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1998-11-21 Board Retreat NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 785 ASSEMBLY The New Hanover County Board of Commissioners held a retreat on Saturday, November 21, 1998, at 10:00 a.m. in the New Hanover County Extension Service Auditorium, Wilmington, North Carolina. Members present were: Commissioner Buzz Birzenieks; Commissioner Ted Davis, Jr.; Commissioner Charles R. Howell; Vice-Chairman Robert G. Greer; Chairman William A. Caster; Deputy County Manager, Andrew J. Atkinson; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Caster called the meeting to order and stated the purpose of the retreat was to discuss major projects so direction could be provided to staff for preparation of the FY 1999-2000 budget. DISCUSSION ON AIRLIE GARDENS PURCHASE Dr. C. Bruce Williams, Director of Cooperative Extension, presented the following vision for Airlie Gardens: ? World Class Historic Garden: The designer is from Germany and he was involved with the garden design of Biltmore Estates. ? Education Center of Excellence: The project should be developed to teach and use the latest technology. It will be a multi-purpose educational center. ? Revenue Center for County Tourism: In Asheville, the Biltmore Estates is a major attraction. The same will be true for Airlie Gardens. The first six months will require extensive work. The gardens will need basic infrastructure, roads, irrigation systems, and buildings. There is basically no equipment. It will be necessary to upgrade and purchase equipment to maintain the gardens. The buildings on the property were constructed at various times during the history of Airlie Gardens to store maintenance equipment. These buildings are located at the edge of the flood plain, and during Hurricane Fran, the buildings were flooded. This poses the question of whether maintenance facilities should be placed in a flood plain area. Also, facilities will have to be constructed for admissions and ticket sales. A marketing plan has been developed. Airlie Gardens is expected to be a revenue generator from the sale of tickets that will cover the operating budget within three to five years. Marketing will be a vital tool in making this become a reality. A time line was presented to show how Airlie Gardens can be opened during the Azalea Festival in April 1999. The first step will be to develop a transition team to identify and perform the following tasks: (1) locate all infrastructure on the property; (2) clear roads and evaluate parking; (3) install fencing and security; (4) perform a site evaluation; (5) perform an overall assessment of the property; (6) develop a history of Airlie Gardens; (7) implement the marketing plan; (8) construct temporary bathrooms; and (9) decide on signage. Vice-Chairman Greer requested the Board to decide how the $2,000,000 received from the N. C. Clean Water Management Trust Fund should be expended. Should the Board consider using the $2,000,000 for the endowment only, or should portions of the money be spent to perform the initial work? At this point, the County has not actually purchased Airlie Gardens; therefore, would it be wise to start the work until an agreement has been signed. Discussion followed on the status of the final buy and sell agreement. County Attorney Copley advised that the final agreement would be signed once some minor details were resolved. Vice-Chairman Greer expressed concern for approving a lease agreement with St. James Episcopal Church for only 30 years. He recommended extending the number of years because the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 786 Church could decide not to renew the lease in 30 years and construct some type of facility that would not be compatible with Airlie Gardens. County Attorney Copley advised the Board that New Hanover County could not tell the Church how to use its property in the future. The buy and sell agreement with the Corbett family provides that once the property dispute over the six acres of land is resolved by the Corbett family and the Church, any property gained by the Corbett family will have to be deeded to New Hanover County. She said this issue could be in litigation for years. She explained that the County’s agreement with St. James Episcopal Church is for the County to maintain the property around the Church so it will not harm the appearance of Airlie Gardens. In summarizing the details, County Attorney Copley reported the buy and sell agreement could be closed without the land dispute being settled. The County is protected by a conservation easement on the County’s property that runs with the land and will provide egress and ingress across the Church property perpetually. A lengthy discussion followed on the composition of the Airlie Foundation Board as proposed: 1 - County Commissioner or staff designee 2 - Members of the Corbett family 1 - Member of the Coastal Land Trust 1 - Representative of UNCW, the Chancellor 1 - Representative of Cape Fear Community College, the President 1 - Dean of N. C. State Agriculture and Life Sciences College or designee 2 - At-large members appointed by the Board of County Commissioners Commissioner Birzenieks expressed concern for the composition of the proposed Foundation Board. He advised that the purpose of the Airlie Foundation Board will be to manage endowment funds and raise funds to make Airlie Gardens a world class garden. The composition of the Board should be individuals who are willing to go out and make the necessary contacts with businesses and corporations to raise $100,000 and $200,000 donations. It is questionable that the Chancellor of UNCW would have time to devote to raising money. Director Williams emphasized the importance of appointing a representative from the N. C. State Agriculture and Life Sciences College, and Ms. Camilla