2020-05-18 Regular Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 517
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular Session on Monday, May 18, 2020, at
9:00 a.m. in the Andre’ Mallette Training Rooms at the New Hanover County Government Center, 230 Government
Center Drive, Wilmington, North Carolina.
Members present: Chair Julia Olson-Boseman; Vice-Chair Patricia Kusek; Commissioner Woody White; and
Commissioner Rob Zapple. Commissioner Jonathan Barfield, Jr. participated remotely.
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
Chair Olson-Boseman stated that on May 11, 2020 New Hanover County Fire Rescue Firefighter Engineer
Michael Stanley passed away after sustaining severe injuries in a motorcycle accident. He lived a heroic life as a
public servant, putting his life and safety on the line for our community and the Whiteville community as well. He
also lived a selfless life, helping his neighbors, building wheelchair ramps for those in need, and doing anything
needed of him by his fellow firefighters. He was a loving father and husband, and our community, and our New
Hanover County Fire Rescue team will truly miss him. His friends and family are in our hearts and in our prayers
during this difficult time. Chair Olson-Boseman further stated she would like to start today’s meeting by honoring
New Hanover County Fire Rescue Firefighter Engineer Michael Stanley, his life, and the legacy he leaves behind
with a moment of silence. After the moment of silence, Vice-Chair Kusek led the audience in the Pledge of
Allegiance to the Flag.
APPROVAL OF CONSENT AGENDA
Chair Olson-Boseman requested a motion to approve the Consent Agenda as presented.
Commissioner Zapple requested that Consent Item #4 Adoption of a Resolution to Dispose of Surplus
Property According to Procedures Outlined in North Carolina General Statutes - Chapter 160A, Article 12 and a
Donation of One (1) Vehicle to the Navassa Police Department According to Chapter 160A-274 and Consent Item
#5 Adoption of Budget Amendments be removed from the Consent Agenda for further discussion and
consideration.
Hearing no other comments, Chair Olson-Boseman requested a motion to approve the remaining items
on the Consent Agenda.
Motion: Vice-Chair Kusek MOVED, SECONDED by Commissioner Zapple, to approve the remaining items on the
Consent Agenda as presented. Upon vote by roll call, the MOTION CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
CONSENT AGENDA
Approval of Minutes – Governing Body
The Commissioners approved the minutes of the Regular Meeting of May 4, 2020.
Adoption of Resolution Modifying the Implementation of the Stormwater Services Program - Engineering
The Commissioners adopted a resolution modifying the implementation of the New Hanover County
Stormwater Services Program. On December 16, 2019, the Board authorized the establishment of a Stormwater
Services Program for the unincorporated area of New Hanover County effective July 1, 2020, to include a
Stormwater Services fee on the tax bills which will be mailed in August 2020. As a result of the impacts due to
COVID-19, residential property owners who may be unemployed/underemployed, businesses that may be
struggling financially, and non-profits/churches that may have experienced a decrease in charitable giving, have
experienced financial hardships. The inclusion of a Stormwater Services fee on the August 2020 tax bills would add
additional financial obligation to these groups. The modifications are as follows:
1.The implementation date for the Stormwater Services Program will remain July 1, 2020, with a special
revenue fund established July 1, 2021
2.Initial Stormwater Services fees will not be included on the August 2020 tax bills, but will be included
on the tax bills that will be mailed in August 2021
3.In accordance with the county’s current management of stormwater, property owners will continue
to be responsible for maintaining the drainage ways on their property through June 30, 2021;
however, the County will work with the property owners to delay work, where feasible
4.For FY 2020-2021, the Stormwater Services Program will primarily focus on the following:
a.Emergency Watershed Protection (EWP) grant funded work in the approximate amount of
$4,700,000
b.Installation of culvert and related ditch work as part of the Military Cutoff Extension project
c.Completion of priority projects based on available funding
d.Develop a list of stormwater capital projects to begin on or after July 1, 2021
e.Completion of Stormwater Services Program ordinance and technical manual
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 518
5.The County will assume maintenance responsibility on July 1, 2021
6.Addition of the following 13 positions effective July 1, 2020, with partial funding for FY 2020-2021 in
order to begin providing maintenance on July 1, 2021:
Program Manager (one position); Permit Assistant (one position); Technician (eight positions);
Inspector (two positions); and CAD/GIS Specialist (one positon)
7.Inclusion of the fee structure in the FY 2021-2022 budget fee schedule
8.FY 2020-2021 net expenses will be paid from general fund revenues and will be repaid to the general
fund with FY 2021-2022 Stormwater Services Program revenues
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book
XLII, Page 10.1.
Adoption of a Resolution to Award of Bid # 20-0295R and Contract for the Prince George Creek Watershed
Recovery to Carolina Restoration and Cleaning Services – Engineering
The Commissioners adopted a resolution awarding bid # 20-0295R and contract for the Prince George
Creek Watershed Recovery to Carolina Restoration and Cleaning Services in the amount of $399,912.37. Carolina
Cleaning and Restoration Services was the lowest responsive, responsible bidder. The County received two grant
awards for hazardous debris removal and watershed restoration for specific bodies of water in the County related
to Hurricane Florence. The federal grant was from the Natural Resources Conservation Service in the amount of
$3,627,109.20 and the state grant was from NC Division of Soil and Water Conservation in the amount of
$1,099,124. The federal match requirement will be provided by the state funding; therefore, the project is 100%
grant funded.
A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book
XLII, Page 10.2.
Adoption of Kiwanis Club of Wilmington, NC Day Proclamation – Governing Body
The Commissioners adopted the proclamation recognizing May 27, 2020 as “Kiwanis Club of Wilmington,
NC Day” in New Hanover County.
A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book
XLII, Page 10.5.
Discussion and Adoption of a Resolution to Dispose of Surplus Property According to Procedures Outlined in
North Carolina General Statutes Chapter 160A, Article 12 and a Donation of One (1) Vehicle to the Navassa
Police Department According to Chapter 160A-274 – Finance
Commissioner Zapple stated that non-profit organizations will have the opportunity to inspect and
purchase surplus property, which includes 18 vehicles besides the one designated for the Navassa Police
ththth
Department, from May 19 until May 26 before being sold at auction starting May 27. The contact person is
James Derseraux at 910-798-4321.
Additional Information: The Commissioners adopted a resolution to dispose of surplus property according
to procedures outlined in North Carolina General Statutes (NCGS) Chapter 160A, Article 12 and approved the
donation of one (1) vehicle to the Navassa Police Department according to NCGS 160A-274. After non-profit
organizations have the opportunity to inspect and purchase certain property prior to being sold by auction, all
remaining property will be disposed of according to the procedures prescribed in Chapter 160A-270(c) which
authorizes the disposal of personal property electronically using an existing private or public electronic auction
service. Any items not sold electronically will be disposed of by any other method authorized by the statutes
including discarding.
Discussion and Adoption of Budget Amendments – Budget
Commissioner Zapple expressed appreciation to the Landfall Foundation for the grant of $2,500 to the
Senior Resource Center (SRC) to support the area’s COVID-19 response in regard to budget amendment 20-067.
The SRC will use the funds to serve an additional 735 meals to the community.
In regard to budget amendment 20-066 and what the distinction is between the walking trail and other
work being done when there is a 40/60 partnership with the City of Wilmington, County Manager Coudriet stated
that the Echo Farms Capital Project is a three-phased project. The City of Wilmington agreed to cost share on
phases one and two, but not on phase three. While the project is being done effectively, on a parallel basis, it is
cost shared in a different way. The walking trail is in phase three and also includes the construction of the
additional tennis courts.
Additional information: The Commissioners adopted the following budget amendments which amend the
annual budget ordinance for the fiscal year ending June 30, 2020:
Parks and Gardens 20-066
Senior Resource Center 20-067
Motion: Commissioner Zapple MOVED, SECONDED by Commissioner Barfield, to approve the Consent Items 4 and
5 on the Consent Agenda as presented. Upon vote by roll call, the MOTION CARRIED:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 519
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
A copy of the resolution for Consent item #4 and copies of the budget amendments for Consent Item #5
are hereby incorporated as part of the minutes and are contained in Exhibit Book XLII, Pages 10.3 and 10.4,
respectfully.
REGULAR ITEMS OF BUSINESS
COMMUNITY CHILD PROTECTION TEAM ANNUAL REPORT AND APPOINTMENT OF AT-LARGE MEMBERS
Judge J. H. Corpening, II, Chair, and Neesha Allen, Co-Chair, of the Community Child Protection Team
(CCPT) thanked the Board for the opportunity to present the CCPT report as required by state law. The CCPT is a
multidisciplinary organization that is appointed by statute and by the Board to evaluate gaps in services that effect
children. Judge Corpening and Ms. Allen presented the CCPT accomplishments, gaps, and goals for the coming
year:
2019 Accomplishments:
Community Education on Reporting Child Abuse and Neglect: training provided to law
enforcement, Coastal Horizons, Senior Resource Center, Communities in Schools, and System of
Care on how to recognize, respond, and report child abuse and neglect.
Intensive Child Fatality Reviews: CCPT members participated in one intensive review resulting in
recommendations to DHHS to improve programs and policies regarding child safety and
wellbeing.
Resilience: multiple CCPT members participated in screening discussion panels for the
“Resilience” film and serve on the Resiliency Task Force.
Youth Mental Health First Aid Training: CCPT chair successfully advocated with the New Hanover
County Schools for all 4,000 school employees to complete this critical training over the next two
years.
The Flower Launch “Strong and Thriving Families”: Originally scheduled for April 2019, during
Child Abuse Prevention Month, the event had to be canceled due to COVID-19. It will be held
next year. This event honors community members and professionals who work every day to
nurture and protect our children.
