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HomeMy WebLinkAbout1999-05-17 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 256 ASSEMBLY The New Hanover County Board of Commissioners met in regular session on Monday, May 17, 1999, at 9:00 a. m. in the Golden Hawk Room of Trask Coliseum, University of North Carolina at Wilmington, NC. Members present were Commissioner Buzz Birzenieks; Commissioner Ted Davis, Jr; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Deputy Clerk to the Board, Teresa P. Elmore. Chairman Caster called the meeting to order and welcomed everyone present. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Timothy Flint, Pastor of Silver Lake Baptist Church, gave the invocation. Commissioner Birzenieks led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Caster announced that time had been reserved to allow the public to present an item that was not listed on the regular agenda or comment on an item listed on the Consent Agenda. He requested all persons speaking to limit their remarks to three minutes. Chief District Court Judge John W. Smith, expressed appreciation to the Board for providing the new office facility for Juvenile Justice. He spoke of the over crowding problems during the past year and the State’s mandate for the courts to handle more cases in less time. He thanked the Commissioners for their trust and support in the judges who deal with the children of the community. He also expressed appreciation for the new judicial building expansion project. Chairman Caster announced that the Grand Opening of the new facility for the Office of Juvenile Justice will be held on Thursday, May 27, 1999, at 12:00 Noon. He extended the invitation to all those present to attend. APPROVAL OF CONSENT AGENDA: Commissioner Birzenieks requested the removal of Consent Agenda Item 10 for further discussion. Commissioner Davis requested the removal of Consent Agenda Item 3 to receive clarification on the funding source. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to remove Consent Items 3 and 10 and to approve the remaining items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes of the Special Meeting of March 15, 1999, as presented by the Clerk to the Board. Acceptance of North Carolina Urban and Community Forestry Grant Award for the Cooperative Extension Service and Approval of Associated Budget Amendment #99-0157 The Commissioners accepted a grant award for the Cooperative Extension Service from the N. C. Urban and Community Forestry Grant Award in the amount of $4,710. The grant funding will be spent on conducting an educational tour of unique habitats of live oaks along the North Carolina coast and barrier islands to promote community awareness of the durability of the live oaks in the coastal environment. The following budget amendment was approved: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 257 #99-0157 - Cooperative Extension Service DebitCredit Cooperative Extension Service Urban Forestry Grant $4,710 Cooperative Extension Expense $4,710 Purpose: To budget grant proceeds from the North Carolina Urban and Community Forestry Grant Acceptance of New Hanover County and New Hanover County Fire District Tax Collection as of April 30, 1999 Reports The Commissioners accepted the following Tax Collection Reports through April 30, 1999, as submitted by the Collector of the Revenue: New Hanover County Tax Collections New Hanover County Fire District Tax Collections Copies of the reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXV, Page 12. Approval of Office of Juvenile Justice Grant Application for Discretionary Funding for the Intensive Home Visiting Initiative by the Women’s Health Care Division and Child Health Division of the Health Department The Commissioners approved the grant application for Intensive Home Visiting Initiative for $100,000 through the Office of Juvenile Justice Application for Discretionary Funding. If awarded, the grant will be used to hire two public health nurses in the Women’s Health Care Division and Child Health Division for the Dr. David Old’s Nurse Home Visitation Program. The program helps low-income, first-time parents prevent health and parenting problems that can contribute to the early development of antisocial behavior. The Juvenile Crime Prevention Council recommended approval of the grant application as required by the Office of Juvenile Justice. No County match is required . Approval of North Carolina Center for Nursing Recognition, Reward, and Renewal Grant Application to Purchase Exercise Equipment for the Health Department The Commissioners approved the grant application for the Recognition, Reward, and Renewal Grant Program of the North Carolina Center for Nursing. Grants are awarded for the purpose of improving retention of nursing staff and nursing support staff in health agencies. If awarded, the $5,000 grant will be used to purchase exercise equipment, which will be available during non-work times of lunch breaks, work breaks, and before and after work hours, at the Health Department. The equipment is to promote health awareness, disease prevention, stress reduction, and improved morale among staff. Approval of the Governor’s Highway Safety Program for Safe Communities Mini-grant Application for the Health Department The Commissioners approved the grant application to the Governor’s Highway Safety Program for Safe Communities for the Health Department. If awarded, the $10,000 grant will be used by the New Hanover County Safe Community Coalition to implement educational and highway improvement plans to reduce traffic related injuries and deaths in New Hanover County. Acceptance of Grant Award to Emergency Management from NC Department of Crime Control and Public Safety, Division of Emergency Management, and Approval of Associated Budget Amendment #99-0158 The Commissioners accepted a grant award to Emergency Management from the N. C. Department of Crime Control and Public Safety, Division of Emergency Management, in the amount of $1,642.50 for the purchase of 150 copies of Terrorism Handbook for Operational Responders. No County funds are required. The following budget amendment was approved: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 258 #99-0158 - Emergency Management DebitCredit Emergency Management North Carolina Department of Crime Control and$1,643 Public Safety - Division of Emergency Management Departmental Supplies$1,643 Purpose: To budget a grant award for the purchase of 150 copies of Terrorism Handbook for Operational Responders Appointment of Todd Hatley to the Child Fatality Prevention Team The Commissioners appointed Todd Hatley, EMS Training Officer of New Hanover Regional Medical Center, to the Child Fatality Prevention Team as the EMS representative. Adoption of Resolutions Requesting NCDOT to Add Roads to the Highway System The Commissioners adopted resolutions requesting NCDOT to add the following roads to the State Highway System: Roads in Heritage Woods Subdivision, Sections 2, 3, and 4 Roads in Grove Point Plantation and Laurel Ridge Subdivisions Murrayville Station Business Park Copies of the resolutions are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXV, Page 12. Approval of Budget Amendment #99-0154 Social Services/Child Day Care Services The Commissioners approved the following budget amendment: #99-0154 - Social Services/Child Day Care Services DebitCredit Social Services Child Day Care Services$47,270 Head Start Wrap Around $47,270 Purpose: To budget additional State funding received for child day care; no additional County funds are required Approval of Budget Amendment #99-0155 to Adjust Salary Budgets for the Remainder of FY1998-99 for Various Departments The Commissioners approved the following budget amendment: #99-0155 - Various Departments DebitCredit Finance: Salaries and Wages$10,000 Engineering: Salaries and Wages$25,000 Inspections: Salaries and Wages$130,000 Planning: Salaries and Wages$20,000 Cooperative Extension: Salaries and Wages$45,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 259 Health/Animal Control: Salaries and Wages$10,000 DSS/Administration: Salaries and Wages$130,000 Library: Salaries and Wages$20,000 Airlie Gardens: Salaries and Wages$23,000 Sheriff/Administration: Salaries and Wages$236,000 Sheriff 911 Center: Salaries and Wages$20,000 Sheriff/Jail: Salaries and Wages$157,000 Purpose: To adjust salary budgets for the remainder of FY98-99 Consideration of Lease Agreements Between New Hanover Regional Medical Center and the Coastal Carolinas Health Alliance and the East Carolina Emergency Physicians Commissioner Birzenieks reported that the Board of Trustees had not reviewed the proposed leases and he recommended approval of the leases to be contingent upon the Trustees’ approval. He requested that these types of items have the Board of Trustees’ approval prior to the Commissioners’ consideration. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Davis, to approve the lease agreements with Coastal Carolina Health Alliance for property vacated by the Cape Fear Foundation and approval of the lease agreement with Eastern Carolina Emergency Physicians, PA for the medical office space at 5220 Oleander Drive, contingent upon approval by the New Hanover Regional Medical Center Board of Trustees. Upon vote, the MOTION CARRIED UNANIMOUSLY. Consideration of Two Deputy Sheriff Positions to Provide Security for Staff and Clients at DSS and Approval of Associated Budget Amendment #99-0150 Commissioner Davis asked if the State will continue to provide half of the funding for the positions after the current fiscal year. County Manager responded that State funding will continue. The annual cost of the positions is $35,392. Assistant County Manager Patricia Melvin reported on contacting the security department of New Hanover Regional Medical Center to determine if the special law enforcement officers at the Medical Center could provide security at the Department of Social Services. Chief Creech informed her that the law enforcement officers did not have authority to provide security at any facility unless it was hospital property. MOTION: Vice Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to establish two deputy sheriff positions at DSS and to approve the associated budget amendment. Upon vote, the MOTION CARRIED BY 4 TO 1 VOTE AS FOLLOWS: Voting Aye:Commissioner Birzenieks Commissioner Davis Commissioner Howell Vice Chairman Greer Voting Nay:Chairman Caster NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 260 Chairman Caster voted in opposition because he felt that an outside security force should be contracted to provide the security service. Budget Amendment #99-0150 - Sheriff/Administration and DSS/Administration DebitCredit Sheriff/Administration: DSS/Transfer - Sheriff $5,444 Salaries and Wages$5,444 DSS/Administration: DSS Administrative Grants$2,722 Salaries and Wages$2,722 Contracted Services$5,444 Purpose: To budget the cost of two Sheriff’s Deputies providing security at the Department of Social Services for the remainder of this fiscal year. Reimbursements from the State/Administrative grants will provide up to 50% of the cost. The county’s cost of $2,722 will be provided by a deduction in the DSS salary account. