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2023-11-20 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 49 ASSEMBLY The New Hanover County Board of Commissioners met November 20, 2023, at 9:00 a.m. in Regular Session in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, 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 K. Jordan Smith; and Clerk to the Board Kymberleigh G. Crowell. INVOCATION AND PLEDGE OF ALLEGIANCE Chief Diversity and Equity Officer Linda Thompson provided the invocation and Commissioner Scalise led the audience in the Pledge of Allegiance to the Flag. APPROVAL OF CONSENT AGENDA Chair Rivenbark requested a motion to approve the Consent Agenda as presented. Commissioner Zapple requested Consent Agenda Item #5: Receipt of Trillium Health Resources Bottle Tax Report be pulled for further discussion. At his request, Trillium Health Resources Southeastern Regional Director Cecelia Peers provided an overview of the report and explained the consolidation of the state-funded regional behavioral health management companies from six to four. She clarified how the County remits the 5-cent bottle tax, received from the ABC Board to Trillium Health Resources (Trillium), as required by statute. The tax must be allocated for the treatment of alcoholism or substance abuse, or for research or education on alcohol and substance abuse. Regarding the directive from the NC Department of Health and Human Services (DHHS) Secretary Kody Kinsley to reduce the state’s Local Management Entity/Managed Care Organizations (LME/MCOs), Ms. Peers stated that a consolidation plan must be submitted to the state by December 1, 2023. The directive aims to reduce the number of LME/MCOs to a maximum of five but not less than four. There was recently a proposal for the merger of two st LME/MCOs, Sandhills Center and Eastpointe, submitted to the state on August 1, 2023. On November 1, Secretary Kinsley issued a directive dissolving Sandhills and leaving Eastpointe as the surviving entity. Eastpointe will serve eight of the 11 Sandhills counties. Eastpointe will then consolidate with Trillium, resulting in the largest LME/MCO in the state, covering 46 counties. The go-live date is set for February 1, 2024. LME/MCOs participating in the consolidation were required to submit a consolidation plan by the previous Friday, and consolidation agreements must be submitted to the state by December 1, 2024. Trillium is actively focused on ensuring continuity of care for members in both its existing and new counties. Preparations are underway to operate in all 46 counties, and Trillium has prior experience with consolidations and integrating counties from other LME/MCOs. Trillium is actively working to expand its provider network to ensure members receive care and timely claims payment. Ms. Peers indicated that her plan is to continue as the Regional Director, with support from stakeholder-facing staff in various areas. A brief discussion ensued about the history of Trillium and Commissioners expressed concerns about the consolidation creating services that are watered down. The Board expressed appreciation to Ms. Peers for her work. Commissioner Barfield requested Consent Agenda Item #6: Adoption of Resolution Supporting NCDOT Grant Application to the US Department of Transportation's Bridget Investment Program for the Replacement of the Cape Fear Memorial Bridge be pulled for further discussion. He reported that the County, along with other members of the Wilmington Metropolitan Planning Organization (WMPO), supports the North Carolina Department of Transportation (NCDOT) grant application for the US Department of Transportation's Bridge Investment Program. The application aims to secure federal and/or state funds to help offset the costs associated with replacing the Cape Fear Memorial Bridge. He expressed his full endorsement of the resolution and opposition to having a toll bridge installed for access to and from the community. Hearing no further discussion, Chair Rivenbark asked for Board direction on the Consent Agenda. Motion: Commissioner Scalise MOVED, SECONDED by Commissioner Zapple to approve the items on the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes – Governing Body The Commissioners approved the minutes of the November 2, 2023 Agenda Review and Closed Session and the November 6, 2023 Regular Meeting. Approval of Azalea Festival Memorandum of Agreement – County Manager The Commissioners approved and authorized the county manager to execute the Memorandum of Agreement with the North Carolina Azalea Festival at Wilmington, Inc. Adoption of Budget