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1993-06-01 Special Meeting ~ MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 506 ASSEMBLY The New Hanover County Board of Commissioners met in Special Session on Tuesday, June 1, 1993, at 7:00 P.M. in Room 501 of the New Hanover County Administration Building, 320 Chestnut 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 announced the purpose of the Special Meeting is to discuss the hospital revenue bond issue and lease agreement. After the Special Session, the continued meeting of May 24, 1993, will be reconvened to discuss the FY 1993-94 Budget. DISCUSSION OF HOSPITAL REVENUE BOND ISSUE AND LEASE AGREEMENT The following items were discussed: Appointment of Trustees: On Page 3 of the Hospital By-Laws drafted by Attorney Dumay Gorham, the language pertaining to appointment of Hospital Trustees reads as follows: . Except as herein otherwise provided for ex-officio Trustees, a Trustee's appointment shall be for a term of three years. Upon completion of the initial three-year term, a Trustee shall be reappointed to serve a second, consecutive three-year term, unless the Board of County Commissioners votes unanimously not to reappoint the Trustee to a second three- year term. A Trustee whose initial service on the Board is by appointment to fill an unexpired term shall, upon completion of said unexpired term, be reappointed to serve a three-year term unless the Board of County Commissioners votes unanimously not to reappoint the Trustee to a three-year term. A Trustee who has served two consecutive three-year terms shall not be eligible for reappointment to the Board until one year after the completion of the Trustee's second three-year term. County Attorney Copley reported there is no provision for the Board of County Commissioners to remove a Trustee; therefore, based upon her understanding of the Board's intent at the May 3, 1993, meeting she has drafted the following changes as indicated in the bold print: . Except as herein otherwise provided for ex-officio Trustees, a Trustee's appointment shall be for a term of three years. Upon completion of the initial three-year term, a Trustee may be reappointed to serve a second consecutive three-year term. A Trustee whose initial service on the Board is by appointment to fill an unexpired term may upon completion of said unexpired term be re-appointed to serve a three-year term. A Trustee who has served two (2) consecutive three-year terms shall not be eligible for reappointment to the Board until one year after the completion of the Trustee's second three-year term. A trustee may be removed without cause by a unanimous vote of the Board of County Commissioners. A lengthy discussion was held on the action taken at the May 3, meeting and the 3-2 vote which accepted the appointment process as drafted by the Hospital Attorney using the word shall. County Attorney Copley explained if the word, shall, remains in the proposed By-Laws, a trustee will be appointed to a three- year term and "shall" be reappointed to another three-year term which will amount to a six-year term. She requested clarification of the intent of the Board. ~ ( MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 507 Vice-Chairman Mathews reported that he voted on the usage of the word, shall, on May 3, 1993, but after review, he feels the word "may" should be used as recommended by the County Attorney. commissioner Caster expressed concern for using the word, "may", instead of shall and reminded the Board that action was taken by a majority of the Board to accept the appointment process as recommended by the Hospital Attorney. Also, the word, "shall", sends a message to a Trustee, who is specifically appointed by the Board of County Commissioners for that person's skills and abilities, that he or she will be reappointed to serve a second three-year term unless some unusual incident or event occurs which would be totally unacceptable to the County Commissioners. In that event, a unanimous vote for non-appointment could occur; however, to send a subtle message by use of the word, "may", is not proper or respectful to that Trustee. Emphasis was placed on the number of hours given by these volunteers who serve as Trustees in providing leadership and direction to the New Hanover Regional Medical Center. Vice-Chairman Mathews reported members of other boards are not automatically reappointed to a second term; therefore, he would recommend changing the word from "shall" to "may" in order to allow the Commissioners more flexibility. Discussion was held on the additional sentence in the County Attorney's draft which states, "A trustee may be removed without cause by a unanimous vote of the New Hanover County Board of Commissioners." Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Barone to change the verbiage from "shall" to "may" as proposed by the County Attorney including the addition of the last sentence which reads, "A trustee may be removed without cause by a unanimous vote of the Board of County Commissioners". The floor was opened for discussion. commissioner Caster commented on not having a major problem with a change in the words "shall" to "may" but strongly objected to adding the last sentence. He, again, reminded the Commissioners of the action taken on May 3, which did not include a statement of this type. Commissioner Sisson reported this is another example of a communications problem. After the joint meeting with the Hospital Board of Trustees on March 18, 1993, he was under the impression that the last sentence should be included in the appointment process. Chairman Greer agreed and stated when receiving a proposal from the full Board of Trustees, this sentence was not included in the recommendation. commissioner Caster reported this was a compromise proposal wi th consideration of all the items discussed at the March 18 meeting. The Hospital Board of Trustees did not feel the last sentence was necessary since the Board of County Commissioners by unanimous vote can decide not to reappoint a Trustees to serve a second three-year term. Commissioner Sisson empathized with commissioner Caster, who serves as the liaison on the Hospital Board of Trustees, and recommended, in