement is available for review in the Legal Department. Adoption of Hurricane Preparedness Week Proclamation — Communications and Outreach and Emergency Management The Commissioners adopted a proclamation recognizing May 5 -14, 2019 as Hurricane Preparedness Week. The Atlantic Hurricane Season runs from June 1 to November 30 with the peak season from mid - August to late October. Citizens are encouraged to visit ReadyNC.org and EmergencyNHC.com for directions to complete hurricane preparedness plans. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.3. Adoption of a Resolution to Donate Artwork by a Local Artist to the Cameron Art Museum — Library The Commissioners adopted a resolution to donate artwork by local artist Fritzi Huber to the Cameron Art Museum. The Friends of the Library commissioned a textile art installation to commemorate the library's centennial in 2006. The art has been on display at the Myrtle Grove Library which is being vacated with the move to the Pine Valley Library. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.4. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 276 Approval of March 2019 Tax Collection Report — 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 2019. Copies of the tax collection reports are hereby incorporated as part of the minutes and are contained in Exhibit Book XLI, Page 28.5. Approval of Board of Education Budget Amendment #7 — Finance The Commissioners approved the Board of Education Budget Amendment #7 as follows: On April 2, 2019, the Board of Education approved budget amendment #7, which includes the following in the state, general, federal, capital outlay, and other restricted revenue funds: • State Fund: to record State Revisions 35 -39 • General Fund: to budget insurance settlement for property damage to BOE and program transfers including transfer for clerical salaries • Capital Outlay Fund: To record budget for Lottery Allotment for Alderman HVAC Replacement, Phase I and Lighting Upgrades at Various Sites • Other Restricted Revenue Fund: Budget Lamb Foundation of NC Grant, transfer from unbudgeted Medicaid Administrative Outreach Reserve to Pupil Transportation and record miscellaneous program transfers REGULAR ITEMS OF BUSINESS ADOPTION OF NAACP CENTENNIAL CELEBRATION RESOLUTION Chairman Barfield reported that the New Hanover County Branch #5424 of the National Association for the Advancement of Colored People (NAACP) has requested the Board adopt a resolution recognizing the 1001" anniversary of the New Hanover County NAACP in New Hanover County. Vice - Chairwoman Olson - Boseman read the proclamation into the record. Chairman Barfield asked if there was a motion to adopt the resolution as presented. Motion: Commissioner Zapple MOVED, SECONDED by Vice - Chairwoman Olson - Boseman, to adopt the resolution recognizing the 1001" anniversary of the New Hanover County NAACP. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Barfield invited New Hanover County NAACP Branch President Deborah Maxwell to make remarks. Ms. Maxwell thanked the Board for the proclamation. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.6. ADOPTION OF ELDER ABUSE PREVENTION AWARENESS PROCLAMATION Chairman Barfield reported that the Elder Abuse Prevention Network has requested the Board adopt a proclamation to recognize May 12, 2019 thru June 16, 2019 as Elder Abuse Prevention Awareness Month in New Hanover County. Commissioner Kusek read the proclamation into the record. Chairman Barfield asked if there was a motion to adopt the proclamation as presented. Motion: Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation recognizing May 12, 2019 thru June 16, 2019 as Elder Abuse Prevention Awareness Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Barfield invited Marianna Stacy, a member of the Elder Abuse Prevention Network, to make remarks. Ms. Stacy thanked the Board for the proclamation and it support of the Elder Abuse Prevention Network. The Cape Fear Elder Abuse Prevention Network, developed in 2006, is a grassroots educational outreach initiative. It includes human services and community agencies as well as volunteers, from Brunswick, Columbus, New Hanover, and Pender Counties. The group works to strengthen and expand existing efforts in elder abuse education and prevention. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.7. ADOPTION OF NATIONAL PRESERVATION MONTH PROCLAMATION Chairman Barfield reported that the Historic Wilmington Foundation has requested the Board adopt a proclamation to recognize May 2019 as National Preservation Month in New Hanover County. Commissioner Zapple read the proclamation into the record. Chairman Barfield asked if there was a motion to adopt the proclamation as presented. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 277 Motion: Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, to adopt the proclamation recognizing May 2019 as National Preservation Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Barfield invited Historic Wilmington Foundation Executive Director Beth Rutledge to make remarks. Ms. Rutledge thanked the Board for the proclamation and recognizing the importance of historic buildings in Wilmington. There are eight historic districts in Wilmington. National Preservation Month was started in the 1970s to bring about awareness to realize that heritage structures are not going to exist on their own. The Historic Wilmington Foundation was started in 1966. Historic preservation helps build strong communities, towns, and economies. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.8. PRESENTATION ON THE NEW HANOVER REGIONAL MEDICAL CENTER WILMINGTON MARATHON MADNESS Chairman Barfield invited Director of New Hanover Regional Medical Center (NHRMC) Wilmington Marathon Madness Tom Clifford to present information on the upcoming March 21" race in 2020. Mr. Clifford expressed appreciation to the Board for its many years of support for this race and stated this year was the tenth annual race. The County, City of Wilmington, and the Town of Wrightsville Beach support the event. Over the past ten years, there have been over 30,000 participants. The average registration per year is approximately 3,200. There have been 14,000 participants from out of state and 12,000 from other cities in the state. Since the inception of the race the organization has donated $324,000, including $10,000 this last year to Hurricane Florence relief. The total that the marathon has paid to vendors, which 90% are from Wilmington, was close to $3 million over ten years. Mr. Clifford further stated that the new vision of the marathon is to span the County. The race has typically stayed on the eastern side of New Hanover County. With new construction and a new 10 -year vision of the course, the decision was made to change the name from the Wrightsville Beach Marathon to the New Hanover Regional Medical Center Wilmington Marathon and start the race in Wrightsville Beach and end in downtown Wilmington, making it more of a destination event. The goal of the race is to get over 5,000 participants. The new route has been tentatively approved by the City of Wilmington Parks and Recreation Department and is still under review by the NC Department of Transportation (NCDOT). This one event will bring in approximately 4,000 out -of- towners per year in a shoulder season and the organization's charitable contributions could possibly increase by $30,000 more per year. This will take some time to do. The goal is to bring people here during a shoulder season and educate the local residents how good athletic events are as they get people outside. Chairman Barfield asked how can men like him who are walkers rather than runners be involved in this event. Mr. Clifford responded that the event includes one -mile and 5k races the night before for the people that want to walk and it has definitely become a family event. Chairman Barfield expressed appreciation to Mr. Clifford and his team for their efforts with the race and for the charitable contributions made to the various community organizations over the past ten years. Commissioner White stated he wanted to remind everyone that Mr. Clifford and his wife are raising their family here, employ people here, pay taxes, and run a small business. They partner with other governmental entities and local businesses. The multiplier effect of what they do day to day is remarkable and reflects the value of all the small businesses that make our economy thrive. He would also like to say to balance out the negative press this community consistently gets every hurricane season about not being a destination for travel and tourism. These types of activities are vital and it is so important for governments to support them, encourage them, and help them as much as possible so that people can continue to come here and see what a beautiful place this is. He thanked Mr. Clifford for his work and for representing this community so well. ADOPTION OF A RESOLUTION IN SUPPORT OF THE CURRENT ABC CONTROL SYSTEM FOR THE SALE OF LIQUOR Chairman Barfield reported that the New Hanover County Alcohol Beverage Control (ABC) Board has requested the Board adopt a resolution to oppose House Bill 971, An Act to Privatize the Sale of Spirituous Liquor. He invited New Hanover County ABC CEO Marnina Queen and New Hanover County ABC Board Chair Zeke Partin to present information regarding the request. Ms. Queen expressed appreciation for the opportunity to speak on behalf of the New Hanover County ABC Board regarding House Bill 971 and the request for the County Commissioners to adopt a resolution in support of the current ABC control system for the sale of liquor. One of the main concerns the New Hanover County ABC Board has about House Bill 971, Modern Licensure Model for Alcohol Control, is regarding how it will effect this community due to the proposed changes. It could change the number of ABC stores from 80 to over 50 and the hours of sale Monday through Friday from 7:00 a.m. to 2:00 a.m. and Sunday from 10:00 a.m. to 2:00 a.m. The hours are currently from 9:00 a.m. to 9:00 p.m. Monday through Saturday. Privatization will result in a market increase in the number of outlets, longer hours of sales, greater advertising, and significantly