Amendments – Budget The Commissioners adopted the following budget amendments amending the annual budget ordinance for the fiscal year ending June 30, 2024: Board of Elections 24-033 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 50 Communications and Outreach 24-034 Copies of the budget amendments are hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 21.1. Approval of Board of Education Budget Amendment – Budget The Commissioners approved the Board of Education’s request for a budget amendment to transfer $570,484.05 in savings from completed projects to new or existing projects as follows:  Unexpected Repairs - $129,484.05  Williston Boiler Replacement - $200,000.00  Painting (various sites) - $60,000.00  Child Nutrition Freezer Door Replacement - $60,000.00  NHHS Boiler Replacement - $81,000.00  DDC Master Systems Integration (existing project) - $40,000.00 Receipt of Trillium Health Resources Bottle Tax Report – Finance The Commissioners accepted the Trillium Health Resources Bottle Tax Report for New Hanover County. Adoption of Resolution Supporting NCDOT Grant Application to the US Department of Transportation's Bridge Investment Program for the Replacement of the Cape Fear Memorial Bridge – Planning The Commissioners adopted the resolution supporting the NCDOT application to the U.S. Department of Transportation’s Bridge Investment Program (BIP) for the replacement of the Cape Fear Memorial Bridge. A copy of the resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 21.2. REGULAR ITEMS OF BUSINESS PRESENTATION OF SERVICE AWARDS AND INTRODUCTION OF NEW EMPLOYEES County Manager Coudriet requested the following employees to step forward to receive service awards: Ten Years: Sheila Adkins, Health and Human Services (HHS) – Social Services Daniel Soggie, Sheriff’s Office Fifteen Years: Julia Wiles, HHS – Health Department Twenty Years: Karen Benton, 911 Public Safety Communications Twenty-Five Years: Margaret Eaton, HHS - Administration Melita Newkirk, HHS – Social Services Forty Years: Margaret Miles, Library Chair Rivenbark presented a service award to each person and the Commissioners expressed appreciation and thanked each one for their years of dedicated service. County Manager Coudriet requested the following new employees to stand and be introduced: Bianca Bowen, HHS - Social Services Allison Lee, HHS – Social Services Latonya Boynton, HHS – Social Services Derek Shrewsberry, Engineering Kelly Coughlin, Community Justice Services Tiffany Smith, HHS - Social Services Nena Crowe, HHS – Social Services Jessica Stitt, Soil and Water Rose Davis, HHS – Social Services William Wilburn, HHS - Social Services The Commissioners welcomed the employees to County Government and wished them success in their new positions. CONSIDERATION AND ADOPTION OF THE ADOPTION AWARENESS MONTH PROCLAMATION Chair Rivenbark read the proclamation into the record recognizing November 2023 as Adoption Awareness Month in New Hanover County. Permanency Planning Supervisor Tiffany Bickel and Permanency Planning Manager Brian Bocnuk expressed appreciation to the Board for adopting the proclamation. A brief discussion ensued about ways members of the community can help as not everyone can adopt a child. Mr. Bocnuk discussed the need for more focus to be on fostering and mentoring older youths. The Commissioners expressed appreciation for the work of Mr. Bocnuk and his team. Hearing no further discussion, Chair Rivenbark requested direction from the Board. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 51 Motion: Commissioner Barfield MOVED, SECONDED by Commissioner Scalise to adopt the proclamation recognizing November 2023 as Adoption Awareness Month in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the proclamation is hereby incorporated as part of the minutes and contained in Exhibit Book XLIX, Page 21.3. PUBLIC HEARING AND APPROVAL OF THE MASON INLET SPECIAL ASSESSMENT Chair Rivenbark opened the public hearing to receive comments on the Mason Inlet Special Assessment. The Board of Commissioners adopted a resolution on October 16, 2023 for the Mason Inlet Relocation Project that determined $4,069,039.00 needs to be assessed for operational and maintenance costs for the project from August 1, 2018 to August 31, 2023. The Board directed County staff to prepare a preliminary assessment roll and a project map, mail to each owner a notice of hearing, and schedule a public hearing to consider the preliminary assessment roll. North Carolina General Statute (NCGS) 153A-195 requires that the Board conduct a public hearing to hear all interested persons with respect to the