1990-01-08 Special Meeting
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MINUTES OF SPECIAL MEETING, JANUARY 8, 1990
ASSEMBLY
The New Hanover County Board of Commissioners met in Special
Session on Monday, January 8, 1990, at 9:00 o'clock A.M. in Room
501 of the New Hanover County Administration Building, 320
Chestnut Street, Wilmington, North Carolina.
Members present were: Commissioners Jonathan Barfield, Sr.;
E. L. Mathews, Jr.; Nolan O'Neal; Vice-Chairman W. Albert
Corbett, Jr.; Chairman Fred Retchin; Acting County Manager; Mary
M. Gornto; County Attorney, Robert W. Pope; and Clerk to the
Board, Lucie F. Harrell.
Chairman Retchin called the Special Session to order stating
the purpose of the meeting is to discuss the possible purcnase of
Cape Fear Utilities Company, Inc. and Masonboro Utilities
Company, Inc. He welcomed Mr. Bill Dobo and Mr. Bob Dobo, owners
of the companies.
DISCUSSION OF NEW HANOVER COUNTY PURCHASING CAPE FEAR UTILITIES
COMPANY, INC. AND MASONBORO UTILITIES COMPANY, INC.
Finance Director of the Water & Sewer District, Alan
Mozingo, presented the following list of concerns with, the
proposed contract submitted by the owners:
1. Existence of agreements between the seller and other
parties creating future liability for the County.
2. Condition and/or existence of easements, right-of-way
agreements and encroachments.
3. Condition of system being purchased.
4. Condition of the sewage flowing to the County.
5. Insufficient knowledge of what the seller's system
entails.
Mr. Gary Shipman, the Attorney representing Bill and Bob
Dobo, expressed concern for not receiving this list of items
until today. He stated his role in preparing the proposed
contract began in December 1988 and that since that time various
documents have been forwarded to the County with no request for
additional information.
A lengthy discussion was held on a lack of communication
between the County and Attorney Shipman. Chairman Retchin stated
in the process of holding the Public Hearing to consider purchase
of the systems, proper documentation was not provided; therefore,
the Public Hearing was postponed until proper exhibits and
information were forwarded to the County Attorney.
Director of Engineering & Facilities, Ed Hilton, emphasized
the importance of receiving proper documentation to know that the
systems will pay for themselves stating the County cannot
purchase systems that will create a negative cash flow.
Mr. Bill Dobo stated figures prepared by the accounting firm
of Windham & Henderson show that the systems net $15,000 per
month for an annual income of $180,000. With payments of
$100,000 per year, the County will gain $80,000 per year.
A lengthy discussion was held on adequate documentation.
County Attorney Pope expressed concern for not having proper
documents to identify exactly what the County is purchasing.
Attorney Shipman stated 130 documents were forwarded to the
County without any additional information requested.
After further discussion, Attorney Shipman recommended that
the County submit all concerns to his office and that he will
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7~ES OF SPECIAL MEETING, JANUARY 8, 1990 (CONTINUED)
respond within an established time frame at which point, the
County can determine if they wish to purchase the system.
Consensus: After further discussion of concerns and proper
documentation, it was the consensus of the Board to request the
County Attorney to submit all points of concern associated with
the purchase of the systems within fifteen days (January 23,
1990) to Attorney Shipman with a response being returned by
Attorney Shipman within 30 days (February 23, 1990) with an
additional 30 days (March 23, 1990) for the County to determine
if the systems should be purchased. The Acting County Manager,
County Attorney, County Engineer, and Water & Sewer District
Finance Director are to represent the County in negotiating and
addressing the issues. The County Attorney is requested to keep
the Commissioners informed on any developments during the
process.
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Chairman Retchin expressed appreciation to Mr. Bill Dobo,
Mr. Bob Dobo, and Attorney Shipman for attending the meeting and
discussing the issue.
ADJOURNMENT
Commissioner O'Neal MOVED, SECONDED by Vice-Chairman Corbett
to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Retchin adjourned the Special Session at 9:59
o'clock A.M.
Respectfully submitted,
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L cie F. Harrell
Cle k to the Board
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