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HomeMy WebLinkAbout2025-11-17 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 710 ASSEMBLY The New Hanover County Board of Commissioners met on November 17, 2025, 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 Dane Scalise;Commissioner Stephanie A.C.Walker;and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; Clerk to the Board Kymberleigh G. Crowell; and County Attorney K.Jordan Smith. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Katie Harrington, St. Andrews Covenant Presbyterian Church, 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 to pull Consent Agenda Item#5: Resolution to Dispose of Surplus Property in accordance with North Carolina General Statute 160A-Article 12 — Facilities Management, for additional discussion. Hearing no further discussion,Chair Rivenbark asked for Board direction. MOTION: Commissioner Zapple MOVED, SECONDED by Commissioner Walker to approve the remaining items on the Consent Agenda as presented. Upon vote,the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes-Governing Body The Board approved the minutes of the Closed Session and Agenda Review held on October 30, 2025 and the Regular Meeting held on November 3, 2025. Approval of New Hanover County Fire Rescue Relief Fund Trustee Appointment-Fire Rescue The Board approved the appointment of Senior Human Resources Analyst Tracy Dawson to the New Hanover County Fire Rescue Relief Fund Board of Trustees to replace Chief Human Resources Officer Mark Francolini as one of the County's two appointees. Adoption of Budget Amendment—Budget The Board adopted budget amendment 26-016 for the Sheriff's Office, amending the annual budget ordinance for the fiscal year ending June 30, 2026. The budget amendment is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.1. Adoption of State Road Resolution—Planning The Board adopted the SR-2 State Road Resolution in support of adding Metro Circle in the Roymac Business Park to the state system. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.2. Discussion and Adoption of a Resolution to Dispose of Surplus Property According to Procedures Outlined in North Carolina General Statute Chapter 160A-Article 12—Facilities Management Commissioner Zapple stated that nonprofit organizations in the community will have the first opportunity to inspect and purchase the surplus property prior to the items being taken to auction. He encouraged nonprofit organizations to take advantage of the opportunity. Hearing no further discussion,Chair Rivenbark asked for Board direction on Consent Item#5. MOTION: Commissioner Zapple MOVED, SECONDED by Vice Chair Pierce to approve Consent Agenda Item #5: Adoption of a Resolution to Dispose of Surplus Property According to Procedures Outlined in North Carolina General Statute Chapter 160A-Article 12 as presented. Upon vote,the MOTION CARRIED UNANIMOUSLY. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.3. REGULAR AGENDA ITEMS OF BUSINESS CONSIDERATION AND ADOPTION OF A RESOLUTION OPPOSING THE EXPANSION OF THE CHEMOURS FAYETTEVILLE WORKS FACILITY NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 711 Commissioner Zapple read the resolution into the record, which opposes the proposed expansion of the Chemours Fayetteville Works Facility due to ongoing PFAS contamination of the Cape Fear River,outlines associated public health and financial impacts on local utilities, and calls on federal and state regulators to deny the expansion permit absent remediation, compliance,verified emissions data,and compensation to affected communities. Hearing no further discussion,Chair Rivenbark asked for Board direction. MOTION:Commissioner Zapple MOVED,SECONDED by Commissioner Walker to adopt the resolution as presented. Upon vote,the MOTION CARRIED UNANIMOUSLY. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.4. CONSIDERATION AND ADOPTION OF A RESOLUTION OPPOSING THE FUQUAY-VARINA INTERBASIN TRANSFER AND REQUEST FOR ADDITIONAL COMMENT Commissioner Zapple read the resolution into the record, which opposes the Town of Fuquay-Varina's interbasin transfer request, cites potential adverse impacts to the Cape Fear River Basin and limited opportunities for public review, and requests an extended comment period and an additional local hearing. Hearing no further discussion,Chair Rivenbark asked for Board direction. MOTION:Commissioner Zapple MOVED,SECONDED by Vice Chair Pierce to adopt the resolution as presented.Upon vote,the MOTION CARRIED UNANIMOUSLY. Commissioner Walker briefly stated concerns about the interbasin transfer, noting that it would remove 6 million gallons per day from the river without return flow, could worsen drought impacts, and may further concentrate PFAS in the waterway.She stated that the resolution's detail was necessary to outline these issues and thanked Commissioner Zapple for bringing it forward. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.5. PRESENTATION OF SERVICE AWARDS AND INTRODUCTION OF NEW EMPLOYEES County Manager Coudriet recognized the following employees receiving service awards: Five Years: Crystal Edwards, Health and Human Services (HHS)—Social Services Ashlee Huckins, HHS—Social Services Ten Years: Daniel Willis, HHS—Social Services Fifteen Years: Krista Dean, Library Keith Harabin, Finance Scott Hayes, Library Leslie Houston, HHS—Public Health Nick Leary, Facilities Management Thirty Years: Katrina Morris, Finance The Board presented each employee with a service award, thanked them personally, and expressed appreciation for their years of dedicated service. County Manager Coudriet introduced new employee Shaquia Williams, and the Board welcomed her back to the organization. CONSIDERATION AND ADOPTION OF A RESOLUTION RECOGNIZING THE GENERAL FEDERATION OF WOMENNIs CLUBS(GFWC)-NORTH CAROLINA SOROSIS FOR 130 YEARS OF SERVICE TO NEW HANOVER COUNTY Commissioner Scalise read the resolution into the record recognizing the General Federation of Women's Clubs (GFWC)- North Carolina Sorosis for 130 years of service to New Hanover County. Sharon Smith, President of GFWC North Carolina, thanked the Board for its support and for considering recognition of the organization's 130 years of service.She noted the group was founded in Wilmington in 1895, now has more than 90 members,and remains committed to community partnership and service. Hearing no further discussion,Chair Rivenbark asked for Board direction. MOTION: Commissioner Scalise MOVED, SECONDED by Commissioner Zapple to adopt the resolution recognizing the General Federation of Women's Clubs (GFWC)- North Carolina Sorosis for 130 years of service to New Hanover County. Upon vote,the MOTION CARRIED UNANIMOUSLY. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.6. CONSIDERATION AND ADOPTION OF THE ADOPTION AWARENESS MONTH PROCLAMATION Commissioner Walker read the proclamation into the record recognizing November 2025 as Adoption Awareness Month. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 712 Social Work Supervisor Tiffany Bickel stated that she, along with Social Services Assistant Director Holly Royals,thanked the Board for considering the proclamation. Hearing no further discussion,Chair Rivenbark asked for Board direction. MOTION: Commissioner Walker MOVED, SECONDED by Vice Chair Pierce to adopt the proclamation recognizing November 2025 as Adoption Awareness Month. Upon vote,the MOTION CARRIED UNANIMOUSLY. The resolution is hereby incorporated as part of the minutes and contained in Exhibit Book XLVI, Page 21.7. PRESENTATION OF NEW HANOVER COUNTY 2025 SUSTAINABILITY ASSESSMENT Sustainability Manager Madelyn Wampler presented the New Hanover County Sustainability Assessment as follows: • Purpose of Sustainability Assessment: • Recognize past and current efforts • Identify shared priorities • Recommend practical steps • Sustainability Assessment at a Glance: • 65+hours of listening and conversations • 15 external stakeholder meetings • 35 internal department meetings • 120 focused days of engagement • 150+active and prior sustainability initiatives identified • Structure of Assessment: • Part 1: Comparative Landscape - How peer counties are integrating sustainability into core operations: • How New Hanover County(NHC)compares to peers: ormal sus:ainabil,ty policies,clear goals Ann :argets,and advisory boards Peer Counties SSON New Hanover Strong rovndation,6nique Coastal leadership, and engaged staff,fewer`ormal policies, County targets-and tracking than peers w Adopt best practices from peers that makeO •i i sense for our coastal context(e.g.,define a Sustainability identity,Communicate our '.York,align'A'ith State goals) • Part 2: Focus area findings and opportunities: • Focus area findings: pv OperationsLand Use& Community Health& Governance& Environmental Well-Being Coordination Facilities Stewardship Strong local Integrared wellness, 501fidpolicy Puipose-built Preparedness through Ir and collaborathe nature-based learning department and innoveri ve waste andnature-based • Immediate next steps and looking ahead: • Advancing our sustainability efforts: Foundation Example Priority Recommendations wf. -Define sustainability for the County } -Strengthen su sta inability com m u nicabons -Advance Western Bank conservation •»=-w -Cl anfy Tree Fund access O w -%laintainrejionalenvironmentalpartnerships --ack sustainabilicy implementation_ _a-r}•S u sta inabil ity Working Group o`- - .. -Update conservation mapping&prioritization tools --K _ -Establish tree canopy&greenspace goals W -- .�.,........ -Update Utility and Sustainability policy •plot Capital project sustainability thetkkst -Strengthen waste dwrsion and capacity planning J Ms. Wampler concluded the presentation by stating that she looks forward to coordinating these efforts across departments and leading with solutions grounded in local needs. The Board thanked Ms. Wampler for her presentation, noting that the report outlines both strengths and areas for improvement, and emphasized the importance of clearly defining sustainability, remaining committed to it,and preparing for long-term environmental conditions.The Board also acknowledged Ms.Wampler's outreach to fishermen and waterway stakeholders and recognized that the sustainability manager position reflects the County's commitment and her practical approach to strengthening existing initiatives. Hearing no further discussion,Chair Rivenbark thanked Ms.Wampler for the presentation. PRESENTATION