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2003-01-13 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 460 JANUARY 13, 2003 ASSEMBLY The New Hanover County Board of Commissioners met in a Special Session with the Wilmington City Council on Monday, January 13, 2003, at 5:00 p.m. in Council Chambers, City Hall, 102 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. City Council Members present were: Mayor Harper Peterson; Mayor Pro-Tem Katherine B. Moore; Council Member Frank S. Conlon; Council Member Laura Padgett; Council Member Jim Quinn; Council Member Jason Thompson; City Manager, Sterling B. Cheatham; City Attorney, Thomas C. Pollard, and City Clerk, Penelope Spicer- Sidbury. Council Member Sandra S. Hughes was absent. Mayor Peterson and Chairman Davis called their respective boards to order and welcomed everyone present. Mayor Peterson stated that Chairman Davis and he had been communicating with each other about consolidation over the past few weeks. He advised that Chairman Davis transmitted a letter to the City Council last week stating the position of the Board of County Commissioners on the consolidation issue. He requested Chairman Davis to present a few remarks about the letter. Chairman Davis advised that when discussion was held by the Board on the consolidation issue, the Commissioners felt that an up-front and honest approach should be taken on the position of the Board. It was agreed that a letter should be written and forwarded to the City Council before the joint meeting so Council Members would be aware of the position taken by the Board. Chairman Davis read into the record the letter dated January 6, 2003 from the New Hanover County Board of Commissioners to Mayor Harper Peterson and the Wilmington City Council: At the January 13, 2003 joint meeting of the City Council and County Commissioners, the County will request the City Council to vote to establish a Consolidation Study Commission, pursuant to N.C.G.S. 153A-401, in order to prepare a plan for consolidating all functions and services of the City and the County with that plan being brought back to both boards for approval, and then voted upon by the citizens affected by the consolidation in the November 2004 general election. If the voters approve the plan for total consolidation, the approved plan will be submitted to the North Carolina General Assembly so that the consolidation may become effective by enacting the plan into law. If the voters reject the plan for total consolidation, the County Commissioners and City Council may proceed with discussing functional consolidation of individual departments. Separate and apart from the above, the County Commissioners wish to work with the City Council in fulfilling obligations of the December 9, 1996, contract for joint expansion of the City’s Northside Wastewater Treatment Plant. Over six years have passed and there is little progress towards construction of the joint Northside Wastewater Treatment Plant expansion. The County will request that the City notify the County by resolution of its intention for moving expeditiously on contract fulfillment no later than February 15, 2003. If the City does not act to proceed pursuant to the terms of the December 1996 contract, the County will be forced to unilaterally construct its own wastewater treatment plant. Chairman Davis advised that if the City Council decides to move forward with this request, time will be involved with the selection of a Consolidation Study Commission and the preparation of a consolidation plan. He noted that during this time, there was nothing to prevent the City Council and Board of County Commissioners from discussing the merger of individual departments as long as both boards understand that the goal is for a consolidation plan to be presented to the voters in November 2004. Chairman Davis advised that when discussing partial and functional consolidation, the Commissioners were concerned about water and sewer services. The second portion of the letter was written with input from Vice-Chairman Greer, Chairman of the New Hanover County Water and Sewer District Board, and Commissioner Pritchett, Vice- Chairman of the Water and Sewer District Board. The Commissioners want to work with the City Council in fulfilling the obligations of the December 9, 1996, contract for joint expansion of the City’s Northside Wastewater Treatment Plant. Over six years have passed with very little progress being made on the joint expansion. The Board is requesting the City Council to notify the Board by resolution of its intent to move expeditiously on the contract fulfillment no later than February 15, 2003, or the County will have to construct its own wastewater treatment plant. Chairman Davis explained that when the contract was signed, it was his understanding that New Hanover County had an option to purchase land to construct its own wastewater treatment plant. Funds were spent to hire an engineer to design a plant. Based upon the 1996 contract, the County backed off and decided to join the City in expanding the Northside Wastewater Treatment Plant. The Commissioners are concerned about sufficient capacity in the existing Northside Wastewater Treatment Plant to accommodate the needs of the County for future development. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 461 JANUARY 13, 2003 Mayor Peterson responded that the intent of the City Council is to move expeditiously on fulfilling the contract regarding expansion of the wastewater treatment plant. Mayor Pro-Tem Moore spoke on there being obstacles in the past and she encouraged the City Manager and County Manager to move forward with fulfilling the contract that was adopted in 1996 to jointly expand the Northside Wastewater Treatment Plant. Council Member Conlon advised that members of both the City and County Staff have been working on securing the State permit for the joint expansion. It appears that the City is close to receiving the permit. Commissioner Boseman commented on holding a joint meeting two years ago about the expansion and stated that she was concerned about the permit not being received in time to expand the wastewater treatment plant to handle the capacity needed by the County in the near future. Vice-Chairman Greer advised that the problem with the permitting process is that the City is fighting the State about lowering discharge limits, and an attorney has been hired to fight the battle in court, which will hold up the process. He stated that unfortunately the County does not have time to wait until this battle goes through the court system. County Manager O’Neal explained that a meeting has been held with City Staff about the issuance of the State permit. The State has a 5 to 1 limit, and the City does not want to change this limit. County Staff understands