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08102010M .- MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Regular Meeting on Tuesday, August 10, 2010, at 7:00 p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tem N. Carnell Robinson, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Chuck Turnage and Joey Tart. Also present was City Manager Ronnie Autry, Finance Director Mark Stephens, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Police Chief B.P. Jones, Planning Director Steven Neuschafer, Chief Building Inspector Mike Blackmon, Librarian Mike Williams, City Engineer Ed Powell, City Attorney P. Tilghman Pope, City Clerk Debra West, and Daily Record Reporter Reece Murphy. INVOCATION Mayor Harris opened the meeting at 7:00 p.m. and asked Police Chaplain Reverend Dennis Manuel to give the invocation. Afterwards, the Pledge of Allegiance was repeated. Mayor Harris recognized special guests in the audience including former elected officials of the City of Dunn, officials representing the Dunn Area Chamber of Commerce, Dunn Area Tourism, Downtown Dunn Development Corporation, and USDA. He pointed out that this is a historical meeting for the City of Dunn. AGENDA ADJUSTMENT AND APPROVAL Motion by Mayor Pro Tern Robinson and seconded by Council Member Billy Tart to adopt the August 10, 2010 meeting agenda with changes, if any, as listed below. Items Added to the Agenda: • none Agenda Items Removed: • none Motion unanimously approved. PRESENTATION Proclamation Presentation - Ron Robinson Mayor Harris and Mayor Pro Tern Robinson presented Dunn citizen Ron Robinson with a proclamation recognizing his heroic actions on July 8, 2010. A copy of Proclamation (P2010 -16) recognizing Ron Robinson is incorporated into these minutes as Attachment #1. Presentation of Building Level III Certificate - Code Enforcement Officer Steven King Mayor Harris, City Manager Autry and Chief Building Inspector Mike Blackmon presented Code Enforcement Officer Steven King with the fifth Level III Building Standard Certificates in all five building disciplines (building, electrical, plumbing, mechanical and fire prevention). He pointed out that out of approximately 4000 inspectors in the State of North Carolina, less than 220 possess Level III certificates in five (5) trades. He added that Mr. King is the first City of Dunn inspector to accomplish this level. Mr. Blackmon also presented him with a plaque recognizing this distinguished accomplishment. PUBLIC COMMENT PERIOD Mayor Harris opened the floor for a (30) minute public comment period. Hearing no comments, the public comment period was closed. PUBLIC HEARINGS USDA Loan Application Downtown Dunn Revitalization Project Mayor Harris stated that the public has been notified that the Dunn City Council will receive comments concerning the City's desire to secure a loan from the United States Department of Agriculture, Rural Development to obtain sufficient funds to perform the Downtown Dunn Revitalization Project. He stated that the public hearing is an opportunity for the Council to hear comments and opinions from the public to include any party for or against the proposed loan application. The public hearing was duly advertised on July 27, 2010. 67 Mayor Harris asked if there was anyone who wished to speak for or against this loan application. Mr. Steven Neuschafer, City Planner and Marketing Director, presented a brief overview of the project from inception to the present. He stated that in 2006, the City of Dunn established the Municipal Service District which is composed of a 28 block area. All properties contained within the Municipal Service District is taxing itself .12 per $100 valuation in addition to the .48 cents tax. Inside the Municipal Service District, a Dunn Commercial Historic District has been established on the national registry. He presented a slide presentation of the downtown district and how the historic boundary fits within the Municipal Service District. The First Citizens Bank structure, when constructed, was a model for the future downtown enhancements. He presented the project timeline with a projection of completion by fall/winter of 2011. The first installment payment for the loan would begin FY 2013 -2014 with an estimated annual debt service payment of $167,000 with a 25 year pay -back at 4 %. He presented a graph illustrating the tax growth and payment schedule for the enhancements. The DDDC will provide 85% of the municipal tax district revenue or a minimum of $35,000 per fiscal year toward the debt service, graduating each year based on growth and revaluation of the Municipal Service District. He added that the Tourism Authority will also share in the debt service. Mr. Ed Powell and Michael Goliber, City Engineers of Davis - Martin- Powell & Associates, Inc., provided a description of the project and cost projections. The target area of the Municipal Service District has been under consideration for enhancement and redevelopment for many years. The City is at the point of being ready to bid this project this year. They provided plans of the target area. Mr. Goliber stated that this is a proud moment for the City of Dunn. A majority of the sewer is presently being replaced in the downtown area. The next phase of the