OF YEAR END FISCAL YEAR(FY)2025 AND FIRST QUARTER FY 2026 RESULTS Chief Financial Officer Eric Credle provided an overview of financial results for the FY ended June 30, 2025 and for the first quarter of FY 2026: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 713 • Review of Financial Results: • Fiscal Year End—June 30, 2025 (draft-audit in process) review of results • Review of hospital sale escrows • First Quarter of Fiscal Year 2026—September 30, 2025 • Overview of 2025 Fiscal Year: • Overall,the county's financial position is sound: • General Fund unassigned balance is within the targeted range—18.3% • Results of all other funds are in line with expectations • AAA Bond Rating from Standard & Poor's& Moody's—affirmed in June 2025 • Total General Fund revenue in line with expectations—slightly above budget • General Fund expenditures were less than budgeted amounts but higher than revenues due to capital expenditures • General Fund—Revenue*vs. Expenditures/Net Transfers Out: FY25 Revenue Variances Actual vs.Budges >ae: ---- ---` $432 Property Taxes;+S2.4M sacra Sales Taxes:+$713K >35 c Intergovemmental.31.7M ssaa szs0 S200 $'_50 s100 FY 2023 FY 2024 FY 2025 -Revenue Budget - Expenditures+Net Transfers Out • General Fund—Fund Balance review—June 30, 2025: • General Fund for reporting purposes includes Revenue Stabilization Fund and the Mental Health and Substance Use Disorder(MHSUD) Fund • Expenditures greater than revenue by$37 million: • Impacted by the following totaling$28 million: • Project Grace direct costs (everything inside the buildings) • Flossie Bryan property acquisition • New Hanover High School repairs • MHSUD Fund expenses>revenue • Of the $28 million, over $25 million was funded from sources other than Unassigned Fund Balance: • Instead paid from: >21% Fund Balance, Revenue Stabilization Fund, OPEB Trust, MHSUD Fund • Unassigned Fund Balance is the balance used to calculate Fund Balance%: sic, S5C Sac s7C Up$5.7 million,or 7.7%,in FY25 SEA. S5C. W $30 $20 $10 so Unassigned Fund Balance In Millions x 6/30/2024 ■6/30/2025 • Unassigned Fund Balance percentage—increased by 0.1%in FY 2025: z5=: 1 6.7%-21%=T■»g*t 15^. 8%Minimum-NHCILCG 16/30/25 r' Unassignr-c!Fury!Bal,3nc€-as of Fxpr-nditurps • Fund Balance%= Unassigned Fund Balance/Expenditures • Impacted by the $28 million in capital expenditures and FY 2026 appropriated funds balance • Unassigned and CIP as%of Total Expenditures/Transfers out: Target -- 16.7%-21% Col icy Minmum 8% 2020 2021 2022 2023 2024 2025 ■Unassigned Capital Improvement Plan • Hospital Sale Escrows: • Revenue Stabilization Fund: $300 million—Asset purchase agreement stated that initiatives may include: • Retirement of debt; 0 Capital assets and projects; NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 714 • Reserve for unexpected emergency spending needs (e.g., natural disasters and pandemics); • Reserve funds to address budget shortfalls during economic downturns; and • Minimization of tax and fee increases in future years • MHSUD Fund: $50 million—initiatives may include: • Capital funding for long-term, residential substance abuse treatment programs; • Sustained grant funding commitments to support evidence-based programs(e.g.,Tides, Inc.); and • Expanding access to mental health services independent of state assistance • Revenue Stabilization Fund: • Started at$300 million and is currently at$293.8 million: • Flossie Bryan property acquisition of $3.9 million in FY 2025 (being paid back by the General Fund over a five year period at 4.08%) • As of June 30, 2025: • $19.7 million in interest-bearing cash earning approximately 4.20% • $274.1 million in government-backed bonds with a weighted average yield of 2.28% • Hospital sale proceeds received and fully invested during the Covid era when interest rates were at very low levels • Wide range of yields—0.68%to 4.82% • Examples: • August 16, 2021: $3 million bond with a five-year term purchased at a yield of 0.75% • April 10, 2025:$3 million bond with an eight-year term purchased at a yield of 4.27% • Current treasury yields are 3.70%for five years and 4.10%for 10 years • Investment income from hospital sale escrows: S8,000,000 2.33i6 S7,D00,000 - 6,941,DD0 E,132.2 $6,000,OD0 $S,D00,Cgd 4,874,000 s4,000,000 0.73% $3,DOD,00D 2,202,000 $2,000,000 $1,00%DD 812,. 1,073,DDD 1,233,000 367,000 so 2.1 77 13.000 FY21 FY22 FY23 FY24 FY25 ■`AHSUD ■RSF • MHSUD Fund: • Started at$50 million and is currently at$44.4 million: • FY 2026 expenditure budget is$9.7 million,and the interest budget is$820,000: • Strategy Mental Health programs $2,295,970 • School Nurses 31700,000 • School Therapists 3,729,534 Total $9,725,504 • Investment portfolio characteristics mirror the Revenue Stabilization Fund • At the current run rate,this fund will be depleted sometime in 2030 • First Quarter financial summary for FY 2026: • 2026 budgeted revenue sources—General Fund: Irate rFovern mental 58%-Property Tax 23%-Sales Tax Property&Sales Taxes=81% T _3 -3. a 4�ven�e .Cmmm far Servrces .Oencr • First Quarter of FY 2026: Overview Property 5 tax r rate per$100 of assessed value FInT 2022=47.5 Cents Tax Rate FN 2023=45.5 Cents BxtNSW1e16 at._D BUNCOMBE 54.66 FN 2024=45.0 cents CUNIUra ANn 49.96 FOkn'rH 53.