more consumption. Regarding the proposed state excise tax, the New Hanover County ABC pays back approximately 30% and last year that equated to over $9 million. With the proposed model it is unknown what that will be. The money given back by the New Hanover County ABC in the form of distributions is over $5 million. House Bill 971 states that only NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 278 25% of the excise tax would be sent back to this community. The proposed guidelines have it broken out to have four percent for treatment of alcoholism or substance abuse, 15% for research or education, and 11% for local law enforcement costs. That is a concern of the New Hanover County ABC system as the distributions to this community are for Wrightsville, Carolina, and Kure Beaches as well as the City of Wilmington and New Hanover County. Given the unique nature of liquor as well as the potential to do harm, state and local governments are in the best position to balance the access, convenience and control. A study that was released in February 2019 stated there was not a need to privatize. Rather the study recommends the system modernize and is addressed in House Bill 91. It allows modernization of the system, not to totally take it away. There is a possibility there will be Sunday sales at the New Hanover County ABC stores and there will be tastings in the stores. As a system, it is trying to modernize but still maintain control and not have too much consumption. Ms. Queen further stated that no state funds are ever spent to distribute or sell liquor. ABC boards are local, independent subdivisions of the state, and the New Hanover County group is very unique in the fact that it brings money back. One question about this proposal is without the funds coming back to this community, would property taxes increase. If people rent, that will increase as well. She does not know how the funds will be made up. The local system gives over a half million dollars to local law enforcement and it is a serious concern that money is not going to be there anymore. There will be more local big box stores and different people that are going to be selling liquor with a profit motive whereas, the current system does not. When the profit motive is removed in a controlled state, there is less consumption. It has been heard that in certain areas of South Carolina that privatized the liquor is actually cheaper and she would agree with that. They can target a market and take a loss on certain products they want to bring to people across state lines, but once you get in this community's stores, it's $2 to $5 difference. Again, that money is being brought back to this community. Ms. Queen concluded her comments asking the Board to move forward with the requested resolution to support the New Hanover County ABC and oppose House Bill 971. In response to Board questions about higher prices under privatization, Ms. Queen stated under the recent Program Evaluation Division (PED) study released in February 2019 it was stated that there would be a 15.7% increase in product price in this state under a privatization act. This can be seen in the House Bill 971 language suggesting the excise tax for a gallon of liquor under the state spirits tax will increase to $28 a gallon. Currently, the local system only pays $14.63 a gallon in excise tax. That will put this state as the second highest in the country for selling alcoholic beverages and the excise tax that is paid. The State of Washington was the most recent state to privatize. The North Carolina ABC Association, as well as the National Alcohol Beverage Control Association (NABCA), is looking at that model. The excise tax in Washington increased to $32 per gallon. The price increases not only for bars and restaurants purchasing the product, but also for consumers. New Hanover County ABC Board Chair Zeke Partin stated that South Carolina has a very low excise tax on liquor. The excise tax goes back to the South Carolina Department of Revenue and 60% of the tax goes to the education unit and 40% goes, through a formula distribution, to the counties. However, the counties can only use the funds for alcoholics and drug rehabilitation education. Nothing from the excise tax goes back to support the South Carolina counties and municipalities general funds, sheriff's departments, etc. Since the laws were enacted in 1939 in this state, North Carolina has reaped benefits from the money that comes back in through the state general fund and as well as the counties that receive the distributions. There are laws in place that dictate what the New Hanover County ABC system can give back to the county and municipalities. The New Hanover County ABC Board can also vote to give extra distributions as it did approximately five years ago. Under privatization, this would no longer occur. Also under privatization, the County Commissioners would no longer be in charge. For example, during hurricanes or disasters, the private stores are going to open up the best they can and get their employees there and start selling. Currently, the ABC Board works with the County