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2001-09-17 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 769 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, September 17, 2001, at 9:00 A.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Chairman Ted Davis, Jr.; Vice-Chairman Robert G. Greer; Commissioner Julia Boseman; Commissioner William A. Caster; Commissioner Nancy H. Pritchett; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Davis called the meeting to order and requested everyone to pray for the families of the victims who lost their lives as a result of the cowardly acts of terrorism that occurred in New York City and Washington, D. C., on Tuesday, September 11, 2001. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Heather Koontz, Associate Pastor of the First Presbyterian Church, gave the invocation. Commissioner Caster led the audience in the Pledge of Allegiance to the Flag. Chairman Davis announced that the meeting of the Board would be recessed at 9:50 A.M. to hold a ceremony in honor of the victims and individuals who lost their lives due to the recent acts of terrorism. He requested County Manager O’Neal to comment on the ceremony. County Manager O’Neal invited everyone to attend a Prayer Service being held by the City and County at 10:00 A.M. at the replica of the Statute of Liberty next to the City Hall. Brief comments will be made by Mayor David Jones and Chairman Ted Davis, Jr. followed by comments and a prayer by Reverend Ron Wedekind, Chaplain of New Hanover Regional Medical Center. APPROVAL OF CONSENT AGENDA Chairman Davis asked if any member of the Board would like to discuss or remove a Consent Agenda Item. Commissioner Caster referenced Consent Agenda Item 3 and asked Deputy County Manager Atkinson what will happen to the Juvenile Day Reporting Center if the County does not receive the grant award. Deputy County Manager Atkinson explained that currently there is funding in the amount of $188,000 from the State Juvenile Crime Prevention Council to operate the Juvenile Day Reporting Center for the current fiscal year. If the grant is awarded, the additional funding will be used to expand services; however, if the grant is not received, the program will continue to operate as budgeted. Chairman Davis referenced Consent Agenda Item 7 and asked if these vans were needed for the Sheriff’s Department because prisoners have to be transported to other areas of the state due to overcrowding in the jail. County Manager O’Neal responded that transporting prisoners was the reason for having to purchase the vans. He advised that the County was still spending $100,000 per month to transport prisoners to other areas throughout the state. Chairman Davis referenced Consent Agenda Item 8 and asked if the bid award of $679,000 was within the budget for the new jail. Project Engineer Greg Thompson advised that the low bid was within budget for the project. Chairman Davis requested a motion to approve the Consent Agenda. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 770 Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett to approve the 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 following meetings as presented by the Clerk to the Board: Regular MeetingSeptember 4, 2001 Work SessionAugust 30, 2001 Authorization for the Juvenile Day Reporting Center to Submit a Governor’s Crime Commission Grant The Commissioners approved submission of the Governor’s Crime Commission Grant by the Juvenile Day Reporting Center in the amount of $300,000 for each of the next two years. Matching funds will be paid from Juvenile Crime Prevention Council monies. The funds will be used to support staffing and operation of a Juvenile Day Reporting Center whose goals will be to reduce detention and training school center referrals and provide an appropriate community based sanctioned option for delinquent and at-risk youth ages 10-17. Approval of New Hanover Regional Medical Center Proposed Lease The Commissioners approved a lease agreement between New Hanover Regional Medical Center and Eric Bindewald, M.D. for lease of Building C located at 5305 Wrightsville Avenue. The lease is for a period of one year at the fair market rate. Authorization for the New Hanover County Health Department to Submit a March of Dimes Grant The Commissioners authorized the Health Department to submit a March of Dimes Grant for Family Assessment Coordination in the amount of $16,500. The funds will be used to provide support services for the Family Assessment Coordinator from January 2002 through December 2002, and hire a temporary (no benefits) data entry clerk to work 20 hours a week to provide support to the Family Assessment Coordinator. Authorization for the Board of Health to Submit a March of Dimes Grant Application for Folic Acid Project The Commissioners authorized the Board of Health to submit a March of Dimes Grant application in the amount of $16,618 to continue the Folic Acid Grant Project. No County funds are required. The purpose of the Folic Acid Project is to educate women on the value of taking a multivitamin every day to prevent birth defects for women of childbearing age and for older women to protect them against colon cancer, heart disease and stroke. Authorization for the Health Department to Submit State Farm “Good Neighbor” Grant Application for SAFE KIDS Coalition The Commissioners authorized the Health Department to submit a State Farm “Good Neighbor” Grant application for the SAFE KIDS Coalition in the amount of $500. No county funds are required. Acceptance of Partnership for Children Grant for the New Hanover County Library and Approval of Associated Budget Amendment #02-0044 The Commissioners accepted the Partnership for Children Grant in the amount of $30,450 for July 1, 2001 through September 30, 2001, and approved the associated budget amendment. The funds will be used to provide Library services to area child care centers. No county funds are required. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 771 Budget Amendment #02-0044-Library-Partnership for Children ADJUSTMENTDEBITCREDIT Partnership for Children Grant$10,450 Temporary Salaries$7,165 FICA$ 682 Supplies$ 975 Auto Allowance$ 828 Books$ 100 Telephone$ 100 Printing$ 250 Repair & Maintenance-Equipment$ 350 Explanation: To increase the budget for the amount of grant awarded by the Partnership for Children. Adoption of Resolution Awarding Bid #02-0090 to Vic Bailey Ford to Purchase Five (5) Vans for the Sheriff’s Department The Commissioners adopted a resolution awarding Bid #02-0090 and Contract #02-0090 to Vic Baily Ford, the lowest responsible bidder, in the amount of $117,985 to purchase five (5) vans for the Sheriff’s Department to transport prisoners. The Chairman was authorized to execute the necessary contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVII, Page 6. A copy of the contract is on file in the Legal Department. Award of Contract #02-0069 to Caldwell Tanks, Inc. for Construction of a Water Tank for the New Jail Facility The Commissioners awarded Contract #02-0069 to Caldwell Tanks, Inc., the lowest responsible bidder, in the amount of $679,000 for construction of a 500,000 gallon water tank on the site of the County’s new jail facility. Funding for the water tank is appropriated in the Jail Budget. A copy of the contract is on file in the Legal Department. Acceptance of Tax Collection Reports Through August 31, 2001 The Commissioners accepted the following Tax Collection Reports through August 31, 2001, as submitted by the Collector of the Revenue, Patricia J. Raynor: New Hanover County Fire District New Hanover County The Tax Collection Reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXVII, Page 6. Release of Values - Tax Department The Commissioners approved Senior Citizen/Disability Exclusions for the following taxpayers: Serfass, Margarette H. $20,000 Waddell, Carrie Mae$20,000 The Commissioners released late listing penalties for the following taxpayers as this was their first offense: NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 772 Carolina Restoration$ 10.04 Crutchfield, Michael H. Sr.$ 43.61 Deco Business Strategies, LLC$ 2.00 Channel 26 Associates$ 753.99 Janix Homes, Inc.$ 2.14 Landfall Associates$ 114.17 Speciality Service, Inc.$ 4.15 Union Concrete Inc.$1,061.16 The Commissioners approved delinquent applications for exemption from the property tax for the following organizations: Apostolic TabernacleR06018-004-004-001 N.C. Coastal Land TrustR03200-002-001-000 R03200-002-018-000 Applications and letters explaining late filings are available upon request in the Tax Department. Approval of Budget Amendment #02-0046 The Commissioners approved the following budget amendment: Budget Amendment # 02-0046-Public Health/Epidemiology ADJUSTMENTDEBITCREDIT NC Center for Public Health Preparedness$20,000 Departmental Supplies$ 800 Training & Travel$ 4,700 Computer Expenses$14,500 Explanation: To budget a $20,000 grant received from the North Carolina Center for Public Health Preparedness as an incentive for participating in a project to develop a surveillance study of an emerging health problem. No County match is required. Approval of Budget Amendment #02-0047-Emergency Management The Commissioners approved the following budget amendment: ADJUSTMENTDEBITCREDIT Emergency Management Grant $420 Contracted Services $420 Explanation: To rollover unexpended grant funds from FY 2000-2001 to FY 2001-2002 Approval of Budget Amendment #02-0048-Courts/District Attorney Domestic Violence Unit The Commissioners approved the following budget amendment: ADJUSTMENTDEBITCREDIT Domestic Violence Unit Grant$11,198 Training & Travel$7,200 Computer Expenses$3,998 Explanation : To budget an $11,198 grant awarded to the Domestic Violence Unit from the North Carolina Department of Crime Control and Public Safety. The application to apply for the grant was NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 773 approved by the Commissioners on July 9, 2001. Funds will be used for domestic violence training and the purchase of two laptop computers. No County match is required. PRESENTATION OF HUBERT TARKENTON OUTSTANDING ACHIEVEMENT AWARD TO JOHN H. HUBBARD, WASTEC PLANT MANAGER County Manager O’Neal advised that Hubert Tarkenton was a founder of the North Carolina Association of Local Government Employees Safety Officials (NCALGESCO) and a leader in safety. Upon his death, the organization chose to honor him by creating the Hubert Tarkenton Award that is given to recognize an individual in local government for his or her outstanding safety achievement. It is awarded at the annual NCALGESCO conference. New Hanover County is proud to announce that Mr. John Hubbard, WASTEC Plant Manager, was the recipient of the Hubert Tarkenton Award at a ceremony held on July 25, 2001. Chairman Davis requested Mr. Hubbard to step forward. He read the inscription on the plaque and, on behalf of the Board, congratulated him for this special recognition. Mr. Hubbard expressed appreciation to the Board for the recognition and stated that this award would not have been received without assistance from 49 other employees who place a priority on safety. A round of applause was given to Mr. Hubbard. PRESENTATION OF NEW HANOVER COUNTY RETIREMENT PLAQUES County Manager O’Neal requested the following employee to step forward to receive retirement plaque: Rodney RussellWASTEC14 years of service On behalf of the Board, Chairman Davis presented a retirement plaque to Mr. Russell and expressed appreciation to him for his years of dedicated service to New Hanover County. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS: County Manager O’Neal requested the following employees to step forward to receive service awards: Denise M. JonesSocial Services 5 years of service Kathleen A. GehronLibrary 5 years of service Ronald A. CorbettSheriff’s Department10 years of service Dewey W. GrayInspections10 years of service Margaret P. SwannHealth Department10 years of service Barbette R. ColvinSocial Services10 years of service Mary B. RoushSocial Services10 years of service Libby S. SellersInspections Department15 years of service Betty MaynardSocial Services20 years of service Harry TuchmayerLibrary20 years of service On behalf of the Board, Chairman Davis presented a service award to each employee and expressed appreciation to them for their years of dedicated service to New Hanover County. RECOGNITION OF NEW EMPLOYEES County Manager O’Neal requested the following new employees to stand and be recognized: Thomas Herrera-Mishler, Airlie Gardens Doug Monroe, Fire Services Greg Kincaid, Jr, Fire Services On behalf of the Board, Chairman Davis welcomed the new employees to County government and wished them success in their new positions. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 774 INTRODUCTION OF THOMAS HERRERA-MISHLER, DIRECTOR OF AIRLIE GARDENS County Manager O’Neal introduced Mr. Thomas Herrera -Mishler, the new Director of Airlie Gardens, and presented background information on his career and accomplishments. Mr. Herrera- Mishler is a 1986 graduate of the University of Michigan with a Masters Degree in Landscape Architecture and Regional Planning with a specialization in urban design. He worked with the Pennsylvania Horticultural Society's Philadelphia Green outreach program for five years. He served as director of the Awbury Arboretum and founded a unique adult job training program in horticulture for homeless men and women. He then established a for-profit subsidiary that hired graduates of the program to work in horticulture throughout the City of Philadelphia. As director of Toledo Botanical Garden in Ohio, he worked with the Board and Staff to prepare a new strategic plan and a revised master plan, started an Endowment Committee, and initiated a major new fall family festival. His most recent work was with the firm of Poggemeyr Design Associates in Bowling Green, Ohio, where he served as landscape architect and planner. He is married to the Honorable Mercedes Herrera de Mishler, former Consul of Costa Rica to the City of Philadelphia, and they have three daughters. In concluding his remarks, County Manager O’Neal stated that Staff was looking forward to working with Mr. Herrera-Mishler in carrying out the mission of developing Airlie Gardens into a world-class garden. On behalf of the Board, Chairman Davis welcomed Mr. Herrera-Mishler to New Hanover County and wished him success in his fund raising efforts. AUTHORIZATION TO MOVE FORWARD WITH THE FEDERAL POINT FIRE STATION Mr. Ken Newell, a partner of Stewart-Cooper-Newell Architects, presented background information on the firm and reported that the first stage of the project was to meet with County Staff and Fire officials to develop a written program on what was desired in the new Federal Point Fire Station. After the first round of programming, it was decided to reduce the program to stay within budget. The following presentation was made: Fire Station: The Fire Station will be comprised of the following components: •Two (2) drive-in vehicle bays to accommodate four (4) plus emergency vehicles •Vehicle support spaces including self-contained breathing apparatus, decontamination, shop and mezzanine storage •Four (4) Offices •A Community/Training Room that will hold a capacity of 60 to 100 people depending upon the configuration of the setting •Kitchen to serve the operations and Community/Training Room •Day Room •3 Bunk Rooms with a 10 plus capacity •Locker Room, Shower Room, and Exercise Room •Total Space - 12,632 square feet Site Plan: A chart was presented of the site plan showing one main entry and one main exit. The entry will lead to a small parking lot at the front of the fire station and loop into a driveway at the rear of the building for staff parking as well as a drive through for vehicles coming through the building. Trees and vegetation will be saved on the site to better protect the environment. Floor Plan and Design Plan: A chart was presented on the floor plan showing an attractive well- functioning design to provide a smooth operation of the fire station. A chart was presented showing the earth tone color of material that will be used on the outside of the building which is maintenance free. Color schemes were shown on the inside of the building with hard tile used on the floors to reduce maintenance. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 775 Cost of Construction: 12,632 sq. ft. @ $95 per sq. ft. $1,200,000 Removal of hazardous materials on site 15,000 Demolition of old buildings on site 10,000 Total$1,225,000 In concluding the presentation, Mr. Newell advised that the design of the building would easily accommodate additions for other uses in the future. He offered to answer questions. Commissioner Caster asked if any discussion had occurred about placing an EMS vehicle at the Federal Point Fire Station. Fire Services Administrator Donnie Hall responded that prior to beginning the design of the building, he met with the Director of EMS at New Hanover Regional Medical Center and discussed the possibility of co-housing an EMS ambulance in the facility. At that time, the EMS Director did not have plans for increasing the service in this area; however, there is enough space inside the building to accommodate an ambulance during an emergency event. Chairman Davis requested County Manager O’Neal to comment on the funding for the construction project. County Manager O’Neal responded that funding will come from the Fire District revenue generated by the fire tax. After hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to authorize Staff to proceed with the Federal Point Fire Station project and move forward with the bidding process for construction of the building. PRESENTATION AND UPDATE ON FORTHCOMING DOMESTIC TERRORISM PLANNING AND TRAINING PROGRAMS Emergency Management Director Dan Summers reported that emergency managers nationwide are moving forward to develop community plans associated with domestic terrorism. New Hanover County is ahead of many communities in crisis planning with an active Emergency Operations Center that has successfully responded to hurricane events and trained for nuclear power plant response. There is a good infrastructure in place to develop and prepare a response to domestic terrorism. Since New Hanover County has been chosen by FEMA as a pilot community to participate as guests in domestic terrorism planning and training programs scheduled for January 28 through February 1, 2002 in Mount Weather, Virginia, authorization is needed from the Board to attend the programs. New Hanover County has been pre-approved for 65 participants and the only cost involved will be a $150 meal charge per person. The Commissioners are being requested to authorize the Emergency Management Department to proceed to work with the N. C. Emergency Management Department and FEMA to acquire a domestic terrorism planning and training grant. Since the N. C. Emergency Management Department is still focusing on the Hurricane Floyd recovery efforts, the grant process and release of funds will be slow; however, authorization is needed from the Board to apply for the grant. If the grant is approved and the County participates in the program, there will be a person in the office as a contractor for a period of 24 to 36 months to administer the program. In closing, Director Summers spoke on this being an excellent training opportunity and requested the Board to consider allowing the Emergency Management Department to participate in the program. Commissioner Pritchett pointed out that New Hanover County was considered as a participant in the FEMA planning and training programs because the County has an outstanding NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 776 Emergency