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2003-08-18 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 702 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, August 18, 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 Mr. Carl Byrd, Director of Human Relations, gave the invocation. Vice-Chairman Greer led the audience in the Pledge of Allegiance to the Flag. 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. Vice-Chairman Greer requested removal of Consent Items 6, 10, 14, and 16. After hearing no further comments, Chairman Davis called for a motion to approve the items on the Consent Agenda with the exception of Items 6, 10, 14, and 16. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Caster, to remove Items 6, 10, 14, and 16 from the Consent Agenda and approve the remaining items as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Request from the Department of Aging to Accept a Reduction in the Home and Community Block Grant Funds for 2004 and Approval of Associated Budget Amendment #04-0018 The Commissioners approved a request from the Department of Aging to accept a reduction in the amount of $15,728 in the 2004 Home and Community Care Block Grants (HCCBG) funds and approved the associated budget amendment. The total HCCBG funding for FY 2004 will be $761,089 and the reduction in the various programs is reflected in the following budget amendment: Budget Amendment #04-0018-Aging Adjustment Debit Credit CDBG - Social $2,361 Nutrition - CDBG $3,871 Nutrition - CDBG $2,976 CDBG - Social $ 24 CDBG - Social $4,606 CDBG - Social $2,046 Departmental Supplies $ 156 Contracted Services $2,361 Contracted Services - Meals $3,871 Contracted Services - Meals $2,976 Departmental Supplies $ 24 Contracted Services $4,606 Contracted Services $2,046 CDBG - Social $ 156 Explanation: To adjust the operating budget for FY 2003-2004 to reflect changes made in Home Community Care Block Grant Funds. Acceptance of Additional Funding from the Emergency Management Performance Supplemental Fund Grant and Approval of Associated Budget Amendment # 04-0023 The Commissioners accepted additional funding in the amount of $19,792 from the Emergency Management Performance Grant and Emergency Management Performance Supplement Grant, ratified the signed grant documents as presented, and approved the associated budget amendment. Budget Amendment #04-0023-Emergency Management Adjustment Debit Credit N. C. Department Crime Control & Public Safety $19,792 Contracted Services $19,792 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 703 Explanation: To budget for the Emergency Management Performance Supplemental Funds Grant. Award of Contract #04-0053 to APAC, Inc. for Road Improvements at Castle Hayne Park The Commissioners awarded a contract to APAC, Inc., the apparent low bidder, in the amount of $29,137 to improve roads at Castle Hayne Park. The County Manager was authorized to execute the necessary contract documents. The road improvements project involves grading and paving the gravel entrance road from Parmele Road to Castle Hayne Park and is the final phase of construction which completes the Castle Hayne Park Project. A copy of the contract is on file in the Legal Department. Annual Renewal of Contract #02-0378 with Land Management Group, Inc. to Provide Environmental Services for the Mason Inlet Relocation Project and Approval of Associated Budget Amendment # 2004-05 The Commissioners approved the annual renewal of Contract #02-0378 with Land Management Group, Inc. in the amount of $93,250 to provide monitoring and reporting data to federal and state agencies as required by the permit conditions of the Mason Inlet Relocation Project. The Chairman was authorized to execute the necessary contract documents. The Commissioners also approved associated Budget Amendment #2004-05 in the amount of $102,575 which includes a 10% contingency as recommended by Staff to cover the cost of instrumental repair or replacement and other miscellaneous cost associated with the environmental management of the project. The management fee will be paid from the Room Occupancy Tax Fund and eventually assessed to the benefitted property owners. A copy of the contract is on file in the Legal Department. Annual Renewal of Contract # 02-0379 with Gahagan and Bryant Associates to Provide Engineering Services Associated with the Monitoring and Reporting of Data to Federal and State Regulatory Agencies for the Mason Inlet Project and Approval of Associated Budget Amendment #2004-05 The Commissioners approved the annual renewal of Contract #02-0379 in the amount of $132,510 with Gahagan and Bryant Associates to provide engineering services associated with the monitoring and reporting of data to federal and state regulatory agencies as required by the permit conditions of the Mason Inlet Project. The Chairman was authorized to execute the necessary contract documents. The Commissioners also approved associated Budget Amendment #2004-05 in the amount of $512,312 to transfer funds from the Room Occupancy Tax Fund to the Mason Inlet Project for the Land Management Group, Inc. and Gahagan and Bryant Associates contract fees. These management fees will be paid from the Room Occupancy Tax Fund and eventually assessed to the benefitted property owners. Budget Amendment #2004-05-Mason Inlet/Room Occupancy Tax Adjustment Debit Credit Mason Inlet - Maintenance: Transfer in from ROTS $512,312 Extended Project Expense $512,312 Room Occupancy Tax: Appropriate Fund Balance $512,312 Transfer to Capital Projects $512,312 Explanation: To budget additional transfer from Room Occupancy Tax Fund to Mason Inlet Project for Gahagan and Bryant Associates and Land Management Group, Inc. Approval of Request from the Board of Education for State Reimbursement of Funds Spent on Parsley Elementary School The Commissioners approved a request from the Board of Education to request State reimbursement from the Public Schools Building Capital Fund for funds spent on the previously built Parsley Elementary School in the amount of $2,509,476. These qualifying funds will be used with existing funds to build another elementary school on Murrayville Road. Upon approval of this application, the Board of Education will present a budget for the new construction of the elementary school to the Board of County Commissioners. Approval of Request from the Register of Deeds to Establish Budget for an Automation Fund and Approval of Associated Budget Amendment #04-0016 The Commissioners approved a request from the Register of Deeds to establish a budget for an Automation Fund and approved the associated budget amendment. The N.C. General Assembly established provisions effective January 1, 2002 under N.C.G.S. 161-11.3, that 10 percent of revenues received from existing Register of Deeds revenues must be earmarked for automation. Budget Amendment #04-0016-Finance Adjustment Debit Credit Registration Fees $201,300 Computer Expenses $201,300 Explanation: To budget Register of Deeds Automation and Preservation Fund revenues for FY 2003-2004 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 704 under N.C.G.S.161-11.3 Approval of Request from the Fire Service District for Six New Positions at Federal Point and Wrightsboro Fire Departments and Approval of Associated Budget Amendment # 04-0017 in the Amount of $241,935 The Commissioners approved the request from the Fire District for six new positions and approved the associated budget amendment in the amount of $241,935. The six positions consist of three shift fire fighters at the Federal Point Fire Department and one accompanying supervisor, and two additional daytime fire fighters at Wrightsboro Fire Department. The primary objective of the new positions is to help with emergency response which will reduce insurance rates for these two districts. The funding for the positions will be appropriated from the revenue generated by the one-cent increase in the Fire District tax that was approved in the FY 2003-2004 Budget. Budget Amendment #04-0017-Fire Services Adjustment Debit Credit Administrative Reserve $241,935 Salaries and Wages $156,556 Overtime $ 17,950 FICA $ 13,335 Retirement $ 8,628 Insurance $ 33,600 Disability $ 366 Uniforms $ 2,000 Safety Equipment $ 7,500 Contracted Services $ 2,000 Explanation: To transfer funds from the Fire Service District Administrative Reserve to fund additional staff for the Federal Point and Wrightsboro Fire Departments. Acceptance of 2002 Tax Collection Settlement Reports and Charge of the 2003 Tax Levy The Commissioners accepted the 2002 Settlement Reports from the Collector of Revenue Patricia J. Raynor and charged Ms. Raynor with the 2003 tax levy. Copies of these documents are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXVIII, Page 17.1. Release of Values - Tax Department The Commissioners approved Senior Citizen/Disability Exclusions for the following taxpayers: Allston, Carrie G. $ 34,308 Atkinson, Edna R. $ 29,199 Baker, Christine H. $ 63,930 Barr, Virginia D. $ 44,435 Burwell, Mary Lee $ 42,773 Buck, Myrtle B. $ 50,675 Ellerby, Doris $ 35,968 King, Robert E. Jr. $ 30,934 Pollei, Mary E. $111,474 Reid, Mabel J. $ 46,913 Sandin, Dorothy J. $ 56,594 Shaw, Ulysses $ 25,841 Woodall, Audrey M. $ 50,396 The Commissioners approved release of late listing penalties for the following taxpayers since this was their first offence: C&C Transportation, Inc. $ 39.85 Cory Everson's $3,547.34 Ennett, Alex T. Shannon $ 37.96 Heinberg, Bill Insurance $1,874.63 Plaza Pub, (The) $ 71.61 Licari Accounting $ 800.84 Russo Enterprises, Inc. d/b/a Club Tropics $ 998.58 State Street Coastal Ventures $ 115.37 Violets Hair Salon $ 566.40 Wilmington National Peening $3,541.65 The Commissioners approved delinquent applications for exemption from the property tax for the following organizations: Calvary Baptist Church, Inc. R04815-006-016-000 Greek Orthodox Community Church of St. Nicholas R05511-002-026-001 Kure Memorial Chapel R09213-012-004-000 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 705 Yahweh Center Children's Village R01100-008-016-000 Acceptance of Tax Collection Reports Through July 31, 2003 The Commissioners accepted the following Tax Collection Reports through July 31, 2003, as submitted by the Collector of Revenue, Patricia J. Raynor: New Hanover County Fire District New Hanover County Copies of the Tax Collection Reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXVIII, Page 17.2. Approval of Request from Airlie Gardens to Apply for CAMA Grant for Phase II of the Airlie Overlook The Commissioners approved a request from Airlie Gardens to apply for a grant from CAMA in the amount of $106,310 to expand the Airlie Overlook which was built in part with funds from a CAMA grant. The expanded overlook will allow visitors a closer look at Bradley Creek and provide new educational opportunities at the Gardens. County matching funds for this grant are a part of the current budget for projects that will be undertaken at Airlie Gardens. Approval for the Wildlife Resources Commission to Enforce the No Wake Zone in Lee's Cut The Commissioners approved a request from the N.C. Wildlife Resources Commission (WRC) requesting the County to submit a letter asking the WRC to enforce the No-Wake Zone in Lee's Cut. The No Wake Zone was created by State legislation for Lee's Cut; however, the Board of County Commissioners never explicitly authorized the Sheriff's Department to install No Wake Zone markers. The Sheriff’s Department does not have a problem with enforcement by WRC . Adoption of Local Governmental Resolution Authorizing the Sheriff’s Department to Submit a Grant Application to the North Carolina Governor's Highway Safety Program in the Amount of $27,690 The Commissioners adopted a local government resolution authorizing the Sheriff's Department to apply for $27,690 in grant funds from the Governor's Highway Safety Program to purchase “Stop Stick Rack” kits, which are rubber mats with sharp objects protruding upward to stop vehicle chases through tire deflation. A copy of the resolution is hereby incorporated as part of the minutes and is contained in Exhibit Book XVIII, Page 17.3. Approval of Budget Amendments #2004-07 and#2004-08 for the Sheriff’s Department The Commissioners approved the following Budget Amendments: Budget Amendment #2004-07-Sheriff’s Office Adjustment Debit Credit Controlled Substance Tax $8,038 Capital Project Expense $8,038 Explanation: To increase the budget for additional revenue received on August 5, and July 22, 2003. Controlled Substance Tax funds are budgeted as received and must be used for law enforcement as deemed necessary by the Sheriff. Budget Amendment #2004-08-Sheriff’s Department Adjustment Debit Credit Federally Forfeited Property $2,297 Capital Project Expense $2,297 Explanation: To increase the budget for additional revenue received on July 22, 2003. Federal Forfeited Property funds are budgeted as received and must be used for law enforcement as deemed necessary by the Sheriff. DISCUSSION OF CONSENT ITEM 6 - THE AWARD OF CONTRACT #02-0319 TO DIXIE GENERAL CONTRACTORS FOR CONSTRUCTION OF A PROPERTY STORAGE BUILDING AT THE NEW JAIL SITE Vice-Chairman Greer referenced the agenda sheet for Consent Item 6, which says that the building was removed from the original scope of work to save money, and he asked why this item was placed on the agenda. County Manager O’Neal explained that the storage building was deleted from the J. M. Thompson contract because Staff felt the structure could be constructed for less than $210,000. When rebidding this project as a separate item, the low bidder submitted a bid of $158,800. The storage building is needed and funding is available for the project. He requested the Board to approve the contract. Vice-Chairman Greer expressed appreciation to County Manager O’Neal for the explanation and stated that he was satisfied. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 706 DISCUSSION OF CONSENT ITEM 10 - PROPOSED CHANGE IN TAX VALUE ON R06205-018-006-000 FOR THE BPOE ELKS LODGE #552 Vice-Chairman Greer requested an explanation of how the tax value could be changed after hearing an appeal and rendering a decision at the 2003 Board of Equalization and Review. Tax Administrator Robert Glasgow explained that the former Appraisal Supervisor and Staff visited the property to see if the runoff area identified was adequate to accommodate the runoff from the eastside to the westside of Oleander Drive. Staff determined a specific value and presented that value to the Board of Equalization and Review. In preparation for the appeal to the N. C. Property Tax Commission, the new Appraisal Supervisor visited the site and determined that the size identified for the runoff and usable area was not sufficient because it had been incorrectly calculated. This item was placed on the agenda so the land value of $796,502 could be reduced by $160,729. Vice-Chairman Greer requested Tax Administrator Glasgow to be sure that in the future the correct value is submitted to the Board of Equalization and Review when they hear the appeals so the value does not have to be corrected at a later date. Tax Administrator Robert Glasgow responded that he would present the correct value for future tax appeals. DISCUSSION OF CONSENT ITEM 14 - A REQUEST FROM THE PLANNING AND PARKS DEPARTMENTS TO SUBMIT A GRANT PROPOSAL TO THE N. C. PUBLIC BEACH AND WATERFRONT ACCESS PROGRAM FOR FUNDS TO ACQUIRE LAND ADJACENT TO A COUNTY OWNED 7-ACRE PARCEL ON THE INTRACOASTAL WATERWAY Vice-Chairman Greerexpressed concern for including space in the 7-acre parcel to park 12 to 15 cars in a residential community that could become a problem for that area. He asked if the parking issue had been discussed with the neighbors. Commissioner Caster suggested removing this item from the agenda and discussing it at the next meeting so the neighbors can be made aware of the proposed parking site. County Manager O’Neal requested the Board to wait until the Planning Director was present before deferring action on this item since there could be a deadline on the grant application. After a lengthy discussion, the Board decided to defer action and allow time for Staff to answer this concern whether later in the meeting or at another meeting. DISCUSSION OF CONSENT ITEM 16 - APPROVAL OF REORGANIZATION PLAN FOR THE NEW HANOVER COUNTY JUVENILE DAY TREATMENT PROGRAM TO EXPAND SERVICES AND MAXIMIZE REVENUE POTENTIAL THROUGH MEDICAID BILLING AND APPROVAL OF BUDGET AMENDMENT # 04-0019 Vice-Chairman Greer expressed concern for hiring more people since funding was being cut for this program and requested an explanation of why the County was proceeding in this direction. Deputy County Manager Andrew J. Atkinson explained that the Board of Education has been awarded a Safe Schools Grant of over $1,000,000 for a 3-year period that will pay for three of the new positions and the remaining two positions will be covered under the new Medicaid dollars. All persons hired know that if the funding is stopped, the positions will be eliminated. Vice-Chairman Greer advised that he was satisfied with the explanation. Chairman Davis called for a motion to approve Consent Agenda Items 6, 10, and 16. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to approve Consent Items 6, 10, and 16 as listed below. Upon vote, the MOTION CARRIED UNANIMOUSLY. Item 6: Awarded Contract #02-0319 to Dixie General Contractors, the low bidder, in the amount of $158,800 for construction of the property storage building at the new Jail site and authorized the Chairman to execute the necessary documents. Item 10: Approved a reduction of $160,729 in the tax value for BPOE Elks Lodge #552-R06205-018-006-000 from the previous land value of $796,502. Item 16: Approved the reorganization plan for the New Hanover County Juvenile Day Treatment Program and approved the following new positions: 3 Treatment Supervisors, 1 Fiscal Technician, and 1 Van Driver. The Board also approved associated budget amendment #04-0019 with the understanding that if revenues are not continued, the positions will be eliminated. Budget Amendment #04-0019 - Juvenile Services AdjustmentDebitCredit Title XIX Fees$132,153 Safe Schools Grant$120,773 Salaries and Wages$182,938 Social Security Taxes 13,995 Retirement - Local Government 11,113 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 707 Budget Amendment #04-0019 - Juvenile Services (Cont.) AdjustmentDebitCredit Medical Insurance Expense 44,880 Explanation: To increase the budget for Safe Schools Grant and Medicaid Revenues, and to create a new organizational structure for the Juvenile Day Treatment Center. DISCUSSION OF AGENDA ITEM 8 AND REMOVAL OF AGENDA ITEM 16 FROM THE REGULAR AGENDA Chairman Davis referenced Agenda Item 8 and advised that three projects were placed on the Regular Agenda for improvements to Hugh MacRae Park. At the request of Staff, the project concerning the equestrian ring has been removed to allow more time for issues to be worked out among the parties involved. Chairman Davis referenced Agenda Item 16 and stated at the request of Staff, this item should be removed from the agenda because no offer has been received for the sale of County owned property on Military Cut-Off Road. Commissioner Pritchett requested the County Manager to consider using this property to provide parking for the UNCW Executive Center in lieu of the Northeast Branch Library parking lot used by library patrons. Consensus: After discussion, it was the consensus of the Board to remove the section regarding the equestrian ring at Hugh MacRae Park under Regular Agenda Item 8 and remove Item 16 from the Regular Agenda as requested by Staff. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager O’Neal requested the following employees to step forward to receive service awards: Employee Years of Service Geraldine C. Tyson, Property Management 5 Candace A. Artis, Health Department 5 Joseph L. Jewell, Sheriff's Office 5 Deborah A. Grymes, Planning Department 5 Keith A. Studt, Health Department 5 Rosalyn M. Bauerlein, Health Department 5 Jerry L. Drye, Library 5 Marilyn O. Roberts, Health Department10 Octavia M. Spicer, Social Services10 Jane B. Simcoe, Library10 Michael S. Winebar, Human Resources15 Marie Y. Clarkson, Property Management15 Grady A. Hobbs, Inspections Department15 Kemp P. Burpeau, Legal Department15 David A. Wittenberg, Property Management15 Peggy W. Foose, Social Services Department15 Diane S. Holmes, Social Services Department15 LaWanda Jenkins, Social Services Department15 Loretta B. Murphy, Social Services Department15 Jerome James, Landfill20 Roosevelt Sidberry, Landfill20 Audrey W. Burgess, Property Management20 Donald E. Bryant, Jr., Sheriff's Department20 Rosetta S. Bryant, Human Resources Department20 Delores J. Miller, Environmental Management Department25 Patricia J. Raynor, Tax Department30 Elizabeth P. Summey, Health Department35 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: Adam Cumbo, Fire Services Susan Sanderford , Health Department Jack Paramore, Inspections Department Katherine Norris, Inspections Department Leslie Townsend, Inspections Department Keith Roberts, Property Management Department Wendell Matthews, Property Management Department Mireya Guardino, Social Services Department Patricia Reynard, Social Services Department Brenda Willis, Social Services Department Nicole Johnson, Social Services Department Beverly Strickland, Tax Department NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 708 Bruce Edwards, Water & Sewer Engineering Jeannie Howell, Sheriff’s Department Amy Wrenn, Sheriff’s Department On behalf of the Board, Chairman Davis welcomed these new employees to New Hanover County government and wished them success with their new positions. RECOGNITION OF ENGINEERING DIRECTOR WYATT BLANCHARD FOR DESIGNATION AS BY THE PROFESSIONAL ENGINEERS OF NORTH CAROLINA, “ENGINEER OF THE YEAR” SOUTHEASTERN NORTH CAROLINA CHAPTER Assistant County Manager Dave Weaver announced that County Engineer Wyatt Blanchard has been selected as the “Engineer of the Year” by the Southeastern North Carolina Chapter of Professional Engineers of North Carolina. Chairman Davis presented the plaque to County Engineer Blanchard and stated that New Hanover County was fortunate to have an employee of his caliber. He congratulated him for receiving this outstanding recognition and bringing this honor to the County. A round of applause was given to County Engineer Blanchard. RECOGNITION OF KIM ROANE AND KATHY BUJALKSI FOR RECEIVING 2003 KETNER EMPLOYEE PRODUCTIVITY AWARDS County Manager O’Neal announced that New Hanover County had two employees selected to receive the 2003 N. C. Association of County Commissioners Ketner Employee Productivity Awards. Ms. Kim Roane and her teammates from the Health Department were selected for their Medical Records Bar Coding Project, and Ms. Kathy Bujalksi was cited for her Overdue Book Management by Telephone Project. These innovative County employees were among ten winners selected statewide from 98 projects submitted. In concluding his remarks, County Manager O’Neal requested Ms. Kim Roane and Ms. Kathy Bujalksi to step forward to receive recognition from the Board of County Commissioners. Chairman Davis, on behalf of the Board, congratulated Ms. Kim Roane, an Accountant at the Health Department, for receiving a 2003 Ketner Award for the Medical Records Bar coding Project and stated that New Hanover County was proud of her creative accomplishment. Chairman Davis, on behalf of the Board, presented a plaque and $1,000 check to Ms. Kathy Bujalksi, an Administrative Support Technician at the Main Library, and congratulated her for receiving this outstanding award. He stated that New Hanover County was proud of her creative accomplishment. Vice-Chairman Greer advised that Ketner Employee Productivity Awards are truly outstanding because the recipients who receive these awards are recognized for developing a more innovative way to perform work that saves money for the taxpayers. It is most unusual for two employees from any county to receive Ketner Employee Productivity Awards when 98 applications were submitted from counties throughout the State. For two New Hanover County employees to receive two of the ten awards given is quite an honor and demonstrates the commitment of these employees to their County government. A round of applause was given to Ms. Roane and Ms. Bujalksi. RECOGNITION OF MARK BOYER AND ERIC PETERSON FOR RECEIVING THE NATIONAL ASSOCIATION OF COUNTY INFORMATION OFFICERS 2003 AWARDS OF EXCELLENCE County Manager O’Neal announced that the New Hanover County Government Access Television System was selected to receive awards by the National Association of County Information Officers for two television projects in the “2003 Awards of Excellence” program. The National Association of County Information Officers is an affiliate group of the National Association of Counties. The County program "A Forever Family" was selected as "Excellent", and the public service announcement “Am I Safe” was selected "Superior”. He requested Public Information Officer Mark Boyer and TV Production Specialist, Eric Peterson to step forward. Public Information Officer Mark Boyer reported that the production of A Forever Family required approximately ten months to complete. This program was about foster care and adoption of children in New Hanover County and it reflected an in-depth look at services provided by the Department of Social Services. The Am I Safe public service announcement will be entered in the 2003 Emmy Award program. On behalf of the Board, Chairman Davis congratulated Mark Boyer and Eric Peterson for receiving these outstanding awards, and thanked them for providing an excellent County Government Access Television System to the citizens of New Hanover County. A round of applause was given to Mr. Boyer and Mr. Peterson. INTRODUCTION OF MR. RICHARD MYERS, INTERIM CHIEF EXECUTIVE OFFICER (CEO)OF THE NEW HANOVER REGIONAL MEDICAL CENTER County Manager O’Neal formally introduced Mr. Richard Myers, Interim CEO of the New Hanover Regional Medical Center, and stated that Mr. Myers would like to make a few remarks. On behalf of the Board, Chairman Davis welcomed Mr. Myers to New Hanover County. Mr. Myers expressed appreciation to the Board of County Commissioners for inviting him to the meeting and NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 709 stated that he was glad to be in New Hanover County. He informed the Board that he was in the process of retiring when he was called about serving as the Interim CEO at New Hanover Regional Medical Center. When checking the website, he found that the hospital was financially in sound condition; however, when arriving to work a few months later, he found there was a serious budgeting problem and that the Federal Trade Commission (FTC) was in the process of reviewing a matter that involves the Medical Center. These are serious items that can be resolved if each issue is viewed as a problem instead of a crisis. The community is up to the challenge and the hospital staff will be successful in getting this health care system back on track. In closing, Mr. Myers reported that the search for a permanent CEO was moving forward, and stated that he was glad to have an opportunity to serve in this interim position and work with the Board of Trustees, Medical Center Staff, Medical Center employees and County Commissioners in resolving these issues. Commissioner Boseman, the Commissioner representative on the Medical Center Board of Trustees, stated that Mr. Myers was doing an excellent job and the hospital employees would like for him to stay. Chairman Davis expressed appreciation to Mr. Myers for accepting the interim position and stated that the Commissioners look forward to working with him and the Medical Center Board of Trustees to move the Medical Center forward because the hospital is a valuable asset to New Hanover County. ADOPTION OF PROCLAMATION IN SUPPORT OF THE BOARD OF EDUCATION’S COMMITMENT TO ELIMINATE THE ACHIEVEMENT GAP IN NEW HANOVER COUNTY SCHOOLS County Manager O’Neal advised that Ms. Veronica McLaurin-Brown, Special Assistant to the Superintendent of New Hanover County Schools, was present and would make a presentation. He also noted that Superintendent John Morris had called and apologized for not being able to attend the meeting due to a prior engagement. Chairman Davis welcomed Ms. McLaurin-Brown and requested her to step forward to make the presentation. Ms. McLaurin-Brown reported that Dr. John Morris, Superintendent of Schools, made a presentation to the Board of Education on August 5, 2002, responding to questions from the Wilmington community about the need to close the achievement gap between black students and white students. During the presentation, a comparative overview of local, state, and national student achievement scores and the achievement levels that exist in New Hanover County were shown. In order to resolve this problem, Dr. Morris suggested forming a core group consisting of educators, community leaders, parents, and interested citizens to identify issues contributing to the achievement gap in the New Hanover County School System and to develop strategies to address these issues. On August 27, 2002, the New Hanover County School Closing the Gap Core Group held its first meeting to begin discussing the achievement gap between white and black students. After meeting for many months, three major conclusions were reached: 1. It is possible to eliminate the achievement gap in all New Hanover County Schools. 2. The degree to which the achievement gap is eliminated will shape the quality of life for all residents of New Hanover County and define business development in the community for the next several years. 3. Eliminating the achievement gap will require a committed collaborative effort among New Hanover County Schools, County and City elected officials, business and community leaders, and parents. In closing, Ms. McLaurin-Brown requested the Board to adopt a proclamation supporting the Board of Education’s commitment to eliminating the achievement gap in New Hanover County. Chairman Davis expressed appreciation to Ms. McLaurin-Brown for the presentation and read the proclamation into the record. He called for a motion to adopt the proclamation. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Boseman, to adopt the proclamation in support of the Board of Education’s commitment to eliminate the achievement gap in New Hanover County Schools. Upon vote, the motion CARRIED UNANIMOUSLY. Chairman Davis, on behalf of the Board, presented the proclamation to Ms. McLaurin-Brown. A copy of the proclamation is hereby incorporated as part of the minutes and is contained in Exhibit Book XVIII, Page 17.4. BREAK Chairman Davis called a break at 10:30 a.m. until 10:45 a.m. APPROVAL OF CHANGES TO PARK POLICIES FOR HUGH MACRAE PARK, AWARD OF CONTRACT TO PURCHASE PLAYGROUND EQUIPMENT FOR HUGH MACRAE PARK AND APPROVAL FEE SCHEDULES FOR COUNTY PARKS Chairman Davis again announced that the equestrian portion of the proposed policy had been removed and would be discussed at a future meeting. Parks Director Neal Lewis reported that the Parks and Recreation Advisory Board has discussed and approved the following items to improve the County Parks: 1. Installation of Gates at Hugh MacRae Park Parks Director Lewis explained that with the installation of gates in the new parks, the Parks and Recreation NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 710 Advisory Board has found that being able to open gates at 6:45 a.m. in the morning and close the gates at midnight has deterred loitering, vandalism and other problems that occur at parks after operating hours. After discussion with the Sheriff, it is felt that gates at Hugh MacRae Park should be opened at 6:45 a.m. and closed at 12:00 midnight to better control activities that occur in the park at night. If the Board approves this request, persons using the park as a shortcut to Roland Grise School will still be able to use this route. Parks Director Lewis requested the Board to authorize the Parks Department to close the gates at entrances to Hugh MacRae Park as proposed. Chairman Davis asked if any member of the Board had any questions concerning the opening and closing of the gates at Hugh MacRae Park. Commissioner Pritchett asked who would be responsible for opening and closing the gates. Parks Director Lewis responded that the Sheriff’s Department will be responsible for closing the gates at midnight and the Parks Staff will open the gates in the morning at 6:45 a.m. Hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to authorize Staff to open the gates at entrances to Hugh MacRae Park at 6:45 a.m. and close the gates at 12:00 midnight 365 days a year. Upon vote, the MOTION CARRIED UNANIMOUSLY. 2. Bid Award for Playground Equipment at Hugh MacRae Park Director Lewis reported that renovations are taking place at Hugh MacRae Park and the playground equipment needs to be replaced. He presented a color rendition of the proposed playground equipment and requested the Board to award the low bid to the Miracle Equipment Company in the amount of $89,747.52. He advised that the cost of the equipment had been included in the current fiscal year budget. Chairman Davis asked if any member of the Board would like to comment. Commissioner Pritchett asked when the playground project would be completed. Parks Director Lewis responded that the work should be completed by the end of year. Hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Caster, to award the low bid to Miracle Equipment Company in the amount of $89,747.52 to purchase the playground equipment for Hugh MacRae Park and authorize the County Manager to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract is on file in the Legal Department. 3. Athletic Tournament Fee Schedule and Major Event Rental Fees Parks Director Lewis presented the Athletic Tournament Fee Schedule and Mayor Event Rental Fee Schedule and reported that the number of tournaments being held at County parks has increased dramatically over the past two years. With reservation requests for the coming year showing a continued increase, the Parks Department cannot financially support the tournaments being held. The proposed fee schedule will pass some of these costs to visiting teams and sponsors of tournaments. In turn, the Parks Department will be able to provide more adequate services for these events. These fees are primarily in place for athletic events and tournaments where the participants are from outside New Hanover County. The fees will be applied to any post season tournament or extra tournament that is not part of the regular schedule for all teams using the athletic fields regardless of whether it is baseball, softball, rugby, soccer or football. For example, if a local Optimist Club decides to host a district, regional, or state tournament that extends the season and increases the costs for the Parks Department, the fee will be applied. Parks Director Lewis reported that discussion has been held with the various groups that host the tournaments and they are not entirely pleased with the fee schedule. However, if fees are not charged, the budget for the Parks Department will have to be increased or the County will have to say “no” to many of the activities. If a fee schedule is adopted, the Parks Department will provide a facility to the sponsor(s) and charge a fee based on the number of athletic fields used, the number of teams in a tournament, use of park concession stands, and repair and maintenance of the fields. After researching the fees charged for use of county and city facilities for athletic events throughout the State, it was found that the proposed fees are lower than most fees being charged. Chairman Davis asked if any member of the Board would like to comment. Commissioner Caster asked how much equipment was provided in the County owned concession stands. Parks Director Lewis responded that sinks and hot water heaters are provided in the concession stands and no equipment is provided for food services. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 711 Hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Caster, to approve the fee schedule as presented and approved by the Parks and Recreation Advisory Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. Copies of the fee schedules are on file in the Parks Department. APPROVAL OF AMENDMENTS TO THE NEW HANOVER COUNTY POLICY AND PROCEDURES FOR APPOINTMENTS TO COUNTY BOARDS, COMMISSIONS, COMMITTEES OR AUTHORITIES Clerk to the Board, Lucie F. Harrell requested the Board to approve the following changes in the Policy and Procedures for Appointments to County Boards: Section 1 - G: Incorporation of the "Conflict of Interest" language into the Policy for Appointments to County Boards. Section 2 -A(1): Remove the word "quarterly" since advertising for boards is required more frequently. Section 3 -A(3) Delete the language noting that Certificates of Appreciation for service on a board would be presented at regular meetings since a letter and Certificate of Appreciation are signed by the Chairman and mailed to a former member. Ms. Harrell advised that the web site has been changed to reflect that the Cape Fear Museum Board of Trustees had become the Cape Fear Museum Advisory Board. The Committee Brochure is in the process of being changed to reflect the correct name, term of office, qualifications, compensation, date, time and place of regular meetings, and functions. The Conflict of Interest clause has been included as part of the Committee Application. Commissioner Pritchett suggested amending the Compensation Section for the Museum Advisory Board to say that compensation can be made for “approved” expenses instead of actual expenses in the performance of their duties. Ms. Harrell advised that she would be glad to make the change. Hearing no further comments, Chairman Davis called for a motion. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Boseman, to approve the recommended changes to the New Hanover County Policy and Procedures for Appointments to County Boards, Commissions, Committees or Authorities and amend the compensation section to say members of the Museum Advisory Board will be reimbursed for “approved expenses” incurred in the performance of their duties. Upon vote, the MOTION CARRIED UNANIMOUSLY. COMMITTEE APPOINTMENTS Appointment of Kay Stewart to Serve on the Adult Care Home Community Advisory Committee Chairman Davis announced that up to four vacancies needed to be filled on the Adult Care Home Community Advisory Committee. He reported that only one application had been received in the name of Kay Stewart and he urged Ms. Harrell to continue to recruit applicants. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to appoint Kay Stewart to serve an initial one-year term on the Adult Care Home Community Advisory Committee with the term to expire August 31, 2004. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointments to the Board of Examiners of Electricians Chairman Davis announced that two vacancies needed to be filled on the Board of Examiners of Electricians in the category of electrical contractors. One new application in the name of Marvin E. Harris has been received and two current members, Charles L. Robbins and James B. Steele have notified the Clerk that they are willing to serve a third term. He advised that the Commissioners have tried to allow members on various board to serve only two terms, but in some circumstances, this has not been possible. Chairman Davis asked if the Board would like to proceed with appointments or request the Clerk to re-advertise for the two positions. Commissioner Caster advised that due to the lack of applications received for electrical contractors in the past, the two current members would normally be reappointed to serve a third term; however, since a new application has been received, it will be difficult to make a choice between Mr. Robbins and Mr. Steele. Chairman Davis opened the floor to receive nominations. Commissioner Pritchett nominated Marvin E. Harris. The nomination was seconded by Vice-Chairman Greer. Hearing no further nominations, Chairman Davis declared the nominations closed and called for a vote on the appointment of Mr. Marvin E. Harris. Vote: The Board voted unanimously to appoint Mr. Marvin E. Harris to serve a 2-year term on the Board of Examiners of Electricians as the representative for the Electrical Contractor category with the term to expire September 1, 2005. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 712 Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis asked if the Board would like for the Clerk to re-advertise to recruit applications. After discussion of choosing between Mr. Robbins or Mr. Steele for the remaining vacancy, the Clerk to the Board Lucie F. Harrell advised that she would be glad to check with the Inspections Department to see if both members were truly interested in serving a third term. Consensus: It was the consensus of the Board to consider filling the remaining vacancy at the September 15, 2003 meeting. Appointments to the Board of Mechanical Examiners Chairman Davis announced that three vacancies needed to be filled on the Board of Mechanical Examiners, two in the Mechanical Contractors category and one in the N. C. Registered Mechanical Engineer category. He reported that four applications were received with two applicants, Donald K. Lewis and James Steele Williams, III, desiring to be reappointed in the Mechanical Contractors category. No new applications were received for the N. C. Registered Mechanical Engineer category. He advised that Mr. David Sims has notified the Clerk that he would be willing to serve another term in that category. Chairman Davis opened the floor to receive nominations. Commissioner Caster nominated Donald K. Lewis and James Steele Williams, III for reappointment. The nominations were seconded by Commissioner Boseman. Hearing no further nominations, Chairman Davis declared the nominations closed and called for a vote on the reappointment of Mr. Lewis and Mr. Williams. Vote: The Board voted unanimously to reappoint Donald K. Lewis and James Steele Williams, III to serve 2-year terms on the Board of Mechanical Examiners in the Mechanical Contractors category with the terms to expire August 31, 2005. After discussion of no new applications for the N. C. Registered Mechanical Engineer vacancy, Commissioner Caster nominated David Sims for reappointment. The nomination was seconded by Vice-Chairman Greer. Chairman Davis called for a vote on the reappointment of Mr. David Sims. Vote: The Board voted unanimously to reappoint Mr. David Sims to serve a 2-year term on the Board of Mechanical Examiners in the N. C. Registered Mechanical Engineer category with the term to expire August 31, 2005. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointment of Karen L. Simmons to Serve on the Commission for Women Chairman Davis announced that an unexpired term on the Commission for Women needed to be filled and stated that three applications have been received. Chairman Davis opened the floor to receive nominations. Commissioner Pritchett nominated Karen L. Simmons. 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 Karen L. Simmons to fill the unexpired term of Suzanne J. DeMint on the Commission for Women with the term to expire May 31, 2004. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointment of David Nathans to Serve on the Inspections Department Advisory Council Chairman Davis announced that one vacancy needed to be filled on the Inspections Department Advisory Council. He reported that only one application was received. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Caster, to appoint David Nathans to serve a 3-year term on the Inspections Department Advisory Council with the term to expire July 31, 2006. Upon vote, the MOTION CARRIED UNANIMOUSLY. APPROVAL OF CONSENT ITEM 14, A GRANT PROPOSAL FOR THE N. C. PUBLIC BEACH AND WATERFRONT ACCESS PROGRAM Chairman Davis reported that Vice-Chairman Greer had questioned whether the neighbors were aware that the proposed property was to be used for parking for the waterfront access. Planning Director Dexter Hayes responded that since the County has not purchased the property, no plan has been developed. Once the property is purchased, the parking issue will be discussed. He informed the Board that New Hanover County acquired the larger tract consisting of seven acres (two islands) and the bridge over to the island with FEMA buy-out funds. When submitting the pre-grant application to the State in May 2003, the State was informed that the County would consider acquiring adjacent properties comprised of .06 of an acre so it could be used for parking in the future since the County owns the waterfront. If the County does not acquire this property, homes will probably be constructed on the vacant parcels. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 713 County Manager O’Neal spoke on visiting the site and stated that the property is a natural and unique piece of land that could be used as a passive public access to the Intracoastal Waterway. Planning Director Hayes noted that with continued growth in New Hanover County, people want passive waterfront access. Currently, there is no public access on the sounds or Intracoastal Waterway between Wrightsville Beach and Carolina Beach. He suggested that the County has a perfect opportunity to provide waterfront access between the two beaches. Vice-Chairman Greer expressed concern for the federal government through FEMA allowing the County to acquire homes in low-lying areas. Once the property is purchased, the County will make improvements to the land, such as a passive waterfront access, and no other persons are allowed to purchase the property. He stated that after visiting the property, he would like to live in the house on the property because the area is beautiful. It seems unfair for the government to prevent any person from living on the property and then provide funds to the County to purchase the property so it can be used by the County for a public waterfront access. Planning Director Hayes advised that FEMA was interested in purchasing the property because the property owner had repetitively filed claims to the federal flood insurance agency. The house has washed away and been rebuilt at least three times from hurricane events. The house has already been removed from the property. Vice-Chairman Greer noted that he did not know the house had been removed. Planning Director Hayes responded that numerous discussions were held with FEMA about saving the house and an appeal was made to FEMA in Raleigh to allow the house to remain on the property. The appeal was denied and the house had to be removed to keep the grant funds. In discussion of finding a parking site on the island instead of purchasing more property, Planning Director Hayes explained that the existing bridge had washed away two times during hurricane events, and the condition of the current bridge is questionable. Once a plan is developed, there could be some limited parking on the island, but it would be better to provide parking off the island and allow people to walk over the bridge to the waterfront. County Manager O’Neal explained that a foot bridge would be better for the County’s exposure because there could be liability involved with vehicles using the bridge. The purchase of the .06 acre to be used for parking will provide a manageable parking situation particularly if the bridge should wash away during a hurricane event. Commissioner Caster spoke on the need to purchase additional property to provide parking to prevent people from parking along the side of River Road to access the Intracoastal Waterway. He also noted that the County would be less liable with the bridge being used as a foot bridge. Commissioner Pritchett stated that she felt to purchase the property for a parking area would be more satisfactory with surrounding neighbors. Chairman Davis asked if the property could be developed. Planning Director Hayes responded that the property cannot be developed because a portion of the property must remain open space, and under the agreement with FEMA the remaining property cannot be sold by the County. Chairman Davis asked if N. C. Clean Water Management Trust Funds could be used to purchase the property. Planning Director Hayes responded that the Clean Water Management Trust Funds could not be used for this project because the property acquired must improve the water quality in an estuarine creek or at the headwaters of a creek. Purchasing waterfront property does not improve water quality unless the water runs into an estuarine creek. Hearing no further comments, Chairman Davis requested direction from the Board. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to authorize the Planning and Parks Departments to submit a final grant application for acquisition of additional land adjacent to the seven acres already purchased by the County to provide a public access to the Intracoastal Waterway. Upon vote, the MOTION CARRIED UNANIMOUSLY. BREAK Chairman Davis called a break from 10:50 a.m. until 11:05 a.m. APPROVAL OF A NEW PROJECT ENGINEER POSITION FOR THE WATER AND SEWER DISTRICT ITEM (ITEM REMOVED FROM WATER AND SEWER AGENDA TO REGULAR AGENDA) Chairman Davisexplained to the audience that this item was removed from the Water and Sewer Agenda because the position to be filled will be a County employee. He requested County Engineer Wyatt Blanchard to present the request for the new Project Engineer position. County Engineer Blanchard reported that with increased growth of the Water and Sewer District, the number of water and sewer projects has increased which requires planning, design, construction, and operations of the system. The District is also receiving more drainage complaints that involve a great deal of Staff’s time. To maintain this increased workload, a new Project Engineer position is needed. He advised that the position would be funded with revenue from the Water and Sewer District. County Manager O’Neal informed the Board that an additional Project Engineer position in the Water and NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 714 Sewer District has been needed for several years. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Pritchett, to approve the new Project Engineer position for the Water and Sewer District at a pay grade of $48,922 to $75,046. Upon vote, the MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING TO CONSIDER THE 2003-2004 N. C. DEPARTMENT OF TRANSPORTATION (NCDOT) SECONDARY UNPAVED ROAD CONSTRUCTION PROGRAM FOR NEW HANOVER COUNTY Chairman Davis opened the Public Hearing and welcomed Mr. Lanny T. Wilson, a member of the N. C. Department of Transportation Board, Mr. H. Allen Pope, PE, Division Engineer, and Mr. Daniel R. Cumbo, P.E., District Engineer. Mr. Lanny Wilson stated that it was a pleasure to present the 2003-2004 Secondary Road Construction Program for New Hanover County. He noted that before asking Mr. Daniel R. Cumbo to present and review the Secondary Road Construction Program, he would like to discuss the need to solve the transportation problem on the Military Cut-Off Road extension. This road is now carrying over three times its capacity and the NCDOT Board is working diligently to develop a plan to widen and improve the road. The plan should be ready by October 2003. An effort is being made to move the project from June to March 2004 so the bidding process can begin. Mr. Wilson advised that in the future, there will be 60,000 cars a day on Military Cut-Off Road running into Market Street with no place for the traffic to go. The proposed Military Cut-Off Road extension will tie into the Bypass, and the County is currently working to preserve a corridor 80 feet wide which will only accommodate a two-lane road. The Military Cut-Off Road extension needs to be a four-lane divided highway and a corridor of 150 feet should be preserved. Last week, a feasibility study was initiated and it will be completed by March 2004. In closing, Mr. Wilson requested the Board of County Commissioners to work with the NCDOT to preserve a 150 foot corridor so the Military Road Cut-Off extension can become a four lane divided highway that will allow the traffic to move to the Bypass. He also noted that after several engineers from Raleigh visited the area and reviewed the proposed extension, it was suggested that a corridor map should be prepared and recorded to provide three years to study the proposed extension with no construction during that period of time. Currently, there are platted lots in the corridor and hopefully the sufficient rights-of-way can be purchased to provide a road to accommodate current and future traffic needs. Discussion was held on who should be the entity to reserve the corridor. Mr. Wilson advised that Wake County was working with the NCDOT on one of its major roads. It is hoped that the Attorney General will allow New Hanover County to assist with preserving the corridor. Once the letter is received, the Commissioners will be notified. Vice-Chairman Greer stated that it was his understanding that New Hanover County could not delay development along Military Cut-Off Road for more than one year. Commissioner Caster requested the members of the Board to place this item on another agenda to clarify the time frame to be sure whether it is one or three years. There is a difference in denying property owners their rights for three years instead of one year. This is a serious matter that needs to be thoroughly discussed by the County Commissioners. Mr. Wilson responded that a process is in place to allow a 3-year window in which to make a decision. This is a new procedure and it is the only chance that the NCDOT and New Hanover County will have to widen the Military Cut-Off Road to a four-lane divided highway. This road is the only realistic connection to the Bypass that will occur. Chairman Davis commented on the need to relieve traffic on Military Cut-Off Road and stated if the Commissioners support the County assisting with preserving rights-of-way (if authorized by the Attorney General) developers who already have future plans for development should be immediately notified. He also requested Mr. Wilson to present more definitive information to the Board so this issue can be addressed. Mr. Wilson advised that he had requested the Attorney General to provide more information so the County Manager and County Attorney could review the proposal before it is presented to the Board of County Commissioners. He advised that he did not expect the Commissioners to make a decision today and stated that once the information is available, it will be forwarded to the Board. In closing, Mr. Wilson advised that NCDOT was looking forward to working with the County Commissioners in addressing the drainage issues in the Castle Hayne area. The State has committed to provide funding between $20,000 to $30,000 for the drainage project. Chairman Davis expressed appreciation to Mr. Wilson for the presentation. Mr. Allen Pope, PE, Division Engineer, expressed appreciation to the Commissioners for the services rendered to New Hanover County. He referenced the comment by Mr. Wilson regarding the drainage project for Castle Hayne and stated the State funds will be used for work within the rights-of-way in the Runnymeade Subdivision. In closing Mr. Pope requested Mr. Daniel R. Cumbo to present the 2003-2004 Secondary Road Construction Program for New Hanover County. Mr. Cumbo reported that N.C.G.S. 136-44.5 required the Department of Transportation before July 1 each calendar year to make a study of all state-maintained unpaved roads in order to determine the unpaved mileage in each NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 715 county. Each county’s allocation is determined by dividing the total allocation by the statewide mileage times the number of miles in each county. Secondary road construction allocations are based upon the amount of revenue generated by the gasoline tax. The final total will not be known until the end of the current fiscal year, ending June 30, 2004. Should there be a significant change in the county allocation, that county will be informed of any adjustment in the Secondary Road Construction Program for 2003-2004. Based upon an unpaved mileage of approximately 1.29 miles in New Hanover County, compared to unpaved miles statewide, the secondary road allocation is estimated at $18,000 which is expected to be approved at the July meeting of the N. C. Board of Transportation. The N. C. Board of Transportation has elected to continue paving projects as listed on the paving priority lists of last year. These lists are based on a paving priority rating system that allocates two paving priorities in each county, one for rural roads and one for residential/subdivision roads. The Board now requires a separate listing of roads for each county showing the roads which have been previously skipped over for paving because the rights-of-way were not available. Although these roads will not be shown on either of the two paving priority lists, provisions have been made for any such road to be reinstated to its prior position at such time as the right-of-way becomes available, or as soon thereafter as reinstatement can be administratively accomplished. The following road program was presented: Estimated Total Allocation$18,000 Highway Fund$9,800 Highway Trust Fund $8,200 Spot stabilization, paved road improvements, replacement of small bridges with pipe, safety projects, etc. Estimated Cost$ 2,000 $16,000 Subdivision Roads: Priority #1F(S) - SR 1334 - Sondey Road Grade, Drain, Base, Pave & Erosion Control From SR 1921 to 0.13 miles easterly Estimated Cost$16,000 -0- Note: This project will require additional funding. This is a portion of the road currently on the Hold List, but the right-of-way has been acquired. Total Mileage: 0.13 In concluding the presentation, Mr. Cumbo expressed appreciation to the Board of County Commissioners for an opportunity to present the 2003-2004 Road Construction Program and stated if any changes occur in the program, the Board will be notified. Chairman Davis announced that this was a Public Hearing and he asked if anyone from the audience would like to speak in favor of the Road Construction Program for New Hanover County. Hearing no comments, Chairman Davis asked if anyone from the public would like to speak against the Road Construction Program for New Hanover County. Hearing no comments, Chairman Davis closed the Public Hearing. Chairman Davis asked if any member of the Board would like to comment on the proposed program. Hearing no comments, he requested direction from the Board. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Caster, to adopt the resolution accepting the 2003-2004 NCDOT Secondary Unpaved Road Construction Program for New Hanover County as presented. 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 17.5. PUBLIC HEARING TO CONSIDER REQUEST FROM ANTHONY SAFFO TO AMEND THE PERMITTED USE TABLE OF THE NEW HANOVER COUNTY ZONING ORDINANCE TO ALLOW “ADULT ENTERTAINMENT ESTABLISHMENTS” BY SPECIAL USE PERMIT IN THE I-2 HEAVY INDUSTRIAL DISTRICT (A-330, 07/03) Chairman Davis opened the Public Hearing and requested Planning Director Dexter Hayes to make the presentation. Planning Director Hayes reported that the proposed request is a simple text change in the Table of Permitted Uses, but it has some far reaching implications. Currently, Adult Entertainment Establishments are only permitted in NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 716 the I-1 Light Industrial District and the applicant has requested these establishments to be permitted in I-2 Heavy Industrial District. At the Planning Board meeting held on July 10, 2003, the applicant presented his request. Discussion was held about permitted uses and the dimensional requirements for Industrial Districts, which are heavy manufacturing districts that are found on the US Highway 421 Corridor, Blue Clay Road, Sidbury Road and properties near the Wilmington International Airport. The Planning Board concluded that allowing Adult Entertainment Establishments by Special Use Permit was reasonable in the Heavy Industrial District because the Board of County Commissioners would be able to review any proposed plans through the Special Use Permit process. The Planning Board voted 5 to 0 to recommend approval. Staff felt that changing the Table of Permitted Uses to allow Adult Entertainment Establishments in I-2 Heavy Industrial District would promote this type of use in a larger portion of the County. Since these establishments are already permitted in the I-1 Light Industrial District, Staff felt it was not necessary to expand the use into the I-1 Heavy Industrial District and recommended denial of the request. In closing, Planning Director Hayes advised that background information on the definition of an Adult Entertainment Establishment was provided to the Board of County Commissioners showing the kinds of uses that would be allowed as well as the conditions that would have to be reviewed when an application is received. Chairman Davis noted that Staff recommended denial because the use would not be consistent with the Land Use Plan as it related to a permitted use in a heavy industrial district. Planning Director Hayes agreed with the statement made by Chairman Davis and explained that permitting this use would preempt other industrial manufacturing opportunities. The major reason for the I-2 Heavy Industrial classification is to provide large sites at least 10 to 30 acres for heavy manufacturing industry. Small retail uses are not encouraged to locate in I-2 Districts. He advised that the use is not inconsistent with the Land Use Plan, but the intended purpose for the I-2 Heavy Industrial District is to provide land for large manufacturing companies. Chairman Davis announced Mr. Anthony Saffo had signed up to speak. Mr. Anthony A. Saffo, an attorney and property owner in New Hanover County, presented a map to the Commissioners and stated that he owned a 10-acre tract located in an I-2 Heavy Industrial District on Castle Hayne Road near the NCDOT site. He advised that he had been approached by a person interested in leasing some acreage for the purpose of renting adult videos with no live entertainment. Since this use is considered an Adult Entertainment Establishment, a petition had to be submitted to the Planning Board to allow this use in an I-2 District. After further researching the use because of the impact on the County, he spoke with a former City Councilman to see how the City of Wilmington addressed this issue. He was informed that the City intentionally opened up the LM and HM Zones (counterparts to the I-1 and I-2 Districts in the County) for the Adult Entertainment Establishments with the purpose of ultimately moving these uses into the industrial sectors of the City away from Market Street and College Road. Approval of the change in the Permitted Use Table would place this use in industrial zones which should reduce the number of people visiting these establishments. Mr. Saffo advised the Star News would have the citizens believe that he was seeking a loosening on where Adult Entertainment Establishments could be located and that he was trying to turn Wilmington into another Myrtle Beach, which is not true. He referenced the map identifying the I-2 Zone where his property is located and stated that the purpose of the Special Use Permit is to allow the Board of County Commissioners to review each petition to be sure all requirements are met such as the Adult Entertainment Establishment being at least 1,000 feet from a school, 1,000 feet away from a church, and 1,000 feet from each other. Mr. Saffo advised that discussion was held at the Planning Board meeting on swapping the zoning from I-2 to I-1; however, there was concern for creating non-conforming uses that would have to be grandfathered in the districts. Another objection raised at the Planning Board meeting was that retail uses are inconsistent with I-2 uses, which may or may not be the case because there are retail uses in conjunction with industrial uses in the I-2 zones. In reviewing the general purpose of the I-2 Heavy Industrial District, the ordinance says that the I-2 District is designed for uses that generate odors, noises, and other objectionable uses. Mr. Saffo stated that many people would find an Adult Entertainment Establishment an objectionable use, but he would submit that it is a sensitive use because some people are offended and others are not. In closing, Mr. Saffo referenced the map and stated that much of the land backs up to the Cape Fear River with environmental concerns that render the land unuseable. The majority of the I-2 uses are currently located in areas near schools and churches. If the Table of Permitted Uses is amended to allow Adult Entertainment Establishments in I-2 Zones, the Special Use Permit requirements will prevent these establishments from being located near schools and churches. He requested the Board to approve his request. Chairman Davis asked if any member of the Board had any questions or comments. Hearing no comments, Chairman Davis asked if anyone from the audience would like to speak in favor of the request. Hearing no comments, Chairman Davis asked if anyone from the audience would like to speak in opposition to the request. Mr. Thomas A. Radewicz, a resident speaking on behalf of the citizens in the Castle Hayne, advised that he owned property in this area and stated that if this use is permitted in the Table of Permitted Uses, it will open the door NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 717 for Adult Entertainment Establishments to move into the Castle Hayne area. He urged the Board to deny the request. Mr. Tom Scott, a resident of 3705 Amber Drive, stated that he resided in the City of Wilmington and he was speaking because he felt the issue was important. Adult Entertainment Establishments as defined in the agenda are very graphic and not a desirable use that is compatible with the area. With continued growth in the County, Castle Hayne and the northern part of the County will rapidly develop. These establishments can have negative effects on property value, quality of life, crime, and the image of New Hanover County. As an area that relies on clean industry and tourism, additional Adult Entertainment Establishments are not needed. Pure Gold is the first thing a visitor sees when entering the area off I-40, and the County does not want to become another Myrtle Beach. As quoted in the Star News: “Myrtle Beach has the glitz and New Hanover County has the glamour.” The County is fortunate to have the Cape Fear Museum, USS North Carolina Battleship, Ft. Fisher Aquarium and a movie studio as tourist attractions. He requested the Board to deny the request to keep more Adult Entertainment Establishments out of New Hanover County. Chairman Davis asked Mr. Saffo if he would like time for a rebuttal to the remarks made by Mr. Radewicz and Mr. Scott. Mr. Saffo responded that he had no further comments. Chairman Davis asked if any members of the Board would like to comment. Hearing no remarks, Chairman Davis closed the Public Hearing and requested direction from the Board. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Pritchett, to deny the request. Upon vote, the MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING TO CONSIDER A REQUEST FROM THE PLANNING DEPARTMENT TO AMEND SECTION 23-42 OF THE ZONING ORDINANCE, CHANGING THE DEFINITION OF “YARD” TO ALLOW HVAC UNITS ATTACHED TO THE PRINCIPLE DWELLING UNIT AS A PERMITTED USE IN THE SIDE YARD (A-331, 07/03) Chairman Davis opened the Public Hearing. Planning Director Hayes reported that this was an administrative text amendment driven by the new flood plain regulations regarding the elevation of heating and air-conditioning units. These regulations have created some problems in trying to attach HVAC systems to larger houses constructed on waterway and oceanfront properties. The proposed text amendment would allow the elevated HVAC to comply with flood plain regulations and the units to encroach in the side yard. The Planning Board voted 5-0 to approve the following text amendment requiring a minimum space of at least five feet from an adjoining property: HVAC units elevated to comply with flood plain regulations may be permitted in any side yard provided the supporting structure is at least five (5) feet from the adjoining property line. Heating and air-conditioning units elevated to comply with flood plain regulations may be permitted in any side yard provided the supporting structure is at least ten feet from any other single-family dwelling. Chairman Davis asked if any member of the Board would like to comment. Commissioner Pritchett asked if the text amendment applied only to properties in the flood plain. Planning Director Hayes responded that the text amendment would only apply to properties in the flood plain. He explained that in the past when an HVAC unit could not comply to the new flood plain regulations, the petitioner would have to appeal to the New Hanover County Zoning Board of Adjustment for a variance. The Planning Board and Planning Staff felt that the proposed text amendment would be a better way to handle these situations. During the past six months, the Zoning Board of Adjustment has heard approximately four cases. Hearing no further comments, Chairman Davis asked if anyone from the audience would like to speak in favor of the text amendment. Hearing no comments, Chairman Davis asked if anyone from the audience would like to speak in opposition to the text amendment. Hearing no comments, Chairman Davis requested direction from the Board. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to approve the text amendment as recommended by the Planning Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the text amendment is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVIII, Page 17.6. APPROVAL OF CONTRACT #04-0048 WITH COTTRELL CONTRACTING COMPANY FOR DREDGING OF INTRACOASTAL WATERWAY ASSOCIATED WITH THE MASON INLET RELOCATION PROJECT AND APPROVAL OF BUDGET AMENDMENT #2004-05 County Project Engineer Greg Thompson reported that on May 19, 2003, the New Hanover County Board of Commissioners instructed Staff to seek bids for the dredging of the Intracoastal Waterway associated with the Mason Inlet Relocation Project. Pursuant to Condition No. 17 of the Permit issued by the U. S. Army Corps of Engineers, New NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 718 Hanover County is required to remove shoaled material from the Atlantic Intracoastal Waterway(AIWW) in order to maintain safe and efficient navigation. Project Engineer Thompson advised that Staff publicly opened the bids on July 21, 2003, and Cottrell Contracting Company of Chesapeake, Virginia was the successful low bidder in the amount $240,775. He requested the Board to award the contract to the low bidder and stated that Figure Eight Island was contractually obligated to pay for this work Chairman Davis expressed concern for the increase in the assessment to Figure Eight Island and stated he wanted to be sure that the properly owners were informed. Commissioner Pritchett asked if the County had used Cottrell Contracting Company in other dredging projects. Project Engineer Thompson responded that New Hanover County had not worked directly with Cottrell Contracting Company, but the company was currently under contract with the Corps of Engineers to perform dredging in the waterway. Vice-Chairman Greer advised that he was also concerned about the additional costs of the inlet project and the increased costs to residents of Figure Eight Island. He urged Staff to work with Corps of Engineers to see if the conditions can be modified. Project Engineer Thompson responded that Staff worked with the Corps of Engineers to see if some of the conditions could be modified. There is sufficient data now from the previous year’s information to determine how the inlet performed, which will help the Corps decide if some modifications can be made. Vice-Chairman Greer expressed concern for the 50 cents difference in the attached budget amendment and asked if this made a difference. Finance Director Shell explained the budget amendment had been rounded off by 50 cents and said it would not make a difference since the budget amendment is not part of the contract. After hearing no further comments from the Board, Chairman Davis called for a motion. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to award the dredging contract to Cottrell Contracting Company in the amount of $240,775 to dredge the Atlantic Intracoastal Waterway, approve the associated budget amendment, and authorize the Chairman to execute the necessary contract documents. Upon vote, the motion CARRIED UNANIMOUSLY. Budget Amendment #2004-05-Mason Inlet/Room Occupancy Tax Adjustment Debit Credit Mason Inlet - Maintenance Transfer in from ROTS $512,312 Extended Project Expense $512,312 Room Occupancy Tax Appropriate Fund Balance $512,312 Transfer to Capital Projects$512,312 Explanation: To budget additional transfer from Room Occupancy Tax Fund to Mason Inlet Project for Gahagan and Bryant, Cottrell Contracting Company, and Land Management Group. A copy of the contract is on file in the Legal Department. ADDITIONAL ITEMS Chairman Davis asked if any member of the Board had any additional items. •Commissioner Pritchett reported that she attended the Cape Fear Community College Graduation Ceremony and stated that it was a wonderful event. She congratulated the graduates and the College for the fine programs and work force being provided to the community by this institution. •Commissioner Caster advised that he also attended the Cape Fear Community College Graduation Ceremony and stated it was amazing to see the number of awards the College received when competing with four-year colleges. LUNCH Chairman Davis convened from Regular Session at 12:00 noon for lunch. Chairman Davis reconvened to Regular Session at 12:35 p.m. STATUS REPORT AND UPDATE ON REPAIR OF SPRAY DRYER ABSORBER UNIT 3A AT WASTEC AND ADOPTION OF RESOLUTION TO ENTER INTO A CONTRACT FOR ENGINEERING SERVICES AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT #04-0025 Finance Director Bruce Shell reported that the Board requested for this item be continued from the August 4, 2003 meeting. As a result of the May 31 storm, Unit 3A suffered a catastrophic failure to its spray dryer absorber. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 719 Subsequent to the failure, analysis of the structure's metal thickness revealed that replacement is the only viable option. The spray dryer absorber is part of the air pollution control equipment which reduces the amount of acid gases (i.e., sulfur dioxide and hydrogen chloride) by injecting a fine mist of lime into the flue gas as it travels towards the stack. This specific failure has rendered WASTEC's largest boiler (250 tons of municipal solid waste per day) inoperable. He presented the following power point presentation: Cost of Replacing the Scrubber Engineering & Installation $586,828 Demolition of Old Scrubber 84,591 Total Cost $671,419 *Insurance Reimbursements( 338,451) Net Costs $332,968 * Insurance claim for demolition and replacement $191,391 Business Interruption insurance claim$147,060 Total Insurance Reimbursements$338,451 Electrical Revenue Impact •Completion Date of December 26, 2003 •Lost Electrical Sales ($22,000 per week) $686,280 •*Opportunity to Reschedule repairs during the downtime of six weeks ($22,000 x 6 = $132,000 gained) •New Revenue Loss - $554,280 ($686,280 minus $132,000) •Negative Impact on the Landfill *During the downtime, the tube replacement and refractory replacement can be performed on Boiler #3 which had already been scheduled at a later date. By making the repairs during this downtime, no additional downtime will be required later in the year representing a savings of $132,000 in loss electrical revenues. Discussion followed on how the lost sales revenue figure of $22,000 per week was calculated. Vice-Chairman Greer noted that $22,000 times 52 weeks equals $1,144,000; therefore, if 60 percent of the revenue is generated by Boiler #3, the $132,000 figure is too high. Director of Environmental Management Ray Church explained that the $22,000 figure was calculated on average electrical sales. It is important to understand that the figure must be estimated on the number of boilers and generators operating. Mr. John Hubbard, Plant Manager, informed the Board that he calculated the figure by comparing a week with all three boiler units on line and a week with only units #1 and #2 on line. The difference in the sales was subtracted showing that three (3) more megawatt hours were used with all three units operating versus only two units. In reaching a final figure, consideration had to be given to the fact that more revenue is generated at peak times during the summer months than in the winter and the percentage of time the boilers were on line during the last year, which was 80 percent. These factors had to be calculated into the final figure of $22,000 per week in lost electrical sales. Finance Director Shell continued with the power point presentation: Impact of General & Environmental Management Funds: Environmental Management Fund (EMF) •Fund Balance Appropriation (Board approved)$830,000 •Repair Expenditure (Net)$332,968 •Balance Applied to Revenue Shortfall$497,032 Note: No additional funds needed. General Fund •No impact Discussion was held on the $1,000,000 transferred to the Environmental Management Fund during the prior fiscal year. Finance Director Shell explained that $1,000,000 was set aside in the General Fund to cover any deficit in the Environmental Management Fund for FY 2002-2003. On June 16, 2003, the Board of Commissioners approved a budget amendment transferring $830,000 of the $1,000,000 to pay for repairing the scrubber on Unit #3. On June 30, 2003, the $830,000 was transferred from the General Fund into the Environmental Management Fund. With this transfer, the Environmental Management Fund had sufficient money to pay for the cost to repair the scrubber, make up the shortfall from lost electrical sales, pay for additional maintenance of the refractory, and replace tubing for the boiler that was already on the maintenance schedule. Taking advantage of performing the additional maintenance on unit #3 during the downtime will save money in electric sales because no further downtime will be needed for maintenance. Scrubber Proposals Received •Turbosonic, Inc.$1,234,000 •Casey$1,196,894 •United McGill$ 574,500 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 720 Local Solution •Nozzles & Controls$ 63,670 •Vessel Construction 445,000 •Disposal of old Scrubber 84,951 •Engineering 78,159 Total Local Cost $ 671,491 Action Requested •Phase I: Adopt a resolution approving a contract with Turbosonic, Inc. in the amount of $141,828 for engineering design of the vessel, nozzles, and controls •Phase II: Authorize the County Manager to enter into a contract with the lowest bidder not to exceed $445,000 for construction of the vessel as designed. •Approve the associated Budget Amendments In concluding the presentation, Finance Director Shell offered to respond to any questions. Vice-Chairman Greer expressed concern about seeing figures on one page showing demolition of the old scrubber at $84,591, insurance reimbursements for demolition and replacement of the scrubber at $191,391 and a repair expenditure of $332,966 on another page. He stated that it was difficult to know which figures to use in trying to determining the cost of the repair. Director Church explained that after the insurance company looked at the damage, it was determined that only three sections of the scrubber would be replaced and installed since the damage was due to wind. He advised this was a small portion of the entire scrubber. Vice-Chairman Greer responded that since the insurance will cover the replacement, he could see where the difference would be made up. He expressed appreciation to Director Church for the explanation. Commissioner Pritchett said that she felt the Board of Commissioners caused a two-week delay by tabling this issue and she requested the Board to consider reimbursing the Emergency Management Fund $44,000 ($22,000 per week) for interruption time. Chairman Davis informed Commissioner Pritchett that he understood her request, but he did not agree because the County would in essence be paying itself back. He also noted that the storm occurred on May 31, 2003 and the item was not presented to the Board until the August 4, 2003 meeting, which caused a considerable amount of time to elapse before the Commissioners were requested to consider the item. Chairman Davis reported that he had been in contact with a company who is interested in entering into a contract with New Hanover County to manage the WASTEC Facility. The County would maintain ownership and pay a fee to the company to manage and operate the facility. The company has more advanced technology, and it is willing to invest in the WASTEC Facility by installing high tech equipment, which will necessitate ripping out some of the existing equipment. He stated that if the Board is interested in allowing a company to operate WASTEC no additional funds should not be appropriated for improvements to the facility. Chairman Davis advised that the Solid Waste Advisory Board was established to study the best way to handle solid waste in New Hanover County to generate enough revenue to operate the WASTEC Facility and pay the debt service, which will be paid in full by FY 2008. The Advisory Board recommended implementing a commercial and residential county-wide trash collection system. The commercial trash system has been addressed, and the Board will review the residential collection system later during the meeting. In concluding his remarks, Chairman Davis reported that the Board has never really made a thorough study of whether a company could manage the WASTEC Facility more efficiently and generate sufficient revenue to operate the facility and pay the debt service. He stated that he had always been a proponent of the WASTEC Facility because it does prolong the life of the Landfill. Once the Landfill is full, there will not be enough space left in New Hanover County to permit another landfill. He requested direction from the Board. Commissioner Caster advised that he had always been in favor of selling or privatizing the WASTEC Facility to provide a more efficient and effective operation; therefore, he was in favor of discussing this issue with the company who has offered to install new technology before approving money to repair the scrubber. Chairman Davis advised that in conversation with company officials, they would like to have 30 days to prepare a proposal to present to the Board of County Commissioners; however, if the Board wants to pursue this issue, it will further delay repairing the scrubber. Commissioner Boseman advised that she felt that the Board should investigate the possibility of a company managing the WASTEC Facility if it can be operated more efficiently with newer technology. Director Church informed the Board that other companies have approached the County about operating the WASTEC Facility. The first company who reviewed the numbers advised that the WASTEC Facility could not be operated for less money. This company is now out of business. The County has also been approached by MK Ferguson, the company that operated the incinerator in Charlotte, and by Foster Wheeler, the company that operated the plant in NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 721 Charleston, S. C.; and these companies said that the incinerator could be operated for less money. He stressed the importance of the Board understanding that any company who takes over the management and operation of the WASTEC Facility will have to make a profit. Chairman Davis expressed appreciation to Director Church for the information and stated that discussion on this topic is not being done as a reflection on the current operation of the WASTEC Facility. The Commissioners are elected officials who have the responsibility to do what is best for the citizens of New Hanover County. The Board would be derelict in its duty not to at least entertain this idea. County Manager O’Neal asked if the Board would like Staff to open the process up to more than one company to see if there is another company that would be more innovative in the operation of an incinerator, since it would be more appropriate for the County to look at multiple companies. In other counties and cities, governing bodies have evaluated whether particular departments or functions should be privately or publicly operated by providing an opportunity for companies to submit bids for private operation of the department as well as giving an opportunity for the department to submit a bid for public operation of the department. This process allows the governing body to determine whether a private or public operation is more cost effective for a particular department or function. Commissioner Boseman said that she felt it would be good idea to have more than one company make an offer. Commissioner Caster spoke on his former federal government days and said that under the A-109 process, a bid package was prepared requesting private companies to submit a bid, including the government agency. Once bids were received, an evaluation was made of each bid. The process was not simply selecting the lowest bid. If the government agency was underbid, there was a percentage formula used by the federal government that had to be met before the private company was awarded a contract to operate the government agency. This process was fair to the government agency and to the private companies interested in operating a government function. He advised that he was not sure the State of North Carolina had any similar process and stated that he felt more than one company should submit a proposal for operating the WASTEC Facility. He also noted that he was in favor of allowing the company referenced by Chairman Davis to make an offer. County Manager O’Neal advised that he was not aware of a State process similar to the A-109; however, if the Board is interested in receiving an offer, the County should allow more than one company to present an offer. Finance Director Shell advised that a number of years ago, the company referenced by Chairman Davis, approached the County and numerous meetings were held with the owner. Conference calls were made to the attorneys and financial staff representing the company and the County’s legal department and bond counsel to see if this privatization