Loading...
HomeMy WebLinkAbout2002-09-03 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 312 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Tuesday, September 3, 2002, at 5:30 P.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 Pastor Rod West, of Seagate Baptist Church, gave the invocation. Commissioner Caster 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. Commissioner Caster referenced the minutes of May 6, 2002, where he removed Consent Agenda Item 7 and stated for the Board’s information this item was discussed on Page 3. Clerk to the Board, Lucie F. Harrell, offered to better clarify the heading for discussion of Consent Agenda Item 7 on Page 3. After hearing no further comments, Chairman Davis called for a motion to approve the items on the Consent Agenda. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Greer, to approve the Consent Agenda with the clarification in the May 6, 2002 minutes as requested by Commissioner Caster. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the following sets of minutes: Regular Meeting May 6, 2002 Regular Meeting May 20, 2002 Regular MeetingAugust 5, 2002 Approval of Contract #03-0054 with Globe Communications, Inc. for Fiber Installation at the New Hanover County Administrative Annex Located at Market Place Drive The Commissioners approved Contract #03-0054 with Globe Communications, Inc., in the amount of $129,899 to install fiber connection in the New Hanover County Administrative Annex to connect the offices to the County’s network infrastructure. The County Manager was authorized to execute the necessary contract documents. A copy of the contract is on file in the Legal Department. Authorization for the Sheriff’s Department to Submit a Grant Application to the Governor’s Highway Safety Program The Commissioners approved a request from the Sheriff’s Department to submit a Governor’s Highway Safety Program grant in the amount of $13,250.00 to be used to purchase Checkpoint equipment. The grant may require a 25% match of $3,312.50, which will be paid from funds available in the Federal Forfeited Property fund. If the grant is awarded, the County Manager is authorized to accept the grant. Approval of Budget Amendment #2003-05-Library Renovation Capital Project The Commissioners approved the following Budget Amendment: Budget Amendment #2003-05-Library Renovation Capital Project AdjustmentDebitCredit Contributions$23,561 PRAXAIR Grant$35,000 Extended Project Expense$58,561 Explanation: To budget the PRAXAIR grant awarded to the Library as approved by the Commissioners on March 11, 2002. Grant funds will be used to equip a computer lab at the main library. This budget amendment also increases the budget for contributions received that will be used for equipment purchases for the Library renovation project. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 313 Approval of Budget Amendment #03-0029 Human Service Transportation The Commissioners approved the following Budget Amendment: AdjustmentDebitCredit Fees$20,905 Salaries$16,840 FICA $ 1,285 Retirement$ 660 Medical Insurance$ 2,080 Disability Insurance$ 40 Explanation: To budget collections from fees collected over a period of time. Funds will be used to cover part of the salary increase for the Transportation Program Manager. CONSIDERATION OF PROCLAMATION DECLARING SEPTEMBER 2002 AS PROSTATE CANCER AWARENESS MONTH IN NEW HANOVER COUNTY Chairman Davis recognized Mr. William Fitzpatrick and announced that he would like to make a few remarks. Mr. Fitzpatrick, a member of the Wilmington Branch of the Prostate Cancer Coalition of North Carolina, reported that the group’s objective is to cut prostate cancer deaths in North Carolina by 50% in five (5) years. North Carolina has the fifth highest prostate cancer death rate in the nation and the African American community has the highest death rate in the world. He emphasized the importance of early detection and stated that declaring the month of September 2002 as Prostrate Cancer Awareness Month in New Hanover County is the first step toward creating an awareness of the disease and encouraging men to be screened so the deaths can be drastically reduced. He urged all citizens to become involved in this objective. Chairman Daviscalled for a motion to adopt the proclamation. Motion: Commissioner Pritchett MOVED, SECONDED by Vice-Chairman Greer, to adopt a proclamation declaring September 2002 as Prostate Cancer Awareness Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. On behalf of the Board, Chairman Davis presented the proclamation to Mr. Fitzpatrick and expressed appreciation to the group for leading an awareness campaign to reduce the number of deaths from this disease. A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVII, Page 25.1. CONSIDERATION OF NEW EMERGENCY OPERATIONS PLAN FOR NEW HANOVER COUNTY Director of Emergency Management, Dan Summers, reported that the New Hanover County Department of Emergency Management has prepared a new Emergency Operations Plan for the community. The new plan has been substantially re-written to more closely follow guidelines established by the Federal Emergency Management Agency (FEMA). The plan includes general response actions to be supported by all of the municipalities, references to emergency ordinances including preliminary actions to be taken in the event of a terrorist act. This document will be presented to all the municipalities and key response agencies for signature following endorsement by the New Hanover County Board of Commissioners. Hurricane operations are not included in this document. A new hurricane plan is under development and should be released by July 2003. Director Summers concluded his report by introducing Ms. Carol Field, Assistant to the Director of Emergency Management, and stated that she had assisted him with preparing the report. Commissioner Pritchett spoke on spending a great deal of time reading the plan and complimented Director Summers for preparing an excellent document. Chairman Davis asked for a motion to accept the plan as required by the Emergency Management Ordinance. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to accept the Emergency Operations Plan for New Hanover County and authorize the Chairman to sign the letter of endorsement for the plan. Upon vote the MOTION CARRIED UNANIMOUSLY. On behalf of the Board, Chairman Davis expressed appreciation to Director Summers for the excellent quality of services provided by the Emergency Management Department to the citizens of New Hanover County. A copy of the plan is on file in the Emergency Management Department. MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER AND SEWER DISTRICT Chairman Davis convened from Regular Session at 5:50 P.M. to hold a meeting of the Water and Sewer District. Chairman Davis reconvened to Regular Session at 6:01 P.M. ADDITIONAL ITEMS NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 314 Discussion of New Hanover County Becoming a Partner in the Sister City Commission Commissioner Pritchett advised that after discussing the possibility of the County becoming a partner with the City in the Sister City Commission, the group was pleased and requested that members currently appointed be allowed to complete their terms. She requested the Commissioners to authorize her to write a letter to the Wilmington City Council requesting approval of the County becoming a partner in the Sister City Commission. Consensus: After discussion, it was the consensus of the Board to authorize Commissioner Pritchett to write a letter to the Wilmington City Council requesting that New Hanover County become a partner in the Sister City Commission. Announcement of “Litter Sweep” to be Held on September 14-29, 2002 Commissioner Pritchettannounced that she has been working with Public Information Officer Mark Boyer to hold a community-wide Litter Sweep on September 14-29, 2002, to coincide with the NCDOT Litter Sweep for the Adopt A Highway Program. She advised that more details would be forwarded to the Board before the event. Discussion of Medical Care for Prisoners Commissioner Caster referenced an article that he forwarded to the Board entitled Criminal Care at a High Cost. He requested each Commissioner to read the article and stated with inmates becoming more ill while incarcerated, the cost of medical care has significantly increased. This is an issue that will have to be addressed across the country. Discussion of Water Conservation Efforts Commissioner Boseman spoke on the possibility of the Governor imposing mandatory restrictions on water usage and asked if Staff had any plans to participate in this effort. County Manager O’Neal responded that no plans have been made to require a mandatory restriction on the usage of water; however, citizens are urged to voluntarily conserve water since the water table is down. Commissioner Boseman noted that water will be an issue for the future and asked if any steps can be taken now to meet this challenge. Assistant County Manager Dave Weaver responded that Staff will present a more detailed design of a water membrane filter treatment plant within the next two months. This type of plant can be used to treat fresh water or can be converted to treat brackish water if the fresh water supply should become inadequate. Commissioner Pritchett asked if the Health Department has been requested to move forward with filling in the gaps between City and County Emergency ordinances. Assistant County Manager Patricia A. Melvin advised that the Health Director has been contacted about the need to assist with developing a plan for a water emergency. The Environmental Health Division has been requested to prepare a plan and recommendation to be presented to the Board of Health and then forwarded to the Board of County Commissioners for final approval. Request by Commissioner Julia Boseman to be Appointed to Fill the Unexpired Term on the Airport Authority Commissioner Boseman spoke on her passion for the promotion of tourism and requested the Board to appoint her to fill the unexpired term on the Airport Authority. Chairman Davis asked County Attorney Copley if a County Commissioner could be appointed to serve on the Airport Authority since the Authority is an autonomous body created by the N. C. General Assembly. County Attorney Copley responded that the Board appoints all members to serve on the Airport Authority; therefore, a Commissioner or any other person can be considered for appointment. Chairman Davis stated, for the record, Commissioner Boseman has officially applied to fill the unexpired term on the Airport Authority. PUBLIC HEARING TO CONSIDER A REQUEST BY MICHIAL RHODES FOR A SPECIAL USE PERMIT TO LOCATE A SINGLE WIDE MOBILE HOME IN AN R-20 ZONING DISTRICT LOCATED AT 200 CHAIR ROAD NEAR THE NORTHEAST CAPE FEAR RIVER (S-486, 09/02) Chairman Davis opened the Public Hearing and announced that the special use permit process requires a quasi- judicial hearing; therefore, any persons wishing to speak must be sworn in by the Clerk to the Board. The following persons were sworn in: Dexter Hayes Michial Rhodes Chairman Davis announced that 10 minutes would be allowed for the Planning Staff to make a recommendation, 10 minutes for the applicant to present the request, and 10 minutes for persons in favor or opposed to the request to present testimony. Planning Director Hayes presented slides of the property and surrounding areas bordering the site. The applicant has requested a Special Use Permit to locate a single-wide mobile home at 200 Chair Road near the Cape Fear River in an R-20 Zoning District. Currently, there is one existing mobile home on the property. Planning Director Hayes presented the following preliminary Staff findings: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 315 1. The Board must find that the use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved based upon the following findings: A.The subject property is located within the Wrightsboro Volunteer Fire Department. B.The site will be served by a private well and septic system. C.Access to the property is from Chair Road which will be extended with construction of the Highway 17 By-Pass. 2. The Board must find that the use meets all required conditions and specifications of the Zoning Ordinance based upon the following findings: A.The site is located in an R-20 Residential Zoning District. Minimum setbacks for structures can be met. B.The mobile home will be located on a large farm parcel which has frontage on the Northeast Cape Fear River. C.One other single family home exists on the property. 