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1994-06-20 Regular Meeting ""'Ill " ~M.iNtiTES OF REGULAR MEETING, JUNE 20, 1994 PAGE '14:3 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, June 20, 1994, at 9:00 A.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North'Carolina. ,e Members present were: Commissioners Sandra Barone; William A. Caster; William E. Sisson, Jr.; Vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order and welcomed everyone present. INVOCATION AND PLEDGE OF ALLEGIANCE TO THE FLAG Reverend Chris Register, Youth Pastor of Winter Park Pentecostal Holiness Church, gave the invocation. Commissioner Barone led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer inquired as to whether anyone from the general public would like to present an item not listed on the Regular Agenda or comment on an item listed on the Consent Agenda. 'The following item was presented: ''.e Request to Consider Accepting Federal Aviation Administration (FAA) Grants - New Hanover International Airport Airport Director, Robert J. Kemp, apologized for the short notice and reported after a 9-month delay, the U. S. Congress has just recently passed an "interim" A.I.P. bill which will allow.the FAA to issue some grants to airports for capital projects. New Hanover International Airport is hopeful of receiving grants for two important projects, both of which have been delayed for some time due to a lack of funding. .. The Airport expects to receive $90,000 in discretionary funds for a Master Plan Update. In addition, it is felt the Airport will receive entitlement funds for the extension of Taxiway B. The Commissioners were requested to accept FAA grants to fund the Master Plan Update, extend Taxiway B and related work, and when the; grants are offered, authorize the execution of the grants subject to approval by the County Attorney. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to accept the FAA grants to fund the Master Plan Update, ext:end'Taxiway B and related work, and when the grants are offered, authorize the execution of the grant documents contingent upon approval by the County Attorney. Upon vote, the MOTION CARRIED UNANIMOUSLY. '- -- ~ I Withdrawal of Item 5 on the Regular Agenda Chairman Greer reported Item 5 on the Regular Agenda has been wit~~r.awn because the President of New Hanover Regional Medical Center was not 'able to attend the meeting. This item will be discussed at a later date. APPROVAL OF CONSENT AGENDA Commissioner Barone requested removal of Consent Agenda Item 12 from the Consent Agenda for further discussion. commissioner Caster requested removal of Consent ~genda Items 2 and 6 for further discussion. j / ( I , I PAGE' Hot. MINUTES' OF REGULAR MEETING, JUNE 20, 1994 by Commissioner Barone 12 and to approve the Upon vote, the MOTION Motion: Commissioner Caster MOVED, SECONDED to remove Consent Agenda Items 2, 6, and remaining items on the Consent Agenda. CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The commissioners approved the following sets of minutes as presented by the Clerk to the Board: Public Hearing for the FY 1994-95 Budget May 16, 1994 Work Session for Presentation of Fire Protection Assessment June 2, 1994 Budget Work Session June 2, 1994 Special Meeting for Downtown Parking Deck Project June 2, 1994 Approval of Contract #94-0355 with Jonathan Jager (an Individual Trading as "The Designing Eye") for Design Services for the Michael Jordan Discovery Gallery in the cape Fear Museum The commissioners approved a contract with Jonathan Jager for design services for the Michael Jordan Discovery Gallery in the Cape Fear Museum. The fees for services will be based on an hourly rate structure with the total not to exceed $28,000. The County Manager was authorized to e~ecute the contract documents. A copy of the contract is on fil~ in the Legal Department. Approval of Sales Tax Refund Analysis Proposal between New Hanover County and McGladrey , Pullen ~ Finance Department The Commissioners approved a proposal with McGladrey & Pullen to perform an analysis of non-profit sales tax refunds. The firm will analyze sales tax refunds of certain non-profit entities and local governments within the county. The fees charged will be as follows: Amount Refunded $0 to $50,000 $50,000 to $100,000 Estimated Fee $ 1,000 minimum: $12,500 maximum $12,500 minimum: $22,500 maximum Note: Should the sales tax refunded exceed'$100,000 the fees will correspond to the schedule listed above for the first $100,000 refunded to the County and at the firm's standard hourly billing rates plus direct expenses for the time required to identify any amounts in excess of $100,000. Billing rates vary according to the degree of responsibility involved and the skill required for the assignment. A copy of the proposal is on file in the Finance Department. Adoption of a Resolution Authorizing the Director of Environmental Management to File a U. S. Forest Service Grant Application The Commissioners adopted a resolution authorizing the Director of Environmental Management, Raymond L. Church, 'Jr.', to serve as the county's agent and representative for the purpose of filing applications, contracts and administering funds under the U. S. Forest Service Grant Program. This grant has allowed the County to establish a composting bin distribution program, and if the grant is awarded, the county will be a~le to continue this program, which has proven to be a low cost and effective mechanism for encouraging backyard composting. A copy of the resolution is hereby incorporated as a part of' the minutes and is contained in Exhibit Book XXII, Page 13. o , I o o ""'l1lI , " .~ < ,"'.' ,'-.. " . .. :'~q-"~~t~ 1~f?~ 'h:'tftf M~NUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 14 5 e Adoption of Resolution Awarding Bid #94-0379 (Contract #94-0379) to Koch Sulfur Products company for the Purchase of Sulfuric Acid for the WASTEC Facility The Commissioners adopted a resolution awarding a bid to Koch Sulfur Products Company, the lowest responsible bidder, in an estimated amount of $13,632 for the purchase of sulfuric acid for the WASTEC Facility. The unit price of $.568 per gallon is based on usage for a period of two years. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as. a part of the minutes and is contained in Exhibit Book XXII, Page 13. A copy of the contract is on file in the Legal Department. Adoption of Resolution Awarding Bid #94-0377 (Contract #94-0377) to Thompson and Little Company for the Purchase of Kitchen Equipment for the New Hanover county Jail The Commissioners adopted a resolution awarding a bid to Thompson and Little Company, the lowest responsible bidder, in the amount of $39,706 for the purchase of kitchen equipment in the Jail. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 13. A copy of the contract is on file in the Legal Department. e Adoption of Resolution Awarding Bid #94-0374 (Contract #94-0374) to Atlantic computer corporation for Purchase of IBM Terminals for the Department of Social Services The Commissioners adopted a resolution awarding a bid to Atlantic Computer Corporation, the lowest responsible bidder, in the amount of $30,300 for the purchase of 30 IBM Terminals. The Chairman was authorized to execute the contract documents. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 13. A copy of the contract is on file in the Legal Department. Acceptance of Tax Collection Reports for Collections Through May 31, 1994 The commissioners accepted the following Tax Collections Reports for collections through May 31, 1994, as submitted by the Collector of Revenue: New Hanover County Tax Collections New Hanover County Fire District Tax Collections Copies of the reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXII, Page 13. e Adoption of Resolutions Requesting the Addition of Roads to the State Highway system The Commissioners adopted resolutions requesting the addition of the following roads to the State Highway System: wilton Court Dunn Place Drive Stoneybrook Subdivision, Section 3-4 Copies of the resolutions are hereby incorporated as a part of the minutes and are contained in Exhibit Book XXII, Page 13. Approval of Budget Amendment 94-0252 - Sheriff's Department The commissioners approved the following Budget Amendment: j / MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 14 6 94-0252 - Sheriff's Department Administration Debit Credit Sheriff's Department DWI Enforcement Overtime Grant $10,000 Sheriff's Department Salaries Printing supplies $8,700 200 1,100 o Purpose: To establish budget for Enforcement Overtime grant. The grant was County Commissioners on April 18, 1994. Driving While Impaired approved by the Board of Approval of Budget Amendment #94-0258 - Department