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1998-09-21 Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 WORK SESSION, SEPTEMBER 21, 1998 PAGE 712 ASSEMBLY The New Hanover County Board of Commissioners held a Work Session on Monday, September 21, 1998, at 2:00 p.m. in the New Hanover County Administration Building, Room 501, 320 Chestnut Street, Wilmington, North Carolina. Members present were Commissioner Buzz Birzenieks; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Commissioner Davis was absent. Chairman Caster called the meeting to order, and he advised that the purpose of the meeting was to discuss the grant application to the N. C. Clean Water Management Trust Fund. He requested the Assistant Planning Director, Patrick Lowe, to make the presentation. Mr. Lowe reported since 1992, New Hanover County has performed a number of studies on water quality in conjunction with the Marine Resources Center and UNCW. When applying for the grant, staff was requested to outline what New Hanover County is currently doing in the area of water quality and how this grant would help to implement a better program. The grant would assist the County with addressing water quality and stormwater management as well as purchase Airlie Gardens. The water quality objectives will be to deal with fecal coliform and shellfish closures. Initially staff will focus on Bradley Creek and Howe Creek. Emphasis will be placed on improving the water quality in both creeks. The Trust Fund is willing to assist with the acquisition of Airlie Gardens if the County can show how the grant funding can be used to implement an overall program that will improve water quality. If the grant is awarded, the program will cover a five-year period, and the cost to New Hanover County will be $11,580,000 over five years. Funding will be used to purchase Airlie Gardens and to set aside money for the establishment of a foundation to maintain and manage the gardens. It is felt that the proposed application will be received more favorably by the Trust Fund since water quality improvements will be made. Attorney Camilla M. Herlevich, Director of the N. C. Coastal Land Trust, advised that after discussion with staff members representing the Trust Fund, this agency would like to see a comprehensive program for all tidal creeks. Vice-Chairman Greer objected to obligating large sums of money for different projects as listed in Sections 4 and 5 of the grant application. He said he thought the Board had decided it would not be possible to acquire expensive waterfront property for water quality improvement programs or large pieces of land for detention ponds. He expressed concern for the taxpayers being burdened with a huge amount of debt in future years. Attorney Herlevich said the County could cover itself by limiting the grant not to exceed a certain number. Assistant County Manager Weaver said he envisioned there would be a willing seller when the County considers acquiring any waterfront property. With reference to a regional detention pond, UNCW has a campus site selected and future plans to design a detention pond according to environmental standards that can be used as a teaching laboratory for the Marine Science program. This would be at no cost to New Hanover County. A lengthy discussion centered around the possibility of presenting a bond referendum in the amount of $40-$50 million to the voters for the County to acquire greenspace. Commissioner Birzenieks asked if the grant application could be written to allow the proceeds from the bond issue to apply toward future debt. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 WORK SESSION, SEPTEMBER 21, 1998 PAGE 713 Assistant County Manager Weaver replied that the bond referendum could be referenced in the grant application. He explained that after the first year, the County would receive grant money from the State on a reimbursable basis. The Advisory Board would be responsible for submitting a specific project to the State. If approved by the N. C. Clean Water Management Trust Fund, the County would be reimbursed at a later date. Discussion ensued on whether the designated tracts of land for acquisition would have to be outlined in the bond referendum. After a lengthy discussion on the need to inform and educate the public, the Board concluded that specific land areas should be identified when requesting the voters to approve a bond issue of this size. Assistant County Manager Weaver stressed the importance of everyone understanding that the key component of the grant application is the $11,580,000 commitment by New Hanover County over a period of five years for water quality improvements. He advised that New Hanover County was already funding thousands of dollars in water quality projects; therefore, consideration should be given to the projects that can be funded from the $11,580,000 in terms of leveraging additional State money in lieu of not applying for the grant. Vice-Chairman Greer asked why the County funding allocated in Sections 4 and 5 for FY 1999-2000 was twice as much as the funding allocated in the remaining 3 years. Mr. Lowe responded that funding in the amount of $2,000,000 has been allocated for the following projects: ? Water Projects for Bradley Creek and Howe Creek$1,000,000 ? Buffer acquisitions $1,000,000 Vice-Chairman Greer asked if this figure could be reduced to $500,000 for each project. Assistant County Manager Weaver responded that the local commitment could be reduced by $1,000,000. Vice-Chairman Greer expressed concern for the County becoming involved with these projects which sound extremely good at the current time; however, in three to five years, these projects could become quite costly. It would be better to be more conservative money-wise in lieu of incurring future debt that cannot be paid by the County. For example, five years from now, will the County be able to say that the tidal creeks are open to