HomeMy WebLinkAbout2003-02-17 Regular Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 504
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular Session on Monday, February 17, 2003,
at 9:00 a.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North
Carolina.
Members present were: Chairman Ted Davis, Jr; Vice-Chairman Robert G. Greer; Commissioner Julia
Boseman; Commissioner William A. Caster; Commissioner Nancy H. Pritchett; County Manager, Allen O’Neal;
County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell.
Chairman Davis called the meeting to order and welcomed everyone present. He requested persons with cell
phones or pagers to cut off the equipment to prevent being disruptive during presentations and deliberations by the
Board of County Commissioners.
INVOCATION AND PLEDGE OF ALLEGIANCE
Director of Human Relations, Carl Byrd, Sr., gave the invocation.
Vice-Chairman Greer spoke on the need to remember the men and women of the armed forces at this special
time in the history of our country, and he requested the members of audience to turn and face the flag for the Pledge
of Allegiance.
Chairman Davis expressed appreciation to Human Relations Director Byrd for his prayer and to Vice-
Chairman Greer for remembering the members of the armed forces, who are deployed abroad and prepared to defend
and protect our freedom.
APPROVAL OF CONSENT AGENDA
Chairman Davis asked if any member of the Board would like to discuss or remove an item from the Consent
Agenda.
Commissioner Pritchett requested further discussion of Items 4, 7 and 9.
Hearing no further comments, Chairman Davis requested discussion of Consent Agenda Item 4.
Commissioner Pritchett advised that Consent Item 4 was a proclamation proclaiming March 2003 as Women’s
History Month in New Hanover County and she asked if the proclamation should be read and presented to a specific
person.
County Manager O’Neal responded that no one was present to receive the proclamation.
In further discussion of the importance of the proclamation, Commissioner Pritchett read the proclamation
designating March 2003 as Women’s History Month in New Hanover County into the record.
Chairman Davis requested discussion of Consent Agenda Item 7.
Commissioner Pritchett spoke on the sale of an old pumper fire truck by the County to the Old Dock/Cypress
Creek Volunteer Fire Department in the amount of $2,000 and reported that the New Hanover Fire Commission voted
to place this money into a separate account to be set aside to purchase a new fire truck in the future. She advised that
discussion was held with Finance Director Bruce Shell who did not have a problem with establishing a special account
for this purpose.
Chairman Davis requested discussion of Consent Agenda Item 9.
Commissioner Pritchett spoke on Item 9 being deaccession of an object from the Cape Fear Museum
Collection and she requested Museum Director Ruth Haas to speak on this item.
Museum Director Haas advised that persons visiting the Museum had shown a considerable amount of interest
in the exhibit where a box was displayed containing a bomb from World War II. This box is the property of Mr. R.
Theodore Davis, Sr. who saved this object as souvenir of his war years while serving in the United States Army in
Germany during World War II.
Museum Director Haas advised that a request has been made by Chairman Ted Davis, Jr. to return the box
to the family.
Chairman Davis stated that since his father will be 89 years old in March, he had requested the Museum to
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return the box to him for safe-keeping. He advised that when his father was a Major in the 95 Division of the United
States Army in Germany during World War II, the troops stayed inside an old railroad station. On one occasion, his
father was checking the building and surroundings for security purposes and found a box in a garbage can. The box
contained a unique detonating bomb with a timing device on one end and a long cylinder with a stick of dynamite on
the other end surrounded by explosives that would have destroyed the entire building. He stated that if the bomb had
exploded, his father and family would not be here today.
He expressed appreciation to Director Haas and the Museum Board of Trustees for graciously returning the
box to the family and stated that if the Museum would like to use the box in a future exhibit, he would be glad to lend
it to the Museum.
After hearing no further comments, Chairman Davis called for a motion to approve the items on the Consent
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 505
Agenda.
Commissioner Boseman requested removal of Item 6 for a separate vote.
Motion:
Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to remove Item 6 and approve the
remaining items on the Consent Agenda. Upon vote, the MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA
Approval of Minutes
The Commissioners approved the minutes of the Regular Meeting held on February 3, 2003, as presented by
the Clerk to the Board.
Authorization for the Engineering Department to Submit an Application for the National Pollutant Discharge
Elimination System (NPDES) Phase II Stormwater Management Permit
The Commissioners authorized the Engineering Department to submit an application for the NPDES Phase
II Stormwater Management Permit in compliance with temporary regulations adopted by the State in October, 2002.
This application is required because the County owns and operates Municipal Separate Storm Sewer Systems (MS4s)
for drainage as part of the Parks system. Permanent regulations will be considered by the State later this year.
Assistant County Manager Dave Weaver was authorized to submit the application and implement the permit
once it is received.
Adoption of FY 2003-2004 County Budget Programmatic Goals
The Commissioners adopted FY 2003-2004 Programmatic Goals as presented by Budget Director Cam
Griffin. The Government Finance Officers Association and the National Advisory on State and Local Budgeting
recommend adoption of programmatic goals.
Adoption of Proclamation Designating March 2003 as “Women’s History Month” in New Hanover County
The Commissioners adopted a proclamation designating March 2003 as Women’s History Month in New
Hanover County.
A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.6.
Adoption of Resolution Approving Renewal of Contract #97-0205 with Motorola for the Purchase, Delivery and
Installation of 800 MHZ Radio Equipment on an As-Needed Basis
The Commissioners adopted a resolution approving renewal of Contract #97-0205 with Motorola as the sole
source supplier pursuant to N.C.G.S. 143-129(f) covering the purchase, delivery and installation of 800 MHZ radio
equipment on an as-needed basis. The County Manager was authorized to execute the contract documents.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.7.
A copy of the contract is on file in the Legal Department.
Adoption of Resolution and Approval of Budget Amendment #03-0126 to Dispose of a 1977 Ford Pierce Pumper
Through a Private Sale to Old Dock/Cypress Creek Volunteer Fire Department
The Commissioners adopted a resolution and approved the associated budget amendment to dispose of a 1977
Ford Pierce Pumper, Vehicle Identification # D80DVY92229, through a private sale pursuant to N.C.G.S. 160A-267
to Old Dock/Cypress Creek Volunteer Fire Department in the amount $2,000. The funds received from the sale are
to be placed in a separate account set aside for the Fire Service to purchase a new fire truck in the future.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.8.
Budget Amendment #03-0126-Special Fire Services District
Adjustment Debit Credit
Other$2,000
Motor Vehicle Purchases $2,000
Explanation: To budget proceeds from the sale of a 1979 Ford Pierce Pumper.
Approval of Fee Policy for Child Safety Seats Through New Hanover County Health Department
The Commissioners approved implementation of a new fee policy for issuing Child Safety Seats through the
Health Department’s Risk Reduction/Injury Prevention Program operated with a grant from N. C. SAFE KIDS and
the N. C. Governor’s Highway Safety Program. In order to provide a child safety seat to more children, a $10 co-pay
will be required from each recipient whose parent is on at least one type of public assistance. A co-pay of $40 will be
charged for a child on some type of assistance where the parent does not receive assistance. Revenue earned will be
used to purchase additional child safety seats to serve more children.
Approval of Deaccession of a WWII German J-Feder 504 Long Delay Igniter by Cape Fear Museum to the
Donor
The Commissioners approved deaccession of a World War II German J-Feder 504 Long Delay Igniter as
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 506
requested by the Cape Fear Museum to be returned its donor, Mr. R. Theodore Davis, Sr. and his family.
Approval of Conservation Easement Option Agreement with the State of North Carolina to Allow the N. C.
Wetlands Restoration Program to Acquire Easements
The Commissioners approved a Conservation Easement Option Agreement between New Hanover County
and the State of North Carolina which will allow the N. C. Wetlands Restoration
Program to acquire easements for Best Management Practice projects identified by the Local Watershed Planning
Initiative. The Chairman was authorized to execute the agreement.
Since September 2002, the Local Watershed Planning Initiative has participated in developing a plan to
improve water quality, protect habitat, reduce flood damages, and guide growth and development in the Prince George
and upper Smith Creek watersheds. The group has developed a plan to apply stream restoration and bank stabilization
for a parcel of land located behind Laney High School, a parcel near the Juvenile Detention Facility, and parcels on
Candlewood Road that were purchased by the County through the Hazard Mitigation Grant Program. These projects
will reduce erosion while preserving habitat along stream banks and better control flooding during heavy rain events.
A copy of the agreement is on file in the Legal Department.
