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1996-05-20 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 380 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, May 20, 1996, at 9:00 A.M. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: 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 W.M. Wooten, Pastor of First Pentecostal Holiness Church, gave the invocation. Vice-Chairman Mathews led the audience in the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer announced that three minutes had been reserved to allow anyone from the public to introduce an item not listed on the Regular Agenda or comment on an item listed on the Consent Agenda. He asked if anyone present would like to speak, and he requested all persons to limit their remarks to three minutes. No items or comments were presented. APPROVAL OF CONSENT AGENDA Commissioner Barone commented on Consent Agenda Item #12 and requested an explanation of how the property at 11th and Rankin Streets would be conveyed to Wilmington Housing Finance and Development, Inc. County Manager O'Neal advised that New Hanover County would convey the property to Wilmington Housing Finance and Development, Inc., who in turn will work with first-time buyers of lower income families to obtain financing through local banks for the purchase of a home. This type of arrangement provides housing to lower income families as well as places the property back on the tax rolls. Commissioner Caster commented on Consent Agenda Item #16 and inquired as to whether the revised By-Laws had been approved by the New Hanover County Board of Fire Commissioners. Commissioner Sisson, the Board's representative on the Fire Commission, responded that the revised By-Laws had received a unanimous vote by the Board of Fire Commissioners. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Sisson to approve the items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes of the Special Meeting held with Wilmington City Council on May 3, 1996, as presented by the Clerk to the Board. Adoption of Resolution Relative to Funding Travel Activities of Athletic, Cultural and Social Organizations The Commissioners adopted a resolution prohibiting the use of public monies to fund travel activities of any athletic, cultural or social organization. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 381 A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 17. Adoption of Resolution Approving the Sale of Surplus Radar Units to West Chatham Warning Devices The Commissioners adopted a resolution approving the sale of four (4) surplus radar units in the amount of $700 to West Chatham Warning Devices pursuant to N.C.G.S. 160A-267. The radar units have been owned by the Sheriff's Department for at least ten years and have become inoperable. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 17. Authorization to File the FY 1996-97 Criminal Justice Partnership Program Grant Application The Commissioners approved the filing of a grant application for the 1996-97 Criminal Justice Partnership Program in the amount of $155,836 and authorized acceptance of the grant award by the authorizing official, Deputy County Manager, Andrew J. Atkinson. No County match is required. Approval of Filing HIV/STD Prevention Project Grant Application and Authorization for Acceptance of Grant if Awarded The Commissioners approved the filing of the HIV/STD Prevention Project grant application in the amount of $50,000 and authorized acceptance of the grant, if awarded. No County match is required, and approximately 50% of the program will concentrate on individualized HIV prevention case-management by providing enhanced education and counseling for specific populations outlined in the proposal. Approval of Contract Agreement #96-0418 Between Cape Fear Museum Associates, Inc. and New Hanover County Regarding Revenue-Sharing and Audit Requirements The Commissioners approved an agreement between Cape Fear Museum Associates, Inc. and New Hanover County regarding revenue- sharing and audit requirements. The agreement has been in existence since 1992 and calls for Cape Fear Museum Associates, Inc. to be audited every two years. This allows Cape Fear Associates, Inc. to recoup one-third of the admission fees and one- sixth of the program fees collected by the County. In exchange, employees who manage programming and volunteer recruitment and placement for the museum are provided by Cape Fear Museum Associates, Inc. This agreement has been beneficial to both the Museum and the County. A copy of the agreement is on file in the Legal Department. Adoption of Resolution Directing the Tax Assessor and Tax Collector Not to Bill or Collect Tax Accounts in the Amount of One Dollar or Less The Commissioners adopted a resolution directing the Tax Assessor and Tax Collector not to bill or collect tax accounts in the amount of one dollar or less as outlined in N.C.G.S. 105- 321(f). These taxes will not be collectible and will not be a lien on the taxpayer's real property. The County will save approximately $600 annually by not billing these tax accounts. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 17. Tax Appeal for Release of 1995 Late Listing Penalty for CTI of North Carolina, Inc. The Commissioners denied the tax appeal submitted by CTI of North Carolina, Inc. and upheld the 1995 late listing penalty as recommended by the Tax Collector in order to provide for uniformity. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 382 Acceptance of Tax Collection Reports through April 30, 1996 The Commissioners accepted the following Tax Collection reports through April 30, 1996, 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 XXIII, Page 17. Release of Values - Tax Department The Commissioners released certification penalties for the following taxpayers since this was their first offense: Braxton, James Roy Jr.$100 Russ, Sara Holland$100 Zoubek, Robert Alan$100 The Commissioners approved the delinquent application for exemption from property tax for the following organization. Upon request, the application and letter explaining the late filing are available in the Tax Department. Wilmington/New Hanover County RO4805-021-001-000 Development Corporation Adoption of Ordinance Rescinding the Current Customer Service Standards and Accepting the Newly Updated Time Warner Cable Customer Standards The Commissioners adopted an ordinance rescinding the current customer service standards and accepting the newly updated Time Warner Cable customer standards. These standards incorporated the current operating environments for cable telecommunication providers. Consumer protection remains among the single most important role for local government during the ensuing competitive era. A copy of the ordinance is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 17. Conveyance of Vacant Tract to Wilmington Housing Finance and Development, Inc. Without Compensation, Pursuant to N.C.G.S.Section 160A-274 The Commissioners approved the conveyance of Tax Parcel #RO4814-012-014-000 to Wilmington Housing and Finance Development, Inc. without compensation pursuant to N.C.G.S. Section 160A-274. The parcel is located at 11th and Rankin Streets across from the Old James Walker Hospital. Wilmington Housing and Finance Development, Inc. will locate a home on the tract for a first-time buyer with a modest income. A copy of the order conveying the property is on file in the Legal Department. Adoption of a Resolution to Add a Road to the State Highway System The Commissioners adopted a resolution adding the following road to the State Highway System: Maypop Court in River Oaks Subdivision A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 17. Approval of New Civil Engineer Position - Engineering Department The Commissioners approved a new Civil Engineer position for the Engineering Department and authorized the County Engineer to proceed with advertising the position so the job can be filled by early July. This position will greatly assist the Engineering Department in expediting projects which are now being delayed NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 383 because of heavy workloads due to continued development activities in the County. Approval of Consolidated Contract Between the North Carolina Department of Environment, Health, and Natural Resources and the New Hanover County Health Department The Commissioners approved a contract between the North Carolina Department of Environment, Health, and Natural Resources and the New Hanover County Health Department. The contract sets forth the terms and conditions applicable for public health activities provided through the Health Department for which the department receives state funding. The amount of funding for FY 1996-97 is $2,249,199 with $1,548,694 through State Grants and $701,225 through Title XIX Medicaid earnings. Approval of Revised By-Laws for the New Hanover County Board of Fire Commissioners The Commissioners approved the revised by-laws of the New Hanover County Board of Fire Commissioners. A copy of the by-laws are on file in the Clerk's office. Approval of Budget Amendment #96-0202 - CBA Agencies The Commissioners approved the following Budget Amendment: #96-0202 Additional State CBA Grant Funding CBA AgenciesDebitCredit CBA Grants $500 Non-Secure Detention Program $500 Purpose:To budget additional State CBA grant funding for the Non- Secure Detention Program. Approval of Budget Amendment #96-0208 - Department of Aging The Commissioners approved the following Budget Amendment: #96-0208 Aging DebitCredit Aging/Senior Center Title III-F Health Grant $5,160 Aging/Senior Center Title III-F Grant Expenses$5,160 Purpose:To reduce budget to actual amount of Title III-F Health Grant funds available for FY 1995/96 to the Department of Aging. ACTION DEFERRED ON THE INTERLOCAL AGREEMENT RELATING TO THE SUMMER TRADITIONS PROGRAM BETWEEN THE CITY OF WILMINGTON, NEW HANOVER COUNTY, AND THE NEW HANOVER COUNTY COOPERATIVE EXTENSION SERVICE County Manager O'Neal presented an interlocal agreement for the Summer Traditions Program between the City of Wilmington, New Hanover County, and the New Hanover County Cooperative Extension Service for the operation of a summer day program for school age children, including children with special needs. No County match is required. Chairman Greer expressed concern for approving an agreement of this type without time to review the document. County Attorney Copley advised that the agreement was delivered to the Legal Department on mid-day Friday by the Assistant City Attorney because the program was to start at the beginning of June. At that time, the Assistant City Attorney was informed that the Board was opposed to approving additional items without time to review the document. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 384 Chairman Greer recommended placing this item on the June 3, 1996, agenda with an explanation of the cost to the County and the location of the facility to house the program that will be provided by the County. He stressed the importance of receiving information of this type in advance before being asked to approve the document. Ms. Arleta Oldfield, System Manager of the N. C. Cooperative Extension Service, advised she was not aware the Assistant City Attorney had presented the agreement for approval at this meeting. She advised that the program was a collaborative effort between the County School System, Cooperative Extension, and the City of Wilmington for the provision of a summer day program for school age children including children with special needs. A school building will house the program, and the $51,500 grant funding will be used as seed money to fund the program this year with the fees collected from the parents being deposited and used to provide the program for next year. She advised that the City would like to see the program continued regardless of whether the Cooperative Extension Service was involved with the program. Consensus: After further discussion of time needed to review the agreement, it was the consensus of the Board to place this item on the June 3, 1996, agenda. PRESENTATION OF NEW HANOVER COUNTY SERVICE AWARDS County Manager O'Neal requested the following employees to step forward to receive service awards: Name Years of Service Sheila A. Jamerson, Health Department 5 Elizabeth R. Rauth, Health Department 5 Sherlyn H. Grantham, Social Services 5 Susan J. Jaindl, Budget Department and Finance 10 Carolyn A. Johnson, Tax Department10 Kellie P. Daughtry, Health Department10 Delisa B. Lloyd, Health Department10 Paula S. Jenkins, Health Department10 Linda Bohn, Social Services10 Wilma G. Daniels, Social Services10 Elizabeth S. Holland, Social Services10 Ruby M. Holiday, Register of Deeds15 Chairman Greer, on behalf of the Board, presented the service awards and congratulated each employee for their years of dedicated service to New Hanover County. PRESENTATION OF THE "DISTINGUISHED BUDGET PRESENTATION AWARD" TO THE BUDGET DEPARTMENT FOR FISCAL YEAR BEGINNING JULY 1, 1995 Chairman Greer announced that notification had been received from the Government Finance Officers' Association of the United States and Canada that New Hanover County has qualified to receive the "Distinguished Budget Award" for the fifth consecutive year. Chairman Greer recognized and presented a plaque to the Budget Director, Cam Griffin, for receiving this honor, and he expressed appreciation to the Budget Department for the outstanding job performed in preparing annual budgets. RECOGNITION OF NEW HANOVER COUNTY EMPLOYEES County Manager O'Neal requested the following new employees to stand and be recognized: Francine Thornton, Water & Sewer Finance Susan Brittan, Health Department Barbara Shell, Health Department Greg Kennedy, Aging Department Gary Faircloth, Inspections Department NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 385 Tom Watson, Inspections Department Wanda Noe, Inspections Department Charles Owens, Property Management Larry Bullock, Property Management Tom Nolan, Tax Department Bruce Williams, Cooperative Extension Service Chairman Greer, on behalf of the Board, welcomed the new employees to New Hanover County and wished them well in their new positions. CONSIDERATION OF NAMING A STREET AT LANEY HIGH SCHOOL AFTER DANNY PENCE Chairman Greer reported that N. C. State Trooper, Thomas L. Pearce, had requested naming the private road accessing Laney High School from North College Road after Danny Pence, the exceptional student that was kidnapped and brutally murdered approximately a year ago. He advised that the proposed road naming had received approval from the Board of Education and the Principal of Laney High School. Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to proceed with the necessary action to name the private street accessing Laney High School from North College Road to "Danny Pence Drive". Upon vote, the MOTION CARRIED UNANIMOUSLY. N. C. State Trooper Pearce expressed appreciation to the Board for naming the private road after Danny Pence who, in his opinion, was deserving of this special recognition. PRESENTATION OF THE COUNTY MANAGER'S FISCAL YEAR 1996-97 RECOMMENDED BUDGET County Manager O'Neal advised that Staff was requested by the Board to prepare the FY 1996-97 Budget without a tax increase; however, due to the debt service on the school bonds, the recommended budget has been prepared with a one-cent tax increase. At the beginning of the budget process, Staff began with a fourteen-cent increase, but through the efforts of the Budget Department and department heads, this figure was reduced to one cent. The proposed one-cent tax increase will fund approximately one-half of the increased debt service for the schools. An amount of $3,507,112 will be appropriated from the Fund Balance out of which $2,361,000 will be appropriated to the schools and approximately $1,000,000 appropriated to the Department of Social Services. The decision to use a portion of the Fund Balance for the FY 1996-97 Budget will not jeopardize the financial condition of New Hanover County. The budget was prepared under a cloud of uncertainty because of concern for Welfare Reform and its impact upon the County, the proposed annexation of 27.5 square miles by the City, redistricting of schools, and unprecedented growth. The following key issues were presented: Public Schools: The Board of Education's total budget request was $38,021,370 (current expenses of $30,492,792 and capital outlay of $7,528,578). This is an increase of 45 percent over the budgeted amount for the current year. The proposed budget recommends an increase of $3,243,916, or 13 percent, as the General Fund transfer to the schools. The General Fund transfer and increase in the one-half cent sales tax revenue will increase the current budget for Schools by $1,985,368, or 8 percent. This funding will be used as follows: (1) $764,387 for new schools; (2) $300,000 for the legislated salary increase for teachers; and (3) $920,981 for school maintenance. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 386 The $2.9 million recommended for capital will fund a significant amount of the capital request for Schools. Land for a new high school is not included; however, if the land can be financed over a period of time, funding for the first year's debt service could come from the recommended capital amount, the fund balance, or an increase in the proposed tax rate by one-half cent. A full year's debt service would not impact the budget until FY 1997-98. While the needs for Schools are great, they cannot be addressed in one year because fully funding these requests would have increased the tax rate by 14.5 cents. It should be noted that $1,141,353 was added to the School Budget during the current fiscal year to help offset additional costs related to the new elementary schools. Also, the General Fund transfer to the Public Schools Fund has increased at an average rate of 10.4 percent over the last five years, while the General Fund budget has increased at a lower average rate of 8.6 percent. Cape Fear Community College: The budget request submitted by Cape Fear Community College was fully funded at $517,214 representing a 34 percent increase. This increase will be used for the following purposes: (1) to address deferred maintenance needs of existing college buildings; (2) meet the requirements of federal, state, and local laws regarding safety and disabled accessibility; (3) renovating existing facilities to relocate various college departments; and (4) funding for additional construction costs. In addition, $154,500 is budgeted to fund the increased debt service on the 1994 Cape Fear Community College bonds. New County Government Positions: There were 40 new positions requested with 20 positions recommended as follows: Sheriff's Department: There are six positions recommended in the Sheriff's Department. Two deputies will be assigned to the Department of Social Services Child Support Program with the cost offset by increased program revenue generated by enhanced collections. Two deputies will be assigned to the Southeastern Center for Mental Health at the Crisis Center. The concept of the Crisis Center was presented and approved during the current fiscal year with the understanding that the number of hours spent by law enforcement officers in hospital emergency rooms because of substance abuse clients would be greatly reduced. Two clerical positions will be assigned to the Magistrate and the Court, which will provide essential clerical support as well as enhance compliance with the Structured Sentencing Law. Commissioner Sisson noted that the deputies being assigned to the Crisis Center would benefit law enforcement officials in Pender and Brunswick counties as well as the City of Wilmington; therefore, interlocal agreements should be pursued with these entities proportional to the use based on past experience in order for the County to receive some compensation for providing the facility. County Manager O'Neal advised that New Hanover County does receive some compensation from Brunswick and Pender counties. After further discussion, the County Manager was directed to pursue interlocal agreements with Brunswick County, Pender County, and the City of Wilmington for some form of compensation to the County for use of the Crisis Center. Inspections Department: Three new positions have been recommended for the Inspections Department to handle continued growth and development in construction activities. