01182011102
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Regular Meeting on Tuesday, January 18, 2011, at 7:00
p.m, in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tem N.
Cornell Robinson, Council Members Buddy Maness, Bryan Galbreath, Billy Tart 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 &
Marketing Director Steven Neuschafer, Recreation Director Perry Hudson, Librarian Mike
Williams, City Engineers Michael Goliber and Ed Powell, City Attorney P. Tilghman Pope, City
Clerk Debra West, and Daily Record Reporter Brian Haney.
\ — / Absent: Council Member Chuck Turnage
INVOCATION
Mayor Harris opened the meeting at 7:00 p.m. and asked Police Chaplain Reverend Roy Johnson to give
the invocation. Afterwards, the Pledge of Allegiance was repeated.
AGENDA AD.IUSTMENT AND APPROVAL
Motion by Mayor Pro Tom Robinson and seconded by Council Member Galbreath to adopt the January 18,
2011 meeting agenda with changes, if any, as listed below.
Items Added to the Agenda:
• none
Agenda Items Removed:
• none
Motion unanimously approved.
Retirement Resolution
David Whittenton
Mayor Harris, City Manager Ronnie Autry and Police Chief B.P. Jones presented a retirement resolution to
David Whittenton, in recognition and appreciation of his 23 years of service to the City of Dunn Police
Department. A copy of Resolution (R2011 -01) recognizing David Whittenton is incorporated into these
minutes as Attachment #1.
Retirement Resolution
Richard West
Mayor Harris, City Manager Ronnie Autry and Public Utilities Director Dean Gaster presented a retirement
resolution to Richard "Rick" West, in recognition and appreciation of more than 21 years of service to the
City of Dunn Public Works DepartmentfWater Treatment Plant. A copy of Resolution (R2011 -02)
recognizing Rick West is incorporated into these minutes as Attachment #2.
Presentation of Advanced Certification
Lt. Angie Hinson
Police Chief Jones and Mayor Harris presented the Criminal Justice Education and Training Standards
Commission Advanced Law Enforcement Certificate to Lt. Angie Hinson.
PUBLIC COMMENT PERIOD
Mayor Harris opened the floor for a (30) minute public comment period.
Hearing no comments, the public comment period was closed.
Mayor Harris opened public hearings at 7:19 p.m.
PUBLIC HEARINGS
Adoption of Hazard Mitigation Plan
Mayor Harris stated that the public has been notified that oral and written comments will be heard and
received concerning the request by the City of Dunn Planning Department to approve the Harnett County
Hazard Mitigation Plan, which includes the City of Dunn, Lillington, Coats, Angier and Erwin.
He added that this plan identifies areas of communities that are vulnerable and proposes preventative
measures to reduce the risk of injury or death to the citizens and to reduce risk of damage to property due to
Federal or State declared disasters.
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He further added that the adoption of a Hazard Mitigation Plan is required to obtain Hazard Mitigation
funding and is tied to Federal and State disaster funding.
The public hearing was duly advertised on December 31, 2010.
Mayor Harris asked if there was anyone present to speak for or against the Hazard Mitigation Plan.
Hearing none, Mayor Harris closed public hearings at 7:20 pm.
Minutes — Council considered approval of minutes of the December 14, 2010 Council meeting.
Tax Releases/Refunds — Council considered approval of Tax Releases /Refunds #156 - #165. Copies of Tax
Releases/Refunds are filed in the office of the Tax Collector.
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 (R2011 -03) is
incorporated into these minutes as Attachment #3.
Motion by Council Member Maness and seconded by Council Member Joey Tart to approve all consent
items. Motion unanimously approved.
ITEMS FOR DECISION
Consideration to Adopt an
Amended Resolution and Accept the
Amended Letter of Conditions for
USDA Loan Application
Downtown Dunn Revitalization Project
The Council is being asked to accept a loan offer not to exceed $2,989,000 from the USDA for the purpose
of performing the Downtown Dunn Revitalization Project.
The Letter of Conditions dated August 10, 2010 has been amended to modify the second paragraph to
increase the loan extended by USDA, Rural Development from $2,589,000 to $2,989,000 and to remove
the grant of $400,000.
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 he addressed the City Council on August 10, 2010 when he delivered a Letter of
Conditions for Rural Development to provide the benefit of funding for the City of Dunn Downtown
Revitalization Project. The Letter of Conditions at that time specified a loan in the amount of $2,589,000 at
an interest rate of 4 % over a term of 25 years and also provided for a $400,000 grant. At that time the
application had been submitted to the national office for review and consideration but with too many
projects and not enough funds, the project was not funded at that time.