this position, but with the need for capacity in the near future, it is imperative for this joint expansion to move forward. The County Engineering Director and the City Director of Utilities are meeting in Raleigh this week regarding the discharge limit. After further discussion, Mayor Peterson requested the City Manager to work with the County Manager to move ahead with the joint expansion of the Northside Wastewater Treatment Plant. He also requested the City and County Staff to report back to both governing bodies after the meeting has been held in Raleigh, so everybody will understand the issue. Chairman Davis referenced a resolution signed by both governing bodies in 1996 to establish a committee comprised of two (2) City Council members and two (2) County Commissioners to develop a specific plan for uniting all City and County water and sewer services as authorized by the General Statutes. An interim report, by that committee, was to be presented to both governing bodies on or before May 1, 1997. The resolution also stated that, “the structure shall be instituted on or before December 1, 1997.” Chairman Davis advised that he wrote a letter to Mayor David Jones on October 24, 2002 and requested the City Council to appoint two Council Members to serve on a committee to develop a specific plan to merge water and sewer services as outlined in the concurrent resolution adopted in 1996. However, since Mayor Peterson had already been elected Mayor at that time, Mayor Jones decided to wait and request Mayor Peterson to move forward with appointment of two members to serve on the committee. A letter was written to Mayor Peterson dated February 21, 2002 requesting appointment of two Council Members to serve on the committee. A response was received from Mayor Peterson dated February 27, 2002 saying that a resolution would be introduced at the March 5 meeting of the City Council. As of this date, the Council Members have not been appointed. Council Member Padgett advised that two previous committees were appointed in 1996 and 1997 to develop a plan to combine water and sewer services with no agreement being reached. She stated that she served on the first committee with former Mayor Hamilton Hicks, Commissioner Caster, and Commissioner Howell and no agreement was reached; therefore, the City did fulfill its obligation. She suggested referring the appointment of two Council Members to the City’s Appointments Committee. Mayor Peterson assured the Board of County Commissioners that the City Council would move forward with addressing the water and sewer issue. Mayor Peterson advised at the City Council retreat held on Saturday, January 11, 2003 the Council unanimously adopted the following motion: To proceed with functional consolidation, jointly identifying the most appropriate functions/departments for such. Simultaneously, a blue ribbon citizens committee would be appointed to evaluate options, explore the modification of specific state statutes, bring recommendations forward as to which approach, i.e., continuing functional consolidation or full consolidation would be most appropriate, and how best to proceed. Mayor Peterson stated that the City Council does want to work with the County and he opened the floor to receive comments from members of the City Council. Council Member Jason Thompson spoke on not having served as an elected official for a long period of time and stated that the most important thing now is for both governing bodies to get something done. He commented on the financial forecast for City and County water and sewer operations and stated that the City has a self-sufficient water and sewer operation. He presented the following figures on money transferred from the sales tax to support the operation of the County Water and Sewer District noting that each year the City’s transfer was zero: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 462 JANUARY 13, 2003 YearSales Tax Transfer FY 1998-99 $5.7 million FY 1997-98 $6.0 million FY 1996-97 $5.5 million Projected Transfers: FY 2003-04$4.4 million FY 2004-05$6.4 million FY 2005-06$8.5 million FY 2006-07$6.7 million Years 2007-2011$6.0 million each year Council Member Thompson expressed concern for his sales tax being well utilized and stated that counties do not normally provide water and sewer services. He requested an explanation of why these sales tax transfers were necessary. Vice-Chairman Greer responded that a portion of the sales tax is transferred to the Water and Sewer District for the provision of water and sewer. It is important to note that in areas annexed by the City, residents were already receiving water and sewer services paid from County dollars; therefore, the City did not pay a nickel for installing the water and sewer lines in these areas. If these lines had not been in place, the City would have spent a large sum of money to construct the lines. Commissioner Boseman advised that she did not feel the County was opposed to paying its fair share if water and sewer services can be combined. The two governing bodies need to move forward with reaching an agreement, particularly since both governments have qualified managers. Council Member Conlon stated that the impasse on combining water and sewer services in the past was not just money. The County wanted one form of operation and the City wanted another form of operation. The dollars can be worked out between the governing bodies; however, the method of operation has never been agreed upon. Council Member Padgett advised that if the County would operate the water and sewer service like the New Hanover County Fire Tax District, there would be some tax equity between the City and County that could move consolidation issues forward. She stated that she would like to see the numbers projected if the County established a Water and Sewer tax outside the incorporated limits of the City. Commissioner Boseman responded that a Water and Sewer Tax District could be addressed in the consolidation plan. Mayor Peterson requested the Board of County Commissioners to consider establishing the Consolidation Study Commission and expanding its scope to include partial/functional consolidation. Chairman Davis responded that the major difference between both governing bodies is with the role of the Consolidation Study Commission. The County Commissioners want to establish a Commission pursuant to the General Statutes to prepare a plan to place before the voters so they can decide on full consolidation. The voters deserve the right to make this decision. It appears that the City Council would like to establish a Commission to look at other options, and/or full or partial consolidation. In concluding his remarks, Chairman Davis stated that in order to be truthful, he had to comment on a joint meeting held at the Coast