• FN 2025=45.0 cents CAM ai 59.90 GLTLFORD 73.05- FN 2026=30.6 cents-Revaluation-(51h lowest out of 100 NC counties) JOINSTON ;_.00 NEE CSLENE RG 49.27 O\SLOW 6*".So Property tax bills mailed in late July/early August PENDER 73.75 • Payable by citizens without interest until January 5,2026 WAKE NION 51.71 • Tax receipt pear period is December-January • Financial results dashboard—Q1 FY 2026: General Fund Indicator Comments Property Taxes o Underbudget&Impact of Appeals Sates Taxes 0 Within 1%of Budget with a High Refund Month Other Taxes ! Within$35K of Budget Charges for Services 4%©verbud et OtherFunds Indicator Comments Intergovernmentat Revenue Under Budget Primarily Due to Timing of Payments Debt Service Fund � No Concerns Investment Earnings S Overbudget Environmental Management Fund No Concerns Other Revenues Overbudget F ire Rescue Fund No Concerns $4_9 mittion higher than P/Y/Less Underbudget than Expenditures 0 P1Y i L ed Nature of Cuts!Medical Costs Stormwater Services Fund No Concerns 0 Sales Taxes—total for July—August 2025 (received in October/November): NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 715 $40 $35 $30 $25 Refunds: $21.2 $24 5 $20 9 July-Aug 2025=51.6 million $20 July-Aug 2025=56649 $15 July-Aug 2024=5347K $10 $5 s- FY26 Actual FY26-Budget FY25-Actual 2023-Actual (in millions) • General Fund Revenues and Expenditures: •Revenues of$59.3 million through 9/30125: six •Budget=$59.1 million sy: $9ss s9x.o $69.2 •Prior Year=$58.3 million Sao 559.3 SS9.1 558.3 •Total expenditures of$96.8 million Sso 556.7 through 9/30/25: SW0 •Budget=$98.5 million •Prior year=$92.0 million sP° - •Under budget by$1.7 million vs.$3.6 $0 million in the prior year Total Revenues raml Expmdfn■es ■2026■Budget 2026■2025■2024 (in millsms) • General Fund Revenues: •Property tax revenue a slightly lower $SO than anticipated $ay saa.3 $41.4 539.8 •Actual=$42.9 million S40 •Budget=$44.3 million $3s •Prior Year=$41.4 million S30 52s Property tax bills mailed appx.3 weeks later this year 420 s16.4 s16.s 516.9 S15 Revaluation appeals 510 •Other Revenues impacted by: ss •$1.6 million Non-county Agency funding $o revenue received from the Endowment Prupertyra�s other Rarelnse; •Lower intergovernmental revenue-timing ■2026■Budgee 2026■2025■2024 [in minionsl • General Fund Expenditures: •Total expenditures of 40.0 $96.8 million thru 9/30/25 35-0 5m+ • Budget=$98.5 million 30-0 Slit sx.s 3liv • Prior Year=$92.0 million 25.0 $23FSz" •21.6%of annual budget 20.0 3�5�'S1Q35„ has been expended swestill Sx•s'l.; (21.2%in ply) 1s.o 10.0 • Overbudget in General Govt 50 u s.l S3s 5._ is offset underbudgets in ®� other functions due to 0.0 change in allocations =J-_ Pu41Ksafety Cenera+ _-et H ma Se_e5 oth ■ ■Budget ■2017 ■20?a • Unassigned General Fund- Fund Balance-FY 2026: • Tailwind for FY 2026: • Sale of CFCC Nursing Building to CFCC on October 31, 2025 resulted in $10.375 million deposit to the Unassigned Fund Balance • Headwinds for FY 2026: • Impact of property tax appeals is higher than expected • Position reductions incorporated into FY 2026 Budget did not all occur on July 1, 2025 + one-time payouts at departure • Employee medical expenses have begun the year unfavorable • Environmental Management: • Fund Runs Under Stand-Alone Business Model S6'" • Fees for services comprise substantially all revenue $$° •Tipping Fee was last increased in FY23 54-1 PP•g s4.0 • 104,000 tans in 2026 vs.105.000 in 2025 S3.$ 53.7 53.a • Revenue is same as last year at$3.9 million $3.0 s2.9 • FY25 Budget=S3.5 million • Prior Year=S3.9 million 52.0 • Expenditures year to date of$3.4 million s1.0 • Budget=$3.9 million • Prior Year=S4.1 million 50.0 Waste shredder purchased in 712024=$1.1 Revenue Expena(turcs million ■2026 w 2026 Budget■2025■2024 (in millions) • Fire Services: Property tax revenue is up due to revaluation and unchanged tax rate 510.0 To support new station and pilot staffing sy o $9.13 model sa.0 Revenue thru 9/30/26 is$4.1 million 57.0 57.0 $6.7 56.4 Budget=$4.2 million 56.0 Prior Year=$2.8 million SS-0 S4.1 S4.2 • Impact of revaluation 54-0 53.0 52.8 S2.6 Total expenditures of$6.7 million sa.0 • Budget=$8.8 million s1.o • Prior Year=$6.4 million so.o • FY26 under-budget due to lower 'v�3ue Expei�BKre: expenditures thus far in every major ■2026 ■2025 Budget ■2025 0 2024 category (in millions} • Stormwater Services: Fifth Year of this Fund Running Under Stand- 52.5 Alone Business Model • Fourth year of full fee being charged $2.0 • Fee last increased in FY25 51.s • Fee is included on property tax bill.Revenue $1.5 of$1.0 million $1.1 $1.1 Budget=$1.1 million $1.0 $1.0 $0.9 Prior Year=$1.1 mullion 50-9 50.8 50.8 • Expenditures of$0.8 million year to date 50.5 • Budget=$1.5 million • Prior Year=$0.8 million • Under budget due to projects and capital so.o g P Revei+ue Expendtures expenditures planned in the rest of the year r 2Q26 w 2Q26 Budget■2025■2024 (in miRionsl 0 Debt Service Fund Revenues and Expenditures: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 716 •Total Revenues collected of$2.7 million thru 9/30/25 • Revenues are primarily property tax and sales tax allocations ssz' • Expenditures represent actual debt payments •Transfers from General