0526201053
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn continued the City Council Meeting of Tuesday, May 18, 2010,
on Wednesday, May 26, 2010 at 8:30 a.m. in the Dunn Municipal Building. Present at the continued
meeting was Mayor Oscar N. Harris, Mayor Pro Tem N. Carnell Robinson, Council Members Buddy
Maness, Bryan Galbreath, Billy Tart, and Joey Tart. Also present was City Manager Ronnie Autry,
Public Works Director Billy Addison, Finance Director Mark Stephens, Recreation Director Perry
Hudson, Chief Building Inspector Mike Blackmon, Planning Director Steven Neuschafer, Librarian
Mike Williams, Police Chief B.P. Jones, City Attorney P. Tilghman Pope, and City Clerk Debra
West.
Absent: Council Member Chuck Turnage
INVOCATION
Mayor Harris reconvened the meeting at 8:35 a.m. and gave the invocation. Afterwards, the Pledge of
Allegiance was repeated.
Onen Issues in the General Fund
FY 2010 -2011 Budeet
Establish a workshop with City Planner Steven Neuschafer to discuss housing
This will be established in the fall of the year.
Commercial Development Coordinator plan of action
The Mayor suggested they change this title to a Marketing Developer.
Flail mower
It is recommended to allocate $65,000 for installment purchase of a flail mower for Public Works.
Manager Autry stated that he is considering the option of a used mower. If a new mower is purchased, it is
recommended to finance it with the police department vehicles in the FY 10 -11 budget.
Re -visit the CPI calculated by BJRH for annual payment to the City
Re -visit the CP1 calculated on solid waste contract with Republic
Pay cash or finance roofing - City Hall Building and Public Library
Manager Autry explained that this $25,000 debt service payment for FY 10 -11 has been removed because
he is recommending to pay -off the balance out of the current FY 09 -10 budget overage. The bank is ready
to close out the loan. The Council instructed Mr. Autry to go ahead and close out the loan and then see
where the City stands before the decision is made to pay off the balance.
Skateboard Park Status
Recreation —Fees & focus placed on establishing & continuing an excellent program and maintain facilities
at an ultimate
Manager Autry reported that 50% of sports participants are from out -of -town. He recommends the out -of-
town registration fee increase from $40 to $60 and the in -town registration fee remain at $20. Mayor
Harris stated that this fee increase will put the City in line with other municipalities.
It was discussed to allocate the additional $12,000 in revenues received by raising the out -of -town
registration fees back into the recreation budget.
Allocate $5,000 to library budget for architect to design a plan for expansion
Manager Autry stated that $5,000 has been allocated. Discussion was held about the City closing the alley
beside the library. It was proposed to wait until after the architect designs the plan before deciding on the
future of the alley.
Allocate $25,000 to Community Assistance
Manager Autry stated that $25,000 has been allocated and will only be used at the Council's direction.
Mayor Harris stated that there is a request from the Howard House for $5,000 and a request by the DACC
to erect a structure along the wall on the side of the old Fisherman's Paradise Building to install
interchangeable banners. It was discussed that the DACC should fund the cost for the interchangeable
banners.
Consider COLA for employees
Manager Autry stated that a 2.5% increase was originally proposed, but after looking at the needs of the
City, this proposal has been reduced to 1.5% which equates to the same cost to the City as a one -time
bonus. Surrounding towns are proposing 2 %- 3% COLA.
Review results from health insurance
Blue Cross Blue Shield — Deductible changing from $1,000 to $5,000 and an increase in certain co -pays
would allow the City rates to be lowered by approximately 3% but it would require the City to cover the
deductible for the employees from $1,000 up to the $5,000. This could potentially save the City
approximately $50,000. This is a deductible sharing arrangement. The employee will pay $1,000
deductible and the City will pay the next $4,000. The employee will pay $1250 coinsurance and the City
will pay the next $1750. (Total paid by the employee is $2250 and the total paid by the City is $5750).
Plan proposed is an 80/20 plan instead of the current 90/10 plan. A wellness program was discussed and
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Mr. Autry informed them that an assessment can be performed by BJRH at a cost of approximately $55
(paid by the City) for each employee. It was discussed that a wellness program cannot be mandated to the
employees but incentives can be offered to increase participation.
Self- insured policies were discussed. The Council discussed the problems the State encountered with self -
insured policies.
