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2023-06-01 Agenda Review NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 JUNE 1, 2023 AGENDA REVIEW MEETING PAGE 785 ASSEMBLY The New Hanover County Board of Commissioners met June 1, 2023 at 4:03 p.m. for Agenda Review in Conference Rooms 138-139 at the New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chair Bill Rivenbark; Vice-Chair LeAnn Pierce; Commissioner Jonathan Barfield, Jr.; Commissioner Dane Scalise; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney Wanda M. Copley; and Clerk to the Board Kymberleigh G. Crowell. Chair Rivenbark 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 5, 2023 Regular Meeting with discussions as noted: Consent Agenda Item #2: Personnel Policy Changes. Chief Human Resources Officer Mark Francolini explained in response to questions that the request is to amend the County’s policy that allows discretion regarding how overtime is applied according to the Fair Labor Standards Act (FLSA) solely to allow discretion regarding overtime for law enforcement personnel. FLSA allows overtime to be applied differently for sworn law enforcement personnel, anything over 171 hours in a 28-day cycle, as compared to a not exempt or hourly employee who works more than the standard 40 hours per week. Sheriff McMahon and Chief Deputy Sarvis asked staff look into the policy amendment. Consent Agenda Item #6: Register of Deeds Fee Schedule Revision. The Board thanked Register of Deeds Morghan Getty Collins for beginning the passport program. Regular Agenda Item #12: Public Hearing on the Fiscal Year (FY) 2023-2024 Recommended Budget. County Manager Coudriet stated that several documents had been shared over the last week to address Commissioners’ comments and that staff is prepared to answer any additional questions. Discussion ensued regarding a one-half cent property tax rate reduction. Commissioner Zapple stated that he made some minor adjustments to the draft sent by County Manager Coudriet and would email the changes to the Board. His proposed adjustments would reduce the proposed budget by approximately $2.5 million, equivalent to a one-half cent tax cut. Commissioner Scalise stressed the necessity for the Board to be deliberate about spending for FY2024, specifically for items with significant cost changes. He expressed concerns about the eventual depletion of the American Rescue Plan Act (ARPA) funds in terms of the implications that would have on the programs presently supported by the funds and how the Board will have to determine if the programs can be absorbed in the budget or allowed to expire. He recognized that the County's financial prosperity has provided many services to the community that otherwise might not have been able to occur. However, he would like to explore ways to achieve a reasonable property tax rate reduction without impacting essential County services. The goal would be to balance financial relief for taxpayers while maintaining the community services that make the County prosperous. Vice-Chair Pierce agreed with Commissioner Scalise stating that she wants a one-cent tax reduction. Commissioner Barfield stated that for the limited grant funded positions, employees hired with grant funds are made aware that they may or may not be employed when the grant funding runs out. His first budget as a County Commissioner was one that he voted against as it included a tax reduction when there was no need for one. That same year the County ended up doing layoffs, furloughs, and combining departments, which he felt were completely unnecessary. People come to this community expecting a certain quality of life, which costs money. He would like to know what the reduction requests mean and what will be cut. He believes there is a lack of thought in what will be cut and cannot understand the broad statement of just wanting a tax cut. The County is a growing community as well as the economic hub of southeastern North Carolina. It is important to encourage growth, encourage businesses to come here, and encourage housing affordability. Chair Rivenbark stated that with the increase in costs for projects such as the Blue Clay Business Park, he wants to be sure not to cut the County short. Further discussion was held about the proposed property tax rate reduction. Commissioner Scalise stated that his goal regarding the budget is to understand why items are included and what they mean. He wants to ensure that there is a purpose behind the County’s spending, especially in a year where spending increased by 18%. He hopes the dialogue amongst the Board can continue to determine which of those items that are aligned in the post- budget are truly essential elements of the Board’s duties. Vice-Chair Pierce stated that she is not interested in cutting quality of life items from the budget, such as parks, playground equipment, and other amenities. She noted that being conservative with public money is important. County Manager Coudriet stated that the staff has not endorsed any cuts from the recommended budget; they were only focused on providing options not currently in