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1993-07-13 Special Meeting . . . ~ MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 577 ASSEMBLY The New Hanover County Board of Commissioners met in Special Session on Tuesday, July 13, 1993, at 7:00 P.M. in the Wilmington city Council Chamber, 102 North Third Street, Wilmington, N. C. Members present were: Commissioners Sandra Barone; William A. Caster; william E. Sisson, Jr.; Chairman Robert G. Greer; County Manager, Allen O'Neal; Assistant County Attorney, Kemp Burpeau; and Clerk to the Board, Lucie F. Harrell. Vice-Chairman Mathews was absent. Chairman Greer called the Special Session to order and reported the purpose of the meeting is to discuss the proposed contract for the Volunteer Fire Departments. Public comments will be received for the first hour with a Work Session following public input. Appreciation was expressed to the members of the Volunteer Fire Departments for the fire service provided to County residents and emphasis was placed on the importance of working together in resolving the items of concern. Attorney John J. Burney, representing the Volunteer Fire Departments, requested the Commissioners to hear presentations from three members of the Volunteer Fire Departments before receiving public comments. Emphasis was placed on the dedicated service rendered by the volunteer firemen and the need to allow the fire departments to continue providing a high quality of fire service without unnecessary restrictions and regulations. The Commissioners were requested to listen to the concerns of the volunteer firemen and negotiate a contract that will be satisfactory to all parties involved. Mr. Wilbur Davis, a member of the Myrtle Grove Volunteer Fire Department, reported the volunteer fire service was organized by concerned citizens in the 1950's and became incorporated as non- profit organizations that raised funds through donations and fund raisers for operation of the Volunteer Fire Departments. The County began funding the Volunteer Fire Departments in the mid-50's with a monthly appropriation of $50 to each fire department to assist with the maintenance of equipment. During the past 40 years thousands of volunteer hours have been given in raising funds to build fire stations, purchase equipment, and maintain fire equipment. with these efforts and the rapid growth of New Hanover County, the fire service has grown from a rural fire service to a suburban fire service, which is second to none in the State. Currently, all stations are recognized by the State of North Carolina and rated by the N. C. Department of Insurance. Volunteer fire fighters are doctors, lawyers, professional engineers, mechanics, factory workers, etc., who willingly risk their lives to provide fire service to the unincorporated areas of the County without pay. Last year, volunteer firemen received over 16,000 hours of training to maintain a quality fire service and answered over 1,000 fire calls. In summary, the Volunteer Fire Departments have become better trained and have established a goal to reduce the insurance rates for the County, which will be of substantial savings to homeowners. The Insurance Service Organization (ISO) rates the fire departments from a range of 1-10, with one being the best and ten the worst. The County now has an ISO rating of 9 and will strive to reduce this rate to 7 or less. with a Class 7 ISO rating, the insurance premium to a homeowner with a dwelling valued at $100,000 will be reduced annually from the current figure of $487 to $384. The 2.5 cents per $100 tax rate paid by homeowners in the Fire District is truly a good deal for the fire service received. The volunteer firemen are proud of their accomplishments and invite the Commissioners to visit the fire stations and get to know the citizens who give of their time to provide fire service to County residents. j ( I I I i l ~NUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 578 Mr. Leonard Long, a member of the Wrightsboro Volunteer Fire Department, reported in 1976, the citizens of the municipalities were concerned about being taxed to provide fire service to County residents. A plan was prepared by the New Hanover County Planning Department for establishment of a County Fire Service District. In FY 1984-85, the Board of County Commissioners established a Fire Service Tax District for the unincorporated areas of New Hanover County. The tax was levied in 1986 and was intended to fund the needs of the Volunteer Fire Departments. Each fire department submits a detailed budget outlining current expenditures and the necessary expenditures for the next fiscal year. Also, a 5-year plan is prepared and presented at this time. As one can see, a rural fire service has developed into a suburban fire service because of the skilled volunteers. with the fire tax proceeds and donations, the volunteer firemen have provided a top of the line fire service, through quality training, and accountability for the use of Fire District