Approval of Budget Amendment #03-0125 to Budget Proceeds from the Fall Friends of the Library Book Sale
The Commissioners approved the following budget amendment:
Budget Amendment #03-0125-Library
AdjustmentDebit Credit
Contributions$11,598
Partnership For Children:$3,000
Books & Periodicals 8,598
Explanation: To budget proceeds from the Friends of the Library fall sale. Proceeds will be used to purchase
library materials for adults and children.
Authorization for the Library to File an Application for an Infrastructure Grant from Library Services and
Technology Act (LSTA) Funds to Change Internet Service Provider
The Commissioners authorized the Library to submit an Infrastructure Grant from the Library Services and
Technology Act Funds. As recommended by the IT Department, the Library will use funds in an amount not to exceed
$45,000 to install a new server to protect County applications from viruses which can be downloaded from infected
websites. In addition, the Library and its branches will follow the recommendation of the IT Department to use Time
Warner instead of Bell South for the internet connection, which will save approximately $2,000 per year.
If the grant is awarded, the County Manager was authorized to accept the grant and approve the associated
budget amendment.
Authorization for the Library to File an EZ-LSTA Basic Equipment Grant from Library Services and
Technology Act (LSTA) Funds
The Commissioners authorized the Library to file an application for an EZ-LSTA Basic Equipment Grant
from Library Services and Technology Act funds in the amount of $15,169.76 to provide 14 PC’s for use by the public
at the Main Library to access the Internet and library electronic resources. The County match of $2,677.02 is in the
Library supplies budget.
Approval of Change in the New Hanover County Library Advisory Board By-Laws
The Commissioners approved the following change in Section 2 of the Library Advisory Board By-Laws:
New Language:
Section 2. Officers shall be elected at the regular meeting of the Board in the month of September and shall
serve a term of one year.
Old Language:
Section 2: Officers shall be elected at the regular meeting of the Board in the month of June, take office in
August, and shall serve a term of one year.
The amended By-Laws are on file at the Main Library.
Approval for Advertisement of Tax Liens on Real Property
The Commissioners approved advertisement of tax liens for all delinquent 2002 real estate accounts not paid
by 5:00 p.m. on March 24, 2003, to be published in the Wilmington Morning Star on April 2, 2003.
Approval for Release of Taxes Barred by N.C.G.S. 105-378
The Commissioners approved release of taxes from 1992 barred by N. C. General Statute 105-378, which does
not allow forced collection of taxes after ten years from the date due:
New Hanover County $ 193,580.09
Fire District $ 3,411.37
City of Wilmington $ 59,389.16
City of Wilmington License Tax $ 11,749.36
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 507
Wrightsville Beach $ 3,619.90
Carolina Beach $ 5,431.29
Kure Beach $ 497.02
Total $ 277,678.19
These uncollected amounts are .43% of the combined tax levies for the County and the municipalities charged
in 1992 in the amount of $63,746,888.90.
Release of Values - Tax Department
The Commissioners released late listing penalties for the following taxpayers since it was their first offense,
or they certified that the tax listing was mailed during the regular listing period:
Franklin, Samuel C. & Louise $ 103.99
Herbs BP $ 13.57
Holland, Thomas Christopher $ 10.58
John Boles Electrical $ 86.08
Kirchner, Donald E. $ 9.78
Mandal Plastic Surgery $ 23.20
Marks, Richard C. & Bernadette F. $ 12.84
Rayms Rib Chicken & Bar B Que $ 87.00
Recoulley, Monty R & Y LLC $ 236.06
Thorburn, Linda A. $ 15.21
Thornton, William J. $ 492.68
Weatherspoon, Van L. $ 6.18
The Commissioners approved Senior Citizen/Disability Exclusions for the following taxpayers:
Brown, Garland L. $87,777
Bynon, Elsie, A. $46,946
Gregory, Mildred L. $27,082
McCartney, Betsy R. $37,527
Nash, Charles E. Jr. & Doris L. $40,416
Philip, Roy $37,430
Tobey, Alice Katherine $ 1,050
The Commissioners approved delinquent applications for exemption from the property tax for the following
organization:
Louise W. Cameron Art Museum, RO5405-017-006-001, RO5405-017-007-000, RO5405-017-006-000.
Acceptance of Tax Collection Reports through January 31, 2003
The Commissioners accepted the following Tax Collection Reports through January 31, 2003, as submitted
by the Collector of the Revenue, Patricia J. Raynor:
New Hanover County
New Hanover County Fire District
Copies of the Tax Collection Reports are hereby incorporated as a part of the minutes and are contained in
Exhibit Book XXVIII, Page 7.9.
Approval of Budget Amendment #03-0118-Juvenile Justice Delinquency Program
The Commissioners approved the following budget amendment:
Budget Amendment #03-0118-Juvenile Justice Delinquency Program
Adjustment Debit Credit
Juvenile Justice Del. Program $ 7,503
In-Home Therapy 22,497
Teen Court $30,000
Explanation: To adjust the budget for reduction in funding for the In-Home Therapy Program provided by
Southeastern Mental Health and increase funding for the Teen Court provided by the Community Mediation
Center. The net increase in funding is $7,503.
Approval of Budget Amendment#03-0124-Social Services-Crisis Intervention Program
The Commissioners approved the following budget amendment:
Budget Amendment #03-0124-Social Services-Crisis Intervention Program
Adjustment Debit Credit
DSS Administrative Grants$83,849
DSS Assistance Payments $83,849
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REGULAR MEETING, FEBRUARY 17, 2003 PAGE 508
Explanation: To budget additional State dollars received for the Crisis Prevention Program. No additional
County dollars are required.
Approval of Budget Amendment#2003-26-Controlled Substance Tax for the Sheriff’s Department
The Commissioners approved the following budget amendment:
Budget Amendment #2003-26-Controlled Substance Tax
AdjustmentDebit Credit
Controlled Substance Tax$9,914
Capital Project Expense $9,914
Explanation: To increase budget for additional revenue received 12/19/02 and 2/3/03. Controlled Substance
Tax funds are budgeted as received and must be used for law enforcement activities as deemed necessary by
the Sheriff.
Approval of Budget Amendment#2003-27-Federal Forfeited Property for the Sheriff’s Department
The Commissioners approved the following budget amendment:
Budget Amendment #2003-27-Federal Forfeited Property
Adjustment Debit Credit
Federally Forfeited Property$17,661
Capital Project Expense $17,661
Explanation: To increase the budget for additional revenue received on 12/3/02, 12/23/02, 1/8/03, and
1/21/03. Federal Forfeited Property funds are budgeted as received and must be used for law enforcement
purposes as deemed necessary by the Sheriff.
DISCUSSION AND APPROVAL OF CONSENT AGENDA ITEM 6, RENOVATIONS TO THE AIRLIE
GARDENS COTTAGE
Commissioner Boseman advised that she was not in favor of spending money for renovating a cottage in Airlie
Gardens during a difficult budget year.
Director of Airlie Gardens Thomas Herrera-Mishler reported that the small cottage on the grounds of Airlie
Gardens was no longer occupied. With Staff being housed in the Cooperative Extension Building, which is not a
convenient location, it was decided that the structure could be renovated and converted into office space and a meeting
room for Airlie Gardens. The meeting room could be used by the County or rented to other groups in need of meeting
space.
In closing, Director Herrera-Mishler advised that the bid came in lower than the estimated $100,000 for the
renovation project, and he offered to answer questions.
After hearing no further comments from the Board, Chairman Davis called for a motion.
Motion:
Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to award the low bid to NRL
Builders, Inc. in the amount of $83,082 and authorize the Chairman to execute the necessary contract documents.
Upon vote, the MOTION CARRIED 4 to 1. Commissioner Boseman voted in opposition.
A copy of the contract is on file in the Legal Department.
CONTINUANCE OF ITEM 12, A PUBLIC HEARING TO CONSIDER TEXT AMENDMENTS TO SECTION
102-104 AND SECTION 33 OF THE ZONING ORDINANCE PERTAINING TO DENSITY CALCULATIONS,
PERFORMANCE RESIDENTIAL DEVELOPMENT, AND THE EXPIRATION OF PRELIMINARY SITE
PLANS (CASE A-321)
Chairman Davis announced that Item 12 had been continued until a future date to allow time for the Planning
Board to receive more public input and work with all interested parties before resubmitting the changes to the Board
of County Commissioners.
PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS:
County Manager O’Neal requested the following employees to step forward to receive service awards:
FIVE-YEAR CATEGORY
Charles E. Gore - Sheriff's Department
James A. Maroldt - Sheriff's Department
William C. Engebretsen - Water/Sewer - Engineering
Kathryn A. Bujalski - New Hanover County Library
TEN-YEAR CATEGORY
Harriet C. Page - Department of Social Services
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REGULAR MEETING, FEBRUARY 17, 2003 PAGE 509
On behalf of the Board, Chairman Davis presented service awards to each employee and expressed
appreciation to them for their years of dedicated service.