M. Herlevich, Director of the N. C. Coastal Land Trust, to serve on the Foundation Board because of the help they can provide in development of the gardens. Further discussion followed on the purpose of the Foundation Board. Director Williams informed the Commissioners that the Foundation Board would perform three functions: (1) maintain the focus of Airlie Gardens as a historic gardens perpetually; (2) distribute the endowment funds on an annual basis for capital projects now and in the future; and (3) act as the oversight body for the “Friends of Airlie” which will be an organization sponsored by the Foundation Board to recruit volunteers and raise funds. The Foundation Board will meet only once or twice a year to review the entire operation of the gardens. Finance Director, Bruce Shell, asked if the Foundation Board would actually distribute the money or serve as an advisory board to the Board of County Commissioners with distribution of the money by the County Commissioners. Director Williams responded that he had recommended establishment of a non-profit Foundation Board that would distribute the funds in the endowment. It would be an autonomous group that would have authority to distribute the funds. Further discussion followed on the number of members from the Corbett family that should serve on the Foundation Board. County Attorney Copley advised that initially the Corbett family NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 787 had requested at least three members; however, after further discussion of the issue, the family has agreed to appointment of two members. Director Williams informed the Board that in conversations with the Corbett family, there was a great deal of concern about the legacy of the family remaining affiliated with the Foundation Board. Vice-Chairman Greer advised that he was satisfied with the composition of the Foundation Board, but he felt the Board of County Commissioners should have more flexibility in the appointment process. County Attorney Copley said the Board could appoint all at-large members with no specified categories, or language could be incorporated into the agreement to state that if the Board so desires, the number and categories of membership could be changed. Commissioner Birzenieks asked why the Foundation Board was being restricted to only nine members. Director Williams responded the original intent was for this group to be a board with an endowment. There are several types of foundations. The Arboretum Foundation basically raises funds and disburses those funds for various projects. A working foundation is usually comprised of 30 members. From an organizational point of view, it is a tremendous task to work with a large board; therefore, it was recommended to establish an endowed foundation board with the endowment coming from the N. C. Clean Water Management Trust. The foundation board would manage and distribute those funds. To have two fund raising boards, the Arboretum Foundation and Airlie Foundation, could present additional issues that would have to be addressed. Commissioner Birzenieks, again, expressed concern for limiting the Foundation Board to nine members, and he recommended appointing one member of the Corbett family to serve on the Foundation Board with the remaining positions left open to provide time for the Commissioners to think about who should fill the positions. County Attorney Copley advised that composition of the Foundation Board does not have to be determined at this time. She suggested placing this item on an agenda after the closing date of January 11, 1999. The Board generally agreed to appoint one member of the Corbett family to serve on the Foundation Board. Discussion was held on the Corbett family memorial to be placed in Airlie Gardens. County Attorney Copley advised that the Corbett family has requested a small plaque in honor of their grandparents to be placed near the lake where the swans swim. Commissioner Davis commented on discussing this issue with Mr. Leslie Boney, a local architect, who suggested placing a historical plaque about the Corbett family on the site, and he requested the Commissioners to consider this recommendation so the public can be informed about the development of Airlie Gardens. Discussion followed on the request by the Corbett family to provide 1,000 free passes. Vice- Chairman Greer and Commissioner Birzenieks spoke in opposition to providing free passes. The Board agreed to deny this request. County Attorney Copley informed the Board that she would contact the Corbett family and discuss the following items: ? One member of the Corbett Family will become a member of the Foundation Board. ? No free passes will be issued. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 788 ? A historic memorial plaque will be placed in the desired location. ? Proceed with the interim agreement for improvements. A lengthy discussion was held on how the initial work would be performed. Director Williams reported that contact has been made with a well qualified individual, Neal Patrick, to serve as the transition manager. Mr. Patrick has worked at the White House for five years under President Bush and President Clinton. He is an extremely well organized individual who will be able to assess the inventory and coordinate the prison labor program to clean roads and clean ditches so the initial work can begin. If Airlie Gardens is to be opened by the Azalea Festival, many issues and items must be addressed. Mr. Patrick is capable of coordinating and carrying out this initiative. Vice-Chairman Greer asked County Attorney Copley how much of the N. C. Clean Water Management Trust Fund grant could be used for Airlie Gardens. County Attorney Copley responded that $2,000,000 was available for the endowment and Airlie Gardens. She suggested placing an item on the agenda for the second meeting