funds. Concern has been expressed for the size of the unappropriated fund balance in the Fire Service District. During the first two years of operation, the Fire Service District did not receive a portion of the sales tax that by law should have been transferred to the District. When the error was discovered by the County, all back funds were transferred to the Fire Service District which greatly increased the unappropriated fund balance. The additional funds were used to purchase and maintain equipment. Generators were purchased for each Volunteer Fire Department; the paging system was upgraded; an air supply vehicle was purchased with cash; the aerial truck was paid off; and a new tanker truck was purchased. Plans are being developed for a radio system that will serve not only the Fire District but all County departments. The fire tax was levied to fund the needs of the Volunteer Fire Departments to provide a quality fire service to the unincorporated areas of the County. The Commissioners were requested to read the information presented in the original plan prepared by the Planning Department on May 29, 1985, which thoroughly defines the purpose of the Fire Service Tax District. () () Mr. Lou Mattes, Fire Chief of the Myrtle Grove Volunteer Fire Department and former Chairman of the Board of Fire Commissioners, presented the following items of concerns: 1) District Representation: The intent of the Task Force, who established the Board of Fire Commissioners, was to balance the membership according to fire districts. The Commissioners' four appointees were to represent the Fire Districts that were opposite of the four Volunteer Fire Departments' appointees. A County Commissioner was to be appointed to serve as the ninth member. This appointment policy has provided district representation for all the Volunteer Fire Departments. The recently appointed member by the Board of County Commissioners violated the By-Laws and ignored the intent of district representation as established by previous County commissioners. An error has occurred and the Board of Fire Commissioners requests that this error be corrected. 2) Use of the Fire Service Tax for Other Purposes: The intent of the f ire tax was to finance the needs of the volunteer fire service in the unincorporated areas of the County. Since that time, the County Commissioners have funded the following items from the fire tax: () The N. C. Forestry Service which provides more than fire service through forest management and insect control programs. Also, the Forestry Service performs work within the City Limits. Funding of the Fire Code Enforcement Division in the amount of $172,000 for FY 1993-94. A fee schedule was to ~ ~'." I MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 579 be in place to fund this division; however, the entire cost has been transferred to the Fire Service Budget. Also, fire inspections are performed for the City of Wilmington. Where is reimbursement from the city? The Fire Code Enforcement Division should be funded by the developers or people using the service. . 3) Open Ended Language in the Proposed Contract for the Volunteer Fire Departments: certain portions of the contract do not specify exact details and are open ended. A portion specifically states that the Fire Commission will be required- to follow the directions of Emergency Management. There is no problem with Emergency Management; however, in a contract, the Volunteer Fire Departments should be allowed to provide the cost for a particular level of service. 4) Approval of Donations: The quality of fire service has operated through donations received from the citizens of the County. These donations have allowed the Board of Fire Commissioners to purchase fire equipment and sponsor award ceremonies. The Board of Fire Commissioners cannot understand why this section was placed in the proposed contract. No explanation has been presented. . 5) ownership and Control: The fire service of New Hanover County responded to the request by County Government in the mid 80's to approve establishment of a Fire Service District. During this period of time, the Volunteer Fire Departments have made a transition from a rural fire service to a suburban fire service. It is the belief of the Volunteer Fire Departments that the County has received a quality fire service for the money expended. The annual funding provided to the Volunteer Fire Departments is a fee for the service provided. No contract for the provision of a service requires that the equipment, whether a fire truck or other equipment, be under the ownership of the County. The County has received the fire service as contracted with no breach of contract and the seven non-profit Volunteer Fire Departments have improved the quality of equipment, fire training, administration and fire service at an inexpensive tax rate. Any type of language which changes the ownership or control of the property involves the County at a level, at which it should not be. It is a known fact that