RECOGNITION OF NEW EMPLOYEES:
County Manager O’Neal requested the following new employees to stand and be recognized:
Rich Richardson - Information Technology
Mandy Hancock - Department of Social Services
DeAnna Lacewell - Department of Social Services
On behalf of the Board, Chairman Davis welcomed these new employees to New Hanover County government
and wished them success in their new positions.
INTRODUCTION OF WRIGHTSVILLE BEACH TOWN MANAGER
County Manager O’Neal stated that it was his pleasure to introduce Ms. Andrea L. Surratt, the new Town
Manager of Wrightsville Beach. He advised that Ms. Surratt was appointed to serve in this position on January 22,
2003, by the Board of Alderman after serving as the Interim Manager. She is a native of North Carolina and received
her Bachelors Degree in Political Science from Guilford College and her Masters in City and Regional Planning from
Clemson University.
On behalf of the Board, Chairman Davis congratulated Ms. Surratt on being appointed Town Manager and
stated that the members of the Board and County Staff are looking forward to working with her on issues of mutual
concern.
Ms. Surratt advised that she was excited about serving as the Town Manager for Wrightsville Beach and stated
she looked forward to working with the Board of County Commissioners.
RECOGNITION OF THE NEW HANOVER COUNTY BOARD OF HEALTH FOR RECEIVING THE
“OUTSTANDING BOARD OF HEALTH AWARD”
County Manager O’Neal recognized the New Hanover County Board of Health for receiving the “Outstanding
Board of Health Award” on January 30, 2003, presented by the Association of North Carolina Boards of Health. He
stated that the New Hanover County Board of Health and the Health Department have consistently been recognized
as one of the best agencies in the State.
On behalf of the Board, Chairman Davis congratulated the members of the Board of Health, Health Director
David Rice, and the Administrative Staff for achieving this special recognition.
CONSIDERATION OF RESOLUTION LEVYING AN ADDITIONAL ONE-HALF PERCENT LOCAL
OPTION SALES TAX EFFECTIVE JULY 1, 2003
County Manager O’Neal reported that in FY 2002-2003, the State completely eliminated local government
reimbursements, which resulted in a decrease in revenue of $4.5 million for New Hanover County. The County used
a one-time source of revenue to replace the funding shortfall during FY 2002-2003. Adoption of a one-half percent
local option sales tax effective July 1, 2003 will be necessary to replace the lost revenue for the FY 2003-2004 and for
future years. Preliminary estimates are that the sales tax will generate $6,100,000 in revenue for FY 2003-2004.
Distribution of proceeds within the State will be based on one-half point of origin and one-half per capita.
The Board of County Commissioners held a Public Hearing on July 8, 2002, and a resolution was adopted to
enable New Hanover County to consider implementing the one-half percent local option sales tax to become effective
July 1, 2003. In order to proceed with implementing the sales tax, a resolution will have to be adopted and forwarded
to the N. C. Secretary of Revenue.
County Manager O’Neal advised that he had contacted the Mayors of the municipalities to attend the meeting
since the Board would be discussing the possibility of implementing the one-half percent local option sales tax. He
stated that Mayor Rothrock was present and would comment on the position taken by the Carolina Beach Town
Council.
Discussion followed on the last date for implementing the sales tax. Budget Director Griffin advised that the
tax could be implemented any time during the fiscal year or in the future with 90 days notice. She advised that one
cent on the property tax for FY 2003-2004 represents approximately $1.7 million. The projected $6.1 million to be
generated by the proposed one-half percent local option sales tax will be equivalent to $3.55 cents on the property tax
rate.
Commissioner Caster referenced the $2,000,000 appropriated for pay raises to County employees and asked
how this amount was determined. He also asked if any money would be appropriated from the fund balance for the
upcoming budget.
Budget Director Griffin responded that the $2,000,000 appropriation for salaries would provide a 5 percent pay
increase based upon performance. She also advised that Staff’s goal for FY 2003-2004 is to maintain the County’s
current fund balance without money withdrawn to balance the budget.
Commissioner Caster commented on receiving an email from a hotel owner who is concerned about having to
charge the current three (3) percent Room Occupancy Tax for beach renourishment, an additional three (3) percent Room
Occupancy Tax for tourism promotion and related tourism issues, the additional one-half percent sales tax enacted by
the State, and now the potential to add another one-half percent local option sales tax in New Hanover County. He urged
the Board to consider the amount of taxes already being charged in the County.
Budget Director Griffin informed the Board that the one-half percent sales tax implemented by the State should
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REGULAR MEETING, FEBRUARY 17, 2003 PAGE 510
sunset July 1, 2003.
Commissioner Caster referenced an article in the newspaper saying that the Governor feels the one-half percent
sales tax should remain in place, which means that it is highly unlikely the tax will sunset July 1, 2003. He emphasized
the importance of everyone understanding that implementing a new ongoing one-half percent local option sales tax will
mean that persons, whether living in New Hanover County or visiting the area, will pay $6,100,000 out of their pockets.
Commissioner Boseman noted that she would not support increasing the property tax and stated that the
Commissioners must decide whether to implement the one-half percent local option sales tax or cut positions and in some
cases eliminate departments. If the State had fulfilled its obligation and reimbursed counties as promised, the County
would not be in this position. If services provided by the County are severely reduced, the bond rating will be negatively
impacted and the citizens will not receive quality services.
Commissioner Pritchett pointed out that implementing the one-half percent local sales tax would benefit the
four municipalities as well as New Hanover County. If the sales tax is not implemented, the City of Wilmington will
lose approximately $2,000,000, Carolina Beach $150,000, Kure Beach $49,600, and Wrightsville Beach $115,500. With
current budget constraints and the one-half percent local option sales tax already implemented in 90 counties, the Board
must consider the benefit of this additional revenue to the County and the four municipalities.
Chairman Davis asked County Attorney Copley if any information had been received on the status of the
Cabarrus County v. Tolson lawsuit regarding State reimbursements.
County Attorney Copley responded that the lawsuit was pending but no recent updates had been received.
Vice-Chairman Greer spoke on the need for additional revenue being the result of action taken when the State
of North Carolina decided not to reimburse local governments for the revenue lost from eliminating intangibles and
inventory taxes. New Hanover County has managed to wait until now to consider implementing the one-half percent
local options sales tax when 90 other counties have already levied the tax. No one wants to increase taxes; however, with
construction of a new jail requiring additional positions, construction of the Judicial expansion, construction of a parking
deck and renovating the library, the time has come to pay for these capital projects. Counties are required by State and
Federal law to provide buildings for the Court System, parking for the jurors, construct jails to adequately house inmates
without overcrowding, and provide other mandated services. If additional revenue is not received, the County will have
to eliminate some functions such as Parks, Human Relations, the Cape Fear Museum, the Senior Center and further
reduce hours of operation for the Library. Positions will also have to be cut in the remaining departments. This action
will produce a government that cannot function to serve its citizens; therefore, he feels that the one-half percent local
options sales tax will have to be implemented for the County to continue provide the quality of life expected by its
citizens.
Chairman Davis expressed appreciation to the members of the Board for their remarks and stated that he felt
Staff had presented a worst case scenario. He stated that during a downturn in the economy, it would be difficult for him
to support levying another one-half percent local option sales tax; however, the action taken by the State of North
Carolina to withhold reimbursements has placed a terrible burden on counties and their taxpayers.
Commissioner Caster asked if the County could decide on how to the use revenue if the one-half percent local
option sales tax is implemented.
County Manager O’Neal explained that the revenue received from the one-half percent local option sales tax
is unrestricted general fund money. The Board can designate how the revenue should be used during the budget process.
Hearing no further comments, Chairman Davis recognized Mr. Ray Rothrock, Mayor of the Town of Carolina
Beach, and asked if he would like to speak.
Mayor Ray Rothrock reported that the Carolina Beach Town Council supports implementation of the one-half
percent local option sales tax. He advised that after discussing this issue with Finance Director Bruce Shell, he learned
that the citizens are already paying almost 7 percent in sales tax because the 6.5 percent sales tax is rounded up instead
of down; therefore, no significant increase will be noticed by the citizens with a one-half percent increase. He stressed
the importance of continuing to provide quality services and salary increases to local government employees and stated
that implementing the one-half percent local option sales tax will assist the County and other municipalities to meet these
goals.
Chairman Davis called for a motion.
