1993-01-19 Regular Meeting
MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 278
ASSEMBLY
The New Hanover County Board of Commissioners met in Regular
Session on Tuesday, January 19, 1993, 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 welcomed all persons present and called the
meeting to order.
INVOCATION AND PLEDGE OF ALLEGIANCE
Reverend Wayne Barkley, Pastor of the New Life 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 present would
like to present an item not listed on the Regular Agenda or comment
on an item listed on the Consent Agenda.
No items or comments were received.
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APPROVAL OF CONSENT AGENDA
Chairman Greer reported that Commissioner Sisson has requested
withdrawal of Consent Agenda Item #13 for further discussion due to
circumstances regarding the financial reporting of the Volunteer
Fire Departments.
Chairman Greer commented on Consent Agenda Item #5 and
expressed concern for a five-year agreement with Wachovia Bank and
recommended approval of the agreement for two years.
Finance Director, Andrew J. Atkinson, stated he has no problem
with reducing the term from five to two years.
Motion: After further discussion, Vice-Chairman Mathews MOVED,
SECONDED by Commissioner Sisson to approve the Consent Agenda with
removal of Item #13 and an amendment to Item #5 for approval of an
agreement with Wachovia Bank for two years instead of five years as
proposed. Upon vote, the MOTION CARRIED UNANIMOUSLY.
CONSENT AGENDA
Approval of Minutes
The Commissioners approved the minutes of the Regular Meeting
of January 4, 1993, as presented by the Clerk to the Board.
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Adoption of Resolutions Requesting the Addition of Roads to the
State Highway System
The Commissioners adopted resolutions requesting addition of
the following roads to the State Highway System:
-Vine and Blossom Streets
-Hervey Lane
-Roads in Oxford Place Subdivision
-Roads in Fox Run Farm Subdivision
Copies of the resolutions are hereby incorporated as a part of
the minutes and are contained in Exhibit Book XX, Page 18.
Reappointment of Ernst Swart to Serve on the Nursing Home Advisory
Committee
The Commissioners reappointed Ernst Swart to serve a three-
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 219
year term on the Nursing Home Advisory Committee as nominated by
the Administrators of the nursing homes. The term is to expire
January 21, 1996.
Approval of Change Order for LS3P Contract for Parks Master Plan
The Commissioners approved a change order in the amount of
$3,750 on the LS3P contract for the Parks Master Plan. Due to the
acquisition of additional property and a second access road for the
Ogden Park, additional planning services were necessary to revise
the Master Plan. The County Manager was authorized to execute the
document.
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Award of Request for Proposal #93-0090 to Wachovia Bank of North
Carolina, N. A. for Banking Services for New Hanover county and
Approval of Contract #93-0090 with Wachovia Bank of North Carolina,
N. A.
The Commissioners adopted a resolution awarding a Request for
Proposal to Wachovia Bank of North Carolina, N. A. to provide
banking services for two years. Based on the evaluation of
proposals received, staff recommends awarding the proposal to
Wachovia Bank.
A copy of the resolution is hereby incorporated as a part of
the minutes and is contained in Exhibit Book XX, Page 18.
Rejection of Bids Received for Myrtle Grove Branch Library
Furnishings
The Commissioners adopted a resolution rejecting all bids
received for the Myrtle Grove Branch Library furnishings. After
review of the proposals by staff, it was recommended that all bids
be rejected due to a bidding procedure not being followed.
A copy of the resolution is hereby incorporated as a part of
the minutes and is contained in Exhibit Book XX, Page 18.
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Approval of Tax Collection Reports Through December 31, 1992
The Commissioners approved the following Tax Collection
Reports through December 31, 1992, 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 XX, Page 18.
Release of Value - Tax Department
The Commissioners released late listing penalties for persons
who certified they had listed on time; for persons listing in
another county; for persons who listed incorrect vehicles during
the listing period; and for persons who had never received
penalties for a late listing. The release of penalties was
recommended by the Tax Administrator.
A copy of the list is hereby incorporated as a part of the
minutes and is contained in Exhibit Book XX, Page 18.
The Commissioners approved value adjustments on properties as
recommended by the Tax Administrator for conditions that had not
been brought to the attention of the Tax Department.
A copy of the list is hereby incorporated as a part of the
minutes and is contained in Exhibit Book XX, Page 18.
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The Commissioners approved. delinquent applications for
exemption from property tax for the following organizations:
Love Chapel Church of God
Wilmington Baptist Association
86 Chev 7-passenger Van
R05414-020-001-000
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 280
Applications and letters explaining the late applications are
on file in the Tax Department.
Discovery Appeal for 1989 Cadillac Owned by the Greater Love(s)
Chapel
The Commissioners denied a tax exemption for the Greater
Love (s) Chapel as recommended by the Tax Administrator. The
vehicle was discovered by notice on September 30, 1992~ with no
response from the Church. The vehicle is used by the Pastor at
home and for commuting.
Letters and information explaining the appeal are on file in
the Tax Department.
Approval for Reclassification of General Services Worker position
to an Assistant Maintenance Mechanic in the Maintenance Section of
the waste-to-Enerqy Facility
The Commissioners approved a reclassification of a General
Services Worker position to an Assistant Maintenance Mechanic in
the Maintenance Section of the Waste-to-Energy Facility. The
reclassification will increase the salary from $15,183 to $17,198.
Funds are available in the FY 1992-93 Budget.
Ratification for Appointment of Joe Russo to Serve on the Human
Relations Commission as the Chamber of Commerce Representative
The Commissioners ratified the appointment of Mr. Joe Russo to
serve as the Chamber of Commerce Representative on the Human
Relations Commission. The term is to expire January 1, 1996.