when government intervenes, the cost of a service drastically increases. For example, when EMS was provided through volunteers, the annual cost was $600,000. When the County decided to establish the EMS Department, the annual cost has increased to $3,000,000 and continues to grow. . In summary, if the Commissioners want trust from the volunteer firemen, this trust must be earned. The volunteers are trying to return to the community much more than the County funds received. It is felt that County Administration has not communicated with the Volunteer Fire Departments, who desire straight forward contracts without ownership by the County. The volunteer firemen have worked diligently and do not desire to go backward. These volunteers have risked their lives and received injuries while providing fire service. They want to do what is right without complete County control. Commissioner Caster commented on the ISO rating of Class 9 and inquired as to the realistic rating that can be reached by the County Volunteer Fire Departments? Mr. Mattes reported without a county-wide water system, the ISO rating cannot be reduced lower than a Class 6 or 7 rating. Mr. Wilbur Davis reported the Myrtle Grove Volunteer Fire is applying for a split ISO rating with a Class 5 rating in areas where fire hydrants are installed and a Class 8 rating in areas j MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 580 where fire hydrants are not installed. provide a savings to homeowners. This split rate will Discussion was held on additional costs involved with OSHA regulations. Mr. Leonard Long reported OSHA programs are now being included in NFPA Standards; therefore, additional fire apparatus is required for safety and this equipment is expensive. Discussion was held on the error made by the County in the distribution of a portion of the sales tax to the Fire Service District and the public perception of a large contingency account within the Fire Service District. County Manager O'Neal reported when the Fire Service District was established, a portion of the sales tax should have been appropriated to the Fire Service District as required by the General Statutes governing the distribution of the sales tax; however, these funds were not transferred to the Fire Service District; therefore, when the error was discovered all past and current funds, were transferred into the Fire Service District account, which did create a sizeable unappropriated fund balance. Chairman Greer inquired as to whether anyone present would like to present any comments. The following remarks were received: Mr. Fred Worsh, a former Chairman of the Board of Fire Commissioners for the past two years, commented on the following issue: 1) North Wilmington Volunteer Fire Department: The Board of Fire Commissioners brought this matter to the attention of the Sheriff, County, and news media. An investigation was made by the Sheriff's Department, and the Board of Fire Commissioners at that time decided to work with the North Wilmington Volunteer Fire Department to bring this department up to accepted standards. While there was some initial improvement in the fire department, several opposing glitches developed within the department which lead to charges and countercharges of sexual harassment, financial mismanagement, and corruption. At this point, the Board of Fire Commissioners, with the support of the other Volunteer Fire Departments, requested the Board of County Commissioners to terminate the contract with the North wilmington Volunteer Fire Department and authorize another investigation by the Sheriff's Department. Emphasis was placed on the fact that the Board of Fire Commissioners initiated the action taken against the North wilmington Volunteer Fire Department on both occasions, not the self- appointed watchdogs of the press. 2) Reports by the News Media Relative to the Financial Loss Incurred by New Hanover County with Termination of the Contract with the North wilmington Volunteer Fire Department: Of the vehicles owned by the North Wilmington Volunteer Fire Department, only two were worth more than their scrap metal. In 1986 and 1987, two pumper tanks were purchased at a cost of $100,000 each and are currently worth $40,000 to $60,000 each depending upon their condition. The point that has been overlooked is the fact that the vehicles were not paid in full. The North wilmington Volunteer Department still owes three payments of $15,407 for the 1986 pumper tank and four payments of $16,838 for the 1987 pumper tank for a total of $113,573. The responsibility for payment goes with the vehicles as a lien; therefore, if New Hanover County had taken possession of the fire trucks, the County would have acquired a debt of $113,573 with the trucks valued at less than $100,000. As County taxpayers, the Judge who ruled against New Hanover County should be thanked for saving the County money. Emphasis was placed on the fact that the press grossly misrepresented this matter. () () () ~ MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 581 Chairman Greer expressed appreciation for the public input and made the following recommendations: . 