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 387 Cooperative Extension Service: One clerical position has been recommended for the Cooperative Extension Service to assist with increased demands. Engineering Department: One Civil Engineer position has been recommended in the Engineering Department to assist with the sewer system expansion and improvements. Health Department: An Ombudsman position for the Health Department has been recommended to monitor care given to the frail and elderly living in nursing and rest homes. Parks Department: Two new Groundskeepers positions have been recommended for the Parks Department due to expansion in the number of parks. One new position will be phased in over a period of six months. Animal Control Center: One Animal Control Officer has been recommended to assist with the growing population of animals and complaints received about neighbors' pets. Tax Department: A long-time temporary position in the Tax Department will become a full-time position to provide greater continuity in the department. One Plumber Position has been recommended to be shared by Property Management, Parks, and the Engineering Departments. Emergency Management Department: The clerical position that assists the Fire Administrator is being changed from part-time to full-time as the Administrator's activities increase. There is a corresponding decrease from full-time to part-time of a clerical position in Emergency Management since this department will no longer be the County's liaison with the Board of Fire Commissioners. Five positions will be transferred from the Inspections Department to the Fire Services Administration Department. Human Resources Department: The part-time floater position in the Human Resources Department is being increased to full-time to better serve requests from the various departments for assistance. This will be more cost-effective than using contracted services. Merit Program and Pay Plan Adjustment: An amount of $1,538,745 is recommended for continuation of the merit program and pay plan adjustment for deserving employees to be disbursed as follows: two percent for the merit program and three percent for the pay plan adjustment schedule. Medical Insurance: In an effort to manage the dramatic increase in health insurance, a fully insured Point of Service Plan (MedPoint) is being offered to the employees for FY 1996- 97. The MedPoint plan incorporates a true managed care component through in-network services, with an opportunity for the subscriber to select out-of-network providers. Human Services: County dollars for human services programs continue to increase, but at a lower rate than in the recent past. Department of Social Services: County funding for the Department of Social Services will increase by $842,900, or 8 percent, primarily due to an increase in the County's share for Medicaid. County funding for AFDC and Food Stamps have actually decreased, because of increased employment opportunities provided by the building boom and increased support enforcement efforts. Human services funding levels will remain in a state of flux until a decision is made on Welfare Reform. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 388 Southeastern Center: Funding for the Southeastern Center is recommended at $1,022,699, representing an increase of $204,567 or 25 percent. The increase will fund a Crisis Center that will provide non-medical services to substance abuse clients currently being seen in the hospital emergency rooms. This will eliminate the staff hours that area law enforcement officers are required to wait for individuals with substance abuse problems and alleviate congestion in the hospital emergency rooms. The Sheriff's Department will be reimbursed for the two new deputy positions recommended in the budget to staff the Crisis Center. Also, there will be a continuation of the $66,000 contribution from the ABC five- cents bottle tax. Department of Aging: Recommended funding for the Department of Aging will increase by $31,246 representing a 6 percent increase over FY 1995-96. The Department was designated as the Lead Agency in providing care services to senior adults. By contracting with Well Care & Nursing Service and Elderhaus, 261 adults were provided with in-home aide services and adult day care. Commissioner Barone inquired as to whether figures were available to reflect the amount of money saved in the County's share for Medicaid versus the cost of paying for in-home services? County Manager O'Neal advised that New Hanover County pays approximately $5,160 per year, per patient as its Medicaid share for persons placed in nursing homes; therefore, in-home services would cost much less. He noted that no cost analysis had been made over the past three years; therefore, he would prefer to prepare the figures before stating an exact amount. Public Safety: The Sheriff's budget will experience a small increase. Four of the recommended new positions will be offset by revenues generated in that department. There will be no funds budgeted for new vehicles since vehicles were purchased at a discount in the Spring of 1995; however, funding for vehicles will have to be included in future budgets. The Computer Aided Dispatch System in the 911 Center will be fully operational by the beginning of FY 1996-97. There are some on-going services for maintenance and rental costs that could be funded by the 911 Surcharge; however, the Board previously decided that no 911 Surcharge funds could be used to fund expenditures that are not one-time in nature. The new Emergency Operations Center should be fully operational early in the next fiscal year. The Emergency Medical Services Department has been decreased by two rescue technician positions. The City of Wilmington or Ogden-New Hanover Volunteer Rescue Squad will provide crash rescue extraction services for the County on a contractual basis. The replacement of equipment and vehicles is part of a planned cycle to keep equipment in current and safe working order. Additional fees generated by the increased workload in the Inspections Department continue to be used to fund additional positions and automation of services. Cultural and Recreation: An amount of $300,000 is included in the recommended budget for transfer to capital projects. This funding could be used to purchase and start design work on a library in the Castle Hayne area (an interest expressed by the Board). An amount of $82,712 is included in the Library's Automation System. This system will reduce maintenance costs, improve performance, and allow access to the CD-ROM network NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 389 and Internet. There is also an increase of $74,437 budgeted in the funding for books, which will fund the book budget at $3.50 per capita (up from $3.00 per capita). The Cape Fear Museum will continue the revenue producing Dinamation Exhibit through the first months of the fiscal year and feature the photomicroscopy exhibit. The Parks Department is continuing the development of the Ogden and Castle Hayne Parks. An amount of $500,000 is recommended for continuation of work on the Ogden Park and $68,000 for continuing development of the Castle Hayne Park. Economic and Physical Development: The Planning Department will continue to maintain the GIS system. The updating for the orthophoto digitization effort continues with the assistance of the Tax and MIS Departments. This system will be a great asset in the revaluation process, which will form the basis of the FY 1997-98 Budget. Outside Agencies: The Human Services Allocation Advisory Committee formulated the funding recommendations for the outside human services agencies. The recommendations are within the total dollar amount allocated to these agencies in the current year, although there may be changes among individual agencies. REVENUE: There is an increase of $2,469,600, or 5 percent, in the ad valorem taxes due to the increased tax base and continuation of the excellent collection rate. An increase in the tax base of one cent will generate revenue in the amount of $882,000, which will cover one-half of the increased debt service on the school bonds for FY 1996-97. The increased revenue in the one-cent sales tax over FY 1995- 96 is estimated to be $500,000, or 4 percent. It is estimated that the FY 1995-96 projection will be very close to the actual amount received. ENVIRONMENTAL MANAGEMENT FUND: The Environmental Management Fund is balanced based upon the assumptions that the tipping fee will increase from $30 per ton to $32 per ton and that 189,000 tons of solid waste will be received. A transfer of $2,793,686 from the General Fund is required to balance the fund. The flow control legislation was defeated at the Federal level, and there is concern that increasing the tip fee by more than $2 will cause the haulers to