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02052010MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Budget Retreat/Planning Session on Friday, February 5, 2010, from 8:30 am — 3:36 pm, in the Lundy- Fetterman School of Business on the campus of Campbell University in Buies Creek, NC. Council Present: Mayor Oscar N. Harris, Mayor Pro -Tern N. Carnell Robinson, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Chuck Turnage and Joey Tart. Staff Present: City Manager Ronnie Autry, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Finance Director Mark Stephens, Recreation Director Perry Hudson, Police w J I Chief B.P. Jones, Chief Building Inspector Mike Blackmon, Librarian Mike Williams, City Planner Steven Neuschafer, and City Clerk Debra G. West Also Present: City Engineer Ed Powell, City Attorney P. Tilghman Pope and Daily Record Reporter Reece Murphy. Mayor Harris called the meeting to order at 8:30 a.m Invocation — Mayor Pro Tem Robinson Pledge of Allegiance repeated. Welcome Dr. Ben Hawkins, Dean of the Lundy- Fetterman School of Business, welcomed each one to the campus. He spoke about the importance of leadership and vision. He challenged each one to think about where the City of Dunn will be when the next generation comes along; what decisions will be made today and in each planning session, to transform the City of Dunn. He spoke of the positives of planning for the future as the Council is doing today. Dr. Jerry Wallace, President of Campbell University, also welcomed everyone and spoke of what the City of Dunn means to him. He thanked the City of Dunn for their support of Campbell, making mention of the Campbell banners that are displayed through -out the City of Dunn. He expressed gratitude for the financial support that comes from within the City of Dunn; adding that Dunn is an economic center of Harnett County. \ ✓/ Mid -Year Financial Report Finance Director Mark Stephens presented the mid -year financial report: • Fund Balance as of 6/30/2009 - $3,266,457 or 30.38% of expenditures • Cash/Investment balances as of 12/31/2009: General Fund - $3,006,457 Water /Sewer Fund - $1,988,200 E -911 Fund - $371,879 Total - $5,366,536 • Property Taxes collected as of 1/5/2010: $2,846,470 or 89.23% of budget • Property Taxes collected as of 1/5/2009: $2,389,456 or 86.17% of budget • Sales Tax: Sales revenue as of 12/31/2009 was $418,210 or 29.45% of budget Sales revenue as of 12/31/2008 was $507,285 or 33.15% of budget 3.88% below budget through first six months of fiscal year • Franchise Tax: Franchise tax revenue as of 12/31/2009 was $278,692 Franchise tax revenue as of 12/31/2008 was $269,197 An increase of 3.53% over last year • Water /Sewer Revenue: $2,095,588 as of 12/31/2009 or 51.75% of budget $2,082,676 as of 12/31/2008 Revenue is above budget despite the closing of the ESC facility • Expenditures: Benchmarks for this time of year is 50 % General Fund expenditures as of 12/31/2009 was 49.04% of budget Water /Sewer Fund expenditures were 45.66% of budget • Budget Concerns FY 2010/2011: Increase in employer paid State Retirement Rate contribution of 1.55% (increase from 4.80% to 6.35% per employee) effect would be about $75,000 in additional expenditures Zero growth in sales tax revenue and decrease in investment earnings for next fiscal year Health insurance premium increase State budget affect on municipalities • Funding Capital Project: City has low outstanding debt General Fund O/S debt as of 12/31/2009 was $2,483,260 City has a debt borrowing limit of $50,000,000 Low interest rates for the foreseeable future Consider increasing maturity dates on future borrowings Effective March 2009, Standards and Poor increased the City's bond rating from BB+ to A+ An amortization schedule of the current debt was distributed to the Council. Review of 2008 & 2009 Retreat Mayor Harris yielded to Manager Autry to review the agenda. Mr. Autry requested guidance from the Council with the various agenda items which will be discussed today. Mr. Autry reviewed the top issues which were established by the City Council during the 2008 and 2009 retreat and gave an update on the status of each issue. Many of these issues have already been accomplished while a few are still in the process of completion. He spoke about an enhancement program to the Government Channel. The Council discussed staffing requirements to add enhancements to the channel, making contact with other municipalities to develop a government channel policy, and the costs associated to implement this enhancement. Discussion was held about the possibility of acquiring an intern from Campbell's media department to aid with staffing. Consensus of the Council for Mr. Autry to pursue all costs associated with implementing an enhancement to the Government Channel, and staffing requirements when compared to other municipalities. Mr. Autry gave the Council an update on the widening and expansion of I -95. At the end of 2009, he attended