preliminary assessment roll. Chair Rivenbark stated that no one signed up to speak in favor or in opposition to the matter and asked Chief Financial Officer Credle to present the following information:  October 16, 2023 Resolution provided for the following:  Set the Determination of Costs at $4,069,039 (covers August 1, 2018 to August 31, 2023)  Directed staff to:  Prepare a preliminary assessment roll and project map (completed on October 18, 2023)  Mail to each owner a Notice of Hearing (completed on October 26-27, 2023)  Prepare and publish all required notices (published in the Wilmington Star News on October 26, 2023)  Set the required public hearing for November 20, 2023 at 9:00 at the historic courthouse  Assessment Basis:  Established at adoption of Board Resolution on July 12, 1999  Figure Eight Island:  Based on $5.50 per net cubic yard of sand placed on beach  Ocean front properties assessed at 52.04% of the sand cost (based on feet of shoreline)  Non-ocean front properties assessed 47.96% of the sand cost (Based on land values without improvements)  Northern Wrightsville Beach:  Assumes all remaining maintenance costs  Based on a formula that considers the two factors of distance (number of feet from the inlet) and property (land value per County Tax Department)  Map of benefitted properties:  Determination of 2023 assessment costs:  All costs from August 1, 2018 to August 31, 2023:  Figure Eight Island cost $ 2,281,521  North Wrightsville Beach cost $ 1,787,518  Total assessment cost $ 4,069,039  Figure Eight Island statistics:  561 property owners assessed:  194 with ocean frontage ($1.2 million) with average assessment of $6,120 (max = $15,714)  367 non-ocean frontage ($1.1 million) with average assessment of $2,982 (max = $8,207)  North Wrightsville Beach:  Non-condominiums:  45 property owners ($268,000) with average assessment = $5,953 (max = $42,317 \[WB\], $30,495 \[Private Owner\])  Condominiums ($1.5 million):  Shell Island – HOA = $220,537, Each Condo (169) = $7,581  Wrightsville Dunes (103) = Average of $166 per condominium  Duneridge (109) = $5 for each condominium  Cordgrass Bay (61) = $1 for each condominium  Public Hearing pursuant to NCGS 153A-195:  Hear all interested parties, determine any adjustments that should be made, and confirm assessment roll  Payment terms: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 52  Bills will be mailed December 11, 2023  May be paid interest free until May 31, 2024  Offer payment terms consistent with previously adopted resolutions with five (5) annual payments and an interest rate of seven percent (7%) Mr. Credle responded to questions confirming that the project is paid for by the property owners. Vice- Chair Pierce commented that although paid for by the property owners, Mason Inlet is open for all the public to use. Hearing no further discussion, Chair Rivenbark closed the public hearing and asked for Board direction. Motion: Commissioner Zapple MOVED, SECONDED by Vice-Chair Pierce, to approve the Mason Inlet Special Assessments as presented and direct staff to publish a Notice of Confirmation. Upon vote, the MOTION CARRIED UNANIMOUSLY. PRESENTATION OF NEW HANOVER COUNTY WATER QUALITY MONITORING PROGRAM, 2022 - 2023 FINAL REPORT Brad Rosov, M.Sc. Senior Marine Biologist/Project Manager with Coastal Protection Engineering of North Carolina, stated that the monthly monitoring of seven tidal creeks within the County has been done since November 2007. The creeks included in this study are Pages, Futch, Lords, Mott, Barnards, Smith, and Prince George. Beginning last program year, the mainly undeveloped watershed of Island Creek in northern New Hanover County was added to gain a baseline assessment of the watershed prior to future development. Also, three sampling sites are monitored from within the freshwater pond at Airlie Gardens. He then presented the 2022-2023 Water Quality Monitoring Program Final Report highlighting the results of the water quality samples collected and analyzed for biological, chemical, and physical parameters from the following monitoring stations:  New Hanover County Water Quality Monitoring Program:  Methods: monthly sampling from July 2022 – June 2023  Physical, biological, and chemical (Airlie Gardens only) parameters are utilized  Results:  2022-2023 summary results:  Long-Term Enterococci 2008-2023 results:  Airlie Gardens Lake monthly monitoring:  AG-IN (northern part of lake), AG-Floating Dock (FD), AG-Outfall (OUT)  Physical Parameters, Chlorophyll-a, Orthophosphate, Nitrate/Nitrite  Airlie Gardens Lake water quality results:  There has been a trend of increasing levels of both nutrients within the lake over time.  