of Aging The Commissioners approved the ~ollowing Budget Amendment: 94-0258 Department of Aging Home-Delivered Meals congregate Debit Credit Dept. of Aqinq/Home-Delivered Meals Nutrition - CDBG USDA Contracted.Services $5,000 8,807 $13,807 Conqreqate Meals Nutrition - CDBG USDA Contracted Services 7,697 1,904 9,601 Purpose: This budget amendment is for the following purposes: (1) to transfer $5,000 from Congregate to Home-Delivered Meals: (2) to deobligate $2,697 from Congregate: and (3) to adjust USDA revenues according to negotiated units to be provid~d. After meeting with the Council of Governments on reprogramming County funds, it was decided the County would not spend all funds allocated to the county for Congregate Meals because of the large amount of program income generated. Therefore, the County is transferring part of the excess funds to Home-Delivered Meals and deobligating $2,697 for use in another County. o Approval of Budget Amendments #94-0261; #94-0262; and #94-0263 for Accounting Purposes The Commissioners approved the following Budget Amendments: Health Department/Administration Library DSS/Administration #94-0261 #94-0262 #94-0263 Capital Outlay - Equipment Debit Credit $16,000 $16,000 $50,000 $50,000 0 $27,000 $27,000 Health Department/Administration Installment Loan Proceeds Capital Outlay - Equipment Librarv Installment Loan Proceeds Capital Outlay - Equipment DSS/Administration Installment Loan Proceeds Purpose: For accounting purposes only. To record revenue received from First Union National Bank for the final portion of the Health Department's telephone system: a portion of the Library's automation project: and a portion of the DSS Phase II computer project. ~~; ';If t:,:~,~;;,'~i ~;~;, i~,~a~':t~~F ~1.i):r.'; ': "'l1lI ~ '. . .'- 1 MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 147 Approval of Budget Amendment 94-0267 - Health Department - Home Health Debit Credit Health Department/Home Health Home Health Fees - Medicare $35,000 e Advertising Cost Telephone Expense Contracted services $ 3,000 3,000 29,000 Purpose: To budget greater than anticipated revenue from increased number of Medicare visits to offset increased related expenses. Adoption of Resolution Authorizing the Submittal of Grant Application for Riverside Park Coastal and Estuarine Water Beach Access Grant - Castle Hayne, N. C. The Commissioners adopted a resolution authorizing the submittal of a grant application to the N. C. Division of Coastal Management seeking $26,500 in funds for the] development of the proposed improvements at the Riverside Park property with the County contributing $8,400 in cash and $1,500 in-kind services as allocated in the FY 1994-95 Budget for the County Parks Department. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXII, Page 13. DISCUSSION AND APPROVAL OF CONSENT AGENDA ITEM 2, APPROVAL OF EQUIPMENT LEASE (CONTRACT #L-12-594) WITH THE CITY OF WILMINGTON AND COOPERATIVE EXTENSION SERVICES Commissioner Caster inquired, as to whether funds have been budgeted for the purchase of the wood chipper. e County Manager O'Neal responded that no funds have been budgeted for the purchase of the chipper because the Cooperative Extension Services does not intend to purchase the chipper. The County will lease the chipper from the City of Wilmington for six months at a cost of $1.00. Motion: Commiss ioner Caster MOVED, SECONDED by Commiss ioner Barone to approve the equipment lease with the city of Wilmington for use of the chipper by Cooperative Extension Services and authorize the Chairman to execute the equipment lease. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the equipment lease is on file in the Legal Department. DISCUSSION AND APPROVAL OF CONSENT AGENDA ITEM 6, FOR CONVEYANCE OF TAX PARCEL #6514-001-001-000 ON SUNNYVALE DRIVE TO THE COUNTY FOR PAYMENT OF DELINQUENT TAXES Commissioner Caster commented on the use of the property and inquired as to how the County plans to use this parcel of land? e County Manager O'Neal reported once the property is obtained, the County will probably sell the parcel through a high bid process or public auction. This will allow the County to place the property back on the tax records. Also, since all environmental concerns have been met and the parcel is too small for a dwelling, the County could use the land for a mini-park or for some other public purpose. Motion: After discussion of the need to sell the property, Commissioner Caster MOVED, SECONDED by Commissioner Sisson to accept a tract of land owned by KLR Development Company known, as Lot 4 on Sunnyvale Drive in the City of Wilmington, for payment of back taxes in the amount of $180. Upon vote, the MOTION CARRIED UNANIMOUSLY. ~ MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 148- DISCUSSION AND APPROVAL OF CONSENT AGENDA ITEM 12, FEE SCHEDULE FOR THE ENVIRONMENTAL HEALTH SERVICES DIVISION OF THE NEW HANOVER COUNTY HEALTH DEPARTMENT Commissioner Barone expressed concern for the lack of input received from the various organizations that might be affected by the proposed increases in the Fee Schedule and requested the Commissioners to consider holding a Public Hearing to provide an opportunity for these groups to make public comments. She stressed the importance of hearing these groups before making a decision on the proposed increases in the fee schedule, which are much higher than presently being charged. Vice-Chairman Mathews expressed concern for the $60 Temporary Food Facility Application fee and requested removal of this fee from the schedule. commissioner Sisson recommended exempting charitable and non- profit organizations from the $60 fee because of the difference in people selling for a profit and persons operating food booths to raise money for charitable organizations. commissioner Caster commented on the fee being too excessive and recommended that a lower fee be considered. Chairman Greer reported the Board of Health recommended the proposed increase in fees to cover the costs for the services provided by the Environmental Health Division of the Health Department. He feels the $60 is too excessive and would be in favor of reducing the fee to be applicable to everyone. Motion: After further discussion of the revenue generated into the local economy by food vendors during the Azalea Festival and Riverfest and the $60 fee being too excessive, Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to reduce the $60 Temporary Food Facility Application fee to $30. The floor was opened for discussion. commissioner Barone expressed opposition to the Temporary Food Facility Application fee, particularly without hearing from the persons who will be affected by the increase, and reported she is not comfortable voting in favor of this increase until public input has been received. Chairman Greer inquired as to whether anyone from the general public would like to comment. The following remarks were received: Mr. Larry Lantz, representing Riverfest and the Azalea Festival, expressed opposition to the fee for food stands and reported the festivals, including Piney Woods and the Carolina Beach Festival, work closely with the Health Department to ensure proper inspection of the food vendors. All required . information is turned into the Health Department two to three months in advance. Many non-profit organizations are urged to participate in the festivals and the additional $60 would be a burden to these groups. The money charged by the festivals to the food stands is used to provide free entertainment for adults and children. Emphasis was placed on the revenue generated in the County from these vendors coming into the community, and concern was expressed for recruitment of food vendors if a fee is charged. In reviewing the states of Virginia, South Carolina, North Carolina, and Georgia, he has been unable to locate any Health Department that charges a fee for monitoring food stands. Call for a Vote: Chairman Greer called for a vote on the MOTION to reduce the $60 Temporary Food Facility Application fee to $30. Upon vote, the MOTION CARRIED A~ FOLLOWS: voting Aye: commissioner Caster commissioner Sisson Vice-Chairman Mathews o o o ;t'r'r:tifrn,~ t , , "'1"-',Tt;if;t~~""'" f~ ~t:~ii~~,t!ii:,.~tJ;LJ~0+", 1A~'~f~f;J'ttt)'f.i.;a'~,;i ;. '~~,~'" 1::;1 . . "h'" $~."f,., I * '('., r , ""IIIl .'. I f,. "f;~~:':U;;:"f~ ;~, ~ I;.