3. The Board must find that the use will not substantially injure the value of adjoining or abutting property or that the use is a public necessity based upon the following findings: A. No evidence has been presented that the proposed use will injure the value of adjoining or abutting property values. B. Currently there are no neighbors visible from the proposed mobile home site. 4. The Board must find that the location and character of the use if developed according to the plan as submitted and approved will be in harmony with the area in which it is to be located and in general conformity with the plan of development of New Hanover County based upon the following findings: A. The site is classified as Resource Protection by the New Hanover County Comprehensive Land Use Plan. The purpose of the Resource Protection class is to provide for the preservation and protection of important natural, historic, scenic, wildlife and recreational resources. B. Several other mobile homes are located east of the by-pass on similar properties. Chairman Davis asked if the use was consistent with the Land Use Plan. Planning Director Hayes responded that the use would be consistent with the Land Use Plan in a rural setting. Chairman Davis asked if the applicant would like to speak. Mr. Michial Rhodes advised that his daughter was recently married and he was requesting a permit to place a mobile home on the property so the couple can live on the site. Chairman Davis asked Mr. Rhodes if he agreed with the findings of fact as presented by the Planning Director. Mr. Rhodes concurred with the findings as presented. Chairman Davis asked if any other person sworn in by the Clerk to the Board would like to testify in favor of granting the Special Use Permit. No comments were received. Chairman Davis asked if any person sworn in by the Clerk to the Board would like to testify in opposition to granting the Special Use Permit. No comments were received. Chairman Davis closed the Public Hearing asked if any member of the Board would like to comment. Hearing no remarks, Chairman Davis called for a motion. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to approve the request by Michial Rhodes to locate a single-wide mobile home in an R-20 Residential Zoning District located at 200 Chair Road near the Northeast Cape Fear River based upon the evidence and findings of fact concluding that the use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved; the use meets all required conditions and specifications of the Zoning Ordinance; the use will not substantially injure the value of adjoining property or abutting property, or that the use is a public necessity; and the location and character of the use if developed according to the plan as submitted and approved will be in harmony with the area in which it is to be located and in general conformity with the plan of development for New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 316 A copy of the Special Use Permit is hereby incorporated as a part of the minutes and is contained in SUP Book III, Page 16. PUBLIC HEARING TO CONSIDER A REQUEST BY HENRY CONNER TO CLOSE THE REMAINING PORTION OF NASSAU ROAD LOCATED IN THE SEDGEFIELD SUBDIVISION NEAR THE 2000 BLOCK OF CASTLE HAYNE ROAD (SC-78, 07/02) Chairman Davis opened the Public Hearing and stated that the Resolution of Intent to Close Nassau Road was adopted by the Board of County Commissioners on August 5, 2002, in accordance with N.C.G.S. 153-A - 241. He requested Planning Director Dexter Hayes to present the petition. Planning Director Hayes presented a map depicting the segment of road to be closed, and reported that two (2) segments of Nassau Road had already been closed by the Board of County Commissioners. In January, 1985, the Board closed a 400 foot segment of Nassau Road located between Bermuda Drive and Jamaica Drive. No utility or drainage easements were retained by the County at the time of closure. In July, 1995, the Board closed a 200 foot segment of the road located adjacent and north of Jamaica Drive. The petitioner has now made a request to close the last segment of the road. The Planning Staff is opposed to the road closing because this is the last connecting north/south connectivity in the subdivision. Chairman Davis asked if the petitioner would like to speak. Mr. Henry W. Conner, the petitioner, presented pictures of the site and stated that the road is passable; however, the road itself is covered with overhanging trees. In December 1984, Ms. Trask thought she had turned over both Fairfield and Nassau roads to the NCDOT, but only Fairfield Drive was actually taken over by the NCDOT. This segment of the road has not received any form of maintenance for the past 25 years. The road is full of potholes and broken pavement and should not be used by vehicles. He requested the Board to close the road as requested. Commissioner Caster asked who paved the segment of the road. Mr. Conner responded that Ms. Trask paved the road. Chairman Davis asked if anyone from the audience would like to speak in favor of closing the road. Ms. Amanda Robinson stated that after living in the area for 25 years, she had never seen Nassau Road used; therefore, she felt the road should be closed. Mr. Michial Rhodes, Chief of the Wrightsboro Volunteer Fire Department, advised that the road is located in a wet area and is almost impassable due to potholes and broken pavement. The road is a hazard to fire trucks and other emergency vehicles responding to calls in its present condition. He suggested closing the road if it cannot be improved. Commissioner Pritchett requested the Planning Director to explain the procedure to get the road properly improved. Planning Director Hayes responded that an individual or developer will have to improve the road. Once water and sewer becomes available to the area, development will occur and the road will be improved for access. In retrospect, Staff regrets that two segments of the road were closed because of connectivity needs. Commissioner Caster asked if Bermuda Road serves as a connecting road to both ends. Planning Director Hayes advised that Bermuda Road does serve as an east/west access. Motion: Commissioner Caster MOVED to approve the road closing as petitioned. The MOTION DID NOT RECEIVE A SECOND AND FAILED. Motion: Commissioner Pritchett MOVED, SECONDED by Vice-Chairman Greer, to deny the petition to close this segment of Nassau Road based on the need to maintain an alternative access for residents living on Bermuda Drive and Fairfield Drive located in the Sedgefield Subdivision near the 200 block of Castle Hayne Road. Upon vote the MOTION CARRIED 4 to 1. Commissioner Caster voted in opposition. Commissioner Pritchett requested Planning Director Hayes to work with Chief Rhodes to see if the road can be graveled to allow fire trucks to use the road. NON-AGENDA ITEMS Chairman Davis announced that time had been reserved to allow anyone from the audience to present an item that was not on the Regular Agenda. He requested all persons speaking to limit their remarks to three minutes. The following items were presented: Announcement of New Hanover County Fire Services Day to be Held on September 14, 2002 Mr. Michial Rhodes, Chief of the Wrightsboro Volunteer Fire Department, announced that during the past six months, the Fire Commission has been planning a New Hanover County Fire Services Day. This event will be held on Saturday, September 14, 2002, from 10:00 A.M. until 4:00 P.M. at the Airport on the site where the circus was previously held. The New Hanover County Fire Services, Volunteer Fire Departments, Emergency Management Department, Sheriff’s Department, and New Hanover Regional Medical Center EMS have participated in planning the event to showcase the equipment and fire services provided in the unincorporated county. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 317 The County Commissioners and public are invited to attend this event. Vendors will be present, the Air Link helicopter from the Medical Center will be on the site, and the N. C. Forestry Service will have large pieces of equipment on display. Citizens will have an opportunity to learn how their fire taxes are being spent and used to provide quality fire services. There will be something for everyone to enjoy. Entertainment will be provided by the Carolina Firemen singing group and Smokey the Bear and Sparky the Fire Dog will be present. Chief Rhodes concluded his remarks by complimenting Fire Services Administrator, Donnie Hall, for his assistance in planning the event and stated that New Hanover County is fortunate to have Mr. Hall as the Fire Services Administrator. Commissioner Pritchett advised that she had a copy of the agenda for that day which stated from 1:00 p.m. until 4:00 p.m. child safety seat checks will be available, and from 10:00 a.m. to 4:00 p.m. fire extinguisher checks will be made free of charge. She encouraged the Commissioners and public to attend this special event Presentation on Illegal Immigrants Mr. Donald Sullivan advised that he had appeared before the Board of County Commissioners on May 6, 2002, regarding the need to heighten the awareness of illegal immigration. At that time, he requested the Board to place this item on a future agenda for public discussion. This item has not been placed on the agenda, and no response has been received to his letters written to the Board. Chairman Davis informed Mr. Sullivan that he had responded to him through a letter stating the position of the Board of County Commissioners on his request. Mr. Sullivan distributed an information packet of data collected over the past three weeks regarding illegal immigration and stated that a Hispanic Summit was held at the UNCW for the purpose of issuing Mexican ID cards, Tax ID numbers, and N. C. applications for Mexicans to apply for a driver’s license with an eye toward voter registration since Mr. Barnes, Mr. Carriker and one candidate for the Sheriff were campaigning at the summit. After visiting the N. C. Department of Motor Vehicles office in Wilmington, it was found that the only document required when an immigrant applies for a driver’s license is a Tax ID number or a Social Security number. By law, the License Examiner cannot ask to see a birth certificate, drivers education training certificate, or proof of automobile insurance. The License Examiner is then required to ask if the applicant is registered to vote, or if he or she would like to update voter registration information. If that person can say “yes” or “si”, the examiner must ask the applicant if he is a citizen. No questions regarding the birthplace or citizenship can be asked. If the applicant answers yes or si, the examiner registers that person to vote. This same person by law can obtain quality medical services from New Hanover Regional Medical Center, the Health Department, Social Services Department, and New Hanover County Schools free of charge. In closing, Mr. Sullivan stated that public service agencies and hospitals should be directed to determine who is an illegal immigrant, provide the needed services, and then turn that person over to the U. S. Immigration Naturalization Service (INS). New Hanover County should be declared an “Illegal Immigrant Free Zone” and persons who are illegal immigrants should be arrested and turned over to the INS. He stated that once his research is completed he will file a class action suit against the County if the Commissioners refuse to discuss this issue in a public forum. ADDITIONAL ITEMS Announcement from the Governor’s Office Regarding Funding for Schools County Manager O’Neal advised that through an Executive Order, Governor Easley has just released $29 million statewide to school systems across the State to accommodate growth. At this time, Superintendent Morris does not know the amount of money to be allocated to New Hanover County, but he is pleased to hear that funding has been released. Discussion of New Hanover County Joining the Cabarrus County Lawsuit to Seek Payment of State Reimbursements to Local Governments Chairman Davis advised that the Board has received a request from Cabarrus County to join in a lawsuit against the Governor and the State of North Carolina for withholding State reimbursements to local governments. The lawsuit has not been filed, but other counties are being requested to become partners. The N. C. Association of County Commissioners and N. C. League of Municipalities do not advise litigation at this point. Both organizations feel that more time is needed to work with the Governor and General Assembly to resolve the revenue problem. County Manager O’Neal advised that the N. C. League of Municipalities and N. C. Association of County Commissioners have been working closely with the Governor and both bodies of the General Assembly to resolve differences between the House and Senate versions of separate revenue and budget bills. Both organizations are requesting local governments to contact local legislative delegations to push for a full or major portion of State reimbursements, or allow local governments to impose a local option sales tax to replace revenue promised by the State. Commissioner Caster expressed concern for the Governor withholding State reimbursements and stated this action has created severe funding shortfalls for counties and cities throughout North Carolina. With numerous calls and letters written to the Governor and legislators, it appears that New Hanover County will have to enter into the