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager O’Neal requested the following employees to step forward to receive their service awards: Employees Years of Service Nikki J. Todd, Health Department5 Years Betty C. Bamforth, Social Services5 Years Cheryl E. Humphrey, Social Services5 Years Cindy W. Reed, Social Services5 Years Mark J. Francolini, Human Resources10 Years Anna V. Franzitta, Tax Department10 Years Sharon H. Terrell, Tax Department10 Years Celeste E. Chadwick, Social Services10 Years Sheila S. Merritt, Social Services10 Years Jane Elizabeth Topping, Social Services10 Years Jeffrey H. Tripp, Sheriff Department20 Years Grace J. Russ, Cape Fear Museum20 Years JoAnn Swart, Social Services25 Years Chairman Caster, on behalf of the Board, presented the service awards to the employees and expressed appreciation to them for their years of service. RECOGNITION OF NEW COUNTY EMPLOYEES County Manager O’Neal requested the following new employees to stand and be recognized: Beth Wooten, Department of Aging Jennifer Grainger, Health Department Scott Compton, Health Department Andrea Carson, Health Department JoAnn Bauman, Health Department Kris Creger, Health Department Sharon Campbell, Health Department Susann Thompson, Information Technology Department Debra Wilson, Inspections Department Forrest Van Keuren, Inspections Department Don Reaves, Property Management Department Robert Nixon, Property Management Department NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 261 Johanna Leigh, Social Services Department Sandra Garrett, Social Services Department Maria Garay, Social Services Department Karen Durso, Tax Department Gloria Umstetter, Health Department Elizabeth Constandy, Health Department Chairman Caster, on behalf of the Board of County Commissioners, welcomed the new employees to county government and wished them well in their new positions. PRESENTATION OF THE COUNTY MANAGER’S FISCAL YEAR 1999-2000 RECOMMENDED BUDGET County Manager O’Neal reported he was pleased to present the recommended budget for fiscal year 1999-2000 with a proposed tax rate of 55.5 cents, a decrease of 11 cents on the current tax rate. The revaluation of property has brought the ad valorem tax base up to current market conditions, allowing for a decrease in the tax rate. He stated the revaluation will have different impacts on citizens’ tax payments depending on the changes in value of their individual property or properties. The following key items were presented: Expenditures Related to Growth in Population and Services: This budget will fund the increased services demanded by the growing county and its citizens. Funds are recommended for further development of Airlie Gardens, which was purchased during the current year to preserve an irreplaceable treasure for the citizens of the County for years to come. The increased debt service funding is included for additional schools and expansion of Cape Fear Community College. This debt service increase results from bonds passed by the voters of New Hanover County. Funds are recommended to complete the Ogden and Castle Hayne Parks and to begin work on the Veterans Park. Additional groundskeeper positions are recommended to maintain and improve the ? Countys growing park system. Initial debt service funding is recommended for a new Administration Building and the expansion of the Judicial Building. Improvements in both buildings are needed to better serve the citizens. Funds are recommended to provide full staffing at the new Northeast Branch Library including a housekeeper to maintain the facility. Additional funding is recommended for books in the library system. GENERAL FUND Public Schools: The County transfer and percentage of General Fund allocation to the Schools have increased in recent years. An amount of $49,309,866 is recommended as the transfer for the Schools, ? representing an increase over the current year of $6,071,532, or 14 percent. The Schools current operating request far exceeds the available funding. The preliminary request is for an additional $23,582,820 over the current budgeted amount. This is an increase of $11,289,133, or 33 percent, in current operating and $12,293,687, or 459 percent, in current expense capital outlay. This request, with the increased funding required for debt service, would require a General Fund transfer of $69,158,813 - an increase of $25,920,479, or 60 percent. The recommended amount will fund a 10 percent increase for both current operating and current expense capital outlay and the $2.4 million increase in debt service on bonds passed by the voters. Cape Fear Community College (CFCC): Funding of $2,924,534 (an increase of $338,810, or 13 percent) is recommended for Cape Fear Community College. The funding will be used for utilities and contractual services to fully utilize the Health Science/Learning Resource Center Building, the NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 262 Schwartz Center, and the Science Building, and address deferred maintenance needs of existing college buildings. It should be noted that debt service in the General Fund will increase $1.7 million for the CFCC bonds passed by the voters. Airlie Gardens: A penny on the recommended tax rate is directly related to the cost of operations and further development of Airlie Gardens. Personnel Issues: Of the 48 new positions requested, 32 are currently recommended, 29 in the General Fund. Five of these in the General Fund are completely funded by revenue they will generate or from grant sources. An explanation of the recommended positions follows: Emergency Management (1): An Emergency Management Specialist position will assist # in the federal mandate of community emergency response planning under OSHA and Superfund title requirements. Health (5): Two Animal Control Officers and a Clerical Specialist will improve the manner # in which animal control services are provided to the public. An additional School Nurse is ? recommended at the Schools request to meet the health needs of regular and disabled students. The Schools will fund the position. A part-time, grant-funded Social Worker II position is recommended to assist with the Temporary Assistance to Needy Families (TANF) Program. A General Services Worker in the Health Department is being eliminated. Inspections (2): A Zoning Enforcement Officer and Clerical Specialist are recommended # to allow the Department to keep pace with the population growth and development with the aim of providing more effective enforcement of land use regulations. These positions will be funded by Inspection fees and will assist with the efficient operation of the Department. Legal (1): An existing temporary/full-time Paralegal is recommended to become regular in # the Collections section of Legal to collect monies due the County and to represent the County in Small Claims Court. The County Attorney has advised that since the Paralegal works under her supervision and law license, the position needs to be regular for liability purposes. Library (2): Two Library Associates are recommended for a partial year to assist with the # staffing of the new Northeast Library. These positions will supplement the current staff at the Plaza East Library and the three positions available for the new Northeast Library in the current year. This will allow the Northeast Library, when it opens, to be open the same hours and provide the same services as the Myrtle Grove Library. Museum (2): Two temporary/full-time Assistant Registrar positions are recommended to # become regular positions. Parks (5): Five Grounds keepers are recommended for maintenance and improvement of # the County parks. Planning (1): A GIS/Addressing Specialist is recommended to better support those who # develop property and live in the community. All users (Planning, Inspections, E-911, ROD, Land Records and IT) will rely on one source of address information. This position is especially critical for the E-9ll system to perform effectively. This position will maintain the data base to provide timely, accurate address information to the citizens and development ? community that rely on these departments. One-half of the positions cost will be funded by Inspection fees. Property Management (3): One Maintenance Mechanic and one Electrician for light # construction and painting are needed to ensure the continued maintenance of County NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 263 buildings. An additional Housekeeper is added for a partial year to maintain the new Northeast Library. Sheriff (4): Four Deputy Sheriff positions are recommended to provide increased security # at DSS, the main Library, and Juvenile Justice Center. Three positions (grant-funded by the Domestic Violence and Gang Task Force grants) are being eliminated as the grants are ending. Social Services (2): Two Clerical Specialist positions are being recommended to assist with # ? the departments medical transportation and day care programs. The cost of the positions will be partially reimbursed. Tax (1): An additional Appraiser position is recommended for commercial/industrial # properties in the County. The position will be funded through the increased tax revenues that it generates. A 3 percent market adjustment for deserving employees is included. The County eliminated across- the-board increases six years ago. The pay plan adjustment is entirely performance based. A pay and classification study funded in the current year is scheduled to be implemented in FY2000- 2001. An amount of $306,020 is recommended to fund a $10 per pay period contribution to a 401(k) account for employees who are not sworn law enforcement officers. Law enforcement officers currently receive a 5 percent state-mandated contribution to a 401(k) account. An amount of $374,633 is included for the County to fund the total increased cost of the health insurance plan. County employees will not have an increase in their cost for health or dental insurance. Also included is the amount of $30,000 to continue the County-wide training, developed and operated by the Human Resources Department. This training has proven very effective. OTHER ? Department of Social Services: Social Services recommended budget is based on New Hanover County being designated as a Work First standard county. It assumes that SDA/Corrvantis will operate the Child Support Program with no guarantee of a $175,000 revenue/profit to the County. If the Board of County Commissioners decides to change the SDA/Corrvantis contract or designate another entity to administer Child Support, additional County dollars will be required. The increase in County dollars for Social Services is 0.5 percent, the smallest increase in memory, due to Work First and a healthy economy. Register of Deeds: Funding of $181,936 is recommended to begin the