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2021-06-17 Agenda Review NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AGENDA REVIEW MEETING, JUNE 17, 2021 PAGE 138 ASSEMBLY The New Hanover County Board of Commissioners met for Agenda Review on Thursday, June 17, 2021 at 4:00 p.m. via in-person and remote in the Harrell Conference Room at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chair Julia Olson-Boseman; Vice-Chair Deb Hays; Commissioner Jonathan Barfield, Jr. (remote); Commissioner Bill Rivenbark; and Commissioner Rob Zapple. Staff present: Deputy County Manager Tim Burgess; Deputy County Attorney Kemp Burpeau; and Clerk to the Board Kymberleigh G. Crowell. Chair Olson-Boseman called the Agenda Review meeting to order and announced that the purpose of the meeting is to review and discuss the agenda items for the June 22, 2021 Regular Meeting with discussions as noted: Consent Item 4. Adoption of a Resolution by the County of New Hanover Approving the Memorandum of Agreement (MOA) Between the State of North Carolina and Local Governments on Proceeds Relating to the Settlement of Opioid Litigation. In response to Board questions, Deputy County Attorney Burpeau stated that he does not know if the payout for the settlement has been resolved. There is the Attorney General’s arrangement for a settlement and clearly, it would not be appropriate to get excessive funding from both sources, one or the other would be appropriate. A resolution will be reached, but he could not confirm that would occur prior to Monday. He further clarified that the County would not receive double compensation. Consent Item 7. Ratification of DR-4543 Hazard Mitigation Grant Program (HMGP) Project/Application. In response to Board questions, Beth Schrader, Recovery and Resilience Director, explained that the project concerns a home that the County originally submitted both in Florence and Dorian for elevation, but the finances of the house did not work to meet the benefit cost analysis requirements. For the benefit cost ratio, the Stafford Act must be honored. In rare circumstances the alternative is to work around the issue by doing a new foundation and building a new elevated structure on top. The County can make the math work to help, which is what is being proposed in this case. All other projects have been either approved as acquisitions or elevations and the demand was so high that the County was not able to serve everybody. In response to further questions, Ms. Schrader explained plans are still being worked on, which is why staff is looking at the budget. It is important to understand that if the budget really changes much more, the state is going to have to step in to pick up the difference. There are concerns with construction costs which is estimated right over $149,000. As the federal limit is $150,000, the engineering study may cause it to be a bit more expensive. The County does have about $20,000 worth of flex room to still meet the benefit cost analysis. Any extra funds would have to come from the state. When staff works through the analysis and receives updated numbers along with the updated engineering, that will show whether estimates are in the right area. There is the potential ability with the state to one of its manufactured housing units or the state’s buying power for a pre-ordered priority dorm, which the County may be able to get at a free inflationary price. Consent Item 8. Ratification of 2021 DR-4588 Tropical Storm Eta Hazard Mitigation Grant Program Projects/Application and Adoption of Resolution for Designation of Applicant's Agent. In response to Board questions, Ms. Schrader explained that all hazard mitigation grant funding is associated with presidential disaster declarations. These are not the annual ones, rather these are disaster tied. There are two major projects that are involved. One is the installation of a manual generator transfer switch and concrete pad to enable easy connection of a generator to provide additional power to the Health and Human Services Building to support emergency operations. The second project is a component of the recently adopted Southeastern North Carolina Regional Hazard Mitigation Plan which includes the implementation of projects to reduce flooding risk, address stormwater capacity issues, and reduce the impact of both to water quality. The proposed project would target the Prince George Creek and Smith Creek watersheds. Consent Item 11. Appointment of The Healing Place Board Members. In response to Board questions, Mr. Burpeau stated that The Healing Place of Louisville wrote The Healing Place of New Hanover County, Inc. bylaws as required by the agreement the County entered. It also created the nonprofit. The bylaws were shared with the County Attorney’s Office and staff was able to provide responses, of which several were incorporated into the document. It is a unique situation where the corporation has not been created by the County, but rather by The Healing Place of Louisville which also has controlling interest. The Healing Place of New Hanover County, Inc. will be a 501(c)(3) organization. The County is guaranteed a minimum of three appointments on the initial board, the Commissioners will have the right to remove and replace its appointees, and after the initial board terms are complete, the board will become self-perpetuating. Brief discussion was also held about the ownership of the building. Trillium donated the land, and the County owns the building and leases it back to The Healing Place. Consent Item 12. Appointment of an Elected Official to Serve on the Military Ocean Terminal Sunny Point (MOTSU) Intergovernmental Council. The consensus of the Board was to appoint Vice-Chair Hays to serve on the Military Ocean Terminal Sunny Point (MOTSU) Intergovernmental Council. Formal action will take place at the June nd 22 meeting. Consent Item 13. Appointment of Voting Delegate to the 2021 North Carolina Association of County Commissioners (NCACC) Annual Conference. The consensus of the Board was to appoint Commissioner Zapple as NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AGENDA REVIEW MEETING, JUNE 17, 2021 PAGE 139 the voting delegate for the 2021 North Carolina Association of County Commissioners (NCACC) Annual Conference. nd Formal action will take place at the June 22 meeting. Regular Item 14. Consideration of Budget Amendment Appropriating American Rescue Plan (ARP) Act Funding and Required Public Hearing. In response to Board questions, Chief Financial Officer Lisa Wurtzbacher stated this is a grant the County needs to have in place to adopt the ARP funds. There are also two associated budget amendments. A third budget amendment moves funds out of the ARP for stormwater utility fund expenses. A brief discussion was held about employee bonuses. The interim guidance from the U.S. Treasury states that if employees were teleworking full time and not interacting with the public, ARP funds could not be used to issue those employees a bonus. The County did not want to leave anyone out, but there is also a cap on the amount that can be given. There will be two bonuses issued: one for County employees, including the Sheriff’s Office employees, and another for anyone who participated directly in the vaccine distribution. Amounts to be disbursed are dependent on an employee’s hire date and how long they were working during Covid. Regular Item 16. Consideration of Strategic Plan Update. Vice-Chair Hays explained that a County employee, Kelly Colacchio, made a recommendation during one of County Manager Coudriet’s Town Hall meetings that the County strategic plan should incorporate equity in the vision and mission statements. She worked with Chief Diversity and Equity Officer Linda Thompson and Chief Strategy Officer Jennifer Rigby to draft the proposed language shown in red in the agenda packet attachment for the Board’s consideration. Regular Item 17. Consideration of Investment Policy and Adoption of Resolution for Revenue Stabilization and Mental Health and Substance Use Disorder Funds. Ms. Wurtzbacher explained that in the policy, investment parameters are included that are appropriate for the general operating funds of the County. Staff is requesting a separate policy that better meets the needs of the longer-term use of the Revenue Stabilization and Mental Health and Substance Use Disorder funds. The intent of the use of the funds is to focus on interest earnings rather than the corpus of the investment. As such, the County is afforded different opportunities to invest the funds as opposed to the general operating funds of the County. Parameters for this policy include a maximum maturity of 10 years and that investment in a single issuer shall not exceed 20% of the total portfolio. This policy will be strictly for the Revenue Stabilization fund and the Mental Health funds and not the general operating funds of the County. The County must also update its resolution with its investment custodian allowing the Chief Financial Officer and the Deputy Chief Financial Officer to be the authorized representatives for the County. Regular Item 19. Committee Appointments. In response to Board questions, Clerk Crowell explained that the ABC Board appointment will consist of two actions; one to appoint the member and a second to appoint the chair for the ensuing year. STAFF UPDATE State Centric Model for Managing FEMA Projects. Assistant County Manager Sheryl Kelly gave a brief presentation regarding the State Centric model for hazard mitigation grants. She explained that New Hanover County must decide whether to participate in a new state model for managing FEMA Hazard Mitigation grants. The NC Division of Emergency Management (NCEM) is implementing a new management structure for a subset of these grants, with the intention of incorporating all FEMA hazard mitigation grants in the future. Under this new structure, the state will serve as both the applicant and sub-applicant for grants. Currently, counties serve as sub-applicants. NCEM is referring to this approach as the “State Centric model.” Through the State Centric model, the state will be responsible for all contracting and most of the financial management aspects. This model is like the management approach for the state funded Disaster Recovery Act (DRA) projects that are currently underway related to Hurricane Florence. Some of the advantages of the approach include: • Reduced workload for County Finance and Legal • Regional approach to management of FEMA hazard mitigation grants • Possibility of more opportunities for individual assistance • Availability of 5% grant management cost to support continued County responsibilities Some of the disadvantage of the approach include: • County still responsible for submitting grant applications • State is currently establishing this new program, so efficiency of program is unknown • County workload related to grant management may increase depending on state management capabilities NCEM has indicated that counties must either opt into the State Centric model, or opt out, whereby the County must submit a workplan for NCEM approval for every FEMA hazard mitigation grant opportunity. Staff is not aware of any counties that are choosing to opt out, with the possible exception of Mecklenburg County. Given the advantages of the State Centric model, coupled with complex operational and reporting requirements for opting out, staff is recommending that the County opt into the State Centric model. At this point in time, opting into the State Centric model would involve state management of only a small subset of the County’s FEMA grants. This would include individual assistance for several residences that were damaged during Hurricane Florence. The general consensus of the Board was for staff to proceed with having the County opt into the State Centric model. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 AGENDA REVIEW MEETING, JUNE 17, 2021 PAGE 140 ADJOURNMENT There being no further business, Chair Olson-Boseman adjourned the meeting at 4:34 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim of the New Hanover County Board of Commissioners meeting.