Motion:
Vice-Chairman Greer MOVED, SECONDED by Commissioner Boseman, to adopt the resolution to implement
one-half percent local option sales tax effective July 1, 2003.
Substitute Motion:
Commissioner Caster MOVED to adopt the resolution to implement the one-half percent local
option sales tax effective July 1, 2003, with a decrease of two cents in the property tax rate.
Commissioner Boseman requested the Board to consider holding a Budget Work Session to discuss the idea of
reducing the property tax rate by two cents before taking action on the sales tax issue.
Chairman Davis spoke in favor of reducing the property tax rate, but stated without being further into the
budget process, he was not sure it was the appropriate time to take this action.
County Manager O’Neal advised that during the Budget Work Session held on January 9, 2003, the Board
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directed Staff to prepare the FY 2003-2004 budget without increasing the property tax. He explained that a natural
growth occurs in the tax base which is calculated upon the amount of revenue received. Staff has estimated that one
penny on the tax rate will be worth $1,700,000 million in FY 2003-2004. The liability and property insurance for the
County will increase $300,000, health insurance will increase by at least 14 percent, numerous capital projects have been
constructed by the County that will require additional money to operate, the debt service for the schools and other capital
projects has to be paid, the operation of County government is increasing and Medicaid costs are expected to be
significantly higher next year. Staff can prepare a budget without a tax increase; however, the employees deserve a salary
increase because more work is being done by fewer employees and they have not received a salary increase in two years.
Commissioner Pritchett stressed the importance of providing a salary increase to County employees and stated
that competent employees cannot be kept if they are not fairly compensated.
After hearing no second on the Substitute Motion, the MOTION failed.
Amended Substitute Motion:
Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to adopt the
resolution to implement the one-half percent local option sales tax effective July 1, 2003, with the goal to reduce the ad
valorem property tax by two cents during budget discussions.
In further discussion, Commissioner Pritchett asked if the goal to reduce the property tax would be binding on
the Board.
County Attorney Copley explained that a goal was not a binding commitment.
Commissioner Pritchett advised that she would vote in favor of the motion since the goal to cut the property tax
by two cents was not binding.
Upon vote, the MOTION CARRIED 4 to 1. Chairman Davis voted in opposition.
Chairman Davis reported that that when the amended substitute motion was approved, the original motion was
removed from consideration.
Commissioner Caster stressed the importance of carefully reviewing the cost of operating the WASTEC Facility
during the budget process even though it is an enterprise fund. The four municipalities are opposed to allowing this
facility to remain open because it is too costly to operate and has increased trash bills. The Board should look at this issue
because a significant amount of money can be saved.
Commissioner Pritchett responded that since the WASTEC Facility is now an enterprise fund paying its own
way, it should not be relevant to the budget process.
Commissioner Caster responded that citizens are now paying more in trash bills which makes the issue relevant
to the budget process.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.10.
PRESENTATION OF ANNUAL AUDIT AND COUNTY FINANCIAL REPORT
Finance Director Bruce Shell presented charts and figures reflecting the composition of general fund revenues
and expenditures for FY 2001-2002. He advised that revenues were primarily received from the property tax in the
amount of $113,272,000 and the sales tax in the amount of $30,017,000. Expenditures were primarily comprised of
transfers to the School System in the amount of $66,361,000 and to Cape Fear Community College in the amount
$3,172,000 for a total of $69,533,000. Overall, revenues exceeded expenditures in an excess of $9,500,000 for FY 2001-
2002.
Sales Tax Revenue:
The entire area received over $42,000,000 in sales tax revenue during FY 2001-2002. New
Hanover County received less revenue in FY 2000-2001 because of the large annexation by the City of Wilmington.
Fund Balance:
The current unrestricted fund balance is 16.4% with a State requirement of 8%. During FY 2001-2002,
approximately $9,500,000 was added to the fund balance increasing the undesignated balance from10.6% to 16.4%,
which represents a strong fund balance that must be maintained.
Capital Projects:
The following projects were presented:
•New Jail and small renovations to the Law Enforcement Center
•$125,000,000 School Bond Expenditure
•Emergency Operations Center
•Parks & Recreation Facility bonds
•Veterans Park
•Veterans Park Infrastructure
•1996 State School Bonds
•Airport Burn Pit
•Northeast Branch Library
•$13,900,000 for Improvements to Cape Fear Community College
The largest capital projects are a result of the 1994 and 1997 bond issues for Cape Fear Community College and New
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 512
Hanover County Schools. The College received over $50,000,000 in bonds and the School System received over
$165,000,000. These two projects, in conjunction with the new Jail, represent over two-thirds of capital projects
undertaken by the County.
Special Revenue Funds:
These funds are used to track revenue received by the County for a specific use. For example,
a Special Revenue Fund has been established to track the one-half cent sales tax earmarked for Schools. This fund
identifies exactly the amount of money coming in and going out of this fund. With current enabling legislation
changing the Room Occupancy Tax, specific revenue funds will be established for the Tourism Development Authority,
showing the distribution of funds. Money will also be transferred from the Room Occupancy Tax fund into a special
account to hold money collected for the City of Wilmington Convention Center. Other special revenue funds are the
Special Fire District, Emergency Telephone System, Drug Court, Local Law Enforcement Block Grant, Wireless 911,
Parks Foundation, and Airlie Gardens Foundation.
Enterprise Funds:
Water and Sewer Fund: The Water and Sewer District serves approximately 28,000 customers. Fees collected
for service represent 45% of revenue collected and 39% is received from capital contributions. Approximately
$1,900,000 was received from the one-half percent sales tax. A 20-year Capital Project Plan has been
established and Staff closely monitors the cash flow and future needs. The following projects were presented:
•Island Park Water Extension
•Greenbrier Sewer
•Brookfield/Brierwood Sewer
•Northside Wastewater Treatment Plant II
•Spring Branch Interceptor
•Middle Sound Sewer
•Well Field and Water Treatment Facility
•Kings Grant Sewer
•General Water and Sewer Project
Environmental Management Fund: This fund represents revenues and expenditures for the New Hanover
County Landfill, incinerator, recycling, and administrative costs. A transfer from the one-half percent sales
tax was received in the Environmental Management Fund in FY 2002; however, in the current year, the
Environmental Management Fund is being supported by increased tipping fees which has eliminated the need
to receive a subsidy from the general fund. The following projects were presented:
•Constructed Wetlands Project - Clean Water Management Trust Funds
•Construction of Cells 6A and 6B
County Debt:
As of June 30, 2002, the County had the following amount of debt:
General Obligations Bonds$239,393,546
Installment Debt 111,785,974
Total Long-Term Debt$351,179,520
In March 2003, the County will issue approximately $40,000,000 of debt for water and sewer projects, airport projects,
the Federal Point Fire Station and the Annex Administrative Building in Market Place Mall. During FY 2003, the
County will be retiring approximately $19,000,000 of debt through payment of debt service.
The percentage of the general fund used to pay debt service has increased from 7.8 percent in 1998 to 11.3 percent in
2002 due to bonds issued for the Schools, Cape Fear Community College and other capital projects. The 11.3 percent
is considered a low to moderate percentage of the general fund.
A chart was presented on the pay down of the principal over a 20-year period. Within five years, the County will have
paid a third of its debt and within ten years, three-fifths of the debt will be paid. The Local Government Commission
requires local governments to establish an aggressive pay back schedule. The 11.3 percent of debt will drop dramatically
over the coming years because of this schedule.
Bond Ratings Factors:
The bond rating agencies review the following key factors when determining ratings for local
governments, and New Hanover County is strong in these areas:
•Diverse, stable economy with strong growth prospects concentrating on major employers in a
community, revenue received, and growth of the tax base.
•Excellent financial management and performance with a strong fund balance.
•Strong financial management in preparation for future borrowing plans.
•Moderate debt levels and rapid amortization.
Unfortunately, the State of North Carolina was downgraded from AAA rating to Aa1. New Hanover County is rated
Aa2, and the City of Wilmington is rated Aa3. With the County and City receiving excellent bond ratings, it provides
financial clout to both governments.
In summary, Director Shell advised that New Hanover County has a strong financial management resulting in
positive operations and strong reserves. There is a good mixture of general fund revenues with strong growth. The
County has a positive assessed valuation growth with a diversified tax base, and the debt service is a low to moderate
percentage of general fund expenditures. With a rapid debt amortization schedule, the debt will be paid quickly, and
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 513
New Hanover County has sufficient revenues to comply to this schedule.
Tax Collections:
New Hanover County has a strong aggressive Tax Department that has maintained over a long period
of time a 98% collection rate, which is quite impressive to the bond rating agencies.