Management Department with a solid organization in place to handle emergency events. Hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Pritchett MOVED, SECONDED by Commissioner Caster, to authorize the County to participate in the FEMA domestic terrorism planning and training programs and apply for the grant. Upon vote, the MOTION CARRIED UNANIMOUSLY. Discussion was held on the appointment of two Commissioners to attend the training programs. Since a number of the Commissioners showed an interest in attending the programs, the Board agreed to further discuss this matter at the next meeting. On behalf of the Board, Chairman Davis expressed appreciation to Director Summers, representatives of numerous agencies, and County employees who left their work to open up the Emergency Operations Center and answer questions from the public after the terrorists attack. RECOGNITION OF STUDENTS FROM MYRTLE GROVE PRESBYTERIAN CHURCH CHRISTIAN SCHOOL Chairman Davis recognized students attending the meeting from the Myrtle Grove Presbyterian Church Christian School and their teacher, Ms. Hanna Ivey. He expressed appreciation to them for attending the meeting and learning about the way that County business is conducted. ADDITIONAL ITEMS Discussion of Scheduled Work Sessions Chairman Davis referenced the Work Session scheduled on September 20, 2001, for discussion of consolidation and noted that an appeal has been filed by the Concerned Citizens for Neighborhood Preservation Group regarding development of a 427 unit condominium project at the corner of River Road and Veterans Park Drive approved by the Technical Review Committee. Due to the need for the Commissioners to meet with the Planning Board before hearing the appeal on October 1, he suggested postponing the Consolidation Work Session until October 15, 2001, at 1:00 P.M. following the regular morning meeting, and holding a Work Session with the Planning Board on September 20, 2001 at 6:00 P.M. Commissioner Caster requested the Board to schedule the meeting at 5:00 P.M. instead of 6:00 P.M. because of another event scheduled that evening. Consensus: After discussion, it was the consensus of the Board to hold a Work Session with the Planning Board on September 20, 2001, at 5:00 P.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, and schedule a Consolidation Work Session on October 15, 2001, at 1:00 P.M. following the regular meeting of the Board in the Assembly Room. County Manager O’Neal advised that the Board received an invitation from the N. C. Department of Transportation to meet with the Board of County Commissioners and City Council to hear a presentation on the Smith Creek Parkway Project. The meeting has been scheduled for October 11, 2001, at 5:00 P.M. in the Assembly Room of the New Hanover County Courthouse. The meeting will be televised and County Commissioners and Councilmembers will sit on the first row of seats so they can see the monitors. No action will be required. MEETING CONVENED FROM REGULAR SESSION TO ATTEND A PRAYER SERVICE IN HONOR OF PERSONS WHO LOST THEIR LIVES IN THE RECENT ACTS OF TERRORISM Chairman Davis convened from Regular Session at10:00 A.M. to attend the Prayer Service. Chairman Davis reconvened to Regular Session at 10:30 P.M. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 777 AUTHORIZATION TO ENTER INTO A CONTRACT WITH BMS ARCHITECTS TO DEVELOP A BID PACKAGE TO REMOVE FAILING STUCCO ON THE CAPE FEAR MUSEUM BUILDING ADDITION Mr. F. L. Meier, Chairman of the Museum Board of Trustees, requested the Board to consider entering into a contract with BMS Architects at a cost of $38,000 to develop a bid package and oversee the construction project required to remove the failing stucco facade on the 1990 addition to the Museum building. He advised that a contract for services with David Lisle Architects was terminated because of the following reasons: •Mr. Lisle developed an initial bid package. It was bid inappropriately and the contract could not be awarded. •When the initial bid package was reviewed again, the Museum Board of Trustees and County Engineer agreed that a new package should be prepared to remove the stucco followed by re- cladding as a primary bid with re-cladding over the stucco as an alternate bid. Mr. Lisle felt that this went beyond the terms of his original bid and requested additional money. •The contract with David Lisle Architects was then terminated. The firm was paid $16,000 of the original $27,000 contract to cover the services completed by the architect. BMS Architects was requested to submit a contract for services at a cost of $38,000 to provide the following services: •As required by the State, BMS Architects will completely re-write the bid documents and thoroughly review the recommendations. •BMS Architects will have on-site presence to insure that replacement sections fit the existing structure and protect the integrity of on-going public operations of the Museum. •BMS recommendations will include removal of existing stucco, addressing any damages to the structural framework, installing a barrier-wall system and new facade. The bid package will include removal of stucco and replacing with an alternate material. •The recommendations will provide a longer life and lower maintenance for the building. •BMS Architects will specify inspection procedures with property management to help extend the life of the building. After meeting with the Architect and reviewing other projects that BMS Architects have managed for New Hanover County, the Cape Fear Museum Board of Trustees and County Engineer agreed that BMS Architects was the best qualified firm to provide services that will restore the Museum building. Cost for services and repair are still projected to fall within the budgeted amount of $350,000. Chairman Davis referenced the $16,000 paid to David Lisle Architects to terminate their contract and requested an explanation of the work performed to justify the payment. Mr. Meier explained that Mr. Lisle examined the failing stucco, determined the material to be used to address the problem, drew renderings of how the building would look when completed, and prepared a bid packet. This payment of $16,000 to Mr. Lisle was a reasonable charge for the work performed. Commissioner Caster requested an explanation of why the bid was not appropriate. Mr. Herb McKim, President of BMS, explained that State Statutes and the N. C. Board of Architects control and enforce the law pertaining to architects. North Carolina Statutes are clear on the procedures to follow when one architect replaces another architect, and BMS has been NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 778 careful to follow the steps outlined. Since the County owns the documents prepared by Lisle Architects, there are measurements and parts of the documents that can be used. The $16,000 paid to Lisle Architects is a reasonable amount to pay for the work performed. Chairman Davis requested a motion. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Pritchett, to enter into a contract with BMS Architects at a cost of $38,000 to develop a bid package and oversee the construction project to repair the failing stucco facade on the 1990 addition to the Cape Fear Museum building. The Chairman was authorized to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract is on file in the Legal Department. PROPOSAL TO INCREASE ADMISSIONS FOR CAPE FEAR MUSEUM Mr. F. L. Meier, Chairman of the Cape Fear Museum Board of Trustees, spoke on the need to generate more revenue since the overall Museum budget was reduced by 20% for FY 2001-2002, and he requested the Board to consider adopting the following changes to the current fee structure: •Museum admission fees be increased for adults from $4.00 to $5.00; for seniors (over 65) and students (12 years and older with identification) from $3.00 to $4.00; and allow the fee for children (3-11 years) to remain at $1.00. •Free days for New Hanover County residents be reserved for the first Sunday of the month plus an annual county-wide unity and appreciation day. •Strategically-planned promotional discounting campaigns be implemented. •Admission fees be the entry cost for museum-sponsored programs, lectures or workshops to offset costs associated with an active, dynamic public education program. •That these resolves be implemented when 2001: A Dinosaur Odyssey ends on October 28, 2001, to simplify public messaging. •That no changes be made in the current fee structure for curriculum-based school programs In closing, Mr. Meier offered to answer questions. Chairman Davis expressed concern for increasing the fees and reducing the two free days to one day per month for residents of the County to visit the Museum. Museum Director Ruth Haas advised that the challenge of the Museum is to continue to offer quality programs within the reduced budget. In order to meet this goal, additional revenue is needed. She noted many museums throughout the country are increasing admissions because of the economic condition of the country. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to approve the admission proposal as submitted by the Cape Fear Museum Board of Trustees. Commissioner Pritchett requested the Board to vote on this item as two separate issues: (1) increase of admission fees; and (2) change in free days. WITHDREW HIS MOTION. Vice-Chairman Greer Chairman Davis called for a motion to approve the increase in admission fees. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to approve the increase in admission fees. Upon vote, the MOTION CARRIED 3 to 2. Chairman Davis and Commissioner Pritchett voted in opposition. Chairman Davis called for a motion to change the number of free days. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 779 Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to reduce the two free days to one day per month for County residents to visit the Museum. Upon vote, the MOTION CARRIED by a 4 to 1 vote. Chairman Davis voted in opposition. CONSIDERATION OF RESOLUTION AWARDING CONTRACT #01-0339 TO CENTRAL CAROLINA DISPOSAL FOR SCRAP TIRE DISPOSAL Director of Environmental Management, Ray Church, advised that the Department of Environmental Management is responsible for the administration of the Scrap Tire Program in New Hanover County. The department recently submitted a Request for Proposals (RFP), with the following options received: Option I: Require all tires to be delivered to the landfill. $78.00 per ton Option II: Continue to provide trailers at major retailers. $83.00 per ton Option III: Allow retailers to either rent a trailer or bring the tires to the landfill. $78.00 per ton $135.00 per month for trailer rental paid by retailer In concluding the presentation, Director Church advised that Staff recommends award of the contract using Option III to allow the County to continue paying $78.00 per ton to avoid an increase of approximately $15,000 to provide trailers. He stated that some retailers were present and would like to comment. Chairman Davis spoke on understanding that for the past several years, New Hanover County has absorbed the cost of providing storage trailers at thirteen (13) locations and at the landfill. If Option III is adopted, this means the County will not continue to provide trailers to retailers free of charge, thereby, saving approximately $15,000 per year. Director Church explained that charging $135.00 per month for use of a trailer is reasonable because to deliver 1,000 tires (the number tires held in a trailer) to the landfill at $1.00 per tire would cost $1,000.00. He advised that the contractual arrangement would be between the tire retailer and the scrap tire contractor, and the County’s cost would remain $78.00 per ton. Vice-Chairman Greer spoke on not disagreeing with the suggestion made by Director Church but noted there is another side to the issue. When the consumer purchases tires, a 2% disposal fee is charged. The 2% fee is collected by the State and sent back to counties to cover the cost of tire disposal. Due to the number of tires disposed of in the New Hanover County because of its population, the 2% fee does not cover the cost of tire disposal. If the trailers are not provided by the County, the tire retailers can carry all old tires to the County Landfill and the employees will be responsible for loading the trailers, which would be a costly process for the County. Director Church noted that the statements made by Vice-Chairman Greer were not quite correct. He stated when small retailers deliver tires to the landfill, the tires are directly loaded onto the trailers. The County is not involved with reloading the tires. Vice-Chairman Greer asked Director Church how much money was received from the State last year for tire disposal. Director Church responded that approximately $220,000 was collected last year. He noted that a bill is before the N. C. General Assembly about some inequities in the Scrap Tire Disposal Program. Some counties are profiting from the program with other counties suffering losses. If the bill is enacted, it will equalize payments and ensure that no county is making a profit. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 780 Chairman Davis asked if any tire retailers would like to comment. Mr. John Allen, speaking on behalf of the tire dealers in New Hanover County, disagreed with the claim that the present tire disposal program is costing New Hanover County money. He advised when the tire bill was enacted, there were five to seven million tires illegally dumped in North Carolina with two million tires found in Pender County. The revenue collected from the 2% disposal fee is a 68/27/5 mix with 68% returned to counties, 27% transferred to the State Fund, and 5% for administrative costs. When the bill was first enacted, the 27% of revenue transferred to the State was used to clean up illegally dumped tires throughout the State. Once the clean up was completed, the 27% was returned to counties through State grants. When checking with the State, it was found that New Hanover County received 100% reimbursement for the last grant. Approximately five years ago, New Hanover County was the only county that was not contracting with Central Carolina Tire Disposal for collection and disposal of scrap tires generated in the County. At that time the disposal rate was $83.00 per ton when other counties were charging $78.00 per ton. The contractor was carrying the tires to Central Carolina for disposal and making a profit of $5.00 per ton. Currently, the tire dealers collect old tires from service stations and car dealers when they sell new tires as well as from customers. The provision of trailers at the 13 locations is a convenience for the citizens and tire dealers. He requested the Board to consider Option II at a disposal rate of $83.00 per ton. Commissioner Pritchett asked if Option II is approved at $83.00 per ton, will the County be able to continue to provide the trailers and make up the deficit. Director Church explained that New Hanover County is not allowed to assess a tipping fee for scrap tires. The County is dependent upon reimbursement of the disposal fee with any deficit being made up through award of the State grants. Notice has just been received from the State informing counties that grant requests are exceeding funding in the State Scrap Tire Program; therefore, counties charging over $75.00 per ton may not receive 100% reimbursement of grants submitted. This means that if New Hanover County charges $83.00 per ton, the County may not receive the additional grant funding to make up the $15,000 deficit. Vice-Chairman Greer spoke on the Scrap Tire Program being set up to avoid illegal dumping of tires and stated that the program has worked well. When comparing $83.00 per ton to $78.00 per ton plus the charge for trailers at the estimated tonnage to be received, it will cost the tire dealers $21,060; whereas, if the County pays this charge, the cost will be $15,135. The tire dealers will be paying an extra $6,000, and there is no law to prevent dealers from dumping all tires at the landfill which would be extremely costly for the County. After hearing no further comments, Chairman Davis called for a motion. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to rescind the resolution approved on August 20, 2001 and award the contract under Option II at $83.00 per ton to Central Carolina Tire Disposal for collection, transportation, processing, and management of scrap tires generated in New Hanover County. Upon vote, the MOTION CARRIED 3 to 2. Chairman Davis and Commissioner Pritchett voted in opposition. PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION APPROVING INSTALLMENT FINANCING OF CONSTRUCTION/RENOVATION/EQUIPPING OF JAIL/LEC/LIBRARY & PARKING FACILITIES AND APPROVING FINDINGS IN CONNECTION WITH SERIES 2001 CERTIFICATES OF PARTICIPATION Chairman Davis opened the Public Hearing for the purpose of considering whether the New Hanover County Board of Commissioners should approve a proposed installment financing agreement for the jail, law enforcement, parking and library facilities. The notice of the Public Hearing was published on September 6, 2001, in the Wilmington Morning Star. Chairman Davis asked if anyone in the audience would like to speak in favor of the proposed installment financing. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 781 After hearing no comments, Chairman Davis asked if anyone in the audience would like to speak in opposition to the proposed installment financing. Ms. Pat Meyer, a resident of 1322 Grove Point Road, spoke on the following concerns and noted that questions had been asked regarding the proposed installment financing with no information received: •No clearly defined explanation of how the Certificates of Participation will be used, and how the debt will be paid. •When financing millions of dollars for County projects, the issue should be placed before the voters. •The bond counsel of LeBoeuf, Lamb, Greene & MacRae is not located in the State of North Carolina. This law firm is only certified in the states of Florida and New York. According to North Carolina General Statutes, the installment financing must be approved by the State Treasurer in order for the Certificates of Participation to be approved. County Manager O’Neal explained to Ms. Meyer that any transactions occurring with installment financing are directed, monitored, and supervised by the State of North Carolina, not by New Hanover County. The firm of LeBoeuf, Lamb, Greene & MacRae is approved to conduct business in North Carolina, and all transactions are finalized through authorization from the State Treasurer and Local Government Commission, which is the entity that oversees any form of installment financing or bond issues. Staff would never enter into any type of financing without approval from the Local Government Commission. He informed Ms. Meyer that every attempt had been made to respond to her questions, but she did not accept the information provided. Staff has followed all requirements outlined by the Local Government Commission, State Treasurer, and State Statutes for the proposed installment financing. Ms. Meyer advised that she had not received information concerning the process to be followed for issuing Certificates of Participation. She asked how the County’s bond counsel could work in the State of North Carolina without a Certificate of Authority. Deputy County Manager Atkinson explained that a Certificate of Authority is not required in North Carolina. LeBoeuf, Lamb, Greene & MacRae and the firm of Brown and Wood are two law firms from New York that have operated in the State of North Carolina for years. When the economy collapsed in 1927, the North Carolina Local Government Commission was established and these bond companies were the only law firms operating in North Carolina because of their expertise in financing. In concluding her remarks, Ms. Meyer stated that her questions were not answered and noted that no information was received on how the County paid the attorneys from Durham, N. C., or how the current bond counsel was being paid. She requested the Board of County Commissioners to take care of its citizens and consider other needs of the County, such as drainage and storm water projects, when spending millions of dollars on other projects. After hearing no other comments in opposition, Chairman Davis asked the Clerk to the Board if she had received any written comments. Clerk to the Board, Lucie F. Harrell, responded that no written comments had been received. Chairman Davis closed the Public Hearing. Chairman Davis called for a motion to adopt the resolution. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Caster, to adopt a resolution approving the installment financing contract in the amount of $61,000,000 for the construction, renovation, and equipping of the Jail, Law Enforcement Center, Parking and Library NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 782 Facilities and making certain findings and determinations in connection therewith. These findings are as follows: (a) such contract is necessary or expedient to the County; (b) such proposed contract, under current circumstances, is preferable to the bond issue of the County for the same purpose; (c) the sums estimated to fall due under such contract are adequate and not excessive for its proposed purpose; (d) the County’s debt management procedures and policies are good and its debt will continue to be managed in strict compliance with the law; (e) any increase in taxes necessary to meet the sums estimated to fall due under the contract will not be excessive; and (f) the County is not in default regarding any of its debt service obligations. Upon vote, the MOTION CARRIED 4 to 1. Chairman Davis voted in opposition. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVII, Page 7. CONSIDERATION OF CONSERVATION MEASURES FOR THE MASON INLET RELOCATION PROJECT Assistant County Manager Dave Weaver advised that the U.S. Fish and Wildlife Service (FWS) issued an amended Biological Opinion on September 5, 2001, that outlines conservation measures that must be met by the County in order to obtain a permit to perform the Mason Inlet Relocation Project. The amended Biological Opinion reflects changes that are favorable to the project as a result of discussion over several months. The primary change is removal of the monitoring requirement for the piping plover on the Lea/Hutaff Island and Masonboro Island resulting in a savings of $110,000 per year to the County. The Corps of Engineers is in the process of completing its conditional permit and the accompanying Environmental Assessment (EA), and the Corps needs commitment from the County to implement the actions to satisfy the Biological Opinion requirements. It should be noted that the Corps may require additional mitigation measures before the final permit is issued. County Staff has made it clear that the County does not intend to commit further resources to accomplish further mitigation actions that may be expensive or result in further permitting delays. Discussion followed on the cost of maintenance dredging of Mason Inlet. Ms. Karen Ericson explained that the cost of maintenance dredging would be contingent upon the volume of sand removed. It has been projected that 350,000 cubic yards of sand will be removed and sold to Figure Eight Island and Wrightsville Beach in future years; therefore, the County may receive some reimbursement for the dredging maintenance costs. Without the sand being sold, the estimated cost every three years is $2.3 million. Chairman Davis requested an explanation of Condition 23 regarding the amount of money to purchase a construction easement over the Hutaff property during maintenance dredging events and why the County is being asked to purchase the remaining 30 acres on Masonboro Island as listed under Condition 26. Assistant County Manager Weaver explained that the Hutaff easement would cost $55,000 each year that the maintenance dredging occurs; however, this figure has been included in the total project cost to be assessed to benefitted property owners. The request to purchase 30 acres on Masonboro Island is a major concern of the U. S. Fish and Wildlife Service in serving as a habitat to protect nesting patterns of the piping plovers during the migratory period. The projected cost for purchasing the 30 acres is $400,000 which will be paid by the N.C. Clean Water Trust Fund. Chairman Davis expressed concern for having to purchase property on Masonboro Island to move forward with the Mason Inlet Relocation Project and stated that $400,000 from the N. C. Clean Water Trust Fund could be used to clean out estuarine creeks or for other water quality projects. Commissioner Caster stressed the importance of the public understanding that all costs for the Mason Inlet Relocation Project will be paid by the benefitted 1,100 property owners over a three- year period at 7% interest. The only cost that will not be paid by the property owners is the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 783 purchase of 30 acres on Masonboro Island which should be paid by the N. C. Clean Water Trust Fund. Chairman Davis noted that Mr. Frank Pinkston was present and would like to speak. Mr. Frank Pinkston, speaking on behalf of the 1,044 members of the Mason Inlet Preservation Group, stated with approval of the mitigation actions in the amendment to the Biological Opinion, the Corps of Engineers should quickly issue a final Environmental Assessment and conditional use permit for dredging in November. This means that the project will start before the December 31, 2001, deadline for removing the sandbag revetment. He expressed appreciation to Assistant County Manager Dave Weaver and Staff for an outstanding job in negotiating a considerable reduction in the mitigation requirements. He assured the Commissioners that the coalition of Homeowner Associations comprised of 1,044 benefitted property owners was firmly behind the project and understand that the overall cost has increased from the original estimate. He requested the Board to approve the mitigation requirements in the amended Biological Opinion. Mr. Ned Barclay, representing the Figure “8" Homeowners Association, informed the Board that the Association has agreed with portions of the project that involve Figure Eight Island. Vice-Chairman Greer expressed concern for dealing with the government bureaucracy for approximately seven years when the benefitted property owners have been willing to pay the entire project at no cost to the taxpayers. After hearing no further comments, Chairman Davis called for a motion. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Greer, to approve the conservation measures in the Biological Opinion for the Mason Inlet Relocation Project and approve the purchase of 30 acres on Masonboro Island at a cost not to exceed $400,000. Upon vote, the MOTION CARRIED 3 to 2. Chairman Davis and Commissioner Boseman voted in opposition. A copy of the amended Biological Opinion is on file in the Engineering Department. COMMITTEE APPOINTMENTS Appointments to the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board Chairman Davis announced that four vacancies needed to be filled on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. Deputy County Manager Atkinson explained that four applicants could be appointed to any one of the categories listed on the agenda sheet. Chairman Davis opened the floor to receive nominations. Commissioner Caster nominated William P. Hewel. The nomination was seconded Vice- Chairman Greer. Vice-Chairman Greer nominated Cheryl Denkins. The nomination was seconded by Commissioner Caster. Commissioner Pritchett nominated Reggie Mathis to fill the unexpired term of Nephitearya Shantel Bailey. Vice-Chairman Greer seconded the nomination. Commissioner Caster nominated Frankie Roberts. The nomination was seconded by Commissioner Boseman. Vice-Chairman Greer nominated Harold B. King for reappointment. The nomination was seconded by Commissioner Pritchett. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 784 Commissioner Bosemannominated Gloria C. Crist. The nomination was seconded by Commissioner Pritchett. Vice-Chairman Greer nominated Kim Williford. The nomination was seconded by Commissioner Caster. After hearing no further nominations, Chairman Davis declared the nominations closed. Chairman Davis called for a vote on the nomination of Gloria Crist Vote: The Board voted 3 to 2 to appoint Gloria Crist to serve on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. Commissioner Boseman , Commissioner Caster, and Chairman Davis voted in favor of the appointment. Chairman Davis called for a vote on the nomination of Cheryl Denkins. Vote: The Board voted 3 to 2 to appoint Cheryl Denkins to the Juvenile Crime Prevention Council/ Criminal Justice Partnership Board. Chairman Davis, Vice-Chairman Greer, and Commissioner Boseman voted in favor. Chairman Davis called for a vote on William P. Hewel. Vote: The Board voted 3 to 2 to appoint William P. Hewel to serve on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. Vice-Chairman Greer, Commissioner Boseman, and Commissioner Castervoted in favor of the appointment. Chairman Davis called for a vote on the reappointment of Harold B. King. Vote:voted unanimously to reappoint Harold B. King The Board to serve a three-year term on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board with the term to expire September 30, 2004. Chairman Davis called for a vote on the nomination of Kim Williford. Vote: The Board voted 2 to 3 not to appoint Kim Williford. Vice-Chairman Greer and Commissioner Pritchett voted in