Lack of consistent, accessible, effective mental health and developmental disability services:
Difficulty accessing inpatient treatment for stabilization
Limitations for coverage by both Medicaid and private insurance
Need for more school based mental health services
Limited accessible services for caregivers and children with co-occurring mental health and
developmental disabilities
Upon placement of children in DSS custody, parents lose Medicaid coverage, resulting in lack of
access to critical services
Recommendations:
Expand private insurance coverage for mental health services
Expand state funding for mental health and developmental disability services
Improved oversight of Medicaid providers by Trillium
Provide all schools with mental health therapists
Approve Medicaid Expansion
Substance Misuse-Involved Families:
Prevalent contributory factor in child maltreatment resulting in:
Child fatalities (including fatalities resulting from unsafe sleep practices)
Parental incarceration
Infants born addicted to controlled substances
Neglected and unsupervised children
Recommendations:
Community awareness through education regarding intervention and safe sleep practices
Continue collaboration with community partners to develop policy and procedures to ensure
child safety
Advocate for legislation mandating improved oversight of medication providers and effective
assessment and treatment services
Advocate for legislation granting child welfare social workers access to the NC Controlled
Substance Reporting System (CSRS) in order to enable accurate assessment of the extent of
a parent’s use of prescription drugs and the impact of that use on child safety
Lack of Affordable Non-Subsidized Housing:
Working poor are not eligible for housing assistance
Numerous affordable housing complexes damaged by Hurricane Florence resulted in the
displacement of hundreds of families
Lack of affordable, adequate housing in New Hanover County, results in:
Families forced to live in unsafe neighborhoods
Multiple families residing in a single residence
Homelessness
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REGULAR MEETING, MAY 18, 2020 PAGE 520
Recommendations:
Provide funding to community agencies to develop innovative housing initiatives and
solutions that meet the needs of all our populations, particularly the working poor
Require strict enforcement of housing regulations
Advocate for increased federal housing subsidies
Service Barriers for Undocumented Families:
Systemic barriers exist for undocumented families to access services to meet the basic needs of
their children including:
Medical care; dental care; mental health treatment; and housing
Recommendations:
Ensure that basic needs for all children are met, regardless of citizenship, through advocacy
at the local and state level
Judge Corpening thanked the Commissioners for all they do as leaders in this community, for their
continued commitment to children in this community, and for the innovative ways in looking at how to make
things better for the children. He requested the appointment of the following at-large members to the CCPT for
the ensuing year: Mary Ann Lama, Executive Director, Domestic Violence Shelter and Services, Inc.; Robert J.
th
Speight, 5 Judicial District Chief Court Counselor Division Juvenile Justice, NC Department of Public Safety; Amy
Feath, Executive Director, Carousel Center; Chris Preston, New Hanover County Youth Empowerment Services
Manager, New Hanover County Community Justice Services; and Steven Still, Director, New Hanover County
Emergency Management.
Chair Olson-Boseman asked for direction from the Board to appoint Mary Ann Lama, Robert J. Speight,
Amy Feath, Chris Preston, and Steven Still to the Community Child Protection Team for one-year terms expiring
April 2021.
Motion: Commissioner White MOVED, SECONDED by Vice-Chair Kusek, to appoint Mary Ann Lama, Robert J.
Speight, Amy Feath, Chris Preston, and Steven Still as recommended to the Community Child Protection Team for
one-year terms expiring April 2021. Upon vote by roll call, the MOTION CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
In response to Board questions, Judge Corpening stated as it relates to the impact of COVID-19 on
domestic violence and child abuse in preparation for next year’s report, calls to the Domestic Violence, Shelter and
Services, Inc. hotline have doubled and a slight uptick in cases has been seen. It is anticipated that once restrictions
are lifted, there will be a dramatic spike in domestic violence cases that are actually filed. Child maltreatment
reports are down significantly, but it is believed that is due to children not being seen by the top three groups of
reporters who are our school teachers, daycare workers, and pediatricians due to COVID-19 restrictions. There has
been an uptick in removals by DSS in the last few weeks and people in child welfare from New Hanover County to
Raleigh and beyond are concerned about what is going to happen when state restrictions are lifted. The
information will be included in the 2021 report.
Judge Corpening stated as it relates to the recommendation to approve Medicaid expansion and if it will
fix the regulatory issue of parents losing Medicaid coverage when their children are placed in DSS custody, the
answer is no and it is a separate item. There have been some conversations on the Child Wellbeing Task Force in
Raleigh about the impact of parents losing their Medicaid when they lose their children. There have actually been
some healthy conversations about trying to fix that for some period of months after this occurs. However, there
has not been any legislative action about it. There have been some conversations about how Medicaid expansion
would enhance coverage, but it would not seal that gap.
In response to additional Board questions, Judge Corpening stated as it relates to the recommendation on
requiring strict enforcement of housing, regulation issues have been found during case reviews where people are
residing in residences that are not authorized both with respect to substance related issues and in violent crime
related issues. These are hot button items that the CCPT are concerned about.
The Board thanked Judge Corpening and Ms. Allen for the update.
PARTNERSHIP ADVISORY GROUP UPDATE AND RECOMMENDATION
Partnership Advisory Group (PAG) Co-Chair Spence Broadhurst stated he, along with PAG Co-Chair Barb
Biehner and Vice Co-Chair Dr. Joe Pino, appreciate the opportunity to present the third deliverable of the PAG
charter, which is the recommendation of two or three responding parties to further research and perform due
diligence. The PAG has spent considerable time deliberating and developing the Request for Proposal (RFP) and on
evaluating the six responses received to the RFP. The PAG paused for some time to allow the New Hanover
Regional Medical Center (NHRMC) and medical professionals to deal with the COVID-19 pandemic. During that
time, the 21-member advisory group continued to be very diligent in its responsibilities and broke into small
groups to evaluate the very comprehensive responses. Subgroups reviewed each aspect of the goals and
objectives, evaluated the responses, and asked respondents further clarifying questions to get more information.
All of that information has been posted on the public website, along with the proposals, in a very transparent
manner. Also, additional dialogue was held with the respondents as it relates to COVID-19 and they provided
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excellent information of what their medical centers were doing, what they were providing to their communities to
help, etc. Each respondent was also asked if they still supported their respective proposals due to the changing
times. All responded that they definitely were and wanted to be a part of the partnership with NHRMC.
PAG Co-Chair Biehner continued the update stating each subgroup reported on the work done within
each different section of the proposals and it was found that the same three potential partners stood out for the
depth of their expressed commitment to all that the PAG said was important. The PAG also heard from the
physicians on the Physicians Advisory Committee (PAC), who reported that the PAC went through a similar
th
evaluation and had identified the same three leading potential partners. The PAG voted unanimously on May 7 to
vote for the top three and last week, the NHRMC Board of Trustees voted to endorse the recommendation. Each
group saw the value in exploring partnerships that would fund the growth in health services, the needs that are in
this region, provide for local control, and infuse millions of dollars into our county for the community benefit.
These proposals are clearly worth exploring more. What is being presented today is the PAG’s recommendation to
narrow the focus and conduct further due diligence with the three organizations that offered to provide those
benefits. In alphabetical order they are Atrium Health, Duke Health, and Novant Health. If the Board approves this
recommendation, the PAG’s next step is to define key considerations for the letter of intent (LOI) that will be
shared with each respondent and the PAG will work to get to know each respondent better. This will be done
through virtual site visits as well as some in-person visits with each organization. The organizations will offer public
presentations of their proposals and the PAG will listen to the public's feedback via a public hearing and through
ongoing communications. This narrowing of focus does not eliminate any of the six from consideration, but does
allow the PAG to perform the due diligence in a more focused manner. The PAG will also continue to weigh
potential partnerships against the options for NHRMC to remain status quo or for it to restructure. Once this work
is complete, the PAG will bring back a recommendation on whether to move forward and if so, with which
preferred partner. She concluded the update stating that on behalf of the PAG with the support of the PAC and the
NHRMC Board of Trustees, the PAG asks for the Board’s approval to narrow the focus to Atrium Health, Duke
Health, and Novant Health.
In response to Board questions on what due diligence means to the PAG, Ms. Biehner stated it means the
PAG is going to explore, through the LOI, all the different aspects that the PAG thinks are important to move
forward. Patient safety, quality, staff, etc. are all the different pieces that tie into due diligence. The support team
is a little different in that they get much more into the overall proposal of every detail of the financial aspects, their
capabilities, etc. There are a lot of moving pieces that will happen at the same time. To her personally, having been
through this several times, due diligence for the PAG will come down to two words and that is fit and culture. As it
relates to site visits and the timeframe that is being looked at to accomplish the due diligence on the three, the
virtual site meetings are starting this week and will continue over the next two weeks, dependent upon the
Governor’s orders as well as the Board’s direction. There may be small group onsite visits in late June/early July.
She does not have a final schedule for the visits, but believes one is currently being scheduled for early June.
A brief discussion was held about how the current focus appears to be around the billions of dollars
associated with the three respondents recommended by the PAG. As to what work is being done on the hospital
remaining at status quo or having an internal restructuring in addition to looking at the RFP responses, Mr.
Broadhurst stated that as a point of clarity the focus of the PAG is the 18 key performance elements (KPEs) with 16
of the KPEs dealing with equity care, access, and things that are critical to the evaluation. The PAG charter is clear
and the members stuck to the assignment. It is understood what status quo means in that it is for NHRMC to stay
exactly as it is currently. A lot of time was spent evaluating and understanding all the options, the potential options
of restructuring, etc. so that in moving forward, it could continue to be applied to any other options the PAG has.
As the PAG is doing its evaluation of narrowing the focus to the two or three respondents, it continues to put
status quo and potential restructuring in line with those responses and every decision made is balanced against
those two aspects. This type of analysis will continue as the PAG moves forward with any further recommendation.
In response to Board questions if there will be a written option of restructuring with details of what is
needed to be done to meet the identified needs, Mr. Broadhurst stated that the option continues to be evaluated
as to whether that will evolve into a specific recommendation. The PAG has and will continue to evaluate the
restructuring option. During the open sessions, everyone had the opportunity to see it was very clear that some of
the restructuring addressed some of the gaps that the PAG identified through the goals and objectives that clearly
have brought the process to where it is now. In identifying those gaps, there are areas that could be clearly
addressed through restructuring in some form because there were several different options. However, there were
clear gaps that restructuring did not address. The PAG has had a very objective form of scoring, in addition to the
subjective nature of it, but it certainly went through a scoring system as it developed the recommendations and
will continue to use that system. As to his answer appearing to be that there will not be an actual written option
like that, Mr. Broadhurst stated that was not accurate. He said the PAG has not developed it yet and it would rely
on the support team for it. The three options plus the restructuring option could be laid out on paper to make it
available and the team is in the process of doing that.