Carbarrus County lawsuit to resolve this issue. Local governments should receive the money promised and the Governor and General Assembly should resolve the State revenue crisis without placing this burden on the local taxpayers. A lengthy discussion followed on the County becoming a party in the Carbarrus County lawsuit. County Attorney Copley explained that since this is not a class action law suit, New Hanover County will have to be a named plaintiff in the Carbarrus County lawsuit to recover any revenue. If New Hanover County does not join in the lawsuit, the County can file a lawsuit at a later date based upon a favorable decision rendered by the Court. Commissioner Boseman spoke on the Boyce & Isley law firm working on a contingency basis and noted that NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 318 the only cost to the County will be $1,000; however, if a lawsuit is filed by the County at a later date, the cost will be appreciably increased. Chairman Davis requested direction from the Board. Commissioner Pritchett spoke on giving this issue a great deal of thought and stated that she worried about future repercussions that could occur to participating counties if the Court rules in favor of the Governor and State. In discussion of whether other counties had joined the lawsuit, County Attorney Copley advised that she would contact the law firm of Boyce & Isley to see if any other county had become a named plaintiff in the lawsuit. Vice-Chairman Greer spoke on the constant change of members in both chambers of the General Assembly with elections being held every two years and stated that many legislators currently serving were not present when the General Assembly decided to remove the intangibles and inventory taxes with the State agreeing to reimburse local governments for the revenue shortfall. Unfortunately, the State reimbursements have been withheld for over a year and it appears nothing is being done to correct this situation other than placing the burden on the local taxpayers. He recommended allowing the County to be named as a plaintiff in the Carbarrus County lawsuit and stated that hopefully the Court will rule in favor of the local governments. Chairman Davis commented on not rushing into filing a lawsuit and suggested writing a letter to Governor Easley informing him that if State reimbursements are not received within a certain time frame, the County will have no other alternative but to become a named plaintiff in the Carbarrus County lawsuit. Commissioner Boseman spoke on having hope that the General Assembly will do the right thing and release reimbursements, which has not happened; therefore, she would be in favor of the County becoming a party of the Carbarrus County lawsuit. County Attorney Copley advised that if the Commissioners want New Hanover County to become a named plaintiff in the lawsuit, the Board should formally adopt the resolution prepared by the Boyce & Isley law firm at the September 16, 2002 Board meeting. Consensus: After further discussion, it was the consensus of the Board to authorize the Chairman to write a letter to Governor Easley requesting release of State reimbursements to New Hanover County before September 16, 2002, or the Commissioners will have no other alternative but to adopt a resolution to become a named plaintiff in the Carbarrus th County lawsuit at its regular meeting scheduled on the 16 of September. DISCUSSION OF ADDITIONAL 3% ROOM OCCUPANCY TAX (ROT) Chairman Davis reported at the May 20, 2002 meeting, a brief discussion was held by the Board on the need to consider supporting the bills introduced by N. C. House Representative Danny McComas and N. C. House Representative Thomas Wright regarding an additional 3% Room Occupancy Tax (ROT) for the City of Wilmington and beach municipalities. He welcomed Mayor Ray Rothrock from Carolina Beach, Mayor Betty Medlin from Kure Beach, and Mayor Avery Roberts from Wrightsville Beach and expressed appreciation to them for attending the meeting to discuss the two bills introduced to increase the ROT. County Manager O’Neal requested Budget Director Cam Griffin to make a brief presentation on the proposed legislation to provide a better understanding of the two bills. Budget Director Griffin reported that both bills will allow the current 3% ROT to remain in place with 60% of the proceeds to be used for beach nourishment (or control of erosion) and 40% to be used to promote travel and tourism. She presented the following information on the two bills: House Bill 1707 , entitled the New Hanover Beach Towns Tourism Act, introduced by Representative McComas authorizes each of the towns of Carolina Beach, Kure Beach, and Wrightsville Beach to levy a 3% ROT. Proceeds will be remitted quarterly to the Tourism Development Authority (TDA). The TDA must use 50% of the proceeds to promote travel and tourism and 50% for tourism-related expenditures. The TDA will be comprised of 13 voting members consisting of 5 ex-officio members and 8 additional members appointed by the Board of County Commissioners as follows: 5 owners and operators of lodgings (hotels, bed & breakfast, and rental properties) 2 members actively involved in promoting tourism in the County 1 owner/operator of a restaurant House Bill 1720 , entitled New Hanover Occupancy Tax Changes, introduced by Representative Wright authorizes New Hanover County to increase its ROT from 3% to 6%. If the County does not levy the additional 3% tax, the City of Wilmington and beach municipalities are authorized to levy a 3% ROT. If the County decides at a later date to authorize the tax, the County tax would replace the municipality tax. The additional tax would be allocated for the following purposes: 1) construction, financing, operating, promotion, and maintenance of a convention center; 2) purposes as designated by the local act of the General Assembly; and 3) promotion of travel and tourism. This bill does not require the establishment of a TDA. However, under the current wording of the bill, the only way a portion of funds from the additional 3% ROT can be used for a convention center is if a TDA is in place. The proceeds derived from the accommodations in the beach municipalities are to be used as directed by a local act of the General Assembly. Currently, there is no local act directing the use of these funds. Until a local act is passed, the funds can not be used. In closing the presentation, Budget Director Griffin presented a statement showing the percentage breakdown of the ROT in FY 2001 