in January after the papers have been signed and the property has been transferred to New Hanover County on January 11, 1999, to discuss and review the following items: (1)The composition and number of members to be appointed to serve on the Airlie Gardens Foundation Board. (2)Determine the amount of money to be placed in the endowment fund. (3)Hear a presentation from the Finance Director on investments. The Board agreed for this item to be placed on the agenda for Tuesday, January 19, 1999. Vice-Chairman Greer requested an explanation on how the initial start-up costs would be funded. Deputy County Manager Atkinson reported that in order for Airlie Gardens to be opened by the Azalea Festival, an operating budget of $500,000 will be needed for the remainder of the year. He presented the following Capital Improvement projects: Maintenance Building$ 100,000 Public Bathrooms 100,000 Irrigation System 200,000 Roads/Parking Lot Development 500,000 Engineering Analysis 200,000 Project Development Plan 50,000 Ornamental/Chainlink Fence 361,200 Site Preparation 50,000 Total Cost $1,561,200 Deputy County Manager Atkinson explained that the proposed budget statement reflects the cost of the land and closing at $11,000,000 plus the $1,561,200 in Capital Projects for a total cost of $12,561,200 as the amount to be financed. The means the County will have the money available to pay for the capital projects as they come due, such as the ornamental fencing. Commissioner Birzenieks stressed the importance of having Airlie Gardens opened by the Azalea Festival because of the revenue that can be generated during the spring. He recommended taking the necessary actions to allow Director Williams to start moving with the initial capital projects. Finance Director Shell informed the Board that eight banks had expressed an interest in the NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 789 Request for Proposals submitted for the short-term financing of the Airlie Gardens project. The closing date is scheduled for January 11, 1999, which means a Public Hearing will have to be held on December 7, 1998 for installment financing. At that time, the budget amendment can be approved by the Board to allow Director Williams to begin clearing the road, cleaning the ditches, and installing the fence. Discussion followed on the new positions that will be needed. Director Williams presented and explained the following staff plan for the Cooperative Extension Service: Positions Added: Assistant Director1 Administrative Assistant II1 Volunteer Coordinator1 Administrative Secretary1 Superintendent1 Foreman2 Groundskeepers7 Positions Deleted: Administrative assistant I-1 Arboretum Coordinator-1 Horticultural Technician -1 Additional Personnel Needed11 Director Williams advised that after discussion with the County Manager, it had been decided for the Superintendent to live in the cottage on Airlie Road to serve as a security presence on the site. Further discussion followed on the need to hire a well-qualified Superintendent. Director Williams informed the Board that a qualified golf Superintendent in this area receives a six figure salary, which creates a problem in trying to recruit qualified persons. Allowing the employee to live in the cottage as an additional perk will assist the County in recruiting qualified applicants. The American Association of Arboretums and County Parks has a list of qualified persons who desire to live on site. After further discussion, the Board agreed to authorize the Finance Director to prepare a formal budget for the Airlie Gardens project, present a packet on short-term financing and the new positions needed at the first or second meeting in January. Commissioner Birzenieks requested the members of the Board and staff to think about the goals, mission, and membership of the Airlie Foundation Board so this item can be discussed at a regular meeting in January. Director Williams asked if he could proceed with preparing the agreement for the security fencing. County Attorney Copley responded that once the Buy and Sell Agreement is signed on January 11, 1999, the fencing agreement can be adopted. Discussion was held on how to attract volunteers to work at Airlie Gardens. Director Williams spoke on the volunteer program administered by New Hanover Regional Medical Center, and he informed the Board that a similar computer program would be used to recruit volunteers for Airlie Gardens. In closing, Director Williams expressed appreciation to the Board for preserving Airlie Gardens. He stated it was an honor to participate in a project of this type. Deputy County Manager Atkinson requested the Board to decide if $500,000 of the foundation money can be used to cover the budget for the end of the fiscal year. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 790 After discussion, the Board agreed to place $1,500,000 in the endowment and use $500,000 of the money for initial start up costs. Staff was directed to place this item on the agenda for January 19, 1999. Vice-Chairman Greer requested the Board to consider using state-of-the-art environmentally sound materials when paving roads in Airlie Gardens and Honor Park. He suggested using a water permeable paving product instead of asphalt, which will be cost-effective in the future. After further discussion, the Board requested staff to compare the difference in the cost of asphalt versus a water permeable paving product and forward a report to the Board. DISCUSSION OF ESTABLISHING A GREENSPACE AD HOC COMMITTEE TO STUDY THE FEASIBILITY OF HOLDING A BOND REFERENDUM TO PURCHASE GREENSPACE Chairman Caster advised that the Parks Foundation Board, comprised of five members, was serving as the Greenspace Ad Hoc Committee to study the feasibility of holding a bond referendum to purchase greenspace. After the Committee met a few times, it was