transport trash out of the County. Discussions continue on options for reducing this transfer in future budgets. Continuation of General Fund transfers will be required unless bold steps are taken to make be fund self-sufficient. EMERGENCY TELEPHONE SYSTEM FUND: There are no expenditures budgeted for this fund. Funds will be appropriated as needed and available through the budget amendment process. There are on-going 911 system maintenance costs that could be funded by the 911-Surcharge; however, funds are not budgeted from the surcharge at this time. WATER AND SEWER DISTRICT: The Water and Sewer District continues to receive the undesignated portion of the County's two one-half cent sales taxes, enabling it to set a limited amount aside for future capital projects. The recent increase in impact fees will help ensure that funding will be available for continued expansion of the sewer system. Consideration should be given in the next year to raising user fees to offset reliance on the sales tax and cover increasing operations and maintenance costs. It should be noted that available sales tax revenue will likely decrease in the future due to the impact of annexation. Currently, financing is NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 390 planned for a $12 million wastewater treatment plant, the Ogden interceptor, and the NorthChase interceptor. Negotiations with the City of Wilmington may reduce the cost of the wastewater treatment plant if the County and City move toward expanding and upgrading the City's existing treatment plant. Also, pressure to expand the County's water system may increase. Two studies are funded at the direction of the District Board to monitor the effects of growth on the area. One study will result in a comprehensive drainage management plan for an estuarine creek. The study may recommend drainage improvements, design standards, and regulations or some other management tool. The District is continuing an on-going groundwater study that will show the groundwater location, amount available, and water quality. FIRE SERVICE DISTRICT: The recommended budget for the Fire Service District maintains the current tax rate of 2.5 cents. The Board of Fire Commissioners requested that the tax rate be increased to 5 cents to fund fire suppression along the Highway 421 North Industrial Corridor. No tax increase is recommended; however, $2,000,000 will be appropriated from the Fire Service Fund Balance with placement of $1,861,453 in an administrative reserve to fund some major improvements requested by the Board of Fire Commissioners. A Fire Services Administrator has been hired, and the current tax rate and appropriation of the Fund Balance will allow the Fire Service District to move forward in the next fiscal year. Also, the City's annexation plan will impact the Fire Service District making it prudent to maintain the current tax rate until annexation has taken place. A penny on the tax rate in the Fire Service District generates about $496,000. CAPITAL PROJECTS: There is a great deal of concern about the infrastructure of the County not growing sufficiently to support the rapid growth that is taking place. Infrastructure needs and capital needs are very expensive and cannot be supported without a greater increase in the tax rate. There is $300,000 budgeted for transfer to capital projects. This funding could be used to purchase land and start the design process for a library in the Castle Hayne area. FUTURE CONCERNS: The annexation planned by the City of Wilmington will significantly affect future budgets. The evolving capital needs of the County must be addressed in a responsible and timely manner in order to provide services and adequate infrastructure to meet projected growth. Welfare Reform efforts at the Federal and State levels will impact County budgets and its citizens as well as the challenge of disposing of solid waste in an environmentally and economically responsible manner. Charts were presented on New Hanover County expenditures and revenues. Chairman Greer inquired as to the funding differences in expenditures from the last fiscal year? Budget Director, Cam Griffin, responded that expenditures continue to increase for human services and the schools with a decrease in expenditures for the general government. Chairman Greer asked if human services expenditures increased more than expenditures for the schools? Budget Director Griffin explained that expenditures for human services and schools decrease and increase without one totally outweighing the other; however, the revenue percentage for both entities remained approximately the same. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 391 Chairman Greer asked if the $2,000,000 appropriated from the Fire Service District fund balance would create a sizable increase in the tax rate next year, and if these funds would be used for a one-time expenditure, or would it become an on-going expenditure? Budget Director Griffin commented on the unknowns about the fire service because of the City's annexation plan and stated the fire tax may increase next year; however, allowing the current tax rate to remain in place for FY 1996-97 would not cause the tax rate to increase more than normal for FY 1997-98. The use of the $2,000,000 appropriation from the Fire Service fund balance will depend on the plan designed to provide fire service to the Highway 421 North Industrial Corridor, which will be a one-time appropriation for the capital project; however, if fire fighters have to be paid, this will become an on-going expenditure. County Manager O'Neal reported the fund balance appropriation will be used to lay the foundation for the creation of the staffing process to provide fire service to the Highway 421 North Industrial Corridor, which will become an on-going expense. However, the tax rate for the Fire Service District is much lower than in other counties. Commissioner Barone inquired as to whether the $1,000,000 for the Department of Social Services was due to the County's share for Medicaid? County Manager O'Neal responded that $833,000 of the increase for the Department of Social Services was for Medicaid. Commissioner Barone noted that Medicaid costs have increased over $1,000,000 for the last three budget years; however, there appears to be a small decrease this year. She commented on the in- home services being provided by various agencies, such as Elderhaus, and requested a report reflecting the amount of money being saved in the County's Medicaid share through the provision of these services, particularly for Elderhaus since the County just approved a $200,000 funding commitment for expansion of this facility. She stressed the importance of keeping the public informed about why the County is using these agencies to provide in-home services. Budget Director Griffin responded that she would be glad to furnish those figures and reported the major reason for the increase in Medicaid was because of the coverage change in the eligibility criteria for Medicaid. County Manager O'Neal agreed and reported the increase in the aging population along with the change in the eligibility criteria had increased the cost of Medicaid reimbursement for the County. Commissioner Barone stressed the importance of the Commissioners being advised about any legislation that expanded the Medicaid eligibility criteria so the Board can seek relief on the federal level from the congressional delegation. She requested the County Manager to keep the Board informed in the future and forward a report to her on this recently enacted legislation. Consensus: After discussion of the need to schedule another Budget Work Session before the June 3, 1996, Public Hearing on the FY 1996-97 Budget, it was the consensus of the Board to schedule a Budget Work Session on September 30, 1996, following the Staff Meeting in Room 501 of the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. Discussion was held on the information to be discussed at the Budget Work Session. Commissioner Barone suggested discussion of the proposed funding for outside agencies comparing the requests in FY 1995-96 to the proposed funding for FY 1996-97. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 392 Chairman Greer requested figures on the amount of revenue generated from a $1.00 tip fee. Commissioner Barone requested further review of the Environmental Management Budget. Vice-Chairman Mathews commented on the need for a Public Information Officer and stated he would be in favor of increasing the Administration Budget to include this position as well as a central information number without the use of phone mail to handle public inquires. County Manager O'Neal advised that he would prepare a report on the costs of hiring a Public Information Officer and installing a central telephone number for discussion of this topic at the Budget Work Session on May 30, 1996. Vice-Chairman Mathews commented on the Dinamation Exhibit at the Cape Fear Museum and reported he read in the paper that the fee had been increased from $3.00 to $5.00. He expressed concern for charging $5.00, which in his opinion, was too much and would keep many people from seeing the exhibit. County Manager O'Neal advised that the fee increase would be only for the period of time that the Dinamation Exhibit was on display. He explained that when the Board approved the agreement with the Museum for the Dinamation Exhibit, the fee increase was part of the agreement. Commissioner Barone reported there should be scheduled free days for the public and she requested the Manager to check into this matter and report back to the Board. BREAK Chairman Greer called a break from 10:40 A.M. until 10:55 A.M. DISCUSSION OF LAND ACQUISITION FOR CONSTRUCTION OF A MIDDLE/HIGH SCHOOL COMPLEX County