11132014MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Regular Meeting on Thursday, November 13, 2014, at
7:00 p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tern
Buddy Maness, Council Members N. Carnell Robinson, Frank McLean, Billy Tart, Chuck Turnage
and Billy Barfield. Also present was City Manager Ronnie Autry, Assistant City Manager Steven
Neuschafer, Finance Director Drew Holland, Public Works Director Billy Addison, Public Utilities
Director Dean Gaster, Chief Building Inspector Steven King, Planning Director Samantha
Wullenwaber, Police Chief Jimmy Pope, Human Resources Director Anne Thompson, City Attorney
P. Tilghman Pope, City Clerk Debra West, and Daily Record Reporter Keilah Goff.
INVOCATION
Mayor Harris opened the meeting at 7:00 p.m. and asked Reverend Dr. Len Keever, Pastor of Dunn First
Baptist Church and Vice - President of the Dunn United Ministerial Association to give the invocation.
Afterwards, the Pledge of Allegiance was repeated.
Mayor Harris welcomed the following guests in the audience:
• Dr. Jerry Wallace, President of Campbell University
• Dr. Ron Maddox, Chairman of the Board of Directors for Harnett Health System
• Mike Nagowski, President and CEO of Cape Fear Valley Health System
• Ben Thompson, former City Attorney and Legal Counsel for Harnett Health System
• Jim Burgin, Hamett County Commissioner
• Gordon Springle, Hamett County Commissioner
• Abe Elmore, former City of Dunn Mayor and Hamett County Commissioner Elect
Mayor Harris yielded to Mr. Elmore for comments. Mr. Elmore thanked everyone for their support in his
recent election to office. He recalled that when he was Mayor of Dunn, the Council held a six hour hearing
concerning the future of the hospital. He stated that the City of Dunn and Harnett County need Hamett
Health System for the people of Dunn and the County.. He stated that he hopes what is done tonight will be
beneficial to the citizens.
Mayor Harris welcomed the following additional guests in the audience:
• Dr. Breeden Blackwell, Director of Government Relations for Cape Fear Valley Health System,
former Mayor Pro Tern for the City of Fayetteville and former Cumberland County Commissioner
• Dan Weatherly, President of Hamett Health System
AGENDA ADJUSTMENT AND APPROVAL
Motion by Council Member Robinson and seconded by Council Member Barfield to adopt the November
13, 2014 meeting agenda with changes, if any, as listed below.
Agenda Items Added for Decision:
• Resolutions of the Dunn City Council Authorizing, Approving and Consenting to the execution of
the Management Services Agreement between Hamett Health System, Inc. ( "HHS ") and Cape
Fear Valley Health System and the Amended Articles of Incorporation for HHS
• Temporary Blocking of Street — Portion fronting 614 E. Broad Street (Another Barber Shop)
extending from N. Wilmington Avenue to 611 E. Broad Street
Agenda Items Removed:
• none
Motion unanimously approved.
PRESENTATIONS
Proclamation in Memory and Appreciation of
Darlene Smith Maynard
Mayor Harris and Council Member and Council Liaison for the Dunn Housing Authority Chuck Tumage
presented a Proclamation in Memory and Appreciation of Ms. Darlene Smith Maynard to the family of Ms.
Maynard. Also present was Dunn Housing Authority Board Chairman Eric Sinclair, Vice - Chairman Lester
Lee, board member Lois Dail, DHA Executive Director Debbie Norris and Occupancy Manager Bud
Hudson. A copy of Proclamation (P2014 -27) in Memory of the late Darlene Maynard is incorporated into
these minutes as Attachment #1.
97
Resolutions of the Dunn City Council
Authorizing, Approving and Consenting to the
Execution of the Management Services Agreement between
Harnett Health System, Inc. ( "HHS ") and
Cape Fear Valley Health System and the
Amended Articles of Incorporation for HHS
Mayor Harris explained that Harnett Health System (HHS) has reached an agreement with Cape Fear
Valley Health System (Cape Fear) to take over management of HHS. He expressed his appreciation to Dr.
Ron Maddox, Chairman of HHS Board of Trustees and all the members for their dedication and due
diligence in forming this new partnership with Cape Fear. He welcomed the representatives of Cape Fear
in the audience and thanked them for being an integral partner to provide quality health care services to the
citizens of Harnett and surrounding counties. Although some of the matters contained in the resolutions
may not require Council approval, Cape Fear wishes to operate with transparency as they enter this
partnership and has requested the City of Dunn Council and Harnett County Commissioners to adopt these
resolutions regarding some of the terms of the new partnership. He yielded to City Attorney Pope to
introduce the items before the Council.
City Attorney Pope explained that he previously distributed information, including the proposed resolutions
to the Council. He called on Mr. Ben Thompson, legal counsel for HHS for his presentation.