~~ :~' M~NUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 14 9 Chairman Greer . Voting Nay: Commissioner Barone Commissioner Barone expressed concern for the amount of increase in the fees proposed, and strongly objected to the proposed increases in the Sewage System Permits which will cost new homeowners an additional $1,000 in fees. e Vice-Chairman Mathews recommended the possibility of preparing a package fee for persons building new homes, which will help to reduce building costs. commissioner Sisson reported if the proposed fees are reflective of the true costs, perhaps, there are other alternatives for lowering the price of new homes. He expressed concern for developers making a 100% profit and not paying their fair share of the construction costs. He stated, in his opinion, the County will either have to charge the fees necessary to pay for the costs of providing these services, or the County should inform the citizens that the taxpayers will subsidize these services. Commissioner Barone, again, objected to such large increases at one time and recommended phasing in the increased fees over a period of four years. e Assistant Health Director, Lynda smith, reported the Board of Health studied the proposed fee increases for the past year with a review of raising fees to cover 50% of the cost of services; 80% of the cost of services, and finally 100% of the cost of services. Staff members of the Health Department worked with the Finance Director to determine the cost of services being provided, including administrative costs, salaries, the time.in the field, and other indirect costs. The fees reflected do represent a 180% increase; however, this amount is needed to cover the costs of services being provided by Environmental Health. Discussion was held on the $20 per day late fee to be charged to vendors who submit an application less than 14 calendar days prior to an event. Commissioner Barone suggested charging a one time fee of $20, instead of $20 per day. Director of Environmental Health, Dianne Harvell, reported the Azalea Festival is well organized; however, in other events held throughout the year, many vendors wait until the last minute to file an application which often makes it impossible for staff to handle the workload. with the number of employees in the Environmental Health Division, time is needed to plan ahead for processing applications. Motion: Commissioners Caster MOVED, SECONDED by Commissioner Sisson to accept the $20 per day application penalty as presented in the fee schedule. Upon vote, the MOTION CARRIED AS FOLLOWS: e voting Aye: Commissioner Caster commissioner Sisson Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Barone Discussion was held on a 3-year phase-in period for the fee schedule. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Sisson to accept the recommended 100% defray of costs Environmental Health Fee Schedule including the change in the Temporary Food Facility Application fee to be phased in over a 3-year period with 1/3 of an increase each year. If no increase is recommended, there will be no increase. Upon vote, the MOTION CARRIED AS FOLLOWS: ~ , , I I I I I i i 1 1 I MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 150 Voting Aye: Commissioner Caster commissioner sisson Vice-Chairman Mathews Chairman Greer voting Nay: Commissioner Barone PRESENTATION OF NEW HANOVER COUNTY EMPLOYEE SERVICE AWARDS County Manager O'Neal requested the following employees to step forward to receive service awards: o Name Years of Service Ronald M. Rivenbark, Inspections Department 5 Rosemary A. Richardson, Social Services 5 Wanda Copley, County Attorney 10 Frank Benegasi, Environmental Management 10 Lynda F. smith, Health Department 10 Patricia Samwick, Department of Aging 10 Janice Brown, Social Services 20 Johnny R. Bullard, Social Services 20 Chairman Greer, on behalf of the Board, expressed appreciation to these employees for their dedicated years of service to New Hanover County. PRESENTATION OF "CLASS ACT AWARD" County Manager O'Neal reported this is the first "Class Act Award" to be presented and stated Mr. George A. Canady has gone beyond the call of duty as a Maintenance Supervisor'at the WASTEC Facility to lead a disorganized, unskilled maintenance group into an exceptionally organized group'that provides quality maintenance. This group now has pride and is performing in an excellent manner. o Chairman Greer, on behalf of the to Mr. George A. Canady for his presented him with a $100 savings Award, and coffee mug. Board, expressed appreciation exceptional performance and bond, Class Act certificate " Environmental Management Director, Ray Church, reported it has been a pleasure to work with Mr. Canady and see him receive the first "Class Act Award" for his exceptional performance. RECOGNITION OF AWARDS TO HEALTH DEPARTMENT EMPLOYEES Assistant Health Director, Lynda Smith, recognized the following Health Department Employees for receiving the following awards: (1) Jeanne S. Rose, Public Health Nurse III, Home Health, for receiving the N. C. Association of Home Care Provider of the Year Award for "Clinical Manager of the Year". (2) Mamie Nixon, Community Health Aide, Child Health; and Cynthia Meredith, Health Educator-Maternal Health, for being leaders in the Health Department March of Dimes campaign which received a plaque from the March of Dimes for the "2nd Place Corporate Team, 1994". Chairman Greer, on behalf of the Board, congratulated these outstanding employees' and stated New Hanover County is most fortunate to have such exceptional employees. o RECOGNITION OF THE DEPARTMENT OF AGING FOR RECEIPT OF AWARDS Director of Aging, Annette Crumpton, recognized the following employees from the Department of Aging for receiving the following awards: . " , th~,,,,','::1?":' -A'1, ,\,.:_\;:,~".i:";-\.':t:..:;;.~ ,;. .ii:t\~$,., ..(,I"-il:ii.f':{ '!"".r""~"'A;~r'~~ \;"1~" 1 't'" ....''" .....""1.-. ,~,.., ,;,< .<;')' I ""'Ill "If :\i;" ~.n :,f i: ~ ~) .~'" ' M~NUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE '151 (1) Ms. Pat Samwick, Activities Coordinator for the Department of Aging, for coordinating the National Institute of Senior Center Achievement Award for the Health, promotion/wellness program entitled "Healthy, Wealthy, and Wise." without her efforts and the work of many volunteers, the Department of Aging would not have received this award. e (2) Ms. Marcell Austin, Director of the RSVP Program, Mr. Howard Brown, Coordinator of the RSVP Program, and Ms. Barbara Wiedeman a RSVP Volunteer for coordinating the Senior's Health Insurance Information Program (SHIP) which won the James B. Long county of the Year Award. BREAK Chairman Greer called a break from 9:15 A.M. until 9:30 A.M. DISCUSSION OF FORMAT TO BE USED FOR MONTHLY REPORTS ON MAINTENANCE AND RENOVATIONS OF NEW HANOVER COUNTY SCHOOLS County Manager O'Neal presented a sample of the monthly report reflecting expenditures for facility maintenance and renovations on school facilities. He requested the Commissioners to comment on the sample and 'provide direction to staff. Chairman Greer requested a separate listing of maintenance and janitorial expenses on the monthly report. commissioner Sisson requested that all expenses be listed by line items for each school with a running total on these expenditures in order to know exactly where funds are being expended. . After further discussion, staff was directed to develop a monthly report for each school listing separate line items and running totals for housekeeping, janitorial, maintenance and renovations. Deputy County Manager Atkinson reported the County Staff will meet with the School Administrative Staff to discuss the proposed format and strive to work with the schools in preparing a form of monthly reporting that will not place a burden on the accounting system for the schools. WORK SESSION SCHEDULED FOR DISCUSSION OF NEW HANOVER COUNTY STRATEGIC PLAN Chairman Greer reported the Commissioners feel another Work Session should be held with the Strategic Planning Council to further discuss the proposed plan. He recommended scheduling a Work Session on Thursday, July 14, 1994, after the Staff Meeting. Consensus: It was the consensus of the Board to schedule a Work Session for discussion of the Strategic Plan orrThursday, July 14, 1994, at 10: 15 A.M. in Room 501 of the County Administration Building followed by a light lunch. e CONSIDERATION OF REQUEST FROM THE CITY FOR'THE COUNTY TO CONTRIBUTE TO THE CAPE FEAR COMMUNITY COLLEGE RIVERWALK PROJECT . Mr. Mike Hargett, Assistant to the city Manager, apologized for the short notice regarding the County's participation in this project. The City received final notice from the State on June 6, 1994, which was only two days before the agenda deadline for the County. Mr. Hargett reported originally it was anticipated that it would' not be necessary to ask for county funding i, however, the grant notlce from the State asked applicants to reduce the funding by 20%. Also, project costs have increased by $50,000 based on preliminary design work. The original concept was to locate the walkway within the