DISCUSSION OF NEW HANOVER COUNTY FIRE SERVICE DISTRICT COMBINED
FINANCIAL REPORT THROUGH JUNE 30, 1991
Commissioner Sisson commented on Consent Agenda Item #13 and
expressed concern for the auditor, McGladrey & Pullen, reporting on
Page 1 of the combined Financial Report that the Volunteer Fire
Departments have not kept financial records of all monies received
from the County and how these funds have been expended in a manner
consistent with generally accepted accounting principles;
therefore, he would request that a representative of McGladrey &
Pullen or a County Official attest to the fact that the report as
presented has satisfied the terms of the contracts with reference
to generally accepted accounting principles. Emphasis was placed
on the importance of maintaining adequate control over the monies
allocated from the Fire Service District and how these funds have
been expended in order to avoid problems as recently experienced
with the North Wilmington Volunteer Fire Department.
Finance Director, Andrew J. Atkinson, stated many times small
units of government maintain their records on a day-to-day basis
with the writing of checks and deposits. When auditors prepare the
annual Financial Report, these daily records are converted to the
modified accrual basis. Most of the records are kept by volunteers
and in order to convert the records to a modified accrual basis the
services of a professional accountant would be required, which can
be costly.
After discussion, it was agreed to authorize Commissioner
Sisson to discuss with the Board of Fire Commissioners the need for
the Volunteer Fire Departments to maintain acceptable accounting
records that will accurately document how County funds are expended
and the amount of equipment owned by each station.
Motion: After further discussion, Commissioner sisson MOVED,
SECONDED by Commissioner Barone to accept the Financial Report as
presented by McGladrey & Pullen. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
WITHDRAWAL OF ITEM #6
Commissioner Barone requested withdrawal of a resolution
prepared at her request since it is the consensus of the Board that
this problem should be approached in a different manner.
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MINUTES OF REGULAR MEETING, JANUARY 19, 19.93
PAGE, 281
ADOPTION OF YARD WASTE ORDINANCE - FIRST READING
Director of Environmental Management, Ray Church, presented a
revised Yard Waste Ordinance with the following revisions.
-Article IV - Jurisdiction - On and after the first day of June
1993, this ordinance shall govern yard waste collections, disposal,
and recycling in New Hanover County, North Carolina.
-Article V - Definitions:
2. "Inert Debris" means solid waste which consists solely of
material that is virtually inert, such as brick, concrete,
rock and clean soil.
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3. "Land-clearing and Inert Debris Landfill" means a sanitary
landfill that is limited to receiving vegetative materials
such as stumps, limbs, leaves, grass, trimmings, untreated
wood, and virtually inert materials such as brick, concrete,
rock, and clean soil.
8. "Yard trash" means solid waste consisting solely of
vegetative matter resulting from yard maintenance or
landscaping maintenance (limbs, leaves, and grass trimmings,
etc. ) .
-Article VI - Yard Waste Handling
B. Beginning June 1, 1993, loads of unseparated municipal
solid waste exceeding 15% yard waste volume........
C. To be effective June 1, 1993, solid waste collectors shall
not co-mingle yard waste and municipal solid waste prior to
disposal.
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D. To be effective June 1, 1993, yard waste shall be
delivered separately to an approved yard waste processing
facility or disposal site.
G. section 2. The New Hanover County Land-Clearinq and Inert
Debris Landfill, located at the New Hanover County Secure
Landf i 11.
section 4. A land-clearinq and inert debris landfill approved
by New Hanover County and the North Carolina Department of
Environment, Health and Natural Resources, and permitted to
receive yard waste.
section 6. The New Hanover County Waste-to-Enerqy Facilitv
until June 1, 1993.
Commissioner Barone commented on the policy allowing the
Director of Environmental Management and/or his designee to
determine when loads of unseparated municipal solid waste exceed
the 15% yard waste volume which enacts the 100% surcharge above the
normal tipping fee and asked the following questions: (1) Does
this procedure provide an opportunity for kick-backs or pay-offs?
Is this procedure being currently used? and (3) Is there a more
objective method of determining the percentage of yard waste?
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Director Church stated this policy is being used at the
Landfill and has proven to be satisfactory. The weighmaster is
responsible for rendering a judgement call; however, this person is
well trained and willing to work with the customers. In most
cases, the yard waste will not exceed 15%; therefore, the proposed
procedure should not be a problem and in his opinion is the best
method to use.
Mr. Matt Bryant, Operations Manager of Waste Management of
Wilmington, expressed concern for the proposed ordinance and urged
the County to continue to utilize its present facilities instead of
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 282
spending $355,000 for construction of a separate composting
facility plus additional costs for operation of the facility and
the separation of leaves and limbs. The citizens of New Hanover
County now pay $60 per ton for disposal of trash, one of the
highest tipping fees on the east coast, and it will be difficult
for the haulers to inform customers that another price increase
will be needed in order to dispose of yard waste. with the lack of
revenues generated by the incinerator, it will be difficult to
convince the taxpayers that transferring yard waste to another
facility, which will decrease the amount of steam and electricity
sold, will not end up with another increase in the tipping fee. If
the County is concerned about controlling the costs for waste
disposal, the County should very closely monitor the incinerator.