the future, the Commissioners should clearly define their exact intent before conveying information to a board or committee. Chairman Greer expressed concern for resurfacing these issues when the Board of Trustees has compromised and inquired as to whether it would be better to remove the last sentence? () () () . . . ""IIIIl MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 508 Substitute Motion: Commissioner Caster MADE A SUBSTITUTE MOTION SECONDED by Commissioner Sisson to accept the County Attorney's proposed appointment recommendation includinq chanqinq the words from shall to mav but eliminatinq the last sentence which reads as follows: "A Trustee may be removed without cause by a unanimous vote of the Board of county Commissioners". Upon vote the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Caster Commission Sisson Chairman Greer Voting Nay: Commissioner Barone Vice-Chairman Mathews Discussion of Hospital Lease Director of Finance, Andrew J. Atkinson, explained the lease has been prepared in draft form and presented to the Board to ensure that no provision has been included in the lease that is not unacceptable. Meetings are scheduled with Bond Counsel in Raleigh on Friday, June 4, 1993, and Friday, June 18, 1993, with the lease and all other documents being reviewed. Once all documents have been finalized, a final copy of the lease will be prepared and forwarded to the Board of County Commissioners. The following items of concern were presented: 1) Term of Lease: The term of the lease is for five years with automatic five-year renewals as long as the hospital desires to renew the lease. Finance Director Atkinson reported the Board may wish to specify that the term of the lease be the same as the life of the bond, which is 20 years. Regardless of the length of the term, the County has the right to terminate the lease within 90 days after a Public Hearing. Chairman Greer expressed concern for changing the term of the lease. County Attorney Copley suggested informing Bond Counsel of the desire of the Board to allow the lease to remain unchanged; however, if a problem should be experienced with the underwriters or with issuance of the revenue bonds due to the term of the lease not being the same as the bond issue, the Commissioners can make a decision at this time. Consensus: It was the consensus of the Board to allow the term of the lease to remain unchanged with a decision being made at a later date with reference to the term, if this is not acceptable to bond counsel. 2) Discussion of Rent and Other Amounts Payable: Finance Director Atkinson inquired as to whether the Board would prefer leaving the rent at $1.00 per year or would the Board prefer a change in the annual rental rate? Discussion was held on whether the general obligation bond issue could become a part of the revenue bond issue. Finance Director Atkinson reported if the Board desires for the bonded debt to be paid by the hospital, the County would have to authorize increasing the amount of the bond to cover that additional expenditure. The money received from the bond sale will not be used to payoff the general obligation bond debt, but the bond money would be used to purchase new equipment which will free up operating money to pay debt service. .~ ~ MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 50~ commissioner Barone expressed concern for a rental payment of $1.00 per year and recommended increasing this figure to $150,000 to help defray the bond debt, which in her opinion, would be more acceptable to the taxpayers. Finance Director Atkinson explained the history behind the County paying the debt service was a form of payment for indigent care since the hospital accepts this responsibility. o Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to increase the $1.00 per year annual rent to $150,000 per year. The floor was opened for discussion. Chairman Greer recommended payment of $150,000 annually to the hospital for indigent care contingent upon the hospital being willing to pay the remaining bond debt. Consensus: After a lengthy discussion, no vote was taken on the motion, but by consensus the Commissioners agreed to pay the hospital $150,000 annually for indigent care for the term of the lease contingent upon the hospital being responsible for payment of the bond debt. Commissioner Caster was requested to discuss this option with the Hospital Board of Trustees. In summary, it was agreed that the proposed lease is excellent and acceptable to the Board of County Commissioners with the changes discussed. It was also noted that the conditions of this lease will require more communication between the Board of County Commissioners and Hospital Board of Trustees. ADJOURNMENT Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. o Chairman Greer adjourned the Special Meeting at 8:15 P.M. Respectfully submitted, ~d;-/~ Lucie F. Harrell Clerk to the Board CONTINUED MEETING OF MAY 24, 1993 Chairman Greer called the continued meeting of May 24, 1993, to order for the purpose of discussing the FY 1993-94 Budget. DISCUSSION OF BUDGET FOR NEW HANOVER COUNTY SCHOOLS Commissioner Sisson expressed concern for the manner in which the Board of Education presented figures relative to the teachers supplement. Also, concern was expressed for the purchase of seven trailers at a cost of $42,000 each when there is existing classroom space at the schools. These funds could be used to meet the 10% increase for teachers. Chairman Greer agreed, but expressed concern for telling the Board of Education how to allocate funds and prepare the school budget. o commissioner Sisson stressed the importance of improving salaries and conditions for teachers and stated at some point and time, priorities must be established. commissioner Barone agreed with commissioner Sisson and expressed concern for the funds spent in administration without ~ MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 510 money being set aside for teachers, who are the individuals on the front line. . County Manager O'Neal reported funds are appropriated to the schools as follows: (1) funding for operating expenses; and (2) funding for capital expenditures. Beyond this point, the Commissioners have no additional