automation process for the Register of Deeds Office. This amount reflects the first-year installment payment. The total project is estimated to cost $1 million. ? Sheriffs Department: Funding is recommended to implement the Take Home Cruiser Program (previously approved by the Board of County Commissioners). An amount of $35,665 for the first payment is included to fund 23 vehicles that will be financed over three years. In addition, seven vehicles will be purchased with grant funds. Southeastern Center: An increase of $231,000 is recommended for Southeastern Mental Health Center to fund an Assertive Community Treatment team (ACT). This is an interdisciplinary team of mental health professionals working with a small group of clients who are major users of mental health services, but do not respond well to conventional treatment. Outside Agencies: There are some minor shifts in funding for outside agencies. In the Human NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 264 Services area, there is a slight increase in total funding for agencies. The Human Services Allocation Advisory Committee makes recommendations on the Human Services funding. REVENUES: The revaluation of property has brought the ad valorem tax base up to current market conditions accurately reflecting changes in valuations that have taken place over the past eight years. ? The revaluation will have differing impacts on citizens tax payments depending on the changes in the value of their individual property. The current ad valorem tax base is estimated to be $15.5 billion. Based on this estimate, a penny will be worth $1,519,000. The sales tax revenue from the one cent sales tax (Article 39) is estimated to increase $1.2 million, or 6.6 percent, above the current budgeted amount. While the sales tax revenue is increasing, the ? growth is not as great as it would have been without the City of Wilmingtons recent involuntary annexation. Without the change in the sales tax formula caused by annexation, the revenue would have grown an additional $500,000. The impact of annexation will be felt even more in FY2000- ? 2001 since the citys portion for three quarters (to the detriment of the County, schools, and beach communities) will be based on city ad valorem collections for 17 months due to the mid-year annexation during FY98-99. The sales tax revenues from the two one-half cent sales taxes are estimated to increase $400,000, or 3.5 percent. The sales tax revenue, of which a portion is designated for the Schools, is also impacted ? by the citys annexation plan. ? No fund balance is appropriated in the recommended budget. The Countys strong fund balance is important to continuing a program of financial strength. ENVIRONMENTAL MANAGEMENT FUND: A transfer of $1.4 million from the General Fund is projected to balance the Environmental Management Fund. Fund balance from the Environmental Management Fund in the amount of $1.7 million is also appropriated. Staff and a group of citizens who are knowledgeable in this field continue to review ways to provide waste disposal services to the citizens in the most efficient and equitable manner. The recommended tipping fee is $28 per ton, a decrease from the current fee of $34. The reduction ? is recommended to retain the refuse in the County and should reduce the citizens trash collection bills. Two temporary positions, a Recycling Operator and Executive Director of Keep America Beautiful, are recommended to become regular positions. The Executive Director will be a regular, half-time position. FIRE SERVICE DISTRICT: An anticipated 1 cent tax increase is recommended for the Fire Service District. The increase is necessary to replace fund balance that was budgeted in the past and ? expended to improve the protection of life and property from fire. The decrease in the Districts ad valorem tax base (because of annexation) is offset by the increase in the tax base due to revaluation. An additional position is recommended to assist with the administration and training of field personnel ? in the District. The impact of the citys annexation plan on the volunteer departments will continue to be reviewed. The Board will be kept abreast of changes in these services. WATER AND SEWER DISTRICT: The District currently provides service to approximately ? 24,000 water and sewer customers (residential and commercial). The Districts current operation and future expansion are funded by user fees and a $5.4 million transfer from the General Fund. The monthly sewer fees are currently being reviewed, and a revised fee schedule will be presented ? for the Boards review and consideration. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 265 CAPITAL IMPROVEMENT PROGRAM: Funding for a number of capital projects is recommended as follows: •Completion of Ogden Park - $740,000 •Completion of Castle Hayne Park - $160,000 •Architectural Fees for Jail Expansion - $450,000 •Initial Stages of Park Development at Veterans Park - $650,000 UNKNOWNS: Drainage requirements will be addressed pending receipt of study results. •Discussions are currently taking place with the Schools on the best way to plan for and meet the future needs of students at an acceptable tax rate. •Contract negotiations continue with SDA/Corrvantis on the most efficient way to provide child support services. The method chosen may impact the budget. •The Legislature is still in session and formulating a State budget. Any shifts made in revenues, responsibility and/or matching requirements for grants, or human services programs may impact the budget. •Future annexations by the City of Wilmington as well as the success of the consolidation study resolutions may impact future budgets. •Juvenile Justice Reform that was enacted during the last session of the Legislature is still being implemented. The possible impact on the budget is unknown at this time. While the recommended budget does not fund all the requests that have been received (particularly ? the Schools request), the document balances the needs of our growing County with the necessity to levy the most responsible tax rate possible. At the request of Commissioner Birzenieks, a graph of expenditures by object was shown; and it was pointed out that the County spends more on Education than on County employees’ salaries. In conclusion, County Manager O’Neal stated that the Public Hearing for the budget will be held on June 7, 1999. As in the past, the School System, DSS, Health Department, Sheriff’s Department, Southeastern Center, and CFCC will make budget presentations to the Board at that time. Some of the outside agencies may ask for more funding than what is recommended. He requested the Board to schedule another Budget Work Session before meeting on June 7, 1999. Chairman Caster commented that the Board may need to hear public comments before conducting another work session and suggested to schedule the work session on June 8, 1999, at 5:00 p.m. Consensus: The Commissioners agreed to hold a Public Hearing on June 7, 1999, and to schedule a Budget Work Session on Tuesday, June 8, 1999, at 5:00 p.m., in Room 501 of the County Administration Building. The Budget is scheduled for adoption on June 21, 1999. Commissioner Birzenieks commented on Judge Smith’s remarks on the State’s mandating policies on the county level, but providing very little funding for the county. He commended Senator Ballantine’s efforts in SB440 to send some of the State’s tax revenue back to the local governments. Regrettably, it does not appear the General Assembly will provide any relief to counties in the near future. PRESENTATION ON THE STATUS OF THE JUDICIAL BUILDING EXPANSION PROJECT Bruce Bowman, architect with BMS, reported that the Judicial Building Expansion project is in the early stage of design development. The statistical study showed that New Hanover County Judicial System is very efficient in the number of cases heard in the courts. By using the space study and schematic proposal, plans for future growth in the departments can be developed. However, it is difficult to predict the number of courtrooms or judges that will be needed in 10 years or more because of unknown impacts from legislation and the number of law enforcement officers. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 266 He presented a site plan that showed the location of the new building expansion next to the Historic Courthouse with a courtyard space between the two structures. A connection between the existing building and the new building will allow staff access to secure quarters in the existing structure. The new building will be approximately the same height, scale and historic context as the existing building. Mr. Bowman recommended to adjust the project scope to include an additional district courtroom in the proposed 36,000 square foot space. In a meeting with Judge Smith and others in the court system, some internal security problems were pointed out in getting the judges from their quarters to the new courtrooms without having contact with the public. A meeting with the district attorney revealed that the arrival of additional staff members will be earlier than expected and additional space will be needed. To accommodate the needs of both departments, he proposed adding an additional story to the building within the existing building height by taking space out of the floor ceiling cavities. The cost for the new floor will be about $80 per square foot or $600,000, since some of the cost factors were already included. Construction of a new truss system will add some space in the attic for file or archive storage to accommodate the anticipated need for additional storage and will cost another $200,000. Secondly, Mr. Bowman recommended to expand the project by including a construction alternate to upgrade all the finishes throughout the building that are not in the proposed renovation plan. Twenty percent of the existing 100,000 square foot complex is planned for renovation and will have new finishes. While having a contractor on site when shifting the departments around, the County may want to include finish upgrades to other parts of the building. Timing will be of the essence and Property Management will not be able to handle the additional work during the moves of the courtrooms. Lastly, the space study plan showed a shared parking garage for the administrative complex and the courthouse as a separate design package. The City of Wilmington’s parking requirements exceed the number of spaces that was forecasted for the new courtrooms. The Zoning Ordinance allows the code enforcement officer for government structures to determine the parking needs, but in a preliminary meeting with the City inspectors and Mike Hargett, it was noted that 230 additional spaces will be required. He recommended a separate parking project within a two to three block distance to serve the building. Adding another floor to the proposed building increased the parking count requirement by 24 spaces. Office space has a lower parking requirement than assembly and