This facility was constructed in 1983 through passage of a bond
referendum with the promise to resolve the solid waste disposal
problem and lower the tipping fee. At that time, the debt was
$8,000,000 to be paid off in five years. The tipping fee was to be
eliminated or reduced from $22 per ton once the incinerator began
operation. Nine years later, the County has doubled the size of
the incinerator, has a debt of $34,000,000 with an annual debt
service of $3,500,000 which represents $36.25 per ton of disposal
to generate enough revenue to pay for the debt service. During
this period, everyone has agreed that a total lack of maintenance
has occurred and is still occurring at the incinerator. In the
hauling business costs for a lack of proper maintenance cannot be
passed to the customers because they can find another hauler at a
more competitive price. The County should keep the incinerator
under control in order to avoid passing additional costs to the
taxpayers. The Commissioners were urged to continue to utilize the
existing $34,000,000 facility as allowed under Senate Bill 111
instead of adopting an ordinance that will mandate one more waste
disposal increase to the taxpayers which negatively impacts every
residential, commercial, and industrial customer.
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Mr. M. A. Haughton, a retired DuPont Manager and Chemical
Engineer, requested the Board to obtain a variance from the State
law prohibiting the burning of yard waste in the incinerator. The
law was intended for counties using landfills for disposal of yard
waste. Yard waste is an excellent source of fuel with its high BTU
value; therefore, the incinerator should be utilized to its full
capacity to produce steam and electricity for generation of
revenue. From an engineering point of vi~w and experience with
steam boilers, there is no problem with burning yard waste in the
incinerator.
Mr. Steve Woodard, a concerned citizen, recommended the
feasibility of establishing a non-tipping composting facility with
the operation and funding of the facility supported from the sale
of compost.
A lengthy discussion was held on maintenance of the
incinerator and the need to inform the citizens that yard waste
will be collected separately. Director Church stated a meeting was
held with the haulers and they were notified that the County will
continue to accept yard waste at the incinerator until June 1,
1993. Further communication will occur with the haulers in an
effort to work out the logistics of the ordinance.
Discussion was held on working with the State to obtain an
exemption for New Hanover County. County Manager O'Neal stated the
North Carolina Association of County Commissioners is reviewing the
County's situation and will be working with the State. for an
exemption; however, until a decision is rendered, an ordinance
should be in place in order to comply to State law.
Director Church reported on discussion with the N. C. Solid
Waste Division with an opinion rendered that New Hanover County has
not exhausted all other waste reduction avenues in order to qualify
for the 10% waste reduction.
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 283
Vice-Chairman Mathews commented on section G and inquired as
to why burning was left out?
Director Church stated the State does not view backyard
burning as acceptable due to fire and emission problems incurred
with this practice.
Chairman Greer expressed concern for section G and recommended
deleting this section from the proposed ordinance.
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County Manager O'Neal recommended not eliminating section G,
but rewording the introduction to read as follows:
Solid waste generators, solid waste collectors, and other
persons, may dispose of yard waste by one of the following
methods:
Chairman Greer recommended deleting Item #6 under section G.,
which bans yard waste from being burned in the incinerator, and to
direct staff to continue working with the State for an exemption
for New Hanover County. The ordinance should simply state the
County will not accept yard waste in the Landfill after June 1,
1993.
Motion: After further discussion, Vice-Chairman Mathews MOVED,
SECONDED by Chairman Greer to adopt the ordinance with rewording of
Item G as proposed by the County Manager and removal of Item #6
under section G. The floor was opened for discussion.
commissioner Caster expressed concern for the seasonal influx
of yard waste and inquired as to what will happen to the separate
collection for yard waste when the yard waste exceeds 20% of the
waste stream? Director Church stated this can be addressed in an
ordinance. In other communities, the customer is required to put
out a certain number of bags at a certain size as stipulated in the
ordinance.
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Mr. Angus Phillips, representing Waste Industries, stated at
$60 per ton, haulers are already limited as to amount of pick-up
without an additional charge. The Commissioners were urged to
allow a place for disposal of yard waste without charging customers
an increase in trash collection bills.
Upon vote, the MOTION CARRIED UNANIMOUSLY.
A copy of the ordinance is hereby incorporated as a part of
the minutes and is contained in Exhibit Book XX, Page 18 and will
be codified into the New Hanover County Code.
commissioner Sisson expressed concern for the fact that it
costs more to haul trash from the County than it does in the City
and stated this does not make sensei therefore, he would recommend
holding a Work Session to discuss and rationalize this issue in
order to bring the County's cost in line with other major
municipalities in our jurisdiction. In the past, the Commissioners
have not addressed this issue, and in his opinion, it is the
responsibili ty of the Board to thoroughly study this matter in
order to give the citizens a break in hauling fees.
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It was agreed that a Work Session should be scheduled.
BREAK
Chairman Greer called for a break from 10:00 A. M. until 10:15
A.M.
PRESENTATION OF 1991-92 ANNUAL REPORT FOR THE HUMAN RELATIONS
COMMISSION
Ms. Shirley Hart Berry, Chairperson of the New Hanover County
Human Relations Commission presented the Annual Report for 1991-92.
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 284
The following reports were presented:
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-Administrative Program Review
-Community Affairs Committee
-Committee for Persons with Disabilities
-Hearing Committee
-Youth Today Advisory Committee
-Community Housing Resource Board
-Friends of Human Relations, Inc.
-Human Relations Month
In summary, the Human Relations Commission had a most
successful year. As the only local agency in North Carolina
authorized to investigate both employment and housing
discrimination complaints, staff and members of the commission have
worked diligently to see that the letter and the spirit of the law
have been followed. The Hearing Committee completed its work in
updating the Employment and Housing Code in compliance with THE
AMERICANS WITH DISABILITIES ACT and THE CIVIL RIGHTS ACT OF 1991.
The Commission conducted Fair Employment and Fair Housing Workshops
to inform local businesses and industries of the components of
these new laws. Also, in 1992 a controversial issue that needed
defining was sexual harassment in the work place. Staff conducted
training and investigated charges of such discrimination.