Commissioners and staff on when to reopen the stores during a hurricane or disaster. Chairman Barfield thanked Ms. Queen and Ms. Partin for the discussion and asked if there was a motion to adopt the resolution as presented. Motion: Commissioner Zapple MOVED, SECONDED by Chairman Barfield, to adopt the resolution to retain North Carolina's current control system for the sale of liquor. Commissioner White stated that this community has the best -run ABC board and employees across the state. The numbers speak for that recognition and it's well- known. The citizens of this county need to know how well -run it is, how exemplary the employees have represented themselves in this community. In no way do his next comments about this resolution reflect on the New Hanover County ABC board, its leadership, or its employees. Regarding, when the law was passed in 1937, it was four years after prohibition. The country had just undergone an 11 -year period of time that was really unparalleled in our country's history. While alcohol was outlawed and illegal, nationwide alcohol consumption increased, crime increased. The anecdotes in the studies that we see conflict when we say, if we privatize and deregulate, crime and consumption increase. That's not necessarily true. History proves that to be false in many instances. It's particularly relevant today because awareness of alcohol and access to alcohol is ubiquitous. In 1968, the state entertained the brown bagging law and it was fought tooth and nail in the NC General Assembly (NCGA) and passed. He grew up in a dry county, and while he never bought alcohol as a youngster, he remembers hearing about it and understanding the difference between a dry county and a wet county. A dry county was good and religious and a wet county was bad and sinful. Those social morays and social constructs are not the case advertised today and no longer. In 1978 with liquor by the drink, the last vestige of real control that this state had left permanently. The NCGA is now considering whether or not to be one of only 13 states left in the country to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 279 control liquor. It does not control beer or wine except to the extent of very, very loose regulations. It's all in the grocery stores and sold at virtually anywhere and everywhere you can purchase food. You can purchase cigarettes anywhere at any time of day and no one will argue that consumption of cigarettes will increase or does. If you raise the price, the consumption of cigarettes goes down. Nobody gets in a car and smokes a cigarette and kills people, so they're not apples to apples comparisons. If we're talking about vices, human nature and things that people do to consume things that alter their behavior and their mind, it is that. Looking across the state of 10 million people in an internet age when these social constructs of control as that word is defined in the 1937 legislation, to him it is time to privatize. There is just no if, and, and buts about it. Using funding for law enforcement and municipalities, which is something the Bill does not address appropriately and should, that is not enough to oppose privatization and the conversation surrounding it. Privatization immediately eradicates corruption and immediately opens up competition. It is not a given, despite Washington State, that consumption increases. If we're in this for control, then let's advocate to have less liquor stores and sell less bottled liquor. Government is the last entity best posed to sell a retail product. Fed Ex proved that better than anything in relation to sending mail in the U.S. postal service. It's similar here. Commissioner White further stated that he supports, and always has, the local board and the wonderful people there. He considers people on that board his personal friends. Just as a matter of philosophy, he does do not believe that the status quo for this state is the right policy. He thinks the members of this Board could weigh in on every state issue it they wanted to. The Board could pass a resolution about everything in Washington, DC the House Democrats are doing and the Republican Senators are doing. The Board could do that on the international level and talk about climate change or Brexit if it desired to do so, but it does not have time to do that. This is a state issue and it needs to stay in Raleigh and deliberated by the legislators as represented. It does not belong in front of this Board. Chairman Barfield stated he is supportive of keeping the ABC stores locally operated by a local board. His overall concern is from a consumption standpoint and underage drinking standpoint. He is also appreciative of the resources that come back into the local community every year, whether it be funding additional Sheriff's deputies, police officers to work downtown (which is one of the highest use districts), to giving money to our local towns that truly need those resources to make their budgets work as well. Many years ago there were two organizations, Mothers Against Drunk Drivers (MADD) and Students Against Drunk Drivers (SADD), and those have gone by