Line Convention Center when Commissioner Birzenieks and Commissioner Howell were serving on the Board and the City Council was informed that all five members wanted a plan prepared to move forward with full consolidation. The City Council at that time was not in favor of the full consolidation effort and wanted to further study the issue. Both governing bodies finally agreed to hire Dr. Suzanne Leland to conduct a study at a cost of $38,000 with each government paying half the cost. A study was performed by Dr. Leland, and as of this date nothing has been done with the study. Chairman Davis asked why further study was needed and requested an explanation of why the City Council is opposed to establishing a Consolidation Study Commission to prepare a plan to allow the voters to decide on consolidation. Council Member Conlon responded that the recommendation of the Leland study was to initially merge several functions to develop a track record and eventually move toward full consolidation. Commissioner Boseman noted that the Leland study recommended merging water and sewer services as one of the major functions. Council Member Conlon responded that the study did recommend merging water and sewer services and law enforcement, but it also noted that these departments would be difficult to merge and recommended moving forward with combining the Planning and Parks Departments. Commissioner Boseman asked Council Member Conlon what functions he would like merged. Council Member Conlon responded the three P’s, Parks, Planning, and Purchasing. These functions would not be difficult to merge and would be beneficial to the citizens. Chairman Davis advised that he had a copy of the study and the three recommendations were: (1) do nothing; NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 463 JANUARY 13, 2003 (2) look at functional consolidation, which included water and sewer; and (3) full consolidation. He asked why further study was needed. Council Member Conlon responded that another study should not be conducted, but partial consolidation should be the initial step instead of full consolidation. Council Member Padgett stressed the importance of knowing the legislative ability of one consolidated government to provide municipal services. She asked if a greater County government is created as required by State th Statute, what would happen to the authority granted to municipalities to build roads, such as the South 17 Street Extension, Randall Parkway, and a portion of Independence Boulevard Extension. She asked if funds would be available for similar projects and stated at this time, the two governing bodies do not have answers to these questions. She stressed the importance of having these type of questions addressed by the legislature before moving forward with consolidation. Commissioner Pritchett advised that functional consolidation of departments can be achieved by Staff without formation of an outside study committee, which in her opinion, is the best way to approach these mergers. However, the Board of County Commissioners agreed to request the City Council to establish a Consolidation Study Commission to present a plan to the voters. It appears that Council is not in agreement; therefore, the Board of County Commissioners will have to decide what should be done. Commissioner Caster advised that he was in favor of full consolidation and suggested that both governing bodies move forward with establishing a Consolidation Study Commission to present a plan to the voters in 2004. During this time, issues such as the one referenced by Council Member Padgett do need to be addressed by the legislature. He expressed concern for proceeding with functional consolidation and 25 years later having only a few departments merged. Commissioner Boseman suggested moving forward with full and functional consolidation including water and sewer services. Vice-Chairman Greer reminded both boards that any decision made should be for the best interest of the citizens. The citizens have requested an opportunity to vote on a consolidated form of government; therefore, both governing bodies should allow the voters to decide on what type of government they want. If consolidation is rejected, both governing bodies can then consider merging some departments. He also stated that he did not feel more study was necessary. Mayor Pro-Tem Moore noted that it was sad to see both governing bodies discussing the consolidation issue again when $38,000 was spent for a study. None of the recommendations in the study have been followed. The study suggested merging transportation, fleet management, and other services that could have easily been merged. She spoke on always being in favor of consolidation, but stated it now appears that no consensus will be reached by the City Council. In past consolidation efforts, there have been major obstructions from the higher level of staff participation, which no longer exist; therefore, if a consensus cannot be reached at this meeting, she would encourage both governing bodies to request the two managers to move forward expeditiously to determine what departments can be merged. In concluding her remarks, Mayor Pro-Tem Moore agreed with the comment by Commissioner Pritchett regarding departmental mergers and stated that City and County Staff must be the major players in the merging process. Council Member Conlon advised that every elected official has been approached by citizens who say they want consolidation. It is difficult to know if the citizens really want a consolidated board comprised of 5, 7, 11, or 12 elected officials running one government. The motivation and popular perception of consolidation is to save money, eliminate redundancy and create greater efficiency. There is a difference between the popular perception of consolidation and the technical definition of consolidation. The technical operation of one consolidated government will be entirely different with respect to management and appropriation of funds within the organization. He stated that he was not ultimately opposed to one government if the right approach is taken. He suggested moving forward with functional consolidation that can be accomplished by an agreement between the two governing bodies. Staff can develop the plan under the direction of both governing bodies, and this approach will begin to satisfy the popular demand for minimizing redundancy, decreasing expenses, increasing efficiency, and cutting costs. In the meantime, the issues referenced by Council Member Padgett regarding roads and other responsibilities of municipalities must be addressed by the legislature before a citizens committee is established to develop a plan. Council Member Padgett spoke on the cost of consolidation and the time required by Staff to provide information to the