Discussion was held about the NHRMC strategic plan being a large part of the discussion, how that has
factored into the billions of dollars from the three recommended respondents as support for the strategic plan,
and how for many people the frustrating part is that it is unknown what is in the strategic plan unless a person is a
member of the NHRMC Board of Trustees or inside the group. As to whether the strategic plan information could
be made public now that all the RFP responses are in the public, Ms. Biehner explained that just like the proposals,
there is redacted information and it would be very difficult in a time when three competitors are looking at
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NHRMC very seriously to then turn around and handout NHRMC’s strategy to the public. It is wrong anytime like
that, when you're competing against staying as is versus having others that potentially could become your partner.
The NHRMC Board of Trustees is always seriously looking at what's going to happen because of the financial
situation. She learned from NHRMC President/CEO John Gizdic today that the losses of the last couple of months
have really equaled to what the capital plan was, or at least half of the capital plan, for the entire year. As of now,
capital planning and implementation of the capital is on hold until it is determined what these losses will mean in
total. She can provide assurance that the strategies that have been evaluated and approved on the NHRMC board
level really focused on the needs of this region and moving it forward. Nothing is more important than making sure
we have access to healthcare for all of our citizens. She also does not believe that any of it is unnecessary and the
hospital will have to move forward on all of the capital planning.
A brief discussion was held about the dollar amount driving some of the questions, discussions around the
sale of the hospital, and how options for a joint venture is appealing to many people. As to why a joint venture
would or would not work and if there would be a full focus on that in moving forward with the three
recommendations, Ms. Biehner stated the challenges are that all indicate that in the end, whether it's a 30-year
lease or an immediate upfront sale, there would be a change in control at some point in time. As such, a joint
venture does not necessarily mean the same thing when that is part of the equation. The challenge will be, and is
what will have to be looked at very seriously just as we would if we were to stay as is or restructure, how does
NHRMC access capital and what is the best way to do that. Joint ventures do cause some challenges, such as the
potential of having to redo bonds or needing other types of financial relationships. All of that is being taken into
consideration for the three top proposals as well as whether to be standalone or restructure. While the joint
ventures proposed as options include a cash investment by a partner, Ms. Biehner stated it is very different in that
the commitment of dollars is more in the fact that the partner has much more involvement in the overall
ownership. As to if the LOI and doing the due diligence is an opportunity to flesh out the needs with a joint venture
and if the option was available, Ms. Biehner responded what the hospital’s needs are in general will absolutely be
fleshed out. As to whether it can be done in a joint venture is part of what is asked, but again she thinks it will
come down to overall structure and the need for capital. It is being asked each time and the challenge for all three,
as well as the other proposals, is how much capital opportunity there is for access to capital versus what the
relationship is.
Discussion was held about the question being asked in the community about the involvement that
University of North Carolina (UNC) School of Medicine currently has here with its program and if in going with any
of the top three recommendations that involvement would be lost. PAG Vice Co-Chair Dr. Pino stated the hospital
has had a partnership with the UNC School of Medicine for nearly 40 years. It has been a supportive relationship
where the hospital has worked closely with UNC in regard to the hospital’s graduate medical education (GME)
program as these are our residents and our future doctors for our region. In fact, nearly half of the
obstetrics/gynecology doctors that graduate from the program will stay in North Carolina and the average is
somewhere around 25% to 30%. In terms of the impact of this on the region, about half of the primary care
providers in Pender County come from the programs. In Brunswick County, about half of the practicing surgeons at
Novant are graduates from the programs. The same holds true with the internal medicine physicians. The
relationship has been strong; it has grown over the years with a branch campus of the UNC School of Medicine.
The hospital currently has 12 third year medical students and six fourth year medical students from the UNC
School of Medicine. Over the last couple of years, the hospital has had the opportunity to recruit them into its own
residency program. Essentially, this is a pipeline to develop physicians for our community and region. It has been
an important aspect as far as the growth and access to healthcare in our region. It is true that UNC said if they
were not necessarily the go-to partner they would withdraw their candidacy. The truth though is that Duke offers
the same kind of GME, an undergraduate medical education, that UNC could offer and has said very clearly that it
would put forth that same effort. Whereas Atrium, at this point, has been in dialogue with Wake Forest School of
Medicine and their deal has not been fully approved by the state. Novant has no academic relationship and only
one residency program in family medicine and it is out of Charlotte. However, he suspects there is an opportunity
that perhaps Novant can find an academic partner which is not necessarily in the final three that was just
announced. If that occurs, that will basically reimagine what healthcare and medical education could be for
southeastern North Carolina.
As to whether it is conceivable that UNC could form a partnership or joint venture with Novant, Dr. Pino
stated it is conceivable. Novant has a history of working with academic medical centers. This is also really
important when thinking about the health and well-being of people in the region. There are things that we cannot
do here, such as provide care for complex burns. That is only offered at UNC at their burn center for the state. It is
also true for transplants as those are not performed in southeastern North Carolina. It is also important because
those who are progressing to chronic renal failure, a better quality of life will be manifested through renal
transplant to avoid dialysis. There are people from the UNC Division of Nephrology come here on a routine basis to
provide consultation for those who are considered for the transplant list. Having a quaternary partner is really
important for the health and well-being for people in southeastern North Carolina. In regard to the number of
residents that are in the program, Dr. Pino stated there are 76 residents. What he was referring to earlier was the
UNC School of Medicine’s medical students in their third or fourth years of medical school, of which NHRMC has 12
third years and six fourth years. In 2021 there will be a class of 16 third-year medical students calling Wilmington
home. County Manager Coudriet stated we are lucky to have third and fourth year medical students, and that a lot
of what Dr. Pino spoke about was the residency program owned by NHRMC and that is something unique and to
be proud of. They have faculty appointed through UNC, but it is not a UNC-Chapel Hill residency program. No
matter what, it needs to and will continue going forward. There is a fundamental difference between the branch
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campus, which is third and fourth year students of the medical school, and the actual residency program where
post-graduation, a person goes on to continue to develop their craft.
A brief discussion was held about whether or not there was an opportunity in the upcoming month that
the PAG will be able to work out some type of agreement that could possibly bring a medical school, pharmacy
school, or something similar here that the County would have some ownership in and cooperation with the UNC
system. Dr. Pino stated that he thought it is very conceivable and it is incumbent upon Novant at this time to
recognize that. One of the shortcomings in their proposal is the inability to bring a lift to our GME program and
undergraduate medical education program. Such a partnership with Novant and UNC would obviously close that
gap and make it an even stronger proposal in bringing forth those programs that were described.
Commissioner Zapple stated that in Mr. Broadhurst’s opening statements he commented on the
uncertainty and the amount of loss that has been happening not only here, but across the state and nation. Atrium
reported a $30 million loss in the first quarter, NHRMC is reporting a loss of $30 million last month and more with
investments, etc., and that almost every healthcare system is in financial freefall at this point. He asked Mr.
Broadhurst what his opinion was of trying to make a decision in the current climate with so much volatility
happening. Mr. Broadhurst responded that the facts are, as stated by Commissioner Zapple, that different medical
centers across the United States, and probably the world, are having financial challenges today and the differences
are probably a result of the delivery service of each medical center. There is no doubt that the current
environment has had a financial impact on NHRMC as an independent hospital. The NHRMC Board of Trustees and
the leadership are dealing with it on a regular basis, which getting to his opinion, really validates the questions
being asked in due diligence. It validates what the PAG asked in the RFP and it certainly will validate the questions
that it continues to ask in due diligence and that the respondents will ask of the PAG. The PAG is advisory, it is
going to make its recommendation, and information will continue to be received from the top three and
potentially the others because none of the responses have been eliminated. Again, the PAG has gone back to the
respondents asking various questions on how they are managing through this crisis. One of the due diligence
challenges is matching the cultures of how any potential partner manages through a crisis like this relative to our
culture. From a financial standpoint, the PAG will certainly look at that and in his opinion, he thinks the COVID-19
situation has created an incredible local financial challenge of being independent. In his opinion, because this is
one of many things the PAG is considering, he thinks it has really brought home that fact that economies of scale
and finances are important. Economies of scale provide cushion, balance, and opportunities. As the PAG balances
the earlier question of a potential partnership with a very financially strong organization, then it will be asking
about their ability to weather the storm and their ability to incorporate NHRMC into them while weathering the
storm. The PAG will also continue to ask what does it look like in terms of status quo and restructuring because the
financial impact locally, he thinks, is very dramatic.
As to what are the three top concerns held by Ms. Biehner and Mr. Broadhurst in light of COVID-19,
recognizing that some prognosticators think COVID-19 may circle around in the November or December
timeframe, in moving forward with any proposal as it pertains to our community and protecting the New Hanover
County citizens, Mr. Broadhurst responded that he is not sure he has three concerns. As he mentioned earlier, the
PAG started with 18 goals and objectives and there are approximately 10 key components under each one of those
that are moving forward. The PAG has a lot to evaluate. As to how COVID-19 plays into this, for him it would be to
understand the urgency behind the questions that are being asked as the PAG moves forward. Those urgencies
deal with financial cushion, financial wherewithal, financial ability to deliver this level of healthcare for the next
generation not just tomorrow, and resources beyond the financial part such as if NHRMC gets in a bind, does it
have an organization that can provide extra equipment, extra resources, and does it have an entity that provides it
with the human resources that can provide healthcare through NHRMC for our community for the long term.
Commissioner Barfield stated that all companies across the globe are looking at a new normal. He thinks
as COVID-19 has approached our community, he is sure the NHRMC leadership is looking at how to do business in
the future. He would think the PAG is having some in-depth conversations of what that new normal will look like
and what would this community expect if another pandemic were to happen, even within the next year or so. He is
concerned about what the co-chairs’ concerns are whether it is status quo or partnering with another organization
and their ability to take care of the citizens in our community. Mr. Broadhurst stated he could not agree with
Commissioner Barfield more and his comments are very on point with the questions the PAG members are asking
right now, within themselves and in collaboration with the NHRMC leadership. The PAG is early in this and there is
more information to get, but it gets back to being able to provide the resources for NHRMC that will lead this
growing community for generations to come.