project will entail reinforcing the water distribution system in the downtown area which is on the agenda tonight for bid award. He gave a brief summary of the various phases of upgrades including the enhancement of streets, sidewalk improvements, brick pavers, new lighting/signalization, power and communication lines moved from above ground to below ground. All water and sewer connections will be improved and renovated. Mr. Powell provided the following description and cost analysis for the project: ➢ Street & sidewalk improvements (brick pavers, curb & gutter, new asphalt) @ $1,385,000.00 ➢ Water system enhancements (adequate fire protection flow) @ $376,000.00 ➢ Sewer rehabilitation (replace all deteriorated sewer lines in the downtown area which will eliminate infiltration) @ $594,000.00 ➢ New traffic signal system @ $460,000.00 ➢ Overhead power will be placed underground @ $800,000.00 ➢ Communications and data placed underground @ $370,000.00 ➢ Total Project Cost - $3,985,000.00 Mr. Powell stated that the total project cost is being paid from a combination of grants and low interest loans secured by the City. He added that the water system improvements are being funded by an appropriation from the water /sewer fund balance. He further added that tonight, the City is looking at the USDA Rural Development to provide funding in the amount of $3,015,000.00 in the form of loan/grants to provide for funding the remainder of the project. Mr. Powell explained that dependent upon bids received for this project, it may expand or decrease the area of this project. Mr. Dal Snipes, former Mayor of the City of Dunn and present Chairman of the Downtown Dunn Development Corporation (DDDC), gave a position statement on behalf of the DDDC. This project is about future generations. He recognized the DDDC committee members present in the audience. He explained that the Dunn Area Chamber of Commerce developed a Downtown Dunn Revitalization Committee in 2002 and from that inception, it developed into the DDDC. He brought up the ideas which were discussed back in 2002 and how so many of these projects have already been accomplished. He spoke of tax credits available with the Historic designation. The DDDC officially started in late 2006 /early 2007. They are a 501(c) (3) organization. With the formation of the Municipal Service District (MSD), they agreed to implement a .12 cents tax on top of the .48 cents tax to start building reserves to assist the City with this project when it came time to do it. The DDDC has committed to reinvest 85% of the income or $35,000 annually, whichever is greater, toward the debt service for this project. He explained that when the appropriate time comes, the DDDC will ask that the sunset provision which was implemented for seven (7) years, be removed to allow this additional tax to go forward. He stated that when the Mayor and City Attorney deem it the appropriate time, DDDC will provide the City with a written document requesting the sunset provision be removed. He spoke of the positives from downtown revitalization. This will market the City of Dunn and will give the citizens a better place on a daily basis. He asked the Council to strongly consider the generous loan/grant offer by the USDA. Mr. Bill Lassiter, President of the Dunn Area Chamber of Commerce (DACC), stated that he has been a chamber member for 28 years and stated that it has been his privilege to serve as an officer of the Chamber. He stated that it is obvious that the DACC has been a strong proponent of downtown revitalization for a number of years. He spoke of the various functions of the DACC which brings groups to the downtown area. He stated that the Chamber is proud to be part of the efforts which brought the City to this point and they look forward to working with the City in the great growth of the Downtown. Mr. Billy Ray Godwin thanked the Council for giving Dunn the opportunity to undertake a long awaited and long needed project that will significantly enhance the appearance of the City. He owns two properties inside the Central Business District and four properties outside the District. He asked the Council to consider the obvious. This project will act as a multiplier to energize the momentum presently seen downtown. He spoke of improvements in the downtown district that have already been accomplished by private investors who want to be in Dunn as well as the First Citizens Bank project. He stated that Dunn is M sustaining itself at the present and what is good for downtown is good for the entire community. He spoke of the enhancements /widening of Highway 421 that has benefited all the citizens of Dunn. He resides on Pope Street; however, new pavement through -out town benefits him, because it makes the community a better place to live. Accomplishing these improvements will send a message that the citizens of Dunn care about the appearance of Dunn and they have the desire to move forward. He urged the Mayor and Council to keep this momentum alive by moving forward to vote in favor of this project. Mr. T.C. Godwin, representing the private sector, spoke in support of this project. In days of old, downtown was vibrant'and people felt good walking down the sidewalk. He does not personally own property