Chlorophyll-a levels at AG-FD and AG-OUT have been considerably higher than the levels observed at AG-IN  Constructed wetlands and dredging events designed to improve water quality have yet to demonstrate success  Overall conclusions:  Turbidity and Chlorophyll-a levels continue to be deemed to be “good” in all creeks  Dissolved oxygen levels fluctuate with water temperature  Overall, Enterococci bacteria have improved over the long-term study period  Enterococci bacteria remain elevated at Pages Creek, particularly within the Bayshore community  Water quality within Airlie Gardens appears to be driven in part by nutrient-laden stormwater runoff which may spur algal blooms and reduce dissolved oxygen NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 53  Source Tracking via Thermal Imaging at Pages Creek:  Deployment of a UAV (drone) in partnership with UNCW’s Socio-Environmental analysis lab  Temperature differentials detected (residential properties and areas adjacent to sewer infrastructure)  Sites ruled out; some remain  Broad-scale source tracking efforts at Pages Creek:  20 samples:  Dry event (April): five sites contained the human marker  Wet event (July): three sites contained the human marker  Follow-up and next steps:  Continue coordination with CFPUA re: Bayshore Drive water quality  Continuation of monthly monitoring efforts within tidal creeks and the lake at Airlie Gardens Mr. Rosov responded to questions that the Pages Creek watershed is served by centralized sewer service and the septic tanks were abandoned around the mid-1990s. He further explained that creeks are classified for either shell fishing or recreation, the sampling methodology, and what is considered an acceptable level of bacteria. Pages Creek should not be used for fishing and recreation. There is signage posted at the private boat ramp warning visitors of the issue. A brief discussion ensued about the importance of continuing to perform the monitoring program. While there are outstanding concerns, progress has been made over the years and the monitoring program will help to ensure that water quality not only improves but can be at the highest level possible. Hearing no further discussion, Chair Rivenbark thanked Mr. Rosov for the presentation. PRESENTATION AND ACCEPTANCE OF THE NEW HANOVER COUNTY RESILIENCY STUDY FINDINGS AND RECOMMENDATIONS Planning and Land Use Director Rebekah Roth presented the following information on the New Hanover County Resiliency Study findings and key recommendations:  Background:  May 2022: POLITICO study finding systemic inequities in FEMA flood grant program administration  Summer 2022: Staff analysis of equity considerations in recovery efforts identified gaps and need for greater coordination among departments  September 2022: Staff presentation to ELT led to initiation of cross-department resiliency study  Purpose and intent:  More equitable outcomes for vulnerable populations  Coordination of existing activities across departments  Prioritization of existing plan recommendations to align organizational activities and identify funding opportunities  Identification of additional organizational and activity needs  Focus – Place-based resiliency: Natural systems, built environment, and infrastructure  Contributors: Planning and Land Use, Emergency Management, Engineering, Strategy, Diversity and Equity, Finance, and Soil and Water  Framework:  Resiliency: Recovery – Activities, Challenges, and Gaps:  Recovery takeaways:  Future activities:  Expand/update the special needs registry and additional communications registry  Develop post disaster outreach and assistance efforts to specifically target vulnerable populations  Emergency Operations Center (EOC) Planning Section develops a recovery strategy based on specific events  Mitigation – Activities, Challenges, and Gaps: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 54  Mitigation takeaways:  Components of study:  An internal vulnerability analysis has been conducted  Regular mitigation coordination framework for budget and Community Rating System (CRS) purposes  A framework for assessing risk has been developed  Future activities:  Update action items during 2026 Hazard Mitigation Plan update  Use risk tolerance framework to analyze specific projects for prioritization  Develop funding action plan once projects are prioritized  Coordinate with City staff to expand CRS notifications  Expand flood risk communications  Identify programs for housing mitigation funding, and pursue as directed  Adaptation – Activities, Challenges, and