landward section of the Cape Fear community College property. The design work just completed proposes a blend of both overland and overwater walkways. This will achieve two ~ MINUTES OF REGULAR MEETING~ JUNE 20, 1994 PAGE 1:52' purposes: (1) the water context will be more in keeping with the intent of the program, which is a public access to estuarine waters; and (2) a blend of an overland and overwater walkways will allow a maximum use of the very limited amount of space in front of Cape Fear Community College for the College's immediate and long- term use. The project has wide spread support in the community and is part of the DARE Riverfront Plan and the WHET Plan. The project budget is $150,000 with a state grant providing $60,000 and the remaining $90,000 to be funded by the City of Wilmington at $30,000, Cape Fear Community College at $30,000, and New Hanover County at $30,000. o Vice-Chairman Mathews inquired as to how this plan correlates with the WHET group? Mr. Hargett reported the plan being submitted with the grant application is the identical plan included in the WHET drawing with the same improvements. commissioner sisson inquired as to whether the Commissioners have received the latest drawing of the overlandjoverwater plan? Mr. Hargett reported the only difference in the plan submitted to the Commissioners is that the orange area indicated on the plan will cross the water. commissioner sisson reported the WHET group is very much in favor of the project. The Cape Fear Community College Board of Trustees is concerned about being sure that easements required for utilization of the space are worked out with the Community College, and that efforts are coordinated with the WHET group to assure there will be no design conflicts between plans for placement of the proposed marina. o Mr. Mike Bradley, Vice-President of WHET and a member of the Marine Board with Cape Fear Community College, reported he is pleased with the plan because this plan will accommodate a small scale marina at Cape Fear Community College. Chairman Greer inquired as to why these funds are not being used for a docking facility at the present time instead of extending the riverwalk? Mr. Hargett reported a to receive a state grant. access. docking facility would not be eligible The proposed project is for public Chairman Greer inquired as to whether Cape Fear community College is willing to fund its share? Mr. Hargett reported this project has been favorably discussed with Dr. stone and by the College's Facilities Committee; however, there is no iron clad funding commitment at this time. commissioner Barone inquired as to how the County would fund the $30,000? County Manager O'Neal reported the funds would come from contingencies for FY 1994-95. o Motion: After discussion of the need to support the development of the riverfront, Vice-Chairman Mathews MOVED, SECONDED by Commissioner sisson to contribute an amount of $25,000 and no more than $40,000 with the understanding that all unsightly buildings on the river will be removed or improved on the Cape Fear Community College campus. The floor was opened for discussion. Chairman Greer expressed concern for rushing into a project of this size without knowing about the funding commitment from the Cape Fear Community College Board of Trustees. Also, he expressed ....... ",'r''''(;l~ ,.;,.,' M~~UTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 153 concern for not knowing if the plan has actually peen accepted by all parties involved, and the fact that the County has never been requested by the city to participate in funding for this type of project in the past. Upon vote, the MOTION DID NOT CARRY AS FOLLOWS: e , , Voting Aye: Commissioner Sisson Vice-Chairman Mathews Voting Nay: Commissioner Barone Commissioner Caster Chairman Greer APPROVAL OF AMENDMENTS TO THE NEW HANOVER COUNTY CODE, WATER & SEWER ORDINANCE, ARTICLE, 15, WATER SUPPLY SYSTEM; AND ARTICLE II, EXPLOSIVES, SECTION 12-156 IN THE NEW HANOVER COUNTY CODE Approval of Amendment to the New Hanover County Water & Sewer ordinance, Article 15, Water Supply system _ Deputy Finance Director, Julie Griffin, presented the proposed amendments to the New Hanover County Code, Water & Sewer Ordinance and explained the proposed amendments will better clarify the water supply section and collection procedures. Vice-Chairman Mathews reported commissioner Barone and he have worked with staff on the proposed changes to the Water & Sewer Ordinance and feel many of the problems being experienced by persons connecting to the system will be addressed with the revisions being presented. e Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to accept the amendments as presented to the Water & Sewer Ordinance. Upon vote, the MOTION CARRIED UNANIMOUSLY. Approval of Amendment to Article II, Explosives, Section 12-156 of the New Hanover county Code County Attorney Copley commented on the new General Statute permitting the sale of "safe/family" fireworks and requested the Commissioners to adopt the proposed amendment to Article II, Explosives, Section 12-156 in order to comply to the new State Law. Commissioner Caster inquired as to whether the County can be more stringent than the State law? County Attorney Copley responded the County can be more stringent; however, vendors could argue that State Law preempts a County Ordinance. County Manager O'Neal commented on the recently enacted legislation and stated the State Law allows for the sale and purchase' of "safe and sane" or "family fireworks"; however, projectile fireworks such as bottle rockets, aerials, roman candles are still illegal in North Carolina and a permit would have to be obtained for these types of explosives. e Motion: Vice-Chairman Mathews MOVED, SECONDED Caster to amend Chapter 12, Offenses, Article Section 12-16 Sale, Discharge of Fireworks, to recently enacted State Law. Upon vote, the UNANIMOUSLY. by Commissioner II. Explosives, comply with the MOTION CARRIED Copies of the ordinances are contained in the Ordinance Book in the Clerk's office and will be codified in the New Hanover County Code. TAX APPEAL BY GENERAL ELECTRIC AIRCRAFT ENGINES AND NUCLEAR DIVISIONS Tax Administrator, Roland Register, reported General Electric is questioning whether the County can discover as personal property ~ I ":'l~;:;)' MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 154 items that have been misclassified as real estate by General Electric. In North Carolina, the General Assembly determines how property should be taxed for the purposes of ad valorem taxation. The Machinery Act establishes the duties of the Department of Revenue and states it shall be the duty of the Department of Revenue to exercise general and specific supervision over the evaluation and taxation of property by taxing units throughout the state. The Department of Revenue shall provide the following: (1) a continuing program of education and training for local tax officials in the conduct of their duties; (2) a program for testing and the qualifications of an assessor and other persons engaged in the appraisal of property for the county or municipality; and (3) a certification program for an assessor and other persons engaged in the appraisal of property for a county or municipality. For many years, the Department of Revenue has provided these services through manuals for training assessors and personal property assessors. The manual comments on the major problems that can be experienced in an assessor's office if appraisals are not performed in a professional manner that lends itself to uniformity and equity among all business taxpayers in the taxing unit. The manual is an overall guide to deal with various classes of personal property. No book can give specific examples of all items such as a nuclear plant like General Electric. Items that may appear to be permanently attached to realty may not be appraised as realty and should be classified as personalty. For example, items that may appear to be realty but should be considered personalty in certain cases are wiring, venting, flooring, special climate control systems associated with equipment or product, conveyors, etc. The statute also very specifically identifies other items that are personal property such as machinery and equipment; office furniture, fixtures and equipment; construction work in progress, leasehold improvements, software packages, tools, dyes and molds.. There are pages of classifications that are selected as real property versus personal property such as air conditioning used in data processing rooms; burglar alarms; fire alarms; computers, electronic control systems; foundations for machines and equipment attached to the building floor; humidifiers for the manufacturing