Study Commission and stated that she still has reservations about the value of committing this amount of time and money toward this effort. She also noted that regardless of what decision is made, any group appointed will need to know how the legislative issues will be addressed before a plan can be prepared to consolidate the two governments. Council Member Jim Quinn advised that the traditional organization structure throughout the State of North Carolina is for cities to provide urban services and for counties to provide services to non-urban areas. A simple solution would be for the County, in whatever areas they are duplicating urban City services, to turn those services over to the City and allow the City to operate these services. Approximately 80% of budget functions performed by the County are State mandated functions, such as schools, social services, jails, and courts. These functions are enough for any county to manage, and the City has no experience in these areas. Realistically, neither government wants to give up what they currently have; therefore, the best approach is to continue discussion on tackling redundant duplicated items, one by one; continue to provide services that each government does best; and combine or trade services whenever possible. The Leland Study did not recommend full consolidation, but it did recommend combining individual departments as NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 464 JANUARY 13, 2003 deemed appropriate by both governing bodies. Consolidation has been placed on the ballot two times and it has failed both times. Pragmatically, if the two governing bodies are going to make any progress, one function, whether Water and Sewer, Parks, Planning, or Purchasing, should be selected by the two governing bodies and work should begin immediately on merging that function. Council Member Thompson spoke on paying $38,000 for a study that said do nothing, something, or all and stated that everybody has reached different conclusions; therefore, he is not in favor of performing another study. He stated that he was prepared, in the spirit of moving forward, to take the Chairman’s letter and approve the first three paragraphs, which basically says we are going to establish the Consolidation Study Commission pursuant to N.C.G.S. 153A-401. The Commission will prepare a plan for consolidating all functions and services of the City and the County that will be voted on by the citizens in the November 2004 general election. If the voters reject the plan, then both governing bodies will look at functional consolidation. He also suggested including the water and sewer treatment plant expansion as part of the functional consolidation process. Vice-Chairman Greer explained to Council Member Thompson that the joint City-County expansion of the Northside Wastewater Treatment Plant was a separate issue that was agreed upon by both governing bodies several years ago; therefore, this contract should be fulfilled and every effort should be made to expeditiously move forward with this expansion. He stated that the Commissioners are in agreement with the first three paragraph of the letter. Mayor Peterson asked Council Member Thompson if he was in agreement with the intent of the language in the first three paragraphs of the letter received from the Board of County Commissioners. Council Member Thompson responded that he was in agreement with the first three paragraphs, establishing the Consolidation Study Commission, taking the plan to the voters in 2004, and if consolidation is rejected, the two governing bodies will start functional consolidation. Mayor Peterson advised that establishing a Consolidation Study Commission to prepare a plan for consolidating all functions and services of the City and County was a strong charge that will require a tremendous amount of work from City and County Staff. Council Member Thompson responded that the proposed recommendation will require work; however, the legislative concerns by Council Member Padgett must be addressed as part of the consolidation process. A lengthy discussion followed on when the charter for a consolidated government would have to be approved by the General Assembly. City Attorney Pollard explained that in the first consolidation effort, the charter was presented to the General Assembly and adopted by that body subject to approval of the voters. In the second consolidation effort, the charter was submitted to the voters with the intent of the charter being forwarded to the General Assembly if it was approved by the voters. The Statue does not specifically say that the charter must be approved before the voter referendum. The 1995 legislation was changed to incorporate language regarding adoption of the debt to be sure that the consolidated government was assuming the debt of the unit being dissolved, which in this case would be the City. Council Member Padgett expressed concern for the General Assembly making changes to the charter after it is approved by the voters. She stated that the best approach would be for the General Assembly to approve the charter and then place the document before the voters. Mayor Peterson asked if the General Assembly could have changed the 1995 charter if it had been approved by the voters. City Attorney Pollard responded that changes could have been made by the General Assembly. Mayor Peterson stated that if both boards decide to move forward with consolidation, he felt it would be important to work with the local legislative delegation to reach a consensus on the charter before the voter referendum so changes would not have to occur after the vote. After hearing no further comments, Mayor Peterson noted that Council Member Thompson has made a recommendation to create the Consolidation Study Commission to prepare a plan for consolidating all City and County functions and services with the plan being voted on subsequently by the citizens in the November 2004 general election. Council Member Jim Quinn asked if the County had developed a method for selecting members to serve on the Consolidation Study Commission since this recommendation has been suggested by the County. Chairman Davis responded that if the City Council adopts the recommendation submitted by Council Member Thompson, he and Commissioner Pritchett would be glad to begin meeting with Mayor Peterson and Council Member Quinn to complete the work previously done on the selection of a Consolidation Study Committee. Vice-Chairman Greer suggested deciding on the number of members to serve on the Consolidation Study Commission with half of the members appointed by the City Council and half appointed by the Board of County Commissioners. This procedure would be simple and it would allow each governing body to appoint people they want to serve on the Commission. Mayor