a meeting with DOT officials in Lillington to receive an update on this project. At that time, DOT reported they have hired engineers to do a Planning Study only; not for construction. DOT will begin public hearings in early summer 2010 for this project; however, DOT is stressing that at this time, they are in the planning stages to possibly expand this project from Virginia to South Carolina. Mr. Autry gave the Council an update on the relocation of Highway 55 near the new Food Lion Shopping Complex. This project was let for bid on January 19, 2010 and contracts were awarded to Highland Paving. Weather permitting, this project should be breaking ground in the next 30 to 60 days. Mr. Autry stated that he will be meeting with new DOT officials in the next week for an update on various projects around Dunn including the possibility of a round -a -bout on Powell and Ashe Avenue, and the status of the traffic light on Erwin Road at Tilghman Drive. Code of Ethics City Attorney P. Tilghman Pope explained that Session Law 2009 -403 enacts a new statute G.S. 160A -84, which requires all members of the local governing boards to receive two clock hours of ethics education in 2010 and then again within 12 months after each subsequent election. He advised them that a local class will be held in Smithfield on April 20" and City Clerk Debra West can register them to attend this class. The statute also requires that the City of Dunn adopt a code of ethics formal policy before January, 2011. The NCLM will develop a model policy for municipalities to pattern their particular policy. Old Harnett Hiah School Property Manager Autry stated that a Request for Proposals (RFP) was advertised for the facility previously occupied by Hope Ministries Daycare and one letter of interest was submitted by Johnston - Lee - Harnett Community Action, Inc. Johnston - Lee - Harnett Community Action serves 0 -5 year olds at no cost to the families. They currently operate a Head Start Program on E. Broad Street and presently have 55 children enrolled. This organization has been awarded a grant from HHS for Early Head Start to upgrade the building. In their proposal, they state that they understand there needs to be some renovation to the building and they are prepared to pay for the renovations to the HVAC and electrical systems. They propose to increase their staff and enrollment should they receive this building. They are interested in a ten year lease. They currently serve Smithfield, Sanford and Lillington. Mayor Harris suggested they check this organization's articles of incorporation, financial statements and 501 (3) (c) status. It was the consensus of the Council to direct the City Manager and City Attorney Pope to proceed with preparing a lease agreement between the City of Dunn and Johnston- Lee - Harnett Community Action, Inc. Mr. Robinson stated that this organization has a good reputation. They are a well established group and very compatible with what is on this site. Mr. Autry also informed the Council that there is a leak in the roof of the old Hope Ministries building. He plans to have the roofing contractor look at this situation when they begin repair and replacement of the City Hall and Library roofs. Discussion was held about the possibility of obtaining Rosenwald School grant funding for reuse of the Old Harnett High School main building for historic and housing credits. The Council spoke about making this an income producing facility. UDdate/Timetable— Wastewater Proiects Timetable — Downtown Development Manager Autry reiterated that the City of Dunn has a low debt service as stated by Finance Director Stephens; however, they will need to decide how the downtown development enhancements will be paid for. He added that decisions will need to be made with regard to proceeding with the downtown enhancements. He pointed out that with the downturn of the economy, now is a good time to accomplish this project with the current low prices and interest rates. Wastewater Projects Manager Autry yielded to City Engineer Ed Powell to provide an update on this project. Mr. Powell explained that the overall project of $10.5 million is being advertised for bid. This project will be bid in three segments: Gravity Sewer Rehabilitation and Replacement, Wastewater Treatment Plant Upgrade and pumping station and forcemain upgrade. He summarized the work entailed with each segment of this project. He added that the City of Dunn has been awarded a $2.95 million Clean Water Management Trust Fund Grant and two (2) $500,000 Rural Center Grants; leaving the City to borrow an approximate $6.5 million through the Construction Grant Revolving Loan at an interest rate of 2 %. Bids for each project will be received on February 25, 2010 at City Hall. Mr. Powell pointed out that all easements should be signed and recorded by bid opening date. The deadline for signed easements is March 20, 2010. He explained that if all easements are not signed, the