process; heating systems; office equipment; power generation systems; processed piping; public address systems; private telephone systems, ventilation systems; private water systems;. wiring for machinery and equipment; portable walls, etc. Also, the courts have tended to agree that if personal property is affixed to the land so that it loses its original physical character and cannot be restored to its original condition as a practical matter, it loses it.s nature as a personal property and becomes real property. ' Tax Administrator Regis.ter reported the discovered property at General Electric typically fits the items outlined in the manual and guidelines. He stated he, Mr. Tom Tucker, the Tax Management Associates Auditor; Mr. Jim Bethune, Appraisal supervisor; and Attorney Joe Taylor, representing General Electric, visited the plant with representatives from General Electric and took random samples of items, which were foreign items to the Tax Department as. to identification and use. Now, it has been alleged that samples were taken to suit the position of the Tax Department in the classification of assets as to personal property for taxation that is subject to discovery. Some of these items are as follows: (1) cleaned plant feed, determined to be water to the equipment; (2) feeder, 500 MCM, determined to be an electric feed process; (3) electric tower system determined to be the high process power from building to building; (4) processed sewer; (5) iron filtration systems determined to be tanks in the buildings; (6) public address system; (7) processed piping and wiring; (8) M&L switchgear electrical system determined to be the motors and controls in a process unit; (9) tank storage determined to be processed. hydrochloride; (10) container office determined to be cubicles;. (11) telecommunications cable determined to be the heart of the . I o o o e e e ~I~;/ "",f^~{'lf'"))~1~\,, -'11 t'.$"'F~...lI:" ,t'''.. ,l\.\1I!i- ;!.~' ~\. ;~":' , , '>': .". : 1~'1 _ ,i:C' '(.1\., I>\.',;tr[ """"Ill " ,-Ii : . lifr~~'1i;'n,. ';_1, "'1{ MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 155 telephone system; (12) installed motor controllers determined to operate a chiller room; (13) fire system to computer room; (14) portable office which was a single-wide mobile home; (14) EMS System determined to be the emergency warning system; (14) computer items, computerized aid to drafting; and etc. Tax Administrator Register reported General Electric has a tax representative who is thoroughly familiar with the tax rules relative to personal property and real estate; however, when this report was presented to General Electric by this representative, General Electric decided to classify the items in-hous~. According to the Department of Revenue, the items listed above are classified as personal property. The Commissioners were informed that these types of items should have been listed for the twenty years General Electr ic has been operating in New Hanover County. Appraisal Supervisor, Jim Bethune, an expert in tax appraisals, followed the rules of mass appraisal and the assets reviewed were deemed to be personalty. In summary, the Machinery Act states, "It shall be the duty of the assessor to see that all property not properly listed during the regular listing period be listed, assessed, and taxed as provided in this sub-chapter". Emphasis was placed on the fact that the general statutes also allow the Board of County Commissioners to hire experts to assist the Tax Administrator in the performance of his duties. The Board of County Commissioners in 1991 hired Tax Management Associates to assist the Tax Administrator in performing these audits. Mr. Tom Tucker, the appraiser representing Tax Management Associ.ates has years of experience as a tax auditor, a former tax collector of Mecklenburg County, and is a trained instructor on personal property techniques and evaluation. During the audit, Mr. Tucker always displayed professionalism. It was felt the tax audit was needed to determine if businesses have followed the tax laws. The intent of an audit is to require the same tax rules for all persons and businesses to ensure equity and conformity in taxation. The audit is not intended to damage or hurt the good reputation of a company. In the case of General Electric, the question to be answered is whether the County should forgive and forget or let General Electric list correctly beginning next year? In the past, the Commissioners have upheld the penalties and discoveries found through an audit. The Machinery Act specifically states when the property is discovered it should be taxed for the year in which it was discovered and for any of the preceding five years during which it escaped taxation. The audit findings and recommendations presented to the Commissioners have been consistent with everyone being treated the same. As Tax Administrator, he would recommend the penal~ies"and discoveries be upheld to fully conform with the accepted appraisal approaches and uniformly applied to all taxpayers. Tax Administrator Register reported the Attorney representing General Electric will argue that the Board of Equalization and Review firmed up the real estate value on an appeal in 1991 and that all the questionable assets were real estate. Also, General Electric will claim the MAl appraisal included these assets. As Tax Administrator for New Hanover County, he must dispute this claim. The General Electric appraisal included land and buildings valued on square footage, parking lot improvements, etc. He could find no evidence that the appraiser was given a list of machinery and equipment, alarm systems, computers, and similar equipment to include in the MAl appraisal. The Board of County commissioners as composed in 1990 adopted rules and standards which were used to value real estate effective January 1, 1991. These rules and standards remain in effect until the next general revaluation. Those rules did not include machinery, equipment, and computer alarm systems. During the 1991 Board of Equalization and Review, the Appraiser, Jim Bethune, recommended these assets for the value .... / MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 156 of real estate as he was trained to recognize for mass appraisal. Those rules and standards cannot be changed today. The Board of County Commissioners will sit today as the Board empowered to hear appeals for personal property with the uniformity of decisions as given to all other appellants. The Tax Department has followed the law and feels the discoveries and penalties should be upheld. Attorney Joseph Taylor, representing General Electric, expressed appreciation to the Commissioners for an opportunity to present the tax appeal on behalf of General Electric. He disagreed wi th the Tax Administrator's statements and stated General Electric through the years has always listed property correctly and made a special effort to comply to the tax requirements. Now, to face a discovery process basically implying that General Electric did not properly list its assets and had cheated New Hanover County out of millions of dollars, is not true and certainly not fair to this company. The issue is not whether an asset is personal or real property, but whether any assets at General Electric have escaped taxation. There are hundreds of thousands of assets at General Electric, such as conduits that run through the ceiling. One conduit carries a wire to service a piece of equipment with another conduit beside it carrying a wire to service a process. When referring to the manuals as described by the Tax Administrator, one conduit is a personal asset and the other is real property. Again, the issue is whether these assets (which have been selected by the Tax Office out of hundreds of thousands of assets) escaped taxation, not whether they are real or personal property. This question must be answered before the discovery process can be used. General Electric has been served with a discovery which claims there are assets located at the plant that have escaped taxation. By law in the state of North Carolina, it must be determined that the assets were owned by the taxpayer; were not listed for taxes; and have escaped taxation before the discovery process can be used. ~ccording to case law, there are two requirements for the discovery process of assets: (1) The Tax Department must show that the assets they seek to discover were owned by the taxpayer after the last revaluation. Attorney Taylor presented a list of assets which reflected that all assets being discovered were owned by General Electric prior to the 1990 revaluation; therefore, the first finding of fact cannot be met. Under state statute in the revaluation process, the taxing