decided that two additional members should be added, a representative from the City of Wilmington and a representative from the School System. He advised that he would be glad to write a letter to Mayor Hicks and the Chairman of the Board of Education requesting appointment of representatives if the Board was in favor of this recommendation. A lengthy discussion followed on the responsibilities of the Greenspace Ad Hoc Committee. Vice-Chairman Greer, a member of the Parks Foundation Board, reported that he felt the Ad Hoc Committee should be charged with the following responsibilities: (1) identify the types of greenspace; (2) identify the amount of greenspace needed; (3) project the amount of money needed to purchase greenspace; and (4) compile a list of specific uses for the greenspace. He stated the major item for the Committee to determine is whether the citizens will support a $30,000,000 to $50,000,000 bond issue. Deputy County Manager Weaver advised that a key issue would be to prioritize projects. For example, does the public want park development, passive space, natural areas, etc. Commissioner Birzenieks recommended designing a survey to allow the citizens to determine how the greenspace should be used. This would assist the Ad Hoc Committee in prioritizing projects and at the same time inform the public about the need to purchase greenspace. After further discussion, the Board directed staff to place an item on a future agenda for the Board to increase the size of the Ad Hoc Committee by two representatives. REMINDER OF THE NEW HANOVER COMMUNITY CRIME TASK FORCE MEETING Chairman Caster reminded the Commissioners of the meeting scheduled by the New Hanover Community Crime Task Force on Wednesday, December 16, 1998, at 7:00 p.m. in the Board of Education Building located on South 15th Street. He reported that all elected officials have been invited to hear the recommendations of the Task Force and to discuss what actions should be taken for the next year. The Commissioners were encouraged to attend the meeting. STATUS REPORT ON THE DOBO WATER SYSTEMS County Attorney Copley advised that Ken Shanklin, the attorney representing the Dobo brothers, was still dealing with the N. C. Utilities Commission. It appears the process is going well. After the project is approved by the Utilities Commission, the stock will be placed in the trust, and the trustee will decide on whether the City or County should purchase the systems. DISCUSSION OF THE PROPOSED INTERLOCAL AGREEMENT SUBMITTED BY THE CITY OF WILMINGTON FOR CONSOLIDATING THE COUNTY AND CITY WATER AND SEWER UTILITIES AND DISCUSSION OF LEGION STADIUM Commissioner Davis commented on the proposed interlocal agreement prepared by the City NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 791 of Wilmington for combining water and sewer services, and he recommended discussing this agreement as a Board to make the necessary changes. Vice-Chairman Greer advised that Assistant County Manager Weaver had prepared a letter to respond to the agreement; however, he and Commissioner Howell felt it would be better to call another meeting of the City-County Utilities Committee to discuss the proposal before sending the letter to the City. Chairman Caster requested Assistant County Manager Weaver to write a letter to Mayor Hicks explaining why no response had been received, and he requested the Clerk to the Board to schedule a meeting of the City-County Utilities Committee. Vice-Chairman Greer requested Assistant County Manager Weaver to provide each County Commissioner with a copy of the draft letter expressing the County’s concerns so everyone will be informed. He reported that the members of the City-County Utilities Committee were still optimistic that an agreement could be reached; however, if a solution to the differences is not reached in the near future, there is no reason to continue pursuing this matter. Chairman Caster commented on Legion Stadium, and stated he felt the same way about this issue. If the City Council does not want to transfer or allow the County to purchase the stadium, this issue should not be pursued. In his opinion, the City should transfer Legion Stadium to the County at no cost because it will take $4,000,000 to $5,000,000 to renovate the facility. He stated the County could build a new stadium for New Hanover High School with that amount of money. Commissioner Birzenieks requested an explanation on why the City wants to own and operate Legion Stadium when the facility is used primarily by the schools. Assistant County Manager Weaver responded there are two issues: (1) pride of ownership; and (2) the City feels that Legion Stadium has great economic potential. Commissioner Davis stressed the importance of everyone understanding that money has been spent by the City to renovate Legion Stadium, particularly since the City has been trying to revitalize the area around the stadium. Vice-Chairman Greer informed the Board that in 1958 the County owned the property and decided to give the property to the City of Wilmington contingent upon it being made available for recreational purposes and use by the Board of Education. This contingency was stipulated in the deed. A year or two later, special legislation was enacted stating that the City did not have to adhere to that contingency. Vice-Chairman Greer suggested not continuing to negotiate with the City Council about Legion Stadium if the Council does not want to transfer the facility to the County. Chairman Caster advised that he and Commissioner Howell at the last meeting of the Legion Stadium Commission tentatively agreed to approach the Board about paying $961,903 to the City for Legion Stadium if past records demonstrate that this amount of money was spent by the City for capital projects over the last five years. Vice-Chairman Greer reported on seeing the televised meeting of the City Council, and he stated the following items were discussed: (1)The County will pay the City $961, 903 for Legion Stadium to reimburse the City for capital improvements made to the stadium over the past five years. (2)The County will pay salaries for maintenance crews. (3)The City will still control the use of the fields. After further discussion, Chairman Caster advised that he would be discussing this recommendation with the Board at a future meeting. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 792 DELIVERY OF FALCON CABLE REPORTS County Attorney Copley reported that representatives from Falcon Cable were present and would like to deliver the reports to be discussed on Monday, November 23, 1998. MEETING RECESSED FOR LUNCH Chairman Caster recessed the meeting for lunch from 12:05 p.m. until 1:05 p.m. REVIEW OF ACTIVITIES AND PROJECTS Deputy County Manager Atkinson presented the following projects: Renovation of the Assembly Room in the Historic Courthouse: The draft design for renovating the historic Courthouse had been completed and the project had been funded in the FY 1998-99 Budget at a cost of $500,000. Discussion followed on where the Board will hold its regular meetings during the renovation project. Clerk to the Board, Lucie F. Harrell, reported the renovation of the Assembly Room in the Historic Courthouse should begin after the second meeting in January. The project should be completed by the end of May. Contacts are being made to see if Courtroom 317 in the Judicial Building; the large Library Conference Room; the Board of Education Conference Room, or Madeline Suite and/or another Conference Room at UNCW can be used for the months of February, March, April and May. Once this process has been completed, a report will be forwarded to the Board. Honor Park (Pilot’s Ridge) Project: Staff is in the process of trying to determine the amount of money needed for the Honor Park project until January 1, 2000. The Board of Education is on a tight construction schedule to open the complex by September 2000. Staff will have to negotiate with the School System to determine the amount of money to be paid by the County for construction of roadways and the provision of utilities for the school/park complex. The estimated County costs for road construction, utilities, and grading is $2,000,000 that must be available by December 31, 1999. Vice-Chairman Greer advised that he thought $2,000,000 was a conservative number. He stated the School System has informed the Board that the $3,200,000, which is County money, will be used for the Honor Park project. The School System feels the combined school/park project has created additional expenses that are not normally incurred. Initially, both the County and schools thought the road would be constructed by the N. C. Department of Transportation (NCDOT); however, a project of this type cannot be construction by NCDOT. In order for the roads in Honor Park to be accepted by the State Highway Road Maintenance System, the curb coming off Carolina Beach Road making a 90 degree left turn will have to be modified because there is not adequate space under the current design for the State to accept the roads. Also, negotiations with CP&L will have to occur about the installation of lines, street lights, and other issues. The grading for road work should be completed at one time for the entire project. Decisions will have to be made on the most economical way to approach the project. For example, when the school system builds four tennis courts, will it be more economical for the county courts to be constructed at the same time. The boundary line between the school and county property must be determined. These are the types of high cost items that have not been included in the funding plan. Assistant County Manager Weaver advised that the projected cost for building out the entire project is $4,500,000; however, this figure does not include the $1,200,000 for utilities and $1,800,000 for the road. If half of the cost for utilities and the road is included, the entire projected cost of the project is $6,000,000. The tennis courts and picnic shelters can be constructed at a later date and possibly included as items in the greenspace bond referendum. The County will have to provide funding in the amount of $2,000,000 to pay for the county’s share of constructing the road and utilities. Also, $1,400,000 should be appropriated for grading the entire site. A lengthy discussion ensued on the amount of money identified for projects in school bond issues and the fair way of sharing the cost between the County and New Hanover County School System. Concern was expressed for the County paying additional costs for expanding projects, such as the recent expansion to the Hoggard High School Stadium project and Lakeside High School. The NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 793 Board generally agreed that a better line of communication needs to be developed between the Board of Education and Board of County Commissioners so issues of this type can be discussed. After further discussion of needing to meet with the Board of Education, Vice-Chairman Greer suggested allowing two County Commissioners and two members of the Board of Education to meet on an informal basis before holding a meeting of both boards. The Board agreed for Chairman Caster and Vice-Chairman Greer to meet with two members of the Board of Education to discuss the Honor Park project and other issues. Discussion of Electing County Status: New Hanover County is officially an electing county; however, when the General Assembly reconvenes in January 1999 some changes could be made in the legislation. If there are no changes the projected budget figure of $780,000 for an entire year will be reduced because the program will be implemented for only half of the fiscal