the wayside. At the same time, we are still seeing youngsters consuming alcohol before they should be and getting into a world of hurt and trouble. When he lived in Florida while serving in the Navy, he saw issues there as well and liquor can be bought anywhere and everywhere at any given point in time of the day. Growing up in this community, he remembers back in the '70s when liquor by drink was voted on by referendum and passed. There were so many folks elated about being able to get liquor by the drink for some reason. This was a dry county and you could not buy things before 1:00 p.m. on Sundays. It's amazing how times have changed. Again, his major concern is for the young children in this community and across the state as they face so many issues already, and underage drinking was relevant in the past and now. Commissioner Zapple stated he is in support of the resolution. He asked Ms. Queen to describe the programs utilized addressing underage drinking and checking identification (ID) at the liquor outlets. Ms. Queen stated last year the organization did a prototype of an iPad that could check any ID and tell staff if it was acceptable, fake or unacceptable to be used in this state. From that, the organization moved forward to a new point of sale system to do the same that is currently installed at each location. Within the past year, over 16,000 ID cards have been scanned to make sure liquor is not being sold to people underage or carrying a fake ID. The New Hanover County ABC personnel, of which there are 85, work together as a team and this is an initiative the team takes very seriously. This has essentially stopped the sale of liquor to people who are underage or using a fake ID. It is the same software used by the Sheriff's Department which is how her office learned about it. In response to additional questions, Ms. Queen confirmed that the New Hanover County ABC system has the lowest outlet density in the state. She could not list any benefit that happens when a person is able to buy a fifth of liquor at 2:00 a.m. under a privatized system. This is also one of the concerns she and her team have about the House Bill 971. Hearing no further comments, Chairman Barfield asked for a vote on the motion on the floor. Upon vote, the MOTION PASSED 3 to 2 with Commissioner Kusek and Commissioner White dissenting. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XLI, Page 28.9. ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF LEASE PURCHASE AGREEMENT WITH TD BANK TO FINANCE THE ACQUISITION OF VARIOUS EQUIPMENT, VEHICLES AND A PIERCE ENFORCER PUMPER Chief Financial Officer Lisa Wurtzbacher stated that the 2019 budget planned for the purchase and intent to finance various equipment, vehicles and a Pierce Enforcer Pumper. On March 25, 2019, the Finance Office solicited proposals to finance up to $1,293,825 for the purchase of equipment, $1,884,142 for the purchase of replacement vehicles, $587,507 for the purchase of a Pierce Enforcer Pumper, and $5,000 for closing costs, which total $3,770,474. TD Bank submitted the lowest total interest costs at $178,705 representing a 2.46% rate. The first principal and interest payment is due in FY 19 -20 and will be included in the recommended FY 19 -20 budget. Annual debt NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MAY 6, 2019 BOOK 34 PAGE 280 service will be $1,232,681. Ms. Wurtzbacher presented the following overview of the lease purchase agreement with TD Bank: • Installment Financing for Vehicles and Equipment: • TD Bank Proposed Terms: • 36 months for general vehicles /equipment • 59 months for Fire Services Pierce Enforcer Pumper • Semi - annual payments • 2.46% interest • Equipment used as collateral • Annual debt service: • $1,107,112 for general vehicles /equipment • $125,569 for Fire Services Pierce Enforcer Pumper • Requested Actions: • Approve the resolution: • Awarding the loan to TD Bank Finance granting security interest in the vehicles and equipment • Authorizing staff to negotiate and execute the financing contract Hearing no further discussion, Chairman Barfield asked for direction from the Board on the request. Motion: Commissioner Kusek MOVED, SECONDED by Commissioner Zapple, to adopt the resolution for the Lease Purchase Agreement with TD Bank. 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 28.10. THIRD QUARTER FINANCIAL UPDATE PRESENTATION Chief Financial Officer Lisa Wurtzbacher presented the following highlights of the third quarter of Fiscal Year 2019, which includes financial activity through March 31, 2019: • General Fund Revenues: • Total general fund revenues at 73.5% of budget • $164.6 million in property tax collected • Sales tax collected of $31.0 million • Third quarter comparisons: • 2019: Ad valorem was $164.6 million; Sales tax was $31 million; Other was $46.1 million • 2018: Ad valorem was $165.7 million; Sales tax was $35.4 million; Other was $36.7 million • 2017: Ad valorem was $165.9 million; Sales tax was $32.7 million; Other was $40.7 million • Debt Service Fund Revenues: • Total revenues at 84.7% of budget • $21.6 million in property tax collected • Sales