authority is charged with personally reviewing all assets which must be taxed in the revaluation process. Again, this not an issue of whether the assets are classified personal or real property. (2) Was the asset listed for taxes in any way? Whether an asset was mislisted or incorrectly listed is a matter of opinion. The ultimate decision of whether an asset is personal or real property is settled in the courtroom, not by the appraiser. New assets are classified personal or real property by General Electric engineers depending upon its particular use in the manufacturing process. There are some unusual uses at General El-ectric in the production of jet aircraft engines and nuclear fuel. This is a specialized plant where standards cannot be applied across-the-board for all assets because of the complexity and high volatility and danger of the products manufactured. For example, the Tax Department must consider how the property was affixed and the intent of the use of the property. The Environmental Management System was installed for $336,000 which was completed in 1989. On the 1990 tax return, General Electric showed it in a lump sum figure of construction work in progress prior to the 1990 evaluation and this was listed on the tax return. o o o e e e ,~'. .;. ~":. per """"11II MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 157 other minor issues of the audit have been resolved and documented with the exception of tools. After producing documentation and working with the Tax Office, General Electric does not owe tax on aircraft engines owned by the U. S. Government. One item of concern is the tools account, which is sought for discovery. This account has a life span of three months or less, and is not a three-year asset which is capitalized and depreciated. Taxes have already been paid on the tools. When a new piece of equipment and its associated tools and dyes are placed in use, the tools are listed and taxes are paid. The tools account is for replacement of these tools which have already been listed and are not subject to taxation because they only have a life span of three months. An affidavit of the Standard Tools Account was presented to the Commissioners. General Electric is opposed to the method used where a sampling was selected with a percentage applied across-the-board to an entire account of assets. This is not permitted under State Statute. Basically, the Tax Office performed a sampling with 83% classified as personal property with millions of dollars charged to the entire account. The procedure to use is asset by asset, not on a percentage sampling procedure. There is also an adjustment that has not been resolved. In 1989 computers were" shipped from wilmington to San Jose, California. The computers have not been located in Wilmington since 1989 and the assets are listed as uncategorized assets under the General Electric accounting system. Locally, there was no record of the transfer; however, records were found in San Jose with a statement from the San Jose Director certifying that the computers have been located in the plant since 1989. Yet, these computers are a part of the discovery. Worksheets reflecting the shipment of the computers from Wilmington to San Jose were presented to the Commissioners. In summary, whether the asset is real or personal is not the issue. General Electric has voluntarily agreed to furnish its list of assets to the Tax Office and if after review, the Tax Office feels some assets should be reclassified as personal, General Electric will be glad to reclassify these assets. The difference is not in the dollars paid, but whether or not General Electric followed the proper tax procedures. It is felt that General Electric owned and listed all the assets before the revaluation; therefore, the discovery process cannot be used since the two criteria have been met. Trying to claim discovery at a later date is not proper or fair. General Electric has not failed to list or pay taxes on assets worth millions of dollars. The Commissioners are in essence deciding on the integrity of General Electric, which is very important to this plant. General Electric did make a mistake in reporting the inventory during the last year that inventory was taxable in the State of North Carolina. The wrong standards were used and the error was discovered when completing IRS returns. General Electric is willing to pay the tax; however, there has been no satisfactory agreement on the amount of taxes due from the initial start of the audit. This occurred because standards are used for different locations and a non-intentional error occurred. Vice-Chairman Mathews inquired as to the cost of the $19 million inventory established by General Electric? Attorney Taylor reported General Electric at the beginning of each year establishes a full cost inventory, which was estimated at $19,018,000 in 1987. Inventory is purchased through the "entire year with a discrepancy account for establishing the actual cost of the inventory. At the end of the year, the LIFO readjustment is performed, which takes the estimated figure versus the actual figure with the actual cost in dollars for the inventory. The LIFO figure of $16,433,454 was the actual cost expended for inventory in 1987 and is the figure to be used for taxation. ~ I I MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 158 ~4i'i>;~f BREAK Chairman Greer called a break from 10:55 A.M. until 11:05 A.M. Vice-Chairman Mathews inquired as information was presented at the meeting, Department had received the documents? to why additional and asked if the Tax Attorney Taylor reported the exhibits were submitted six weeks ago. 'Tax Administrator Register reported the information marked "Appellant's Exhibits" was the only documentation provided to the Tax Office by Mr. Taylor for inclusion in the agenda packet. Also, Attorney Taylor was informed that information to be considered by the Board of County commissioners must be submitted to his office in advance of the meeting. Due to the fact that new information has been presented, Administrator Register requested that this information be discounted because pe has not had an opportunity to review the documents. Motion: After discussion of new information being presented without the Tax Administrator receiving the document:s" Vice- Chairman Mathews MOVED to postpone the hearing until this new information can be reviewed by the Tax Administrator and Legal Department. The MOTION FAILED DUE TO A LACK OF A SECOND. Attorney Taylor reported the only item that was not presented in advance to the Tax Office is the letter received thi~ morning on documentation of, the California adjustment. A copy of the letter was given to the Assistant County Attorney, Kemp Burpeau, and the Tax Administrator. The only other items that were not presented to the Ta.x Administrator were the photographs of the assets in questions. The remaining information has been in the Tax Administrator's possession for months. : Tax Administrator Register reported the letter received this morning had not been given to him. As to the statement made that General Electric has done everything possible to cooperate with the audit, he would like to take exception. Initially" the county had quite an ordeal going through the Legal Department in Connecticut to perform the audit. The audit was delayed until December because of the General Electric Legal Department, and the contract with Tax Management Associates had to be amended to a fee contract before the audit could, be conduc,ted. Concern was expressed for being accused of not providing truthful information through the audit process. Tax Administrator Regist~r commented on being unable to reconcile the information listed by General Electric. An asset record must be provided to determine the truth. When beginning the audit with a professional individual, Mr. Tom Tucker, it was found the records could not be reconciled. After asking questions, enough information was finally obtained for the provision of items. General Electric requested the County not to perform a 100% review of all assets, ,but to take a sample of assets. It was very difficult to obtain enough information for the auditor to make a determination of the aircraft engines. When Attorney Taylor and Mr. Tucker visited the site, the Tax Manager from Ohio did not show up and would not allow Attorney Taylor to go through the plant to find the $1.5 million of assets. Small cranes were pointed out, which is very clearly personal property. If General Electric has given construction in process without documents, how can the auditor determine if this is correct. If a discovery is made and General Electric is not satisfied, th~ case can be appealed through the