Mr. Burnette stated that the funds are now obligated for a loan in the amount of $2,989,000, but
unfortunately they were not able to obtain the $400,000 grant. The amended Letter of Conditions provides
a lower interest rate of 3.75% as opposed to 4.00 %. These funds are not tied to the American Recovery and
Reinvestment Act and therefore the City will not be required to do the additional reporting associated with
(ARRA). In addition, the project will not be subject to the Davis Bacon Wage requirements or the Buy
American Provisions. The contractor for the project will be pleased that they will not have to comply with
these provisions. Funds for this project are already in hand.
Mr. Brunette asked that the Council approve the resolution accepting the Amended Letter of Conditions.
Motion by Council Member Maness and seconded by Council Member Billy Tart to adopt the Amended
Resolution accepting the Amended Letter of Conditions from USDA for the Downtown Dunn
Revitalization project and to execute documents associated with the USDA loan application. Motion
unanimously approved. A copy of Resolution (R2011 -04) accepting the conditions set forth in the
Amended Letter of Conditions and authorizing the Mayor and Clerk to execute all forms necessary to
obtain a USDA loan is incorporated into these minutes as Attachment #4. �.
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Adoption of
Hazard Mitigation Plan
This is a request for the Council to adopt the Harnett County Hazard Mitigation Plan, which includes the
City of Dunn, Lillington, Coats, Angier and Erwin.
This plan identifies areas of communities that are vulnerable and proposes preventative measures to reduce
the risk of injury or death to the citizens and to reduce risk of damage to property due to Federal or State
declared disasters.
The adoption of a Hazard Mitigation Plan is required to obtain Hazard Mitigation funding and is tied to
Federal and State disaster funding.
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Motion by Mayor Pro Tern. Robinson and seconded by Council Member Joey Tart to adopt the Harnett
County Hazard Mitigation Plan. Motion unanimously approved. A copy of Resolution (R2011 -05)
adopting the Harnett County Hazard Mitigation Plan is incorporated into these minutes as Attachment #5.
Adoption of
2010 Tyler Park Master Plan
This is a request for the Council to adopt a Master Plan for Tyler Park including upgrades and
enhancements to the park. This Master Plan is a necessary component in obtaining funding for a Parks and
Recreation Trust Fund (PARTF) Grant.
Motion by Council Member Galbreath and seconded by Council Member Joey Tart to adopt the 2010 Tyler
Park Master Plan. Motion unanimously approved.
Adoption of
2010 Comprehensive System -wide
Parks and Recreation Plan
This is a request for the Council to adopt a new Comprehensive System -wide Parks and Recreation Plan to
analyze the recreational needs at each of three parks owned by the City of Dunn.
This System -wide Plan is a necessary component in obtaining funding for a Parks and Recreation Trust
Fund (PARTF) Grant.
A complete Recreation Facilities Analysis Study was completed by Ballard & King and Associates in 1995.
Davis - Martin- Powell & Associates updated the 1995 study in 2000.
Manager Autry stated that recreational surveys were distributed to citizens via water bills. The results of
those surveys were incorporated into the master plan.
Motion by Council Member Joey Tart and seconded by Council Member Maness to adopt the 2010
Comprehensive System -wide Parks and Recreation Plan. Motion unanimously approved.
Authorizing Resolution to File an Application
for a Parks and Recreation Trust Fund Grant
Manager Autry explained that the Council is being asked to approve a resolution authorizing the Mayor to
/ execute and file an application on behalf of the City of Dunn with the State of North Carolina for a Parks
and Recreation Trust Fund (PARTF) Grant in the amount of $500,000 for a total project cost of
approximately $2.2 million to upgrade the facilities and recreation programs at Tyler Park. The increase in
project cost compared to the prior application is because of the addition of a Miracle Field.
Park improvements include three Little League Baseball fields, a Miracle Field, shuffle board courts, two
playground areas and a splash pad. In addition, a Veteran's Memorial Garden is proposed on the former
civic center site. The three (3) existing tennis courts will remain and be resurfaced. A connection to the
Dunn -Erwin Trail will be provided adjacent to Harnett Primary School. Sidewalks will be utilized to
interconnect to the trail, a cross -walk will be painted and signage installed improving visibility of the trail
access. The access crosswalk will be located at the Northeast corner of the park.
This grant was applied for in January, 2009 and January, 2010 but was not awarded. With the recent
completion of the 2010 Comprehensive System -wide Parks and Recreation Plan and Tyler Park Master
Plan, the City is in a better position to acquire the necessary points to receive this grant.