year. Status Report on the Northeast Branch Library Project: Staff has prepared a draft lease agreement between New Hanover County and the University of North Carolina at Wilmington for leasing 7,200 square feet of the Northeast Branch Library to the University for various programs. This will provide additional revenue to offset some of the operational costs. Once the negotiations have been completed, the final agreement will be presented to the Board for final approval. The architect is in the process of drawing the construction plan, but $1,000,000 has not been raised by the Northeast Branch Library Fund Raising Committee. As of this date, the Committee has received over $400,000 in commitments. The project will not begin until the Commissioners are satisfied with the fund raising effort. Also, the property owned by the County on Military Cut-Off Road will be sold, which will generate additional revenue for the Branch Library. Discussion followed on the funding needed for the Northeast Branch Library project. Deputy County Manager Atkinson reported the County paid $3,000,000 for the building which was financed through COPS. Renovations are estimated at $1,100,000; however, the $1,000,000 to be raised by the Northeast Funding Raising Committee will be used for renovations and the purchase of books. Status Report on the Administration (Annex)Building and Parking Deck Project: The Space Plan Study had been completed by BMS Architects, but the $7,500,000 project has not been funded. As of this date, no response has been received from BellSouth regarding the land next to the 138 North Fourth Street property. Staff feels this can be negotiated, but difficulty has been experienced in receiving an answer. Once this matter is resolved, a report will be forwarded to the Board. Status Report on the Judicial Building: The space plan has been completed, and three architects have submitted proposals. The Selection Committee will hear presentations from the three firms and a decision should be made within the near future. The estimated cost of the project is $6,400,000. After completion of the space study, the Sheriff wrote a letter to the County Manager expressing concern about security of the Judicial Building with multiple entry levels. Staff is in the process of studying the front entrance to provide one entry and one exit, which could change the appearance of the building and increase the cost of the project. The security feature can be an alternate to the bid. Once more information is received, a report will be forwarded to the Board. Status Report on the Purchase of the 138 North Fourth Street Building Owned by the City of Wilmington: The Board of County Commissioners made an offer of $1,100,000 to the City Council for the purchase of the 138 North Fourth Street Building. The City Council has approved the offer and the financing should be completed by February 1, 1999. Finance Director Shell advised that the financing contract with the City of Wilmington would be on the December 7, 1998 agenda. He explained that the City of Wilmington purchased the property through Certificates of Participation. Until the City’s equity reaches 100% of the remaining principal balance, the City cannot convey the property to the County without encumbrance; therefore, the County will lease the building from the City with an option to buy, and the principal portions of payments made by the County will be credited toward the purchase price of $1,100,000. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 794 Approval of the purchase by the Local Government Commission is scheduled for January 5, 1999 and the closing date is scheduled for February, 1999. Vice-Chairman Greer asked why money was not appropriated in annual budgets to pay for small purchases of this type in lieu of installment financing. For example, $300,000 per year could be budgeted to pay for the 138 North Fourth Street property over a period of three years. After further discussion, the Board concluded that staff should consider budgeting small purchases instead of using installment financing. Emergency Operations Center with 911 Backup: The space plan had been completed to convert the EMS Building located on Second and Grace Streets to an Emergency Operations Center with 911 Backup. An appropriation of $613,000 was included in the FY 1998-99 Budget. Cape Fear Community College plans to move out of the building in March or April 1999. The existing offices in the front of the building will accommodate the Emergency Management Department without any change. The back quarter of the building, formerly used by CFCC as a training room for nurses, will become the Emergency Operations Center. The two large classrooms will remain classrooms and meeting space. The old print shop will become the actual Emergency Operations Center during events and provide space for a 911 backup system. The funds budgeted will cover the cost of the project. Discussion followed on the offer by N. C. House Representative Thomas Wright to obtain State funding for the Emergency Operations Center. Assistant County Manager, Pat Melvin, advised that a letter has been written, but no response has been received. She offered to contact Representative Wright about the proposed funding and report back to the Board. Deputy County Manager Atkinson requested the Board to consider contracting with Clark-Hipp, the firm who prepared the original plan, to modify the plan to use the building for the Emergency Management Department and Emergency Operations Center. This will avoid having to go through another Request for Qualifications process and allow the building to be occupied by Emergency Management in April or May 1999. Vice-Chairman Greer expressed concern for moving the Emergency Operations Center from the Law Enforcement Center because of being separated from the Sheriff’s Department. Chairman