The Human Relations Commission is proud of the award-winning
annual Human Relations Month acti vi ties held in February. The
Commissioners were complimented for appointing a student to serve
as a member of the Human Relations Commission.
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Chairman Greer, on behalf of the Board, expressed appreciation
to the members of the Human Relations Commission, the Human
Relations Director and Staff for an excellent job performed during
the past year.
Consensus: It was the consensus of the Board to accept the Human
Relations Commission 1991-92 Annual Report.
DISCUSSION OF RESOLUTION RELATING TO RACIALLY EQUITABLE SCHOOLS
Ms. Shirley Hart Berry, Chairperson of the Human Relations
Commission, presented and read a resolution adopted by the Human
Relations Commission urging the Board of Education to retain a
priority on the practice of providing racially non-segregated
schools as def ined and accepted by the Supreme Court. The
Commissioners were requested to adopt a similar resolution.
Vice-Chairman Mathews commented on it being very appropriate
for the Human Relations Commission to adopt the resolution and
stated, in his opinion, with the Supreme Court Law mandating non-
segregated schools, it is not necessary for the Commissioners to
adopt a similar resolution.
Ms. Berry emphasized the importance of preserving the quality
of life in New Hanover County through the protection of non-
segregated schools and stated a similar resolution was adopted by
the Board of County Commissioners in 1988.
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Commissioner Sisson emphasized the importance of all local
governments supporting the laws of the state and nation and
recommended adoption of a similar resolution supporting these
principles. Emphasis was placed on the fact that human relations
is an on-going issue that must be addressed at all times.
Commissioner Caster expressed concern for adopting a
resolution that will infringe on the responsibilities of the Board
of Education and stated he heartily supports racially non-
segregated schools but hesitates to tell other elected officials
how to perform. their duties.
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 285
Ms. Berry respectfully disagreed. She stated the school
system often redraws the district lines; however, with any plan or
redistricting, the Board of Education must understand that the
County Commissioners believe that schools should not be segregated.
Chairman Greer recommended developing a resolution that
supports racially non-segregated schools but is not directed at the
Board of Education. Emphasis was placed on the fact that the
Commissioners and hopefully every member of the community strongly
desire racially non-segregated schools.
Ms. Berry stated this resolution has been presented to the
Board of Education and is on their agenda for consideration at the
January meeting; therefore, she does not feel the Board would
consider the Commissioners infringing on their positions as elected
officials by adoption of the resolution.
Motion: After further discussion,
accept the resolution as presented.
LACK OF A SECOND.
commissioner Sisson MOVED to
The MOTION FAILED DUE TO A
commissioner Sisson recommended amending the last paragraph of
the resolution to state: "The New Hanover County Board of
Commissioners retains as a priority the practice of providing
racially non-segregated schools as enacted by the Supreme Court."
This revision would not refer to the Board of Education but would
affirm the support of the Commissioners.
Chairman Greer recommended preparing a resolution stating the
County will do everything possible to maintain racial harmony in
the community, whether in the schools or in the work place.
Emphasis was placed on the importance of upholding the laws of the
land, but not becoming involved with the responsibilities of the
members of the Board of Education.
Consensus: After further discussion, it was the consensus of the
Board to request the Human Relations Commission to prepare a
resolution that will not be directed to the Board of Education but
will endorse racial balance in the schools as well as in the work
place. The resolution is to be considered by the Commissioners on
February 1, 1993.
Ms. Berry stated the Human Relations Commission will be glad
to prepare a resolution as requested.
STATUS OF GROUNDWATER STUDIES IN NEW HANOVER COUNTY
Assistant County Manager, Dave Weaver, presented background
information on groundwater reports and recommendations for
developing a drinking water plan for New Han?ver County.
The following recommendations were presented:
-continue to develop regulatory means that will balance
groundwater protection with industrial/commercial development.
-continue to develop information needs and to pursue grant and
cooperative opportunities with Federal and State agencies and
local industries.
-Develop a plan for committing to a County Drinking Water
System.
The State Government has data available for development of
models to be used by the County. This data has been combined and
the County is aware of the sensitive areas and the best location
for a major well field if a County Drinking Water System is to be
developed. If an aquifer overlay district is to be developed, a
higher level of information must obtained detailing the primary and
secondary aquifer areas. After meeting with the State, there is
potential for developing a cooperative study with the State of
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 286
North Carolina. They are presently under contract with the U. S.
Corps of Engineers for the deepening of the navigation channel in
the Cape Fear River. The study could be expanded to include the
northeastern portion of the County in order to obtain the
information needed to develop a plan for a County Drinking Water
System.
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In summary, the County's groundwater resource is a precious
asset and should be protected. The County should continue to work
with the State in collating information needed for development of
a groundwater model utilizing a consultant to prepare a feasibility
study for the cost of a. County Drinking Water System.
Discussion was held on the cost of a groundwater study.
Chairman Greer commented on the need, but expressed concern for
spending thousands of dollars at this time. He recommended
encouraging local industries to participate in the financing of a
groundwater study.
commissioner Sisson reported on this being an opportune time
to work with the State, the City of Wilmington, and local
industries for expanding the study with the Corps of Engineers.
Assistant County Manager Weaver stated to obtain groundwater
data in this area of the County with funding participation by
industry would be valuable; however, a majority of industries are
not located in this area. Funding for the study can come from the
Water & Sewer District Budget, and the County could enter into a
County Drinking Water System by purchasing existing commercial
drinking water systems and sinking County wells in selected areas.