Re -visit legal miscellaneous allocations in light of the pending lawsuit
$20,000 additional monies have been placed in this line item
Senior Center — Upgrades, purchase of equipment
$2,000 has been allocated for chairs and tables
Inspections Department
Allocated $5,000 for software — just informed that this is a requirement of the State
Placed an additional $5,000 in the demolition line item
Manager Autry has informed the Town of Angier that the City of Dunn will terminate inspection services.
The Town of Angier is now in negotiations with Harnett County or the Town of Holly Springs to provide
this service.
Enterprise Fund
Manager Autry stated that this fund is in good shape for FY 10 -11. Debt service will begin with the FY 11-
12 budget once the 8M to IOM dollar wastewater system improvements project is complete and that will be
the time for the Council to look at a possible rate increase.
The bridge replacement cost of $150,000 has been removed because a booster pumping station on Carr
Street is needed more at this time which took the monies allocated for the bridge replacement at the water
plant. The Council discussed financing the cost of the bridge in order to proceed with this needed capital
issue. It was discussed to take money from the contingency fund to help with the replacement of the bridge.
Discussion was held about projected revenues if the residential water rate is increased 2'h %. This will
generate approximately $98,000 additional revenue in the enterprise fund. It was discussed that it is better
to implement a gradual rate increase to meet the upcoming debt service obligation for this project. Mayor
Harris asked the Council for their feed -back about a proposed 2 V2% rate increase.
The Council discussed that two rate increases were implemented two years ago to meet the requirements of �^^�
the CWMTF grant. They discussed the current economic environment and how it affects those that are on "1
fixed incomes. Discussion was held about not putting the burden of an increase on the minimum water user
since most of these citizens are elderly and on a fixed - income.
10:15 am —15 minute session break
Finance Director Stephens stated that 35% of the customer base is made up of minimum users; 2,000
gallons is the minimum use.
Discussion was held to only increase the sewer rates.
The Council directed Manager Autry to propose a 3% sewer rate adjustment and to propose a water rate
increase that will not affect the minimum user.
FY 2010 -2011
Fee Schedule
Certain fee increases were presented to the Council.
Recreation
Registration Fees
Fees were proposed at $20.00 for in -town participants and $60.00 for out -of -town participants.
City -Owned
Buildings
Mayor Pro Tem Robinson asked about the process for inspecting City -Owned buildings. Manager Autry
stated that he will have Chief Building Inspector Blackmon conduct a City -wide inspection of buildings
owned by the City.
Closed Session
10:54 am Motion by Mayor Pro Tem Robinson and seconded by Council Member Joey Tart to enter closed
session to consult with the city attorney to protect the attorney client privilege.
Closed session adjourned at 11:30 a.m.
Motion by Council Member Joey Tart and seconded by Council Member Billy Tart to approve the minutes
of the closed session as recorded by City Attorney Pope. Motion unanimously approved.
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Action of Closed Session
City Attorney Pope explained the terms of a proposed contract. URS (Utilities Reduction Specialists, Inc.)
will come in to audit the past twelve (12) months City of Dunn water plant energy bills in an effort to
discover errors relevant to the classification of the City water plant for sales tax purposes and they will
undertake to have that reclassified as a manufacturer and process all paperwork in order to get that
accomplished. When and if the City of Dunn receives a refund from the Department of Revenue or a credit
from Progress Energy for any such refunds; at that time the City would compensate URS 50% of that
amount plus an additional $1500.00. The projected refund is a little over $6500 so of that amount, only
when the City receives it, will the City pay 50% to URS plus $1500 so it is a net no cost to the City and the
City would be under no obligation to compensate URS for any future savings that the sales tax
reclassification would save the City. Attorney Pope stated that he and the City Manager are recommending
that the Council approve this proposed contract.
Motion by Council Member Billy Tart, and seconded by Council Member Joey Tart to authorize the City
Manager to execute the contract on behalf of the City. Motion unanimously approved. A copy of the
contract between the City of Dunn and URS is incorporated into these minutes as Attachment #1.
With no further business to discuss, a motion was made by Council Member Joey Tart and seconded by
Council Member Billy Tart to adjourn the meeting at 11:42 a.m. Motion unanimously approved.
Attest:
Debra G. West
City Clerk
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Osc N. Harris �
Mayor