1993-06-01 Special Meeting
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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.
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Members present were: Commissioners Sandra Barone; William A.
Caster; William E. Sisson, Jr.; Vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen O'Neal; County
Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F.
Harrell.
Chairman Greer called the meeting to order and 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:
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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:
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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.
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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?
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MINUTES OF SPECIAL MEETING AND CONTINUED MEETING
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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.
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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.
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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.
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Chairman Greer adjourned the Special Meeting at 8:15 P.M.
Respectfully submitted,
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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.
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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
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JUNE 1, 1993
PAGE 510
money being set aside for teachers, who are the individuals on the
front line.
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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.
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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.
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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
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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.
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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.
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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.
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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
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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
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