Peterson advised that he, Council Member Quinn, Commissioner Pritchett, and Chairman Davis served on a committee to select a Blue Ribbon Task Force to study governmental consolidation. In March 2002, a Request for Participation (RFP) was prepared by the committee to appoint a Blue Ribbon Task Force. The Task Force was to be comprised of 11 to 15 members. The applicants were to be creative, experienced, and civic minded individuals who NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 465 JANUARY 13, 2003 could analyze public service and governance needs in the region now and in the future. In addition, these individuals should have expertise in corporate mergers or government reorganization, productivity/efficiency, corporate management, and financial management. This was an excellent proposal to attract the right people to serve on the Task Force. The same RFP can be used for appointment of members to serve on the Consolidation Study Commission. Commissioner Pritchett explained that the rationale behind the RFP was to select well qualified individuals to serve on the Task Force. The Selection Committee felt that consolidating the City and County into one government would be comparable to consolidating two major industries. For example, if Ford Motor Company and General Motors decided to merge, these corporations would select the most intelligent, experienced, and capable people who had dealt with corporate mergers. The Committee felt that since many highly experienced corporate individuals have moved to our area and are now living in the community, the Committee could contact some of these individuals to see if they would be interested in serving on the Task Force, and then advertise to recruit qualified applicants from the general public. Council Member Quinn advised that discussion has been held on appointing a four (4) member Selection Committee, comprised of two (2) Council Members and two (2) County Commissioners, to determine the categories, review applications, and present recommended applicants to be considered by both governing bodies. Council Member Conlon advised that he was in favor of the RFP, and he called attention to the second bullet and stated it was not consistent with the County’s recommendation for total consolidation. He read the following section from the RFP. To prepare a report recommending either partial consolidation of functions between the two units of government, the complete functional consolidation of all services but the retention of both units of government (each would have jurisdiction over certain regional services), or the complete functional and political consolidation of the two units of government (a single merged unit of government would be formed). Chairman Davis expressed appreciation to Council Member Conlon for pointing out this fact and advised that this section would have to be reworded. After further discussion, Mayor Peterson noted that Council Member Thompson has recommended limiting the Consolidation Study Commission to full consolidation. Council Member Conlon suggested moving forward with selectively merging functions during the consolidation process to satisfy the concerns of the public, which is to save money. Council Member Padgett advised that pursuant to the General Statutes, the two governing bodies have to vote to approve the plan before it can be presented to the voters. She stressed the importance of the plan coming from the Study Commission including all differing opinions so both boards can discuss and adopt the plan. The voters need to know that a tremendous amount of time will be spent by Staff on consolidation instead of working on crime, economic development, and education which are critical needs that must be addressed. The only solution will be to hire more Staff which is not desired by either of the governing bodies. Vice-Chairman Greer expressed concern for not being sure which was the best way to proceed. He stated that if a plan is developed and presented to the City Council and Board of County Commissioners and one or two elected officials do not like a particular part of the plan, it could stop the entire process. He recommended allowing the Consolidation Study Commission to develop the plan with guidance by both governing bodies during the process to prevent the plan from being derailed and never being placed before the voters. After discussion on when the referendum should be called, Mayor Peterson referenced Page 985, N.C.G.S. 153A-405, which reads as follows, and asked at what point should the referendum be called: If authorized to do so by the concurrent resolutions that established it, a Commission may call a referendum on its proposed plan of governmental consolidation. Chairman Davis responded that the concurrent resolution to establish the Consolidation Study Commission will specify when the referendum will be called. Attorney Pollard advised that the statement by Chairman Davis was correct; however, the concurrent resolution can make the call for the referendum subject to final approval by the governing bodies. The concurrent resolution will establish the Consolidation Study Commission and give the purposes of the Commission. Limitations can be placed in the concurrent resolution regarding the scope of responsibilities charged to the Commission, such as the authority to call for a referendum. In Charlotte, the call for a referendum was subject to approval by the City Council and to approval by the Board of County Commissioners. After the plan had been completed by the Study Commission, no referendum was ever called. Council Member Padgett again expressed concern for all the functions of the City being incorporated into the consolidation charter. Attorney Pollard explained that the new unit of government will have all the powers of the county and all the powers of the city. The new government will have authority to levy all taxes that a city and county can levy. There is no question about the ability of the new government to build roads; however, there is a question about the Powell Bill, which will depend upon the structure of the new government. The funds from the Powell Bill will go to the service district building the roads. The scope and jurisdiction of the service district is another question. The theory behind the consolidation is that multiple service districts can be established to match the service delivery to the amount NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 466 JANUARY 13, 2003 people pay for the service. County Manager O’Neal explained that when the County prepares its budget, the County Commissioners vote on two tax rates, one for the ad valorem tax rate and one for the Fire Service Tax District. Under one consolidated government, there could be several taxing districts, with each tax voted upon separately