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Vice-Chairman Mathews commented on the availability of
groundwater and stated a plan should be developed for protection of
this valuable resource.
Discussion was held on the Cape Fear River Drainage Basin
carrying the second highest pollution load of any river basin in
the state. Commissioner Sisson reported on the impact of continued
large scale development upstream on the Cape Fear Ri ver and
recommended pursuing a joint venture study with the State to ensure
clean drinking water.
commissioner Barone recommended performing a study in the
following three phases:
I. Collect and combine the data available which should
require six months.
II. Analyze the combined data, which will require six to
twelve months.
III. Placement and monitoring of wells can be done at a later
time.
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commissioner Barone commented on the U. S. Geological study
including many items that were beyond the scope of service for the
County and recommended contracting with groundwater experts to
assist with the performance of Phases I and II, which should not be
too costly. Emphasis was placed on the need to begin the planning
stage for development of a drinking water plan.
Commissioner Barone also commented on the fact that she had
requested the Assistant County Manager to place this item on the
agenda with copies of groundwater reports relating to the status of
groundwater in New Hanover County. When reviewing backup data,
information was included on recommendations from the proposed Land
Use Plan Update. Concern was expressed for presenting this
information when public hearings have not been held on the Land Use
Plan Update, nor has the final plan been adopted by the City and
County. Commissioner Barone cautioned the Planning Department
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 287
about providing additional information in a draft form concerning
down zoning from industrial to residential, which, in her opinion,
is a knee-j erk reaction and a no growth policy. Also, she
expressed concern for a paragraph in a report presented by the
Assistant County Manager referencing the OxyChem incident in 1985
and stated this statement should be corrected. The contamination
was in a start-up mode, it was an accidental one-time occurrence
and was not discharged, nor did the contamination ever leave the
plant site. OxyChem performed an outstanding job in working with
the state Environmental Office to properly clean up the site.
Commissioner sisson disagreed and expressed appreciation to
the Planning staff for including this information. The general
public and commissioners are aware that OxyChem has performed an
excellent job in rectifying the contamination problem; however,
simply stating the fact that a problem did occur is not a knee-jerk
reaction when there was potential for a real contamination problem.
Motion: After further discussion, Commissioner Sisson MOVED,
SECONDED by Commissioner Barone to direct staff to invite the City
and local industry to join the County in requesting the state to
expand its present study to include analyzing and combining
existing data and to gather future data for development of a county
drinking water plan. All groups will be requested to participate
in financing of the state's expanded study. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
Mr. Jim Vithalani, an engineering consultant, urged the Board
to pursue development of a groundwater study for drinking water in
New Hanover County. The State, City, County, and local water
companies have voluminous information on the County's groundwater
but have not combined this data for analysis. Emphasis was placed
on the need to begin a preliminary study as soon as possible.
TAX APPEAL BY WILMINGTON COCA COLA
Tax Administrator, Roland Register, presented background
information on the appeal and reported that Wilmington Coca Cola
(Coke) was audited by New Hanover County staff members, Bruce Shell
and Walter Ward, since Coke did not allow Tax Management Associates
(TMA) to perform an audit. It is the contention of Coke and their
accountant, willis Hardesty, that the accounting ledgers had been
incorrectly maintained since old equipment had not been written off
of the records for the past 20 years. The N. C. Department of
Revenue requires counties to review the official accounting records
during an audit. The County cannot accept what a taxpayer intended
to do, but must accept the facts of the official records. It is
not proper to allow a business to retroactively change their annual
reports for property-tax purposes. In this case, the County has
given unusual consideration by allowing Coke to write off $1.2
million in 1992 and $1.7 million in 1991 feeling that the company
was trying to correct their records; therefore, it is the
recommendation of the Tax Department to uphold the findings of the
audit and penalties. Also, the Tax Department just learned last
week that coolers are considered as vending machines; therefore,
the coolers will have a 5-year life instead of a 10-year life which
will reduce the tax by $18,778.
Attorney Rex Willis, representing Wilmington Coca Cola,
reported on the tax appeal and stated it is important to understand
that the general ledger was not correct when the audit was
performed. This was an omission on the part of the bookkeeper;
however, the Tax Administrator would like to tax Coke for property
listed on the general ledger not for property owned and used by
Coke as stated in the tax law. The old vending machines, coolers,
and pre-mix equipment carried on the books have not been removed
from the books for the past 20 years. wilmington Coca Cola met
with the Tax Administrator in October, 1992 to request additional
time to prepare documentation that would verify the property now
being used and owned by Coke. Emphasis was placed on the fact that
Coke has not attempted to conceal or be dishonest with the general
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 288
ledger. In November 1992, an audit was conducted by the
accountant, willis S. Hardesty and Ms. Connie B. Tyndall of
Wilmington Coca Cola with subtractions and deletions in order to
determine the actual amount of property owned and used by
Wilmington Coca Cola. The results of the audit reflect that Coke
has paid taxes on $3,000,000 worth of vending machines, coolers,
and pre-mix equipment that were not actually used and owned by
Wilmington Coca Cola. The Commissioners were requested to adjust
and settle the tax liability of Wilmington Coca Cola at taxes
already paid.
Tax Administrator Register reported the County cannot accept
a physical audit as of November, 1992 to refute the official
records of the company for the prior four to five years. The
County has allowed write-offs for fiscal years 1991 and 1992.
Chairman Greer inquired as to why write-offs were given for
only two years, 1991 and 1992?
Tax Administrator Register stated no accounting records were
available to support write-offs for prior years other than 1991 and
1992.