As part of the PARTF grant application, the City of Dunn will certify the availability of the remaining
funds of $1.75M required for this project.
Motion by Council Member Maness and seconded by Mayor Pro Tem Robinson to approve the Resolution
Authorizing the City of Dunn to file an application for a PARTF Grant. Motion unanimously approved.
A copy of Resolution (R2011 -06) Authorizing the PARTF application is incorporated into these minutes as
Attachment #6.
Set Budget
Retreat Date FY 11 -12
Manager Autry stated that the budget retreat for Fiscal Year 2011 -12 is scheduled for Friday, February 4,
2011 in the visitor center (classroom) of Raven Rock State Park in Lillington.
This budge retreat will prioritize goals of the City and how to accomplish them for FY 11 -12.
Motion by Council Member Galbreath and seconded by Council Member Joey Tart to set the budget retreat
date for February 4, 2011 beginning at 8:45 am. Motion unanimously approved.
Town of Benson
Water Purchase Contract
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Manager Autry stated that the Council is being asked to enter into a new ten (10) year water purchase
contract with the Town of Benson.
On January 9, 1996, the Town of Benson entered into a fifteen (15) year contract agreement to purchase
water from the City of Dunn. The new revised contract includes a term of ten (10) years from the date of
execution.
Motion by Council Member Billy Tart and seconded by Council Member Maness to adopt the ten (10) year
water purchase contract agreement between the City of Dunn and the Town of Benson. Motion
unanimously approved. A copy of the contract agreement is incorporated into these minutes as
Attachment #7.
Consideration of Resolution
Directing the Clerk to
Investigate Voluntary Annexation
Petition ANX -01 -11
East Pointe Subdivision (US 421)
Manager Autry stated that a petition has been received from Granville Tilghman, Johnson & Elaine
Tilghman and Mary T. Pope for the contiguous annexation of approximately 41.09 acres, more or less,
located between the newly erected NC 55 Highway and US 421, west of the East Pointe Subdivision.
Motion by Council Member Galbreath and seconded by Council Member Maness to adopt the Resolution
Directing the Clerk to Investigate a Voluntary Annexation Petition ANX- 01 -11. Motion unanimously
approved. A copy of Resolution (R2011 -07) Directing the Clerk to Investigate ANX -01 -11 petition is
incorporated into these minutes as Attachment #8.
Municipal Agreement with
NCDOT for Pedestrian
Improvements along US 301
(N. Clinton Ave.) from US 421 to
Granville Street
The Council is being asked to authorize the Municipal Agreement between NCDOT and the City of Dunn
to cover the construction of pedestrian facilities from Cumberland Street to Granville Street along Clinton
Avenue. These improvements will provide for safe pedestrian access along Clinton Avenue.
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This project was included in a larger project which was submitted for a 2009 Safe Routes to School grant
which was not funded. In an effort to find other methods to fund this project, a request was sent to the
Division Engineer which has resulted in this award from our DOT Board Member Gary Ciccone. This
project is a highly rated project ( 05) in the City of Dunn Pedestrian Plan. The DOT has agreed to approve
$140,000 towards the project.
This project can be budgeted and constructed in the FY 2011 -2012 budget with preliminary study work and
bidding completed during the last quarter of the current fiscal year. Total cost to the City (including force
account) should not exceed $45,000.
Mayor Harris asked that the Council defer this item of business until the next City Council meeting.
Council consensus was to defer.
Harnett Health System
Memorandum of Understanding
Implementation
City Attorney Pope stated that the previous City Council entered into a Memorandum of Understanding
(MOU) with Harnett County, Betsy Johnson Regional Hospital (BJRH) and Wake Med concerning the
formation of Harnett Health Systems. What was contemplated by the MOU was that in the event that a
certificate of need was obtained to build a second hospital in the central part of the Harnett County and that
funding was secured in order to do that, that there would be a transfer of the govemance of BJRH which
would merge into and become Harnett Health Systems. The method by which the board governs that
system would change. Presently, the Hospital Authority is appointed by the Mayor from nominees of the
Hospital Authority and the Hospital Board of Trustees is appointed by the City Council from nominees
that come from the Board of Trustees and that combined group forms one Board of Trustees that manages
the hospital. Under the new Harnett Health System, the County would appoint seven (7) members of the
board from nominees that are submitted by the board and six (6) members would be elected by the board
themselves from within that group. The initial board of Harnett Health System was submitted by a
nominating committee to Harnett County so the initial members of this board have been appointed.