Gaps:  Adaptation takeaways:  Components of study:  Regular Comprehensive Plan update process outlined  A framework for assessing risk has been developed  Future Activities:  Risk tolerance framework can be used in analyzing land use policy recommendations  Review and update conservation resource standards as necessary  Local studies identified to assist in monitoring conditions  Develop incentives for adaptability features  Additional study components:  Internal Vulnerability Analysis  Comprehensive Plan Update Framework  Risk Tolerance Framework  Comprehensive Plan regular update process: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 55  Next steps:  Regular Coordination Meetings  Incorporate resiliency priorities in FY25 budget requests  Comprehensive Plan update  Incorporate risk tolerance framework in update conversations  Expand CRS communications  Identify potential housing mitigation programs Ms. Roth responded to questions stating she would report back to the Board whether the County is a member of the American Flood Coalition. The CRS program is designed to provide benefits through the types of activities that members must perform, including the implementation of development standards and regular communications with residents. Essentially, there is a list of specific tasks that one can undertake to meet the program's standards. The direct benefit for residents is a reduction in their flood insurance rates if they live in a more flood-prone area. This reduction is determined by the participation of their local jurisdiction and the number of points the local jurisdiction can earn based on its annual extra activities. A brief discussion ensued about the recommendations. Ms. Roth explained that the recommendations are intended primarily to be a way to better coordinate. As part of the County’s continuous improvement efforts, staff always review and debrief after an event to determine whether what is in place worked as intended. There will be multiple opportunities beyond even a particular disaster to determine whether there needs to be a shift in what is done to ensure that the County is really moving forward as desired. The staff is identifying the cost of water/flood gauges, and there will be a presentation to the Board on the project(s) during the budgetary process. County Engineer Tim Lowe added that his department, through the Stormwater Services Program, is investigating with a vendor the cost of the gauges and working with the Information Technology (IT) department as the gauges will provide live streams of real data from various locations. The enhancement request will be seen in the Stormwater Services Program budget for next year. If funding can be identified in the current fiscal year, staff will be able to move faster. Hearing no further discussion, Chairman Rivenbark asked for the Board’s direction on the request. Motion: Commissioner Barfield MOVED, SECONDED by Chair Rivenbark, to accept the recommendations of the New Hanover County Resiliency Study as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. FINANCIAL UPDATE OF UNAUDITED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023, AND FOR THE FIRST QUARTER OF FISCAL YEAR 2024 Eric Credle, Chief Financial Officer, presented the following information on the unaudited general fund financial results for June 30, 2023 and Fiscal Year (FY) 2023-2024 first quarter financial results as follows:  Finance Report for June 30, 2023 and September 30, 2023:  Review of financial results for Fiscal Year End – June 30, 2023:  Amounts are derived from unaudited financial statements (audit is nearly complete and amounts are not expected to change)  Investment portfolio  Debt outstanding  First Quarter of Fiscal Year 2024 – September 30, 2024  Overview of 2023 Fiscal Year:  Overall, the County’s financial position is sound:  General Fund unassigned balance is at the maximum of the targeted range  Results of all other funds are in line with expectations  Good debt capacity  AAA Bond Rating from Standard & Poor’s & Moody’s affirmed twice in 2023  Total General Fund revenue exceeded budgeted amount  General Fund expenditures were less than budgeted amounts:  Timing of payments  Operating expenses below budget  General Fund – Revenue (excluding unrealized investment losses) vs. Expenditures/Net Transfers Out  FY23 Revenue variances – Actual vs. Budget:  Property taxes: +$3 million  Sales taxes: +$5 million NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 56  Investment earnings: +$8 million  Intergovernmental: -$4 million  General Fund balance sheet as of June 30, 2023:  Assets totaled $505.9 