1) Appointments of Members to Serve on the Board of Fire commissioners: The County Commissioners, in his opinion, have not followed the rules when appointing members to se~ve on the Board of Fire Commissioners; therefore, this item should be further clarified and addressed by the Board of County Commissioners. Consensus: It was the consensus of the Board to review and study the appointment procedures and By-Laws of the Board of Fire Commissioners. 2) Funding of N. C. Forestry Service: The Fire Service District should pay for the N. C. Forestry fire protection service; however, if some incorporated areas are being included in this service, this item should be addressed by the Commissioners. Consensus: It was the consensus of the Board to direct staff to check into this matter. 3) Funding of Fire Code Enforcement Division: The County is now required to provide fire code enforcement as part of the fire service; therefore, this item should be funded by the Fire Service District. If an excessive amount of funds have been appropriated from the Fire Service District for code enforcement, this item can be reviewed and addressed by the Commissioners including the permit fee schedule and time spent on computer entries for the incorporated areas of the County. . Consensus: It was the consensus of the Board to direct staff to check into these matters. 4) Open Ended Contracts: The County is not interested in becoming involved with open ended contracts; therefore, this item can be addressed by the Commissioners. 5) Donations: The County is concerned with large donations and the manner in which these funds are handled. This item can be reviewed and addressed by the Commissioners. 6) ownership of Property: The property paid for by the taxpayers should belong to the County. 7) Earning Trust: In order for the Board of County Commissioners and Volunteer Fire Departments to earn trust, this is a two-way street that requires the understanding of both parties. Chairman Greer commented on the valuable service rendered by the Volunteer Fire Departments and reported the Commissioners are not against the volunteers; however, both parties must be willing to work together. In his opinion, the issues of concern can be resolved. . Commissioner Sisson reported the reason for problems being experienced is the rapid growth that has transformed a rural county into a suburban county. When the nature of an area changes, the demands to serve the area change. While serving as the Commissioners' representative on the Board of Fire Commissioners, the main cause for concern has come from seeing too little cooperation among the Volunteer Fire Departments and too much turf staked out, which inhibits the proper function of the Fire Commission. In terms of district representation, this is an area that should be addressed by the County Commissioners. As a matter of information, the district representatives are not always separate and apart from the Volunteer Fire Departments. Some j ,.----- / I l MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 582 representatives are former members of the Volunteer Fire Departments. As to the ownership of equipment purchased by County funds, the County must develop some form of protection for use of the taxpayers money to ensure the funds are used for the intended purpose. commissioner Barone recommended consideration of the following amendments to the proposed contract: () Paragraph 7 - Contractor cooperation: Change the wording to read as follows in order to clarify the language: "The contractor shall make every reasonable effort to cooperate with the Board of Fire commissioners, County Departments and wi th other County funding recipients, including, but not limited to timely submission of fire reports." Paragraph 21 - Trust Properties: When equipment is purchased, the County does purchase a stripped down model and through donations and fund raising efforts of the Volunteer Fire Departments, amenities are added with donated funds; therefore, in order to properly reimburse the Volunteer Fire Departments if dissolution should occur, the wording should be changed to read as follows: "Should an asset have been acquired through the co-mingling of County funding with Volunteer Fire Department funds, the County, if electing to acquire said asset, shall pay the Volunteer Fire Department the proportional fair market value of the equity not attributable to County funding." Paragraph 22 - Donation Approval: Change this section to read as follows: "Any donation, grant, or matching fund from non- county sources (except federal sources) to Volunteer Fire Departments of $10,000 or more in value to be utilized for land acquisition, construction, or building renovation, must be approved by the Fire Commission with final ratification by the Board of County Commissioners. () Mr. Fred Worsh expressed concern for a future County Manager or