Caster asked if revenue collected from the 911 surcharge could be used to finance the Emergency Operations Center. Budget Director Griffin advised that she would check into this matter and report back to the Board. After discussion, the Board agreed to allow Clark-Hipp to perform the design work. This item will be placed on a future agenda. Pay and Classification Study : Three firms are being evaluated by the Human Resources Department to perform the Pay and Classification Study. The recommendations from the study will not be implemented until January 1, 2000. Discussion followed on the cost involved with implementing the recommendations of the study. Deputy County Manager Atkinson explained that incorporation of the market adjustment in the plan since 1991 should hold down the cost of implementing a new pay and classification study. Commissioner Birzenieks stressed the importance of performing a pay and classification study every three to five years to avoid an expensive implementation process. Medical Insurance: Staff is working with consultants to prepare Request for Proposals (RFP) for a fully insured plan. Once the recommendations have been received from the consultants as to what information should be incorporated in the RFP, packets will be forwarded to various insurance firms. Discussion is being held with New Hanover Regional Medical Center (NHRMC) about a self-insured arrangement through a contract with NHRMC for hospitalization. Hospitalization is NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 795 approximately 50% of personnel costs. If significant discounts can be obtained by going through NHRMC, the County should consider going back to a self-insured plan. Commissioner Birzenieks asked if there would be any value in all local governments, New Hanover County Schools, NHRMC, and County funded 501C-3 organizations approaching insurance firms as one group for medical insurance coverage. Director Shell responded that the large group concept has been discussed with two or three insurance brokers, but they do not feel there is enough uniformity among the agencies to move in this direction. However, Mr. Parks Griffin, Mr. Hank Estep, and Mr. Gibson are going to check into this concept and report back to staff. Commissioner Birzenieks requested staff to pursue this concept so that better coverage can be obtained at a cheaper price. Vice-Chairman Greer advised that this type coverage was available through the N. C. Association of County Commissioners After further discussion, the Board agreed to request staff to investigate the possibility of combining the units of government, NHRMC, New Hanover County Schools and County non-profit agencies in trying to obtain medical coverage through the N. C. Association of County Commissioners or other insurance companies. School Maintenance Funding: Staff feels that the Board of Education will probably request an increase in funding for school maintenance. This will be an item that will have to be determined by the Board when addressing the FY 1999-2000 budget. Vocational Education School : Deputy County Manager Atkinson reported that the $3,200,000 has not been released to the New Hanover County Schools even though a great deal of discussion has been held on this issue. A lengthy discussion was held on the importance of resolving this issue. Commissioner Birzenieks advised that after discussing vocational education with teachers, there is a great deal of concern about losing children at an early age who are interested in vocational training. He recommended pursuing this issue with the Board of Education. Commissioner Davis said he had discussed this issue with Dr. Eric McKeithan, President of Cape Fear Community College; Mr. Duke Lineberry, Chairman of the Board of Education, and Dr. John Morris, Superintendent of Schools. He said these officials are interested in meeting with the Board of County Commissioners to discuss this matter. A meeting would provide an opportunity for Cape Fear Community College (CFCC) to inform the Commissioners about what CFCC can do and is willing to do with vocational education. After further discussion, the Board agreed that a meeting should be held with the Board of Education after the first of the year to discuss Honor Park, the Eaton School site on Gordon Road, and Vocational Education. Dr. McKeithan and appropriate staff members are to be invited to attend the meeting. Assistant County Manager Weaver said if the Board decides not to use the $3,200,000 for vocational education, the money could be used to perform the road work, grading, and utilities for Honor Park. Parks Expansion: The following list of current projects was presented: ? Wrightsboro Park: The land has been purchased, and the estimated cost of completing the project is $200,000. ? Battlefield Park: The land has been purchased. No plans have been initiated at this time. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 796 ? Castle Hayne Park: Phase I has been completed. Phase II is pending. ? Ogden Park: This project has been partially completed. ? Hugh MacRae Park: The proposed upfit and enhancements are estimated at $1,500,000. Discussion was held on the upgrading of Hugh MacRae Park. Vice-Chairman Greer requested an explanation of improvements that will cost $1,500,000. Assistant County Manager Weaver explained that discussion has been held about installing a high quality fence around the park as well as performing major landscaping projects. He advised that this project did not have to be done at this time. Drainage: The following report was presented: ? Pages Creek Study: This study has been completed and is partially funded. ? Hidden Valley/Crosswinds: This project is under way, but implementation has not been funded by the property owners. ? Dobo Water Systems: A resolution has been adopted with an offer to purchase the