place. Commissioner Scalise agreed that the staff has yet to make any recommendations on potential cuts; they have only answered questions posed by the Board. A brief discussion ensued regarding the revenue stabilization fund (RSF). There was consensus from the Board that it wanted to avoid dipping into the RSF corpus and only use interest. Commissioner Barfield stated that the RSF has already helped to prevent a tax increase, helped to serve non-profits in the community and since the sale of the hospital the County has been able to do things that other counties cannot do. A brief discussion then ensued regarding the recent uptick in sales tax revenue. Chief Financial Officer Eric Credle stated that the March 2023 figures were compared to March 2022. For FY2024, the same figure for sales tax NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 JUNE 1, 2023 AGENDA REVIEW MEETING PAGE 786 revenue was budgeted, and Mr. Credle feels confident the County will meet that figure, although he is not sure that the County will exceed it as much as it did in FY2023. As to the Register of Deeds transfer tax revenue, transfer taxes are down, but not by much. He believes that the market has slowed down with the increase in interest rates. County Manager Coudriet addressed questions concerning the district attorney positions, stating that there are currently two prosecutor roles, with a third one proposed in the budget. Each of these positions is designated for a specific area: one for gun violence, one for gang intervention, and the proposed addition will respond to the opioid crisis. In response to the state allocation for the Bank of America Building purchase for Cape Fear Community College (CFCC), Mr. Credle explained that the County had already used the general fund to pay for the building. Following this, the County applied to the Local Government Commission (LGC) to issue debt to reimburse itself. The proposed state budget allocation came to staff’s attention after the LGC application was submitted. If the state budget is adopted, and the funds are allocated, the funds would go to CFCC. CFCC would then purchase the building from the County with those funds. The funds would be transferred into an irrevocable trust account and invested in the bond market to generate interest. The accrued interest, along with the principal received from CFCC, would be utilized to repay the debt as it matures. County Manager Coudriet responded to questions stating that the pay study examined pay classifications in relation to job value and compared with positions in North Carolina, Virginia, and Florida. Historically, the Board has also granted market adjustments to keep employees' wages in line with the Consumer Price Index (CPI). Mr. Francolini concurred with County Manager Coudriet's explanation, adding that the purpose of the pay study was to align the County's pay scales, grades, and job classifications with the labor market. The market adjustments, which address cost of living and inflation, are separate from the pay study, and would have been implemented regardless, as they are based on the CPI. As to employee turnover, Mr. Francolini confirmed there had been several losses due to employees finding higher wages elsewhere, sometimes in neighboring counties. County Manager Coudriet added that the County's vacancy rate had risen in comparison to recent years, with an 18% turnover rate in the most recent year, as opposed to the historical rate of 11-12%. He anticipated the FY2023 turnover to be around 17% and noted that turnover has associated costs. The pay study is intended to reflect the cost of the position, but the implementation of the pay plan is equally crucial as employees could already be behind due to the CPI. County Manager Coudriet confirmed that he recommends implementing both items. The changes will affect all employees, with the pay study adjustment being at least 1.5% and averaging about 4.5%. The cost of living adjustment (COLA) has been the sole adjustment in recent years. Further discussion took place regarding current vacancies per department. County Manager Coudriet confirmed that despite public safety pay increases last year, the Sheriff's Office still had a 10% vacancy rate. Mr. Francolini stated that vacancies, on average, are filled about 63 days after becoming vacant. The duration a position remains vacant depends on the specific role. Currently, there are approximately 135 vacancies within the County. County Manager Coudriet stated he believes the County is staffed appropriately in terms of size. Salary lag, which is factored into the budget, will end FY2023 at approximately $3.5 million. The staff annually budgets for a $2.5 million salary lag and considers this a suitable amount. Discussion ensued regarding Port City United (PCU). County Manager Coudriet referred to the presentation made by Rashad Gattison and his team during the April 5, 2023, meeting, highlighting the evidence-based nature of PCU's work. He explained that the program was developed in response to school principals' requests for Community Resource Coordinators, modeled after Bull City United (BCU) in Durham, which itself was based on the Cure Violence model. BCU is funded through Durham County, with the City of Durham also expected to contribute due to their interest in BCU's expansion. He provided a breakdown of the funding for PCU's various programs: $1.2 million for the Connect Center, which operates 24/7; $1.4 million for the mediators and community outreach team; and other funds allocated to legal aid (the district attorney's office), school resource officers (Sheriff's Office), and the pre-K expansion (school system). PCU also collaborates with community building programs such as the expansion of Elements and Too Good for Violence, which are not employed by PCU. PCU consists of violence interrupters, the Connect Center, and the data analytics team. The program was developed from the ground up, integrating resources across 22 schools. Without a mechanism for connecting children and their families to these resources, the only outcome is more people in the school system who are unable to facilitate those connections, which is the reason for the establishment of PCU Connect and it has fielded 3,000 calls over the past year. The portion of PCU funded by county government represents a small fraction of the total funding, with primary sources of funding coming from ARPA funds and interest from the RSF. Commissioner Scalise voiced concerns about PCU, citing the district attorney and some law enforcement's reservations about the program. Vice-Chair Pierce expressed concern about the potential risk of creating programs, projects, and positions that may not be sustainable in terms of future funding, especially given the reliance of employees and their families on those salaries. Chair Rivenbark thanked the Board for the discussion and asked for the Commissioners to send their desired budget adjustments to County Manager Coudriet as soon as possible. A brief discussion ensued on how to move forward as a budget must be adopted by June 30, 2023. County Manager Coudriet stated that Monday’s public hearing will be on the recommended budget, and staff will be able to answer questions, but there will not be a presentation. Regular Agenda Item #13: Public Hearing on Economic Development and Economic Incentives Appropriations. County Manager Coudriet stated that this item requires a separate hearing, even though the expenditures are in the recommended budget. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 JUNE 1, 2023 AGENDA REVIEW MEETING PAGE 787 Regular Agenda Item #14: Text Amendment Request (TA23-02) - Request by New Hanover County Planning and Land Use to amend Section 10.2.3 Community Information Meeting to clarify expectations and standards for Community Information Meetings required for applications for conditional rezonings, planned developments, and intensive industry special use permits. Planning and Land Use Director Rebekah Roth stated in response to questions that the public comment received after the text amendment had already been advertised to the public was a request to expand the requested amendment to include the I-1 Light Industrial zoning district. Staff felt it was inappropriate at that stage in the process to introduce a new amendment that interested stakeholders would not have an opportunity to provide input. The last Board policy direction staff received was in 2017 when the industrial special use permit (SUP) process, as it currently exists, was approved. The staff does try to be narrow in the scope of the staff initiated text amendments and when requested are either maintenance updates or are coming about due to an adopted Board policy. The Board would need to direct staff to proceed with the work for the I-1 Light Industrial zoning district. It takes about four to six months to work through the text amendment process, even if it is relatively minor. She stated that concerns have been expressed about the timeline when it comes to some of these types of projects as to whether it is necessary since the Board can continue or table requests for SUPs if it is determined that more time is needed. The number of areas with I-1 zoning in the unincorporated County have decreased since 2017, with only one parcel on Market Street, the Blue Clay Business Park, and Dutch Square Industrial Park. Ms. Roth stated that she has not spoken to any stakeholder beyond those who are making the request and that she does not have a complete understanding of the potential implications of such an amendment. Some people commented that they did not like the amendment itself, and there were some comments made in opposition to putting a harder line on community information meetings having to occur before an application. Regular Agenda Item #15: Rezoning Request (Z23-09) - Request by Rob Tanner with Impeccable Development, applicant, on behalf of Andrea Jones, Gwendolyn Horton, Christin Deener, Dwayne Barr, and Kimberlee Barr, property owners, to rezone seven (7) parcels totaling approximately 11.77 acres of land located at 6800, 6808, 6814, 6818, 6820, 6824, and 6828 Carolina Beach Road from R-15, Residential to 2.37 acres of (CZD) B-1, Neighborhood Business and 