Comparison of Property Tax Rates for FY 2002-2003:
The following chart was presented showing property tax rates
charged in counties that serve as economic hubs:
Wake County56.40 cents
Buncombe County59 cents
Guilford County67.42 cents
New Hanover County 69 cents
Forsyth County69.20 cents
Durham County75.30 cents
Orange County83 cents
Mecklenburg County83.97 cents
Cumberland County92.50 cents
Population Growth:
In the last 10 years, New Hanover County has experienced a 33% population growth, which is
a considerable amount of growth. The population is diversified with about an equal number of older and younger
residents. This diversity has not significantly changed the number of students attending schools which has allowed the
County to construct the necessary schools and meet other infrastructure needs.
Construction Activity:
During the past 10 years, construction activities have continued to be strong even with the
economic downturn in 2000 and 2001. The activity increased in 2002 and is expected to continue to grow.
Investment in Downtown Wilmington:
The County has made the following investments in downtown Wilmington:
Judicial Building Annex$12.0 million
Library Renovations 3.6 million
Parking Deck 8.9 million
Cape Fear Community College 23.4 million
138 North Fourth Street 1.3 million
rd
Bell South Building - 3 Floor 1.1 million
211 North Second Street - Training Center 0.02 million
Total$50.3 million
Tourism:
With the economic downturn in tourism throughout the State, New Hanover County held its own as shown
through revenue generated from Room Occupancy Tax during FY 2001-2002. This is positive trend that reflects a
vibrant and diverse area.
In concluding the presentation, Finance Director Shell advised that New Hanover County serves as a regional
hub that provides modern medical facilities, educational institutions, and air service to the area. The County is a leader
th
in health care with New Hanover Regional Medical Center being the 10 largest hospital system in the State. The
th
University of North Carolina at Wilmington ranks 7 in the 16-campus University of North Carolina System and is
recognized nationally for its marine biology program and internationally for its technological initiatives in global
learning. Cape Fear Community College is one of the largest community colleges located in North Carolina and is well
known for it diverse programs. The North Carolina State Port serves as a major commerce resource for the County, and
the Wilmington International Airport provides regular jet and commuter flight service.
Chairman Davis asked if any member of the Board would like to comment.
Hearing no comments, Chairman Davis expressed appreciation to Finance Director Shell for an excellent
presentation.
Finance Director Shell requested Assistant Finance Director Bunny McClure and Deputy Finance Director Julie
Griffin to explain the creation and purpose of the Governmental Accounting and Standards Board and the impact of
GASB 34 on accounting procedures.
Assistant Finance Director McClure reported that the Governmental Accounting Standards Board was
established in 1984 to provide standards of financial reporting for state and local governments across the United States.
The mission of this Board is to establish and improve standards for financial reporting so the results will provide useful
information and serve as a guide to educate the public. To accomplish this mission the Board issues both new standards
and reviews existing standards to be sure they remain current or do not need improvement. An example of a new
standard is the GASB 34 statement which changes the County’s reporting to make it more closely resemble financial
reporting for private sector entities. The North Carolina General Statutes require all local governments to follow these
accounting principals.
In closing, Assistant Finance Director McClure offered to answer questions.
Hearing no questions, Chairman Davis requested Deputy Finance Director Griffin to explain the GASB 34
statement.
Deputy Finance Director Griffin reported that GASB 34 is one of three GASB statements implemented by the
County during the past fiscal year. New Hanover County was privileged to be one of the Phase I governments selected
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 514
to implement the statements due to its revenue levels. This statement has changed the structure and content of the
Comprehensive Annual Financial Report for FY 2001-2002. Two new statements, the Statement of Net Assets and the
Statement of Activities, were included in the financial report to provide a total government-wide view of activities for
the past year. Another addition to the report is the Management Discussion and Analysis section which provides a
summary of the Comprehensive Annual Financial Report. A representative from McGladrey & Pullen Certified Public
Accounts left a booklet entitled, An Elected Official’s Guide to the New Governmental Financial Reporting Model in
the Governing Body Office which will help the Commissioners to better understand the changes that were necessary.
In closing, Deputy Finance Director Griffin offered to answer questions.
Hearing no questions, Chairman Davis requested Mr. Jeff Williams, Audit Manager of McGladrey & Pullen,
to make a brief presentation.
Mr. Jeff Williams reported that the accounting firm was engaged by the Board of County Commissioners to
conduct an independent financial audit of New Hanover County in accordance with auditing standards generally accepted
in the United States and in accordance with Government Auditing Standards issued by the Comptroller of the United
States. He advised that on Page 3 of the report, it reflects that a clean opinion was issued for the financial section. In
accordance with Government Auditing Standards, a review was conducted of New Hanover County’s internal control
over financial reporting to be sure it complied with certain provisions of laws, regulations, contracts, and grants. As
noted on Page 222 in the report, no material weakness was found in the internal controls. An audit was also conducted
on compliance with requirements applicable to each major State program and on internal control over compliance in
accordance with applicable Sections of the OMB Circular A-133 and the State Single Audit Implementation Act. On
Pages 225-234, two immaterial issues of non-compliance were noted and a clean opinion was issued.
In concluding the presentation, Mr. Williams offered to answer questions and stated that Mr. Sam Rose and
he would be glad to meet with any of the elected officials to discuss the report.
Hearing no further comments, Chairman Davis expressed appreciation to Finance Director Shell and his
Administrative Staff for an informative presentation. He stated that New Hanover Country was fortunate to have Mr.
Shell as its Finance Director.
BREAK
Chairman Davis called a break at 10:30 a.m. until 10:40 a.m.
PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION TO APPROVE ISSUING SERIES 2003
CERTIFICATES OF PARTICIPATION
Chairman Davis reported that the Public Hearing was being held to consider the issuance of Series 2003
Certificates of Participation in the amount of $40,000,000 and to adopt the associated resolution. He requested Finance
Director Bruce Shell to make the presentation.
Finance Director Shell reported that the following projects will be financed or refinanced through Certificates
of Participation:
•Water and Sewer Projects for Kings Grant, Middle Sound, and Brookfield/Briarwood in the amount of
$28,000,000.
•Projects for the Wilmington International Airport in the amount of $3,800,000.
•Replacement of temporary financing for the new Federal Point Fire Station and Annex Administrative Building
located at Market Place Mall in the amount of $5,100,000.
•Purchase of additional space at the Annex Administrative Building located at Market Place Mall in the amount
of $2,700,000 to house the Tax Office, Elections Department, and Environmental Health Division.
Finance Director Shell advised that the total cost of the projects was approximately $40,000,000. The Board
is being requested to adopt the resolution approving the installment financing and/or refinancing of these projects. A
Schedule of Debt will be filed with the Clerk to the Board of County Commissioners, the Finance Department and the
New Hanover County Library for public review.
Chairman Davis asked if any member of the Board had any questions.
Hearing no comments, Chairman Davis opened the Public Hearing at 10:50 a.m.
Chairman Davis asked if anyone from the audience would like to speak in favor of the proposed resolution
involving the issuance of Certificates of Participation.
No one spoke.
Chairman Davis asked if anyone from the audience would like to speak in opposition to the proposed resolution
involving the issuance of Certificates of Participation.
No one spoke.
Chairman Davis asked if the Clerk to the Board had received any written comments.
Clerk to the Board, Lucie F. Harrell, responded that no written comments had been received.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 515
Chairman Davis called for a motion to adopt the resolution.
Motion:
Commissioner Caster MOVED, SECONDED by Vice-Chairman Greer, to adopt the resolution for issuance of
Series 2003 Certificates of Participation in the amount of $40,000,000 to finance or refinance the projects presented.
Upon vote, the MOTION CARRIED 4 to 1. Commissioner Boseman voted in opposition.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.11.
Finance Director Shell presented Project Ordinances for the Airport Improvements Project and the Additions
to the Administrative Annex Building and requested the Board to adopt the ordinances and approve the associated budget
amendments.
After discussion of the Airport Improvements Project Ordinance, Commissioner Boseman advised that she could
not vote for this project because the Airport Authority should be responsible for financing its projects.
Chairman Davis requested Finance Director Shell to explain why the County was securing financing through
Certificates of Participation for the Airport Authority.
Finance Director Shell explained that the Airport Authority has received $2,100,000 in federal funds that will
be combined with the $3,800,000 in Certificates of Participation to make some major improvements that are needed at
the Airport. With the 2003 Series of Certificates of Participation, New Hanover County was able to borrow money at
a lower interest rate which makes a significant difference in repayment of the debt service. An interlocal agreement has
been negotiated between the County and Airport Authority for the loan to be repaid by the Authority in ten years.