could be accomplished. In numerous discussions, the company was not willing to purchase the WASTEC Facility until the debt was paid. All parties tried to negotiate an operating agreement that would not violate the tax exempt issues. Hundreds of hours were spent in trying to work out an agreement for the company to either purchase the WASTEC Facility or negotiate an operating agreement based upon a guaranteed amount of cash or a guaranteed amount of trash, which meant that New Hanover County has to control the waste stream. The company tried to negotiate a short- term agreement until the debt was paid. The company was willing to install the new technology to burn more trash through the system; however, if the system did not work, the County would have been required to pay the company for the capital funds put into the new system. Staff felt that New Hanover County was being put at risk under the proposed arrangement. Focus was then placed on trying to develop a franchise agreement for the County to control disposal of solid waste. Commissioner Boseman asked how much money the company was planning to spend for installing new technology in the WASTEC Facility. Finance Director Shell responded at that time, the figure was $10,000,000. Commissioner Pritchett stressed the importance of understanding that a for-profit company cannot operate a function for less money than a non-profit entity because a profit has to be made. Vice-Chairman Greer stated that the primary issue is managing disposal of solid waste in New Hanover County. A number of years ago, a decision was made to build an incinerator and develop a lined landfill. Last year, the Board decided to implement a tip fee at $46 per ton to cover the costs of operating the landfill and incinerator. Currently, approximately half of the waste collected is burned at the incinerator and half of the waste is placed in the landfill. The ash from incineration has to be carried to the landfill for disposal. At $46 per ton, incineration is more costly than just operating the landfill. Under this scenario, the landfill operation is half the disposal cost at approximately $23 per ton and incineration is half of the disposal cost at approximately $92 per ton. The Board has just been informed that the $46 per ton tip fee is not enough because the $1,000,000 earmarked in the General Fund last year to make up for any shortfall in the Environmental Management Department is having to be used to repair the scrubber on unit #3 due to the May storm. It is important for the Board to understand that the County should not be tied into a tip fee of $92 per ton to operate the incinerator when there are other disposal alternatives that are much less expensive. Vice-Chairman Greer reported that an offer was made at a prior meeting from one of the landfills to dispose of the County’s trash at a lesser cost for a long period of time. After checking into this offer since the last meeting of the Board, a letter has been received from a company prepared to provide a long term 20-year disposal contract for New Hanover County at $19 per ton plus the transportation cost. The contract would be adjusted each year according to the increase in the CPI. In closing, Vice-Chairman Greer advised that the Board must recognize there are other means of disposal. With a disposal rate of $19 per ton for 20 years, County landfill space would be preserved. He suggested establishing a reasonable tip fee at the landfill and stated if too much trash is received, the tip fee can be increased and if too little NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 722 trash is received, the tip fee can be reduced. The County has an opportunity to take the cost of the disposal operation and turn it into a revenue source for New Hanover County. There are other alternatives to dispose of waste in an environmentally sound way that would be more economically beneficial for the County and its residents. He stated that he felt incineration was not the right way to dispose of trash, and he offered to provide a copy of the letter to the other members of the Board. Commissioner Pritchett stated that she would not relinquish control of solid waste management to any company other than New Hanover County. Motion: Commissioner Pritchett MOVED to approve the request presented by Staff for the construction and replacement of the scrubber on the boiler unit #3 at the WASTEC Facility. Chairman Davis asked Commissioner Pritchett if her motion meant that she was not interested in discussing the possibility of a company privately operating the WASTEC Facility. Commissioner Pritchett responded that she was not interested in discussing a proposal with any company to privately manage and operate the WASTEC Facility. She advised that Staff had made numerous attempts to discuss this issue with other companies and stated that no successful agreement had ever been negotiated. There is no reason to think that it will be different with this company. She reminded the Board that it was not possible to release the County from its liability regarding waste disposal. As long as the waste generated in New Hanover County is going to the WASTEC Facility and the County landfill, it is under the County’s control. Once this control is released to a private company, the County is in jeopardy. Commissioner Boseman asked Commissioner Pritchett why she was opposed to carrying trash out of the County for 20 years when the County is trying to preserve its landfill space. Commissioner Pritchett responded that if the trash could be sent out of the County at no charge, the County would not be released of its liability. If trash is carried to another county and there is a problem, the person with the deepest pocket will be sued, and that entity will be New Hanover County. Director Church explained that the garbage business is a matter of economics and the budget for the Environmental Management Department is based on an integrated solid waste management system. The landfill, recycling, administration, and the WASTEC Facility all work together to dispose of waste. Some of the profit from the landfill is used to support the administrative staff, recycling and other costs. If trash is carried to another landfill, revenues necessary to support the entire solid waste management system will be lost. If a company should purchase the WASTEC Facility, the refractory and tubes will still have to be replaced in the boiler units. Every day of downtown at the WASTEC Facility means that more waste has to be carried to the landfill. Due to the volume of waste and downtime after the May storm, a new landfill cell will have to be constructed a year ahead of schedule. This means that sufficient revenue will have to be found to pay for constructing another cell. Chairman Davis requested direction from the Board. Commissioner Boseman noted that discussion is being held on carrying trash out of the County and allowing a company to privately manage and operate the WASTEC Facility. In other meetings, the suggestion has been made to close the WASTEC Facility, but no one knows the costs associated with dismantling the incinerator. County Manager O’Neal spoke on this being a difficult decision for the Commissioners and said there is a cost to doing nothing, a cost to waiting, a cost to approving the recommendation presented on the agenda, and a cost to closing the WASTEC Facility. Staff has made a recommendation and every day that action is delayed, revenue is lost. Staff is ready to follow the direction of the Board; however, if a decision is made to follow another option, such as a long term contract to haul waste out of the county or work with a company to operate and manage the WASTEC Facility, it would be an advantage for a Commissioner to work with Staff during the analysis process because this is a complex issue. Commissioner Pritchett urged the Commissioners to remember that if the WASTEC Facility is closed, a $3,000,000 bond payment must be paid annually which means the County is paying for nothing. If the WASTEC Facility remains open, enough revenue is generated from electrical sales to pay the debt. Director Church advised that under the current system, the enterprise fund pays the annual bond debt. The $1,300,000 generated from electrical sales last year helps to keep the tip fee lower. When the franchise system was proposed last year, Staff proposed a tip fee of $48 per ton, but this figure was reduced to $46 per ton by the Board. If an Administrative Reserve Account had been established at $500,000 per year, there would be sufficient money in the budget to pay for the damage to unit #3. Chairman Davis responded that he requested a reduction in the tip fee to show a good faith effort on the part of New Hanover County to address the concerns expressed by the City of Wilmington and beach communities about the rate of the tip fee. A majority of the Board voted to reduce the tip fee to demonstrate an effort to work with the municipalities. Director Church also reported that additional long-term costs will be involved when the landfill is closed. Under federal statutes, the County is required to monitor the landfill and take any corrective action for 30 years. An Administrative Reserve Account should be established to pay for the long-term closure costs at the landfill. The department has a plan to begin accumulating this money when the debt service is paid. Chairman Davis asked if the Board would like to delay this agenda item for 30 days to provide time to study NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 723 the offer made by the company who would like to operate and manage the WASTEC Facility. County Manager O’Neal advised that it would take at least 90 day to prepare bid proposals and receive a response from companies interested in operating the WASTEC Facility. Chairman Davis informed the Board that a MOTION was on the floor to approve the request presented by Staff to construct and replace the scrubber on unit #3 at the WASTEC Facility. He called for a second on the motion. Hearing no second, the MOTION FAILED. Chairman Davis requested direction from the Board. Motion: Commissioner CasterMOVED to request Staff to prepare a bid proposal to allow other companies to submit proposals to operate the WASTEC Facility within 90 days. Vice-Chairman Greer asked why there was a need to operate the incinerator if the Board is concerned about preserving the landfill. Only half of the trash is burned in the incinerator with the resulting ash having to be carried to the landfill. There are other alternatives that are very reasonable. Since the debt service is comprised of general obligation bonds, the taxpayers will have to pay the debt. However, if the tip fee is $92 per ton to operate the WASTEC Facility and $19 per ton to dispose of waste in the landfill, there will be a large sum of money to pay off the bond debt. There are other options for the County to consider, but one option is not operating the incinerator. Director Church explained that the purpose of the WASTEC Facility was to save space in the landfill. Consideration should be given to replacing the scrubber at a cost of $300,000 instead of losing approximately $1,000,000 in revenue during the current budget year. Amended Motion: After discussion of the need to move forward as quickly as possible, Commissioner Caster amended his motion to request Staff to prepare a bid proposal to allow other companies to submit proposals to operate the WASTEC Facility within 45 days. County Manager O’Neal suggested that the Board consider directing Staff to proceed with repairs on the scrubber and at the same time proceed with preparing a bid package within 45 days. This action would allow all boilers to be on line if a company is interested in submitting a proposal to operate the WASTEC Facility. Chairman Davis stated that if the existing equipment is replaced by a private company, he could not vote to proceed with repairing the scrubber. Commissioner Boseman asked the time frame in which the $445,000 construction bid would have to be signed. Director Church responded that the first step will be to award the bid to an engineering firm to design the scrubber which will take four to five weeks. Once the design is received, bids will be submitted to companies for the specific design. Chairman Davis noted that Commissioner Pritchett made the first motion to proceed with the recommendation presented by Staff and stated that the motion failed because a second was not received. He also advised that Commissioner Caster has an amended motion on the floor to request Staff to prepare a bid proposal to allow other companies to submit proposals to operate the WASTEC Facility within 45 days. He called for a second on the amended motion. Hearing no second, the AMENDED MOTION FAILED. Chairman Davis stated that since the previous motions had not passed, he would be willing to vote on the original motion made by Commissioner Pritchett. County Attorney Copley advised that since the original motion failed, the Board should introduce a new motion. Motion: Commissioner Pritchett MOVED, SECONDED by Chairman Davis, to approve the request presented by the Environmental Management Director, which is to adopt a resolution to contract with Turbosonic, Inc. in the amount of $141,828 to design the scrubber, nozzles and controls, authorize the County Manager to enter into a contract with the lowest responsible bidder not to exceed $445,000 to construct the scrubber and approve Budget Amendment #04-0025. Commissioner Boseman requested the Board to consider awarding the design portion for the scrubber and direct Staff to move forward with preparing a bid package to seek proposals from companies interested in operating and managing the WASTEC Facility. Substitute Motion: In further discussion, Commissioner Boseman made a substitute motion, seconded by Commissioner Caster, to award the contract to Turbosonic, Inc. in the amount of $78,158 to perform engineering services for the scrubber design and authorize Staff to move forward with preparing a bid package to submit to companies interested in operating and managing the WASTEC Facility with proposals to be received within 45 days. Vice-Chairman Greer stated that he felt spending $78,158 was a waste of money if a company was interested in operating and managing the incinerator. Commissioner Boseman responded that if figures had been presented by the company, she would feel more comfortable with starting the repair process. Commissioner Caster said that he did not feel the Board was interested in the offer made by the company that NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 724 offered a contract for 20 years at a tip fee of $19 per ton plus transportation; therefore, he would second the substitute motion to be sure that consideration is given to any offer from a company interested in managing and operating the WASTEC Facility. Chairman Davis called for a vote on the SUBSTITUTE MOTION. Upon vote, the MOTION FAILED TO CARRY 2 to 3. Chairman Davis, Vice-Chairman Greer, and Commissioner Pritchett voted in opposition. Chairman Davis called for a vote on the motion made by Commissioner Pritchett, seconded by Chairman Davis to approve the request as presented by the Environmental Management Department, which is to adopt a resolution to contract with Turbosonic, Inc. in the amount of $141,828 to design the scrubber, nozzles and controls, authorize the County Manager to enter into a contract with the lowest responsible bidder not to exceed $445,000 to construct the scrubber, and approve the associated budget amendment. Upon vote, the MOTION FAILED TO CARRY 2 to 3. Vice- Chairman Greer, Commissioner Caster, and Commissioner Boseman voted in opposition. Chairman Davis asked whether it would be appropriate to defer action on this item in view of the fact that the Board was unable to reach a majority vote. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to start on a plan to close the incinerator and to begin to send some, if not all, of the trash out of the County. Upon vote, the MOTION FAILED 2 to 3. Chairman Davis, Commissioner Pritchett, and Commissioner Boseman voted in opposition. After hearing no further comments, Chairman Davis asked if any member of the Board would like to make another motion. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Pritchett, to adopt a resolution to contract with Turbosonic, Inc. in the amount of $141,828 for design services to replace the scrubber on Unit #3, authorize the County Manager to enter into a contract with the lowest responsible bidder not to exceed $445,000 to construct and repair the scrubber, approve the associated budget amendment, and direct Staff to investigate the possibility of sending trash outside of New Hanover County in order to prolong the life of the Landfill. A lengthy discussion followed on whether there would be sufficient trash to carry out of the County. Chairman Davis asked Director Church to comment on this issue. Director Church explained that currently there are approximately 4,000 customers who do not have a trash collection service. These people burn their trash, carry trash to the office, share trash cans, or use another person’s dumpster without authorization. The volume of trash should remain the same when the residential collection system is implemented; however, if people have an opportunity to place yard waste and recycle items next to the trash can, the amount of trash carried to the WASTEC Facility will be reduced. He said that Staff will continue to monitor the waste stream and tip fee to see what other counties are charging per ton. Currently, Pender County is transferring waste at $60 per ton and Pamlico County at $68 per ton. When Staff reviewed the cost to transfer waste to another county last year, the tip fee was $20 to $21 plus the charge for operating the transfer station, cost of transportation, and debt service, bringing the tip fee to $52; however, Staff is willing to review this issue. Chairman Davis called for a vote on the MOTION ON THE FLOOR. Upon vote, the MOTION CARRIED 3 TO 2. Vice-Chairman Greer and Commissioner Caster voted in opposition. Chairman Davis advised that since this motion was approved, the Board would not be interested in pursuing a company to operate the WASTEC Facility. Commissioner Pritchett asked if the Solid Waste Advisory Board should be reactivated to study carrying trash out of the County. In further discussion, the Board decided not to reactivate the Solid Waste Advisory Board. Budget Amendment # 04-0025-WASTEC Adjustment Debit Credit Appropriated Fund Balance $830,000 Adm-Other Improvements $830,000 Explanation: To rollover funds approved at the June 16, 2003, meeting of the Board of County Commissioners for repairs to the scrubber at WASTEC. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVIII, Page 17.7. BREAK Chairman Davis called a break from 2:50 p.m. until 3:00 p.m. CONSIDERATION OF CONTRACT TERMS FOR A COUNTY-WIDE SOLID WASTE COLLECTION SYSTEM Director of Environmental Management Ray Church reported that the New Hanover County Board of Commissioners directed Staff to develop a solid waste collection system for the unincorporated portion of the County. The purpose of the mandatory solid waste collection system is to improve services to the citizens, improve efficiencies NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 725 in the collection of solid waste, improve recycling rates, reduce illegal dumping, and reduce the open burning of trash and yard debris. Staff was instructed to work with the three waste haulers currently providing residential collection services and to assign exclusive zones based on the number of customers that they were servicing as of January 1, 2002. Through submission of customer information by the haulers, it was determined that A-1 Sanitation Service, Inc. and Waste Industries, Inc. each provided service to 40 percent of the customers in the unincorporated area, and Trash Removal Service (Waste Management) provided service to the remaining 20 percent. Using these percentages, Staff was able to define service areas that were agreed to by the waste haulers. A map was presented showing the assigned zones. The haulers were requested to submit confidential bids to the County Attorney’s office for each of the services to be provided: garbage collection; curb side recycling; yard waste collection; and bulky item (appliances, furniture, etc.) collection. Staff reviewed the bids and made a counter offer to the haulers. The haulers were requested to respond to the counter offer. Each hauler rejected the counter offer for a variety of reasons but indicated that prices were negotiable. In a meeting on August 6, 2003, Staff and the haulers came to an agreement of $25.00 per month comprised of the following components: Garbage $13.41 Recycling $ 3.49 Yard Waste $ 5.16 Bulky Item $ 2.94 Monthly Total$25.00 •Provide back door service for the handicapped at no additional cost, which normally doubles the monthly fee. •Each additional cart will cost $12.00 •Customers will be billed three (3) months in advance Director Church said that the $25.00 monthly fee was compared to the $19.10 monthly fee charged by the City of Wilmington. The monthly fee for the County is higher because of the following items: •Billing: The City of Wilmington performs the billing service. Under the County System, the haulers will bill the customers. • Set-up Cost: The initial costs and maintaining the billing system are borne by the hauler. • Bad Debt: The haulers will carry bad debt from non-payment. The County Attorney’s Office will use various means available to it under the recently enacted ordinance to enforce the requirement that residents participate in the system. • Density: Neighborhoods in the unincorporated area are not as densely populated as in the City. • Distance: Travel time is longer between the disposal facilities and the unincorporated area than in the City, and travel time is longer from the haulers business sites to the collection route. • Service Calls: The haulers will field calls for service. This function is provided by City’s Solid Waste Staff. • Subsidy: There is some subsidy from the City’s General Fund to cover the differential cost between the contracted costs for collection and payment made by the elderly, handicapped, and low income. ($19.10 vs. $8.70) • City Collection Staff: The City Staff provides yard waste and bulky item collection to all City residents. Garbage collection is also provided by City Staff to approximately 40 percent of City residents. Some of these employees provide other services within the solid waste system when not collecting garbage, yard waste, or bulky items. Under the residential collection system, the haulers will increase the number of customers over the number previously serviced. This is due to citizens disposing of waste in methods other than in roll out containers. Some of these methods include taking waste to the dumpster at their place of work, illegal use of commercial dumpsters, sharing roll out carts, self-serving by delivering wastes to the landfill, illegal dumping, and illegal burning. In order to service the additional number of customers, the haulers will be required to make capital purchases of trucks and equipment. Delivery of new trucks takes a minimum of sixty (60) days from the date of order. Additionally, the haulers feel it will take several weeks to deliver carts to new customers and deliver recycling containers to each residence. In response to these concerns, Staff and the haulers have agreed to a contractual starting date of January 1, 2004, with the first collection date being Monday, January 5, 2004, for all services. The term of the contract is for seven years. At the end of the contract period, with consent of the operators, the contract shall be renewed for a mutually agreeable period in the absence of a finding by the County of sufficient grounds for non-renewal including, but not limited to substantial violations of the contract. In closing, Director Church offered to answer questions. Discussion was held on enforcement actions that can be taken through the franchise system. Assistant County Attorney Holt Moore advised that enforcement will be handled through a civil citation penalty, a misdemeanor for not participating in a mandatory program, and the possibility of suspending water and sewer service if the resident is on the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 726 County system. Commissioner Boseman requested an explanation of why the hauler has the right to terminate the contract with a 365 day notice and the County can only terminate the contract for cause. Attorney Moore explained that a notice of 365 days was given to the haulers in order to have a continuum of service until the County would procure another hauler. Commissioner Boseman stated that she felt the County should have the same right because if the hauler is not providing the level of services deserved by the residents, the County should be able to terminate the contract. Attorney Moore responded that a reason backed with sufficient evidence would have be presented to show that a hauler was not providing the level of service expected by the County before the contract with the hauler could be terminated by the County for cause. The contract does specify a specific time frame for the County to give notice; therefore, the County can terminate the contract without 12 months notice. Commissioner Boseman requested the Board to consider changing the contract to say that the County can terminate the contract with a 365 day written notice or for cause. Mr. Jason Hale, a Solid Waste Planner, explained that each hauler will be making a substantial capital investment ranging from $1,000,000 to $2,000,000. He stated that the haulers were concerned about making a large capital investment and the County deciding later to discontinue the program or implement another program. This was the reason for the contract requiring the County to show cause before the contract could be terminated. However, if the County shows cause, the contract can be terminated without 12 months written notice. Commissioner Boseman requested an explanation of why the term of the contract with the haulers was longer than the City’s four-year contract with haulers. Director Church responded that the County entered into a 7-year contract to allow time for haulers to recoup their depreciation costs. Commissioner Boseman requested an explanation of the bidding process. Director Church passed out a copy of the bids received and stated that a bid was received from each of the three haulers with each hauler being requested to bid on each separate service, garbage, recycling, yard waste, and bulky items. The figures were averaged including the highest and lowest figures. After analyzing the numbers, a counter offer was made to the haulers at a price of $24.08 per month. This offer was unacceptable to the haulers and after further negotiation, a figure of $25.00 per month for all services was agreed upon by all parties involved. Commissioner Boseman requested an explanation of what would happen if an unincorporated area is annexed by the City under the County’s residential collection system. Director Church responded that the City has been requested to recognize the hauler providing service to an area, and stated it is hoped that the City will honor the agreement as it does for sewer service when an area is annexed. Chairman Davis commented on receiving numerous calls about why the County was charging $25 per month for services and the City is only charging $19.10 per month. Since the haulers are making a sizeable investment in the collection program, accepting the responsibility for billing, and carrying the bad debt, one can understand the liability being assumed by the haulers. It is also interesting to notice the difference in the density and distance of neighborhoods in the City and County which does increase the cost of operation. Commissioner Pritchett asked if a policy was in place for low-income people to apply for a reduced rate. Director Church responded that no policy was currently in place and stated if a reduced rate is given to low- income persons, the County will have to subsidize the fee. Commissioner Pritchett requested Director Church to contact Staff Planner Wanda Coston to discuss the possibility of securing grant funds to subsidize low-income persons. Vice-Chairman Greer referenced the 4,000 people who do not currently have a trash service and stated that when the collection system is implemented, service to these people will generate $1,200,000 in increased revenue. He noted that most of these people dispose of their trash in a proper manner and stated that he would not vote to impose a collection system that will generate that amount of revenue. Commissioner Pritchett asked if there was a provision for residents who had another method of disposal to apply for an exemption. Director Church responded that the contract did not include a provision of this type. Commissioner Pritchett suggested requesting Staff to review this issue because if a person has a combination residence/business, that customer should not be charged for both places. Director Church responded that the County’s program mirrors the City’s program which does not allow a combination residence/business to receive a lower charge. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 727 Chairman Davis asked if the haulers would be willing to negotiate a lower figure. Director Church responded that Staff tried to negotiate a lower rate, but the haulers were not willing to reduce the rate. The initial rate was $28.81 and through negotiation a rate of $25.00 was reached, which is a good offer. Commissioner Caster asked if consideration was given to providing small trash containers. Director Church responded that the City does have a “Pay as You Throw Program” with the provision of a small container. Consideration was given to this idea, but Staff and the haulers agreed that a large number of customers over stuff trash in small containers. The City pays the hauler the same amount of money for a large or small container. Since the County is not responsible for the billing, it was felt that only one size of container should initially be provided. Commissioner Caster asked if there would be any reason to keep the recycling centers open. Director Church responded that the recycling centers will remain open because the collection program will not provide recycling to all residents, such as people living in apartments, condominiums or small businesses. Commissioner Pritchett asked if distribution of recycling containers will be automatic or if customers will have to call for containers. She stated that the City requires customers to call and request a recycling container. If a customer does not call, the customer is automatically billed for the service. Director Church advised that every resident living in the unincorporated county will receive a recycling container. Commissioner Boseman asked if the tip fee was reduced by $10 would the trash collection fee be reduced. Director Church responded that the City’s contract addresses this issue. For every $1.00 change in the tip fee, the homeowners’ rate is changed by 8 cents depending upon the circumstances. The County’s contract allows the hauler to renegotiate fees annually based on a change in the Consumer Pricing Index, fuel prices, or other economic conditions that influence the cost of providing services. Chairman Davis requested an explanation of the changes in the tip fee. Attorney Moore advised that changes positive or negative would be negotiated and would result in an increase or decrease in the tip fee if appropriate. On Page 7, Section 31 of the contract, the last sentence says that fees are subject to renegotiation on an annual basis in the event of a Consumer Pricing Index change. Hearing no further comments, Chairman Davis requested direction from the Board. Motion: Commissioner Pritchett MOVED to approve the terms of the contract for the County-wide Solid Waste Collection System and authorize the Chairman to execute the necessary documents. Commissioner Boseman expressed concern for the County not having a 365-day written notice when terminating a contract with a hauler. Director Church advised that if a person has a problem with a hauler, Staff will contact the hauler in an effort to correct the problem. The three hauling companies have a long-standing relationship with the community and have serviced the County for 30 years. It is felt that very few complaints will be received about the haulers. Chairman Davis asked County Attorney Copley if she could see any problem with the wording of the termination option for the County. County Attorney Copley responded that allowing the County to terminate the contract for cause without any specified written notice means that County can terminate the contract when deemed appropriate. The haulers are required to give the County 365 days written notice to terminate the contract, which will provide time for the County to secure another hauler. Commissioner Boseman asked what would happen if the haulers just walk off the job without written notice. County Attorney Copley responded that the haulers would be in breach of the contract and the County could sue for damages incurred. Chairman Davis asked if the language was consistent with the City’s contract. Director Church responded that the City’s contract was used to develop the County contract and very few components were changed. He said that Mr. Chris McKeithan of Waste Management, Inc. was present and may want to comment on this issue. Mr. McKeithan explained that when haulers invest $1,000,000 to $2,000,000 in the purchase of carts, containers, and trucks, it would be highly unlikely that the haulers would walk away from the collection system. The City of Wilmington requires a Performance Bond and Letter of Credit. The County also requires an irrevocable Letter of Credit in a form approved by the County Attorney. The hauling companies have serviced the area for 30 years and during this period numerous acquisitions have occurred with each company. This is not just a contract for picking up the trash, but this a long term contract because the County is taking over their businesses. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 728 Chairman Davis asked if the City requires the hauler to provide a written notice of 365 days before the contract can be terminated, and if the City has the right to terminate the contract for cause. Mr. McKeithan responded that the City has the same language in its contract. Commissioner Pritchett asked if there was any prohibition against the three large haulers subcontracting with the small haulers. Director Church advised that he was not aware of any regulations preventing the large hauling companies from subcontracting with the smaller companies. Chairman Davis advised that if the Board proceeds with implementing a county-wide Solid Waste Collection System, many people will be supportive of the collection system and others will object because of the additional cost and the fact that they will have no choice but to participate in the program. He said that the proposed recommendation from the Solid Waste Advisory Board was to implement a county-wide system and he was in favor of the trash collection system because it will be for the good of New Hanover County. Chairman Davis called for a second on the motion made by Commissioner Pritchett to approve the terms of the contract for the County-wide Solid Waste Collection System and authorize the Chairman to execute the necessary documents. Hearing none, Chairman Davis SECONDED the motion. Upon vote, the MOTION CARRIED 3 to 2. Vice- Chairman Greer and Commissioner Caster voted in opposition. Commissioner Boseman stated that she voted reluctantly because she felt the $25 monthly fee was too high. Chairman Davis requested Staff to follow up on trying to secure grant funds for low-income residents. Director Church responded that he would work with Ms. Coston to see if any grant funding is available. CONSIDERATION OF DRAINAGE PROJECT TO CORRECT FLOODING PROBLEMS ON OLD MILL ROAD IN THE RUNNYMEADE SUBDIVISION Assistant County Manager Dave Weaver reported that Old Mill Road in the Runnymeade Subdivision increasingly becomes flooded during heavy rains, resulting in one home being frequently flooded and a section of the 500 block becoming impassible to all vehicles. After visiting the site and analyzing the problem, the Engineering Staff has recommended the following solutions to the problem as shown on the map presented in the agenda package: 1) Clearing of 1,200 feet of ditch running between Woolwitch Road and Alex Trask Road. The County, by authority granted in the Drainage Ordinance adopted in 2001, has the right to require property owners to maintain ditches on their property. The property owner will be given an opportunity to clean the ditch or an assessment will be charged for the work to be done. Discussion has been held with the homeowners and approximately one-third want to clean their ditches, one-third would like to be assessed, and the other third would like for the entire subdivision to be assessed. The Drainage Ordinance clearly states that each property owner is responsible for maintaining a ditch on their property and this ordinance will be used to clear the ditch running between Woolwitch Road and Alex Trask Road. 2) Replacement of 160 feet of an existing 15 inch diameter drainage pipe off Old Mill Road with a 24 inch diameter pipe at an estimated cost of $10,000. Since the pipe replacement will be an upgrade of an existing drainage facility, Staff recommends paying for the project from remaining grant funds that were received several years ago for hurricane debris removal work. Assistant County Manager Weaver also noted that the N. C. Department of Transportation has volunteered to conduct a hydro-analysis study of the area so the County will know the exact size of pipe to install. Since New Hanover County does not have a Drainage Program, only limited drainage work can be performed by the County. Staff feels that due to the road becoming impassable and the frequent flooding of one home, the work should be performed. Chairman Davis stated that in his opinion when a road becomes impassable during heavy rains and emergency vehicles cannot respond, this creates an emergency situation that needs to be addressed. He requested further information on how the project will be coordinated if some people want to clean their ditches and others want to be assessed. Assistant County Manager Weaver explained that Staff will draw up the specifications showing how the ditch must he cleaned and how the ditch will look after the work is completed. Each property owner along the ditch will be shown the specifications and given an opportunity to clean the ditch by a designated date. If a property owner does not want to clean the ditch, or a property owner has not cleaned the ditch within the designated time frame, the County will hire a contractor to perform the work and each property owner will be assessed their portion of the project cost. Commissioner Boseman asked if the proposed project will address drainage problems being experienced along Old Mill Road, Bramble Court, and Barrow Street. Assistant County Manager Weaver responded that many roads throughout the County have experienced flooding; however, this is a particularly severe case because the road becomes impassable for emergency vehicles during heavy rainfalls and one house has flooded several times over the past few years. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 729 Commissioner Boseman asked if prisoners could be used for this project. County Engineer Wyatt Blanchard responded that prisoners are used whenever possible; however, in this case, the ditch will have to be dug out which is probably beyond their capability. Further discussion was held on the commitment of the NCDOT. Mr. Allen Pope, District Engineer of the local NCDOT office, stated that the NCDOT will provide sinking funds for drainage improvements within the rights-of-way. The portion of the drainage system under the roadway and the boxes at the curbs will be upgraded and paid for by the NCDOT at the same time the outfall is upgraded. Discussion was held on who would be responsible for the drainage pipe. County Engineer Blanchard responded that New Hanover County has never accepted responsibility for a pipe or any part of a drainage system because the County does not have a Drainage Program. Further discussion was held on the liability that could be incurred by the County installing the pipe in the ditch and maintaining the pipe. County Attorney Copley advised that a precedent would be set to start providing this kind of service; however, when the County performs the task, the County assumes the responsibility of maintaining the ditch. Chairman Davis asked if this request is not approved, how could the homeowners get the work done. County Engineer Blanchard responded that the work would have to be done by adjoining neighbors or through a joint effort by the community. Commissioner Boseman asked County Engineer Blanchard if the County should have a Drainage Program and asked how the City funds its program. County Engineer Blanchard responded that to implement a County-wide Drainage Program would cost millions of dollars. The City funds its program through a stormwater fee. Commissioner Pritchett asked if the problem in Runnymeade had been caused by a design error or by natural in-fill. County Engineer Blanchard responded that the problem is caused by a lack of maintenance since the late 70's and 80's. Ditches have to be cleaned in order for the water to flow, and in this case, the outlet pipe is totally covered with debris. Hearing no further comments, Chairman Davis requested the Board to vote separately on the two options. He advised under Option I, the property owners will be given an opportunity to clean the ditch on their property in a specified amount of time. If the ditch is not cleaned, the County will notify each property owner that the improvements will be made with the County assessing the property owners pursuant to the authority in the Drainage Policy adopted in 2001. Option II is for the County to be responsible for the estimated $10,000 cost of replacing 160 feet of pipe off Old Mill Road working with the NCDOT to decide on the exact size of the pipe. This action will set a precedent and the County will accept liability for the project and future maintenance of the ditch. Mr. Walker Biggs, reported that the flooded house referenced in prior discussion was his home. He expressed appreciation to Assistant County Manager Weaver and County Engineer Blanchard for taking time to meet with the residents and explain the project. He requested the Board to consider the possibility of establishing a County Drainage District with a fee charged to control stormwater runoff and prevent other homes from being flooded throughout the County. Chairman Davis expressed appreciation to Mr. Biggs for his comments. Hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Boseman, to authorize Staff to clear 1,200 feet of the ditch running between Woolwitch Road and Alex Trask Road as presented by Staff. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis called for a motion on the replacement of the drainage pipe off Old Mill Road. Commissioner Caster asked the County Attorney if she was sure that the County would be held responsible for maintaining the ditch. County Attorney Copley advised that since the County is taking the action to perform the work, the County will have to accept the responsibility of maintaining the ditch. If a problem should occur, the County will be held liable. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to replace the 160 feet of an existing drainage pipe with a 24-inch diameter pipe off Old Mill Road at an estimated cost of $10,000 to be paid from remaining grant funds received for hurricane debris removal work Upon vote, the MOTION CARRIED 4 TO 1. Chairman Davis voted in opposition. Chairman Davis advised that he voted in opposition because he was concerned about the liability and maintenance issues. Further discussion was held on establishing a Drainage District. Commissioner Caster noted that the City’s NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 730 fee is $2.60 per month and stated when reviewing Crosswinds and surrounding areas about drainage problems, it was found that to improve drainage for this area would cost the County millions of dollars. County Manager O’Neal advised that the problem is not having sufficient funds to implement a Drainage Plan. He stated that Staff would prepare and forward a report to the Board on the costs involved with creating a Drainage District. CONSIDERATION OF OFFER TO PURCHASE COUNTY LAW ENFORCEMENT CENTER FROM FIRST BAPTIST CHURCH Chairman Davis welcomed Dr. Michael G. Queen, Pastor of First Baptist Church, and Mr. Arnold, Mr. Trice, and Mr. Fisher, members of the First Baptist Church Board of Trustees. He requested Dr. Queen to make his presentation. Dr. Queen began his presentation by expressing appreciation to the Board of County Commissioners for allowing him an opportunity to address the Board. He also commended the Commissioners for the many services they render to New Hanover County. Dr. Queen reported that a few months ago, the Board of County Commissioners made a decision to accept offers for the sale of the Law Enforcement Center (LEC). The Church presented its offer to the County on Thursday, August 14, 2003, and it is hoped that the Board of County Commissioners will accept this offer in order to move forward with the process. He presented the following issues for the Board of County Commissioners to consider. 1. First Baptist Church has received copies of letters from clergy and ministry leaders in the community expressing support for the effort of the Church to acquire the LEC for the purpose of creating an Urban Ministry Center. During this time, more conversations have been held with other clergy and ministry leaders, including Dr. Arthur J. Frankel, of the Center for Social Work, Research and Practice at UNCW. All conversations have been centered around the possibility of future collaboration. First Baptist Church and its congregation are aware of the fact that the Church cannot undertake this mission by itself. In order to meet the human needs in the City and County, input from a large group of people will be required. Partners of the religious community, other ministries, educational institutions and social service entities will have to join forces to have a meaningful impact in meeting these needs. Dr. Queen stated that after serving as a pastor in the community for seventeen years, this has been the largest gathering of the clergy and para-church ministries around a single idea. Every week new groups call and want to partner with the Church to meet these needs in the community. Copies of the offer and attached letters presented by Dr. Queen are marked as Exhibit I and are on file in the Governing Body Office. 2. Voices have been heard that express fear of a downtown Urban Ministry Center. St. James Episcopal Church for the past three to four years has been operating a night shelter during the five coldest months of the year. Grace Methodist Church has for several years hosted Mother Hubbard’s Cupboard, and for the last fourteen months, the First Baptist Church congregation in partnership with the Good Shepherd Ministries has served as the host site for the Soup Kitchen. All of these services have been accomplished by volunteers from the community and little or no problems have been associated with providing these needs. There is no interest in relocating the Urban Ministry Center from downtown to another neighborhood. The hope of First Baptist Church and others in the faith community is to provide this Urban Ministry Center to transform lives. If all three ministries should be relocated in the LEC, only a small portion of the building would be occupied; therefore, other ministries would be implemented ranging from tutoring, literacy programs, counseling, job training, and job placement, which will ultimately make a difference in the lives of people. The clergy has been told there is a great need for housing in the community, and a center of this type could help alleviate this problem. The Urban Ministry Center envisioned will be much more than a night shelter and soup kitchen. It can be a place of hope and promise for everybody. 3. The question has been asked why the Church would like to use the LEC for this purpose. The odd configuration of the LEC actually lends itself to multiple ministry uses. Virtually all non-profits struggle to find adequate spaces and resources. It is the hoped that the LEC can become home to a wide array of ministries and services which should create efficiencies that cannot be achieved at any other place. The Urban Ministry Center could become a place where people can find hope and purpose for their lives. Perhaps, the words in the letter from Rabbi Ben A. Romer captured the idea in Tikkun Olam, a Hebrew concept best translated as “Repairing the World.” Tikkun Olam is “a way to live the ancient Prophetic ideals of uplifting the fallen, feeding the hungry, freeing the captive, welcoming the stranger and healing the sick.” The prayer is that this dream might become a reality in this community. A wonderful coalition of partners has come together and this group has identified some of the needs in the City and has begun to develop some rudimentary plans to meet these needs. It is felt that the LEC can be transformed into a place of hope and promise. In concluding the presentation, Dr. Queen advised that the President of the United States has requested the faith community to step forward to help alleviate human needs and suffering. This partnership is ready to provide these human needs in a small way. First Baptist Church is a small congregation and an offer of $1,000,000 is a large sum of money, but we believe with God’s help, this type of an Urban Ministry Center can work. He expressed appreciation to the County Commissioners for their time and offered to answer questions. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 731 Chairman Davis expressed appreciation to Dr. Queen and stated that this was not an offer per se but a proposal that if the Board approves will allow First Baptist Church 150 days to decide if the Church wants to purchase the LEC. This proposal will also have to be approved by a vote of the congregation before the Church can move forward with the project. Dr. Queen responded that a vote by the Church congregation would be required as one of the conditions in the offer; however, the Church is aware that an offer is being made. Chairman Davis advised that it would be a conditional offer because the Church will have 150 days to decide whether to move forward or withdraw the offer. Dr. Queen commented on there being several conditions in the offer, such as the 911 Center remaining in the LEC, and stated that the Church was told this document constituted an offer. Chairman Davis stressed the importance of everybody understanding that if the Commissioners agree to the proposal, the Church will still have 150 days to examine and determine if the offer should be withdrawn. In further discussion, Vice-Chairman Greer advised that it was his understanding that the Church has submitted an offer and if the Board accepts the offer, there would be a 10-day upset bid process for anyone to make an offer. If an upset bid is not received, the Church would have 150 days to actually close on the offer to purchase the LEC. County Attorney Copley agreed with Vice-Chairman Greer and advised that from discussion held with Mr. Berry Trice during the break he understood that the Church wanted to make an offer that would be reduced to writing in the form of a real estate contract. If the offer is accepted by the Board of County Commissioners, the Church will be required to pay a five percent deposit of the $1,000,000 offer to the Clerk to the Board. Chairman Davis advised that it was important to have a clear understanding of the game rules since many of the conditions were not in the document presented to the Board. Vice-Chairman Greer asked Dr. Queen if the Board decides to accept the offer, would the Church be prepared to move forward with the five percent deposit, which would begin the 10-day upset bid process. Dr. Queen responded that if the offer is accepted, the Church would prepare a contract reflecting the conditions in the offer and bring the contract to the County with the five percent deposit check. County Attorney Copley advised that an offer and acceptance would be required as done with any contract. The Church has made an offer and if the Board accepts the offer, Dr. Queen will prepare the real estate contract with the required conditions and deliver the contract to the Legal Department and deliver the five percent deposit check to the Clerk to the Board. This action will constitute an offer and acceptance which will begin the 10-day upset bid process. Chairman Davis advised that First Baptist Church would know about any upset bid well within the 150 days allowed for the Church to further examine the LEC or take the issue to the congregation for a vote. County Attorney Copley explained that if the Board accepts the bid, the Commissioners would have to decide if the 150 days should be given to the Church. It would be no different from any other real estate contract where the seller has the right to say what conditions can be accepted. In further discussion, Commissioner Caster asked if the contract would read as the document presented by the Church today, or would it be different. County Attorney Copley responded that the Board of County Commissioners will have to decide on the conditions as presented in the offer. If the Board does not want to accept the 150 days as a condition, this item could be negotiated. Chairman Davis advised that he could not approve or disapprove the offer today because the decision will change the complexion of downtown Wilmington. This is an extremely important decision that has many people concerned. Calls have been received from people in favor of the Urban Ministry Center and calls have been received from people who feel this is the worst thing that could happen to downtown Wilmington. He noted that during the Thursday staff meeting, he requested the Commissioners to delay making a decision on the offer and schedule a Public Hearing to provide an opportunity to receive public input before taking action. This is public property that is owned by the taxpayers and it is only right to allow people to express their opinions. He advised that he had some serious questions about additional expenses that will be incurred by the County if the LEC is sold. Dr. Queen advised that the Church tried to present an offer with options that would be more cost effective for the County. The County Staff made it clear that the LEC building should be separated from everything else, which is why the options were presented. Chairman Davis asked if the LEC is sold and the existing tunnel is closed, where will inmates be held each day for court appearances. The County will have to make some provision to take care of this situation. These are the types of things that will have to be addressed before any action is taken. Dr. Queen responded that the Board of County Commissioners and the public should know that an offer was made to accommodate the County by allowing inmates to be brought from the new jail to the existing sally port at the LEC; however, this did not meet with approval of County Staff because they felt there were better ways to handle this NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 732 situation. Chairman Davis advised that he was only one of five Commissioners and stated that he felt more avenues should be explored before taking action and that a Public Hearing should be held to hear from the public. He requested direction from the Board. Commissioner Boseman referenced the condition requiring the County to pay $4,000 per month in rent for the 911 Center to remain in the LEC for 18 to 24 months and asked if the Church would be amenable to forgoing the rent for this period of time. Dr. Queen advised that the rental figure would be a negotiable item; however, he could not make that decision for the Church. The offer was made with the understanding that the 911 Center could remain for at least two years; therefore, it seems only fair for the County to pay rent. Commissioner Caster advised that he felt people were having a problem with the LEC being valued at $6,000,000 and stated that neither the County nor anyone else would ever pay that amount of money for the building. If the building is sold, it will cost someone $2,500,000 to demolish the structure; therefore, it would be good to see the building used for a valuable purpose. He requested the Church to consider allowing the 911 Center to remain in the LEC rent-free for two years. Chairman Davis referenced the heating and cooling system that accommodates part of the Courthouse and other buildings and stated that the Church has been willing to work with the County in resolving this issue. He also referenced the $6,000,000 figure mentioned by Commissioner Caster and stated that this value would probably apply if the LEC is used as a jail; however, if the building is used for any other purpose, it will require a great deal of money to bring it into compliance with current building and handicapped accessible codes. Dr. Queen responded that the Church does not have answers to all of these questions and it does not want to spend money prior to making an offer. It was felt that an offer should be made to the County and then the question regarding building codes and zoning requirements for the renovation and use could be determined. This was why the extended period of 150 days was requested as a condition of the offer. Chairman Davis requested direction from the Board and asked if the Commissioners would like to proceed today with a vote, or defer action to see if the Church is willing to allow the 911 Center to remain in the LEC for two years rent-free. Dr. Queen advised that the Board of Trustees would have to agree to allow the 911 Center to remain rent-free for two years and stated he was not sure what the proper procedure would be. Chairman Davis informed Dr. Queen that he realized it was difficult to respond to the rent-free issue at a public meeting because he had to confer with the Church Board of Trustees. He again requested direction from the Board. Vice-Chairman Greer advised that two years ago, the prior Board made the decision to expand the Jail due to the threat of a lawsuit concerning overcrowding. At that time, the Board was informed that it would be too costly to expand the LEC at the existing location. The former Board decided to build a new jail and dispose of the LEC to avoid having to maintain two buildings. Since the new jail will be open in the near future, the current Board decided to offer the building for sale. First Baptist Church made an offer and the Board referenced concern for the heating and cooling system, the 911 Center remaining in the LEC, and the amount of money received to purchase the building. The Church has addressed these concerns in the offer presented. In addition, Dr. Queen has outlined the special services that will be provided to the community through the establishment of an Urban Ministry Center. If the Board accepts the offer, there will be a 10-day upset bid process to allow anyone to submit a bid offering more money for the LEC. The Church or any other person will have a 10-day period to submit a higher bid. This process will allow the County to receive more money which will benefit the taxpayers. If the Church is successful, the Urban Ministry Center will provide a much needed service to the community. He suggested accepting the offer and making it official when the documents are presented to the County Attorney and the five percent deposit is submitted to the Clerk to the Board. Commissioner Pritchett commented on the need to hold a Public Hearing before taking action and stated that she was not in disagreement with the Church’s proposal but she did feel the public should have an opportunity to speak. She also asked if any discussion had been held with the City regarding compliance to zoning regulations and stated this was another reason a meeting should be held to discuss these issues before a definitive decision is made. Chairman Davis advised that if the offer is accepted as suggested by Vice-Chairman Greer, the County would be paying $4,000 rent per month for the 911 Center to remain in the LEC. Vice-Chairman Greer advised that in the worst case scenario, the rent would amount to $96,000 which would reduce the offer to $904,000. If any one feels that the LEC is worth more money, an upset bid can be submitted during the 10-day process. This is a fair offer and it is unlikely that anyone will pay more for the LEC. If the $1,000,000 offer is accepted, a liability will be removed from the taxpayers because it will take at least $2,000,000 to repair the building. Accepting this offer means that the County will have an additional $3,000,000. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to accept the $1,000,000 offer from First Baptist Church to purchase the LEC with the exception of having to pay rent in the amount of $4,000 per month for the 911 Center to remain in the building for two years. If the 911 Center has not been relocated within the two-year period, the Church can begin charging rent. In discussion of the motion, Chairman Davis commented on putting the ball back in the Church’s court and NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 733 asked if the correct procedure would be for the County to make a counter offer requesting the rent exception instead of accepting an offer. County Attorney Copley advised that Commissioner Caster is saying that the County should accept the offer from First Baptist Church and make a counter offer not to pay the $4,000 per month in rent for the 911 Center space in the LEC for a period of two years. Amended Motion: Commissioner Caster MOVED, SECONDED Commissioner Boseman, to accept the $1,000,000 offer and make a counter offer to First Baptist Church contingent upon the 911 Center being rent-free for two years. Chairman Davis advised that if the Board decides to make a counter offer, the offer should be in writing and submitted to the Church. County Attorney Copley advised that under real estate law in North Carolina, there would have to be a written document. The dilemma in this case is the five percent deposit. She suggested that Mr. Trice should provide a written offer for the Board to consider without the five percent deposit. Once the offer is accepted by the Board of County Commissioners, the five percent deposit should be submitted and the upset bid offer will be advertised in the paper a day after the offer is approved. Dr. Queen asked if a counter offer is made by the County to the Church, and a meeting of the Board of Trustees is held tomorrow morning with a decision made to accept the counter offer, would this action be sufficient for the Church to move forward once the deposit check is submitted to the County. County Attorney Copley advised that the Board of County Commissioners would have to vote to accept the offer. Chairman Davis stated that a oral contract is not worth the paper it is written on. County Attorney Copley advised that the Board can discuss negotiating points and then request the Church to bring in a written offer tomorrow. Vice-Chairman Greer advised that the Board can decide on the terms and take official action with the County Attorney and Church officials working out the details in the contract. Commissioner Caster asked if the motion was to make a counter offer. Dr. Queen again asked if the Board votes to make a counter offer and the Church accepts the offer tomorrow and submits a deposit check, will this start the process. Chairman Davis responded that if the Board makes a counter offer and the Church accepts the offer, this would be a done deal. County Attorney Copley advised that the Board would have to authorize the Chairman to execute the contract on behalf of New Hanover County. She suggested that the Church send a contract which can be faxed to the five Commissioners for comments. Once the Commissioners agree on the conditions in the contract, the Chairman can sign the contract. The motion made by Commissioner Caster has only one change in the conditions which is rent-free space for the 911 Center for two years. Chairman Davis requested each Commissioner to look at the last page of the proposal presented by the Church regarding the heating and cooling system and decide which option should be placed in the counter offer. Dr. Queen advised that both the County and Church have 150 days to consider issues of this type. Commissioner Caster asked what the position