in the downtown district but enhancements to downtown will benefit the entire City. Mr. Bill Cunningham, Executive Director of Habitat for Humanity, stated that he represents the citizens of Dunn. He spoke that in days of old, downtown had three theaters. Presently, Dunn does not have a theater. There is a need for enhancements to Downtown Dunn to bring people downtown to eat, shop and possibly build a theater in town. Hearing no further comments, Mayor Harris closed the public hearing. Demolition of House 415 S. Magnolia Avenue Pin #1516 -65- 4531.000 Mayor Harris stated that the public has been notified that oral and written comments will be heard and received concerning the demolition of the dwelling owned by Fredrick V. Williams and located at 415 S. Magnolia Avenue. The public hearing was duly advertised on July 27, 2010 and August 3, 2010. Mayor Harris asked if there was anyone who wished to speak for or against this demolition. Hearing no comments, Mayor Harris closed the public hearings at 8:08 pm and reconvened the regular meeting. CONSENT ITEMS Minutes — Council considered approval of minutes of the July 13, 2010 Council meeting. Amended Capital Project Ordinance — Council considered approval of an amended capital project ordinance for W WTP Flow Equalization/Pumping System Renovations and Sewer Rehabilitation to reflect updated appropriations and revenues for the 2009 Wastewater System Improvements project. A copy of Amended Capital Project Ordinance (02010 -10) is incorporated into these minutes as Attachment #2. Mayor Harris asked Manager Autry to explain the amended ordinance. He stated that when the initial scope of the work was projected, Ordinance 02008 -02 was adopted in January, 2008. Since the project has been bid, the scope of the project has increased to reflect the proposed amended project ordinance in an amount of $9,048,050.00. Motion by Council Member Joey Tart and seconded by Council Member Galbreath to approve all consent items. Motion unanimously approved. ITEMS FOR DECISION Consideration to Adopt a Resolution and Accept the Letter of Conditions for USDA Loan Application — Downtown Dunn Revitalization Project The Council is being asked to accept a loan offer not to exceed $2,589,000 and a grant not to exceed $400,000 from the USDA for the purpose of performing the Downtown Dunn Revitalization Project. The debt service payment will be shared with the Downtown Dunn Development Corporation. USDA Representative Garland Burnette stepped forward to address the key items within the Letter of Conditions. He stated that they requested funding on May 24" and are still awaiting confirmation of the requested amount from the national office. He explained that there is a possibility that the loan offer /grant amounts could change. There is a possibility that the national office could advise that the grant amount is eliminated. The current interest rate for the loan offer is 4% for a term of 25 years. Mayor Harris stated that the process by which they derived at this position started approximately six years ago. He expressed his appreciation to the downtown merchants for their patience during the sewer rehabilitation in the downtown district. He thanked all the volunteers which work for the betterment of Dunn and the privilege of sitting as Mayor during this project. He spoke of the various sources of funding which will be shared by the DDDC and the Dunn Area Tourism Authority toward the City of Dunn's debt service payment for this project. Motion by Council Member Turnage and seconded by Council Member Galbreath to adopt the Resolution accepting the Letter of Conditions from the USDA loan application for the Downtown Dunn Revitalization project, service the debt between the City of Dunn, DDDC and the Dunn Area Tourism Authority and M authorize the Mayor to execute documents associated with the USDA loan application. Motion unanimously approved. A copy of Resolution (R2010 -16) accepting the conditions set forth in the Letter of Conditions and authorizing the Mayor and Clerk to execute all forms necessary to obtain a USDA loan and grant is incorporated into these minutes as Attachment #3. 8:40 pm —Mayor Harris called for a 5 minute recess. Consideration of Ordinance to Demolish House 415 S. Magnolia Avenue Pin #1516 -65- 4531.000 Chief Building Inspector Blackmon conducted an inspection at 415 S. Magnolia Avenue and based upon his observations, the structure failed to comply with the minimum standards of fitness established by the /" 1 City of Dunn MHC. Motion by Council Member Galbreath and seconded by Council Member Turnage to adopt the ordinance directing the Building Inspector to proceed with the demolition of the dwelling located at 415 S. Magnolia Avenue. Motion unanimously approved. A copy of Ordinance (02010 -11) to demolish 415 S. Magnolia Avenue is incorporated into these minutes as Attachment #4. For a point of clarification, City Attorney Pope stated that this property is being condemned under the unsafe buildings condemned statute rather than the minimum housing code and that is consistent with the process that the Building Inspector went through and consistent with the ordinance before the Council. Award Bid 2010 Downtown Area Water System Improvements Manager