courtrooms. Although he had argued that not all of the courtrooms will be used at the same time and that the District Attorney’s offices are normally empty when courts are in session, the City decreased the number of spaces very little. They argued that the existing buildings require over 400 spaces. Deputy County Manager Andy Atkinson explained that by adding a floor, the judges suites will be moved to the third floor and the District Attorney’s Office will stay on the fifth floor. Both departments felt that they should be on separate floors to avoid close contact in performing their duties of the courts. Mr. Bowman stated that before adding the floor, a full renovation of the judges’ suite was planned. Since the judges will be relocated to another floor, the District Attorney’s Office can move into the space as partitioned. Improved circulation is provided at a more economical cost for a building expansion. Chairman Caster commented that the parking situation may be a reason why the County should consider moving its administrative functions outside of the downtown area. Then County property could be used for parking areas. Since parking is a problem that will increase building costs the County may need to consider other options. County Manager O’Neal responded that there are several County projects occurring in the downtown area that have some flexibility to accommodate the County’s space and parking needs. Current projects include the renovation of the Historic Courthouse, the expansion project of the Judicial Building, demolishing the Administrative Annex Building and constructing a new Administrative Building. An analysis of the building space and parking needs will determine the best NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 267 locations for the buildings and parking areas. The proposed building on the library parking lot site may be moved to another place in the downtown area or out of the downtown area. Mr. Bowman suggested that other County properties in the downtown area, such as the parking lot beside Thalian Hall, can be used as an alternate location for the administrative offices. Additionally, the on-grade parking can be posted for the Judicial Building Expansion Project. County Manager O’Neal suggested that the site of the Annex Building can be used to meet the parking requirements of the Judicial Building Expansion, after the old building is removed. Mr. Bowman agreed that a five-level parking deck could be constructed on the site. If the County provides a letter of intent in moving forward with a parking project, the City will allow the County to proceed with construction of the expansion. The City has completed a thorough parking survey, dated January 1999, which shows the need for additional parking spaces for any new construction project. Chairman Caster also pointed out the need for additional parking in the area of Cape Fear Community College. County Manager O’Neal stated that the purpose of the briefing was to provide the status of the Judicial Building Expansion project and to receive a consensus from the Board to proceed with the recommended changes. The original construction costs of the project were estimated at $6.6 million, and approximately another $1 million will be needed for the revised plan. Consensus: The Commissioners accepted the recommended changes to the proposed Judicial Building Expansion project as presented by BMS Architects and authorized the architects to proceed with the process. CONSIDERATION OF RESOLUTION TO ESTABLISH TRANSPORTATION PRIORITIES IN NEW HANOVER COUNTY AND CONSIDERATION OF RESOLUTION IN SUPPORT OF CONSTRUCTING A FOUR-LANE HIGHWAY BETWEEN WILMINGTON AND CHARLOTTE, NORTH CAROLINA Chairman Caster reported the two transportation items listed on the agenda will be heard at this time because of their relevance to each other, and Mr. Warwick was present to make a presentation. Robert Warwick, Chairman of the Community Growth Planning Task Force, spoke on the work of the Core Team addressing transportation issues of the city and county. At last month’s meeting with representatives of the North Carolina Department of Transportation, Louise McColl suggested that the Task Force concentrate on three highway projects to submit to the NCDOT. The Core Team has selected the following three transportation priorities: 1.Completion of Smith Creek Parkway: The goal is to speed the completion date of the project that originated over twenty years ago. The current schedule calls for the project to be completed in about seven years. The City’s Transportation Planner, Bill Austin, has stated that the project could be completed in about 42 months. NCDOT should commit the resources to finish the long-awaited project. 2.Completion of Independence Boulevard from Park Avenue to Randall Parkway by July 2000: The project is on scheduled, but emphases should be made to keep the project on schedule. 3.Widening Kerr Avenue to five lanes from Peachtree Avenue to Smith Creek Parkway: The completion of this project will bring some relief to traffic congestion on College Road and will provide another route to I-40. Mr. Warwick stated that there are a number of highway improvement projects in the Transportation Improvement Plan (TIP), but these three projects should be the focus for this year’s transportation needs. He requested the County Commissioners and City Council members to adopt NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 268 joint resolutions endorsing the three priority projects and to include the projects in the Wilmington Urban Area Transportation Plan. He also requested that Chairman Caster and Mayor Hicks present the resolutions to Norris Tolson, Secretary of the North Carolina Department of Transportation at the Transportation Summit on May 26, 1999. After the Transportation Plan is adopted, all the leaders of the community and the transportation groups should travel to Raleigh to present the plan to NCDOT with special emphases on the importance of the three projects to the area. NCDOT should be requested to complete the projects as soon as possible. After these three projects are completed, the community should determine the next three transportation priorities to promote. The State has neglected more highway construction projects in New Hanover County than any other county in the State. The community needs to convince NCDOT to spend more money on the local highway projects. Chairman Caster stated that he spoke with Louise McColl, Board of Transportation member for the local area, about the proposed resolutions and she recommended that the County support the recommendations of the Community Growth Planning Task Force. Although a good highway to Charlotte is needed and should be considered at some point, she had requested the Commissioners to support the three local priorities as the primary issue and to hold off on supporting other road construction projects. The Commissioners requested Mr. Warwick to respond to whether the County should support both resolutions at this time. He responded that the Community Growth Planning Task Force was in favor of better highways between Wilmington and Charlotte. U. S. Highway 74 is another perpetual road project that has been worked on for many years. Some sections of the highway have too many access points, which make driving conditions hazardous. Although he supported the road project, he did not feel it should be considered as one of the top three priorities for road construction projects. Commissioner Howell commented that Highway 74 is a regional highway and should not complicate the matter of local support for the three priorities. However, the County would be encouraging NCDOT to spend money in other counties that would facilitate the regional needs. Bill Austin, Transportation Planner for the City of Wilmington, stated that the Comprehensive Plan Steering Committee has listed another connection to I-95 as a long-range planning goal. Since the State is having some funding difficulties, the County may want to emphasize the local priorities at this time. The State has worked to improve Highway 74 by moving roads around many of the small towns. He suggested that the Commissioners may want to take Mr. Warwick and Ms. McColl’s recommendation to focus their support on the three local highway projects. Concerning the time schedule of the Smith Creek Parkway project, Mr. Austin reported it may not be possible to complete the project by 2001. Acquisition of properties will take about two years and construction of the remaining section will take another two to three years. Nevertheless, local support for the completion of the project should be presented as a priority. Andrew Koeppel, a resident of the county, requested the Commissioners to adopt the resolution in support of improvements to U. S. Highway 74. He felt that if New Hanover County adopts the resolution, other counties along the highway would adopt the same resolution. Since Commissioner Greer is the President of the North Carolina Association of Counties and is on first name basis with many of the Commissioners in the State, the County could take the lead in having other counties support the improvements to the road. Regional support will be very important in getting Secretary Tolson to respond to the request and to proceed with a feasibility study. Mr. Koeppel reported that in 1955, Dan Cameron, former Mayor of the City of Wilmington, placed a high priority on building a four-lane highway between Wilmington and Charlotte. After too many years of neglect, the project seems to be forgotten. Adopting the proposed resolution will represent a first and significant step toward proceeding with the road project. If the County requests the State to fund a feasibility study for the highway project, the County’s appeal to the State for completion of the local highways projects will not be affected. He urged the Commissioners to adopt both resolutions. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 269 Commissioner Davis asked if the Commissioners’ endorsement of the feasibility study for the highway project to Charlotte would have a negative impact on NCDOT funding the three local projects. Mr. Koeppel stated that adopting both resolutions would not affect the funding of the other. It would take several months before the other counties could adopt a resolution of support. He stressed the importance of informing NCDOT that the region wants the highway built. Realistically, the road construction will take more than ten to twelve years and will not detract from the local road projects. Commissioner Birzenieks commented on the proposed resolutions being separate and distinct, but before any resolution of support for a four-lane highway to Charlotte has any strength, all the other counties along Highway 74 will need to endorse the project. Vice Chairman Greer asked if the proposed Interstate 73 will run in conjunction with Highway 74 or other roads in that area. Mr. Koeppel replied that the proposed interstate does not extend westerly from I-95 to Charlotte and is more northerly in direction. Funds are in place for the section of the road between I-95 and Brunswick County. No funding has been designated for a four-lane highway between Wilmington and Charlotte, especially around Rockingham and Hamlet. Vice Chairman Greer stated he believed that part of the proposed interstate will go through some of the small towns that are west of I-95. At any rate, the Commissioners will need to consider if this request or other requests for support of road projects will dilute the intent of the resolution for the three local priorities. Additionally, there are other groups who want support for road projects, such as the rail transportation system to Charlotte and the proposed I-73. But the Chamber and the Community Growth Planning Task Force have asked the County to support these three local priorities. Mr. Koeppel argued that the resolutions were separate and distinct from each other and NCDOT will understand the intent of each resolution. He did not believe that support for the Highway 74 project will compromise the three local highway projects. As Ms. McColl had stated, NCDOT needs to know the community’s priorities for local transportation issues. He urged the Commissioners to adopt the resolution in support of a feasibility study and to request the other counties in the region to support the proposal. This resolution could be held and presented to NCDOT later when the other counties have given their support. Meanwhile, the local priorities should be submitted to NCDOT. Chairman Caster called for a motion on the resolution to support the three priorities of the Community Growth Planning Task Force Motion: Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to adopt the resolution establishing the top three priorities in local highway projects as presented by the Community Growth Planning Task Force. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster called for a motion on the resolution in support of road improvements to U. S. Highway 74. Motion: Commissioner Howell MOVED, SECONDED by Commissioner Birzenieks, to adopt the resolution in support of a feasibility study on constructing a four-lane highway between Wilmington and Charlotte and to request the Boards of County Commissioners along the road route to adopt similar resolutions of support and to notify New Hanover County of their action. Upon receipt of the resolutions, the Board will vote to submit the resolution to NCDOT. Upon vote, the MOTION CARRIED UNANIMOUSLY. BREAK: Chairman Caster called a break from 10:20 a.m. to 10:35 a.m. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 270 CONSIDERATION OF CONTRACT FOR HEALTH INSURANCE COVERAGE FOR COUNTY EMPLOYEES FOR FY 1999-2000 Human Resources Director Andre Mallette stated that the three-year contract with Blue Cross/ Blue Shield of North Carolina for medical insurance coverage to county employees will expire at the end of the fiscal year. The County’s health care consultant, HealthCare 2000, had solicited proposals from seven companies for health care coverage. Two companies, Blue Cross Blue Shield and United Health Care, have submitted proposals for consideration. After reviewing both proposals and the cost for the health insurance coverage for next fiscal year, staff recommended to award the contract to United Health Care. Peggy Harris, Account Executive with United Health Care, spoke on the proposal process and working with HealthCare 2000 and County staff to develop a very competitive health care program for County employees that will provide a high level of health care. United has been a consistently strong company in managing cost and in the delivery of quality care and has an outstanding medical care ratio. The company has a three year accreditation by the National Committee for Quality Assurance, which is the approval rating for a high standing managed care company. She expressed appreciation to the Commissioners for the opportunity to offer the United Health Care proposal. Joann Wetzel, Blue Cross Blue Shield representative, expressed appreciation for being able to provide medical care coverage to the County for the past three years. She pointed out that the cost difference between the two plans was less than 1% and asked the Board to consider the cost of changing or disrupting the service to the employees if another company was awarded the contract. She offered the advantage of the collective buying power that BCBS provides with the NCACC. The benefits package has improved access and does not require referrals or gatekeepers. County Manager O’Neal reminded the Board of the process that the County developed to receive the proposals from various companies. A committee of county employees worked with HealthCare 2000 in assessing the County’s needs. After analyzing the benefits of the programs compared with the costs, the committee unanimously agreed upon United Health Care. Although the service provided by BCBS has been very satisfactory, the committee made the business decision to go with United. A list of NCACC Health Insurance Trust members showed that most were smaller counties or organizations that were unable to get better prices for their insurance needs. One large county, Cumberland County, participates in the trust. Commissioner Birzenieks asked for the cost savings between the two providers. Director Mallette responded that the proposal from Blue Cross Blue Shield was for $5,704,121 and United Health Care proposal was for $5,587,075. Neither of the vendors offered multi-year contracts. Commissioner Davis asked if employees could use the same doctors as before and if any major changes or disruptions would occur under the proposed plan with United Health Care. Human Resources Director Mallette replied that both companies offered basically the same doctors. The BCBS program will be a new product for the employees and the County will hold mandatory group meetings. New cards will be issued no matter which program is chosen. Commissioner Birzenieks commented that he had favorable experiences with both companies and both perform very fine services. He spoke of the NCACC offering a group purchase arrangement and that these types of arrangements work well when most of the members participate. He felt strongly that the County should participate with the association because the County may lose opportunities in the long run. He spoke of the common practice of vendors who offer low prices to members of a group and then increase the rates after the group has been dissolved. Although there is some monetary savings with United, he felt that the County should support NCACC. Eventually, as more counties support the association and the trust, rates will decrease because the insurance risk is less with larger groups. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 271 Vice Chairman Greer stated that he had checked on whether he should abstain from voting because of his being president of the NCACC. It was not a conflict of interest. He agreed with Commissioner Birzenieks that not only was it good for New Hanover County, but all counties in the State should participate in the group purchase with the association. The main reason for the insurance pool is to benefit counties that have problems in getting health insurance or other types of insurance. As more counties are involved in the Trust, the association’s health insurance plan will be stronger and more competitive. He felt strongly that the County should contract with the BCBS plan. County Manager O’Neal stated that the County had participated in two association pools over the years, one with liability insurance and one with workers compensation. Better rates were found independent of the Trust. Motion: Commissioner Birzenieks reiterated the advantages of supporting the NCACC and having the purchasing power of 100 counties. He then MOVED, SECONDED by Vice Chairman Greer, to award the FY 1999-2000 health care insurance contract for county employees to Blue Cross Blue Shield (NCACC Agreement). Substitute Motion: Chairman Caster MOVED, SECONDED by Commissioner Davis, to award the health care insurance contract for county employees to United Health Care. Upon vote, THE SUBSTITUTE MOTION FAILED BY A 2 TO 3 VOTE AS FOLLOWS: Voting Aye:Chairman Caster Commissioner Davis Voting Nay:Commissioner Birzenieks Commissioner Howell Vice Chairman Greer Chairman Caster called for a vote on the original motion to award the contract to Blue Cross Blue Shield. Upon vote, the MOTION CARRIED BY A 3 TO 2 VOTE: Voting Aye:Commissioner Birzenieks Commissioner Howell Vice Chairman Greer Voting Nay:Chairman Caster Commissioner Davis SELECTION OF ENGINEERING CONSULTANT TO DEVELOP COMPREHENSIVE DRAINAGE REGULATIONS Assistant County Manager Weaver stated that at a recent work session, the Commissioners reviewed the proposals from Dickson and Associates and from McKim and Creed on developing comprehensive drainage regulations for the County. He requested the Commissioners to select a firm and to allow staff to negotiate a contract and scope of work for the project. Commissioner Birzenieks stated that he regretted he was unable to hear the second presentation because of having to attend a funeral. He felt uninformed in making the decision, but would support the decision made by the Board. Vice Chairman Greer commented that the County was fortunate to have two fine local companies able to perform the work. Because Dickson and Associates was the group that began the process with the drainage study, he perceived that it would be practical to continue with the same firm. Motion: Vice Chairman Greer MOVED, SECONDED by Commissioner Howell, to select Dickson and Associates to develop the Comprehensive Drainage Regulations for the County. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 272 CONSIDERATION OF MASON’S INLET RELOCATION PROJECT County Attorney Wanda Copley reported that at the staff meeting on Thursday, the Board had expressed its desire to support the resolution. However on Friday, she received a revised resolution that the Mason Inlet Preservation Group (MIPG) had approved. Attorney Bill Raney wanted the Commissioners to have the flexibility to contract with the Figure Eight Island Homeowners Association as an alternative to the assessment process. Attorney Bill Raney, representing the Figure Eight Island Homeowner’s Association, apologized for the confusion created by the late delivery of the revised resolution; and he stressed their intent was not to cause confusion. The first draft was prepared to follow the requirements of the statute but really did not address certain details from the engineering firm concerning the assessment process. The revised resolution includes the requirements of the statutes for a preliminary assessment on the property owners plus another way to provide financing of the cost at an earlier stage. After consultation with the Institute of Government, a provision was included to allow the County to contract with the Figure Eight Beach Homeowners Association in the amount of the cost allocated to the Figure Eight Island home owners rather than the assessment process. This revised resolution gives the Commissioners the ability to consider another option. Unless this provision is included in the resolution, it may not be possible to consider it at a later time. The resolution also supports the concept of assessing all the property owners using the statutory process and the approved formulas as developed by the representatives of the associations. Although the statute does not require a public hearing, the hearing will allow the public to comment on the issues. The Commissioners will be able to make further changes to the project, but time has always been very critical to the project. Chairman Caster expressed concern that the wording in paragraphs two and three of the resolution seems to allow the County to contract with Figure Eight Island in a preferential way. Mr. Raney explained that inserting the contract option would not preclude the assessment process. At some point the Commissioners may want some flexibility because there are many unknowns about the project, such as the final design and scope of the cost. He said if the Commissioners were to decide on a contract agreement with the Figure Eight Homeowners Association, the County could avoid a large amount of paperwork by staff. Chairman Caster commented that out of the estimated total cost of $4.2 million for the project, the assessment of Figure Eight Island will be $1.4 and Shell Island Resort area will be $2.8. He questioned what would happen if less sand was sold to the Figure Eight Homeowners Association than anticipated. If the Figure Eight Island people end up paying less, the Shell Island area will have to make up the difference. The Figure Eight Homeowners Association can pay up front if they do not want the property owners to be assessed. From the County’s perspective, the safe way for the money to be paid back is through the assessment. Mr. Raney explained that an equitable financial plan based on the benefits received by both sides of the inlet was discussed. The people on Figure Eight benefit primarily from the sand they get from the dredging. People on the Wrightsville Beach side of the inlet will benefit by reducing the erosion threat to their properties. There is not a formula that fits both situations in allocating the total cost of the project. Representatives of the groups felt the best way to deal with the issue was to place a value on the quantity of sand for Figure Eight Island. If Figure Eight did not get any sand and all the sand went to relocating the inlet, then Figure Eight would not be obligated to pay anything, as agreed by the Figure Eight Homeowners Association and MIPG. The cost presented was based on the project estimates in terms of quantity of material that will be dredged out of the inlet, the quantity to fill the Wrightsville Beach side, and the quantity to fill Figure Eight Island. It is estimated that the cost will be $4.2 million, but the final cost is unknown. Chairman Caster stated the Board supports the relocation of the channel to save the northern part of Shell Island by building up the beach. Other benefits include: improving water quality, allowing boaters access through the inlet, and placing sand on Figure Eight Island. County Attorney Copley expressed concern that in all the meetings the intent of the payback to the County had been through the assessment process. Mr. Raney had met with his clients and they NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 273 came up with an alternative to the contract procedure. The County is more protected through the assessment process because the property can be foreclosed upon if the assessment is not paid. The property owner can pay the assessment immediately without paying any interest or pay it over a three year period. A contract can have provisions included, but the County may have to sue for breach of contract if payment is not made. Sometimes interpretation can be a problem. She advised the Commissioners to use the assessment process and to remove the paragraph dealing with the sale of sand from the resolution. Chairman Caster asked if the resolution would then meet the requirements of the law. County Attorney Copley advised that the law does not require the Board to consider the alternative. The law is very specific on the assessment process and the County will need to be very careful to abide by it. It will be very important to get the correct tax roll compiled and presented because the assessment law is very strict. Susan McDaniel, attorney for the Shell Island Resort Homeowners Association, stated the main concern of the Shell Island property owners and the MIPG is to adopt a resolution today so that the public hearing can occur on June 7, 1999. She urged the Commissioners to adopt the resolution and apologized for the confusion of the revised resolution. The proposal meets all the statutory requirements and the portion about the contract and sale of sand is another option that the Board could consider in the future. Although the Shell Island group does not have a problem with that portion of the revised resolution, she suggested removing it because it was more important that the Board feels comfortable with the proposal. It is very critical that the Board adopts a resolution that has all the statutory requirements of paragraphs one, three, four and five. Mr. Raney apologized for the confusion of the revised resolution and stated he should have discussed it more thoroughly with the County Attorney. He explained that the proposal does not eliminate the assessment process for Figure Eight, but it does provide some flexibility to the financing plan. He did not object to the straight assessment process and requested the Board to proceed in adopting a resolution. Chairman Caster asked for clarification of the paragraphs to remove from the resolution concerning selling the sand to Figure Eight. Ms. McDaniel replied that the first sentence in paragraph two should remain and the rest of paragraph two should be removed; the remaining paragraphs pertain to the statutory requirements. The section about the $5.50 per net cubic yard of sand is the cost allocation that all parties have agreed to use as the basis to determine benefits to each side of the inlet. Chairman Caster asked whether the affected homeowners would agree to the adjustment if the actual amount of sand received is different from the estimates. Frank Pinkston, Chairman of the MIPG, stated that the estimated benefits for the north and the south sides of the inlet are based on the amount of sand that Figure Eight Island would receive. If the size of the project changes, such as having less sand available for Figure Eight Island, the rate of $5.50 will be used to make the assessments. The project cost of $4.2 million is based on the number of cubic yards that will be dredged. Vice Chairman Greer asked if the groups had considered using percentages as a basis for the amount of benefit received by each side of the inlet. Ms. McDaniel replied that percentages could not be used because of unknown factors, such as the amount of sand that will be dredged from the inlet and channel during the project. After an engineer is selected on June 7, design work and final plans will provide a better idea on the scope of work and cost. The project cost has already been reduced from $6.2 million to $4.2 million and it is conceivable that the project can be reduced even more. Flexibility will be needed to determine how much of the dredged sand will be used at Figure Eight after the inlet is finished. Percentages will not give that flexibility. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 274 Commissioner Birzenieks stated he would be voting against the resolution because he had previously voted against borrowing money from the Room Occupancy Tax Funds for the project. However, he would support any action taken by the Board henceforth. Motion: Chairman Caster MOVED, SECONDED BY Commissioner Howell, to adopt a revised resolution in support of a preliminary assessment on property owners that benefit from the Mason’s Inlet relocation project and to hold a public hearing on June 7, 1999. Upon vote, the MOTION CARRIED three to two. Voting AyeCommissioner Howell Vice Chairman Greer Chairman Caster Voting Nay:Commissioner Birzenieks Commissioner Davis A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXV, Page 12. CONSIDERATION OF PARKS AND OPEN SPACE BOND REFERENDUM COMMUNITY ASSESSMENT PROPOSAL Parks Director Neal Lewis reported that the Commissioners approved hiring a research consultant to conduct a public opinion poll on the public’s interest and support of a bond referendum at the meeting on March 22, 1999. The Parks and Recreation Advisory Board and the Parks Foundation Board of Directors have recommended approval of the proposal from East Coast Consumer Research as the consultant to perform the public opinion poll for $30,000. At the Parks Foundation Board meeting, the members reviewed a report prepared by the Land Trust Alliance that gave the results of 1998 bond referenda for parks and open space nationwide. The group discussed whether to have a bond referendum or a tax assessment to raise money for the purchase of parks and open space. Tax assessments do not go before the voters for approval. He asked the Board to have the research consultant ask the public their opinion of the funding. At this time, the questions for the community assessment have not been determined. County Attorney Copley advised that the pollsters could ask if the taxpayers were willing to pay two cents of their taxes for “x” number of years for the purchase of park land. They could have a choice between a bond referendum or a specific tax to allocate a certain amount of money per year for the purchase of land. Commissioner Birzenieks commented that the County would get the money up front in a lump sum payment from a bond referendum. By using a tax assessment, the County would have to wait until enough capital was raised over a number of years before the land could be purchased. As fast as land is being used in the county, it may be better to have the money up front to purchase the land. Director Lewis replied that the availability of the money would be a drawback; however, recent school bond issues may influence whether another bond referendum will pass. Commissioner Birzenieks felt that the research consultant should include the question in the community assessment to determine how much people will be willing to pay to get the additional parks and open space throughout the county. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Davis, to award the contract to East Coast Consumer Research of Wilmington to perform a community assessment on the acquisition of land for parks and other green space and to determine whether to have a bond referendum or tax assessment to raise the necessary money. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION OF RENEWAL OF LEASE AGREEMENT WITH COAST LINE CONVENTION MANAGEMENT, INC. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 275 Charles Carver, General Manager of the Hilton Hotel, stated that an 18 month extension to the lease agreement with Coast Line Convention Management is requested to satisfy the bank’s request for a condition for sale of the Coastline Inn property. The extension will allow the Convention Center to have a three year planning horizon for those who want to book the center two to three years in advance. The City of Wilmington approved the extension on April 20, 1999. Mr. Carver spoke of the importance of the convention center to the local economy. A recent survey by Deloitte and Touche revealed that a typical conventioneer contributes $217 per day to the local community. As General Manager of the Hilton, Mr. Carver stated he has used the convention center for 14 major conventions in the past year. Seven conventions could not have come to Wilmington without the availability of the facility. In December, Carolina Association of Collegiate Registrars and Admissions will hold its conference at the Hilton and will use additional meeting spaces at the Convention Center. The Convention and Visitors Bureau estimates that the group will bring about $1 million in economic activity to the area. The Hilton will receive $80,000 for room rentals and collect $4,800 for sales tax, $2,400 for Room Occupancy Tax, and $1,400 for beach renourishment. Chairman Caster asked when the City and County will stop subsidizing the Convention Center. Mr. Carver replied that the Convention Center has started to pay for some of its operations; however, some money will always come from another source. Most all convention centers receive funding from an outside source. It is important to consider the value of the facility and service to the community, especially for local civic shows, garden shows, and other similar activities. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to approve an 18 month extension to the lease agreement with Coast Line Convention Management, Inc. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION OF AMENDMENTS TO THE BYLAWS OF THE CAPE FEAR MUSEUM BOARD OF TRUSTEES Chairman Caster reported at the last meeting, the Commissioner removed the Amendments to the Bylaws of the Cape Fear Museum Board of Trustees from the Consent Agenda for further review. He asked the Board if there were questions for the Museum Director. Vice Chairman Greer asked why the Museum Board of Trustees included Article XI in the bylaws. Museum Director Janet Seapker responded that Dr. Hooper wanted the members to be able to vote by proxy, but it was determined that proxy votes were not appropriate. Robert’s Rule of Order Revised allows absentee voting by mail, and the Board of Trustees voted to include the article into the bylaws. After discussing the effect of members not attending regular meetings of boards and committees, Vice Chairman Greer stated it would be inappropriate to allow absentee voting by members who were not attending the meetings. If board members care enough about the functions and business of a board, they will attend the meetings to vote. Motion: Vice Chairman Greer MOVED, SECONDED by Commissioner Howell, to adopt the amendments to the Bylaws of the Cape Fear Museum Board of Trustees, excluding Article XI. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the bylaws is on file at the Cape Fear Museum. COMMITTEE APPOINTMENTS: Appointment of Bethel M. Paris to the Bicycle Advisory Committee Chairman Caster announced that one vacancy needed to be filled on the Bicycle Advisory Committee and only one application has been received in the name of Bethel M. Paris. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 276 Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to appoint Bethel M. Paris to the Bicycle Advisory Committee. The term will expire May 31, 2001. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointment of Barbara Bradshaw Kidd to the Cape Fear Coast Convention and Visitors Bureau Chairman Caster announced that three vacancies needed to be filled on the Cape Fear Coast Convention and Visitors Bureau in the categories of At-Large, Lodging Representative and a Marketing, Advertising, and Public Relations Professional. Only one application has been received in the name of Barbara Bradshaw Kidd, who is serving an unexpired term as the Lodging Representative. Robert Rippy has requested that the Board not reappoint him as the At-Large Representative. Motion: Commissioner Birzenieks MOVED, SECONDED by Vice Chairman Greer, to reappoint Barbara Bradshaw Kidd to the Cape Fear Coast Convention and Visitors Bureau as the Lodging Representative. The term will expire May 31, 2002. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster requested that the Clerk to the Board re-advertise the vacancies for the At- Large Representative and the Marketing, Advertising, and Public Relations Professional. Reappointment of James E. Moore to the Insurance Advisory Committee Chairman Caster announced that one vacancy needed to be filled on the Insurance Advisory Committee and two applications have been received in the names of Tom J. Collins and James E. Moore, Jr. However, Carlton Allegood, the Executive Director of the Insurance Commission, has reported that Mr. Collins does not meet the qualification that the applicant must be an officer, owner or partner of an independent insurance agency and licensed to provide property and casualty insurance. Mr. Moore is the only qualified applicant. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to reappoint James E. Moore, Jr. to the Insurance Advisory Committee. The term will expire May 8, 2002. Upon vote, the MOTION CARRIED UNANIMOUSLY. Reappointment of Debra Clement and Trude Rennick to the Commission for Women Chairman Caster announced that two vacancies needed to be filled on the Commission for Women and seven applications were on file. He informed the Board that Debra Clement and Trude Rennick were eligible for reappointment. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Birzenieks, to reappoint Debra Clement and Trude Rennick to the Commission for Women. The terms will expire May 31, 2002. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION OF REIMBURSEMENT TO THE TOWN OF CAROLINA BEACH FOR BEACH RENOURISHMENT AND MATCHING REQUIREMENT FOR DAMAGE INCURRED BY HURRICANE BONNIE Assistant County Manager Dave Weaver reported the Town of Carolina Beach has requested that the County reimburse the Town $72,000 from the Room Occupancy Tax Fund (ROT) for emergency beach protection work for damage incurred by Hurricane Bonnie. The Port, Waterway, and Beach Commission has recommended that the County reimburse the Town $68,400, or 95%, with the Town to pay $3,600, or 5%. The Commission adopted a new policy that came about as a result of the request. No Federal or State money is available for unscheduled or emergency work and the Corps does not provide a project engineer for oversight. The members felt that at least 5% of the cost should be paid by the Town to insure some responsibility in cost control of the project. Richard Catlin, Chairman of the Port, Waterway and Beach Commission, commented on this being an unusual request because historically beach renourishment project costs are shared by the Federal and State governments and are overseen by the US Army Corps of Engineers. The Commission felt that it would be good business to continue the concept of local participation to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 277 improve public opinion on beach projects and to provide local ownership in cost control. After some consideration, the members felt that 5% of the cost would be a fair amount for the municipalities to pay. In February, the Commission received a request from the Town of Carolina Beach for reimbursement of $302,000 from Hurricane Fran damage and requested that the Town have the Corps of Engineers look over the cost. The Corps found the cost reasonable and necessary. Also, FEMA had Price Waterhouse to perform a financial audit on the project and they found the costs were reasonable and consistent with the intent of the ROT Fund. The Commission recommended full reimbursement of the cost, but felt a policy was needed to address future emergency projects that do not have Federal sponsorship and professional project oversight. The Town of Carolina Beach was told that the Commission would recommend reimbursement of 95% of the project before the emergency project was started. Chairman Caster stated that since the beginning of his appointment to the Port, Waterway and Beach Commission, there had been some discussion on whether there should be a local match on all projects. Colonel Paul Dennison, a former Commission member who had retired from the Corps, always had advocated that there should be a local match on even the Corps’ sponsored projects. His feelings were that people outside of New Hanover County objected to federal tax money being used for beach renourishment. Some local ownership would counteract some of those concerns. Current members of the Commission are very conservative and want to protect the taxpayers’ interests. Vice Chairman Greer commented that the Commissioners may want to consider how the 5% match will affect the County with the $4.2 million project on Mason’s Inlet. Commissioner Howell asked if each of the reimbursement requests will come before the Commissioners for their consideration. He felt there may be some circumstances where the Board may want to waive the 5% local match. Chairman Caster responded that the Commissioners approve all requests for reimbursements, but the Port, Waterway and Beach Commission reviews the requests and gives a recommendation to the Board for approval. Mayor Ray Rothrock of the Town of Carolina Beach spoke highly of the work performed by the Port, Waterway and Beach Commission. He explained that costs of scheduled beach renourishment projects with the Corps of Engineers have been shared with the Federal government on down to the local level. The reimbursement of the $302,768 that Carolina Beach had requested for damage by Hurricane Fran was not a scheduled Federally funded project. Five percent of $302,768 is a large amount of money for Carolina Beach, Wrightsville Beach, Kure Beach, or New Hanover County to match for beach renourishment when the Room Occupancy Tax Fund has $15 million. The purpose of the ROT Fund is to renourish the beaches for the natives and tourists to enjoy. He requested the Commissioners to provide 100% reimbursement on this project and all emergency beach projects. Commissioner Davis commented that the Commissioners should not change a policy at the same time they implement the policy. If 100% reimbursements have been made in the past, it would not be fair to implement the 5% ruling at this time. The Commissioners should consider the proposed policy before imposing the 5% ruling on future projects. Mayor Rothrock replied that representatives from Carolina Beach attended the meeting of the