Fund siov have not yet occurred at this point in the fiscal year 550 $2.7 $2.7 $3.2 53.4 Sao ®u 'Iota 13Revem a Total Expenditures ■2026■Budget■2025 ■2024 lin millions} In response to questions, Mr. Credle explained the major components of the $37 million expenditure gap and noted that the remaining amount reflects normal timing differences. He also stated that revaluation appeals are monitored monthly, but early-year figures are not yet available. The Board thanked Mr. Credle for the thorough presentation, his responsiveness to questions,and his ongoing support. PRESENTATION BY MEP/ENVIREMED ENVIRONMENTAL REGARDING GASIFICATION AND SOLID WASTE PURCHASE Recycling and Solid Waste Director Joe Suleyman reported that the County received an unsolicited proposal from MEP/EnviRemed Environmental to purchase municipal solid waste for use in a gasification facility the company would construct,permit,and operate.He stated that the project could extend the landfill's life with minimal financial risk if it proves successful but noted that staff have not identified comparable facilities currently processing the proposed volume, making the likelihood of success uncertain. He emphasized the need to explore multiple alternatives to preserve landfill capacity rather than focus on a single proposal, and said the presentation is part of staff's ongoing review of waste-diversion options. He then introduced the MEP/EnviRemed Environmental representatives. Stuart Cooke and Neil Williams with MEP/EnviRemed Environmental presented the following information on the possible purchase and utilization of municipal solid waste from the County's Landfill to generate renewable diesel fuel through a gasification facility: • New Hanover Co. 1,111.5 TPD Gasification Diesel Fuel Production Facility project description: • MEP EnviRemedEnv, LLC(MEP ERE) has offered to construct a 1,111.5 Tpd Gasification Diesel Fuel Production Facility in New Hanover County.The offer includes the following: • MEP ERE will provide 100 percent of the $270 million investment required to construct and operate the facility • MEP ERE will take all the municipal solid waste (MSW) processed by New Hanover County (1,111.5 Tpd) and convert the MSW to premium synthetic green renewable diesel fuel and naphtha • MEP ERE will pay a Community Host Fee of$1.00/ton for each ton of waste provided by New Hanover County • Once the Gasification Diesel Fuel Production Facility goes into operation, no organic waste will be placed in the New Hanover County Landfill, and air emissions from the landfill will be decreased by more than 95 percent • MEP ERE is proposing to take all the County waste for the next 30 years with no disruption in existing services • The New Hanover County 1,111.5 Tpd Gasification Diesel Fuel Production Facility will include the following facilities: • Scalehouse with inbound and outbound scales; • Sorting Facility to separate potentially recyclable materials, and unacceptable and non- recyclable inorganic waste from the waste stream; • Green Waste Reception and Processing Pad to reduce the particle size of green waste, including stumps and branches; • Covered Used Tire Reception and Processing Pad to remove steel belts (tire debeading) for recycling; • Concrete,Soil and Rock Cover,Oyster Shell,and Appliance Reception and Processing Pad to recycle materials; • Bale Storage Pad for bales of aluminum, ferrous metals, and stainless steel, and supersacks of glass and E-waste separated in the Sorting Facility; • Gasification Diesel Fuel Production Facility to convert waste to synthesis gas, and synthesis gas to synthetic diesel fuel and naphtha; • Powerhouse with steam turbine and generator to produce all power required by the facility; • Leachate/Water Treatment Facility to treat all leachate and wastewater to Boiler Feedwater Standards for reuse as process and cooling water; • Oxygen Generation Plant to produce the oxygen required for the gasification of waste and conversion to diesel fuel and naphtha; • Diesel Fuel and Naphtha Storage Tank Pad; • Maintenance facility for vehicles and equipment; • Hot Load Pad to safely process loads of MSW that are smoking or on fire; and 0 Office building with an automated control system. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 717 • MEP ERE Team Qualifications and Experience: • The MEP ERE Team consists of Mobile Environmental Power, Inc., EnviRemed Environmental LLC, and Hi Temp Technology, along with strategic partners that provide state-of-the-art industry experience • MEP personnel have designed more than 250 Gasification Facilities,250 Landfills,300 Sorting Facilities (Material Recovery Facilities or MRFs), 100 Transfer Stations, 250 Leachate/Water Treatment Facilities, 100 Landfill Gas to Energy Facilities, and hundreds of supporting solid waste management facilities and projects all over the US and throughout the world • MEP and ERE personnel have designed hundreds of Remedial Facilities around the world to remediate chemical spills, contaminated ground water, landfills,and industrial facilities • MEP ERE is recognized as a world leader in gasification and waste to energy facilities, with specialized expertise in synthesis gas to liquid fuel technologies • Past Projects—Wilmington, NC: River Walk, Water Street Center, River Walk Condominiums, 21 North Front Street, and Wilmington Iron Works redevelopment • What is Gasification: • Gasification is a technology that converts organic waste into synthesis gas • The Gasification process occurs at a temperature of approximately 1,000C,which prevents the formation of tars, and volatile organic compounds, including dioxins,furans, PFAs, and PFOs • The synthesis gas formed by the Gasification Process is then converted to premium,synthetic, green, renewable diesel fuel and naphtha using the Fischer Tropsch Process, which was originally developed in the early 1940s • There are more than 110,000 Fischer Tropsch Synthesis Gas to Liquid Fuel systems in operation around the world • The air emissions from a Gasification Diesel Fuel Production Facility are more than 1,000 times lower than the emissions from the existing landfill,and more than 1,000 times lower than any other waste disposal or treatment system • Greenhouse gas emissions, which are largely responsible for the increased intensity of the hurricanes, droughts, fires, and other climate disasters that are occurring around the world, are reduced by more than 94 percent • Once the New Hanover County Gasification Diesel Fuel Production Facility is online,95 percent of the waste will either be recycled, reused,or converted to fuel. Less than five percent of the waste will need to be placed in the existing landfill, extending the life of the landfill, and providing a solution that is more than 1,000 times more protective of human health and the environment. • Site Development Plan: i • MEP ERE Gasification Diesel Fuel Production Facility flow schematic: 1.Proven Technology.MEP's Gasifier is in use in 36 Facilities in 10 countries. 2.Robust System.The Gasifier is currently operating with feedstock water content of 10 to go percent and ` -• r.cun heating values ranging from 2,000 to 17,000 0TU/Ih. _ 3.Feedstock Flexibility.The Gasifier System has been 773Y ,� r".cnnTavxh designed to accommodate variations in feedstock heating value from 3,000 to 15,000 BTU/lb.--without �w -- .,,�,� •.... M„ reducing energy production. „. t , 4.Diesel Production.The Gasifier System uses the Fisher tea• r•--� ---..—— Tropsch technology to convert the synthesis gas to t• • --T'_ _^• ` Diesel Fuel-Approximately 65 gal/tonne of very high sr ne.w a,y a quality,low sulfur,synthetic diesel fuel are created, r°nfd •-• srnw depending on waste properties- :­_ S.Sorting Facility. The Gasification Facility design includes a Sorting Facility to remove soil,rock, concrete,metals,glass,and special wastes,such as household hazardous waste,batteries,and e,wastes. r t MEP has designed more than 150 Sorting facilities around the world. 6.Power Generation Facilities.Power is generated to G sr•"c.aay},s'srtro provide electricity for facility,plus 6 MW of additional electric power for each 400 Tpd of feedstock. 4.;S20 ilb"Sr32EM" 7.Ate Emissions are more than 100 times lower than regulatory limits,making the system Green for Air �+^+•^ Quality.100 percent of the leachate and wastewater G+3nAM"89 e.rua Is treated and used as process water,making the system green for water.100 percent of the ash is converted to slag and used as sand replacement in Portland Cement Concrete,which make the system ¢reen for solid waste. • Properties of Fischer Tropsch Diesel Fuel Compared to No. 2 Green Diesel: • If a decision is made to produce either premium,synthetic,green, renewable diesel or jet fuel, the MEP ERE Gasification Liquid Fuel Production Facility has the following advantages compared to other gasification systems: • Fischer Tropsch liquid fuels produced by the MEP ERE Gasification Liquid Fuel Production Facility are clear and do not produce black smoke, are composed of liquid waxes which provide a higher Cetane Index for better starting, are self lubricating, have essentially no sulfur, and are ultra clean, which significantly reduces emissions compared to conventional petroleum based liquid fuels: NEW HANOVER COUNTY BOARD OfCOMMISSIONERS BOOK 36 NOVEPN8ER17,2O2S REGULAR MEETING pAGE71g kAv,ppm SASS is X IS 1371 16 2MIM man 976 Al ON 4176 01 is 99 2624 Dliesel Engkie Testing with Premium � MEP ERE Gasification Facilities: • The energy system is highly efficient with a 50-year design life,and up to 99 percent efficiency. These systems have been in continuous use for more than 35 years. • The MEP ERE Gasification Facilities are modular and can be expanded as needed to accommodate any amount offeedstock • The gasification systems offer tremendous flexibility as there are two gasifiers per line, and each gasifier is designed to process the design quantity ofwaste, thus offering the ability to accommodate waste feedstocks with as little as 50 percent of the design heating value per line • The Gasification System can be used to produce either clean,green,renewable electric power, or premium' synthetic,green' renewable diesel fuel or jet fuel and naphtha • The Gasification System has emissions that are more than 1,000 times lower than incineration and plasma systems, recycles lOO percent of the water and |eachatefrom the waste and facilities, and reuses the ash produced by the