City will not be allowed to award the contracts and the grant money will never be received. Discussion was held about the process involved to declare eminent domain. Council consensus was to call a special meeting if required, to adopt a resolution of intent to condemn property for those property owner's that will not sign easements for this project. Mr. Powell explained that the wastewater grant project will involve replacing the sewer line and patching the pavement in the downtown area. There is $486,000 out of the grant funding for the overall project that will be used to replace part of the sewer in the Broad Street downtown redevelopment. This concept does not include sidewalks, streetscapes or enhancements; only line replacement/rehabbing sewer lines and patching the pavement. Mr. Powell stated that the $486,000 in combination with fund balance from the water fund will pay for the water and sewer line replacement in the downtown area. Downtown Development Mr. Powell stated that the downtown development target area includes Broad Street from Railroad to Elm Avenue between Cumberland and Edgerton (to include the area of City Hall). Mr. Powell gave a report on the engineering for downtown. He summarized the costs associated with the different facets of a total redevelopment of the downtown area to include rehabilitation of the sanitary sewer lines and services, replacement of the water lines, street and sidewalk improvements, install new curb and gutter, build sidewalks, convert overhead power to underground, install new traffic light system, decorative street lights, and communication lines converted to underground. The cost projection for the entire downtown project is approximately $5,250,000 less $1,685,000 from a grant and from the water /sewer fund balance, leaving a balance of approximately $3,565,000 to finance by negotiation between the DDDC and the City. He asked the Council if they should move forward to complete the project, or should they refine the project. He added that there is no better time to complete this project since the streets will have to be removed to replace the water and sewer, construction cost and interest rates are the lowest they have ever been with the current state of the economy. Mayor Harris welcomed chairman of the Downtown Dunn Development Corporation (DDDC) and former Mayor Dal Snipes who gave a power -point presentation of downtown Dunn, past, present and future. Mayor Snipes also recognized Bill Lassiter, President of the Dunn Area Chamber of Commerce in the audience. Information shared by Mr. Snipes included the Municipal Tax District, which is currently set at .12 cents per $100 valuation. With the recent revaluation, they may not want to increase the downtown tax at this time. As a National Historic District, the (DDDC) Commercial District offers big tax credits, up to 40% off the cost of a project, photos of downtown Dunn from years past, and photos of what downtown could look like. Mr. Snipes pointed out that 10 % of the total $10.5 million project should be the cost for this project ($1.5 million). From an amortization stand - point, the annual debt service payment would be approximately $57,000 over a 30 year loan. Mr. Snipes pointed out that from a citizen's stand - point, it is the City's responsibility to provide paved streets and sidewalks. Mr. Snipes stated that the (DDDC) currently has a fund balance of $85,000. He spoke of USDA grants that the City and DDDC could pursue. DDDC would like to partner with the City to accomplish this project. Mr. Snipes expressed the need to complete the entire downtown project at one time. Discussion was held about the possibility of utility companies including DOT, Cablevision, Progress Energy and Embarq contributing to some of their costs as they have done for other towns. Manager Autry stated that his projected cost for the total project is $2.5 to $3.0 million in General Fund financing. He asked the Council how the City will pay the debt service. Discussion was held about accomplishing the entire downtown project in phases. Lunch: 12:00 -12:45 p.m. Downtown Development continued Mr. Autry stated that he along with Engineer Powell will meet with the DDDC and all utility companies involved and bring back to the Council, total costs related to the General Fund, Water /Sewer Fund and how it will relate to the DDDC. Finance Director Stephens pointed out that the Council could issue a bond to involve several projects. The advantage of a bond is that it will allow an extended time to pay back debt; therefore, decreasing the debt service payment. The downside to a bond is that there is an issuance cost. He added that the City currently has two (2) long term notes in the General Fund; one is paid off in 2013 -2014 and the other in 2020 -2021. These two notes do not have large outstanding balances, and the remaining amounts could be included in the bond resulting in one large debt payment. Mr. Snipes stated that it