Attorney Thompson stated that the City of Dunn has been a critical partner with Betsy Johnson Hospital
which is now Harnett Health System. The City of Dunn has been a participant in a Memorandum of
Understanding along with Harnett County. In 2005, all these parties came together to create a new entity
"Harnett Health System ". The City of Dunn and Harnett County have been integral players in that process.
Prior to the MOU, the City of Dunn owned the real estate where the Betsy Johnson Hospital facility is
located and through the generosity of the citizens of Dunn, that property was transferred to the Hospital
System but at the same time, the City and its' citizens were protected with the reservation of rights that in
the event that the facility no longer was a hospital facility, it would revert back to the City and at the same
time when that transfer took place, there was a substantial payment made by the hospital system to the City
of Dunn as well as annual payments that would continue. Those annual payments will not be affected by
the proposal tonight.
He addressed briefly the conditions contained in the proposed resolutions along with the following other
remarks:
• The management services would be provided by Cape Fear Valley.
• There was interest by various sources; however the HHS Board of Trustees determined that Cape
Fear offered the best alternative for HHS and for the citizens of Harnett County.
• Cape Fear is a not - for - profit corporation just as HHS.
• Cape Fear has a similar payer mix as IRIS regarding Medicare, Medicaid, private insurance and
indigent care.
• Cape Fear has a proven track record of successfully operating hospitals.
• Mr. Weatherly is the new President of Harnett Health.
• Mr. Nagowski is the President of Cape Fear and has done a wonderful job with Bladen County
which was impressive to the HHS Board.
• HHS Board was looking for dynamic and capable leadership and found Mr. Nagowski to be
passionate about healthcare.
• The Management Agreement, as proposed is entered into with HHS and Cape Fear for a period of
ten (10) years and will automatically renew for additional one (1) year terms.
• Cape Fear will have one (1) board member represented on the HHS Board.
• Cape Fear will continue to provide public and charitable benefits to the public.
• The agreement gives Cape Fear the right to purchase 49% of a new company "Newco ". The land,
bricks and mortar will remain with HHS, including both the Betsy Johnson facility and the Central
Harnett facility. All tangible and intangible assets except the real property and improvements will
be transferred to Newco.
• Under the terms and declarations in place by the City of Dunn, the City has to approve any change
in ownership. Cape Fear and HHS wanted transparency and wanted public approval and
endorsement by the City of Dunn. In consideration for the 49 %, should Cape Fear decide to make
that election, they will waive their management fees of $300,000 per year for up to two years or at
such time may forgive the balance of any money owed under the $10M line of credit.
• If Newco is created, they will enter into a lease agreement with HHS whereby HHS shall lease the
hospital and facilities to Newco. Consideration for the lease agreement shall be paid by Newco in
an amount not less than the amount of HHS's payment obligations pursuant to the HHS MTI, if
any and any other payment obligations secured by the facilities, if any.
• Under the terms of the agreement, the approval of the City of Dunn must take place within (30)
days from the date the agreement was entered into, which was November 3, 2014 as well as
approval by the County of Harnett within (30) days.
Mr. Thompson concluded by asking the City Council to consent to the execution of the Management
Services Agreement, to allow the amendment to the Articles of Incorporation that will transfer the previous
board seat to the one board seat that will now be held by Cape Fear Valley designee and to also approve the
formation of Newco, transferring all of the assets except for real property and improvements to Newco, the
lease agreement between HHS and Newco and the transfer of 49% interest to be made by HHS to Cape
Fear Valley. He added that this has been an extremely difficult process and it took a great deal of work on
the part of the Board of Trustees. He is thankful that Cape Fear Valley came along and had an interest in
HHS. The continuation and success of HHS is critically important to the medical program of Campbell
W
University. Campbell University has been a partner with both the City and the County by providing
assistance to HHS to allow HHS to obtain additional credit to work through this financial difficulty.
Mayor Harris stated that this partnership will be a great economic engine for Harnett County.
Mr. Nagowski, CEO of Cape Fear Valley Health System thanked the Council for allowing Cape Fear
Valley to manage HHS. HHS will be a training site for Campbell University Medical students. The
citizens of Dunn should not have to travel great distances to receive great medical care. Cape Fear is
looking forward to helping and providing the weight, breadth and depth of a vital organization here in
Harnett County.
Dr. Jerry Wallace, President of Campbell University stated that this process has been difficult and a
revelation of growth and partnership. Campbell has been deeply concerned about who would provide
health care in Harnett County since their medical schools are so vitally linked to Betsy Johnson and Central
Harnett Hospitals. He urged the adoption of the resolution that is before the City Council.
Motion by Council Member Robinson and seconded by Mayor Pro Tem Maness to authorize, approve
and consent to the Execution of the Management Services Agreement between Harnett Health System,
Inc. ( "HHS ") and Cape Fear Valley Health System including the Amended Articles of Incorporation for
HHS.