by the consolidated board. Commissioner Caster requested members of both governing bodies to visit the Governing Magazine website, www.governing.com./12Louis.HTM , regarding an article on the merger of the Greater Louisville/Jefferson County consolidated government. This consolidation has gone through similar defeats and there are 80 municipalities in Jefferson County with 26 fire districts. He requested both governing bodies to focus on the big picture and stated with the size of New Hanover County, a consolidated government will better serve its residents and provide the same services to the entire county. Council Member Padgett advised that the Louisville-Jefferson County government is a greater city government because the State of Kentucky allows this type of consolidation to occur. She stated that since her parents and other family members live in Louisville, there are many concerns about how the consolidated government will work. Discussion followed on the beach communities joining in the effort. Commissioner Pritchett referenced a letter from the Mayor of Wrightsville Beach and Mayor of Carolina Beach saying they are interested in participating in the discussion. Mayor Peterson agreed and stressed the importance of including the beach communities in the consolidation process. Motion: Council Member Thompson MOVED for the City Council to adopt the language in the first three paragraphs of the letter dated January 6, 2003 from the Board of County Commissioners with an amendment to the last sentence in the first paragraph to read as follows: The Commission will prepare a plan for consolidating all functions and services of the City and the County that will be voted on subsequently by the citizens in the November 2004 general election after ratification by each elected Board and Council. The MOTION WAS SECONDED by Mayor Harper Peterson for discussion. Motion: Commissioner Boseman MOVED, SECONDED by Vice-Chairman Greer, for the Board of County Commissioners to adopt the language in the first three paragraphs of the letter dated January 6, 2003 from the Board of County Commissioners with the amendment requested by Council Member Jason Thompson. Council Member Thompson asked if the Council wanted to vote on the issue since Council Member Sandra Hughes was not present. Mayor Peterson recommended voting on the motion. Attorney Pollard advised that if this motion is adopted by both governing bodies, the Legal Staff will prepare a concurrent resolution to reflect the amendment in paragraph one. Council Member Conlon expressed concern for starting the process at the wrong end of the ladder. Mayor Pro-Tem Moore stated that she could not understand how the governing bodies can discuss consolidation when they cannot talk about combining water and sewer services. Council Member Thompson responded that water and sewer is a separate issue that is not part of the consolidation charter. He stated that a meeting will be held in Raleigh next week regarding the permit for expansion of the Northside Wastewater Treatment Plant. Council Member Padgett stated that she was not sure she was ready to vote on the motion because there was considerable anxiety at the City’s retreat concerning the letter from the Board of County Commissioners. She expressed concern about the costs involved with the consolidation process. Council Member Quinn requested clarification on how the Consolidation Study Commission would be selected. Mayor Peterson responded that the previous work of the Committee and the draft Request for Participation (RFP) would be the process used to appoint an independent, non-political Consolidation Study Commission. Council Member Padgett asked if a concurrent resolution will be prepared showing the exact charge to the Consolidation Study Commission, the order of the process, and how costs incurred will be paid. Chairman Davis explained that the General Statutes set out what the content of the concurrent resolution will be. Mayor Peterson said if Council Members have specific requests they feel should be included, this can be discussed by both governing bodies. The specific costs, amount of Staff participation, and a schedule of the process can be provided. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 467 JANUARY 13, 2003 Council Member Padgett expressed concern for the “mays” in addition to “shalls” in the legislation on Page 985. She stated that she could not vote on a “shall” until she knew which “may” could become a “shall.” Council Member Quinn asked if both governing bodies adopt concurrent resolutions to appoint the Consolidation Study Commission, will this end discussion of functional consolidation until after the voter referendum. Mayor Peterson stated that he plans to make a motion to immediately begin the study of water and sewer consolidation and other functions. Chairman Davis stated that the County Commissioners are asking for a consolidation plan to be taken to the voters. Then, both governing bodies can work on combining various departments along the way. There is nothing to prevent the governing bodies from taking this approach. Mayor Pro-Tem Moore stated that she would vote for the motion on the floor, which is to move forward with full consolidation, only if both governing bodies are going to come back and proceed with functional consolidation. Motion: Mayor Peterson introduced a motion for the City to immediately appoint two (2) members of the City Council and request the Board of County Commissioners to appoint two (2) Commissioners to serve on a committee to look into functional consolidation of water and sewer services and other departments, not to exceed three at this time. Council Member Padgett stated that the motion on the floor goes back to where both governing bodies were at the beginning of the meeting. If the Board of County Commissioners and City Council are truly interested in consolidation, a vote should be taken on the resolution to move forward with the consolidation process. Mayor Peterson explained that the intent of the motion is to simultaneously move forward with functional consolidation while the Consolidation Study Commission is preparing a plan for full consolidation. Council Member Padgett advised that if a resolution is prepared detailing the charge to the Consolidation Study Commission, costs involved to the City and County, and a time schedule of the process, and another resolution is prepared saying that both governing bodies will proceed with functional consolidation of various departments, she would vote for both resolutions contingent upon final approval by both governing bodies. Chairman Davis stated if the City Council will vote on the motion made by Council Member Thompson, he will make a motion to move forward on combining water and sewer services. Mayor Peterson called for