tax collected of $7.0 million • Third quarter comparisons: • 2019: Ad valorem was $21.6 million; Sales tax was $7 million; Intergovernmental Revenue was $3.1 million • 2018: Ad valorem was $21.1 million; Sales tax was $0; Intergovernmental Revenue was $3.8 million • 2017: Ad valorem was $20.2 million; Sales tax was $0; Intergovernmental Revenue was $3.2 million • General and Debt Service Expenditures: • Expenditures represent 69.6% of budget • Hurricane expenses of $7.5 million included in the public safety function • Fire Services: • Total revenues collected represent 82.7% of budget • Property tax revenues collected at 98.4% of budget • Operating expenses low in comparison to prior year • Third quarter comparisons: • 2019: Revenues were $12.9 million; Expenses were $11 million • 2018: Revenues were $11.1 million; Expenses were $10.9 million • 2017: Revenues were $9.3 million; Expenses were $9.4 million • Environmental Management: • Charges for services are 77.6% of budget • Hurricane expenses of $17.5 million included in total expenses • Third quarter comparisons: • 2019: Revenues were $27.6 million; Expenses were $36.8 million • 2018: Revenues were $9.6 million; Expenses were $7.3 million • 2017: Revenues were $9.3 million; Expenses were $7.3 million NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 281 Due to the use of fund balance to cover hurricane expenditures, the County will be below its fund balance policy floor of 18% for fiscal year 2019. However, reimbursement requests for the Federal Emergency Management Agency (FEMA) are being developed and submitted and will restore fund balance. In response to Board questions, Ms. Wurtzbacher stated the County is expecting quite a bit of reimbursement funds from FEMA. Staff submitted $2.9 million several weeks ago and recently submitted $6.9 million (approximate). There are still a number of expenses to submit, but everything that was spent for the hurricane is being analyzed to try to get reimbursement. The total expenses were approximately $25 million. Hearing no further comments, Chairman Barfield thanked Ms. Wurtzbacher for the report. PUBLIC HEARING AND APPROVAL OF REZONING REQUEST BY MICHAEL NADEAU, ON BEHALF OF THE PROPERTY OWNER, WPE HOLDINGS, LLC, TO REZONE APPROXIMATELY 23.25 ACRES OF LAND LOCATED IN THE 9000 BLOCK OF U.S. HIGHWAY 17, FROM (CUD) B -1, CONDITIONAL USE BUSINESS DISTRICT, R -15, RESIDENTIAL DISTRICT, AND (CZD) O &I, CONDITIONAL OFFICE AND INSTITUTIONAL DISTRICT, TO B -1, BUSINESS DISTRICT (Z19 -05) Chairman Barfield opened the public hearing and requested staff to make the presentation. Senior Planner Brad Schuler presented the request by Michael Nadeau, on behalf of the property owner, WPE Holdings, LLC, to rezone approximately 23.25 acres of land located in the 9000 Block of U.S. Highway 17, from (CUD) B -1, Conditional Use Business District, R -15, Residential District, and (CZD) 0&1, Conditional Office and Institutional District, to B -1, Business District. The majority of the subject property is currently zoned (CUD) B -1, consisting of approximately 19 acres or 80 percent of the site. This zoning, originally approved in 2007, allows for the development of a medical park consisting of office, retail, and service - related uses totaling over 200,000 square feet in area. The southeastern corner of the property is approximately four acres of R -15, Residential District, and the (CZD) 0&1, Conditional Office and Institutional District is approximately half -of -an -acre located around the existing roundabout on the property. Directly northeast of the property is land zoned Conditional 0&1 which contains medical related uses including the New Hanover Regional Medical Center Emergency Room — North. The site is buffered from the Scotts Hill residential subdivision by an existing wetland area and Coastal Preparatory Academy. The Board recently approved the issuance of revenue bonds for Coastal Preparatory Academy to acquire the undeveloped parcel directly across the street from the school. The subject site is currently a wooded, undeveloped tract consisting of approximately 23.25 acres. Because this is a general map amendment and not a conditional rezoning, uses that would be allowed on the property are those allowed by right or by special use permit in the B -1 district based on the Table of Permitted Uses in the Zoning Ordinance. The B -1 district permits a total of 59 uses by -right and 11 uses with a special use permit. In general, the district permits a variety of commercial and institutional uses. Access is provided to the subject property by Scotts Hill Medical Drive, a private road which connects directly to U.S. Highway 17. The property owner recently obtained an approved scope for a Traffic Impact Analysis (TIA) from the Wilmington Metropolitan Planning Organization. Per the approved scope, the full build of the site would consist of 132,000 square feet of office uses, 18,000 square feet of medical office uses, 32,000 square feet of shopping center uses, and 9,000 square feet for a pharmacy with a drive - through. The total square footage included in the TIA is 191,000 square