Board of County Commissioners being opposed to a County operated volunteer fire service and inquired as to what would s~op the cancelling of all contracts with the Volunteer Fire Departments at one time if the ownership of property and no fault clause are included in the contract? The equipment would revert to the County and a municipal fire department could be established. Safeguards should be in the contract to prevent this type of incident. The County is paying a fee for the provision of fire service, not for payment or cost of equipment. commissioner Barone disagreed and reported any fire equipment purchased with taxpayers' money is a public trust and must be protected. Attorney Burney expressed concern for the wording of the contract and referred to Paragraph 2, Description of Contractor's Service Area, which reads as follows: "The Contractor shall use County funds to provide services within New Hanover County, as indicated in section 1 and the attached Exhibit "A". He recommended eliminating the words "use of County funds" from this paragraph because this statement requires the Volunteer Fire Departments to use County funds to put out a fire. chairman Greer inquired as to whether both parties should work with the present contract instead of the proposed contract when trying to resolve the matters of concern? ie) Attorney Burney recommended usage of the present contract and stressed the importance of trust among the parties involved. The volunteer firemen are worried and very much in fear of a paid . . . ~ MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 583 County Fire Department being established as implied by a member of the Board. commissioner sisson reported, for the record, he has never implied that the proposed contract was a step leading to establishing a paid County Fire Department. However, if New Hanover County continues to grow, eventually a paid Fire Department will have to be established to provide fire service. He is most appreciative of the service provided by the volunteer firemen, but is concerned about protecting County tax dollars. Chairman Greer closed the Public Hearing and reported a Work Session will follow to discuss the matters of concern. All persons present were invited to stay. Attorney Burney, ~n behalf of the Volunteer Fire Departments, expressed appreciation to the Board of County Commissioners for calling the meeting and allowing public input. AMENDMENTS TO PROPOSED VOLUNTEER FIRE DEPARTMENT CONTRACT After a lengthy discussion among all persons present, it was the consensus of the Board to amend (in bold print) the proposed contract as follows: Paragraph 2. Description of Contractor's Service Area: Delete the words, "use of County funds" to read as follows: Paragraph 6.1. Accounting. service" to read as follows: Add the words "or its bookkeeping ...The Volunteer Fire Department or its bookkeeping service shall utilize such personal computer software as required and provided by the County for documenting all transactions..... Paragraph 6.2. Financial Records. Amended to read as follows: Contractor shall establish fiscal control and accounting procedures in accordance with Generally Accepted Accounting Principles acceptable to the County. The procedures shall account for all funds paid by the County to the Contractor, and the County shall maintain such records for three (3) years after the date of termination of this contract. The Contractor shall provide accounting and financial reports with such frequency as acceptable to the County. Paragraph 7. Contractor Cooperation. Delete, "full cooperation with the Department of Emerqency Manaqement" to read as follows: Contractor shall make every reasonable effort to cooperate with the Board of Fire Commissioners, County Departments and with other County funding recipients, including but not limited to timely submission of fire reports. Delete Section 21. Trust Properties. section 22. follows: Donation Approval. Amend this section to read as Any donation, grant, or matching fund from non-county sources (except state and/or Federal sources) to Volunteer Fire Departments greater than Ten Thousand ($10,000) Dollars in value to be utilized for land acquisition, construction, or building renovation, must be approved by the Fire Commission, subject to final ratification by the Board of County Commissioners. Should a Volunteer Fire Department desire to utilize County monies to acquire any real property, the Volunteer Fire Department must first obtain an environmental j (~- MINUTES OF SPECIAL MEETING, JULY 13, 1993 PAGE 584 assessment on said property with results acceptable to the Fire Commission and County. Chairman Greer requested the Assistant County Attorney, Kemp Burpeau, to incorporate the changes listed above into the proposed contract and meet with Mr. Burney to see if these amendments are acceptable to all parties involved. ADJOURNMENT Chairman Greer adjourned the Work Session at 9:45 P.M. Respectfully submitted, ~d#~ Lucie F. Harrell Clerk to the Board () () ()