Discussion followed on whether the debt incurred for the Airport Authority would negatively impact the bond
ratings. Finance Director Shell explained that the additional debt would not negatively impact the bond ratings and stated
after discussion with representatives of the Local Government Commission, this agency viewed the Airport financing
as a positive move by the County to show support for its local airport. The difference in the interest rate over a 10-year
repayment period will save the Airport Authority $225,000.
Vice-Chairman Greer noted that the interlocal agreement showed Airport improvements at $3,800,000 and
asked if the additional $800,000 should be included in the agreement.
Finance Director Shell responded that the interlocal agreement should have included the $800,000 and advised
that the figure in the agreement would be changed to $4,600,000.
County Attorney Copley advised that the Airport Authority will execute a Promissory Note as part of the
interlocal agreement and stated the note would be executed at the next meeting of Airport Authority to be held on
February 26, 2003.
After hearing no further questions, Chairman Davis called for a motion to adopt the Project Ordinances and
interlocal agreement.
Motion:
Vice-Chairman Greer MOVED, SECONDED by Commissioner Pritchett, to adopt the two project ordinances,
approve the associated budget amendments, and approve the amended interlocal agreement with the New Hanover
County Airport Authority in the amount of $4,600,000. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Copies of the Project Ordinances are hereby incorporated as a part of the minutes and are contained in Exhibit
Book XXVIII, Page 7.12.
A copy of the interlocal agreement is on file in the Legal Department.
PRESENTATION BY CITIZENS FOR CONSERVATION OF THE NORTH END
Ms. Lynda Bilbrough, representing the Citizens for Conservation of the North End of Carolina Beach, presented
a picture of the north end of Carolina Beach showing the number of vehicles on the beach. She advised that she was
representing the Freeman Heirs and property owners at the north end of the beach and stated that the owners are not
restricting responsible pedestrians from walking on their property, but they are opposed to vehicles diving through their
yards, people living in their homes while they are away, or dogs running free and defecating on their properties.
There is no doubt that driving on the north end of Carolina Beach is environmentally damaging. This area is
located in a Conservation Overlay District (COD), which according to the New Hanover County Zoning Ordinance, was
established for the purpose of protecting precious environmental resources. It does not appear that endangered species
and threatened species are precious to New Hanover County and the Town of Carolina Beach because both governments
are violating COD regulations as well as Chapter 59, Section 53-54(3) of the New Hanover County Code which says “if
on private property with permission of the owner.” This area is part of the Shore Protection Area defined by the New
Hanover County Code under the Waterways Section 59-34.
Ms. Bilbrough presented signed documents from property owners at the north end of Carolina Beach requesting
enforcement of trespassing laws to protect their property. The owners are simply saying, “We want our land protected.”
Allowing these violations of property rights to continue is a serious injustice and is violating the rights guaranteed by
the Federal and State Constitutions. The majority property owner, Ms. Evelyn Williams an Attorney at Law, has
requested that her letter to the Board of County Commissioners dated February 13, 2002, become part of the public
record, and Mr. Richard J. Burnett, Jr., has requested that his letter become part of the public record.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 516
Ms. Bilbrough requested the Commissioners to cease to hinder enforcement of the Endangered Species Act and
the Migratory Bird Treaty Act that were enacted to protect the endangered and threatened wildlife that once lived on the
north end of Carolina Beach. Species, such as the Loggerhead Sea Turtle have been hindered in their nesting activities,
and the habitat for a myriad of shore birds has been destroyed by vehicles.
In closing, Ms. Bilbrough requested the Commissioners to enforce the laws that protect our citizens’ rights and
our natural resources.
Chairman Davis asked if any member of the Board would like to comment.
After hearing no comments, Chairman Davis requested the Clerk to the Board to incorporate the documents
presented by Ms. Bilbrough as part of the record.
Copies of the exhibits presented by Ms. Belynda Bilbrough are on file in the Clerk’s office.
COMMITTEE APPOINTMENTS
ppointments to the Adult Care Home Community Advisory Committee
A
Chairman Davis announced that three vacancies needed to be filled on the Adult Care Home Community
Advisory Committee. He reported that three applications were received, and two of the applicants, Susan Kay Fletcher
and Carolyn B. Hooker are eligible to be reappointed.
After discussion of the number of members serving on the Adult Care Home Community Advisory Committee
and the ability to increase the current 13 members to a maximum of 18, the Board agreed that the membership should
be increased by at least one member.
Chairman Davis called for a motion to increase the membership.
Motion:
Commissioner Boseman MOVED, SECONDED by Commissioner Pritchett, to increase the membership of the
New Hanover County Adult Care Home Community Advisory Committee from 13 to 14 members. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
Chairman Davis opened the floor to receive nominations.
Commissioner Boseman nominated Susan Kay Fletcher and Carolyn B. Hooker for reappointment and
nominated Elizabeth A. Coleman to fill the new position. The nomination was seconded by Commissioner Pritchett.
There being no further nominations, Chairman Davis declared the nominations closed.
Vote:
The Board voted unanimously to reappoint Susan Kay Fletcher and Carolyn B. Hooker to serve 3-year terms to
expire on February 28, 2006, and to appoint Elizabeth A. Coleman to serve an initial 1-year term to expire February 28,
2004.
ppointments to the Industrial Facilities and Pollution Control Financing Authority
A
Chairman Davis announced that two vacancies needed to be filled on the Industrial Facilities and Pollution
Control Financing Authority. He reported that two applications were received and both applicants, John D. May and
Bruce Moskowitz, were eligible for reappointment.
Motion:
Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to reappoint John D. May and Bruce
Moskowitz to serve 6-year terms on the Industrial Facilities and Pollution Control Financing Authority with the terms
to expire on February 22, 2009. Upon vote, the MOTION CARRIED UNANIMOUSLY.
ppointments to the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board
A
Chairman Davis announced that three vacancies needed to be filled on the Juvenile Crime Prevention
Council/Criminal Justice Partnership Advisory Board in the categories of Juvenile Defense Attorney, Member of the
Business Community, and a person under 21 years of age. The following applications have been received for these
categories:
Juvenile Defense Attorney:Ray Blake
Sandra Ray Criner
Michael Lawrence Smith
Member of Business CommunityElena Pezzuto
Person Under 21No applications received.
Chairman Davis opened the floor to receive nominations for the Juvenile Defense Attorney.
Commissioner Boseman nominated Sandra Ray Criner. The nomination was seconded by Commissioner
Caster.
There being no further nominations, Chairman Davis declared the nominations closed and called for a vote.
Vote:
The Board voted unanimously to appoint Sandra Ray Criner to serve a 3-year term on the New Hanover County
Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board as the Juvenile Defense Attorney
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REGULAR MEETING, FEBRUARY 17, 2003 PAGE 517
representative. The term will expire September 30, 2006.
Chairman Davis announced that Diane W. Ledbetter had submitted an application but since she was in the
process of moving, her application had been withdrawn.
Chairman Davis advised that the only applicant qualifying for this category was Elena Pezzuto and he requested
a motion.
Motion:
Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to appoint Elena Pezzuto to serve
a 3-year term on the New Hanover County Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory
Board with the term to expire September 30, 2006. Upon vote, the MOTION CARRIED UNANIMOUSLY.
In discussion of having no applications for the person under the age 21 category, the Clerk to the Board was
requested to forward a letter to the five high schools and counselors requesting them to recruit a young person who would
be interested in serving on the New Hanover County Juvenile Crime Prevention Council.
ppointment to the Port, Waterway and Beach Commission
A
Chairman Davis announced that one vacancy needed to be filled on the Port, Waterway and Beach Commission.
He reported that six applications had been received.
Chairman Davis opened the floor to receive nominations.
Commissioner Caster nominated Paul Woodbury. The nomination was seconded by Commissioner Pritchett.
Commissioner Boseman nominated Joseph E. McMillan. The nomination was seconded by Chairman Davis.
Hearing no further nominations, Chairman Davis declared the nominations closed.
Chairman Davis called for a vote on the appointment of Joseph E. McMillan.
Vote:
The Board voted 2 to 3 on the appointment of Mr. McMillian. Commissioner Boseman and Chairman Davis voted
in favor of the appointment. Since a majority vote was not received, Mr. McMillian was not appointed to serve on the
Port, Waterway and Beach Commission.
Chairman Davis called for a vote on the appointment of Paul Woodbury.