million - 92% liquid assets (up 0.3%)  Liabilities of $25.9 million (up 10.2%)  Fund Balance = $480.0 million (down 0.2%)  Unassigned Fund Balance:  2023 Unrestricted Fund Balance – Total = $101.7 million:  Unassigned Fund Balance $79.6 million (21% of Expenditures)  >21% Capital Improvement Plan = $22.1 million  Investments:  County has $467 million invested in government securities:  Concentrated in the two hospital sale escrow funds:  $291 million Revenue Stabilization (+$13.1 million in cash)  $49 million in Mental and Behavioral Health (+3.4 million in cash)  $127 million in General Fund - Operating  Escrow Funds invested during 2021 in 10 year laddering maturity strategy:  $30 million maturing annually in Revenue Stabilization  $5 million maturing annually in Mental and Behavioral Health Fund  Rising interest rates = unrealized losses:  $35.3 million at 6/30/23  $9.2 million increase from prior year end:  Credit risk remains sound – entirely government securities with no permanent losses expected and full par value realized at maturity  General Fund Operating unrealized losses = $1.7 million: only impact on Unrestricted General Fund balance  Investment income budget for FY 2024 = $12.1 million:  Increase of nearly $2 million from FY 2023  Investment Income in FY 2022 = $3.0 million  Debt overview:  Debt outstanding at 6/30/23 = $384.5 million:  $44 million in principal repayments  One issuance during FY 2023 for $22 million  Net decrease of $22 million  Debt capacity:  Three policy maximums:  Lowest current policy maximum is $2,200 per citizen = Approximately $524 million  Project Grace debt of $53.5 million issued in October 2023  Available debt capacity pro forma = $86 million  Expected for FY 2024:  $44 million in repayments  Approximately $40 million debt issuance:  Two fire stations = $18 million  North Chase Library = $10 million  Parks and trails = $10 million NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 57  Expected for FY 2025:  $46 million in repayments  $10 - $20 million debt issuance  First Quarter financial summary – FY 2024:  2024 Budgeted Revenue Sources – General Fund:  First Quarter of FY 2024:  Property tax rate per $100 of assessed value:  FY 2022 = 47.5 cents  FY 2023 = 45.5 cents  FY 2024 = 45.0 cents  Property tax bills mailed in late July:  Payable by citizens without interest until January 5, 2024  Tax receipt peak period is December - January  Third Quarter of FY 2023:  Sales taxes:  Received in the third month following the sale:  July/August 2023 sales taxes were received in October/November  Sales Taxes – Total for July and August 2023:  General Fund revenues and expenditures:  General Fund revenues:  General Fund expenditures: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 58  Debt Service Fund revenues and expenditures:  Environmental Management:  Fire Services:  Stormwater Services: Discussion ensued about a potential school bond being brought forward in 2024. County Manager Coudriet reported on discussions staff has had with New Hanover County Schools (NHCS) Superintendent Foust and his staff. Dr. Foust indicated that it is likely the NHCS Board of Education (BOE) may bring forward a bond request for 2024, and it is understood a primary ballot question is not attainable, but the general election might be. Dr. Foust did not indicate the dollar amount of the request. County Manager Coudriet learned and previously shared with the Board that the NHCS priorities are still the same with a teardown and rebuild of Pine Valley Elementary and Mary C. Williams Elementary schools. A new elementary school in the Riverlights community will bring new capacity, which has been a stated priority for several years. Other priorities include renovations of New Hanover High School, not necessarily to build more capacity but doing what is largely been deferred maintenance on the school and converting Trask Middle School into a ninth grade center and building a replacement for same where Southeast Area Technical (SEA-Tech) High School currently operates. Dr. Foust agreed with County staff that a joint meeting of the Board and the BOE is needed early in the first quarter of 2024 so the Board can hear directly from the BOE what its priorities would be and discuss the debt capacity of the County. He does not know the dollar amount of a possible school bond. County Manager Coudriet confirmed in response to questions that the last school bond was for $160 million, and Mr. Credle reported that the County’s debt capacity is currently $86 million. He reiterated that the staff level discussion was only on general priorities, not dollar