1993-07-13 Special Meeting
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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.
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~NUTES OF SPECIAL MEETING, JULY 13, 1993
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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.
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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:
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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
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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.
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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.
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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.
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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
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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.
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MINUTES OF SPECIAL MEETING, JULY 13, 1993
PAGE 581
Chairman Greer expressed appreciation for the public input and
made the following recommendations:
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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.
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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.
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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
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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:
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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.
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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?
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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
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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
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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,
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Lucie F. Harrell
Clerk to the Board
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