Vote:
The Board voted 3 to 2 to appoint Paul Woodbury to serve a 3-year term on the Port, Waterway and Beach
Commission with the term to expire February 28, 2006. Vice-Chairman Greer, Commissioner Caster, and Commissioner
Pritchett voted in favor of the appointment.
Chairman Davis requested the Clerk to the Board notify all persons of their appointments.
MEETING RECESSED TO HOLD A REGULAR MEETING OF THE NEW HANOVER COUNTY WATER
AND SEWER DISTRICT
Chairman Davis convened from Regular Session at 11:30 a.m. to hold a meeting of the New Hanover County
Water and Sewer District.
Chairman Davis reconvened to Regular Session at 11:51 a.m.
NON-AGENDA ITEMS
Chairman Davis announced that time had been reserved to allow the public to present items that were not placed
on the Regular Agenda. He requested all persons speaking to limit their remarks to three minutes.
The following items were presented:
Request from Mr. John M. Licari to Appeal a Tax Discovery
Mr. John M. Licari petitioned the Board for a review of a discovery made by the Tax Department dealing with
his failure to list business personal property while engaged in business in New Hanover County. He advised that
pursuant to N.C.G.S. 105-312(k), an appeal could be heard by the Board of County Commissioners or by the Board of
Equalization and Review. He requested the Board to schedule a time for the Commissioners to hear the appeal.
After discussion, County Attorney Copley was requested to review the Statutes and discuss the request with the
Tax Administrator to determine if the appeal can be heard by the Board of County Commissioners. Once a determination
is made, a letter should be written to Mr. Licari and his attorney informing them about the findings.
Discussion of Proposal Submitted by the Wilmington-Cape Fear Home Builders Association Regarding Changes
to Section 102-04 of the New Hanover County Zoning Ordinance Pertaining to Density Calculations and Revisions
to Performance Residential Development
Ms. Jane Kopczynski, President of Ocean Forest Homeowners Association, spoke on being concerned about the
Wilmington-Cape Fear Home Builders Association giving the impression that the Homeowners Associations were in
consensus with their 13-page proposal regarding changes to the Performance Residential Development Ordinance. She
urged the Board to be sure that the Homeowners Associations were included and treated equally in meetings held by the
Planning Board when discussions are being held on changing existing ordinances. At the last meeting of the Planning
Board, Attorney Gary Shipman made it quite clear that if the proposed changes submitted by the Home Builders
Association were not passed, lawsuits would be filed and won by the developers which would leave
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 518
Homeowners Associations in jeopardy.
Mr. Larry Fried, a resident of 106 Victoria Drive in Covil Estates, expressed concern for the proposed changes
to the Zoning Ordinance and Subdivision Ordinance regarding Performance Residential Development. The Homeowners
Associations and citizens of New Hanover County have serious concerns about powerful organizations and attorneys
having sufficient influence with the Board of County Commissioners. The Homeowners Associations want to be included
in discussion and/or workshops involved with these issues. He requested the Board to protect the citizens of New
Hanover County when considering changes to these ordinances.
Chairman Davis expressed appreciation to Ms. Kopczynski and Mr. Fried for their remarks and assured them
that the members of the Board were not influenced by organizations or attorneys when rendering decision regarding
planning issues.
ADDITIONAL ITEMS
Announcement of North Carolina Shore and Beach Preservation Association Meeting Being Held in Kure Beach
Commissioner Caster announced that the North Carolina Shore and Beach Preservation Association would be
holding a meeting on February 21, 2003, at 2:00 p.m. in the Kure Beach Town Hall. He invited the Commissioners to
attend the meeting and stated that usually these meetings are held in New Bern, N. C.
Discussion of Future Funding from N. C. Clean Water Management Trust Fund for the Tidal Creeks Initiative
Commissioner Caster advised that he would be meeting with Staff Planner Chris O’Keefe to work on
submitting a funding application to the N. C. Clean Water Management Trust Fund for FY 2003-2004. He also noted
that some of the projects will be presented to the Board at a future date.
Continuance of an Appeal to Locate a Commercial Marina at 1512 Burnett Road (#S-493)
Chairman Davis advised that a letter dated February 12, 2003, had been received from Attorney Kenneth A.
Shanklin requesting the Board to continue the appeal regarding the location of a marina at 1512 Burnett Road from the
March 10, 2003 until April 7, 2003. He advised that the Planning Staff had no problem with continuing the appeal.
Chairman Davis requested direction from the Board.
Consensus:
After discussion, it was the consensus of the Board to continue the appeal until the April 7, 2003 meeting
and direct the Clerk to the Board to notify Attorney Shanklin of the decision.
Authorization for the Sheriff’s Department to Apply for the Project Safe Neighborhoods 2003 Grant from the N.
C. Governor’s Crime Commission
Lieutenant Rhonda Smith requested the Board to authorize the Sheriff’s Department to apply for the Project
Safe Neighborhoods 2003 Grant in the amount of $92,283.42 to reduce gun violence in neighborhoods. She advised that
four counties had been invited to apply for the grant, Cumberland County, New Hanover County, Pitt County, and Wake
County. The grant will provide resources to implement a multifaceted, innovative approach to reducing gun violence
in neighborhoods and schools by taking the following actions: (1) providing metal detectors in schools; (2) allowing the
Crime Prevention Unit to enhance its focus on attending public and organization events to promote gun safety and gun
violence reduction; and (3) purchase additional forensic ballistic tanks to expand the ability to test and check weapons
involved in crimes. The grant does not require a County match and no additional personnel will be needed.
After hearing no comments from members of the Board, Chairman Davis called for a motion.
Motion:
Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to authorize the Sheriff’s Department
to apply for a Project Safe Neighborhoods 2003 Grant in the amount of $92,283.42. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
Adoption of Resolution Requesting the N. C. Department of Transportation (NCDOT) to Increase Funding in the
Middle Sound Loop Road Project to Include Bike Lanes
Mr. Richard G. Catlin, a resident of Middle Sound, requested the Board to adopt a resolution to request the
NCDOT to increase funding in the existing Middle Sound Loop Road Project No. 7.2521124 to include bike lanes by
approving a change order to the existing contract.
Chairman Davis requested Mr. Catlin to read the resolution into the record.
Chairman Davis asked County Attorney Copley if the County could incur any liability with adoption of the
resolution.
County Attorney Copley responded that no liability would be incurred by the County.
Hearing no further comments, Chairman Davis called for a motion.
Motion:
Commissioner Caster MOVED, SECONDED by Vice-Chairman Greer, to adopt the resolution requesting the
NCDOT to increase funding to include bike lanes on Middle Sound Loop Road. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.13.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 519
Adoption of Resolution to Authorize the Finance Officer to Dispose of Personal Property up to $5,000 in Value
Finance Director Shell requested the Board to adopt a resolution to allow the Finance Officer to disposal of
personal property valued at $5,000 pursuant to N.C.G.S. 160A-266(c). He advised that the purpose of increasing the
current limit from $1,000 to $5,000 is to sell older assets in the Annex Building and Human Relations Building since
these structures have been sold.
Hearing no comments from the Board, Chairman Davis requested a motion.
Motion:
Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to adopt the resolution. Upon vote,
the MOTION CARRIED UNANIMOUSLY.
A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book
XXVIII, Page 7.14.
Status Report on the Incentive Agreement with Corning, Inc.
County Manager O’Neal reported that New Hanover County and the City of Wilmington entered into a five-year
incentive agreement with Corning, Inc. a few years ago regarding construction activity being undertaken that would
create more jobs for the area. Corning, Inc. has written a letter requesting the County and City to terminate the incentive
agreement and forfeit receipt of the payments for the remaining four years. He advised that since Corning, Inc. has
complied to the terms of the agreement for the first year, he was in the process of forwarding the $450,000 payment to
the company. Funds have already been included in the current fiscal year budget.
In further discussion of Corning, Inc. being a good corporate citizen and complying to the requirements of the
first year in the agreement, the Board authorized the County Manager to make the payment as recommended.