8.6 acres of land to (CZD) RMF-M, Residential Multi-Family - Moderate Density for a convenience store with fuel stations and a maximum 128 unit multi-family development. Senior Planner Robert Farrell stated regarding the 1.5% growth rate, previously, the Wilmington Metropolitan Planning Organization (WMPO) and the North Carolina Department of Transportation (NCDOT) worked through Traffic Impact Analysis (TIA) processes based on a 1% growth rate. On the Board’s direction, staff have advocated in the multi- agency meetings for consideration to be given at a higher rate and he would defer to the WMPO for a more comprehensive explanation. Even at a higher background growth rate, the assumption is that many other developments are also making improvements to the roadway system, which almost takes the burden off an individual project. Regarding water and sewer, Mr. Farrell stated that he would have to check with the applicant on those arrangements. Regarding sidewalks and other amenities, it is part of the planning process to include sidewalks for eventual connection into the trail system, but there was no discussion about off-site improvements. Ms. Roth added that the Planning staff is working with Parks and Gardens staff on including the sidewalk for future projects. The direction that has been received from the County Manager’s Office is that moving forward if there is a request as part of a conditional rezoning, staff is going to recommend the applicant to dedicate an easement for the multi- use trail so that the County can install it without having to purchase the right-of-way in the future. As to types of uses, no policy states how many gas stations, pharmacies, etc. are too many; that would be a legislative decision of the Board. STAFF UPDATE Soil and Water Conservation District Board of Supervisors update. Soil and Water Board of Supervisors Chair Sue Hayes presented the following information:  New Hanover County Soil and Water Conservation District (NHSWCD):  NHSWCD mission: To protect and enhance soil and water in New Hanover County (NHC)  NHSWCD strategic focus areas: soil and water, education, land conservation, organizational development  Soil and Water:  StRAP Program (stream debris removal):  Partnership with NHC Engineering  Funds received: $242,000  60 miles cleared with StRAP  Urban cost share programs:  NHC – Water Quality Improvement Program (WQUIP), Community Conservation (CCAP), and Heal Our Waterways (HOW)  Pages Creek restoration plan:  Partnership with NHC Engineering, NHC Planning, Cape Fear Public Utility Authority, Cape Fear Resource Conservation and Development, Moffit and Nichol, North Carolina Department of Environmental Quality, and UNCW  Timeline: July 2022-December 2023  Applying for EPA 319 funds: Spring 2024  Education:  Locally supported outdoor environmental learning centers th  Enviroscape to all 8 graders in NHC NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 35 JUNE 1, 2023 AGENDA REVIEW MEETING PAGE 788  Soil and water education programs: poster, speech, essay, electronic presentation, electronic poster contests, and Envirothon  Garbage to Gardens:  Partners: NHC Recycling and Solid Waste, Cooperative Extension/Arboretum  Approved hiring a Program Coordinator  Land conservation:  Eagles Island – Proposed Nature Park:  Issues:  High water table and wetland dominant, sea level rise, increasing flooding days, high tide and development would compound flooding and stormwater management  Benefits of nature park:  Provides community green space and recreational and educational opportunities  Point of Pride for New Hanover and Brunswick Counties  Ecotourism/economic attraction  Island Creek watershed:  Conservation of biodiversity and flood mitigation  Island Creek basin ecosystem white paper:  NC natural heritage area  Biodiversity hot spot  Island Creek basin ecosystem:  The Island Creek area is one of the few remaining, large natural areas in NHC  The area contains multiple ecosystems with high biodiversity that are at risk  >75% of Island Creek consists of organic-rich poorly draining (hydric) soils  A cumulative impact study would quantify the risks and public costs of habitat loss  NHSWCD recommendations:  Conserve Eagles Island and create an Eagles Island Nature Park  Conduct a cumulative impact study of the Island Creek watershed  Maintain adequate wetlands, tree canopy, and natural areas to control flooding and stormwater and enhance the quality of life for NHC residents  Include soil types in development ordinances  Establish a chief sustainability officer position in New Hanover County Ms. Hayes stated in response to questions that land at Island Creek is privately owned. The request is to have the County develop a plan to make sure when it is developed it is done in an environmentally friendly way. Chair Rivenbark thanked Ms. Hayes for the update. ADJOURNMENT There being no further business, Chair Rivenbark adjourned the meeting at 6:01 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim record of the New Hanover County Board of Commissioners meeting. The entire proceedings are available online at www.nhcgov.com.