Internal Auditor, Bruce Shell, reported on reviewing the
general ledgers as of 1987-1992 with the determination that a
higher amount of equipment was owned than listed. This issue was
discussed with Mr. Hardesty who informed the County that he had a
difficult time writing off assets due to poor records. The County
has made a considerable adjustment by allowing write-offs of $1.2
million being applied back to January 1, 1992, and $1.7 million
being applied back to January 1991. He also commented on the trend
schedule used by the N. C. Department of Revenue, which is the cost
of assets adjusted for their age, and stated if equipment is very
old and fully depreciated for financial purposes it is of no value;
however, for tax purposes the Department. of Revenue does not allow
property to depreciate below 25%. There are assets on Coke's books
that were not written off that are being taxed by the County at the
25% residual.
Mr. Willis stated no write-offs have occurred for 20 years;
therefore, Coke feels the physical inventory as of November 1992 is
the best evidence of the property owned. Coke has performed this
inventory with no attempt to change accounting records. Coke has
paid property tax on more equipment than owned.
Attorney Dan Brawley, representing Wilmington Coca Cola,
commented on requesting an extension of time in order to properly
prepare figures and stated this request was not granted by the Tax
Administrator. The point to consider is that taxes are paid on
property owned. Coke is requesting the County to allow the company
to pay taxes on property owned, not on what is provided by the
general ledger which everyone knows is in error. Actually, Coke
has overpaid.
Tax Administrator Register commented on the additional
information presented by Mr. Hardesty and stated if the County
cannot depend on the general ledger certified by a public
accountant, what can the Tax Department accept as a record.
Mr. willis Hardesty, a Certified Public Accountant for Coca
Cola, reported on the 1986 merger of Coke when he became their
accountant. Coke was keeping books and records on assets acquired
in the general ledger as a group listing. There was no individual
listing for each piece of equipment or depreciation schedule for
each piece of equipment. When bringing this matter to the
attention of management, he was informed a computer system was in
the process of being installed with a number of years required to
accurately reflect. a fixed asset or depreciation schedule on each
piece of equipment. The only machines deducted were machines that
could be verified. An appointment was scheduled with Tax
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 289
Administrator Register and Mr. Shell; however, when calling to
verify the appointment, he was informed they would be out of the
office for two weeks and that he should provide actual
documentation of Coke's listings in other counties. Other counties
were contacted and this information was obtained. When meeting
with the Tax Administrator, no discussion was held, but he was
informed there would be no negotiation. After working as a
Certified Public Accountant for 30 years, he has never met a Tax
Administrator who was not willing to talk or discuss a problem.
After taking a physical inventory, using small cards showing the
names of each vending machine, cooler, or pre-mix machine, the
schedule prepared is a certified and verified record of equipment
owned.
()
Commissioner Caster inquired as to the amount of the penalty?
Internal Auditor Shell stated with the deduction for the life
of the coolers, the tax is now $42,000 including a $10,000 penalty.
He also reported that Coke was requested to obtain figures from
other counties in order to give them the benefit of showing what
was correctly written off. When receiving large write-offs,
consideration was given.
Chairman Greer expressed concern for applying a penalty when
the tax has been paid and stated Coke is a good employer of the
community and certainly tries to abide by the law. Concern was
also expressed for the possibility of driving this business out of
New Hanover County.
commissioner Sisson, the owner of a small business, stated he
is required to keep meticulous records. If proper records are not
maintained, the accountant will not prepare his taxes. Emphasis
was placed on applying tax standards fairly to everyone in the
County and the fact that New Hanover County cannot be held
responsible for Coke not maintaining accurate records.
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Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster
to uphold the findings of the audit and penalties. The floor was
opened for discussion.
Chairman Greer expressed concern for charging the penalty.
Tax Administrator Register expressed concern for setting a
precedent and stated penalties in the past have not been released
to other firms. The Board was urged to uphold the uniformity of
the law.
Upon vote, the MOTION CARRIED AS FOLLOWS:
Voting Aye: Commissioner Caster
commissioner Sisson
Vice-Chairman Mathews
Voting Nay: Commissioner Barone
Chairman Greer
BREAK
Chairman Greer recessed the meeting from 10: 58 A.M. until
11:14 P.M.
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TAX APPEAL BY MID-ATLANTIC YACHTMASTERS, INC.
Tax Administrator, Roland Register, reported that Mid-Atlantic
Yachtmasters, Inc. was chartered in April 2, 1990. The President
of the company, L. H. Kirksey, owns and operates several funeral
homes in Morganton, North Carolina. He does not report any
business property or real estate ownership in New Hanover County.
and in Morganton, he is a mortician, not a boat dealer.. Mr.
Kirksey previously owned a 40' plus Hatteras yacht, then purchased
a replacement which was a 46' yacht. Upon purchase of the
discovered "inventory" boat, he sold the 46' yacht without
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 290
.
replacement. After review, it is the opinion of the Tax Department
that Mr. Renn and Mr. Kirksey are not boat dealers in the regular
course of business. This partnership may grow into a business, but
as of this date, the primary business for Mr. Kirksey is a
mortician and the primary occupation for Mr. Renn is a fleet
captain for the Bald Head Island Ferry; therefore, the boat should
not be considered exempt inventory held for sale in the regular
course of business. The discovery should be upheld and penalties
applied.
Mr. James Renn, a partner & General Manager of Mid-Atlantic
Yachtmasters, Inc., presented a copy of the Articles of
Incorporation, the Bill of Sale to Mid-Atlantic Yachtmasters, Inc.
and a copy of the N. C. Registration card and inquired as to
whether these documents had been copied to the Commissioners?