favor. Chairman Davis called for a vote on the nomination of Reggie Mathis. Vote:voted unanimously to appoint Reggie Mathis The Board to fill an unexpired term of Nephitearya Shantel Bailey to expire September 2003. Chairman Davis called for a vote on the appointment of Frankie Roberts. Vote:voted 4 to 1 to appoint Frankie Roberts The Board to serve a three-year term on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board with the term to expire September 30, 2004. Chairman Davis, Vice-Chairman Greer, Commissioner Boseman, and Commissioner Caster voted in favor. Due to a tie vote, Chairman Davis requested the Board to re-vote on the appointment of Gloria C. Crist, Cheryl Denkins, and William Hewel. Commissioner Boseman spoke on the amount of work given by Gloria Crist to work with youth activities, particularly drama programs, and stated she would be an asset to the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. Vice-Chairman Greer spoke on the experience of Cheryl Denkins in working with at-risk NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 785 youth and families and stated that she attends the meetings of the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board and feels the community has been left out of the process. Commissioner Caster spoke on Mr. Hewel being active in the Dispute Settlement Center and stated he has experience in crisis intervention and anger management which would be an excellent background for this board. Chairman Davis called for a re-vote on the appointment of William P. Hewel. Re-Vote:voted 4 to 1 to appoint William P. Hewel The Board to serve a three-year term on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board with the term to expire September 30, 2004. Chairman Davis, Vice-Chairman Greer, Commissioner Boseman, and Commissioner Caster voted in favor. Chairman Davis called for a re-vote on the appointment of Gloria Crist. Re-Vote:voted 3 to 2 to appoint Gloria Crist The Board to fill the unexpired term of Erik Lindstrom on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. The term will expire September 30, 2003. Chairman Davis, Commissioner Boseman, and Commissioner Caster voted in favor. Chairman Davis called for a re-vote on the appointment of Cheryl Denkins. Re-Vote: The Board voted 2 to 3 to appoint Cheryl Denkins to service on the Juvenile Crime Prevention Council/Criminal Justice Partnership Advisory Board. Vice-Chairman Greer and Commissioner Pritchett voted in favor. Appointments to the New Hanover Regional Medical Center Board of Trustees Chairman Davis announced that five vacancies (one unexpired term and four full terms) needed to be filled on the New Hanover Regional Medical Center Board of Trustees. He reported that nineteen applications were received with one applicant, F. Spruill Thompson, desiring to be reappointed. Chairman Davis opened the floor to receive nominations. Commissioner Boseman nominated Ms. Patricia L. Leonard for appointment. The nomination was seconded by Vice-Chairman Greer. Chairman Davis nominated Nancy S. Marks. The nomination was seconded by Commissioner Pritchett. Commissioner Caster nominated F. Maston White, Jr. The nomination was seconded by Commissioner Boseman. Vice-Chairman Greer nominated William D. Wright. The nomination was seconded by Commissioner Caster. Commissioner Pritchett nominated Richard J. Nasca, M.D. The nomination did not receive a second. Commissioner Caster nominated F. Spruill Thompson for reappointment. The nomination was seconded by Vice-Chairman Greer. Commissioner Pritchett nominated James E. Vann. The nomination did not receive a second. Vice-Chairman Greer nominated Gayle Price Van Velsor. The nomination was seconded by Commissioner Caster. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 786 Vice-Chairman Greer nominated John Coble. The nomination was seconded by Commissioner Caster. Commissioner Pritchett nominated Larry Clark. The nomination did not receive a second. Chairman Davis nominated Frank Taylor. The nomination did not receive a second. There being no further nominations, Chairman Davis declared the nominations closed. Chairman Davis called for a vote on the nomination of John Coble. Vote: The Board voted 2 to 3 not to appoint John Coble to serve on the New Hanover Regional Medical Center Board of Trustees. Vice-Chairman Greer and Commissioner Caster voted in favor. Chairman Davis called for a vote on the nomination of Patricia L. Leonard. Vote:voted unanimously to appoint Patricia L. Leonard The Board to serve a three-year term on the New Hanover Regional Medical Center Board of Trustees with the term to expire September 30, 2004. Chairman Davis called for a vote on the appointment of Nancy Marks. Vote:voted 4 to 1 to appoint Nancy Marks The Board to serve a three-year term on the New Hanover Regional Medical Center Board of Trustees with the term to expire September 30, 2004. Chairman Davis, Vice-Chairman Greer, Commissioner Boseman, and Commissioner Pritchett voted in favor. Chairman Davis called for a vote on the nomination to reappoint F. Spruill Thompson. Vote:voted 4 to 1 to reappoint F. Spruill Thompson The Board to serve a three-year term on the New Hanover Regional Medical Center Board of Trustees to expire September 30, 2004. Chairman Davis, Vice-Chairman Greer, Commissioner Boseman, and Commissioner Pritchett voted in favor. Chairman Davis called for a vote on the appointment of Gayle PriceVan Velsor. Vote:voted 3 to 2 to appoint Gayle Price Van Velsor The Board to fill the unexpired term of Richard L. McGraw on the New Hanover Regional Medical Center Board of Trustees to expire on September 30, 2003. Chairman Davis, Vice-Chairman Greer, and Commissioner Caster voted in favor. Chairman Davis called for a vote on the appointment of F. Maston White, Jr. Vote: The Board voted 2 to 3 not to appoint F. Maston White, Jr. to serve on the New Hanover Regional Medical Center Board of Trustees. Commissioner Boseman and Commissioner Caster voted in favor. Chairman Davis called for a vote on the appointment of William D. Wright. Vote:voted unanimously to appoint William D. Wright The Board to serve on the New Hanover Regional Medical Center Board of Trustees with the term to expire September 30, 2004. MEETING RECESSED TO HOLD A REGULAR MEETING OF THE NEW HANOVER COUNTY WATER AND SEWER DISTRICT Chairman Davis convened from Regular Session at 12:59 P.M. to hold a meeting of the New Hanover County Water and Sewer District. Chairman Davis reconvened to Regular Session at 1:15 P.M. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 787 NON-AGENDA ITEMS Chairman Davis announced that time had been reserved to allow the public to present an item that was not listed on the Regular Agenda. He requested all persons speaking to limit their remarks to three minutes. No items were presented. ADDITIONAL ITEMS BY COUNTY COMMISSIONERS Request to Fill Vacant Administrative Coordinator Position in the Emergency Management Department Commissioner Pritchett referenced the current acts of terrorism worldwide and she requested the Board to consider lifting the freeze on the Administrative Coordinator position in Emergency Management Department and request Director Summers to begin recruiting for the position. County Manager O’Neal expressed appreciation to Ms. Pritchett for the suggestion and he requested the Board to allow him to present a comprehensive status report on vacant positions at the next meeting scheduled for October 1, 2001, before making a decision. After discussion of budget constraints, the Board requested the County Manager to present a status report on vacant positions at the October 1, 2001 meeting. Discussion of a Field Trip to Look at a Potential Parks Site County Manager O’Neal informed the Board that the N. C. Department of Transportation (NCDOT) has offered the County a tract of land comprised of approximately 90 acres containing a lake. The property would be an excellent site for recreational purposes; however, with current budget constraints, this will be a difficult decision for the Board. He requested the Board to schedule a field trip to visit the site before rendering a decision After further discussion of the need to see the property, County Manager O’Neal requested the Commissioners to contact Ms. Carol Barclay in the Manager’s Office to arrange for a convenient time. Invitation from the U. S. Department of Army Inviting the Board of County Commissioners to Attend a Ceremony Honoring New Hanover County Fire and Emergency Units Chairman Davis advised that an invitation has been received from Major General Kenneth L. Privratsky, Commanding General, Military Traffic Management Command, requesting the Board of County Commissioners to attend a Ceremony on September 25, 2001 at 6:30 P.M. in the Southport Community Center to recognize New Hanover County and other responding units for their outstanding efforts in fighting the engine room fire on board the MV SSG EDWARD A. CARTER. He requested the Commissioners to attend this ceremony if possible. Ratification of Resolution Regarding the Terrorists Attacks on America Chairman Davis requested the Board to ratify a resolution adopted on September 13, 2001, condemning the cowardly action of terrorists attacks on the World Trade Center and Pentagon. Motion: Vice-Chairman Greer MOVED, SECONDED by Commissioner Boseman, to ratify the resolution. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXVII, Page 6. ADJOURNMENT Chairman Davis called for a motion to adjourn the meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 788 Motion: Commissioner Caster MOVED, SECONDED by Commissioner Boseman, to adjourn the meeting. Upon vote the MOTION CARRIED UNANIMOUSLY. Chairman Davis adjourned the meeting at 1:30 P.M. Respectfully Submitted, Lucie F. Harrell Clerk to the Board MINUTES OF WORK SESSION ON RENEWAL OF TIME WARNER FRANCHISE ASSEMBLY The New Hanover County Board of Commissioners held a Work Session on Monday, September 17, 2001, at 2:00 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 announced that the purpose of the Work Session was to discuss renewal of the franchise with AOL-Time Warner. He welcomed Mr. Harold Seagle, the attorney representing AOL-Time Warner, Mr. Bill Greene, General Manager of AOL- Time Warner, and Mr. Bob Sepe, the County’s cable television consultant of Action Audits, LLC. He turned the meeting over to Mr. Sepe for a presentation. Mr. Sepe presented the following opinions and observations on the proposed franchise renewal contract: Franchise Term: AOL-Time Warner is seeking a 15-year term. The standard term for local government is 10 years unless substantial concessions are offered by the cable operator such as capital grants to purchase Public Education Government (PEG) television equipment or a commitment to wire the entire county. Service Area: AOL-Time Warner deleted language requiring services extensions into areas wired by another cable operator. Earlier this year, Time Warner offered language exempting the Company from serving areas wired by another cable operator. Cable operators prefer to carve up an area to establish defacto monopolies where they are guaranteed access to 100% of the households. Lack of Competition: The lack of competition is one of the reasons why the County has high cable rates. In Lexington, N. C., there is head-to-head competition and the rates offered by AOL-Time- Warner are 25% lower. Cable Service Extension: AOL-Time Warner added cost share language to the contract to avoid being compelled to extend its lines into any area wired by another cable operator. Auditing: The County specified cable operators to bear the cost to audit franchise fee revenues when the underpayment is greater than 3%. AOL-Time Warner added language raising the threshold to 10% and limiting expense reimbursement to $1,000. The County paid Lewis & Associates substantially more than $12,000 to perform the last franchise fee audit. The 10% offer by AOL-Time Warner is high, and the percentage should be reduced to 1 ½%. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 789 Level Playing Field Fallacy: AOL-Time Warner added language to bind actions of future County Boards that will practically guarantee the cable operator a defacto monopoly by: •Requiring virtually identical franchises to be granted to any new entrant by the County, such as a third cable operator. •Compelling the third entrant to serve more than 50% of the market, which may or may not be appropriate. Monopoly Guarantee: The playing field language requested by AOL-Time Warner will prohibit future County Boards from assessing future cable-telecommunication needs and drafting a contract to meet those needs. This language also prohibits the following: •Prevents a future County Board from awarding new franchises with different service terms and conditions. • Bestows upon AOL-Time Warner and Charter defacto monopolies. •Prevents the Board from acting in the public interest to secure competition, have a choice between two or more operators, provide a responsive service and lower rates. Public Education Government (PEG) Channels: PEG channels are the electronic green space. In 1983, the U. S. Congress granted local governments authority to require cable operators to provide PEG channels because: •The cable operator selects the program networks people are allowed to view. •PEG channels are where independent voices essential to preserve our democratic republic are found. AOL-Time Warner limited the County to two channels; whereas, in other areas they have offered as many as six channels. The two-channel limit means that no new channels will be available for the following purposes: •To establish a Public Safety/EMS training channel. •To establish a Public access forum. •To grant the Educational Partnership a second channel. Limits on PEG Channel Use: AOL-Time Warner added language to the contract to prohibit telecasts of any PEG access program delivered via satellite, such as NASA, Classic Arts Showcase, and FEMA related programs. The added language means that no local channel or future channel can provide this type of programming. This section of the contract should be removed. AOL-Time Warner deleted language authorizing the County to designate non-profit organizations to operate PEG channels. PEG channels belong to local governments, and the County Board has authority to allow an entity to program a channel. Since the cable operator is the first amendment speaker and controls all voices on the cable system, the County has an opportunity to set aside channels for public purposes known as PEG access channels. The County needs to decide on how many future PEG channels should be reserved. PEG Capital Funding: AOL-Time Warner deleted language enabling the County to levy a modest subscriber fee to fund the purchase of PEG telecast equipment. Time Warner has not offered any philanthropic grants to assist an organization with the purchase of equipment, which would be appropriate. The Cable Bogeyman: Cable operators tell local government officials that any requirement to provide or collect PEG funds from subscribers will force the company to increase prices. The fee NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 790 is itemized on the cable bill; however, AOL-Time Warner during the last quarter had a 42% pre-tax profit margin. The cost of competing cable providers determines cable television rates. AOL-Time Warner knows that purchase decisions are made on the basis of total cost; therefore, it is unlikely that the total bill to the subscriber will substantially change. Institutional Network Provisions (I-NET Provisions): The U. S. Congress granted local governments authority to use the cable television network for public purposes because it is part of the compensation package. By using the I-NET Provisions, it is possible for the County to save thousands of dollars by replacing telco (telephone) circuits with inexpensive I-NET connections. AOL-Time Warner deleted this language from the contract, and it should be restored. Transfer of Control: AOL-Time Warner added language to the contract granting AOL-Time Warner the authority to transfer ownership of the Company to an affiliate without first securing the permission of the County Board. Language was also added to the contract granting AOL-Time Warner to sell up to 50% of the Company without the necessity to secure the consent of the County Board. This allows Time Warner to sell 24% during the current year, 26% the next year, and 30% the third year which is over 50%, but no single transaction exceeds 50%. Transfer Process: AOL-Time Warner deleted language from the contract to allow the Board to deny any proposed franchise transfer, whether 24%, 30%, or 50%, without demanding that the Company first cure any existing deficiencies. In order to protect the public interest, this is the reason why the County Board should have the opportunity to approve the transfer. Interconnection: AOL-Time Warner deleted language compelling the interconnection of PEG channels with adjacent systems. The purpose of the interconnection language in the contract was to move PEG access channels around so the programs can be seen by all viewers. Currently, there is a problem with getting the Educational Partnership Channel on the Charter Communications System. The language deleted by AOL-Time Warner needs to remain in the contract to resolve this problem. Letter of Credit vs. Performance Bond: Language was added to the contract granting AOL-Time Warner the sole discretion on whether to furnish the County with a $50,000 Performance Bond or a Letter of Credit. Substituting a Performance Bond for a Letter of Credit subverts the County’s ability to levy and collect liquidated damage penalties should AOL-Time Warner or its successor breach the terms and conditions of the contract. The franchise contract being renewed was originally granted to Jones Intercable, which became Time Warner Cable, and now AOL-Time Warner. It is easier to collect liquidated damages under a Letter of Credit than a Performance Bond. Reporting Requirements: AOL-Time Warner inserted language in the contract to grant the option of submitting a written annual financial report setting forth revenues by category. This condition seriously impairs the ability of the County to perform franchise fee audits. In concluding the presentation, Mr. Sepe noted that the proposed franchise renewal contract submitted by AOL-Time Warner continues to manifest some of the same problems faced by the County Board in the past such as the lack of competition, high cable rates, inability to resolve customer problems, the ability to secure Road Runner service in a non-Time Warner area, and the public’s desire for a Public Access Channel. When a franchise contract is being renewed, it is an ideal time for the County to use language to address these issues. Chairman Davis expressed appreciation to Mr. Sepe for the presentation and asked if any member of the Board would like to address questions to Mr. Sepe. Vice-Chairman Greer referenced the last statement regarding the inability of the County to resolve customer problems and stated he could not remember any time that AOL-Time Warner had not resolved complaints received about the cable service. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 791 Mr. Sepe advised that he could not identify any problems, but the Board must be aware of the need to incorporate language that will address any future cable operators because AOL-Time Warner could be purchased by another company. County Attorney Copley advised that discussion has been held with Mr. Harold Seagle and Mr. Bill Greene regarding language that would be mutually agreeable, such as the overbuild which specifies a certain number of homes with a commitment to a 2-year contract, or payment of a rate sufficient to assist the cable operator with the investment made to the area. The language in the contract was prepared by Mr. Seagle, but this language also assures the County that if one cable operator goes out of business, AOL-Time Warner will be required to serve those areas. Another issue discussed was the Letter of Credit vs. a Performance Bond, and it was felt that the County could work better with a Performance Bond since this process is familiar to county governments. Many of the concerns regarding the PEG Channels and inter-connectivity can be resolved, particularly with Road Runner. In concluding her remarks, County Attorney Copley advised that Mr. Sepe was hired as the County’s cable consultant to allow the County to know what requests can be made. AOL-Time Warner has a business to operate and Mr. Harold Seagle would like to respond to the presentation made by Mr. Sepe. The Board will have to decide on what services should be provided to the cable subscribers and the cost of these services to the subscribers. Information Technology Director Bill Clontz referenced the I-NET Provisions and advised that the Information Technology (IT) Department was interested in improving data networks to all County facilities. Currently, these facilities are not equally served because of locations. Downtown buildings are connected by fiber connections at fast speeds. The County has been able to run cable to the Health Department, Social Services, Property Management and Animal Control located on Division Drive at fast speeds; however, there are some areas where the County cannot afford to run cable such as the Environmental Management Department. In these areas, the service must be purchased. Discussion has been held with AOL-Time Warner officials to see if a way can be found to integrate the County’s current data network with services provided by AOL-Time Warner to enhance the data network for County use. By working with Mr. Mike Connelly , a Time Warner Engineer, three specific areas have been found where Time Warner could assist the County to provide a consistent service to all County locations. The IT Department has identified the following items to consider when renewing the franchise contract with AOL-Time Warner: •Under served County departments where services are being purchased from Bell South that are less than what is being provided to other County departments, including 911 services and fire departments. •Phasing out purchased services and moving all services to AOL-Time Warner to save money. •Provision of an alternate access to the Internet by AOL-Time Warner. Currently, the County has one pathway to the Internet, which is purchased from the State of North Carolina. This pathway has proven to be adequate until recent times, particularly during hurricane events. An alternate access would allow the County to separate traffic on the State Internet line. In concluding his remarks, Director Clontz advised that drawings and access requirements were presented to Mr. Connelly and it is felt from a technical point of view, AOL-Time Warner would not have a problem with providing these services; however, this would have to be agreed upon by the company officials. Mr. Harold Seagle spoke on this not being an adversary procedure and stated that most of the franchise negotiations had been discussed with County Attorney Copley because Mr. Sepe was not in town. He presented the following concerns: 1. Why is AOL-Time Warner concerned about preserving some parts of the franchise so the cost to the subscriber is not elevated? The reason is because cable television is not nearly NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 792 as monopolistic as described by Mr. Sepe. This is a competitive business with Satellite TV, Direct TV, and independent operators. A minor increase in the rate creates complaints by the subscribers. AOL-Time Warner is a business that needs to make a profit and provide quality service. The County benefits from the franchise fee and has the ability to control cable operators. 2. Why is AOL-Time Warner concerned about overbuild? Competition is a good thing, but when there is an area 14 miles away being served by another cable company and a few customers are dissatisfied and want AOL-Time Warner to provide service, it is not financially possible to spend thousands of dollars running cable to serve only a few customers that pay $12 to $15 per month. In an effort to accommodate customers in these areas, the following language has been included in the contract: If AOL-Time Warner is asked to provide service to a subscriber in an area being served by another provider, Time Warner will go into the area and if the cost exceeds the current Time Warner penetration rate, the subscriber will share in the cost of extending the cable. This language will cost AOL-Timer Warner money, but the company feels this effort is worthwhile. 3. Why is AOL-Time Warner concerned about proposed regulations regarding new cable providers? Mr. Sepe suggested that the County should provide an incentive for any new operator to come into the County and compete? Realistically, there could be a small pocket in the County concentrated with 75% of the population with a few people living on the outer edge at the end of streets. If a cable operator receives the benefit of serving the populated area, the operator should have to serve the remainder of the County. This is the purpose of using the homes per mile limitation. If another company is permitted to come into the County to provide competition and the County allows the operator to serve this small populated area requiring a small amount of cable line, and the existing cable operator is required to provide service to rural areas, this would create financial problems for that operator. This type of requirement does not make sense, and it would put the existing cable company out of business. 4. Why is AOL-Time Warner concerned about the number of PEG Channels? When reviewing the number of PEG Channels, there is a government access channel used by the City of Wilmington, and there is no need to discuss the situation that occurred regarding broadcasting meetings of the County Commissioners for a number of reasons; however, AOL- Time Warner could worked out an agreement for shared use of the channel by the City and County at a reduced rate to individuals with basic service. This did not happen, but Time Warner has a separate channel. There are currently four PEG Channels in this area which is a sufficient number. 5. How does AOL-Time Warner feel about capital support for public education? The original franchise provides a funding mechanism whereby the County could require AOL-Time Warner to collect money and pass the cost to the subscribers. AOL-Time Warner believes that this mechanism is sufficient, and there is no need to have an independent funding mechanism in the franchise because of the need to balance the competition. 6. What is the purpose of the I-Net Provisions? AOL-Time Warner has been working with the County to provide an alternative to the I-Net which will not require an independent dedicated fiber wire to connect County buildings. This alternative will use the Road Runner base to connect County buildings and facilities, and it can be done in a cost-efficient manner without any cost to the County or subscribers before the franchise is renewed. 7. Why is AOL-Time Warner concerned about the interconnection of PEG channels with adjacent systems? This language was removed by AOL-Time Warner because this suggestion is impractical and bordering on an impossibility since channel numbers are not the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 28 REGULAR MEETING AND WORK SESSION, SEPTEMBER 17, 2001 PAGE 793 same for Time Warner and Charter Communications. Both companies would have to realign the equipment at a tremendous cost to provide interconnection between the two cable operators. This is not a reasonable request. 8. Why is AOL-Time Warner concerned about the statement regarding the transfer of ownership? After reading the franchise, it does not say that AOL-Time Warner can be transferred without the consent of the Board of County Commissioners. There is a 50% limitation which is negotiable. If the number needs to be adjusted, this issue can be discussed with the County Attorney. In concluding the presentation, Mr. Seagle offered to work with the County Attorney to negotiate areas of concern. After a lengthy discussion on the complexity of the information presented, the Board felt that a comparison of the issues between Time Warner and the County’s cable consultant, Bob Sepe, should be forwarded to the Commissioners for further review. County Attorney Copley noted that Attorney Harold Seagle had just indicated that he felt some satisfactory language could be worked out on the issues if some directives were provided by the Board. After further discussion, the Board presented the following directives: •10-year franchise instead of 15 years. •Select a figure between 3% to 10% for the franchise fee audit. •5 to 6 PEG channels through negotiation of a threshold use requirement. •Change the language added to allow Time Warner to sell up to 50% of the company without consent from the Board of County Commissioners. This percentage should be reduced. •Use the Performance Bond requirement instead of a Letter of Credit. •Work out language regarding Road Runner service. •Work out overbuild language for cable service extensions. After further discussion, Chairman Davis directed County Attorney Copley, Bob Sepe, Bill Greene, and Attorney Seagle to prepare a draft document to be presented to the Board at a future meeting. On behalf of the Board, Chairman Davis expressed appreciation to Mr. Sepe, Mr. Seagle, and Mr. Greene for the informative presentations. Chairman Davis adjourned the meeting at 4:45 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board