Attorney Pope stated that the County and Betsy Johnson Regional Hospital have already approved the
terms of the MOU and now the City of Dunn is being asked to implement the terms of the MOU.
Mayor Harris stated that the City retained the following three (3) provisions in the MOU:
• The City retained the reversionary clause in the event something happened to Harnett Health
System. `
• The City limited the debt that Harnett Health System could accrue against the property.
• Harnett Health System will continue to pay an annual fee to the City in lieu of taxes. In 2011, this
fee equated to .049 of the City tax rate.
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Motion by Mayor Pro Tem Robinson and seconded by Council Member Joey Tart to adopt the Resolution
implementing the terms of the MOU. Motion unanimously approved. A copy of Resolution (R2011 -08)
implementing the terms of the MOU is incorporated into these minutes as Attachment #9.
Consideration of Contract between
City of Dunn and City of Dunn
ABC Board for ABC Law
Enforcement Services
City Attorney Pope stated that this contract simply documents what has been an ongoing relationship
between the ABC Board and the City of Dunn whereby they make an annual payment to the City in
v / exchange for law enforcement services that the City provides to the ABC Board. The State ABC Board
requested of the local board that it be documented in an actual contract as there is a state statute that
governs that. He prepared the contract before the Council tonight and it has been approved by the local
ABC Board.
Motion by Council Member Maness and seconded by Council Member Billy Tart to adopt the contract
between the City of Dunn and City of Dunn ABC Board for ABC Law Enforcement Services. Motion
unanimously approved. A copy of the contract for ABC Law Enforcement Services is incorporated into
these minutes as Attachment #10.
ITEMS FOR DISCUSSION
AND /OR DECISION
Financial Report
Finance Director Mark Stephens provided the following financial report for the period ending November
30,2010:
• As of November 30, 2010, the City had $2.1M in cash in the General Fund and $2.5M in the
Water -Sewer Fund. In November of 2009 the City had $23M in the General Fund and $2.3M in
the Water and Sewer Fund. The difference in the 2010 General Fund balance as compared to
2009 is due to the elimination of the tax discount.
• Investment earnings are in the .35 % -.20% range. This is within the budgeted range.
• Building permit fees were $31,338 or 44.77% of budget. The City should be at 41.67% of budget.
• Water and sewer revenues were $1.9M or 46.64% of budget. The City should be at 41.67% of
budget.
• Fuel cost per gallon was $2.37 in November. The City budgeted $2.25 a gallon.
• Sales tax distribution was $415,798 or 30.80% of budget. The City is $34,155 below the budgeted
amount. Same time period last year the City was $54,954 below budget.
• Expenditures were 38.92% of budget in the General Fund and 37.15% of budget in the Water and
Sewer fund. The benchmark for this period is 41.67% of budget.
Motion by Council Member Joey Tart and seconded by Council Member Billy Tart to accept the Financial
Report. Motion unanimously approved.
ADMINISTRATIVE REPORTS
Motion by Council Member Galbreath 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:
➢
He was privileged to attend the Martin Luther King, Jr. Breakfast and Parade.
➢
DACC Annual Chamber Banquet will be held at the Dunn Shrine Center January 20, 2011 at 6:00
pm.
➢
Mid - Carolina Council of Governments Annual Dinner Meeting will be held on Thursday, January
27 at 6:00 pm — Sampson County Expo Center.
➢
The next City Council meeting is scheduled for Tuesday, February 8, 2011 at 7:00 pm.
➢
Erwin Chamber Banquet will be held on Thursday, January 27" at 6:30 pm - Indigo Room in
Erwin.
➢
He thanked City Engineers Ed Powell and Michael Goliber for their work in preparing for the
Downtown Revitalization and PARTF projects.
Mayor Pro Tem Robinson:
➢ He enjoyed the Martin Luther King, Jr. activities and he thanked the Harnett County MLK
Commemorative Committee for giving him the honor to serve as Grand Marshall of the Martin
Luther King, Jr. Parade.
Manager Autry:
➢ Reminded the Mayor and Council that NCDOT I -95 corridor planning and finance study
committee will be holding a meeting in the courtroom from 9:00 — 11:00 ;;;on Monday, January
24, 2011 for elected officials.
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With no further business to discuss, a motion was made by Council Member Joey Tart and seconded by
Council Member Maness to adjourn the meeting at 8:02 p.m. Motion unanimously approved.
Attest: n
a. 0.
Debra G. West
City Clerk
NO CITY per''
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V
Oscar N. Harris
Mayor