a vote on the motion made by Council Member Thompson. Upon vote, the motion carried 5 to 1. Council Member Conlon voted in opposition because the motion was for total consolidation. Council Member Padgett stated that she thought both governing bodies were going to proceed with functional consolidation and stated if the motion just voted upon did not reflect this action, she would change her vote. Mayor Peterson explained that it was his intent to introduce a resolution. Council Member Conlon stated that Council would have to vote on an amended resolution. Mayor Pro-Tem Moore agreed and stated an amended resolution should be voted upon. Council Member Padgett stated that the third paragraph should be deleted. Mayor Peterson asked Council Member Thompson if he would like to amend his motion to remove the third paragraph. Council Member Thompson asked if the intent of removing the third paragraph is to say that within the two- year period, the governing bodies will proceed with functional consolidation of water and sewer services. Chairman Davis suggested placing the word, further, between discussing and functional. Commissioner Caster advised that he thought Council Member Thompson made a motion that was seconded by Mayor Peterson to approve the first three paragraphs of the January 6 letter from the Chairman of the Board with addition of the following words to the last sentence in Paragraph 1: “after ratification by each elected Board and Council.” Then, Mayor Peterson said that he would make another motion to move forward with combining water and sewer and other departments, not to exceed three functions. Commissioner Caster suggested voting on the first motion to move forward with full consolidation. Mayor Peterson requested Council Member Thompson to clarify the motion and call for a re-vote on the motion. Motion: Council Member Thompson moved to accept the first three paragraphs of the letter dated January 6, 2003 from the Board of County Commissioners with an amendment in the first paragraph to read as follows: The Commission will prepare a plan for consolidating all functions and services of the City and County that will be voted on subsequently by the citizens in the November 2004 general election after ratification by each elected Board and Council. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 468 JANUARY 13, 2003 and in the third paragraph, add the word further between discussing and functional to read as follows: If the voters reject the plan for total consolidation, the County Commissioners and City Council may proceed with discussing further functional consolidation of individual departments. Council Member Thompson stated the motion means between now and 2004, the governing bodies will be working on functional consolidation. The motion was seconded by Mayor Peterson. Substitute Motion: Mayor Pro-Tem Moore moved to eliminate the third paragraph of the letter. Mayor Peterson requested Mayor Pro-Tem Moore to remove the phrase, if the voters reject the plan for total consolidation, and say that the County Commissioners and City Council shall proceed with discussing functional consolidation of individual departments to be determined. Council Member Padgett stated that the proposed language by Mayor Peterson eliminates the fact that discussion on functional consolidation will be on-going. Council Member Thompson stated that he thought a separate resolution would be adopted to address functional consolidation. Mayor Pro-Tem Moore responded that this was why she made a substitute motion to eliminate the third paragraph. Vice-Chairman Greer asked if the City Council could understand the frustrations of the Board of County Commissioners for the past ten years. The Board is now asking the City Council to be sincere about allowing the voters to decide on consolidation. A motion was made and passed. It is difficult to understand why Council wants to go back and change the motion. The Commissioners are in agreement with the first motion and recommended changes. Council Member Thompson requested Council to allow his motion to stand as read. Chairman Davis said that in drafting the letter and discussing the content with his fellow Commissioners, the third paragraph was included because the Commissioners did not want the City Council to think that if the voters turned down total consolidation, the Board would not be willing to discuss the possibility of merging departments. Council Member Quinn asked if this means that the Commissioners have no objection to the City Council passing a concurrent resolution to begin the study of functional consolidation during the consolidation process, which means there is no need for the third paragraph. Council Member Conlon requested the third paragraph to be amended as suggested by Mayor Peterson, which reads as follows: The County Commissioners and City Council shall proceed with discussing functional consolidation of individual departments. Mayor Pro-Tem Moore agreed with Council Member Conlon and stated if both governing bodies approve the amendment, another resolution will not be necessary. Vice-Chairman Greer advised that he would not vote on the proposed amendment because he believes if the language is changed, the plan will never be presented to the voters. Council Member Quinn asked Vice-Chairman Greer if he was opposed to immediately starting discussion on functional consolidation. Vice-Chairman Greer responded that if a Consolidation Study Commission is appointed to draw up a plan for consolidation, all of these issues will be studied. A plan has to be presented to the voters. If the plan is rejected, the information in the plan will assist both governing bodies in moving forward with functional consolidation. Council Member Conlon expressed concern for not moving forward now with functional consolidation by addressing redundant functions, which will respond to the popular demand from the public to develop efficiency and eliminate redundancy from both governing bodies. Council Member Thompson stated that the motion on the floor will take the plan to the voters for total consolidation with no guarantee that the plan will pass. If the consolidation effort should not pass, the City Council does not want to wait until 2005 to look at functional consolidation. He asked what was wrong with approving a resolution to get the people appointed to serve on a committee and also begin functional consolidation of various departments. If consolidation passes and some functional mergers have occurred, everybody will be ahead of the game. If consolidation fails and some mergers have occurred, everybody will still be ahead of the game. Amended Motion: Council Member Thompson stated that only one resolution was needed and he moved to amend his motion as follows: Adopt the first three paragraphs of