In response to Board questions regarding the money, if the hospital were to sell, how would that money
be distributed, where does it go, who gets to spend it, and how to use it, Mr. Broadhurst stated it will be the
County Commissioners’ decision. Regarding the conversations being heard that the money will be disbursed
amongst seven counties and many other things, County Manager Coudriet stated as the County is the ultimate
owner of all of the assets, if there were an exchange made, all of the associated revenues would come to the
County and then the County would have to make the determination of where, how, and at what speed to reinvest
those dollars. He has heard it often said by people the attorney general has to weigh in and certainly that office
has been watching and has been in regular communication with the legal counsel for the hospital. That said, the
assets are not owned by New Hanover Regional Medical Center the 501(c)(3). The assets are actually owned by the
County. It is when a 501(c)(3) is dissolved that the attorney general steps in and has a final influence on how those
resources are dispersed back. There is no prevailing requirement for the attorney general or any other governing
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 524
board or institution to evaluate how a county chooses to spend its resources so long as it is done in a way that is
consistent with public purposes. He has also heard it suggested that the money would have to be dispersed
amongst the seven county region and he believes that is predicated on where the attorney general stepped in on
the dissolution of Mission Hospital and that 501(c)(3), which was not owned by Buncombe County but owned by
the 501(c)(3) itself, and having a direct influence on how those dollars should be dispersed. That is not the
situation here. It is New Hanover County who ultimately owns the assets and that is spelled out, even though New
Hanover Regional the 501(c)(3) may go out with cash on hand and acquire a facility by the lease that it signed with
this Board and has been renewed on multiple occasions, it always requires the ownership to any of those assets to
accrue back to the County. The confusion, and he understands that, is where the attorney general steps in on
dissolving a 501(c)(3) that actually has assets. New Hanover Regional Medical Center the 501(c)(3) does not have
assets. All of the assets to include the cash on hand, are actually assets of New Hanover County and it is not the
County who would be dissolved. He expressed appreciation for the question as it is a complicated matter.
Commissioner Barfield stated based on County Manager Coudriet’s answer, he thinks it is important that
County staff, as opposed to the hospital team, have a real conversation with the Office of the Attorney General to
find out what its thoughts would be. If the assets are truly the County's and the hospital is sold, then their opinion
would be moot in his opinion. He thinks it is important that the County asks those questions up front to know what
the parameters are as opposed to guessing or supposing based on what happened with other hospital entities. For
him, he would hate to see those resources divvied up to other counties and thinks that would defeat the purpose.
County Manager Coudriet responded that he understands and if he suggested that County Attorney Copley has not
been in the discussions, that was an oversight on his own part. It is not, at this point, just the legal opinion as it is
based on extensive discussions with outside counsel with the Office of the Attorney General between the County
Attorney's Office as well as counsel for the hospital. There does not appear to be any differences of opinions
amongst the attorneys. Folks or laypersons in the community may have a different reading, but there is no
separation between the lawyers. Commissioner Barfield reiterated that he wants to make sure discussions are
being held with the right people and having the answers upfront to make a truly informed decision. He knows that
Attorney General Stein comes to this community on a regular basis and suggested a meeting be set up with him, as
opposed to his office, to get his thoughts on this matter. County Attorney Copley stated that can be done. She
further stated she has been involved in all the conversations with outside counsel and hospital counsel and there is
no doubt that the money, the assets, would come to the County. In her mind and in her legal opinion, it would
come solely to New Hanover County.
Commissioner Zapple asked County Manager Coudriet if he heard him correctly, that one scenario he is
putting forth is that a billion dollars is put in the hands of the County Commissioners. County Manager Coudriet
stated that he is not putting forth any scenario. He was just addressing that the assets are those of the County. He
believes the question to Mr. Broadhurst was how should those be spent and it would ultimately be the
determination of the County, but there are any number of options which the Board could ultimately consider.
Commissioner White stated the last question causes him to make a few comments. He thinks
Commissioner Zapple is inferring that the idea of selling an asset would create funds which would then be
distributed in this community is a negative thing. He thinks that is in keeping with some of his and his other
colleagues around town about this negative narrative. The idea that three very well capitalized and long
established medical providers and systems in this state would come here and look to purchase NHRMC is a positive
thing for this community. It is strange to him how anyone, other than for a political motive, would not see the
benefits in the next generation of providing hospital services to this community. The idea that we would sit here
independently by ourselves for the next 30 to 40 years and navigate the daily changing structures of health
services and hospital services is arrogant and vain for us to think that. This community should welcome any of
these three partners for a number of reasons. First, not the least of which, is the expanded access to care for the
very people that this board represents. People running for public office that are suggesting that access to care is
going to be strangled or lowered, that the cost of care is going to go up, they are demagoging this issue and it is
shameful and they should not do it. For 54 years this community has nurtured this hospital. It started out simply as
a debt leverage situation, there was no control over the medical community, and there was no quality review
committee. County Commissioners went to the bank and borrowed money, sold bonds, and up to 1993 they just
ensured that the bonds were paid back. That is what it was all about and the same thing happened all across North
Carolina with every county owned hospital. In the late 90s, most county owned hospitals, including Wake,
Mecklenburg, Buncombe, Guilford, Forsyth, etc. at various stages over the past 10 years or so divested themselves
of their hospitals. It was done because it was understood that politicians, like members of this board, are not best
positioned to run hospitals. That might be a philosophical difference that Commissioner Zapple and others in the
community have that members of this board, as politicians, are better positioned around hospitals. He disagrees
and thinks hospital administrators and professionals are best positioned to do it and that Duke Hospital, Atrium,
Novant and others are best positioned to run hospitals going forward in the future. As noted earlier, they have
access to capital and economies of scale that NHRMC will never have access to as an independent standalone
hospital. For people that either do not understand that, he is confused by that lack of understanding, or that do
understand it and are willfully using this as a political weaponized situation, which is worse to him. He would
wager that the quality of care does go up if one of these choices are made and a generation and a half or two
generation relationship is entered into with Novant, Atrium, or Duke. While certainly not meant as disrespect to
NHRMC’s current quality of care, as he is very proud of the hospital, he thinks there is a general consensus that
joining a system, particularly with a robust academic component, would increase NHRMC’s quality of care. As to
the cost of care, anybody that thinks NHRMC has the ability to control the cost of care does not understand the
real world. We have no control over that. Politicians, like members of this board at this level, have zero control
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 525
over the primary revenue drivers of this hospital which are Medicaid and Medicare. People can be convinced that
we have that control, but we do not. It is false. As to if the hospital is sold and it generates money, the idea of
politicians spending a billion plus dollars in cash, it is anathema to us. However, we currently spend $350 million a
year meeting the County’s core mission of delivering education. This County has some of the best schools in the
state, there is a reason for that. We have safe streets that can be safer, a lot is spent with the community college,
and a lot of other things. He asked what could be done with a billion dollars, what kind of transformational change
to the very community that seems to be against this, could be affected positively by such things as eradicating food
deserts and closing the inequality gap in this community. That is something that the commission would deal with
he would assume, certainly he hopes not the state nor the attorney general as it is not their asset to sell nor their
asset to dictate what would happen. However, it is not a negative thing. He knows that people running for office
are pandering to this issue and preying on the uninformed and vulnerable people about their opinion. This is a
once in a community's lifetime opportunity to solidify the future of hospital delivery. Both of his children were
born there and while he hopes not, he is sure his wife and he will need services there over the coming years. His
parents, our families, our loved ones, we all go there and it is our hospital. That is not going to change and it is
always going to be there. Each proposal has local control, has local people sitting on the board, and local doctors.
He knows that the community has been told otherwise and that is also false. He would not support any change in
hospital ownership if he did not think or was not convinced that his own family and his own interest of having
better healthcare in his future would result. It has really saddened him to watch the Save Our Hospital group and
some of the people running for public office using this as a political weapon. In a way it has made for him the very
point of embarking on this journey, because they are using politics to get votes, to try to sway public opinion, and
are the very reasons why we need to be out of the hospital business in his view. We need Atrium, Novant, or Duke,
and not in that order. Whoever it ends up being that is great and is who needs to be running NHRMC, not people
running for office trying to get votes. He stated he would make a motion to approve the PAG recommendation to
focus on and develop LOIs with Atrium Health, Duke Health, and Novant Health; ask the PAG leadership to return
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to the June 15 meeting for an update on its progress with site visits and development of LOIs; and to set the
public hearing as required by the North Carolina General Statutes to receive comments on all six proposals for
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Monday, June 22.
Motion: Commissioner White MOVED to approve the PAG recommendation to focus on and develop LOIs with
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Atrium Health, Duke Health, and Novant Health; ask the PAG leadership to return to the June 15 meeting for an
update on its progress with site visits and development of LOIs; and to set the public hearing as required by the
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North Carolina General Statutes to receive comments on all six proposals for Monday, June 22.
Commissioner Zapple stated while he appreciates Commissioner White’s comments, what Commissioner
White is talking about is the quality and that somehow by what is being done now it will be increased or bettered
by any one of the other three that are being presented or any of the other responses. He asked Dr. Pino to speak
to the relative quality of the medical care that the current NHRMC staff provides and how it compares to others in
the region and across the nation.
Dr. Pino stated that if you believe in unicorns, you have one here because the quality of care, he thinks as
Commissioner White was suggesting, is outstanding. NHRMC can go toe to toe with any academic medical center
across this country. When he came here nearly 20 years ago, he did not know what he was coming to and did not
think he would be here very long. In fact, 20 years later he is still here, most impressed by the quality of the
medical staff, the quality of the leadership of the hospital to put forth the direction that is going to make the care
rendered to people in southeastern North Carolina better. When you take a step back and look at the medical
staff, you recognize that they have trained in the top tier institutions across this country. They come here to
practice medicine, to raise a family, and to provide excellent care to people here. He thinks when comparing
NHRMC’s results to the three institutions being considered, it will be seen that NHRMC rises to the top amongst all
three. In fact, he thinks it was just Duke that beat NHRMC on some of the quality metrics, but it is truly remarkable
the system that has developed and the quality of care that is continuously provided. Do not get him wrong, there is
opportunity for improvement and always will be, but it is something to be proud of.