Tax Administrator Register stated Mr. Renn's letter was
furnished to the Commissioners; however, the other documents were
not copied since the Tax Department did not feel it was necessary
to provide this information.
.
Mr. Renn reported on leaving employment with Wilmington Water-
Crafts as a salesman to serve as the General Manager and Secretary
for Mid-Atlantic Yachtmasters, Inc. In October, 1990, Mid-Atlantic
Yachtmasters, Inc. participated in the Fort Lauderdale Boat Show as
a Hyatt Dealer. An order was placed for the first dealer yacht.
The 1991 45' Hyatt arrived in February 1991 at the Port in Miami,
Florida. The boat was outfitted in Ft. Lauderdale by Mid-Atlantic
staff and then entered in the February 1991 International Boat Show
in Miami. At this show, Mid-Atlantic Yachtmasters, Inc. sold a 40'
Hyatt. For the last three years, sales have been so poor, that he
had to become a fleet captain for Bald Head Island. Since August
1991, the company has been trying to sell the boat. Mr. Renn
stated when demonstrating the boat for persons interested in
purchasing the boat, Mr. Kirksey has not been on most trips;
however, Mr. Kirksey is retiring and intends to promote the
business. Emphasis was placed on the fact that the company is in
business and that the boat is not used for personal use.
commissioner Barone inquired as to the number of hours on the
boat since it has been docked in Wilmington.
Mr. Renn stated the boat has less than 10 hours which can be
documented.
Motion: After further discussion, commissioner Barone MOVED,
SECONDED by Chairman Greer not to concur with the recommendations
submitted by the Tax Administrator and to release the discovery and
penalties. Upon vote, the MOTION CARRIED UNANIMOUSLY.
.
PUBLIC HEARING TO RECEIVE COMMENTS ON PROPOSED REFUNDING BONDS OF
THE COUNTY OF NEW HANOVER
Finance Director, Andrew J. Atkinson, reported on the
opportunity for the County to hold an advance refunding bond issue
in the amount of $5,500,000. Advance refunding is a technique
whereby new bonds are issued at a lower interest rate and held in
escrow to pay the old bonds at their call date. The County can
potentially save approximately $433,800 in interest by the
refunding process.
commissioner Barone expressed appreciation to the Finance
Director for proceeding with the refunding bond issue.
Motion: Chairman Greer MOVED, SECONDED by Vice-Chairman Mathews to
open the Public Hearing. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
Chairman Greer opened the Public Hearing and inquired as to
whether anyone from the general public would like to comment.
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PAGE 291
No comments were received.
Motion: Chairman Greer MOVED, SECONDED by Vice-Chairman Mathews to
close the Public Hearing. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
Chairman Greer closed the Public Hearing.
MEETING RECESSED TO HOLD A MEETING OF THE NEW HANOVER COUNTY WATER
& SEWER DISTRICT
Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster
to convene from Regular Session to hold a meeting of the New
Hanover County Water & Sewer District. Upon vote, the MOTION
CARRIED UNANIMOUSLY.
Chairman Greer convened from Regular Session at 12:01 P.M.
Motion: commissioner Barone MOVED, SECONDED by Commissioner Caster
to reconvene to Regular Session.
Chairman Greer reconvened to Regular Session at 12:31 P.M.
APPOINTMENT OF VICE-CHAIRMAN E. L. MATHEWS, JR., TO SERVE AS AN EX-
OFFICIO MEMBER ON THE BELLAMY MANSION, INC. BOARD OF DIRECTORS
Consensus: It was the consensus of the Board to appoint Vice-
Chairman E. L. Mathews, Jr. to serve an ex-officio member on the
Bellamy Mansion, Inc. Board of Directors.
APPOINTMENTS TO THE STRATEGIC PLANNING COUNCIL
Chairman Greer reported that two vacancies exist on the
Strategic Planning Council in the category of a religious leader
and member of the community at-large. To maintain the concept of
receiving input from various segments of the community, new
appointees should represent the categories named.
Consensus: After discussion, it was the consensus of the Board to
delay these appointments since this request has been presented as
an additional item with no listing of the applicants.
DISCUSSION OF COUNTY SEAL
Vice-Chairman Mathews inquired as to whether the Commissioners
have officially decided not to change the seal?
County Manager O'Neal stated staff is under the impression
that the seal is to remain unchanged and is in the process of
preparing a banner for the 200th Anniversary Celebration of the
University of North Carolina at Chapel Hill.
Vice-Chairman Mathews also inquired as to whether the Board
would like to proceed with erecting signs displaying the County's
seal when entering New Hanover County. After discussion, staff was
authorized to pursue this issue.
Discussion of Swales in the wrightsville Green Subdivision
Vice-Chairman Mathews commented on the drainage problem being
experienced in the Wrightsville Green Subdivision and inquired as
to whether any progress has occurred?
Assistant County Manager, Dave Weaver, reported on the County
Engineer being contacted by a homeowner who has requested the
County to 'determine if swales were properly placed in the
subdivision by the developer. This procedure will be a difficult
task; however, the County Engineering office is going to
investigate the matter. The answer to this question will determine
who will pay for drainage improvements. If the swales were not
placed as proposed in the subdivision, the developer will be
responsible for payment of drainage improvements; however, if the
swales were there and filled in, the homeowners will be responsible
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
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for drainage improvements.
.
commissioner sisson inquired as to the amount of time that
will be required to complete this process and stated the homeowners
have requested documentation that will allow them to hold the
developer responsible if swales were not properly placed as
required by the drainage plan.
Assistant County Manager Weaver stated staff will work on this
project during the coming week.