courts. General Electric should not be treated "aifferently from any other taxpayer. The N. C. Property Tax Commission can determine how the assets should be classified. If'the information requested had been furnished by General ~lectric,'this case"could have been resolved, and the Tax Office would not have spent 1 1/2 years auditing the account. I , ; Ms. Emma Sue Marsh, Tax Manager in' Ft. Myers for General o o o e e e <,0,'1'-' r: ~'..;; 1." ;;"!';-:' "',;, """'Ill \1\-~ MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 159 Electric, took exception to the Tax Administrator's remarks relative to the firm being uncooperative in providing the necessary information. The accounting section is setup to handle the nuclear division and the aircraft engines division. It was the understanding of the office that the portion of the audit to be handled would be the nuclear division, not the aircraft engines division. The office was not prepared to answer the questions concerning aircraft engines. As to whether the Tax Administrator represents both the nuclear and aircraft engines divisions, this decision was made after an initial visit to Wilmington without her knowledge. The accounting office in Ft. Myers, Florida, complied to the best of its ability by filing the assets. The distance between Ft. Myers and North Carolina is difficult, but the office worked diligently to provide the information requested by the Tax Office. As to the assets that were transferred to San Jose, it was difficult for the office to find the exact record showing when the computers were shipped to California. The adjustment on the spread sheet from California proves that this transfer of assets did occur. Chairman Greer reported basically Mr. Taylor has presented a case where the County cannot go back and tax assets after a revaluation. Also, the property in question had already been listed as real property, not personal property. However, on the tax form submitted, the LIFO was performed in error by General Electric with approximately $3.8 million of additional inventory that should be reported. commissioner Caster inquired as to taxation of a $10,000 asset classified as real property versus a $10,000 asset classified as personal property? Tax Administrator Register reported all property is taxed at the same tax rate for the value determined. The value of real estate is determined on an eight-year revaluation cycle, but New Hanover county has elected to perform a six-year revaluation cycle and then go to a four-year cycle. Personal property follows a trending schedule provided by the N. C. Department of Revenue, which requires reporting of the original cost in place by the year of acquisition and by the type of equipment. A trending figure is applied with the residual value determined to be the value for tax purposes .' commissioner Caster inquired as to the difference in dollars between a generator bolted to the floor that cannot be removed from the building versus a generator sitting on a pallet that can be removed? Tax Administrator Register reported generators are classified as personal property as outlined under "power generation" by the North Carolina Department of Revenue. For example, the robot cranes are bolted to the floor in the aircraft division, which is personal property. Conveyors bolted to the column of the building are classified as personal property. Ms. Marsh reported the tax rate for real and personal property is the same; therefore, the same tax dollars are received for the $10,.000 asset regardless of whether it is classified personal or real property. The Tax Administrator is questioning whether General Electric has paid the proper tax. The Tax Administrator is claiming that these assets are truly personal property which General Electric has classified as real property; therefore, the company has not paid the proper tax. General Electric is saying based on the tax record cards, the assets are placed in the real value and taxes have been paid. commissioner Sisson commented on the Commissioners not being legal experts and recommended allowing the North Carolina Property Tax commission to decide on the appeal. In his opinion, in order ...... MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 160 to know if the auditing firm and the Tax Department have followed the proper procedures, this appeal should be decided in the courts. Assistant County Attorney, Kemp Burpeau, reported there are factual and legal issues involved, such as whether any assets escaped taxation and if double taxes have been paid. As to the legal issue and limitation of discovery, there are issues as to what constitutes a listing of taxes and whether an incomplete or erroneous listing of assets was completed. with these issues, it would be appropriate for this appeal to be forwarded to the North Carolina Property Tax Commission. o Tax Administrator Register apologized to Ms. Marsh for indicating that she did not cooperate with the Tax Office. He had requested details on the transfer of the computer equipment from Wilmington to California and stated she was most cooperative. He stated the North Carolina Property Tax Commission is the qualified agency to render decisions on the listing and classification of assets. Attorney Taylor reported the issues have been clearly defined and General Electric has presented evidence that all information has been presented properly with the exception of the LIFO mistake, which will be paid. The commissioners were requested to make a decision on this matter instead of referring the appeal to the North Carolina Property Tax Commission. Motion: Commissioner sisson commented on the evidence presented not indicating that the Tax Department had made an error in its method of appraisal and stated if questions need to be answered, the appeal can be forwarded the N. C. Property Tax Commission and MOVED TO UPHOLD THE DISCOVERY. The MOTION WAS SECONDED by Commissioner Caster. The floor was opened for discussion. Chairman Greer commented on General Electric trying to follow the correct procedures and being willing to pay for the error and stated, in his opinion, this should be the only discovery, not the other assets. o Commissioner Sisson stated, in his opinion, cases of this type should be forwarded to the North Carolina Property Tax Commission for resolving the legal matters before being presented to the County Commissioners. He expressed concern for this type of argument being used in other tax appeals. Chairman Greer reported General Electric is not an average company because of the difficulty in properly identifying complex equipment and tools that are used in its manufacturing processes. He reported he is prepared to make a Substitute Motion. Substitute Motion: Chairman Greer MOVED to uphold the findings as agreed upon by General Electric on the discovery of $3,794,646 in the aircraft engines section. The MOTION WAS SECONDED by Vice- Chairman Mathews. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barone Vice-Chairman Mathews Chairman Greer o Voting Nay: Commissioner Caster commissioner Sisson .. MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER , SEWER DISTRICT Chairman Greer convened from Regular Session at 11:19 A.M. to hold a meeting of the New Hanover County Water' Sewer District. Chairman Greer reconvened to Regular Session at 11:53 A.M. e e e """"11III i..'fl l .....-'t M~NUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 1U COMMITTEE APPOINTMENTS Appointment of Lawrence L. Murray to Serve on the New Hanover County ABC Board and Appointment of Howard L. Armistead as Chairman of the ABC Board for the Coming Year Chairman Greer announced there is one vacancy on the ABC Board, and six applications have been received. He opened the floor to receive nominations. Vice-Chairman Mathews nominated Lawrence Commissioner Caster seconded the nomination. L. Murray. There being no further nominations Chairman Greer declared the nominations closed. Vote: Chairman Greer called for a vote on the appointment of Mr. Lawrence L. Murray to the New Hanover County ABC Board for a three- year term to expire June 30, 1997. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer announced at the beginning of each fiscal year the Commissioners must appoint a Chairman of the ABC Board for the coming year. He opened the floor to receive nominations. Vice~Chairman Mathews nominated Lawrence C. Rose to serve as Chairman. Chairman Greer seconded the nomination. Commissioner Barone nominated Howard L. Armistead to serve as Chairman. Commissioner Sisson seconded the nomination. There being no further nominations, Chairman Greer declared the nominations closed. Vote: Chairman Greer called for a vote on the appointment of Lawrence C. Rose to serve as Chairman of the ABC Board for the coming year. Upon vote, the MOTION DID NOT CARRY AS FOLLOWS: voting Aye: Vice-Chairman Mathews Chairman Greer voting Nay: Commissioner Barone Commissioner Caster commissioner Sisson Vote: Chairman Greer called for a vote on the appointment of Howard'~. Armistead to serve as Chairman of the ABC Board for the coming year. Upon vote, the MOTION CARRIED UNANIMOUSLY. Appointment of Joseph Russo to Serve on the Cape Fear Coast Convention & Visitors Bureau Chairman Greer announced the unexpired term of Ralph Godwin, the Marketing, Advertising & Public Relations Professional on the Convention & Visitors Bureau is vacant. Three applications have been received that qualify for this category. He opened the floor to receive nominations. Commissioner Barone reported as a member of the Cape Fear Coast Convention & Visitors Bureau she would like to emphasize the importance of filling this unexpired term with an individual who has strong marketing skills; therefore, she would like to nominate Joseph Russo. Commissioner Caster seconded the nomination. commissioner Sisson nominated Alice M. Mitchell. The nomination was seconded by Vice-Chairman Mathews. There being no further nominations, Chairman Greer declared the nominations closed. _. Vote: Chairman Greer called for a vote on the appointment of Joseph Russo to fill the unexpired term of Ralph Godwin on the Cape .... [ I MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 162 Fear Coast Convention & visitors Bureau in the Marketing, Advertising and Public Relations Professional category. The unexpired term will expire May 31, 1996. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barone Commissioner Caster Chairman Greer Voting Nay: Commissioner Sisson Vice-Chairman Mathews o Reappointment of Oscar Graham to Serve on the Cape Fear community college Board of Trustees Chairman Greer reported one vacancy is open on the Cape Fear Community College Board of Trustees, and twelve applications have been received. Mr. Oscar. Graham is eligible for reappointment and desires to be reappointed. Chairman Greer opened the floor to receive nominations. Commissioner Barone recommended reappointment of Oscar Graham to serve on the Cape Fear Community College Board of Trustees. The nomination was seconded by Commissioner Caster. commissioner sisson nominated C. Craven Hughes to serve on the Cape Fear Community College Board of Trustees. The nomination was not seconded. There being no other nominations, Chairman Greer declared the nominations closed. Vote: Chairman Greer called for a vote on the reappointment of Oscar Graham to serve a four-year term on Cape - Fear Community College Board of Trustees with the term expiring June 30, 1998. Upon vote, the MOTION CARRIED AS FOLLOWS: o Voting Aye: Commissioner Barone Commissioner Caster Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Sisson Commissioner sisson stated, for the record, he has no problem with the reappointment of Mr. Graham; however, the County Commissioners should expect a high quality of performance from members appointed to serve on important boards and committees. For example, during the past five years, many problems have been experienced by Cape Fear Community College, particularly financial concerns; therefore, a great deal of thought and consideration should be given to the persons who are appointed to fill vacancies on a board of this type. Chairman Greer responded that things are beginning to turn around at Cape Fear Community College, therefore, he feels this is an indication that recent members appointed by the Commissioners have been performing well and are providing the quality of leadership necessary to promote the continued growth of the Community College. Reappointment of Ann Conner, Ann Hewlett Hutteman, and Bertha B'- Todd to Serve on the Cape Fear Museum Board of Trustees Chairman Greer reported that three vacancies exist on the cape Fear Museum Board of Trustees and six applications have been received. Ms. Ann .Conner, Ms. Ann Hewlett Hutteman, and Ms. Bertha B. Todd are eligible for reappointment and, desire to be reappointed. o ..' e e e """"Ill .4."w -.;.-, MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 16'3 Motion: Commissioner Barone MOVED, SECONDED by Commissioner Sisson to reappoint Ms. Ann Conner, Ms. Ann Hewlett Hutteman, and Ms. Bertha B. Todd to serve 3-year terms on the Cape Fear Museum Board of Trustees. The terms will expire June 30, 1997. Upon vote, the MOTION CARRIED UNANIMOUSLY. Reappointment of Claude Ayers and Appointment of William E. Royals to Serve on the New Hanover County Parks , Recreation Advisory Board Chairman Greer reported two vacancies exist on the Parks & Recreation Advisory Board. Mr. Claude Ayers is eligible for reappointment and desires to be reappointed. Chairman Greer opened the floor to receive nominations. commissioner Sisson nominated Mr. Claude Ayers for reappointment. commissioner Caster seconded the nomination. Chairman Greer nominated Mr. William E. Royals to serve on the Parks & Recreation Advisory Board. Vice-Chairman Mathews seconded the nomination. There being no other nominations, Chairman Greer declared the nominations closed. Vote: Chairman Greer called for a vote on the reappointment of Mr. Claude Ayers to serve a three-year term on the Parks & Recreation Advisory Board. The term is to expire June 30, 1997. Upon vote, the MOTION CARRIED UNANIMOUSLY. Vote: Chairman Greer called for a vote on the appointment of Mr. William E. Royals to serve a thr~e-year term. on the Parks & Recreation Advisory Board. The term is to expire June 30, 1997. Upon vote, the MOTION CARRIED UNANIMOUSLY. POSTPONEMENT OF EMS WORK SESSION Vice-Chairman Mathews commented on the need to allow ample time to evaluate the County Manager, County Attorney, and Clerk to the Board, and recommended postponing the EMS Work Session to another date. Consensus: After discussion, it was the consensus of the Board to postpone the EMS Work Session and perform the personnel evaluations as scheduled. MEETING RECESSED FOR LUNCH Chairman Greer recessed the meeting for lunch from 12:32 P.M. until 1:30 P.M. EXECUTIVE SESSION Chairman Greer requested an Executive Session to discuss personnel matters and pending litigation. Motion: Caster to vote, the Vice-Chairman Mathews MOVED, SECONDED by Commissioner convene from Regular Session to Executive Session. Upon MOTION CARRIED UNANIMOUSLY. Chairman Greer convened from Regular Session to Executive Session at 1:.31 P.M. Motion: Commiss ioner Barone MOVED, to reconvene to Regular Session. UNANIMOUSLY. SECONDED by Commissioner Caster Upon vote, the MOTION CARRIED Chairman Greer reconvened to Regular Session at 3:10 P.M. Chairman Greer reported that performance evaluations have been administered by the Board of County commissioners for the County Manager, County Attorney, and Clerk to the Board. The Commissioners have agreed to grant salary increases to all three j /~ MINUTES OF REGULAR MEETING, JUNE 20, 1994 PAGE 164 appointees based upon outstanding performances, and the Director of Human Resources will contact each appointee informing him/her of the salary increase. Also, the Commissioners felt since County employees are eligible to receive a 3% market adjustment, it would be appropriate for the Commissioners to receive a 3% increase effective July 1, 1994. DISCUSSION OF FY 1994-95 BUDGET FOR NEW HANOVER COUNTY SCHOOLS Commissioner sisson inquired as to the additional funds allocated to the schools? o County Manager O'Neal reported the Commissioners did decide to provide an additional $200,000 to the schools with $100,000 appropriated to a pension fund and $100,000 to be used by the schools as they so desire. CANCELLATION OF LEGISLATIVE COORDINATING COUNCIL MEETING FOR JUNE 27, 1994 Vice-Chairman Mathews announced the Legislative Coordinating Council meeting for June 27, 1994, has been canceled due to the busy schedule of the legislators in trying to adopt the budget and adjourn the Short Session. OFFICIAL ACTION TAKEN TO AUTHORIZE MERIT INCREASES FOR THE COUNTY MANAGER, COUNTY ATTORNEY, AND CLERK TO THE BOARD Chairman Greer reported the County Attorney has advised him that official action should be taken to authorize merit increases for the County Manager, County Attorney, and Clerk to the Board. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to authorize the merit increases approved by the County Commissioners for the County Manager, county Attorney, and Clerk to the Board. The Director of Human Resources is to be informed of the increases and inform each appointee. Upon vote, the MOTION CARRIED UNANIMOUSLY. Q' ADJOURNMENT Chairman Greer adjourned the meeting at 3:31 P.M. Respectfully submitted, ~~::~ Clerk to the Board o ..