of the County would be if all of the issues are reviewed in the 150-day period, and one item or condition is not satisfactory. County Attorney Copley responded that North Carolina General Statutes allow the Board at any time to reject any and all offers; however, this is a unique situation. The Board should consider all the conditions offered by the Church and decide what conditions will or will not be accepted. For example, if the Board does not want to give the Church 150 days, the counter offer should contain this information because an upset bid may or may not be received during the 10-day upset bid process. Commissioner Caster stated that he thought allowing the Church 150 days was imminently fair because it gives the congregation adequate time to consider and decide on the conditions. County Attorney Copley advised that the Commissioners can accept the 150-day period as a condition of the counter offer to the Church, and if an upset bid is received for more money in 10 days and that person does not want the 150 days, the Board has another offer. In further discussion, Commissioner Caster commented on the offer from the Church being satisfactory except for the options outlined on the heating and cooling system in Dr. Queen’s letter. He asked if the Board should review and decide on one of the two options. Dr. Queen spoke on dealing with a legal transaction and stated that various issues will have to be addressed. The Church has come to the Board of County Commissioners in the spirit of trying to provide an Urban Ministry Center NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 734 to meet human needs in the downtown area. The Church does not have a bottomless pit of money, but there are volunteers who will make this type of ministry happen. The Church has made a good faith effort to work with Finance Director Shell and other people in the County in responding to issues of concern. The Church wants to be good a citizen creating this type of ministry apart from their faith perspective. The Church is willing to pay and do the necessary things that are possible to accommodate the County. Chairman Davis asked if any other member of the Board would like to comment. Commissioner Boseman commended Dr. Queen and the other clergy for undertaking this project and stated that she had personally struggled with what could be done to help the homeless. As a person who works in downtown Wilmington, she sees many homeless people who have been dumped on the streets and forgotten since the Mental Health Reform Act was implemented. She expressed appreciation to Dr. Queen and others involved in the project for offering to help these citizens. Chairman Davis asked if the appropriate motion had been made. County Attorney Copley responded that after discussion with Finance Director Shell, she felt the motion should include authorization for Chairman Davis to sign the contract on behalf of the County. She again suggested that if the offer is accepted, a written contract will be prepared and faxed to each Commissioner for review and comments. If the contract is satisfactory to the Commissioners, the Chairman will be authorized to execute the contract. If there are any concerns, these items should be forwarded to the Chairman for further review. Second Amended Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to accept the $1,000,000 offer, make a counter offer to First Baptist Church contingent upon the 911 Center being rent-free for two years, and authorize the Chairman to execute the necessary contract documents on behalf of New Hanover County. Vice-Chairman Greer noted that he did not have a problem with authorizing the Chairman to execute the contract, but he did have a problem with voting to accept the offer and then a member of the Board coming back and saying he or she was not satisfied with a condition in the offer. He requested the County Attorney to comment on this issue. County Attorney Copley responded that a written real estate contract must be prepared and signed by the Chairman before it becomes a legal document. The Board has agreed to all the terms in the Church’s offer with the exception of paying rent for the 911 Center. She urged the Board to be aware of the terms in the offer before making a decision. Chairman Davis advised that if the Board votes to accept the offer and First Baptist Church agrees to the rent- free space for the 911 Center, the offer will be a done deal. If the Church does not accept the rent-free space condition, there will be no deal unless the Board reconsiders the offer and votes to allow the Church to charge the rent. County Attorney Copley explained that any change by the Church in the agreed upon terms would be a counter offer. Commissioner Pritchett expressed concern for the public not having an opportunity to comment on the proposed project. She noted that she was a member of Grace Methodist Church and was in favor of the project, but public comments should be received before rendering a decision because the County is not only selling the LEC but accepting the proposed use for the building. Commissioner Boseman responded that people are being informed with the number of articles written in the newspaper. She suggested moving forward with the project. Chairman Davis advised that he also shared Commissioner Pritchett’s concern about not holding a Public Hearing before taking action. He asked if any members of the Board had further questions for Dr. Queen. Chairman Davis requested Finance Director Shell to step forward to answer some questions regarding prisoners being transported from the new jail to the Courthouse. Chairman Davis stated that currently prisoners are temporarily housed in the LEC and then taken through an underground tunnel that connects the LEC to the Courthouse. When the new jail opens and the LEC has been sold, part of the agreement with First Baptist Church is to close the tunnel at the County’s expense. He requested Finance Director Shell to explain what procedure will be used to hold prisoners and carry them to the various courtrooms. Finance Director Shell explained that Staff has discussed the following options for carrying and holding prisoners in the Cobb Judicial Annex Building: Option I: The Sheriff’s Department will transport prisoners from the new jail to the Cobb Judicial Annex off Third Street and pull into the parking lot. A ramp will be constructed for the prisoners to enter the corner building of the Judicial Annex to be held for court appearances. The cost of constructing the ramp is estimated at approximately $15,000. Option II:The Sheriff’s Department will transport prisoners from the new jail to the Cobb Judicial Annex off Third Street and pull into the same parking lot going through a gate that will be closed for security reasons. The prisoners will be rerouted through a corridor to the upper ramp into the Judicial Annex to be held for court appearances. The cost of constructing the corridor and gate would be approximately $100,000. According to the architect, the most secure route would be the fence and NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 735 gate system. County Manager O’Neal explained that after numerous conversations with Sheriff Causey, he was satisfied with the first option, which will move the prisoners directly in the corner building of the Cobb Judicial Annex. There is a holding space in the Judicial Annex that will accommodate the number of prisoners scheduled for court hearings on any given day. Vice-Chairman Greer spoke on discussing this issue with the Sheriff and stated at that time he was satisfied with a fence and gate that closed in and around the lot. He also advised that sufficient space was available on each floor of the Judicial Annex to house prisoners and stated that this option would save money because the County will not have to maintain the existing holding center in the LEC if this building is sold. Chairman Davis requested an explanation of the cost involved with splitting the heating and cooling system at the LEC. Finance Director Shell responded that the estimated cost for the County was $150,000. Chairman Davis stressed the importance of everyone understanding that the County will not receive a $1,000,000 profit from the sale of the LEC because of costs involved with handling security issues when carrying prisoners to the Judicial Annex and costs involved with repairing the heating and cooling system. Dr. Queen again informed the Board that the Church offered the County use of the sally port in the LEC and also offered to repair the gate that has been broken for years. He stressed the importance of the Board understanding that the Church has tried to respond to all issues of concern. The problem with the chiller in the cooling system is a complex issue that will have to be addressed. Chairman Davis stated that his comments were not directed toward First Baptist Church, but he wanted the Board to take into consideration the money being spent as a result of selling the LEC. He also reiterated the importance of holding a Public Hearing to allow an opportunity for the public to speak, particularly when the building being sold belongs to the taxpayers. In concluding his remarks, Chairman Davis advised that he loved First Baptist Church because he was raised and baptized in this church; however, as a County Commissioner he had to do what he felt was best for the County. He stated that he would not have a problem with signing the contract if a majority of the Board votes to accept the offer. Chairman Davis called for a vote on the amended motionmade by Commissioner Caster and seconded by Commissioner Boseman, to accept the $1,000,000 offer and make a counter offer to First Baptist Church contingent upon the 911 Center being rent-free for two years and authorize the Chairman to execute the necessary contract documents on behalf of New Hanover County. Upon vote, the MOTION CARRIED 3 to 2. Chairman Davis and Commissioner Pritchett voted in opposition. Dr. Queen expressed appreciation to the Board for the time given to hear and take action on the request. DEFERRAL OF ACTION TO HIRE A CONSULTANT TO STUDY OPTIONS TO IMPROVE THE PUBLIC SAFETY RADIO SYSTEM COVERAGE SOUTH OF SNOWS CUT Chairman Davis welcomed Mr. Ray Rothrock, Mayor of the Town of Carolina Beach, and Ms. Betty Medlin, Mayor of the Town of Kure Beach. He requested Assistant County Manager Dave Weaver to begin the presentation. Assistant County Manager Weaver reported that Staff has been meeting with the Mayors of Carolina and Kure Beaches, Staff members of each beach, and others to address the lack of adequate public safety radio coverage south of Snows Cut. The major issue is that emergency responders are not always able to transmit out with their hand-held radios, which can create dangerous situations. Although the issue is complex, the group feels there are two possible solutions: 1) Re-configuration of the existing system of conventional repeaters at an estimated cost of $200,000. 2) Development of a new simulcast 800 MHz system that could parallel and operate in harmony with the existing 800 MHz system at Flemington. This option will cost several million dollars, but the system will provide additional benefits, such as increased backup for the existing 800 MHz system. Staff recommends hiring an outside independent consultant to review the options and assist staff with finding the coverage problem that currently exists south of Snows Cut. In the agenda package, there is an attached Request for Qualifications (RFQ). The cost of the proposed study is estimated at $50,000 or less depending upon negotiated services. Since no funds were budgeted for a study in the current fiscal year, funding will have to be allocated from the Appropriated Fund Balance. Assistant County Manager Weaver requested the Board to direct Staff to solicit qualifications packages from consultants for a scope of work at a cost not to exceed $50,000 and approve the associated budget amendment. He also requested the Board to consider designating one Commissioner to work with Staff during the process. Chairman Davis asked Mayor Betty Medlin if she would like to speak. Mayor Medlin expressed appreciation to the Board for considering this item and referenced the position taken by the Kure Beach Town Council as stated in the letter to Chairman Davis dated August 15, 2003. She advised that Mr. Dennis Cooper, Chief of the Kure Beach Police Department, would be making the presentation on behalf of the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 736 Town Council. Chief Cooper reported that he had been involved with the radio system since 1997 and stated that the coverage to Kure Beach is not acceptable. From the police vehicles, there is coverage a majority of the time but there is no coverage from the hand-held radios. Over the years, numerous attempts have been made to correct the problem, from installing conventional repeaters to adjusting the antenna with no success. In closing, Chief Cooper advised that after working on this problem for a number of years, he felt the only solution was the simulcast 800 MHz system. This system will not only correct the problem for Kure Beach, but it will be the best option for New Hanover County. The conventional repeater is a “band-aid” fix that has never worked, and this approach will permanently exclude the Town of Kure Beach from the 800 MHz trunking system. Commissioner Pritchett asked if other counties could be included in the 800 MHz system. Emergency Management Director Warren Lee responded that surrounding counties have not chosen to participate in the SmartNet Motorola System used by New Hanover County. Brunswick County is implementing a new system comprised of emerging new technology that is based on channels being combined. Different radio frequencies are combined by the computer, which allows people to talk whether using a low ban, high ban, or 800 MHz system. It also appears that the State of North Carolina is moving toward 800 MHz as the preferred system to be used throughout the state. Chief Cooper explained that the 800 MHz user list could be extended to multiple county and city agencies; however, it would be more expensive. Director Warren Lee explained that the trunked 800 MHz five channel system was originally installed to be used primarily by the New Hanover County Fire Service. This system evolved into a fourteen channel system with a repeater system on a tower located at Flemington which was supposed to provide coverage for the entire County. When the system came on line, it was discovered that due to the configuration of the antenna there were weak spots in the southern parts of the County, Carolina Beach, Kure Beach, and Castle Hayne. To alleviate some of the problems occurring at the southern end of the County, a decision was made to install a conventional two channel 800 MHz system on the Seabreeze tower which is separate from the trunked 800 MHz system that serves the remainder of New Hanover County. This simply means that Carolina Beach and Kure Beach are isolated with two channels that are not in direct communication with the remainder of the County. When the existing system is working, persons can talk to each other but they cannot talk to another agency. If there is a need to talk with the Sheriff’s Department or a Fire Department responding to a mutual aid call, it is necessary to manually select a different channel before communication can begin. In closing, Director Warren advised that this was a complex issue that must be addressed so the southern end of the County and the Castle Hayne area can receive the same quality of service as provided in other parts of the County. Chairman Davis referenced the assessment made by Police Chief Cooper saying that using a conventional repeater would exclude Kure Beach from the system being used by the County. Director Warren responded that a two-channel repeater is already in place on the Seabreeze tower. Adding another repeater to the system will not improve the communication problem. It would be beneficial to hire a consultant to look at the existing system and determine if anything can be done at the Seabreeze tower or Flemington tower to enhance the coverage to the southern end of the County and to the Castle Hayne area. Assistant County Manager Weaver advised that the two-channel repeater currently serving Carolina and Kure Beaches does not work. If an officer has a hand-held radio, the repeater does not work better than trying to communicate through the County’s trunk system. The need for a consultant is to see if the existing system can be modified or changed to provide enough coverage for a policeman or fireman using a hand-held radio in an emergency situation to communicate to the 911 Center for help. At the present time, a policemen using a hand-held radio behind a sand dune cannot request help from the dispatch center. To improve this level of service will cost at least $200,000. If the Commissioners want to provide the simulcast 800 MHz, the problem will be corrected but the cost will be several million dollars. County Manager O’Neal interrupted the discussion and stated after talking with Mayor Medlin and Mayor Rothrock, he felt that it might not be necessary to hire a consultant; therefore, he would recommend tabling this item until the September 2, 2003 Board meeting. Chairman Davis expressed appreciation to County Manager O’Neal for wanting to approach the problem in the right way. He asked if Mayor Rothrock would like to speak. Mayor Rothrock, representing the Town of Carolina Beach, stated that the solution would be a simulcast 800 MHz system at a cost of approximately $2,700,000 to $3,800,000. If $50,000 is spent to hire a consultant, the answer will be a simulcast system. In working with Kure Beach officials, County Staff, the Sheriff’s Department, Public Safety, and the Emergency Management Department, it was discovered that the area not receiving coverage was not only Carolina Beach and Kure Beach, but the entire southern end of New Hanover County. The existing radios do not know where Snows Cut is located. It is unfortunate that a tower was constructed at Flemington in the northern part of the County to cover all of New Hanover County. He advised that he was just contacted by Mr. Benjamin Quattlebaum, Director of the Housing Authority, about co-locating an antenna on top of Solomon Towers, which could possibly work. He requested all parties involved to work together to resolve the problem in the most cost efficient manner. Commissioner Caster advised that he had no problem with tabling this issue as requested by the County Manager, but stated when the tower was located in Flemington, the Board at that time was told that the Motorola 800 NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 29 REGULAR MEETING, AUGUST 18, 2003PAGE 737 MHz system was the best and would provide coverage to all parts of New Hanover County. Now, the Board is being told the system does not work for the southern part of the County and the Castle Hayne area. He advised that a lot of money was spent on the current system and asked who will make the decision to decide if an antenna should be co-located on Solomon Towers or whether land will have to be purchased to construct a tower. He stressed the importance of hiring an expert who is qualified to look at the current system and see what should be done to resolve the problem. Chairman Davis reported that he would not be attending the next meeting because his daughter was starting her first year of college and he would be attending the orientation. Since this item will be placed on the agenda for September 2, 2003, he stated for the record, he did not feel a price could be placed on a life, but he was not in favor of paying a consultant $50,000 until time has been allowed for Staff to further review the recommendations discussed. He also requested Mayor Rothrock to work with Mr. Benjamin Quattlebaum to see if an antenna could be co-located on Solomon Towers. Commissioner Caster suggested that the Medical Center may be another site to be consider for placement of an antenna. Chairman Davis requested direction from the Board. Consensus: After discussion, it was the consensus of the Board to defer action on this item until the September 2, 2003 Board meeting. MEETING CONVENED FROM REGULAR SESSION TO HOLD A REGULAR MEETING OF THE WATER AND SEWER DISTRICT Chairman Davis convened from Regular Session at5:50 p.m. to hold a meeting of the Water and Sewer District. Chairman Davis reconvened to Regular Session at 6:20 p.m. NON-AGENDA ITEMS Chairman Davis announced that time had been reserved to allow the public to present an item that was not listed on the regular agenda. He requested all persons speaking to limit their remarks to three minutes. . No items were presented ADDITIONAL ITEM Chairman Davis announced that the City’s Convention Center Task Force will meet on Tuesday, August 19, 2003, at 12:00 noon in Council Chambers to hear a report on the selection of a site for the Convention Center. He advised that he attended the last meeting and forwarded the report discussed to the Commissioners. He stated that he th could not attend the meeting on the 19 of August and asked if any other Commissioner was planning to attend. Commissioner Caster responded that he had planned to attend and would be glad to bring back the report for the Commissioners to review. ADJOURNMENT Chairman Davis expressed appreciation to the Board and Staff for the manner in which they handled a nine- hour meeting with so many controversial issues. He called for a motion to adjourn the meeting. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis adjourned the meeting at 6:30 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board