to provide a rough estimate of the amount of revenue that would be generated by the proposed NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 319 3% ROT: Estimated Receipts Wilmington48% $1,294,595 Carolina Beach13% $ 350,620 Kure Beach 8% $ 215,766 Wrightsville Beach29% $ 782,151 Unincorporated County 2% $ 53,941 $2,697,073 Chairman Davis expressed concern for the resolution received from the City of Wilmington (which was introduced as House Bill 1720 by Representative Wright) not referring to any type of Tourist Development Authority (TDA) or any specific use of the revenue generated from the additional 3% ROT. The resolution simply states that the City can use the revenue as it deems fit. On the other hand, House Bill 1707 introduced by Representative McComas for the three beach municipalities does refer to the creation of a TDA and sets out how the revenue generated from the 3% ROT will be gathered and used. This resolution does not include the City of Wilmington. Since it appears that the two bills introduced are going in different directions, it would only be logical for the Board of County Commissioners to endorse one bill that meets the needs of all four municipalities. Chairman Davis asked if any member of the Board would like to comment on his opening statement. Commissioner Pritchett responded that she felt the two bills should become one bill and stated that she understood Representative Wright offered to withdraw his bill if the Commissioners prefer to support the bill introduced by Representative McComas. She expressed grave concern for considering two separate bills with different requirements and functions. Commissioner Boseman asked if sufficient money was appropriated in Representative Wright’s bill for the County to manage the TDA account. Budget Director Griffin responded that funding has been appropriated to assist the County in collecting and distributing the tax, but depending on the collection arrangement outlined in the enabling legislation, the County could lose money. The County would receive approximately $55,000 and the County Finance Officer will serve as the Finance Director for the TDA. Discussion followed on whether the convention center would have to be started within a certain time frame. Budget Director Griffin read the following section from HB 1720: (1) If, within three years after the levy of the additional three percent ROT, the City of Wilmington has demonstrated to the satisfaction of the TDA that all financing and development arrangements for a convention center have been completed, the County must remit the funds to the City of Wilmington to be used for the construction, financing, operation, promotion and maintenance of the convention center. If these conditions have not been met, the County must remit the funds to the TDA to be used to promote travel and tourism. (2) If the conditions in (1) have been met but within four years after the first levy of the additional three percent ROT, and construction has not begun on a convention center, the City must return any funds it received that have not been committed. These proceeds shall then be used to promote travel and tourism. Commissioner Caster spoke on the fact that convention centers are not known to be money producers and requested answers to following questions: 1. Will enough revenue be generated from the ROT for the City to have sufficient funds to begin construction of the convention center within the allotted time frame? 2. Will enough revenue be generated from the ROT to allow the City to finance, operate, promote and maintain a convention center? Chairman Davis agreed with the statements made by Commissioner Caster and asked who will be responsible for operating, promoting, and maintaining a convention center if proceeds from the ROT are not sufficient to fund the facility after construction and in the future. He emphasized the importance of addressing issues of this type before supporting the bills. Vice-Chairman Greer spoke on proceeds received from the current ROT that are used by the Convention and Visitors Bureau (CVB) to promote tourism for the entire area and provide beach nourishment projects. It would be unfortunate for each municipality to try to establish a separate Tourism Development Authority (TDA) to promote tourism within its own area. The existing CVB is working well and there is no reason to reinvent the wheel. He requested the City and beach communities to sit down and decide on each municipality’s needs so an additional ROT can be implemented without changing the current system in place. Everyone understands the need by the beach communities to receive additional revenue to handle tourist related expenditures, but one bill should be prepared to satisfy the City and beach municipalities. Chairman Davis asked if the Mayor Rothrock would like to comment. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 320 Mayor Rothrock, representing the Carolina Beach Town Council and its citizens, advised that after discussion with members of the House Finance Subcommittee, it is felt that all needs can be combined into one bill. There has been a lack of communication among all parties, and Representative McComas and Representative Wright are ready to work through this issue. The Carolina Beach Town Council is not interested in reinventing the wheel or interfering with the existing 3% ROT. When Representative McComas first introduced HB 1707, the distribution of proceeds was for two- thirds to go to travel and tourism and one-third to each beach municipality; however, this has been changed to a 50\50 split. The Town Council of Carolina Beach would like for the distribution to be changed to a 40\60 split with 40 percent to promote travel and tourism and 60 percent for tourism related expenses, such as lifeguards which cost the Town of Carolina Beach more than $200,000 per year. Mayor Rothrock also explained that after the Cape Fear Coast Convention and Visitors Bureau was formed in 1985, a new name was assigned by the State to call these organizations a Tourism Development Authority (TDA). The beach municipalities, City of Wilmington, and local legislators feel that the membership of the TDA should be comprised differently from the existing CVB. The membership will be comprised of one elected official from each municipality and one elected official from New Hanover County with all remaining members representing the motel/hotel business. Representatives McComas and Wright are currently working on the bills. This is an opportune