Council Member Robinson stated that this is in the best interest of our citizens; it is an opportunity for the
Council to reaffirm their commitment to maintaining local health care. He added that it was a very difficult
decision years ago when the City transferred Betsy Johnson to the Board of Trustees; adding that the
Council was willing to put their personal and political concerns to the side and concentrated on making sure
that health care was managed. If the Council had not addressed health care years ago, Betsy Johnson
would not have survived. He looks forward to this partnership with Campbell University and Cape Fear.
Council Member Barfield stated that he was a part of the six hour hearing when the Dunn City Council
approved the transfer of Betsy Johnson to the Board of Trustees; adding that he never regretted it and it was
well worth it in the long run. He certainly agrees with adoption of this resolution.
Motion unanimously approved. A copy of the Resolutions (R2014 -20) to authorize, approve and consent
to the Execution of the Management Services Agreement between HHS and Cape Fear including the
Amended Articles oflncorporation for HHS is incorporated into these minutes as Attachment #2.
At the request of Mayor Harris, Dr. Jerry Wallace approached the podium and offered a prayer of
thanksgiving over this partnership.
7.53 pm —Mayor Harris called for a brief recess.
7:55 pm —Mayor Harris called the meeting back to order
PUBLIC COMMENT PERIOD
Mayor Harris opened the floor for a (30) minute public comment period.
Hearing no comments, Mayor Harris recessed the Council meeting and opened Public Hearings at 7:55 pm
PUBLIC HEARINGS
Rezoning Request PZ -02 -14
Dr. Gordon Townsend Jr.
PIN #1506 -99- 8884.000
900'h Block of Erwin Road
Mayor Harris stated that the public has been notified that oral and written comments will be heard and
received concerning the request by Gordon Townsend, Jr. to rezone 2.16 acres in the 900 block of Erwin
Road.
The property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3;
Highway Commercial District.
The public hearing was duly advertised on October 21", November 0 & I I`h, 2014.
Mayor Harris asked if there was anyone present who wished to speak for or against this rezoning request
Hearing no comments, Mayor Harris closed the public hearing.
Ordinance Amendment OA -07 -14
Chapter 22; Article I, HI, & IX
Amend the Permitted and Conditional Uses to
Include but not be limited to: Private meeting halls,
Fraternal organizations and Banquet halls
(Tabled by Planning Board)
Mayor Harris stated that this is a request to hereby amend Chapter 22, Zoning Ordinance, of the City of
Dunn Code of Ordinances; Article I, III & IX.
M
This is a request to amend Article I, HI & Article IX, text changes to amend the permitted and conditional
uses to include but not be limited to: private meeting halls, fraternal organizations and banquet halls.
The public hearing was duly advertised on October 21st, November 4t° & 1lth, 2014.
Mayor Harris explained that this item was tabled by the Planning Board at their October 28`h, 2014 meeting
until the next Planning Board meeting on November 20th, 2014.
Mayor Harris asked if there was anyone present that wished to speak for or against this ordinance
amendment.
Hearing no comments, Mayor Harris closed the public hearing and reconvened the regular meeting at 7:58
p.m.
CONSENTITEMS
Minutes — Council considered approval of minutes of the October 14, 2014 City Council meeting.
Minutes - Council considered approval of minutes of the October 21, 2014 Special Call Meeting.
Monthly Performance Status Report-HTC — Council considered approval of Status Report for the month of
October, 2014 for the NC Catalyst Grant 12 -C -2476, the Quarterly Progress Report for the period of
7/01/2014 — 09/30/2014 and the Grant Summary— Harnett Training School Apartments Project.
Surplus Resolution — Council considered approval of a Resolution Authorizing the Disposition of Personal
Property by electronic means through www.GovDeals.com. A copy of Surplus Resolution (R2014 -21) is
incorporated into these minutes as Attachment #3.
Motion by Council Member Barfield and seconded by Council Member McLean to approve all consent
items. Motion unanimously approved.
ITEMS FOR DECISION
Rezoning Request PZ -02 -14
Dr. Gordon Townsend Jr.
PIN #1506 -99- 8884.000
900th Block of Erwin Road
This is a request to rezone 2.16+ acres of 6+ acre tract, located in the 900 block of Erwin Road. This
property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3;
Highway Commercial District.
The Planning Board met on October 28h, 2014, to review the request and ask for comments from the
public. After hearing comments from the public and the request from the applicant, the Planning Board
voted unanimously to recommend approval of this request.
Planner Wullenwaber explained that this is vacant land. The proposed land use is a Fred Super Dollar and
Pharmacy. To the north and west is O & 1; Office & Institutional District, to the south and east is C -3;
Highway Commercial District. In 2008 the property was rezoned from R -10 to CO which is what is now
called the O & I District. This property is located in area four of the land use plan. Municipal water and
sewer service is available. The driveway access is on Erwin Road which is a DOT road. DOT would have
to issue a driveway permit and any road improvement necessary.
