1994-06-20 Regular Meeting
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~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.
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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:
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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.
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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.
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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.
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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.
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M~NUTES OF REGULAR MEETING, JUNE 20, 1994
PAGE 14 5
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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.
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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.
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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:
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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
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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.
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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.
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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
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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.
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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?
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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.
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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
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M~NUTES OF REGULAR MEETING, JUNE 20, 1994
PAGE 14 9
Chairman Greer
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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.
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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.
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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:
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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:
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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:
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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.
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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
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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.
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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: .
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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.
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(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.
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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.
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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
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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.
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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.
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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.
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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
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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:
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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.
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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.
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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
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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 .
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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
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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.
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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.
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PAGE 158
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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
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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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
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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?
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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,
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Clerk to the Board
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