is an economic drive to enhance downtown. Personnel Manager Autry referred to Council Member Galbreath's request to look at additional police officers. Mr. Autry presented organizational charts of similar size towns and staffing for each. He mentioned that the City of Dunn is understaffed with reference to personnel. Mr. Galbreath stated that additional police officers are needed on the night -shift to curtail crime activity. Council Member Maness stated that the City of Dunn is understaffed when compared to like size towns. Discussion was held about the absence of an Assistant to the City Manager and Human Resources Director. Mr. Autry pointed out that staffing should be increased in the Finance department, public works, recreation as well as other departments. Mayor Harris mentioned the need for a wellness program for the City of Dunn; however, with the absence of a Human Resources Director, it is lacking. He pointed out that the Manager uses the staff he is equipped with as best he can to accomplish what the Council has directed him to do. Chief Jones pointed out that within a seven mile radius, there is a population of about 100,000. Traffic volume has increased tremendously over the past two years through -out the City. They could use an additional police officer for each of the four shifts. The Police Department may qualify in March or April, to apply for a phased grant to fund additional officers. They could use additional personnel; however, he does not know where the funding source would come from. Cost projections could reach well over $300,000 to equip four additional officers. Personnel grant funding may be an avenue to pursue should it be made available in March or April. PARTF Grant Aoulicaflon (Bathroom/Tvler Park Concession) Mr. Powell explained that the City applied last year for a PARTF grant to construct additional recreational activities and to build four (4) ball fields for Tyler Park expansion. The City did not receive funding; however, the City has reactivated the application for a potential $500,000 PARTF grant. Mr. Powell stated that in addition to building a four (4) ball field complex, there will be a shuffleboard court, low impact skateboard park and splash pad. A new concession stand and restroom facility with a second floor control tower will be erected in the center of the ball fields. The local match for this project would be $842,000 with a total project cost of $1,342,000. It was discussed that even if the grant is not awarded, the City should proceed with building a new concession and bathroom facility. Notification of grant award should be sometime in May, 2010. Manager Autry stated that the City has been approached by parents about the need for a skateboard park. He along with Recreation Director Hudson and Chief Jones tried to come up with an informal skateboard area at Tyler Park to keep kids from skateboarding all over town. They propose to use one of the tennis courts and separate it from the other two tennis courts with a fence for use as a temporary low impact skateboard park. He made contact with the company that sells low impact skating equipment and received a quote of $5,000 to put this in place until a skateboard park is built. At present, home -made devices have been put out on the site by the kids that skateboard, making it dangerous. Manager Autry would like permission from the Council to buy the proper equipment to put on a portion of the old tennis court site at Tyler Park. Chief Jones presented a proposed skateboard ordinance, which the City does not have in place at this time. With an ordinance in place, it will allow the Police department to enforce skateboarding and the areas in which it is allowed. Discussion was held about the actual need for providing a skateboard park, investing funds for impact equipment, preventing the skateboarders from using the adjacent tennis courts, not having supervision on site, erecting a higher fence between the tennis courts and the court designated for the skateboarders. 10 Council consensus was to proceed with adopting a skateboard ordinance to allow the Police Department to enforce skateboarding through -out the City. The Council questioned investing $5,000 for skateboarding equipment at this point when a PARTF Grant is being applied for. Ordinances Chapter 3 — AnimallFowl Ordinance Manager Autry received a request for adopting an anti - tethering ordinance. He has discovered from other cities that it is not enforceable (ex. How will you monitor when an animal has been on a leash for three (3) hours or how do you make a dog owner erect a fence ?). The City of Dunn's current animal ordinance adopted in 1974 is outdated. Discussion was held about the need for a cat ordinance. They spoke of people feeding more than twenty cats in certain areas of town and the damage that they are doing through -out the City. Chief Jones stated that he is in the process of working on a proposed animal ordinance to include vicious