Chairman Greer expressed concern for being able to determine
if swales were in place five years ago and stated the question to
be answered is whether the County signed off on the plan when all
drainage improvements had not been satisfactorily performed.
Concern was expressed for possible liability to the County, not
only in this case but in all cases, if plans are not in compliance
before receiving final approval.
Commissioner sisson stated the residents are not asking the
County to pay for replacing the swales, but they need official
documentation to determine who is responsible for drainage
improvements.
Assistant County Manager Weaver stated the homeowners have
been informed that the County will not be responsible for drainage
improvements.
.
Discussion was held on being able to determine if the swales
were originally placed in the subdivision. Assistant County
Manager Weaver stated the County Engineer who inspected the
subdivision five years ago cannot actually remember that all swales
were in place; however, when checking the subdivision next week,
some areas will show that swales were installed. There will be a
few areas that probably do not have swales, but it will have to be
determined if swales were necessary at that time.
Vice-Chairman Mathews inquired as to whether the original
drainage plan showed where swales should have been placed?
Assistant County Manager Weaver stated the original plan
specified roadside swales along all the roads.
Chairman Greer, again, expressed concern for signing off of
the plan without knowing that all requirements have been completed.
Assistant County Manager Weaver stated a check list has been
developed to specify the types of improvements on the final plat as
to whether or not all work has been performed. In the past, the
subdivision was inspected by an Inspedtion Engineer who simply
stated the final plat was in order with no check list.
Commissioner sisson commented on the County Engineer signing
off on the final plat with all items checked and the developer
later selling lots to another developer who may fill in the swales,
and inquired as to how the County can prevent this type of
situation from occurring?
.
Assistant County Manager Weaver stated once improvements are
inspected for final plat approval, the County is no longer
responsible for the future development of the subdivision; however,
Wrightsville Green was unique since it was developed as a high
density project which requires a site plan through the Zoning
Ordinance. In high density development, the site plan becomes a
part of the Zoning Ordinance which requires on-going enforcement. by
County staff so that building permits can be issued or denied based
upon compliance to the Zoning Ordinance.
commissioner sisson inquired as to whether the County is
enforcing the Zoning Ordinance in this sit~ation?
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 293
Assistant County Manager Weaver stated the County is enforcing
the Zoning Ordinance by requiring the developer to deposit $8,000
and no further issuance of building permits or certificates of
occupancy until the drainage is corrected. A drainage plan has
been submitted by the developer and has been reviewed by County
staff and by an engineer for the homeowners. The status of the
plan is still under negotiation between the homeowners and
developer.
Mr. Dan Dawson, a local engineer assisting some individual
homeowners in the Wrightsville Green Subdivision, reported on a
final plat being recorded in order for lots to be sold. The plat
was recorded after County staff reported that improvements had been
made. During the past five years, there have been questions as to
whether all .improvements are in place. An item not addressed by
the Subdivision Ordinance is when the Homeowners Association
actually takes over the common property, the roads, drainage
swales, etc.; therefore, the developer continues to build and at
some point he does not have a majority of control over the common
area. In this case, Wrightsville Green Subdivision is at the
breaking point where the private lot owners will begin to pay the
bill. The developer is claiming that all County requirements were
satisfied with signing off of the plat; therefore, he has no
further responsibility. The homeowners are requesting evidence to
show that swales were as required in the original drainage plan.
When the developer attempted to close some lots, the County
informed the developer of its dissatisfaction with the level of
completion of drainage improvements and required the developer to
post an $8,000 bond and submit a plan to correct the drainage
problems. A plan has been submitted with an estimated cost of
$16,000.
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In summary, this is a complicated issue and it is important to
encourage all parties involved to work together. Progress has been
made with the parties, and the residents are pleased with the most
recent communication and dialogue being held with the County. This
is a nice development and the residents are concerned about the
Homeowners Association having to pay the developer's expenses.
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Chairman Greer inquired as to whether the County should
require the developer to post a bond when establishing a
subdivision to ensure that all improvements are completed?
Mr. Dawson stated in this case private roads are involved;
whereas, if state maintained roads were involved, all improvements
would have been completed and the roads would become state
dedicated and accepted by the State Highway Maintenance System
based upon certain criteria. He again stressed the importance of
the Subdivision Ordinance not clearly defining when the Homeowners
Association takes over the maintenance of common property.
Assistant County Manager Weaver agreed with Mr. Dawson and
stated it is felt that a compromise is being worked out among the
parties involved. Also, additional amendments to the Subdivision
Ordinance will be forthcoming. One approach to consider is
requiring the engineer of record for the subdivision to certify
that the improvements were built according to the plan. This would
remove the responsibility from the County and avoid having to hire
additional staff.
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Vice-Chairman Mathews inquired as to the amount of funds
needed to install a proper drainage plan?
Mr. Dawson stated the drainage improvements of $16,000
consists of only a few swales, pipes, and ditches, but design of a
drainage plan could cost as much as $50,000.
Vice-Chairman Mathews inquired as to the number of homeowners
in the association?
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MINUTES OF REGULAR MEETING, JANUARY 19, 1993
PAGE 294
Mr. Dawson stated there are approximately 30 homeowners. Some
homeowners are in excellent shape; however, another group of
homeowners are in desperate need of drainage improvements before
the Homeowners Association takes over the common area.
It was generally agreed that the County Engineering office
should proceed with determining if the swales have been placed
according to the original plat. Also, the Planning Staff should
review the Subdivision Ordinance to implement regulations that will
avoid situations of this type in the future.
ADJOURNMENT
Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner
Sisson to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Greer adjourned the meeting at 12:59 P.M.
~::;ked.
Lucie F. Harrell
Clerk to the Board
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