Commissioner White expressed appreciation to Dr. Pino for his comments and is certain he is very familiar
with the strategic plan of NHRMC and has seen the concerns that are out there about access to capital, about how
that capital would be deployed not just in this county, but in this marketplace, which is really how this question
should be considered. He asked Dr. Pino if he believes that the lack of access to capital will affect the quality of
care that he just spoke about over the next 10 years, if it does not come to fruition. Dr. Pino responded that he
thinks one has to always recognize that access to capital is quite important in the continuation to develop cutting
edge care in southeastern North Carolina. Commissioner White then asked Dr. Pino is it not just about building
buildings, it is about building heart centers, building expanded pediatric services, greater access to oncology
services for a growing and aging population, deploying those assets into the marketplace into some of the six
counties that this hospital serves, and does not that affect the quality of care that he spoke about. Dr. Pino
responded yes, all those do. He thinks that we have to take a step back and recognize that we are in a very
fortunate situation when thinking about our neighboring counties. Over the last four days, Duplin County has seen
over 100 new cases of COVID-19 infection and the state is seeing over 2,000 new cases of COVID-19 infection over
the last four days. It is quite astonishing and yet, in the early days of this pandemic when finding access to testing
and access to PPE was so difficult, having the scale will make a difference in order to get that access as supply
chains are difficult. That said, NHRMC not only stood up, but moved forward to establish those very quickly and
also received help from other institutions across the state. He thinks having a partnership is the real reason why
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 526
we are here today discussing whether that makes sense. He would state yes, let's continue to evaluate that and
put forward what makes sense after going through the process of the LOI.
Commissioner Barfield stated he is one of the people running for office this year, but any decisions that he
makes will be made based on what he thinks is best for this community. Politics aside, he made the point not to
attend any PAG meetings, as he does not go to Planning Board meetings, because he does not want to influence
the process before it is brought to him so that he can get independent thoughts from those that have been asked
to advise this board. He would hate to be thought of as being ignorant or uninformed because his thoughts did not
line up with someone else's thoughts. The great thing about this country is diversity of thought. You can have
different people coming to the table with different thoughts and sharing those thoughts. He wants to be clear that
any decision that he makes, any vote that he makes, is based on what he thinks is best. Just like he chose not to
attend the meeting today and do it remotely because he felt that was best for him today. It is not about politics; it
is about what he believes is the best thing based on the information that he has received and the research that he
has done. He does not know where he is going to come down on this matter, but he is looking forward to more
information to make an informed decision.
Commissioner Zapple stated he wanted address another issue that Commissioner White brought forward
about Medicare and Medicaid and the shifting nature of that and the impacts it will make on NHRMC. He wanted
to remind everyone that whoever of the six respondents is chosen to form a partnership with will have the same
pressures and issues that will affect them as well, perhaps even a more dramatic case, because of the larger
numbers scaling up. Also, one of the concerns in the community is where we can have some independence,
control our own destiny with our local hospital, and have some local control. While there would be cash infusion
through a partnership or joint venture, joining one of these other organizations would put NHRMC as one of 20, 30
or in some cases, over 100 hospitals that are a part of their portfolio. That can be a double edged sword when
there is pressure, as seen with COVID-19, of resources being drawn to the overall organization, perhaps even
sapping in this case NHRMC, if it were a part of a larger organization.
Vice-Chair Kusek stated that she is sure that her family is not alone when they have been told by the
doctors here, that are very good doctors, that certain tests are not offered here or they cannot afford certain
equipment. The ride up I-40 to Chapel Hill gets pretty lonesome and she is sure she is not the only one in the
community that has faced that and that is a challenge. With that being said, she stated she would second
Commissioner White’s motion.
Motion: Commissioner White MOVED, SECONDED by Vice-Chair Kusek to approve the PAG recommendation to
focus on and develop LOIs with Atrium Health, Duke Health, and Novant Health; ask the PAG leadership to return
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to the June 15 meeting for an update on its progress with site visits and development of LOIs’; and to set the
public hearing as required by the North Carolina General Statutes to receive comments on all six proposals for
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Monday, June 22. Upon vote by roll call, the MOTION CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
Chair Olson-Boseman thanked the PAG for their work since October and for getting us to the point we are
today. This has not been a fast process. It is something we have been discussing publicly since last July, and nearly
a year later we are moving forward in a targeted way to conduct due diligence with three organizations that all
have something important to offer our community and that is stability in healthcare. That is what all of this has
been about: finding a partner that can help our community and ensure that our healthcare system can remain
strong even through difficult situations like hurricanes and pandemics. We need NHRMC to grow strategically, to
offer more healthcare services to our region, to be a strong, key employer for our residents, and to remain on
stable footing. She believes that we are on the path to ensure that happens, and she appreciates the work of all
those who have gotten us this far. She looks forward to the coming months learning more about the possibilities of
each of these organizations and listening to the public, their thoughts and opinions, as we make a decision that will
help our community and our hospital now and in the future.
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As staff has suggested, she would like to propose the evening of Monday, June 22 as the date for a
public hearing for our community to share their comments with us on all six of the proposals we received. If her
fellow Commissioners would all look at their calendars to confirm this date, and then staff can begin coordinating
and sharing those details in the next few weeks. She believes that a date further into June will help to ensure that
we can accommodate more people in a safe manner, since the Governor’s Order and the restrictions on gatherings
will likely be loosened by then. As a reminder, all six of the proposals and their executive summaries can be read at
nhrmcfuture.org.
BREAK: Chair Olson-Boseman called for a break from 10:28 a.m. until 10:40 a.m.
CONSIDERATION AND APPROVAL OF THE CARES ACT FUNDING PLAN
Chief Financial Officer Lisa Wurtzbacher stated since the state announced that New Hanover County
would receive its allocation of the state aid, a core team at County Manager Coudriet’s discretion consisting of
herself, Budget Officer Sheryl Kelly, Intergovernmental Affairs Coordinator Tim Buckland, Strategy and Policy
Coordinator Jennifer Rigby, and County Attorney Copley along with support from Public Health and Emergency
Management have been working to produce the following plan:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 527
Background:
The $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act was passed by
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Congress and signed into law by President Trump on March 27
The CARES Act included $150 billion in state and local aid and North Carolina was allocated $4
billion
House Bill 1043 was passed by the North Carolina General Assembly (NCGA) and signed by
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Governor Cooper on May 4. It directed $150 million in immediate aid to counties, with an
additional $150 million in reserve
New Hanover County, which has been responding to the coronavirus since late February,
received about $4 million in aid to respond to the coronavirus
Federal and state guidelines:
Funds must be used to respond to COVID-19
Testing equipment, hazard pay, teleworking equipment, personal protective equipment (PPE)
and redirected staff compensation are permitted uses
Reimbursements of costs to municipal governments is permitted
Offsetting revenue shortfalls is not a permitted use of the funds
Staff recommendations:
Reimburse eligible expenses
Continue county-led diagnostic and antibody testing
Purchase additional teleworking equipment and PPE
Support a small business grant program
Reimburse expenses to date:
New Hanover County has incurred $954,951 in eligible expenses to date responding to the
coronavirus
The amount includes overtime costs, teleworking equipment and PPE, testing supplies and costs
to shelter vulnerable populations in hotels
The City of Wilmington and towns of Carolina Beach, Wrightsville Beach, and Kure Beach
reported a total of $401,042 in eligible expenses
Continue County operations:
$720,000: Payroll differential and overtime
$60,000: Payroll for 10 school nurses to support testing and the County call center through
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August 15
$370,000: Cleaning and disinfecting at County facilities and playgrounds and to install sneeze
guards and social distancing signage at County facilities
$20,000: Boost the County’s WiFi signal
$50,000: To provide temporary staff support for the grant-funded meal delivery service at the
Senior Resource Center and planning for aging adults at risk for COVID-19
$188,960: To purchase additional PPE and to support expenses related to continued response to
COVID-19
Small business grant program:
$1.3 million in grants of $10,000 for small businesses impacted by COVID-19
Awards based on random, objective lottery selection following a simple application process
Businesses must be locally owned and located in New Hanover County and must have fewer than
25 employees
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Public hearing on the program June 1
Summary:
Incurred expenses (municipal and New Hanover County): $1,355,993
Continue County operations (payroll, testing, IT, cleaning program, and additional PPE and
various COVID expenses): $1,408,960
Small business grant program and admin costs: $1,300,000
Total: $4,064,953
In response to Board questions, Ms. Wurtzbacher explained the proposed small business grant program
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will be presented with a detailed briefing during a public hearing at the June 1 meeting. The Board would be
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asked to consider approving it on June 1 and the program would cover 130 small businesses. As to how many
businesses will apply and how many have 25 employees or less, Ms. Wurtzbacher stated she does not have that
information. County Manager Coudriet stated discussions have been held with leading business organizations in
the community that the County would hope to partner with and they helped define the number, in terms of the
grant itself, plus the size of the businesses. It was not randomly done by staff and hopefully it will be able to be
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included in the details on June 1. The two entities are well known and respected by the Board to help generally
define what those parameters would look like believing that there is an appetite for calling on this grant program.
In response to Board questions if other counties are using their CARES Act funds for similar programs,
County Manager Coudriet stated that other communities such as Wake County, Mecklenburg County, and others
are standing up direct grant appropriations. Their dollars came not through the state, but through direct
appropriation from the federal government as communities of 500,000 or more were provided money directly.
There are any number of counties who were using grant dollars such as this to target small business. As to whether
the CARES Act applied to municipalities within our county, County Manager Coudriet stated it does, it would be
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 528
countywide and the County would be the provider of those dollars in the amount(s) described by Ms.
Wurtzbacher.
Chair Olson-Boseman stated she had seen where Mecklenburg County was going to start a micro-business
program some weeks ago and asked staff to look into the possibility of doing something similar here. The initial
discussions revolved around making sure that one business is not getting all of the funds as it is not a big
appropriation. That is why there is a $10,000 limit and the requirements set forth to be able to apply for the
funding. She expressed appreciation to staff for the work done to bring the program together.
County Manager Coudriet stated what is being presented today is the framework. It is a rather easy
application process for the County to access its $4 million. The County is obligated to report to the state a
framework of how the money is intended to be used, which will be done at the Board’s direction. Ms. Wurtzbacher
stated that even after the report is sent to the state, there is the ability to amend the plan.
Commissioner Zapple stated the extent of the economic damage that has been done to our community
cannot be overstated. There are estimates of up to 65% of the restaurants and bars alone in that sector that will
not be able to reopen simply because of the losses they've already had. There is tremendous pressure within New
Hanover County for small businesses. This is a small program, benefiting 130 businesses, and he feels there will be
plenty of requests for this kind of help now and in the future. He is very much in support of the program and would
make the motion to approve the recommendation.
Hearing no discussion, Chair Olson-Boseman asked for direction from the Board.
Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Kusek, to approve the recommendation for the
CARES Act funding plan. Upon vote by roll call, the MOTION CARRIED 4 TO 1:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; and Commissioner Zapple
Voting Nay: Commissioner White
FISCAL YEAR 2020 THIRD QUARTER FINANCIAL RESULTS
Chief Financial Officer Lisa Wurtzbacher stated that the stay at home order started at the end of March
and as such, most of the third quarter operated with the expected normalcy. However, things have changed
significantly since that point and it should be noted that is not the environment the County is in now. She
presented the following highlights of the third quarter of Fiscal Year 2020, which includes financial activity through
March 31, 2020:
General Fund Revenues:
Total general fund revenues at 77.9% of budget
$167.3 million in property tax collected
52.3% of budgeted sales tax collected
Third quarter comparisons:
2020: Ad valorem was $167.3 million; Other was $77.2 million
2019: Ad valorem was $164.6 million; Other was $76 million
2018: Ad valorem was $165.7 million; Other was $71.9 million
Debt Service Fund Revenues:
Total revenues at 71% of budget
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$22.1 million in property tax received with due date of January 6
50.4% of budgeted sales tax collected
Third quarter comparisons:
2020: Ad valorem was $22.1 million; Other was $10.6 million
2019: Ad valorem was $21.6 million; Other was $10.2 million
2018: Ad valorem was $21.1 million; Other was $5.3 million
General and Debt Service Expenditures:
Expenditures represent 71.6% of budget
Public safety and transfers to other funds decreased due to prior year hurricane expenses
Fire Services:
Total revenues collected represent 86.5% of budget
Property tax revenues collected exceed budget
Expenditures as percent of budget is consistent with prior year
Third quarter comparisons:
2020: Revenues were $14.4 million; Expenses were $12.2 million
2019: Revenues were $12.9 million; Expenses were $11 million
2018: Revenues were $12.5 million; Expenses were $10.9 million
Environmental Management:
Charges for services are 78.9% of budget
Reimbursements for Hurricane Florence received
Expenses significantly lower than prior year due to Hurricane Florence
Third quarter comparisons:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 529
2020: Revenues were $16 million; Expenses were $15.8 million
2019: Revenues were $27.6 million; Expenses were $36.8 million
2018: Revenues were $9.6 million; Expenses were $12.3 million
st
Ms. Wurtzbacher concluded the presentation stating that the results since March 31 have changed and
have been accounted for in putting together the 2021 budget.
In response to Board questions, Ms. Wurtzbacher stated the sales tax revenue covers July through January
because of the County being on a two-and-a-half-month lag. The results of April will not be received until July
2020. As to the Environmental Management Fund, she does not have any concern as the charges for services from
a percentage of collection looked higher than where she would have expected them to be at this time in the year.
Hearing no further comments, Chair Olson-Boseman thanked Ms. Wurtzbacher for the report.
PRESENTATION OF FISCAL YEAR 2020-2021 RECOMMENDED BUDGET AND FISCAL YEAR 2021-25 CAPITAL
IMPROVEMENT PLAN
County Manager Coudriet stated this is probably not the budget that we would have been imagining at
the end of 2019 and the first month or so of 2020 and what he will be presenting is a budget almost exclusively
informed by COVID-19. Staff is expecting a shortfall of $9 million which has a bearing on fund balance one-time
money that can and cannot be used and the recommended budget does assume very conservative sales tax
collections for Fiscal Year (FY) 2021. It will be October before the first month of the new fiscal year is seen. The
recommended budget sustains everything the County is currently doing. He then presented the FY 2020-2021
Recommended Budget and FY 2021-2025 Capital Improvement Plan (CIP) for New Hanover County (NHC)
highlighting the following:
Fiscal Year 2020-2021 Recommended Budget: Advancing the Board of Commissioners’ priorities
through fiscal responsibility:
Recommended Budget Framework:
Priorities set by the Board:
Intelligent Growth and Economic Development
Superior Education and Workforce
Superior Public Health and Safety
Revenue parameters set by the Board:
Minimize taxes and fees
Restore fund balance to policy goal of 18% - 21%
County Manager Coudriet noted that fund balance will not be restored as it will have to be used in the
current year to address the $9 million shortfall and at this point, it is estimated sales tax revenues will be short. As
thstthst
of June 30/July 1, the County will be at 13.5% fund balance. Had it not been for COVID-19, on June 30/July 1
the County would have been back at 20% fund balance per the policy. The County is not unique in that almost
every community in the state and across the country will have had to use fund balance and will not likely be in
fund balance position as they go to the rating agencies. The County has credibility with the rating agencies, solid
plans, and a fund balance policy it lives by. While not being able to speak for the rating agencies there is no reason
to believe the County’s bond ratings are in jeopardy as this is a national, if not international challenge, as it relates
to ratings going forward.
Spending Recommendations for Major Funds:
All funds: $399.6 million
General Fund: $350.8 million
Environmental Management Fund: $24.3 million
Fire Services: $16.7 million
General Fund Revenues:
Percentage breakdown: Ad valorem taxes: 57%; charges for services: 4%; fund balance: 1%;
sales taxes: 23%; intergovernmental revenue: 12%; and other: 3%
Ad valorem: $198.5 million:
Tax base: $36 billion (3.3% increase)
Ad valorem rate of $0.555 ($0.4903 General Fund, $0.0647 Debt Service Fund)
Sales taxes: $79.9 million:
Assumes 4% growth, compared to 10% for FY18-19
Historical tax base:
FY15-16: $30.20 billion; FY16-17: $30.82 billion; FY17-18: $33.74 billion (Revaluation
Year); FY18-19: $34.56 billion; FY19-20: $34.84 billion; FY20-21 Budgeted: $36.00 billion
Historical tax rates:
FY15-16 General Fund Tax Rate: 55.40 cents; Debt Service Fund Tax Rate: 2.00 cents
FY16-17 General Fund Tax Rate: 55.40 cents; Debt Service Fund Tax Rate: 6.90 cents
FY17-18 (Revaluation Year) General Fund Tax Rate: 50.53 cents; Debt Service Fund Tax
Rate: 6.47 cents; Revenue Neutral Rate: 58.38 cents
FY18-19 General Fund Tax Rate: 49.03 cents; Debt Service Fund Tax Rate: 6.47 cents
FY19-20 General Fund Tax Rate: 49.03 cents; Debt Service Fund Tax Rate: 6.47 cents
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 530
FY20-21 General Fund Tax Rate: 49.03 cents; Debt Service Fund Tax Rate: 6.47 cents
General fund sales tax:
FY15-16: $61.5 million; FY16-17: $65.1 million; FY17-18: $70.2 million; FY18-19: $76.6
million; FY19-20 Budgeted: $76.5 million; FY20-21 Recommended: $79.9 million
$1.6 million in federal and state government reimbursements from Hurricanes Florence and
Dorian:
For capital outlay and other one-time expenditures
Appropriated fund balance: $5.3 million:
$4.6 million in the General Fund; $500,000 in the Debt Service Fund; and $139,661 in
the Reappraisal Reserve Fund
Anticipated unassigned fund balance of 13.5% at June 30, 2020
General Fund Expenditures:
Percentage breakdown: Education: 27.6%; Education debt: 13.0%; Debt service: 5.5%;
General government: 12.9%; Economic and physical development: 0.3%; Human services:
17.8%; Public safety: 22.5%; and Transfers: 0.4%
New Hanover County Schools (NHCS):
Current expense: $2,913 per pupil (based on mid-year revisions):
Maintains average daily membership (ADM) rate at current level
$80.3 million total (3.7% reduction)
Capital: $1.6 million
Pre-k expansion: $487,422
Appropriated by Purpose and Function: $ and FTEs to be provided at this level of detail
Transfers between Purpose/Function of 10% or greater will require Board approval:
PurposeFunctions
Instructional ServicesRegular Instructional Services; Special Populations Services;
Alternative Programs and Services; School Leadership Services;
Co-Curricular Services; School-Based Support Services
System-wide Support Support and Development Services; Special Population Support
Servicesand Development Services; Alternative Programs and Services
Support and Development Services; Technology Support
Services; Operational Support Services; Financial and Human
Resource Services; Accountability Services; System-wide Pupil
Support Services; Policy, Leadership and Public Relations Services
Ancillary ServicesNutrition Services
Non-programmed Charter Schools; Scholarships
Charges
Capital Outlay
--------
Other Restricted
----------
Revenue (Pre-K Grant)
In response to Board questions, County Manager Coudriet stated the law has not changed since 2011
where a county had to have a local bill to appropriate to a school system based on purpose and function. While the
statute reads 25%, if the County chooses in its budget ordinance to specify 10%, the legal reading of the statute
has allowed that to be done. That is a slight difference in that it is now understood if it is included in the budget
ordinance, the threshold can be lowered from 25% to 10%. That is the subtle change that has happened. All units
of local government that fund school systems, counties, can appropriate to purpose and function. It does give the
County more visibility in terms of partnership with the school system to have more sight on where the money goes
and when the school system chooses to add in a full time position paid for out of the County funds. County staff
feels this is a good step forward and it has been very clear with the school system staff, they expected it, and
helped work out this particular approach. The Board of Education should be aware as well, because County staff
has communicated extensively with the school system staff.
In response to Board questions about part of the $2,913 ADM being for basic adjustments that were
necessary as it relates to local position funded pay raises, County Manager Coudriet stated that was money the
school system has been able to absorb. It did not have to apply state raises to the amount expected to the locally
funded school system. The County is never responsible for raises to the state funded positions. The share that the
County provided to match the state raises for the positions paid by the state, those raises did not come to fruition.
That is found money, so to speak, by the school system. Budget Officer Sheryl Kelly stated she concurs with County
Manager Coudriet’s response. There was approximately $330,000 remaining as a result of the state pay raises not
going into effect. As the County did not appropriate by purpose and function this current fiscal year, the school
system had full latitude as to how to repurpose the funds. She confirmed the amount “in play” is $330,000. As to
whether or not with purpose and function going forward if the County would be able to recapture that money if a
similar situation continues, Ms. Kelly stated the County would be able to recapture that money unless the school
system chose to spend it within that same function. The County does not have discretion over line item
expenditures per the statute. If the school system chose to spend the $330,000 outside of a function for which it
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 531
was budgeted, it would need to come to the Commissioners for approval. As to whether the $330,000 will be used
for this year, Ms. Kelly stated the County has not yet received the school system’s submission by purpose and
function. By the time the Board considers approving the budget, the County will have an idea of how the funds will
be allocated.