Manager O'Neal reported Mr. George W. Hance, Jr., Assistant Superintendent of Schools, made a presentation on three possible sites for the construction of a Middle/High School Complex. The Board deferred action on selecting a site until further evaluation could be made on one of the three sites and action had been taken by the Board of Education as to the preferred site. Mr. Hance reported the Board of Education met on May 8, 1996, and selected the Efird parcel (Site #1) after a review of the three sites, which included the information presented to the Board of County Commissioners by Mr. Phil Triece relative to the Sobol parcel (Site #2). The additional information on the Sobol site did not change the rating of the land. The Efird site was recommended because of its location with excellent road frontage, access to utilities, and its shape and depth. The Sobol site did not increase in its rating because water was not available to the parcel of land. Vice-Chairman Mathews asked Mr. Hance if any power lines crossed or bordered the Efird site? Mr. Hance stated to the best of his knowledge, no power lines crossed or bordered the Efird Site. Commissioner Sisson asked Mr. Hance if he had seen the pictures of the Efird site that show the power lines and transmission poles? Mr. Hance stated he had not seen the pictures. After seeing the pictures, Mr. Hance asked Mr. Phil Triece if the pictures were taken on the Efird Site? NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 393 Mr. Triece responded that the pictures were taken on the Efird site. The representative from Carolina Power & Light Company informed him that two of the transmission poles were located on the Efird property, and he stated this representative was present and would be glad to testify as to the location of the poles on the site. Mr. Triece stated this information was presented to Mr. Hance and the Board of Education prior to the meeting held on May 8, 1996. Mr. Hance stated he did not recall this information being presented. Vice-Chairman Mathews asked if the recommendation by the consultant to locate the school complex further down Carolina Beach Road was considered by the Board of Education when selecting the Efird site? Mr. Hance responded the Sobol site was a better location for a new high school according to the consultant; however, the lack of water availability to this site was the major concern discussed by the Board of Education. Commissioner Sisson asked if the power transmission poles would change the rating of the Efird site? Mr. Hance responded that the school complex could be located on the Efird site with no buildings placed near the power poles. He referenced the costs involved and problems that could be experienced with trying to provide water and an access road to the Sobol site and stated this was why the Efird site was preferred. He, also, advised the Board that a wetlands determination by the Corps of Engineers had not been made on the Sobol site. Commissioner Barone inquired as to whether a wetlands determination had been made on the Efird site? Mr. Hance responded that a wetlands determination had been made on the Efird Site. Commissioner Barone requested Mr. Triece to address the water issue. Mr. Triece reported the nearest water source to the Sobol site was 1,300 linear feet. To run a ten to twelve inch water line 2,000 linear feet into the site would cost approximately $64,000. The location of the auditorium in the final design plan will determine if additional water capacity will be required. Currently, Cape Fear Utilities is in the final stages of negotiation with the City of Wilmington for the purchase of its water system. Once the City purchases the system, the water pressure will be sufficient. If this sale does not occur, an elevated storage tank could be constructed to provide sufficient water capacity to the site at a cost of $125,000 depending on the size. Discussion was held on the price of the Sobol property. Mr. Triece reported the asking price of the property is $3,750,000 with an additional $64,000 for installing a ten to twelve inch water line. If an elevated storage tank has to be constructed or placed on the site, this cost would have to be added to the figure. Mr. Hance reported once the water line is installed, the water capacity problem will not be resolved because the School System cannot be responsible for maintenance and operation of the elevated water storage tank. Mr. Triece advised that the School System would not be responsible for maintaining an elevated water tank under any type of agreement. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 394 Commissioner Barone commented on the new elementary school being constructed near the Efird site and asked if the Board of Education had any concern about placing an elementary school near a middle/high school complex because of the age difference in the children. Mr. Hance responded that this issue was discussed by the Board of Education; however, the elementary school would be separated from the high school by the middle school. He advised that many school complexes comprising of an elementary school, middle school, and high school are being constructed on one site throughout the country. Commissioner Barone commented on the number of buses that would be located at the proposed complex and asked if the buses would be used by the different age groups? Mr. Hance reported the buses would not be shared. The elementary school would have a separate parking lot for buses and a joint parking lot would be used for the middle school and high school. Also, vehicular and bus traffic would be separated. Mr. Triece reported the rights-of-way on the Sobol property had been addressed, and he advised the Board that Dr. Sobol had agreed to dedicate the easements. Also, at the last meeting, discussion was held on access from the Efird site to George Anderson Drive with the Board being informed there would be no access because the land was now reserved for construction of apartments. As the complex is currently designed, both accesses will be within a short distance of each other, which will create a tremendous amount of traffic accessing the Efird site during school hours on Carolina Beach Road. The Sobol site does allow for better accessibility with less traffic in the area. Also, the consultant hired for redistricting has recommended selecting a site further south on Carolina Beach Road in order to better accommodate the new district lines. He requested the Board to consider these factors before deciding on the Efird site. Commissioner Barone stated if more schools were privatized and tax credits or tax vouchers were issued, the County would not have to construct new schools. Mr. Charles M. Lineberry, Jr., a member of the Board of Education, expressed appreciation to Mr. Triece for the excellent information furnished on the Sobol property. He reported the Board of Education did receive a report reflecting a criteria rating for the three sites. The Sobol site was given the highest rating on location; however, due to the lack of water availability, the need to build 6,000 feet of road to access the site, and one intersection for all the traffic generated by the school complex was the reason why the Board of Education decided on the Efird site. Even though the Sobol property was less expensive per acre, the costs involved with providing water at a sufficient pressure and building a road to the site, would end up costing almost the same as the Efird property. With all of these factors considered, the Board of Education felt it would be a better use of the taxpayers dollars to spend the money for the Efird site, which is better suited today as opposed to waiting two years to see if the Cape Fear Utilities water system will be purchased by the City or an elevated water storage tank will be needed. County Manager O'Neal reported the Assistant County Manager, Dave Weaver, had visited both sites and would like to comment on the wetlands regulations and permits. Assistant County Manager Weaver advised that one specific difference between the Efird and Sobol sites was that the Corps of Engineers had signed off on a map of the Efird site identifying the exact location of wetlands, which will not interfere with placement of the school complex on this site. The Sobol property does not NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 395 have this type of analysis. After walking around the Sobol property, he feels that as much as 50% of the property could be classified as wetlands. To receive a wetlands determination by the Corps of Engineers will take approximately six months. Commissioner Caster expressed concern for the cost per acre on either site and asked if negotiations had occurred? Mr. Hance responded that no negotiations had occurred and stated appraisals of the site should occur first before trying to negotiate a purchase price. Commissioner Caster commented on the conditions listed in the letter forwarded by Mr. Hance and requested an explanation. Mr. Hance responded any offer of purchase would be contingent upon the following conditions: (1)Approval of Wetlands Study by the Corps of Engineers (2)Soil Boring Analysis to a depth of at least 15 feet acceptable to the School System and the County. (3)Appraisals suitable to the School System and the County. (4)An Environmental Assessment satisfactory to the School System and the County. Vice-Chairman Mathews inquired as to whether the action taken by the Board of Education was a regular item on the agenda? Mr. Lineberry responded that this matter was presented as an additional item. Vice-Chairman Mathews expressed concern for an item of this significance being considered as an additional item and voted on without all members of the Board of Education being present. Commissioner Barone reported there were only five members of the Board of Education present at that meeting. Motion: After discussion of the excellent presentations on the Efird and Sobol sites, Commissioner Sisson MOVED to purchase the Efird site for the proposed school complex. Chairman Greer asked Commissioner Sisson if he would like to include a dollar amount or not to exceed figure in the motion. Commissioner Caster recommended placing a figure of $42,500 per acre for the purchase of the Efird site contingent upon the conditions outlined by Mr. Hance. Amended Motion: Commissioner Sisson AMENDED THE MOTION, SECONDED by Commissioner Caster to purchase the Efird site for the proposed school complex at $42,500 per acre instead of the requested $45,000 per acre contingent upon approval of a Wetlands Study by the Corps of Engineers; a Soil Boring Analysis to a depth of at least 15 feet acceptable to the School System and the County; appraisals suitable to the School System and the County; and an Environmental Assessment satisfactory to the School System and the County. If the price offer is not satisfactory, this matter can be revisited at a future date. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Caster Commissioner Sisson Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Barone NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 396 STATUS REPORT ON ACTIVITIES OF THE I-40 ASSOCIATION Mr. Dana E. Page, Chairman of the New Hanover County Chapter of the I-40 Association, presented the following status report on the I-40 Association. The I-40 Association is a unique organization which uses the talents and resources of individual volunteers, private industry, and local governments to carry out the recommendations of the I-40 Study. The Association utilizes volunteers in lieu of paid staff to carry out economic development along the I-40 corridor. A brochure explaining the purpose of the I-40 Association has been prepared at no cost through assistance from the Carolina Power & Light Company. The first annual meeting and combination trade show were held in April, 1995, with Commissioner Barone speaking at the meeting. The trade show was opened to the nine counties along the corridor, and the State Ports Authority had a booth as well as many other area businesses. City Manager, Mary Gornto, Councilmember Laura Padgett, and Carolina Beach Mayor Anthony Loreti were among many of the officials that attended the meeting and trade show. Secretary of Transportation, Garland Garrett, Jr., presented the Governor's Transportation 2001 Plan followed by a period of questions and answers. The Brunswick County Board of Commissioners presented a resolution to the I-40 Association requesting support of the timely construction of the Brunswick County portion of the I-40 Bypass from US Highway 421 to US Highway 17 South and opposing any delay of the said project as proposed in the Governor's Transportation 2001 Plan. Brunswick County has a high rate of unemployment due to the lack of industry and commerce in the area. Completion of the Wilmington Bypass would serve as a catalyst for the location of major industry into that area. After the annual meeting, a Rural Economic Reinvestment Demonstration Program was started to establish a self-sustaining, long-term public-private partnership to plan, implement, and finance comprehensive local programs to create new and expanded economic opportunities for corridor residents. Currently, there is a partnership with the Rural Center in Raleigh, North Carolina, to work with 85 rural counties throughout the State to develop public- private partnerships. The Association is currently working with the State Legislature during the Short Session to establish a State Economic Investment District. The plan would be coordinated with Welfare Reform to use the federal block grant funding to initiate local economic reinvestment plans. If the federal block grant is enacted, the I-40 Association hopes to invest resources received from the grant to create economic opportunities in local economic development programs. Eligible programs would be water and sewer facilities, basic industrial buildings, industrial parks, natural gas lines, community college training facilities, rail, public buildings, and other items. Discussion was held on the last time the local I-40 Chapter met. Mr. Page responded the last meeting was held in December 1995. The next meeting was not scheduled until September 1996 in order to allow time for the Association to lobby the N. C. Legislature to establish a State Economic Investment District during the Short Session. Commissioner Barone asked if the lobbying efforts were on- going. Mr. Page responded that the lobbying efforts were on-going, and he reported on the number of legislatures that have become involved in the process. Chairman Greer advised that one member of the local committee had resigned feeling that this was an unstructured, unaccountable NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 397 committee that would not accomplish anything worthwhile with or without his participation. He requested Mr. Page to comment on these remarks. Mr. Page stated this person resigned because he had a difference of opinion from the other members. Chairman Greer commented on confusing the State I-40 Association with the local I-40 Chapter, and he inquired as to the number of members present at the last meeting. Mr. Page responded no one attended the meeting at that time; however, he was contacted by the members about their non- attendance. Chairman Greer stated he felt that Mr. Page had a strong personality and had not involved the members of the local committee in the entire I-40 process. He expressed concern for this non- involvement and requested direction from the Board of County Commissioners. Commissioner Sisson commented on the need for the local I-40 Committee to have purpose and made the following recommendations: (1)Better coordination with the other economic development groups in the region, specifically the Council of Governments, and other active groups in New Hanover and Pender counties. A report should be prepared to show proof that this coordination has occurred. (2)A review and study of whether a local committee is needed versus appointing two representatives to attend the I-40 Association meetings held in Kenansville provided that New Hanover County is not obligated in any manner. (3)A report on the various lobbying efforts occurring in Raleigh with the State Legislature. Mr. Page responded most of the counties have two representatives that attend meetings in Kenansville, North Carolina. New Hanover County is unique because of the establishment of a local committee; therefore, only two meetings are held throughout the year. If the Board desires for the local committee to meet more frequently, he will be glad to proceed in that direction. Commissioner Barone explained that New Hanover County is more progressive than the surrounding counties; however, involvement by the County assists the other counties in many ways. Since New Hanover County is part of the I-40 corridor, it is important for the County to be involved because of regionalism. Chairman Greer recommended more involvement of the local members when making decisions and informing the Board of County Commissioners before taking a position on any item. Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to increase the involvement of the local I-40 Committee members; require periodic reports on lobbying efforts at the State level as well as other positions being considered by the Association; require reports on coordination among existing economic development groups, such as the Committee of 100 and the local Council of Governments; and present another status report to the Board of County Commissioners on October 21, 1996. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSIDERATION OF COASTAL RESOURCES COMMISSION SOLICITATIONS FOR NOMINATIONS Chairman Greer announced there were vacancies on the Coastal Resources Commission and requested the members of the Board to NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 398 solicit persons interested in serving on the commission. Consensus: After discussion of the appointment process, it was the consensus of the Board for each Commissioner to recruit nominees with those applications being forwarded to the Office of the Governor for consideration. CONSIDERATION OF AGREEMENT WITH SIGMA RECYCLING, LLC FOR RIPARIAN CORRIDOR ENCROACHMENT Attorney Gregory A. Losee, representing Sigma Recycling, LLC, reported he was present to answer any questions about the agreement presented at the meeting held on May 6, 1996. He presented a drawing of the area outlining the channel line where the vessel would be berthed and reported the immediate need for the County's property had been alleviated because the company had made better use of its present property. However, Sigma Recycling, LLC would like for the County's property to be considered as a contingency in case the property is needed at a future date. Commissioner Barone inquired as to the length of time that would be involved if a vessel was berthed and encroached on the County's property. Attorney Losee responded the abatement process takes ten to twelve weeks with the dismantling process requiring another ten to twelve weeks. Vice-Chairman Mathews inquired as to whether Sigma had a problem with providing a surety bond. Attorney Losee responded there would be no problem with issuing a surety bond. Commissioner Sisson commented on hearing that one of the major partners of Sigma Recycling, LLC was no longer with the company and he asked if this was correct? He, also, expressed concern for bonding a holding company without knowing the partners of the group or corporations involved? Attorney Losee responded that one individual was looking for another opportunity; however, he was not a principal financial backer of the company, only an operator. Sigma Recycling, LLC is a member-managed limited liability company comprised of two members, the Delaware Limited Partnerships with the financial principals operating out of New York as shown in the State of Delaware's public records. As to a Letter of Credit, he did not feel the principals in New York would have a problem with issuing this type of document. The financial stability of the company is excellent. Commissioner Sisson inquired as to the amount of time that would be involved with enforcement of a surety bond through the court system if the County had to go through several holding groups to receive the money? Attorney Losee responded that such a document could be prepared to avoid any problems with enforcing a surety bond. Commissioner Sisson commented on the removal of hazardous materials and inquired as to whether the bunkers on the vessels had been emptied before being docked? Attorney Losee responded that the U. S. Navy is responsible for removing hazardous materials before the vessels are received by Sigma. The residual in the pipes and tanks are cleaned by Sigma through a Coast Guard approved firm for removal of oily waste. Also, the vessels are insured against the possibility of a release occurring. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 399 Commissioner Sisson reported when the U.S.S. North Carolina was berthed in Wilmington and the Liberty vessels were dismantled, the bunkers were not empty. Attorney Losee responded these regulations have been revised and the Navy is removing the materials. County Attorney Copley recommended a Letter of Credit in lieu of a surety bond because of past difficulties in collecting these bonds. The Board was requested to place a dollar figure on the Letter of Credit with approval contingent upon receipt of all requisite insurance certificates as part of the agreement. Commissioner Sisson recommended requesting the County Attorney to check with other jurisdictions throughout the country where this type of activity has occurred in order to assign a figure to the Letter of Credit before taking any action. Commissioner Caster commented on the poor record of this company and recommended taking no action at this meeting. During this period of time, the County Attorney can work with Attorney Losee in drafting an agreement that will fully protect the County through a Letter of Credit as well as address any other areas of concern. County Attorney Copley reported for clarification of the remarks received, she understands that the agreement is not being approved at this time; however, if the space is needed at a future date, an agreement will be prepared and considered by the Board at that time. During this period, the Legal Department will draft an agreement to require a Letter of Credit at a designated dollar amount as well as place a term on the length of time that the vessel can be berthed on County owned property. The Board agreed with the statements made by the County Attorney. CONSIDERATION OF BUDGET AMENDMENT #96-0213 AND CONTRACT TO CONVEY THE PORTER'S NECK SUBSTATION TO CO-OWNERSHIP BETWEEN NEW HANOVER COUNTY AND THE OGDEN VOLUNTEER FIRE DEPARTMENT County Attorney Copley advised that an agreement had been reached that was satisfactory to the County and the Ogden Volunteer Fire Department. In Section 8 of the agreement, the Ogden Volunteer Fire Department has agreed to amend the 125% to 100% relative to the parties' ownership if the agreement is terminated. Motion: Commissioner Sisson, MOVED, SECONDED by Commissioner Barone to approve the contract as amended and the associated Budget Amendment as listed below. Upon vote, the MOTION CARRIED UNANIMOUSLY. Fire District/Fire Department Debit Credit Fire District/Fire Departments Appropriated Fund Balance $17,500 Ogden Volunteer Fire Department $17,500 Purpose: To appropriate $17,500 of the Fire District Fund Balance for additional funding for the Porters Neck Substation since $60,000 was included in the FY 1995-96 Budget. The contract to convey the substation will create a co-ownership between New Hanover County and the Ogden Volunteer Fire Department. A copy of the contract is on file in the Legal Department. BREAK Chairman Greer called a break from 11:37 A.M. until 11:48 A.M. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 400 PUBLIC HEARING TO CONSIDER THE ADOPTION OF RESOLUTIONS FOR THE ISSUANCE OF HOSPITAL REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $66,000,000 FOR IMPROVEMENTS TO NEW HANOVER REGIONAL MEDICAL CENTER Chairman Greer advised that a Public Hearing was required to consider the issuance by the County of its hospital revenues in an aggregate principal amount not to exceed $66,000,000 for the following purposes: (A)Financing, or reimbursing New Hanover Regional Medical Center, a North Carolina non-profit corporation, for financing a portion of the costs of the construction of a new Oncology Center, Clinical Laboratory, and Outpatient Clinic building with a connecting concourse to the Medical Center; the renovation and addition of public area; the renovation of the Emergency Department and the Pediatrics unit; the purchase of furnishings to be added to the new building; the upgrade and installation of communication and information services; the construction of a Cardiac Surgery Recovery Unit; and the relocation of the heliport and the construction of the East Parking area. (B)Paying a portion of the interest accruing on the bonds. (C)Paying certain expenses in connection with the authorization and issuance of the bonds. The project will be located at New Hanover Regional Medical Center, 2131 South 17th Street, Wilmington, North Carolina 28401. The hospital is owned by the County and operated by the Corporation. Chairman Greer called for a motion to proceed to hold a Public Hearing on the project and the issuance of hospital revenue bonds to finance the project. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Sisson to open the Public Hearing. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer inquired as to whether anyone present would like to step forward to comment on the proposed project and issuance of hospital revenue bonds? No comments were received from the public. Chairman Greer called for a motion to close the Public Hearing. Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster to close the Public Hearing. Upon vote, the MOTION CARRIED UNANIMOUSLY. Commissioner Sisson commented on previous concerns about the Oncology Center and stated after discussions with members of the Medical Community, Commissioner Caster, and members of the Hospital Board of Trustees, these concerns had been assuaged. He emphasized the importance of on-going dialogue between the Hospital Board of Trustees and the Board of County Commissioners to avoid misunderstandings about major issues. Vice-Chairman Mathews agreed, and he expressed concern for the Hospital Board of Trustees taking action on a major issue when Commissioner Caster, the Board's representative, was not able to attend the meeting. According to Commissioner Caster, he had notified the Trustees that he could not attend and the meeting was held with a decision rendered that created a great deal of controversy throughout the community. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 401 Commissioner Caster agreed with Vice-Chairman Mathews and reported he found out late in the process about the meeting scheduled to consider the salary increase for the President of New Hanover Regional Center. At that time, he wrote a letter approximately three days in advance of the meeting informing the Hospital Trustees he would not be able to attend. He commented on the various committees within the Hospital Board of Trustees that spend hours of time addressing an issue before being presented to the full board. He assured the Commissioners and general public that no rubber stamping occurs on issues addressed by the Hospital Board of Trustees. He apologized for not having a mechanism in place to better communicate with the Board of County Commissioners and recommended focusing on better communication between the two boards in the future. Vice-Chairman Mathews, again, reiterated the importance of the representative of the Board of County Commissioners being present when action is being considered on a key issue. He stated, this procedure should apply to all boards, not just the Hospital Board of Trustees. Chairman Greer called for a motion to approve the project and the issuance of the revenue bonds. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Mathews to approve the project and issuance of revenue bonds. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer advised that the next order of business was to consider and take action on the resolution directing the filing of an application with the Local Government Commission for approval of the issuance of the bonds and hiring of bond counsel and underwriters for the financing. Motion: Chairman Greer introduced and read a resolution of the County of New Hanover, North Carolina directing the filing of an application with the Local Government Commission for approval of the issuance of hospital revenue bonds and MOVED TO ADOPT THE RESOLUTION with an effective date of May 20, 1996. The MOTION WAS SECONDED by Commissioner Sisson. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 18. Chairman Greer advised that the next order of business was to consider and take action on a series resolution providing for the issuance of the bonds in the principal amount not exceeding $66,000,000, including approvals respecting an amendment to a lease agreement, an official statement and bond purchase agreement and providing for other matters in connection therewith. The Series Resolution delegates to the Finance Director of the County the authority to determine certain terms of the bonds subject to limitations set forth in the Bond Order adopted on October 6, 1993, and such Series Resolution. Motion: Chairman Greer introduced and read the Series Resolution entitled "SERIES RESOLUTION AUTHORIZING AND APPROVING THE ISSUANCE AND SALE OF NOT EXCEEDING $66,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA HOSPITAL REVENUE BONDS (NEW HANOVER REGIONAL MEDICAL CENTER PROJECT) SERIES 1996, TO PROVIDE FUNDS TO ACQUIRE, CONSTRUCT AND EQUIP IMPROVEMENTS TO THE HEALTH CARE FACILITIES OWNED BY THE COUNTY, AND AUTHORIZING AND APPROVING THE FORM AND TERMS OF THE OFFICIAL STATEMENT AND THE BOND PURCHASE AGREEMENT AND THE EXECUTION AND DELIVERY OF THE OFFICIAL STATEMENT, A FIRST AMENDMENT TO THE LEASE AGREEMENT AND THE BOND PURCHASE AGREEMENT AND THE DISTRIBUTION AND USE OF THE PRELIMINARY OFFICIAL STATEMENT, THE OFFICIAL STATEMENT AND THE BOND ORDER IN CONNECTION WITH THE PUBLIC OFFERING OF THE BONDS. CHAIRMAN GREER MOVED TO ADOPT THE SERIES RESOLUTION AS READ. THE MOTION WAS NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 402 SECONDED BY COMMISSIONER CASTER. UPON VOTE, THE MOTION CARRIED UNANIMOUSLY. Commissioner Sisson reported the bonds are fully insured and the County will not be responsible for paying the bonds if some type of catastrophe should occur. Deputy County Manager, Andrew J. Atkinson, advised that revenue bonds pledge the net revenues of New Hanover Regional Medical Center, not the full faith and credit of New Hanover County. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XXIII, Page 18. DISCONTINUANCE OF POLICY PERMITTING PUBLIC USE OF THE ASSEMBLY ROOM IN THE NEW HANOVER COUNTY COURTHOUSE Motion: Commissioner Mathews MOVED to discontinue use of the Assembly Room by the general public. Commissioner Barone SECONDED THE MOTION. Commissioner Caster commented on the Courthouse being a public building and expressed concern for not allowing the Assembly Room to be used by the public for weddings and other social events. He recommended appropriating money for repair of the room when necessary. Commissioner Barone commented on the cost involved with refinishing the floor, readjusting the sound system, and the staff time required for scheduling public events. She advised that $1,375 had been collected in fees this year and reported this amount of money would not begin to repair the damages that have occurred while renting the Assembly Room. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barone Commissioner Sisson Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Caster COMMITTEE APPOINTMENTS Appointment of James E. Moore, Jr. to serve on the Wilmington/New Hanover County Insurance Advisory Committee Chairman Greer advised there was one vacancy on the Wilmington/New Hanover County Insurance Advisory Committee with only one application received in the name of James E. Moore, Jr., who would like to be reappointed to serve another three-year term. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to reappoint Mr. James E. Moore, Jr., to serve a three-year term on the Wilmington/New Hanover County Insurance Advisory Committee with the term to expire June 8, 1999. Upon vote, the MOTION CARRIED UNANIMOUSLY. MEETING CONVENED FROM REGULAR SESSION TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER & SEWER DISTRICT Chairman Greer convened from Regular Session at 12:50 P.M. until 1:30 P.M. to hold a meeting of the New Hanover County Water and Sewer District. ADDITIONAL ITEMS Discussion of Legion Stadium County Manager O'Neal commented on the Legion Stadium Committee and reported an agreement had been reached with the NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 403 recommendation being presented by the City Attorney to the City Council on Tuesday, May 21, 1996. The agreement will be between the City of Wilmington and New Hanover County. A Legion Stadium Commission will be re-established with two representatives from the City Council, two representatives from the Board of County Commissioners, two representatives from the schools, and one member from the Friends of Legion Stadium, Inc. The main objective of the Commission will be to make recommendations for the operation and usage of the facility as well as the future ownership of Legion Stadium. The schools will be the priority user of Legion Stadium without a fee charged, and the City will operate and maintain the facility through input from the Legion Stadium Commission. The County will contribute funding in a matching cost arrangement as recommended by the Legion Stadium Commission with approval by the Board of County Commissioners and City Council. The Board was requested to approve the concept of this agreement. Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster to approve the concept as outlined by the County Manager. Upon vote, the MOTION CARRIED UNANIMOUSLY. Discussion of Human Services Allocation Advisory Committee Chairman Greer advised that a letter had been received about Ms. Phyllis Roebuck serving on the Human Services Allocation Advisory Committee and her ability to be objective when deciding on CBA funding since she is a Juvenile Courts Counselor. He noted that Ms. Roebuck has been very dedicated while serving on the committee, but stated a conflict of interest could exist. He requested direction from the Board. Commissioner Barone commented on this being the first complaint received and stated she would hesitate to make a decision based on one letter. Further discussion was held on the number of members serving on the Human Services Allocation Committee who have served more than two terms. Commissioner Sisson recommended more frequent rotation of members that serve on the committee. Consensus: After further discussion, it was the consensus of the Board to request Staff to check into the complaint received as well as the number of members who have served more than two terms and report back to the Board. Discussion of Participating in Hosting the North Carolina Board of Transportation Meeting to be Held in Wilmington During September, 1996 Chairman Greer announced that the Chamber of Commerce and City of Wilmington were involved with hosting the N. C. Board of Transportation meeting to be held in Wilmington in September, 1996. He advised that New Hanover County has been invited to participate in hosting the meeting, and he requested direction from the Board. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Sisson to participate with the City of Wilmington and Chamber of Commerce in hosting the September meeting of the North Carolina Board of Transportation. Upon vote, the MOTION CARRIED UNANIMOUSLY. Report on Attending the Fullbright Program at UNCW Commissioner Caster reported on attending the Fullbright Program presented by a professor at UNCW about beach erosion. He stated the slide presentation was excellent and informative, and he asked if the Board would like to schedule a Work Session to see the program. After discussion, the County Manager was requested to place this slide presentation on a future agenda and work with UNCW in scheduling the event. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 25 REGULAR MEETING, MAY 20, 1996PAGE 404 Discussion of Item 5 in the Legislative Packet Forwarded to the Local Legislative Delegation Commissioner Caster expressed concern for Item 5 which places a $3.00 surcharge on residential insurance policies and a $6.00 surcharge on commercial policies for supplemental funding of State and Emergency Management agencies. He requested the Board to withdraw this item from the legislative packet. County Attorney Copley reported the bill was being considered as a state-wide bill. County Manager O'Neal explained that a portion of the proceeds would be transferred into a trust fund to be used to supplement the State when a disaster occurs. A majority of these funds would be used to assist homeowners and business owners to recover from a hurricane or any other natural disaster. A small amount of the proceeds would be used to fund emergency management departments throughout the state. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barone to withdraw the proposed bill until further information is provided to justify support of the bill. The County Attorney was requested to write a letter to the local legislative delegation informing them that New Hanover County desires to withhold its support of the bill at this time. Upon vote, the MOTION CARRIED UNANIMOUSLY. CLOSED SESSION County Attorney Copley requested a Closed Session in accordance with NCGS 143-318.11A-3 for the purpose of giving instructions to the attorney concerning the handling or settlement of a claim, judicial action, or administrative procedure. She requested the Board to allow the Human Resources Director, Andre' Mallette, to attend the Closed Session. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to hold a Closed Session as requested by the County Attorney. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer convened from Regular Session to Closed Session at 2:05 P.M. Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barone to reconvene to Regular Session. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer reconvened to Regular Session at 2:28 P.M. He reported that no action was taken in the Closed Session. ADJOURNMENT Chairman Greer adjourned the meeting at 2:29 P.M. and announced that after lunch a Work Session would be held in Room 501 of the County Administration Building, 320 Chestnut Street Wilmington, North Carolina to hear a presentation on the Internet System. Respectfully submitted, Lucie F. Harrell Clerk to the Board