amount. He is also not aware of significant requests forthcoming from the community college. In further discussion on debt capacity, County Manager Coudriet confirmed debt issuances for water and sewer expansion in the northern portion of the County have been factored into the debt capacity, and due to state appropriations for the expansion, some debt capacity has been gained but is limited. The new fire station has also been considered in the debt capacity projections. Staff feels debt capacity is not reserved exclusively for the k-12 system and there will be projects the Board will want and need to do from a statutory perspective. He confirmed that no commitments were made during the conversation with Dr. Foust. The Board endorsed a state grant application which was not awarded to the school system. As to long term student trajectory data, he acknowledged that the current data assessments are correct and the school system’s population for the current year is significantly lower than budget estimates. Future projections indicate a contraction in future enrollment for elementary, middle, and high schools. Although there are some tensions and pressure points within the school system, overall, school populations are either flattening or decreasing, with many schools operating under capacity. How the school board chooses to utilize existing facilities must be part of the discussion on what to do, especially regarding new constructions. The state's guidelines for elementary school sizes have increased, and he thinks the idea for Pine NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 59 Valley and Mary C. Wiliams is to capture new capacity in the existing facilities. For instance, a school currently accommodating 500 students might be rebuilt for 600, with provisions for future expansion. The state’s philosophy on facility utilization is different, but there is no doubt the County’s student population is not growing significantly and, in some cases, is expected to decline. He outlined the bond calendar timeline and process for a potential bond referendum and confirmed it would necessitate approval from the Local Government Commission (LGC). He also explained how the oversight of the funds is managed by both the County and the school system. Discussion ensued about school capacity. County Manager Coudriet responded to questions confirming that the debt issuance would be on the County’s balance sheet with the asset being on the school system’s balance sheet and is separated and not related to the County supplemental funding. As to the need for efficient utilization of existing school capacities, he would never want to suggest there are no tensions and pressure points in some of the schools, but not all the schools are at capacity, and some are well below capacity. The schools should be used effectively, well, and efficiently before there is a campaign to build new school capacity that is not necessarily needed as there are fewer projected students going forward as opposed to where we are today. Commissioner Barfield addressed the difficulties and pressures associated with decisions on changing school capacities, especially regarding redistricting students to other schools. He pointed out that relocating students from their neighborhood schools often triggers strong parental objections. He stressed the need for proactive planning considering the upcoming budget challenges, particularly with the northern expansion plans in the County. He also noted the necessity to have sufficient revenue to support growth, drawing parallels to Brunswick and Pender Counties where poor planning resulted in substantial tax increases and developmental issues. He also commented on the County’s initiatives in infrastructure and business attraction, leading to increased residential demand, and noted that project costs are consistently surpassing initial estimates. Commissioner Zapple remarked that it is a realistic expectation that a school bond request to be $180 million-plus and that there will be difficult conversations moving forward. Commissioner Scalise commented that costs have increased dramatically over the last few years, and he wants to ensure that discussions are very deliberate and careful as they unfold. Hearing no further discussion, Chair Rivenbark thanked Mr. Credle for the presentation. COMMITTEE APPOINTMENTS Appointments to the New Hanover County Board of Adjustment Chair Rivenbark reported that three vacancies exist on the New Hanover County Board of Adjustment, with two vacancies in the Regular category and one vacancy in the Alternate category, with six applications