As to whether the school system knew if the state budget was not going to be in play at the time when it
requested a budget amendment to buyout Dr. Markley’s contract and if it had already spent the $330,000, County
Manager Coudriet stated in his opinion certainly the school system would have been aware of the state raises not
taking effect to the scale that had been imagined. Nonetheless, the County was asked and staff recommended to
the Board to support the cost of separation.
A brief discussion was held about possibly adjusting the ADM down and calling back the unused money.
Commissioner White stated while he understands the $330,000 went into the school system’s fund balance and
how that works, Commissioner Zapple raised a good point that if the funds are not called back, it stays there
forever. He is not opposed to suggesting the County’s ADM be lower than $2,913 to callback some or all of it.
Commissioner Barfield stated the County staff should have known the dollars were not being expended for an
increase in salaries for the positions the County pays for. The recommendation possibly should have been shifting
that difference given to the school system towards buying out Dr. Markley’s contract and the other dollars that
were expended. He would assume there will be some realized financial gains this school year,although they do
have static calls with operational things, with school being out. He would like to know how does the County have
accountability for those dollars as he does not want to see the dollars being absorbed into the school system
budget when everyone is facing the same challenges right now. Commissioner White stated to piggyback on what
Commissioner Barfield stated, if he is remembering correctly for the years 2009 to 2012, three budget years, the
non-debt appropriation to the school system was static at about $61.9 million. Beginning with budget year 2012-
13 and continuing to this year’s budget, the non-debt appropriation has gone from $61.9 million to $80.3 million
which is a 22% increase when the population has only gown four to five percent in terms of public school children
and has now dipped down. That perspective is important when we are in a year where COVID has hit us and it is
thought sales tax is going to grow by 4% when it has consistently grown 10% to 12% to 15%, and even higher some
years. Four percent he thinks is aggressive, but he is comfortable with that on the sales tax side. As Commissioner
Barfield stated, there are going to be realized savings in day to day school system operations. The County knows of
$330,000 that was essentially prepaid and through amending a budget to appropriate an additional $358,000. The
school system budget just by those two numbers alone is in excess of $600,000+ that the County needs to get
back. He does not think in a year like this it would offend anyone’s sensibilities to suggest that the ADM be moved
downward. It is necessary to maintain more of a fund balance and do other things that need to be done in the
budget. The decision does not have to be made today, but he would support looking at that.
County Manager Coudriet stated he does not know the number, but suspects that Ms. Kelly can tell the
Board what the ADM would be if you subtracted out prepaying for raises that in effect did not happen. Ms. Kelly
stated it would be $2,901. Commissioner Zapple stated at a basic and philosophical level on this, he would like to
get what he is paying for. As stated by Commissioner White, thinking of the tax dollars it comes from someone and
that someone is our taxpayers. He also shares Commissioner White’s opinion that the sales tax rate at 4% is
aggressive for this year, particularly when it is being heard across the state that there is a need to be careful with
every expenditure. Certainly this applies in cases where the County has been asked to provide money and the
money is not spent for a particular expenditure. Those funds are needed back, like any family would need the
funds back.
County Manager Coudriet stated he thinks he is hearing consensus building amongst the Board to reset
the ADM to $2,901. Vice-Chair Kusek stated this discussion was held last year with the school system over a
number of issues about trying to be a little wiser with the spending, etc. It is being seen again how this has not
happened and she would like to make the motion now to reset the ADM to $2,901 as we go forward with the
budget because it is not fair to our taxpayers.
Motion: Commissioner Kusek MOVED to reset the average daily membership (ADM) rate funding from $2,913 to
$2,901 for the Fiscal Year 2020-2021 budget.
Commissioner White stated that this has been an ongoing thing and it has always concluded every budget
year in agreement, whether both parties have been happy or not. Also, this County has never gone through the
statutory process of arbitration and the adversarial process that the law allows school systems to initiate in the
court system. He remembers years where the County was struggling with new debt coming on the books and
balancing the budget. When it would be suggested to cut the rate of growth, the Board would be met with an
onslaught of all the school system positions that would have to be cut and would be told the County is not paying
and not doing enough to support the schools when everyone knew without purpose and function. Without more
transparency of where the dollars were going, the County was at the mercy of the narrative that was promulgated
by some in the school system. We are not there anymore because it is impossible to argue that this Board for eight
years, has not done everything in its power to give every penny to the local schools that it could afford to give with
a 20%+ increase in operations and a less than 6% rate of growth. Any rational person looking at those numbers will
understand that our commitment to education has been sustained and the promises have been kept unanimously
for the most part by this Board. He is saying all of that to get ahead of this narrative that he thinks might come of,
“Well, we're going to have to shut the lights off at the baseball field at eight o'clock because we can't afford to pay
the light bill.” He hopes we can get ahead of that and that the interim superintendent will understand and look at
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 532
some of that history. He feels strongly, as he thinks all do, that $2,901 still assumes that we have a 4% growth in
the sales tax, it still lowers the fund balance to 13.9%, and he is comfortable with that for all the reasons that have
already been stated. However, he is not sure that the County should not be more aggressive in how it allocates its
ADM funding/per pupil funding.
County Manager Coudriet stated, in looking at slide 13, to point out what the Board is saying, the $112.3
million has been reached over five fiscal years and represents a 20% growth in direct support of the k-12 system,
both in ADM as well as capital:
Debt service: $29.9 million
Total appropriation: $112.3 million
Approximately one-third of General Fund budget
Chair Olson-Boseman stated she would second Vice-Chair Kusek’s motion.
Motion: Vice-Chair Kusek MOVED, SECONDED by Chair Olson-Boseman to reset the average daily membership
(ADM) rate funding from $2,913 to $2,901 for the Fiscal Year 2020-budget. Upon vote by roll call, the MOTION
CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
County Manager Coudriet continued with the presentation stating that even with the reduction the $93.2
million to $112.3 million ($2,600 to $2,913) represents a 12% growth just in ADM funding over a five-year period:
Historical Total School Funding Comparison (including operating, capital, pre-k, and debt
service):
FY15-16: $93.2 million; FY16-17: $96.9 million; FY17-18: $99.8 million; FY18-19: $108.3
million; FY19-20 Budgeted: $116.5 million; FY20-21 Recommended: $112.3 million
Historical Funding per Pupil (ADM Rate):
FY15-16: $2,600; FY16-17: $2,660; FY17-18: $2,700; FY18-19: $2,800; FY19-20: $2,913;
FY20-21 Recommended: $2,913
Historical School ADM Comparison:
FY15-16: 26,961 (NHCS: 26,087; Charter and Virtual Charter Schools: 874)
FY16-17: 27,389 (NHCS: 26,287; Charter and Virtual Charter Schools: 1,102)
FY17-18: 27,857 (NHCS: 26,213; Charter and Virtual Charter Schools: 1,644)
FY18-19: 27,818 (NHCS: 25,822; Charter and Virtual Charter Schools: 1,996)
FY19-20: 27,352 (NHCS: 25,807; Charter and Virtual Charter Schools: 1,545)
FY20-21 Projected: 27,547 (NHCS: 26,002; Charter and Virtual Charter Schools: 1,545)
Cape Fear Community College:
Operating: $10.6 million
Capital: $0 requested/recommended
Debt service: $14 million
Total: $24.6 million
General Fund Enhancements:
Automated dispatch system for 911 Communications: $178,600
Deployment of customer centric platform for case management in Economic Services:
$505,000
Echo Farms pool operations: $50,000
Non-County Agencies – Human Services:
Non-County Agency Funding Committee Recommendation (not a county staff
recommendation): $735,000 for 33 agencies and 37 programs
$240,000 for the Social Impact Fund pilot (focuses on substance use, early childhood
education, and on workforce development)
Additional $235,000 for seven programs that transitioned to vendor status in the current
year
Economic Development:
• $144,457: Wilmington Regional Film Commission and Cucalorus Film Foundation
$205,949: Wilmington Business Development
$42,250: Wilmington Downtown, Inc.
$18,240: Southeastern Economic Development Commission
$20,000: Southeastern Partnership
$14,300: Friends of Fort Fisher, Highway 17/64 Association, Arts Council
$70,000: Incentive payment for National Gypsum
Capital Planning:
Five-year Capital Improvement Plan for General Fund:
$1.4 million for FY20-21: $1.1 million in grant funds and $273,000 in County funds for
Parks projects
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 533
Capital Outlay for General Fund:
$2.9 million
Includes capital contribution to public schools
Environmental Management:
$48 per ton tip fee (no change)
Capital projects: $9.6 million
Capital outlay: $1.5 million (equipment replacement)
Environmental Management Tipping Fee:
FY14-15: $55; FY15-16: $52; FY16-17: $50; FY17-18: $48; FY18-19: $48; FY19-20: $48;
FY20-21 Recommended: $48
Fire Services:
Revenues: 7.75 cents per $100 of value (unchanged)
$50,000 contribution for traffic pre-emption project
Capital: $300,000 for Gordon Road land purchase
Capital outlay: $949,744 (equipment, fire engine replacement)
Stormwater Services:
Stormwater Services fee deferred to FY21-22:
Annual residential fee of $67.80 ($5.65 per month)
Capital:
Military Cutoff culvert: $368,185
Maintenance projects: $140,000
Personnel:
Five new positions recommended for the General Fund:
Five Social Worker positions in Health and Human Services to meet the County’s
workload standards for Child Welfare and Child Protective Services
Market: Greater of 1.3% or $696
$1.5 million salary lag
Additional $1.7 million for employer contribution to Local Government Employees’
Retirement System (18.2% increase)
FY20-21 Recommended Budget in Summary:
Sustains the Board’s stated strategic priorities of Superior Education and Workforce,
Superior Public Health and Safety and Intelligent Growth and Economic Development
Fully funds prior obligations and policy commitments
Demonstrates fiscal responsibility
Maintains services, ad valorem rates and tipping fees
Next Steps:
Public hearing scheduled for Monday, June 1
Budget adoption recommended for Monday, June 15
In response to Board questions regarding if the mental health court is included in the budget, what
progress has been made with Cape Fear Collective and churches to provide rides to grocery stores for people who
need it, the status of the five-year master senior plan and what additional resources are being allocated to the
Senior Center for the meals on wheels and para-transport programs at locations around the County, and why the
County gives money to the City of Wilmington for the red light program, County Manager Coudriet stated the red
light program is administered through the City of Wilmington and the County has a contract with them to put it in
place. The revenues come to the County and are ultimately shared with the school system. There is a contractual
cost to implement the red light program. As it relates to the five-year senior master plan, there is money proposed
in the CARES project, which is part of the $50,000. Senior Resource Director Amber Smith also has some funds built
into the department’s continuation budget to do a plan and it is believed there will be the ability to deliver more
meals over the course of this year through the increase in staff in the $50,000. As it relates to the mental health
court, it is his understanding that the County is proceeding with that. However, he is not sure if there was a specific
allocation of money that was necessary to do that, or if the County was able to do it with the existing staff and
resources. He does know it has been a priority and the courts have consented to let that proceed. Ms. Kelly stated
the County does not currently have a new line item for the mental health court for next year. County Manager
Coudriet stated staff will look into it and will verify that no additional money is needed for it because there are
staff assigned across a number of treatment courts, with mental health court being done on different days, so
there is staff capacity. As it relates to Cape Fear Collective, the organization has taken on the responsibility to put a
program together, but that has not come back yet. The organization has been very involved in COVID-19 and
working on the sheltering program for our homeless population. It has not been forgotten, the organization agreed
to take the lead on it, and the County is looking forward to continuing to partner with them.