dogs and plans to have it ready to present to the Council in April, 2010. Council consensus was for Chief Jones to proceed with presenting an animal ordinance for consideration to include vicious animals. Chapter 18 — Solid Waste Management Article I & H (Weedy wooded Lots) Attorney Pope stated that step one is for the Council to determine the costs that would be involved if the City cleaned up these lots, given that the City will bill the property owner, but the collection rate is not at a high percentage. Mr. Pope added that the ordinance will need to differentiate between an undeveloped natural wooded lot that has never had a structure erected on it from lots that are overgrown with brush, weeds and vines. Enforcement must be equally among all. Discussion was held that this is a property owner neglect issue and the need for the City to target the property owner and assess them the costs to clean up these lots; however, the problem is that the City's collection rate on weedy lots is not good. Discussion was held about overgrown lots through -out the town, the City putting a lien on the property should the City receive a complaint; however, the recovery is so low that it ultimately costs all taxpayers to clean lots neglected by certain property owners. Break: 2:15 — 2:30 pm Curbside Recvcline Manager Autry stated that Republic Waste Services has provided a quote of $3.25 per household per month to pick up every other week and provide a 65 gallon container. All co- mingled items can be put in this container. There are currently 3,855 residential units at this time. Cost projected is approximately $125,000 per year. Discussion was held that all Harnett County municipalities need to address Harnett County about adjusting the current solid waste fee being applied to all households with the volume of recyclables that are being taken away from the waste stream. The City will need to change their ordinance to include recycling applications. Manager Autry stated that to purchase the cans for recyclables, Republic Waste is asking for a three (3) year contract. To coincide with the existing solid waste contract that will expire June 30, 2012, Republic is asking that the City extend their contract one additional year to expire June 30, 2013. Discussion was held about Republic extending the contract beyond the additional year with the same terms in order to negotiate a lower recycling price. It was discussed that the City has extremely favorable conditions with the current solid waste contract. Recyclable containers would take approximately 60 days to have in place. Council consensus was to direct the City Manager to negotiate a curbside recycling contract with Republic Waste Services as well as to the existing solid waste contract. Council directed the Manager to negotiate for a five (5) year contract with the same terms as the current solid waste contract. Manager Autry will bring back a proposal at the February 9 Council meeting. Go Green: Paperless Agendas Manager Autry pointed out the challenges: Most cities have IT departments with full -time staffing and permanent Council chambers; the City of Dunn does not have either. The Council discussed beginning the process on a small scale perhaps by providing those Council Members that would like a CD of the Agenda to use on their personal laptop. This can be a gradual process to work toward a paperless agenda. 11 Departmental Capital Priorities FY 10 -11 Finance Department PROJECT FY FY FY FY FY 2010 -11 2011 -12 2012 -13 2013.14 2014 -15 IN Reading Truck 10,000 Planning Department Discussion was held about the donation of Hanna's Pond. Discussion was held about the City reimbursing a portion of the cost to conduct a survey that the City requested from Mr. Godwin. It was discussed that the Godwin's probably would not want to spend thousands of dollars for a survey just to have the Council reject this offer. The last action taken concerning this matter was a letter from Attorney Pope to Mr. Godwin asking for a survey of the property with a metes and bounds description so the Council could evaluate exactly what property was being offered to the City. Discussion was held about the pros and cons of accepting this property. Some of the concerns mentioned included costs associated with repairs to the dam, and the liability of the dam. The Council directed City Attorney Pope to write a letter to the property owner to inquire about the status of this issue and to ask the property owner to clarify their request, if any of the City, to share in the cost of the survey. PROJECT Hanna's Pond Sidewalk (adding new sidewalk according to plan) Wayfinding signs/building signs (4) WiFi Locations Construction Standards Manual N. Watauga Ave. Stormwater Project Easement Mapping Stormwater Mapping Police Department FY. FY 2010.11 2011 -12 25,000 25,000 30,000 30,000 35,000 FY FY 2012 -13 2013 -14 15,000 15,000 30,000 30,000 4,000 200 200 5,000 20,000 100,000 10,000 10,000 20,000 