water systems. This matter is still pending. The project will be financed for approximately $22,000,000 by Certificates of Participation. ? Existing Water & Sewer Projects: Funding is in place for the Water and Sewer projects that are underway. Discussion followed on reviewing the Master Plan for the Water and Sewer District because of the rapid growth that has occurred. Deputy County Manager Weaver informed the Board that a majority of unscheduled projects have been paid by the additional revenue generated by the Water and Sewer District; therefore, the Master Plan schedule has not been changed. Vice-Chairman Greer said with the tremendous amount of development in various areas, such as Monkey Junction, there may be a need to change the schedule to accommodate those areas where people are experiencing septic tank failures. After further discussion, the Board requested staff to provide a copy of the scheduled projects as outlined in the Master Plan so the Commissioners can review the schedule. Discussion was held on how to fund a comprehensive drainage plan for New Hanover County. Assistant County Manager Weaver explained that direction was received from the Board several months ago not to pursue a comprehensive drainage approach at this time. However, staff was directed to review and try to resolve existing problems, such as the flooding being experienced at Crosswinds. After further discussion, the Board agreed that ordinances and regulations should be changed to require the use of techniques that will better control drainage with new development. Staffing of Expanded Facilities and New Schools: With new parks, new schools, new branch libraries, and new buildings, Property Management will need additional staffing. The new schools will require additional money from the County for maintenance and supplements for teachers. This item will have to be considered when preparing the FY 1999-2000 budget. City of Wilmington Annexation: The proposed annexation will reduce the amount of sales tax revenue received by New Hanover County. This item will have to be considered when preparing the FY 1999-2000 budget. City/County Comprehensive Land Use Plan: Chairman Caster commented on reading the article in the newspaper, and he asked if anyone knew whether the City-County Comprehensive Land Use NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 797 Plan would fall under the two-year moratorium recommended by the Coastal Resources Commission. Assistant County Manager Weaver advised that land use plans in progress would be exempted from the two-year moratorium. Other Issues Deputy County Manager Atkinson presented a list of potential activities that have been discussed by staff, such as space needs for the Jail, Elections, and Cooperative Extension. He advised the Board that a few of these issues would have to be addressed. In closing the presentation, Deputy County Manager Atkinson stated he would be glad to provide additional information on any of the items discussed. Chairman Caster spoke on the importance of the City Council, Board of County Commissioners, Beach Town Councils, Board of Education, Cape Fear Community College, Airport Authority, New Hanover Regional Medical Center Board of Trustees, and other agencies working together to address the many needs of the community. New Hanover County is responsible for the entire County in the services rendered. It is imperative for the various bodies to work together. Commissioner Birzenieks stated with the size, population, and nature of New Hanover County, a consolidated government will become essential to provide a government that will equally share the cost of services. After reviewing the many projects underway, it is difficult to believe the citizens of New Hanover County realize the accomplishments that have been made in the past two years. He suggested having Mark Boyer, the Public Information Officer, to make an effort to better inform the citizens about current projects, and particularly the acquisition of Airlie Gardens. He recommended holding a formal ceremony and inviting the public to attend the event when Airlie Gardens is opened. Deputy County Manager Atkinson encouraged the Board to make every effort possible to inform the public about the good things that are happening in New Hanover County. In closing, Commissioner Birzenieks recommended holding another budget retreat with staff providing a list of ways to generate revenue so the Board can thoroughly review each revenue source. He said property owners cannot continue to bear the burden for meeting the growing demands of the county. Chairman Caster agreed and stated options for generating revenue, such as implementing a drainage fee to pay for a drainage system should be presented at the retreat. He stressed the importance of the entire community being involved in this process. A brief discussion followed on disposal of waste. Vice-Chairman Greer reported that the Board will have to decide if a mandatory trash collection system should be implemented. With the proposed annexation by the City, many citizens will be under a mandatory system. However, the real issue to address is whether incineration of trash is worth the cost. Operation of the WASTEC Facility is extremely expensive. If the citizens of New Hanover County are willing to pay the cost for continued operation of the incinerator, the Commissioners should proceed in that direction. Many people feel that the trash should be hauled out of the County, which will save landfill space. The New Hanover County Landfill will remain open and make a profit. This is a complicated issue that will have to be addressed by the Board. NEW HANOVER COUNTY BOARD OF COMMISSIONERSBOOK 26 BOARD RETREAT, NOVEMBER 21, 1998PAGE 798 ADJOURNMENT Chairman Caster adjourned the meeting at 2:10 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board