authority unless an arrangement is negotiated with the Board of Education. commissioner sisson expressed concern for the state eliminating the Career Ladder Program in the amount of $930,000 effective FY 1993-94. This shortfall will fall upon the County. without replacement of these funds, teachers salaries will fall below the current level. In summary, it was agreed to accept the County Manager's recommended funding request for the New Hanover County School System and to monitor actions by the State and Federal government as to elimination of programs that will severely impact the salaries for teachers. The County Manager was requested to keep the Board informed of any pending legislation so letters of opposition can be prepared. DISCUSSION OF FUNDING FOR RADIO TOWER Discussion was held on the current condition of the radio tower and concern for the loss of the tower during a severe storm or hurricane. The cost of a new tower is $250,000 with quarterly payments of $14,000 for five years. Commissioner Sisson recommended funding the first two quarterly payments from the Fire District tax. . Consensus: After discussion of the importance of the radio tower during emergencies, it the consensus of the Board to fund two quarterly payments in the amount of $28,000 from the Fire District tax for installation of a new radio tower. DISCUSSION OF FUNDING FOR VETERANS SERVICES OFFICE Vice-Chairman Mathews commented on the need for a Veterans Services Office and requested the Board to see if some arrangement can be worked out to accommodate the veterans. Discussion was held on the possibility of Pender and New Hanover County operating a joint office. Vice-Chairman Mathews expressed concern for trying to operate a joint office in another county. County Manager O'Neal reported the local Chapter of the American Red Cross is very receptive to the idea of using its Veterans Affairs Section to provide services to local veterans. Negotiations are currently taking place; therefore, the Board may wish to budget the $20,000 with a final decision being reached at a later date. Consensus: After discussion, it was the consensus of the Board to budget $20,000 to be used for providing services to the veterans. . REDUCTION IN FUNDING REQUEST FOR THE COUNCIL OF GOVERNMENTS (COG) Commissioner Sisson expressed concern for the performance of the Council of Governments and recommended cutting the proposed budget request by 25%. Emphasis was placed on the need to notify the agency that further funding cuts will be made if the performance of services does not improve. After discussion, it was the consensus of the Board to reduce the funding request of $18,000 to $13,500 for the Council of Governments. The County Manager was requested to write a letter to COG expressing concern for the current level of performance and to ~ ( I i MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 511 notify the Director that if the quality of services does not improve, additional funding cuts will be made in the future. APPROVAL OF ADDITIONAL FUNDING FOR THE COMMITTEE OF 100 Discussion was held on the excellent job being performed by the Committee of 100 in recruiting industry to locate in the area. Emphasis was placed on the need to keep the economy strong through the creation of more and better paying jobs. () Motion: Vice-Chairman Mathews MOVED, SECONDED by Chairman Greer to increase the budget request for the Committee of 100 from $40,000 to $50,000. Upon vote, the MOTION CARRIED UNANIMOUSLY. DISCUSSION OF TWO ADDITIONAL ANIMAL CONTROL OFFICERS Discussion was held on the increase of rabies in Southeastern North Carolina with a recent case in whiteville. After further discussion, it was agreed not to fund the two additional positions at this time; however, if the situation becomes critical, the positions can be approved and funded at that time. DISCUSSION OF VOLUNTEER FIRE DEPARTMENT CONTRACTS Commissioner Sisson reported on the last meeting of the Board of Fire Commissioners and the need to write new contracts with the Volunteer Fire Departments to address the following issues: 1) Incorporate an equipment reversion clause whereby the equipment will be returned to the County. 2) Establish a better accounting system in order to know how County funds are being expended. Also, the By-Laws pertaining to appointment of members to serve on the Board of Fire Commissioners should be reviewed. The language is vague and has been interpreted by the members of the Board of Fire Commissioners to mean that all members must live within the district being represented. According to the County Attorney, the By-Laws should not be interpreted in this manner. () Consensus: After a lengthy discussion, it was the consensus of the Board to request the County Attorney to prepare a new draft contract for the Volunteer Fire Departments that will provide an equipment reversion clause; implement standard certified accounting procedures; and require quarterly reports within 45 days after County checks have been received. The draft contract is to be placed on an agenda for review and discussion. EXECUTIVE SESSION County Attorney Copley requested an Executive Session to discuss a legal matter. Motion: commissioner Barone MOVED, SECONDED by Vice-Chairman Mathews to convene to Executive Session for discussion of a legal matter. Chairman Greer convened to Executive Session at 10:05 P.M. Motion: commissioner Sisson MOVED, SECONDED by Commissioner Caster to reconvene to Regular Session. Upon vote, the MOTION CARRIED UNANIMOUSLY. () Chairman Greer reconvened to Regular Session at 10:16 P.M. DISCUSSION OF FUNDING FOR USDA COMMODITIES DISTRIBUTION Discussion was held on funding for the distribution of USDA commodities since the Food Bank will no longer provide this service. Consensus: After discussion, it was the consensus of the Board for staff to proceed to find another agency to distribute the USDA . . . ~ MINUTES OF SPECIAL MEETING AND CONTINUED MEETING JUNE 1, 1993 PAGE 512 commodities and include in the FY 1993-94 Budget $15,000 for commodities distribution. ADJOURNMENT Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the continued meeting from May 24, 1993, at 10:28 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board ~