CONSIDERATION OF SUBDIVISION ORDINANCE AMENDMENTS AS RECOMMENDED BY THE
UNIFIED DEVELOPMENT ORDINANCE OVERSIGHT COMMITTEE (A-321, 08/02)
Senior Planner Baird Stewart reported that last year major changes were proposed by the UDO Oversight
Committee for the City and County Subdivision Ordinances. These changes have been incorporated into the County’s
existing ordinance. Following numerous meetings and several months of discussions, the UDO Committee is now
recommending the following changes to the New Hanover County Subdivision Ordinance:
•Block lengths changed from a maximum of 1,400 to 1,000 feet
•Pedestrian Access at least 15 feet in width may be required
•Buffer easements as much as 50 feet may be required
•Easement Standards for drainage, water and sewer, and other utilities modified
•Street Connectivity requirements added
•Cul-de-sac lengths changed from 1,000 to 500 feet
•Stub streets and temporary turnaround requirements modified
•Sureties for improvements capped at $100,000 after 25% of work completed
•Monumentation requirements modified
•Surface Water Drainage to comply with new Stormwater Management Ordinance
•Recreation and Open Space Requirements added
•Sidewalks required
•Protection of Planned Thoroughfares changed from 12 to 24 months
At the regularly scheduled meeting on December 5, 2002, the Planning Board unanimously voted to approve
the amendments recommended by the UDO Oversight Committee with the following changes:
1) Based on current trends in planning and development, which promote the use of alleys as a means of
access, the Planning Board recommended changing the existing County Subdivision Ordinance to
allow alleys by right rather than by exception. The UDO committee had not previously discussed
alleys.
2) Based on concerns for small local builders being able to develop property in the County, the Planning
Board recommended that the limit on sureties proposed by the UDO Committee should be increased
from $100,000 maximum to $200,000 for guarantees of improvements.
The proposed changes can be accommodated by revising Sections 41 and 51.
During the Public Hearing held by the Planning Board, two people spoke. One was a local engineer who
commented on three sections of the ordinance. While the Planning Board did not make any additional changes to its
recommendations, the Board did ask for these comments to be considered in the presentation of the proposed subdivision
amendments. Two of the three comments asked for clarification of language regarding drainage and utility easements
to ensure the wording reflected the intent of the ordinance and was consistent with other ordinances and policies. Upon
Staff research and evaluation, this language has been incorporated into the text. The third comment related to Section
52-7 which requires half of the recreation area to be designated for active use and half for passive use. The presenter
suggested providing more flexibility in the requirement, ranging between 40 to 60 percent. One member of the UDO
Committee disagreed with the proposed change in the surety and noted that the Committee had spent a significant
amount of time discussing and evaluating the recreation space issue before determining the 50/50% ratio for active and
passive areas.
Chairman Davis asked why the discussion of alleys was not taken back to the UDO Committee.
Senior Planner Stewart advised that the amendment regarding alleys was presented to the UDO Committee.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 520
This Committee does not make motions, but it was felt that the UDO Committee was supportive of the change. The major
issue of concern was the change in the surety limit.
Chairman Davis requested Senior Planner Stewart to explain the meaning of the UDO Committee’s
recommendation regarding the surety limit.
Senior Planner Stewart explained that in order to record the final plat, all improvements including stormwater,
water, sewer, roads, or curbs should be in place. Frequently, there are elements that still need to be completed such as
the final surface on a roadways in a new subdivision. If the developer is still constructing homes that will be ready for
occupancy, that builder may want to guarantee through a surety that final surface of the roadway will be completed once
heavy construction vehicles are no longer using the road. This means that if the developer wants to record a plat, 25%
of all infrastructure work would have to be completed and the developer would have to provide a surety of $100,000 to
complete the improvements within the subdivision.
In discussion of the recommendations before the Board of County Commissioners, Senior Planner Stewart
explained that under County regulations there is no maximum limit on the amount of the surety. After research by the
Planning Staff, it was found that the average surety received by County is $97,000. This figure was presented to the
UDO Committee. At that time, the UDO Committee determined that the surety should be $100,000 with 25% of
improvements completed, and the Planning Board recommended requiring a surety not to exceed $200,000.
Chairman Davis asked if the Planning Staff was in favor of the $200,000 surety.
Senior Planner Stewart responded that the Planning Staff was in favor of the $100,000 surety plus 25% of
improvements being completed because this alternative better protects the County. If the developer should not complete
the work, the surety would guarantee sufficient funds to complete the work and the County could draw down on the
money.
After a lengthy discussion on the surety limit, Vice-Chairman Greer advised that he could not see a major
difference in the $100,000 surety with 25% of the work completed and the $200,000 surety recommended by the
Planning Board.
Chairman Davis asked if anyone from the audience would like to speak in favor of the ordinance text
amendments.
No comments were received.
Chairman Davis asked if anyone from the audience would like to speak in opposition to the ordinance text
amendments.
Mr. Arnold Carlson, a resident of New Hanover County, apologized for not becoming involved with the
proposed text amendments before this date and stated that ceratin sections of the ordinance are out-of-date. Many
ordinances do not comply with what is required by the Register of Deeds Office. He expressed concern for Section 14,
Re-enactment and Repeal of Existing Subdivision Regulations, being deleted and stated if this action is taken, every
subdivision in New Hanover County will be non-conforming. This section simply says that existing recorded
subdivisions, existing approved preliminary plans, and subdivisions being built or submitted plans prior to a certain date
are not affected by the proposed changes. It is difficult to understand why this section is being eliminated.
Attorney Susan J. McDaniel advised that she was not for or against the substance in the proposed ordinance
text amendments; however, she was extremely concerned about the terminology used. The terms preliminary plan,
preliminary subdivision plan, and major subdivision are not defined in the Subdivision Ordinance. These terms should
be defined and consistent, particularly in relationship with Performance Residential Development. There should be a
proper glossary and cross-reference for the definitions and terminology in all ordinances to avoid the confusion that has
been created for developers, homeowners, and attorneys when trying to interpret the Zoning Ordinance and Subdivision
Ordinance to determine what has been submitted and what is required.
In closing, Attorney McDaniel requested the Board to defer action on the proposed changes until Mr. Carlson’s
concern about deletion of Section 14 and the terminology has been addressed in the ordinance amendments.
Chairman Davis requested Senior Planner Stewart to explain why Section 14 was being eliminated.
Senior Planner Stewart advised that he was not sure why Section 14 was deleted. With reference to definitions
for a preliminary plan, preliminary subdivision plan, and a major subdivision, the term subdivision is defined under
Section 20-17. This definition has been in the ordinance for a number of years. The relationship of a preliminary plan
to a preliminary subdivision plan is defined in Section 32 under the preliminary plat.
Commissioner Pritchett advised that Attorney McDaniel was referring to the definition of a major subdivision
and asked if there was a definition for a minor subdivision.
Senior Planner Stewart responded that a major subdivision is considered to be any subdivision greater than five
lots.
Mr. Myron Swetlitz, representing the Homeowners Associations, spoke on the need to have internal consistency
in relationship to Performance Residential Development and the UDO Ordinance. He stated that until this connectivity
occurs, there is no need to amend the ordinances.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29
REGULAR MEETING, FEBRUARY 17, 2003 PAGE 521
Vice-Chairman Greer referenced Mr. Carlson’s remarks about some of the requirements being outdated when
recording a plat at the Register of Deeds Office and he requested Senior Planner Stewart to comment on this concern.
Senior Planner Stewart responded that Mr. Carlson was specifically referring to the size of plats that have to
be recorded. The Register of Deeds Office can only record certain sizes of plats; however, the Map Review Officer is
checking into these requirements in an effort to resolve the problem.
Vice-Chairman Greer asked if there was a discrepancy in the ordinance.
Senior Planner Stewart responded that the language in the ordinance does specify a maximum and minimum
size for maps. The Register of Deeds Office has changed its format; however, the criticism from Mr. Carlson is accurate.
Vice-Chairman Greer agreed with Mr. Carlson and other remarks made about the consistency of the ordinance
and sections that need to be updated. He suggested deferring action on the proposed text amendments until these items
are clarified.
Chairman Davis commented on the complexity of the changes and agreed with Vice-Chairman Greer. He asked
if the UDO changes and the text amendments regarding performance residential development should be presented at the
same time.
Senior Planner Stewart responded that he felt some of the UDO recommendations should be implemented,
particularly the requirement for recreation space and protecting planned thoroughfares. The proposed changes are
significantly better than the current requirements in New Hanover County Subdivision Ordinance.
Commissioner Caster stressed the importance of the Board moving forward with approving the UDO
Committee’s recommendations as soon as possible so the Committee can continue its task of developing the Unified
Development Ordinance.
After further discussion, Chairman Davis requested a motion to defer action on both items until March 24, 2003.
Motion:
Vice-Chairman Greer MOVED, SECONDED by Commissioner Pritchett, to continue Item 11 and Item12 until
the March 24, 2003 meeting of the Board of County Commissioners. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
ADJOURNMENT
Chairman Davis called for a motion to adjourn the meeting.
Motion:
Commissioner Pritchett MOVED, SECONDED by Commissioner Boseman, to adjourn. Upon vote, the
MOTION CARRIED UNANIMOUSLY.
Chairman Davis adjourned the meeting at 1:10 p.m.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board