the letter received from the Board of County Commissioners on NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 469 JANUARY 13, 2003 January 6, 2003 with the amendment in the first paragraph to say, after ratification by each elected Board and Council, and amend the third paragraph to say: The County Commissioners and City Council shall proceed with discussing further functional consolidation of individual departments. Commissioner Caster expressed concern for the tremendous amount of work that will be placed on Staff when appointing a Consolidation Study Commission and a committee to study functional consolidation at the same time. Mayor Pro-Tem Moore noted that Commissioner Caster had made an excellent point and stated that the people on the Consolidation Study Commission will not be experts in the day-to-day operations of the City or County. These members will need the expertise of Staff on both committees. Mayor Peterson called for a VOTE ON THE AMENDED MOTION by Council Member Thompson. Upon vote, the MOTION CARRIED 6 to 0. Chairman Davis called for a motion. Commissioner Pritchett informed Chairman Davis that a motion was already on the floor that had not been withdrawn. Commissioner Boseman withdrew her motion, and Commissioner Caster withdrew his second to the motion. Commissioner Pritchett requested Chairman Davis to clearly state his proposed motion as outlined in the three paragraphs. Motion: Chairman Davis MOVED, SECONDED by Commissioner Caster, for the County to work with the City of Wilmington pursuant to their concurrent resolution in order to select a Consolidation Study Commission pursuant to N.C.G.S. 153A-401 to prepare a plan for consolidating all functions and services of the City and County that will be voted on subsequently by the citizens in the November 2004 general election after ratification by each elected Board and Council. If the voters approve the plan for total consolidation, the approved plan will be submitted to the General Assembly so that the consolidation may become effective by enacting the plan into law. The County Commissioners and the City Council shall proceed with discussing functional consolidation of individual departments. Upon vote, the MOTION CARRIED UNANIMOUSLY. Council Member Conlon stated that he hoped the motion was saying that both governing bodies will proceed with discussion of functional consolidation of individual departments, because if the merging process begins with a tough department like water and sewer and reaches an impasse, the governing bodies should continue to select other departments that can be merged. He urged the Board to move forward with merging some departments. Motion: Chairman Davis MOVED, SECONDED by Commissioner Caster, to establish a committee comprised of two (2) Council Members and two (2) County Commissioners to develop a plan to unite all City and County water and sewer services as authorized by the North Carolina General Statutes; appoint Vice-Chairman Greer, Chairman of the New Hanover County Water and Sewer District Board, and Commissioner Pritchett, Vice-Chairman of the New Hanover County Water and Sewer District Board, to serve as representatives for the County on the committee; request the City Council to appoint two (2) members to serve on the committee; and request the committee to provide a preliminary report to both governing bodies within three months after adoption of this resolution. Upon vote, the MOTION CARRIED UNANIMOUSLY. Motion: After commenting on Council Member Hughes not being present, Mayor Peterson MOVED to request the Appointments Committee to recommend two (2) Council Members to serve on a functional consolidation committee with two (2) County Commissioners to consolidate water and sewer services. Mayor Pro-Tem Moore SECONDED the motion. Substitute Motion: Council Member Conlon MOVED to appoint Council Member Jason Thompson and Council Member Laura Padgett to serve on a committee with Vice-Chairman Greer and Commissioner Nancy Pritchett for the purpose of developing a plan to unite all City and County water and sewer services with a preliminary report to be presented to both governing bodies within 90 days. The substitute motion was SECONDED by Mayor Pro-Tem Moore. Mayor Peterson requested Council Member Conlon to postpone the appointments until the next meeting so Council Member Hughes could be present. He stated that he could not vote for the substitute motion. Council Member Conlon advised that he regretted Council Member Hughes was not present; however, the County and citizens want both governing bodies to move forward. He requested the Mayor to call for a vote on the substitute motion. Mayor Pro-Tem Moore WITHDREW HER SECOND based on the fact that the Chairman of the Board had the option to make the appointments, and it would only be fair to allow the same option to the Mayor. Council Member Quinn stated that he would SECOND THE MOTION since Mayor Pro-Tem Moore had withdrawn her second. Mayor Peterson called for a vote on the substitute motion by Council Member Conlon to appoint Council Member Thompson and Council Member Padgett to represent the City Council on the water and sewer consolidation effort with a preliminary report being presented to both governing bodies within 90 days. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 SPECIAL MEETING HELD WITH WILMINGTON CITY COUNCIL PAGE 470 JANUARY 13, 2003 Upon vote, the MOTION CARRIED 5 to 1. Mayor Peterson voted in opposition. Commissioner Pritchett requested that both governing bodies appoint Vice-Chairman Greer as the interim Chairman for the purpose of convening the first meeting of the committee. Once this meeting is called, the committee can decide on the chairperson. Motion: Council Member Padgett MOVED for the City Council to accept Vice-Chairman Greer as the interim Chairman for the purpose of convening the committee. The motion was seconded by Council Member Conlon. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Davis called for a motion to appoint Vice-Chairman Greer as the interim Chairman. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to appoint Vice-Chairman Greer as the interim Chairman for the purpose of convening the committee. Upon vote, the MOTION CARRIED UNANIMOUSLY. In concluding the meeting, Mayor Peterson expressed appreciation to Chairman Davis and members of the Board and Staff for the progress made at the meeting. He noted that this was a historic moment and stated that both governing bodies should make the most of this opportunity. Chairman Davis expressed appreciation to each member of the City Council for sitting down and discussing this important issue. There being no further business, Chairman Davis and Mayor Peterson adjourned their respective boards at 7:30 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board