Council Member Tumage asked if the present dirt road is part of this property. Ms. Wullenwaber
responded that the dirt road is a dedicated road.
Manager Autry stated that the DOT map indicates that one access turn lane will be directly into this piece
of property prior to the dirt path; the dirt path will remain. In the future, DOT has stated that realignment
will take place on the Wellons property.
Motion by Mayor Pro Tern Maness and seconded by Council Member Barfield to approve the request from
Dr. Gordon Townsend Jr. to rezone (PIN #1506 -99- 8884.000) totaling 2.16± acres and located in the 900th
block of Erwin Road from O & 1; Office & Institutional District to C -3; Highway Commercial District
based on the following justification:
1) The City of Dunn Land Use Plan identifies this area as office on the future land use plan, although
due to recent trends in this area over the past 10 years, commercial zoning would also be viable
and ideal for this area. This property is located in area four of the Land Use Plan.
2) The amendments are not inconsistent with the adjoining and surrounding land uses nor are they
considered detrimental.
3) The permitted uses in the C -3 District are not considered detrimental to the area and would be
beneficial to the entire community.
Motion unanimously approved.
Resolution Accepting the
Utilities for the
100
Four Oaks Bank Business Park
The Council is being asked to accept the storm water drainage system, water and sewer systems for the
Four Oaks Bank Business Park on Ashe Avenue.
Planner Wullenwaber explained that the final subdivision was approved at the September 11, 2012 City
Council meeting. Four Oaks Bank had several documents they had to obtain before the Planning Director
could sign the final plat after the decision over two years ago. Those documents include the cross access
easement, utility easements, and the bond covering the installed infrastructure for one year against any
defect. We have received all necessary documents and they have been recorded with the Harnett County
Register of Deeds office on October 27, 2014. City Attorney Pope has the escrow and escrow agreement.
Council Member Tumage stated that he is concerned with the drainage of this property onto Broad Street.
Ms. Wullenwaber stated that there is language in the covenants and other documentation that underground
storm water collection system will be in place between the property lines and any future development
would have to install a collection system.
Mayor Pro Tern Maness asked if there was a reason it took two years to receive all documents. Ms.
Wullenwaber responded that it was not on the part of the City but took some time to receive the documents
from Four Oaks Bank.
Motion by Council Member McLean and seconded by Council Member Tumage to adopt the Resolution to
accept the storm water drainage system, water and sewer systems for the Four Oaks Bank Business Park.
Motion unanimously approved. A copy of Resolution (R2014 -22) accepting the utilities for the Four
Oaks Bank Business Park is incorporated into these minutes as Attachment #4.
Consideration to Adopt
City of Dunn
Comprehensive Bicycle Plan
The Council is being asked to adopt the 2014 City of Dunn Comprehensive Bicycle Plan completed by Alta
Planning + Design.
This is the conclusion to the CTG grant which provided 100% of the funds to develop the comprehensive
bicycle plan. This plan provides for guidance for programs, policies, and projects which will engage our
community for many years, as we continue to develop and grow.
Planner Wullenwaber stated that adoption of this plan endorses the plan's vision that the City of Dunn will
be a vibrant, economically stimulated, and connected community where bicycling is safe and convenient
for individuals and families.
This plan was presented at the October City Council meeting and can be viewed at
www.durinbikeplan.com.
Motion by Mayor Pro Tern Maness and seconded by Council member Turnage to approve the adoption of
the City of Dunn Comprehensive Bicycle Plan.
Council Member Barfield questioned if this plan is needed and voiced his concern that the City of Dunn
needs to accomplish other projects. He added that he requested a hard copy of the plan and has not
received it.
Motion approved 5 -1 with Council Member Barfield opposing. A copy of the City of Dunn
Comprehensive Bicycle Plan is filed in the offices of the Planning Director and City Clerk.
Award/Reject Bid —
City of Dunn, NC Downtown Revitalization -
Magnolia Avenue (Base Bid),
Cumberland Street (Alternate Bid)
(deferred at 10 -21 -14 CCMtg.)
Manager Autry explained that bids were opened and received on Thursday, October 9", 2014 at 2:00 pm
for the City of Dunn, NC Downtown Revitalization — Magnolia Avenue (Base Bid), Cumberland Street
(Alternate Bid). This contract will consist of street, curb and gutter, sidewalk, and aesthetic improvements.
The following four (4) companies submitted bids as follows:
Base Bid
Alternate Bid
Fred Smith Company Construction
$307,425
$140,200
Raleigh, NC
H.G. Reynolds Co., Inc.
$362,700
$138,800
Henderson, NC
Trader Construction Co.
$511,220
$210,650
New Bern, NC
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