time for the Board of County Commissioners, Wilmington City Council, Wrightsville Beach Board of Aldermen, Carolina Beach Town Council, and Kure Beach Town Council to identify the needs and forward this information to Representatives McComas and Wright so one or two bills can be prepared to address the needs. If the Board of County Commissioners would support an additional 3% ROT in New Hanover County and allow the County’s $53,000 received from the proceeds to be used for the relocation and/or operation of the TDA (which is now the CVB), it is felt that Representative McComas and Representative Wright will add this amendment to the bills. The existing CVB has done a good job, and this would be an appropriate use of the money collected in the unincorporated area. Mayor Rothrock also suggested extending the time frame for construction of a convention center by the City of Wilmington from three years to five years to provide ample time for the City to raise the necessary revenue. In closing, Mayor Rothrock noted that Councilman Frank Conlon could not attend the meeting but requested that he inform the Board about the events that occurred when appearing before the House Finance Subcommittee. At the meeting, Mayor Avery Roberts, representing the beach municipalities, spoke in support of HB 1720 introduced by Representative Wright, and Mayor Peterson, representing the Wilmington City Council, spoke in support of HB 1707 introduced by Representative McComas for the beach municipalities. This action indicates that the time has come for the County and municipalities to join forces and support one or both bills to generate additional revenue to support tourist related expenditures. Commissioner Boseman expressed concern for the definition of tourism related expenses not being well defined in the bill introduced by Representative McComas for the beach communities. She spoke on the problem that occurred at Topsail Beach where some of the tourism related proceeds were used to pay the salary of the town manager and stated that a clear definition of these permitted expenses must be included in the bill. She also advised that communication was a major problem but stated that Representative McComas had been excellent about keeping her informed through faxes and email. She advised that contact was made with Representative Wright and as of this date he had not responded. Chairman Davis advised that Representative McComas has called and provided information regarding the bills, but Representative Wright has not returned any calls or responded in any way. It appears that Mayor Peterson called a meeting with Representative Wright and the beach municipalities, but did not invite the County to attend. It is difficult for the Board of County Commissioners to support either of the bills without knowing the details of each bill. Mayor Rothrock assured Commissioner Boseman that none of the beach municipalities would use proceeds from the ROT for anything other than tourism related expenditures. If the three beach municipalities were authorized to use the money only to pay for lifeguards, this would be satisfactory. The representatives need to know identified needs that will satisfy all five local governments. Ms. Betty Medlin, Mayor of Kure Beach, advised that communication has been the key issue and stated that she hopes the Commissioners do not feel that Kure Beach intended for the County to be left out of the process. She advised that New Hanover County has worked cooperatively with the beach municipalities on several projects, and stated that the Town of Kure Beach is very grateful. Mayor Medlin spoke on HB 1707 introduced by Representative McComas and stated at the House Finance Subcommittee meeting an amendment was made to the bill to change the distribution of proceeds received from a 50/50 split to a 40/60 split. With the rate of tourism growing, the beach municipalities need additional revenue to pay for tourism related expenditures. The Town of Kure Beach is not interested in eliminating or reducing funding to the Convention and Visitors Bureau (CVB) because Ms. Judith Grizzel, President of the CVB, has done an excellent job in promoting the entire area. The beach communities would like to change the composition of the CVB to a more diverse group. In concluding her remarks, Mayor Medlin emphasized the importance of meeting the needs of the beach municipalities to provide the services needed to accommodate tourists visiting our local beaches from across the country and state. Commissioner Pritchett requested an explanation of the number of members to be appointed to the TDA since HB 1707 shows a total membership of 13 authorized appointments in one place, but reflects the appointment of 10 additional members instead of 8 members for a total membership of 15 as indicated on Page 6 of the bill under Section Sections (1) and 2(a). She also asked if the 5 ex-officio members representing the County, City, and beach municipalities were to be voting members. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 321 Mayor Rothrock noted that the ex-officio members will be voting members and explained that an effort is being made to prepare bills to satisfy the County and four municipalities. When referring to Page 6 in HB 1707, under Section (1) this statement should be changed to read that one elected official from each municipality and one elected official from the County will serve as the 5 ex-officio members. Under Section (2) (a), the wording should be changed to read that the appointment of an owner or manager of a hotel in each of the three beach towns, representing 3 members, plus the appointment of 7 members as outlined in Sections (b) through (h) will create 15 members. The membership will be revised to 15 members in the bill, and if agreeable with the Board of County Commissioners, the Finance Officer for New Hanover County will serve as the ex-officio finance officer of the TDA. Mayor Avery Roberts, representing the Wrightsville Beach Board of Aldermen, reported that the municipalities have been working on the additional 3% ROT for a long time and noted that the existing 3% ROT will remain in place with the Port, Waterway and Beach Commission still handling beach nourishment projects. In House Bill 1707, the beach municipalities have requested an additional 3% ROT with a 40/60 split, 40 percent for travel and tourism and 60 percent for tourism related expenses. The Town of Wrightsville Beach has spent over $200,000 for lifeguards, and last year $30,000 to $40,000 