As it relates to page 15 of the recommended budget pamphlet for the position summary by function and
the increase of 22 positions rather than the five positions referenced in the presentation, County Manager
Coudriet stated he will defer to Ms. Kelly for the answer, but he does know that the County has had positions over
the course of time that have been authorized but are vacant or unfunded. Ms. Kelly stated in the current fiscal year
as a result of the consolidation of Health and Human Services, there were positions transferred over from Finance
to support that new consolidated function. Also, several positions were moved out of Health and Human Services
over to General Government, for example, in IT, Human Resources, and Strategy. The net of those changes are the
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 534
15 positions that are seen in the recommended budget. She reconfirmed that only five new positions were being
added and this is the impact.
In response to Board questions about fund balance percentage, Chief Financial Officer Lisa Wurtzbacher
explained that 13.5% of fund balance equates to approximately $45 million in unassigned fund balance. There are
other categories of fund balance, but that does not mean that is all the cash the County will have on hand.
Commissioner Barfield stated he would like for the Board to consider keeping the Wilmington’s
Residential Adolescent Achievement Place (WRAAP) and One Love Tennis programs at the funding levels of last
year. Otherwise, he thinks he is okay with what he sees in the recommended budget. Commissioner Zapple stated
he knows there are several non-county agencies that are under discussion and he shares Commissioner Barfield’s
support for the two programs mentioned.
Commissioner White stated he would like to make a motion just to give guidance, and if there is
consensus that is fine, that the 1.3% market increase not be applied to Commissioner salaries. As it relates to
Commissioner Barfield’s comments about non-county agency funding for WRAAP and One Love Tennis, he
understands his position and respects it. Commissioners have gone back and forth for many years about all kinds
of things on that list. He thinks the deeper the root system the committee puts in place; better quality outcomes
will be seen as well as purer stewardship of taxpayer dollars. The Board really should respect the committee that
has been assembled and he respectfully does not support any changes to the non-county agencies funding.
Chair Olson-Boseman thanked County Manager Coudriet for the presentation.
COMMITTEE APPOINTMENTS
Appointment to the Lower Cape Fear Water and Sewer Authority
Chair Olson-Boseman reported that one vacancy exists on the Lower Cape Fear Water and Sewer
Authority with two applications available for consideration.
Vice-Chair Kusek nominated Harry M. Knight for appointment. Commissioner White seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman called for a vote on the nominations on the floor.
Motion: Vice-Chair Kusek MOVED, SECONDED by Commissioner White to appoint Harry M. Knight to the Lower
Cape Fear Water and Sewer Authority to serve a three-year term with the term expiring May 31, 2023. Upon vote
by roll call, the MOTION CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
Appointment to the New Hanover County Adult Care Home Community Advisory Committee
Chair Olson-Boseman reported that up to nine vacancies exist on the New Hanover County Adult Care
Home Community Advisory Committee with two applications available for consideration.
Commissioner Zapple nominated Sandra Oglesby for reappointment and Islah Speller for appointment.
Chair Olson-Boseman seconded the nominations.
Hearing no further nominations, Chair Olson-Boseman called for a vote on the nominations on the floor.
Motion: Commissioner Zapple MOVED, SECONDED by Chair Olson-Boseman to reappoint Sandra Oglesby to serve
a three-year term with the term to expire March 31, 2023 and to appoint Islah Speller to serve an initial term with
the term expiring March 31, 2021 to the New Hanover County Adult Care Home Community Advisory Committee.
Upon vote by roll call, the MOTION CARRIED:
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
Appointment to the Parks Conservancy of New Hanover County Inc. Board of Directors
Chair Olson-Boseman reported that one vacancy exists on the Parks Conservancy of New Hanover County
Inc. Board of Directors with one application available for consideration.
Commissioner Zapple nominated Tony Pagrabs for appointment. Chair Olson-Boseman seconded the
nomination.
Hearing no further nominations, Chair Olson-Boseman called for a vote on the nomination on the floor.
Motion: Commissioner Zapple MOVED, SECONDED by Chair Olson-Boseman to appoint Tony Pagrabs to the Parks
Conservancy of New Hanover County Inc. Board of Directors to serve an unexpired term with the term expiring
June 30, 2021. Upon vote by roll call, the MOTION CARRIED:
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 535
Voting Aye: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner Barfield; Commissioner White; and
Commissioner Zapple.
Appointments to the Southeastern Economic Development Commission
Chair Olson-Boseman reported that two vacancies exist on the Southeastern Economic Development
Commission with one applicant eligible for reappointment and four applications available for consideration.
Vice-Chair Kusek nominated Tony Harrington and Randy Reeves. Chair Olson-Boseman seconded the
nominations.
Commissioner Zapple nominated W. Randall Johnson for reappointment. Commissioner Barfield seconded
the nomination.
Hearing no further nominations, Chair Olson-Boseman called for a vote on the nominations on the floor.
Vote Results by Roll Call:
Voting Aye for the nomination of Tony Harrington: Chair Olson-Boseman; Vice-Chair Kusek; Commissioner
Barfield; Commissioner White; and Commissioner Zapple.
Voting Aye for the nomination of Randy Reeves: Chair Olson-Boseman; Vice-Chair Kusek; and
Commissioner White. Voting Nay for the nomination of Randy Reeves: Commissioner Barfield and Commissioner
Zapple.
Voting Aye for the nomination of W. Randall Johnson: Commissioner Barfield and Commissioner Zapple.
Voting Nay for the nomination of W. Randall Johnson: Chair Olson-Boseman; Vice-Chair Kusek; and Commissioner
White.
Chair Olson-Boseman stated that based on the roll call vote on the nominations on the floor, Tony
Harrington was appointed by unanimous vote and will serve as the executive committee representative and Randy
Reeves was appointed by a majority vote to the Southeastern Economic Development Commission to serve four-
year terms with the terms expiring April 30, 2024.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Chair Olson-Boseman reported that there are no public comments.
ADDITIONAL AGENDA ITEMS OF BUSINESS
Chair Olson-Boseman expressed appreciation to County staff for helping to make today’s meeting possible
in both an in-person and virtual format. Our employees have been incredibly flexible throughout the past few
months, to help us ensure our County operations and business can continue, while also keeping our community
safe. She cannot say enough about their efforts, and she continues to be incredibly impressed and grateful for all
of our employees. They are true public servants and our community is lucky to have them.
th
Our Emergency Operations Center is now in its 50 day of operation with staff from Emergency
Management, Public Health, Communications and Outreach, County Management, Fire Rescue, Sheriff’s Office,
Finance, and more working daily and focused on keeping every single one of us as safe and healthy as possible.
They have answered our community’s calls, provided resources, information and help, expanded testing so that
anyone in our community who needs a COVID-19 test can get one, and so much more.
In our expanded diagnostic testing effort to-date, there have been 544 tests conducted by Public Health
with 30 coming back positive, 358 negative, and 156 still pending. This initiative gives us better visibility on the
virus so we can enhance our contact tracing efforts and is so important as our community and businesses reopen.
We are providing these tests at no cost and insurance is not required, so it is giving everyone a chance to be tested
who needs it. Anyone in our community who is experiencing symptoms should call our Coronavirus Call Center at
910-798-6800. To date, there have been a total of 136 people who have tested positive for COVID-19 in New
Hanover County; of those, 73 have recovered and we have sadly had three deaths. COVID-19 ranges in symptoms
from mild to extremely severe, and as a mom of a child in the vulnerable population it is her worst nightmare for
him to be put on a ventilator. Her mother is 90 and also vulnerable, as is her wife Angie. They have been isolated
this entire time, and she encourages anyone who is more vulnerable to continue to stay home and away from
others. She also wants to remind those who are not taking any precautions because they do not feel worried or are
not as vulnerable to please think about others and do what they can to help stop the spread of this virus.
She further stated that she wants our community and businesses to reopen safely, and the way we can do
that is if we all take responsibility for our actions. She requested for citizens to please continue to stay six feet from
others, wear a mask when unable to distance from others in public, and for citizens to wash their hands well and
often. If these steps continue while the doors of businesses open, citizens will be protecting people like her son,
mom, and wife as well as protecting themselves and their families. She expressed appreciation for everyone in our
community who has followed that guidance, so that our impact from this virus has been manageable. Let’s
continue fighting this together and working together.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 34
REGULAR MEETING, MAY 18, 2020 PAGE 536
Chair Olson-Boseman concluded her comments stating that now more than ever, like Commissioner
Barfield said, we have to put a stop to the hate crimes, racial discrimination, and vigilante justice that continues to
happen right in our backyard, and all over the country. The senseless killing of Ahmaud Arbery is appalling, and she
stands with him, his family, friends, and all others who want more for this world and who will not tolerate
discrimination and hate any longer. She asked for everyone to please be kind, tolerant, and supportive of one
another. Let’s build each other up, encourage one another, and see each person for who they are, not what their
skin color is.
ADJOURNMENT
There being no further business, Chair Olson-Boseman adjourned the meeting at 12:07 p.m.
Respectfully submitted,
Kymberleigh G. Crowell
Clerk to the Board
Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners
meeting. The entire proceedings are available for review and checkout at all New Hanover County Libraries and
online at www.nhcgov.com.