gasification systems as a sand replacement in Portland Cement Concrete or concrete block • The MEP ERE Gasification Facility will bea beautiful,clean facility,and will bea focal point for the County.Visitors will come from around the world tovisit the facility. � Why Gasification Diesel Fuel production: 0 The primary reasons to convert from |andfiUing to waste to synthesis gas to liquid fuel production are asfollows: • The Gasification Process used by MEP ERE consists of proven technologies that have all been in use for more than 35years; • Gasification does not burn waste but instead converts waste to synthesis gas. The synthesis gas is then converted to premium' synthetic, green' renewable diesel fuel and naphtha; • The premium,synthetic,green,renewable diesel fuel and naphtha are much cleaner than those produced from crude oil; • Air emissions from the Gasification Facility are much lower than from the local Sutton natural gas power plant, and are much more than l'OOO times lower than regulatory requirements/ 0 Leachate, wastewater, and water are treated onsite to Boiler Feedwater Standards, and 100 percent of water is treated, recycled,and used as makeup process and cooling water. No treated or untreated leachate,wastewater,or surface water are discharged to surface water,orto the sanitary sewer; • Ash produced by the gasifiers is treated in a slagging unit to remove lOO percent of the carbon. The ash is pozzo|onic, which means it sets up like concrete. The ash is sold to Portland Cement Batch Plants as a sand or gravel replacement or is used to make concrete blocks. No ash is placed in the landfill; � Since air emissions are more than 10 times lower than air quality standards, 100 percent of the water is recycled, and lOO percent of the ash is reused' the MEP EnviRemed Gasification Facility is three times green; and 0 More than 95 percent of the waste is either recycled, reused' or converted to dean' green, renewable energy. � Financial Benefits of MEP ERE Gasification System to New Hanover County: , MEP ERE Pays a o 1.00/ton Community Host Fee to New Hanover County: $347,000/yr 2) New Hanover County's Operational Cost of Managing Landfill Reduced by: $4,940,000/yr 3) County Retains 100%of Current Tipping Fees: $20,000,000/yr 4) Generates Property and Payroll Taxes: $2,000,000tyr 5) Air Space Saved in Landfill: $1,970,000/yr 6) MEP ERE treats the Landfill Leachate in the Leachate/Water Treatment Plant-, SIOUOftr TOTAL om^Nom AND REVENUE ro NEW a^NovEnCOUNTY $29,357,000/,u In addition=the Financial Benefits; .` MEP ERE-minvest$2=»00,000°construct and operate the Gasification Diesel Fuel Production Facility,and will assume 100 percent of the financial and operational risk; 2) The MEP ERE Gasification Diesel Fuel F�oduction Facility will produce 222 jobs for the 30-year life of the facility,plus an additional 200 jobs for construction of the facility; 3) The MEP ERE Gasification Facility provides approximately m"million-salaries,and approximately o26 million~local economic impact; 4) _ * ~^ � ,�=�� Emissions,and the resulting impact°Human Health and the Environment will bereduced by more than 95 percent. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 719 In response to questions,County Manager Coudriet stated that staff does support exploring alternatives to landfilling but does not recommend advancing an unsolicited proposal without a defined vetting process. He recommended developing a structured solicitation for solid waste and energy proposals and bringing it to the Board for consideration.Commissioner Scalise agreed,noting interest in the concept but emphasizing the need for broader evaluation and a consistent framework for comparing similar ideas. Mr. Cooke stated that the company has worked with County staff for about 18 months and met with the North Carolina Department of Environmental Quality's Air Quality and Solid Waste divisions, which expressed support after reviewing the proposal. He clarified that the request involves only the waste stream and that the company would handle all permitting, construction, land acquisition, and operations. He identified potential sites along the U.S.421 corridor in New Hanover County and one in Brunswick County. He stated that the company needs a long-term waste stream agreement to secure financing. At Mr. Cooke's request, Dr. Williams provided technical information on comparable gasification facilities, noting that the world's largest facility processes about 6,000 tons per day, a similar facility in Spain processes about 1,270 tons per day,and several facilities in North America handle 600-780 tons per day. He also referenced a full-scale demonstration plant in Durham. In response to follow-up questions, Mr. Cooke stated that the County would not provide land or funding and that the company would assume all costs and site acquisition. He added that revenues would come from energy sales, that the landfill would remain under County ownership and control, and that the request remains limited to the waste stream. The Board discussed the matter and supported continued exploration of alternatives while emphasizing the need to understand regulatory and environmental considerations, involve relevant staff, review