was spent on using deputies from the New Hanover County Sheriff’s Department to handle the mass of people at the beach. The water patrol provided by the Sheriff’s Department has been eliminated because of the budget shortfall being experienced by the County. With a continued increase in tourism related expenses, additional revenue is needed to provide needed services. He requested the Board to support HB 1707. Ms. Judith Grizzel, President of the Cape Fear Coast Convention and Visitors Bureau, reported that the Board of Directors of the Convention and Visitors Bureau(CVB), supports the concept of one single room occupancy tax; however, the CVB Board of Directors is asking for one bill to be agreed upon by the four municipalities and New Hanover County. The destination for an area’s tourism is not a specific site but the entire area. It would be a disaster to have different taxes applied to four municipalities within the County. There needs to one tax and the bill should be developed under the guidelines established by the House Finance Subcommittee. The bill introduced by Representative McComas does meet the guidelines. The CVB Board strongly supports one promotion and marketing organization for New Hanover County, whether this group continues to be a CVB or a TDA. A reasonable amount of funding is needed to promote travel and tourism, and a reasonable amount of funding is needed to support capital improvement projects and services in the beach municipalities. The CVB Board will support the guidelines accepted by the House Finance Subcommittee on percentages established to promote tourism-related expenses, whether a 50/50 split or a 40/60 split. Ms. Grizzel closed by saying that the CVB is requesting the municipalities to agree on one 3% ROT bill to be enacted for the entire County as a whole. Chairman Davis asked if the CVB Board supports the City’s desire to use the funds to finance and support a convention center. Ms. Grizzel responded that the CVB Board supports the language in HB1720 to allow the City to purchase the land, construct a convention center, and operate, promote and maintain the facility. However, in order for the City to promote the convention center, a TDA will have to be established. The convention center should not be promoted by the City or through an individual hotel with a public/private contract with the City. This is money generated in the County and should be distributed by the TDA that reports to the County. Ms. Grizzel advised that she had worked with a TDA for ten years and stated that more accountability is required because it operates the same as a government entity. The TDA will be required to develop the marketing plan to promote the three beaches and develop a plan to promote the convention center; however, it is important for the bill to be written so an individual marketing plan does not have to be written for each beach municipality, which in her opinion would be a misuse of labor and funds. She again emphasized the importance of promoting the entire area as a whole. Discussion followed on re-levying the tax in the bill introduced by Representative McComas. Mayor Rothrock explained that after discussing this issue with the House Finance Subcommittee, it means that the current 3%ROT would not have to be re-levied by the County. Chairman Davis requested direction from the Board. Commissioner Caster spoke on being ready to support HB1707 with the definition of tourism related expenditures better defined because the beach communities have agreed upon the bill. He also noted that the convention center was a separate issue and stated that a meeting should be held with the City Council to discuss and better understand HB 1720. Commissioner Boseman spoke in support of having a uniform tax across the County in order to prevent a disaster with administering and collecting the ROT tax by the County. Commissioner Pritchett suggested asking the Finance Director to determine if the amount designated for administering and collecting the additional tax will be sufficient to prevent the County from losing money. Budget Director Griffin responded that if the tax is collected only in the beach communities the funding designated will not be sufficient because the Tax Department is not capable of separating out the beach communities. She advised that she would be glad to provide this figure. Commissioner Boseman also said that costs would be involved with preparing a separate marketing plan and financials for the beach communities. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 REGULAR MEETING, SEPTEMBER 3, 2002 PAGE 322 After a lengthy discussion on the guidelines of the House Finance Committee, Ms. Grizzel advised that all ROT bills have to comply to these guidelines; therefore, the TDA will have to be established. The County would establish the TDA with funds transferred from the CVB. Legally, the entity would be the Tourism Development Authority d/b/a the Cape Fear Coast Convention and Visitors Bureau, which requires only operational changes. Commissioner Caster asked if there was sufficient time to schedule a meeting with the Wilmington City Council. Mayor Rothrock responded that according to Representative McComas, the legislators will be in Raleigh until October. Consensus: After discussion, it was the consensus of the Board to: 1. Request the County Manager to schedule a Special Meeting with the Wilmington City Council on September 16, 2002, at 8:00 a.m. for the purpose of discussing HB 1720. Representative McComas, Representative Wright, and the beach municipalities are to be invited to attend the meeting. 2. Request Staff to provide the following information: •A copy of the City of Wilmington resolution reaffirming and modifying the request for the introduction of a local bill establishing an additional 3% ROT in New Hanover County. •A copy of the latest version of proposed amendments to HB 1707. •A copy of the latest version of proposed amendments to HB 1720. •Cost estimate for the County to collect and administer the tax. On behalf of the Board, Chairman Davis expressed appreciation to the beach municipalities for attending the meeting and sharing information on the details of the bills. ADJOURNMENT Hearing no further comments, Chairman Davis called for a motion to adjourn. Motion: Commissioner Boseman MOVED, SECONDED by Commissioner Pritchett, to adjourn the meeting. Upon vote the MOTION CARRIED UNANIMOUSLY. Chairman Davis adjourned the meeting at 8:40 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board