Autry stated that informal bids were received and opened on Thursday, July 15, 2010 at 2:00 pm for the project 2010 Downtown Area Water System Improvements. The following bids were received: Sandy's Hauling and Backhoe Service, Inc. Roseboro, NC $284,863.48 H.G. Reynolds Co. Henderson, NC $562,543.00 The City's engineering firm, Davis - Martin- Powell & Associates has evaluated the bids and they recommend bid award be made to the low bidder, Sandy's Hauling and Backhoe Service, Inc. Manager Autry explained that the areas affected by the upgrade /replacement lines are as follows: ➢ 12" line installed on Wilson Avenue from Cumberland Street to Harnett Street to reinforce all fire protection in the downtown area. ➢ Old 4" cast iron line on Broad Street from Clinton Avenue to Elm Avenue will be replaced prior to the Downtown Revitalization Project. Motion by Council Member Joey Tart and seconded by Council Member Billy Tart to award bid to Sandy's Hauling and Backhoe Service for 2010 Downtown Area Water System Improvements and approve Budget Amendment #1. Motion unanimously approved. A copy of BA #1 is incorporated into these minutes as Attachment #5. Board Appointment Planning Board An application to serve on the Planning Board has been submitted by Mrs. Patsy Powell, 99 Pecan Lane, Dunn. This is an in -town vacancy previously held by Mr. Rick Lashmit. Term of appointment will expire June 30, 2013. Motion by Council Member Turnage and seconded by Council Member Billy Tart to appoint Mrs. Patsy Powell to the Planning Board with a term ending June 30, 2013. Motion unanimously approved. Temporary Blocking of Street for Historical Marker Dedication Ceremony of G.B. Cashwell — S. Wilson Ave. from Cumberland St. to Pope St. A request has been received from John A. Wilkins, Jr., International Overseer of the Church of God of N.C. to close S. Wilson Avenue from Cumberland Street to Pope Street on Friday, August 27, 2010 from 9:00 am until 11:30 am for the purpose of holding a Historical Marker Dedication Ceremony honoring G.B. Cashwell. Motion by Mayor Pro Tem. Robinson and seconded by Council Member Galbreath to approve the temporary street closing as requested by the Church of God of NC. Motion unanimously approved. Temporary Blocking of Street E. Harnett Street from N. Lee Ave. to N. Sampson Ave. 70 A request has been received from Felica Blue, to close E. Harnett Street from N. Lee Avenue to N. Sampson Avenue on Saturday, August 14, 2010 from 2:30 pm until 9:00 pm for the purpose of holding a family reunion. Motion by Mayor Pro Tem Robinson and seconded by Council Member Turnage to approve the temporary street closing as requested on E. Harnett Street from N. Lee to N. Sampson Ave. Motion unanimously approved. ITEMS FOR DISCUSSION AND /OR DECISION Financial Report Finance Director Mark Stephens provided the following financial update to the Council: • The City as of June 30, 2010 had $2,799,388 cash in the General Fund and $2,310,000 cash in the Water /Sewer Fund. • Investment earnings are in the .35% -.20% range. • Building Permit Fees were $80,883 or 124.44% of budget. The City should be at 100.00% of budget. • The Sales Tax Revenue for June was $1,043,384 or 73.48% of budget. The City should be at 83.33% of budget. The City is $139,870 behind in sales tax revenues. • Water and sewer revenues were $4.OM or 98.91% of budget. The City should be at 100.00% of budget. • Fuel cost per gallon was $2.16 in June. • Property taxes collected as of June were 101.95% of budget. Same period last year, the City had collected 100.09% of budget. • Expenditures were 95.46% of budget in the general fund and 92.56% in the water /sewer fund. The benchmark for this period is 100.00 %. ADMINISTRATIVE REPORTS Motion by Council Member Maness and seconded by Council Member Joey Tart to approve the Administrative Reports. Motion unanimously approved. ANNOUNCEMENTS The following announcements and /or comments were made. Mayor Harris: ➢ The Harnett Local Government Association will meet on Monday, August 23, 2010 at 6:30 pm in the Common Area meeting room, 311 Cornelius Harnett Blvd. in Lillington. Representatives from Campbell University will be in attendance. ➢ City offices will be closed Monday, September 6, 2010 in observance of Labor Day. ➢ The next City Council meeting is scheduled for Tuesday, September 14, 2010 at 7:00 pm. ➢ He requested that the Council review the wayfarer signs placement through -out the City as proposed by Manager Autry. ➢ Please contact Melissa Dudley in the Administration office if any Council member plans to attend the 2010 NCLM Annual Conference. Manager Autry: ➢ Effective with the July 1, 2010 fee schedule, the Council adopted a mandatory fire line fee for businesses. Approximately fifty businesses were impacted by the fee. Council Member Galbreath: ➢ Thanked Manager Autry and Finance Director Stephens for their promptness in responding to business owners who contacted him with concerns about the fire line fee charge. With no further business to discuss, a motion was made by Council Member Turnage and seconded by Council Member Joey Tart to adjourn the meeting at 9:05 p.m. Motion unanimously approved. CITY OF !w ....... G,, �=' O car N. Harris GORPOg Z Mayor Attest: 2� ` Debra G. West City Clerk