shellfishing, or will there still be a problem with high bacteria counts that have been caused by animal waste, such as the incident that occurred at Bald Head Island with racoons. He stressed the importance of recognizing that some of the projects will not be perfect. Assistant County Manager Weaver referenced Section 6 and stated the money used for the dredging project at Futch Creek had been a real success. It is hoped that other successful projects can be used to improve water quality in the tidal creeks. Also, the use of large regional detention ponds can be effective in reducing not only sediment but nutrients and fecal coliform pollution. During the past year, the County has funded work on five creeks: Hewlett Creek, Howe Creek, Bradley Creek, Pages Creek and Futch Creek; however, no study or work has begun on Whiskey Creek, Barnard Creek and Smith Creek. Vice-Chairman Greer spoke on the numerous calls received about flooding after a heavy rainfall, and he stated unfortunately people do not care where the water goes as long as it does not flood their homes. Discussion followed on whether an Advisory Board was needed. Assistant County Manager Weaver explained that some type of supervision beyond County staff would be needed. Attorney Herlevich advised that the Lower Cape Fear River Program Advisory Board had been extraordinarily resourceful in finding money and opening doors to assist with the project. She NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 WORK SESSION, SEPTEMBER 21, 1998 PAGE 714 recommended appointing one or two landowners as well as an elected official to show the County’s commitment to the program. Further discussion followed on the funding needed to establish a foundation to maintain and operate Airlie Gardens. Assistant County Manager Weaver explained that the $11,580,000 received in the first year should be adequate to acquire Airlie Gardens and to establish the initial endowment foundation. Regardless of whether the County purchases Airlie Gardens outright or receives a grant to assist with the purchase, money will be needed initially to repair and equip the Gardens into an acceptable condition. The establishment of a foundation is crucial to carrying out long-term capital additions that will make this an exceptional attraction. With a strong foundation to ensure proper management and maintenance, Airlie Gardens should become self-sufficient. Vice-Chairman Greer asked if the grant application could be based on the water improvement projects for Howe Creek and Bradley Creek, the UNCW detention pond project; and the water management project for Duck Haven. Assistant County Manager Weaver responded that the first application submitted to the N. C. Clean Water Management Trust Fund was based on these projects; however, the Trust Fund wanted a more comprehensive approach. He suggested including the UNCW project, Duck Haven project, and developing watershed and floodplain studies that are already underway. Attorney Herlevich suggested including language in the grant proposal to reference the bond referendum and clarify that New Hanover County will not acquire private land unless there is a willing seller. This language will reduce the County’s commitment. Chairman Caster said he was not sure he understood all the intricacies of the grant proposal, and he expressed concern for having to increase taxes by two cents per year for five years. County Manager O’Neal explained that if $9,500,000 is used to purchase Airlie Gardens, the remaining $2,200,000 will be spread out over the next five years at $400,000 per year which should not require a tax increase. As of this date, the County has already spent $510,000 for water quality projects. Discussion centered around whether the County could accept or refuse the grant award. Attorney Herlevich explained that if the grant is awarded, New Hanover County has the right to accept or refuse the award. However, since New Hanover County is one of the fastest growing population centers on the coast with water quality problems already identified in the tidal creeks, the County should look comprehensively at the watersheds and all tidal creeks to maintain an acceptable water quality in the entire area. Vice-Chairman Greer commented on County funds already allocated for tidal creek studies in cooperation with UNCW, and he stated it appears that New Hanover County is being penalized for funding these studies. He, again, reiterated the burden that could be placed on the taxpayers in the next three to five years if the County commits to the proposed projects. County Manager O’Neal reported the grant application can be revised to reflect the County’s commitment to existing projects rather than new projects. Also, the Land Use Plan Update is another commitment by the County to better address environmentally sensitive areas. Chairman Caster commented on the complexity of the issues, and he recommended that the proposed grant application be amended to include the following items: ? Projects already funded by the County, such as the Pages Creek Drainage Study. ? The County will acquire waterfront property contingent upon a willing seller. ? Include the UNCW Retention Pond site. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 WORK SESSION, SEPTEMBER 21, 1998 PAGE 715 ? Refer to a $40-$50 million bond referendum. ? Reduce the $2,000,000 committed for buffer acquisitions and the water quality enhancements for Bradley Creek and Howe Creek. ? Include the Duck Haven water management project. After discussion of the fact that the grant application must be submitted no later than October 1, 1998, it was agreed to schedule a Special Meeting on October 1, 1998, at 10:00 a.m. to consider adopting a resolution to submit a revised grant application to the N. C. Clean Water Management Trust Fund. ADJOURNMENT Chairman Caster adjourned the Work Session at 3:20 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board