comparable facilities, and evaluate other options before taking further action. Chair Rivenbark requested contact information for comparable operations.The Board thanked Mr. Cooke, Dr. Williams, and staff for the information and directed the county manager to continue evaluating waste-diversion options and develop a formal solicitation process. COMMITTEE APPOINTMENTS Appointments to the New Hanover County Board of Adjustment Chair Rivenbark reported that four vacancies exist on the New Hanover County Board of Adjustment,with two applications eligible for reappointment, and five other applications are available for consideration. Commissioner Walker nominated Laura King and Michael Sanclimenti for reappointment as Regular members, and Kristin Freeman and Jason Holland for appointment as Alternate members, seconded by Commissioner Scalise. Hearing no further nominations,Chair Rivenbark asked for a vote on the nominations on the floor. Vote Results: The Board voted UNANIMOUSLY to reappoint Laura King and Michael Sanclimenti in the Regular member category and to appoint Kristin Freeman and Jason Holland in the Alternate member category to the New Hanover County Board of Adjustment to serve three-year terms that expire December 1, 2028. Appointments to the New Hanover County Commission on African American History,Heritage,and Culture Chair Rivenbark reported that two vacancies exist in the Civil Rights Community category on the New Hanover County Commission on African American History, Heritage,and Culture with two applications available for consideration. Commissioner Zapple nominated Alicia Montgomery and Lauren Samples for appointment, seconded by Commissioner Walker. Vote Results: The Board voted UNANIMOUSLY to appoint Alicia Montgomery and Lauren Samples to the New Hanover County Commission on African American History, Heritage, and Culture in the Civil Rights Community category for three-year terms that expire August 31, 2028. Appointment to the New Hanover County Cooperative Extension Advisory Council Chair Rivenbark reported that one vacancy is available for appointment to the New Hanover County Cooperative Extension Advisory Council,with one applicant eligible for reappointment. Commissioner Zapple nominated LaKeasha Glaspie for reappointment, seconded by Commissioner Scalise. Hearing no further discussion,Chair Rivenbark asked for a vote on the nomination on the floor. Vote Results: The Board voted UNANIMOUSLY to reappoint LaKeasha Glaspie to the New Hanover County Cooperative Extension Advisory Council to serve a three-year term expiring December 1, 2028. Appointment to the New Hanover County Plumbing Board of Examiners Chair Rivenbark reported that one vacancy exists in the Master Plumber category on the New Hanover County Plumbing Board of Examiners,with one application available for consideration. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 REGULAR MEETING PAGE 720 Commissioner Scalise nominated David K.Woodbury for appointment, seconded by Vice Chair Pierce. Vote Results:The Board voted UNANIMOUSLY to appoint David K.Woodbury to the New Hanover County Plumbing Board of Examiners in the Master Plumber category to serve a three-year term that expires December 1, 2028. PUBLIC COMMENT Chair Rivenbark stated that one person signed up to speak under public comment and asked that the speaker to provide comments. Roger Shew,a resident of Park Avenue,Wilmington, NC,thanked the Board for adopting the Chemours and IBT resolutions and stated that PFAS discharges continue to affect the region and that expanding the Chemours facility should not proceed until existing contamination is addressed. He said residents should be able to comment on the interbasin transfer because past low flow conditions have affected drinking water intake and river ecosystems. He thanked Ms. Wampler for sustainability report, supported forming an advisory committee, and asked the Board to obtain DEQ's feedback on high-temperature pyrolysis technology for waste management. He also commented on the proposed port deepening project, encouraging the Board to submit comments to federal and state agencies to consider PFAS contamination in dredged river sediment,evaluate potential environmental and public health impacts,and review mitigation options. ADDITIONAL AGENDA ITEMS OF BUSINESS County Manager Coudriet reminded the Board about the 3:00 p.m. Joint Special Meeting with the New Hanover County Board of Education later in the day. Commissioner Zapple commented on various matters the Board will address in 2026, including working to strengthen its partnership with the City of Wilmington, advancing housing affordability, preserving green space, continuing work with the New Hanover Community Endowment, promoting regional collaboration, and increasing investments in public safety, County services, and public schools, including an appropriately sized school bond and expanded pre-K classrooms. He stated that, as the Board's longest serving member, he would welcome the opportunity to chair next year and bring his experience to the work ahead. ADJOURNMENT There being no further business, Chair Rivenbark adjourned the meeting at 10:58 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.