feet, about 10,000 square feet less than the current approved plan allows. TIAs are not required in advance of general map amendments and are typically completed when a specific development is proposed. However, due to the cost and effort required to produce a TIA, this is generally a good indicator of the applicant's intended development of the site. There are a few North Carolina Department of Transportation (NCDOT) projects also planned for the area. Project 44238 will make improvements at the Market Street /1 -140 interchange by widening the existing ramps to and from Highway 17. However, the project is currently unfunded. State Transportation Improvement Program (STIP) Project U -4751, Military Cutoff Extension, is currently underway to extend Military Cutoff from Market Street to 1 -140. Once completed, the Hampstead Bypass (STIP Project R- 3300A) will begin which will extend that road to and around Hampstead. The bypass will allow another route for residents to get to and from Pender County. The 2016 Comprehensive Plan classifies the property as Community Mixed Use. This place type focuses on small - scale, compact, mixed use development patterns that serve all modes of travel and act as an attractor for county residents and visitors. Types of appropriate uses include office, retail, mixed use, recreational, commercial, institutional, and multi - family and single - family residential. The proposed B -1 rezoning is generally consistent with the 2016 Comprehensive Plan because commercial districts are identified as typical zoning categories for the Community Mixed Use place type, and the B -1 district allows for the types of retail, office, housing, and recreational uses recommended for this area. The Planning Board considered this application at its April 4, 2019 meeting and recommended approval (7 -0) finding that the application is: 1. Consistent with the purposes and intent of the 2016 Comprehensive Plan because the B -1 zoning district allows for the types of uses recommended by the Comprehensive Plan for this area, and is identified as a typical zoning category for the Community Mixed Use place type. 2. Reasonable and in the public interest because the proposal supports business success by increasing access to basic goods and services for residents in eastern New Hanover County and north of Scotts Hill, which may reduce the need to travel to the Porters Neck and Ogden areas. In addition, the Zoning Ordinance requires the site to provide a transition to the abutting residential property with the installation of a bufferyard along the shared property lines. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 282 Chairman Barfield thanked Mr. Schuler for the presentation and invited the petitioner to make remarks. Michael Nadeau with Creative Commercial Properties, representing the property owner, WPE Holdings, LLC, stated his clients are a group of 90 doctors and purchased the land almost 15 years ago. At that time the land was planned and permitted for a major medical office development, five very large buildings with over 200,000 square feet targeted to medical /rental offices. Those plans from 2007 were delayed, but since then the market has changed very dramatically particularly with the medical market. Consolidation and acquisitions of medical practices have been widespread, and the number of players have been reduced remarkably dramatically over the last 10 to 12 years. He and his clients are finding, in continuing their efforts to find tenants for this type of project of a large building, the remaining medical practices are not rental prospects and they want their own stand -alone facility. The practices do want to be in that market and it is a fast growing area for Pender and New Hanover counties. However, the scheme from 2007 no longer makes sense, and this rezoning request is to accommodate the sale of individual lots to the stand -alone market to meet the current demand. He and his clients also believe this will finally open up this approximately 20 acres to development and put them in a position to serve the community. Chairman Barfield thanked Mr. Nadeau for his remarks, and announced that no one else had signed up to speak in favor or in opposition to and closed the public hearing. He then opened the floor for Board discussion. Motion: Commissioner White MOVED, SECONDED by Commissioner Kusek, to approve, affirming the Planning Board's statements that the application is 1) Consistent with the purposes and intent of the 2016 Comprehensive Plan and 2) Reasonable and in the public interest. In response to Board questions, Mr. Schuler stated that the under B -1 district staff would classify artisan manufacturing as a product made by hand such as custom furniture builders. Craft breweries would also be allowed under the classification. Any type of manufacturing procedure that takes heavy equipment would not fall under the artisan manufacturing classification. Towing yards, automobile services, and boat storage would also be allowed in the B -1 district. In response to additional Board questions, Mr. Schuler stated that the applicant has not expressed