N1111 FY 2014 -1 15,000 30,000 200 Manager Autry explained that they propose to install a 911 back -up center in the Planning and Inspections Building at 102 N. Powell Avenue in case of catastrophic occurrence. The system is independent and will operate if one location is lost, destroyed or otherwise inoperable. At this time, a back -up system is not required by the state but it is anticipated the state will soon make this a requirement. Chief Jones stated they do not have to purchase this system in this fiscal year; it can be purchased in 2011- 2012. At this time, the 911 fund does not have enough capital to purchase the system. Approximately $40,000 will need to be designated as general fund monies. PROJECT FY FY FY FY FY 2010 -11 2011 -12 2012.13 2013 -14 2014 -15 J 911 Back -Up 275,000 10,000 Public Utilities Discussion was held about the need to rebuild the pump station road bridge. Council Member Turnage suggested having the North Carolina National Guard take a look at the bridge to see if they have an interest in working on a project such as this. Water Treatment Plant PROJECT FY FY FY FY FY 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Pump Station Road Bridge Rebuilt 150,000 Rehab Filter #1 60,000 Replace head works 30,000 Valves (4) Rehab Filter #2 60,000 12 Rehab Filter #3 Clarivac Upgrade Streaming Current Monitor Wastewater Treatment Plant PROJECT I FY 2010 -11 Rebuilt Sutorbilt Digester Blower & Motor Roof Replacement - Chlorine, Blower, D.A.F., & Recirculation Buildings Pickup Truck Public Works PROJECT 4x4 - Tractor with side and rear flail mowers City street signs Curb & gutter and storm drainage improvements -N. Layton Ave. service truck for water department Pay Loader for street department 0 turn riding mower for cemetery dept. Computer for City garage 10,000 60,000 18,000 FY 2010 -11 65,000 30,000 50,000 0 2,000 60,000 I 100,000 7,000 FY FY FY FY 2011 -12 2012.13 2013 -14 2014 -15 Possible Possible Possible Possible Plant Plant Plant Plant Upgrade Upgrade Upgrade Upgrade FY FY I FY FY 2011 -12 2012.13 2013 -14 2014 -15 15,000 30,000 25,000 75,000 6,000 Recreation Department Mayor Harris stated that he would like to see more maintenance at the parks and suggested more personnel if necessary. Mayor Pro Tem Robinson stated that with the current down -turn of the economy, they need to take care of the current city employees. Manager Autry stated that the current offices at Recreation have been totally upgraded by City Staff with a much more professional appearance for the public. Capital project requests: PARTF Grant — Renovation of Tyler Park to include two (2) baseball fields, two (2) T -ball fields, concession, restrooms and score area built in the center of the four fields, splash pad, shuffle board court, low impact skateboard area and an area to honor our Veterans on the old Civic Center site. — Approximate Cost $850,000 with a matching grant of $500,000 for a total project cost of $1.35 million dollars. Bathrooms /Concession stand at Tart Park — used for more than 20 years — will be necessary to address this in the future — Approximate cost to be determined. Pave area leading up to the Recreation department office entrance and add additional parking spaces — Approximate cost to be determined. Resurface tennis/basketball court area at C.B. Codrington Park — Approximate cost of $12,000. Replace 10' chain link fence that surrounds the tennis/basketball court areas at Tyler Park and C.B. Codrington Park — Approximate cost of $20,000. Mavor & Council Discussion Final Wrao -Uo Council Member Galbreath mentioned the parking lot at the pool area of Codrington Park. Also he and Mayor Harris visited the restroom facilities at Tyler Park and they need to be secured in the evenings and opened back up in the morning. Recreation Director Perry Hudson responded that the Police department locks the bathrooms in the evening and his staff opens them back up in the morning. 13 Council Member Galbreath asked Manager Autry about the terrible condition of the railroad crossings on Cumberland and on Granville Street. Mr. Autry responded that he did make contact with CSX and was advised that these crossings would be repaired, but he will follow -up. Mr. Galbreath asked about accessibility to the sidewalks for the handicapped. Mr. Autry responded he can inventory the various areas that need accessibility and make a proposal. Mayor Harris thanked Manager Autry, and the entire staff for their part in making this retreat so successful. Mr. Autry thanked City Clerk Debra West for her work in organizing the retreat and agenda. A thank -you was also acknowledged to the staff, specifically Mrs. Nancy Ezzell and Mr. Jim Smith of Campbell University, for their accommodations. With no further business to discuss, a motion was made by Council Member Billy Tart and seconded by Council Member Maness to adjourn the rngq�og ra03;�6 p.m. _ T ; - scar N. Harris RPO Mayor Attest: CAR ,. Debra G. West City Clerk