Port, Waterway and Beach Commission and were told that the Commission was considering the 5% local match for this particular beach project. He urged the Commissioners to fully reimburse all of these types of projects. The hotels and motels of the beach communities are collecting the tax for the purpose of beach renourishment projects. Motion: Commissioner Birzenieks MOVED, SECONDED by Commissioner Howell, to reimburse the Town of Carolina Beach the full $72,000 from the Room Occupancy Tax Fund for the emergency beach protection work. Upon vote, the MOTION CARRIED UNANIMOUSLY. In further discussion of the need to address the proposed policy, Mr. Catlin spoke of the Port, NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 278 Waterway and Beach Commission’s desire to have some project control mechanism for local emergency projects to protect the $12 million Room Occupancy Tax Fund. The Corps of Engineers has a project engineer or manager to insure that the regularly scheduled project is reasonable and necessary, which provides some protection to the County fund. However, on emergency projects there is nobody protecting the ROT fund. As Federal and State legislators are educated about the beach renourishment program, it will be important to tell them that local participation is required. If the county is hit by several hurricanes and there are several emergency projects, the ROT Funds could be severely impacted. To require the municipalities to pay from their budgets may give some control of the costs instead of carte blanche. Several requests for reimbursements were considered before formulating the proposed policy. Chairman Caster requested the Port, Waterway and Beach Commission to come back to the Commissioners with a policy recommendation for future projects and he expressed appreciation to the Commission for its diligence in protecting the beach renourishment funds. BREAK: Chairman Caster called a break from 12:10 p.m. to 12:30 p.m. MEETING RECESS TO HOLD A REGULAR MEETING OF THE NEW HANOVER COUNTY WATER AND SEWER DISTRICT Chairman Caster convened from Regular Session at 12:30 p.m. to hold a meeting of the New Hanover County Water and Sewer District. Chairman Caster reconvened to Regular Session at 12:45 p.m. DISCUSSION ON INSTALLATION OF WATER LINES IN THE WILMINGTON/HANBY BEACH AREA Assistant County Manager Weaver reported that the County has committed to constructing a sewer line system in the Wilmington/Hanby Beach area that will be annexed by the Towns of Carolina Beach and Kure Beach. The County had decided to install the sewer lines in response to a worsening public health problem caused by failing septic systems. The County has recently been requested to install the water lines at the same time that sewer lines are installed. The cost of the water lines could be added to the sewer line assessment for the individual property owners, but a mandatory assessment for water may not be as critical or justified as the assessment of sewer lines because of the health issues. Another option would be to bill the Towns of Carolina Beach and Kure Beach for the additional construction costs when annexation has occurred in those areas. Then the Towns could assess the property owners for the water lines. Installation of both lines at the same time could save the beach communities 10-20% of the cost. County Engineer Wyatt Blanchard reported that the County may be eligible to receive a wastewater grant for unsewered communities, which can defray some of the costs. The grant could pay for all of the construction cost in the streets, but not the cost of the hook up from the street to the house. The grant application is due by July 31, 1999, and could be awarded by late October. Harry Dale, Engineering Services, spoke on the Rural Center accepting grant applications for sewer projects in unsewered communities giving priorities to communities with health hazzards. If approved, the grant will pay 90% of the project or $3 million cap. Mayor Ray Rothrock of the Town of Carolina Beach spoke on the joint effort between the County and the Towns to provide the water and sewer services at the best cost for the citizens. If the grant is approved for the sewer, the money saved will go toward providing the water lines. He reported that the Town of Carolina Beach is not as far along in the annexation process as the Town of Kure Beach. Carolina Beach has passed a resolution to consider annexation of the remainder of the island that is not in Kure Beach. He stated that the Town Council would prefer the County to pay for the water line installation and assess the property owners. If not, the Town would rather be billed after the annexation is completed. The Town of Carolina Beach cannot assess property owners in the extra-territorial jurisdiction area of Wilmington Beach until the annexation has occurred, but the County can assess them when the project is completed. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 279 Mayor Betty Medlin of the Town of Kure Beach reported that the annexation plan for Kure Beach will be effective January 1, 2000. She expressed appreciation to the Board for considering both construction jobs at the same time for a cost savings and benefit for everyone. The Town of Kure Beach was in agreement that the County either assess the property owners or bill the respective towns for the cost as it desires. Motion: Chairman Caster MOVED, SECONDED by Commissioner Birzenieks, to contract with the Towns of Carolina Beach and Kure Beach for the installation of water lines at the same time as sewer lines in Wilmington/Hanby Beach area and to have the County bill the Towns upon the effective dates of their respective annexations. In further discussion of when the County should bill the Towns, Vice-Chairman Greer expressed concern that the Town of Carolina Beach may have problems with its annexation plans if the property owners do not want to be annexed because the County has already provided them with water and sewer services. Also, if the Town of Carolina Beach does not proceed with the annexation plan, the County may not ever get paid. Mayor Rothrock replied he did not think that would be a problem. Adopting the Resolution for Consideration of Annexation is the first step, and the Town plans to proceed. The sewer project is to eliminate the problem of sewage for the area. The water lines are being installed to save installation costs and to provide water service after annexation has occurred. Two new wells have been installed and another well is planned at Wilmington Beach. He did not perceive that there would be a problem providing the water. Currently, the Town has a moratorium on adding connections to the water system. Assistant County Manager Weaver pointed out the possibility of changes in the members of Town Councils or the Mayors with the regularly scheduled elections. To protect the County, it may be necessary to establish dates when the County should collect from the Towns. If January 1, 2001 is too soon for Carolina Beach, he suggested using another date besides the effective date of the annexations as an inducement to keep things on schedule. Mayor Rothrock requested that he go back to his Town Council to determine a schedule for the annexations and report back to the Commissioners an appropriate date for the billing. The next Town Council meeting will be May 27, 1999. Chairman Caster asked Mayor Medlin if the billing date of January 1, 2000 will be satisfactory for Kure Beach. Mayor Medlin responded that the annexation will be effective on that date, but the Town of Kure Beach will need additional time to pay the County. Chairman Caster stated that approval of the request should be continued until the first meeting in June to allow Mayor Rothrock to set a billing date. County Engineer Blanchard stated that the contract with Engineering Services will need to be amended to designate the starting date of the work. County Attorney Copley advised that there may be a problem with an annexation effective date binding one board while the other annexation is not effective. Also, the County may not be able to contract with the Towns based on a proposed annexation date. If the Town does not annex, they may not pay the bill if they do not have control over the area. Vice Chairman Greer suggested that the contract with the Towns of Carolina Beach and Kure Beach should be paid back on a certain date and not based on annexation. Consensus: The Commissioners tabled the approval of the installation of the water lines until the Town of Carolina Beach has provided an effective date for the billing and staff has time to work out the details. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 27 MINUTES OF REGULAR MEETING, MAY 17, 1999 PAGE 280 ADDITIONAL ITEMS Commissioner Birzenieks commented on the untrue and derogatory remarks made by Mr. Vosnock about Commissioner Greer during the Water and Sewer District Meeting. He stated that he found Commissioner Greer to be a man of honor and integrity. Vice Chairman Greer stated that he did not acknowledge Mr. Vosnock’s comments because of his disrespect to the Commissioners and the audience and he did not want to argue with the man. However, he expressed concern that the issue of sewer allocation to Pender County keeps coming up. Tim Baldwin with McKim and Creed made the original suggestion to provide the service as a regional economic development tool. Because he had consulted for Dell Labs, Vice-Chairman Greer had excused himself from the discussions and voting on the issue. He stated that it was not his idea or Dell Labs for the County to provide the sewer allocation. He wanted to resolve the issue, but he did not know how to publicly correct it. He stated for the record that he did not do anything wrong and that he would not do anything wrong. He felt the only person who could clarify the issue is Tim Baldwin. Chairman Caster apologized for making an issue of Mr. Vosnock wearing the cap in the public meeting. Discussion of Additional Funding for the Renovation Project of the Institute of Government Vice Chairman Greer stated the Institute of Government is requesting money from the counties to complete improvements of their facilities. The legislators gave some money for the renovations but an additional $4 million is needed. He asked the County Manager to place the request on the next agenda. Presentations by Engineering Firms for the Mason’s Inlet Project Assistant County Manager Weaver informed the Board that the presentation from engineering firms for the Mason Inlet project is scheduled for Friday, June 4, 1999, at 9:00 a.m. to noon, in Room 501 of the County Administration Building. A recommendation should be given to the Board at the Regular Meeting on June 7, 1999. He invited the Commissioners to hear the presentations. ADJOURNMENT Motion: Commissioner Howell MOVED, SECONDED by Vice Chairman Greer, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Caster adjourned the meeting at 1:10 p.m. Respectfully submitted, Teresa P. Elmore Deputy Clerk to the Board