plans to do anything other than the office buildings that were discussed. Again, the applicant is proceeding forward with conducting a TIA for the office and medical related uses. Generally, one does not start the TIA process as it is time consuming and costs some money to complete. Proceeding with a TIA is a good indicator of how the property is planned for development. Regarding the private road that will service the new project, Mr. Schuler stated that the Wilmington Metropolitan Organization (WMPO) is aware of all of the projects. It is the organization that facilitates the review of the TIAs, so as new development is being developed there is the potential that TIAs will have to be updated. An example of this is the proposed Blake Farms which has a buildout of several years in the future. There is the understanding that as development is occurring, the TIAs have to be tweaked as they do expire. New Hanover Regional Medical Center ( NHRMC) had a hospital planned for the property and the TIA for that project is no longer valid. When the hospital is ready to be developed on the site, NHRMC will have to go back through the TIA process. As far as the roadway infrastructure in the area, Market Street is designed as a superstreet and it is a highway. There have already been discussions on what the future improvements would be along this road in order to serve this development and there are improvements in the works. Hearing no further discussion, Chairman Barfield requested a vote on the motion on the floor. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of AN ORDINANCE OF THE COUNTY OF NEW HANOVER AMENDING THE ZONING MAP OF AREA 9A OF NEW HANOVER COUNTY, NORTH CAROLINA, ADOPTED JULY 1, 1974, is hereby incorporated as part of the minutes and is contained in Zoning Book II, Section 9A, Page 56. PUBLIC COMMENT ON NON - AGENDA ITEMS Chairman Barfield reported that two people signed up to speak on non - agenda items. Diana Hill, resident of Klein Road, stated that she attended today's Pine Valley Library ribbon cutting event. She was surprised that the Myrtle Grove library had to be replaced as it was only built 26 years ago. The fact that the Pine Valley library is a building designed to be a library was very heartening to her in regard to the downtown library. A similar design would enhance the downtown library. As to the state of the downtown library, new paint would update the space. The lack of windows is probably what kept the downtown library safe during Hurricane Florence and other storms. There are many local artists who could provide artwork similar to the Northeast Library branch to lighten the interior and could also make an impact on the outside of the building. The second floor of the downtown library could be given over entirely to a children's center. The third floor could be used for the research being done on the second floor as well as the law library. The third floor could give access to technologies for students. The downtown library holds about 40 programs a month and the meeting rooms are booked every night that the library is open. On a recent Wednesday, she counted 43 people using the library and two of the four tutoring rooms were in use as well as most of the computers. There are many rumors about the downtown library. The County needs to say if the real reason it needs to sell the parking deck is for money because it is not getting the appropriate money from it. She does not think anyone in town cares who owns the parking deck and if it is not NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34 REGULAR MEETING, MAY 6, 2019 PAGE 283 making money then the County needs to sell it. If it is that the County wants the tax base from residential development, then sell the mostly empty property within Second, Third, and Grace Streets. She believes the only uproar the Board has heard is around the library and the issues it has in regard to the building itself. It certainly cannot be fiscally responsible to tear down a solid, useful, building with all of the materials that will have to be disposed of and then replace a portion of it with new build. It will be a disappointment if the County does not request development options with separate plans for the library and museum properties. ADDITIONAL AGENDA ITEMS OF BUSINESS Chairman Barfield stated that the Pine Valley Library is the only library in this County that was built to serve as a library. The Myrtle Grove Library was decommissioned today and when built was done so to be a library. However, for those who would like to see what a library should look like built from the ground up, they need to go to the Pine Valley branch. It is amazing. There was also a groundbreaking today at the airport as it is growing again to enlarge and create more terminal space. This will allow it to better serve this growing community. It has been a great time for this community. ADJOURNMENT There being no further business, Chairman Barfield adjourned the meeting at 5:18 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 forreview and checkout at all New Hanover County Libraries and online at www.nhcgov.com.