available for consideration. Vice-Chair Pierce nominated Will Daube and Greg Uhl for reappointment in the Regular category and Jonathan Bridges for appointment in the Alternate category. Commissioner Scalise seconded the nomination. Hearing no further nominations, Chair Rivenbark asked for a vote on the nominations on the floor. Vote Results: The Board voted UNANIMOUSLY to reappoint Will Daube and Greg Uhl in the Regular category and to appoint Jonathan Bridges in the Alternate category to the New Hanover County Board of Adjustment to serve three- year terms with the terms to expire December 1, 2026. Appointments to the New Hanover County Cooperative Extension Advisory Council Chair Rivenbark reported that five vacancies exist on the New Hanover County Cooperative Extension Advisory Council with two applications available for consideration. Commissioner Zapple nominated Dietrich Blum and Dave Spencer for reappointment. Commissioner Scalise seconded the nomination. Hearing no further nominations, Chair Rivenbark asked for a vote on the nominations on the floor. Vote Results: The Board voted UNANIMOUSLY to reappoint Dietrich Blum and Dave Spencer to the New Hanover County Cooperative Extension Advisory Council to serve three-year terms, with the terms to expire December 1, 2026. Appointment to the New Hanover County Juvenile Crime Prevention Council Chair Rivenbark reported that four vacancies exist on the New Hanover County Juvenile Crime Prevention Council with one application eligible for appointment in the Business category. Commissioner Zapple nominated Kelsey Fadden for appointment in the Business category. Vice-Chair Pierce seconded the nomination. Hearing no further nominations, Chair Rivenbark asked for a vote on the nomination on the floor. Vote Results: The Board voted UNANIMOUSLY to appoint Kelsey Fadden in the Business category to the New Hanover County Juvenile Crime Prevention Council to fill an unexpired term, with term to expire September 30, 2025. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 20, 2023 REGULAR MEETING PAGE 60 Appointment to the New Hanover County Library Advisory Board Chair Rivenbark reported that one vacancy exists on the New Hanover County Library Advisory Board with seven applications available for consideration. Commissioner Zapple nominated Emily Colin for appointment. Commissioner Scalise seconded the nominations. Hearing no further nominations, Chair Rivenbark asked for a vote on the nomination on the floor. Vote Results: Upon vote, the Board voted UNANIMOUSLY to appoint Emily Colin to the New Hanover County Library Advisory Board to fill an unexpired term, with term to expire August 31, 2026. Appointment to the New Hanover County Plumbing Board of Examiners Chair Rivenbark reported that one vacancy exists on the New Hanover County Plumbing Board of Examiners in the Master Plumber category with one application available for consideration. Commissioner Scalise nominated David Woodbury for appointment. Vice-Chair Pierce seconded the nominations. Hearing no further nominations, Chair Rivenbark asked for a vote on the nomination on the floor. Vote Results: Upon vote, the Board voted UNANIMOUSLY to reappoint David Woodbury to the New Hanover County Plumbing Board of Examiners for a two-year term, with term to expire December 1, 2025. Appointment to the Wilmington Regional Film Commission Chair Rivenbark reported that a vacancy exists on the Wilmington Regional Film Commission with one application available for consideration. Commissioner Scalise nominated Hank Miller for appointment. Commissioner Zapple seconded the nomination. Hearing no further nominations, Chair Rivenbark asked for a vote on the nomination on the floor. Vote Results: Upon vote, the Board voted UNANIMOUSLY to appoint Hank Miller to the Wilmington Regional Film Commission to fill an unexpired term, with term to expire January 31, 2024. PUBLIC COMMENTS ON NON-AGENDA ITEMS Chair Rivenbark stated that no one signed up to speak under public comment. ADDITIONAL AGENDA ITEMS OF BUSINESS th Commissioner Zapple reported on the 29 annual Cucalorus Film Festival and how it continues to attract global recognition. He congratulated Dan Brawley and his team on a successful festival. Commissioner Scalise wished everyone a happy Thanksgiving. He also expressed appreciation to County staff for the opportunity to work with them over the past several months and that he is grateful for their work on behalf of the citizens. ADJOURNMENT There being no further business, Chair Rivenbark adjourned the meeting at 11:10 a.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.