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03012013291 MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Budget Retreat/Planning Session on Friday, March 1, 2013, from 8:30 a.m. -4:00 p.m. at the Campbell University Football Field House, Buies Creek, NC. Council Present: Mayor Oscar N. Harris, Mayor Pro -Tem Bryan Galbreath, Council Members Buddy Maness, N. Carnell Robinson, Billy Tart, Chuck Turnage and Billy Barfield. Staff Present: City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, City Clerk Debra G. West, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Recreation Director Perry Hudson, Police Chief B.P. Jones, Police Captain Jimmy Pope, Chief Building Inspector Mike Blackmon, Code Enforcement Officer Steven King, Planning Director Samantha Lloyd, Human Resources Director Anne Thompson and Finance Director Mark Stephens. Also Present: City Attorney P. Tilghman Pope and City Engineer Michael Goliber. Daily Record Reporter Brian Haney arrived at 12:52 pm. Absent: Librarian Mike Williams Mayor Harris opened the meeting at 8:30 a.m. Invocation — Mayor Harris Welcome — Dr. Jerry Wallace, President of Campbell University stated that the City of Dunn makes him Campbell proud. He is grateful each time he visits Dunn and sees the Campbell banners which fly in Dunn. He spoke of the special relationship between Dunn and Campbell. More than 3600 applications from all over the world have been received for admission to Campbell Medical School. Many of the applicants, parents of students and faculty spend time in Dunn and stay in Dunn. Dunn's good spirit spreads to Campbell. He congratulated Dunn for the beautiful Downtown Revitalization. Welcome - Mr. Mike Minter, Campbell University Head Football Coach (former Carolina Panther stand- out and Nebraska Football Hall of Famer) joined the Campbell football program in 2012 coming from Liberty University. He has first -hand experience with staying in Dunn and it feels like home. Faith is instilled in this team and staff to keep them grounded and focused and he spoke of the family feel among the football team. He stated that some of the players on the Campbell team will be prepared to enter the NFL and emphasized the importance of having a college degree. During home games, many visitors will be staying in Dunn. He encouraged everyone to come out and watch the games. Pledge of Allegiance Repeated. Mid -Year Financial Report Fiscal Year 2012 -13 Finance Director Mark Stephens gave a power -point presentation of the following mid -year financial report: • Fund Balance as of 6/30/2012 - $3,460,282 • Fund Balance as of 6/30/2008 - $3,127,954 • Investment Earnings were $229,139 in 2008 and dropped to $15,224 in 2012 due to the state of the economy • Sales Tax Revenue was $1.6M in 2008 and dropped to $13M in 2012 due to the state of the economy • Cash/Investment balances as of 1/31/2013: General Fund - $3,946,187 • Property Taxes collected as of 1/31/2013: $3,030,176 or 92.10% of budget • Property Taxes collected as of 1/31/2012: $3,038,928 or 92.37% of budget • Sales Tax: Sales revenue as of 1/31/2013 - $705,591 or 51.88% of budget Sales revenue as of 1/31/2012 - $660,479 or 49.49% of budget $45,112 above last fiscal year to date amount • Franchise Tax: Franchise tax revenue as of 1/31/2013 - $265,122 Franchise tax revenue as of 1/31/2012 - $276,318 A decrease of 4.05% over last year We are at 47% of budget • Water /Sewer Revenue: $2,550,856 as of 1/31/2013 or 55.27% of budget $2,655,020 as of 1/31/2012 $2,634,217 as of 1/31/2011 • Expenditures: Benchmarks for this time of year is 58.33% General Fund expenditures as of 1/31/2013 was 53.74% of budget M Water /Sewer Fund expenditures as of 1/31/2013 was 57.59% of budget Budget Concerns: 2013 • Health Insurance Cost • Retiree Health Insurance Cost 2014 and beyond • Debt Service • How to pay for potential funding gap on Harnett Training Center Financial Evaluation of Debt Service FY 13- 14/14 -15 Finance Director Mark Stephens gave a power -point presentation of the following Financial Evaluation of Debt Service: • Current Outstanding Debt 6/30/12 General Fund $4,996,968 Water /Sewer Fund $9,892,687 Total $14,889,655 Debt Limits (8% of total assessed value) $59,533,701 $1,725,000.00 • General Fund Debt Service: FY 11/12 $468,390 FY 12/13 $459,157 FY 13/14 $558,388 (1" payment on Tyler Park) FY 14/15 $ 718, 314(1" payment on Downtown Revitalization) FY 15/16 $574,764 • Debt Seri FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 ,ice as Percentage of Budget: 5.30% 5.06% 6.06% 7.80% 6.17% • Additional Revenue for Debt Service: Tyler Park Pledges will start FY 13/14 estimated amount $70,000 Downtown group's payment of at least $35,000 will start in FY 14/15 Averasbom Travel and Tourism payment of $20,000 will start in FY 14/15 • Pros/Cons of Debt Borrowing: Pros: Allows City to build/maintain Fund Balance Current Low Interest Rates Short term borrowing Cons: Ability to fund annual debt payments Reduces ability to fund smaller projects in budget Funding Debt Service: City of Dunn tax levy since revaluation in 2009: FY 09/10 $3,325,806 FY 10 /11 $3,307,823 FY 11/12 $3,311,626 FY 12/13 $3,319,308 • New Debt Phase II of Tyler Park Renovations $500,000 Harnett Training Center Apartments Summary: City of Dunn has not reached its debt limit per state statutes With new debt committ ed and potential debt still to be determined, funding any additional debt could be an issue Update /Phase I — Tyler Park Project Assistant City Manager Neuschafer gave a summary of the present Tyler Park Renovation Project.. The following breakdown of Tyler Park Cost Phase I was provided to the Council: Revenues • Loan $975,000.00 • PARTF Grant $450,000.00 • Contribution $300.000.00 $1,725,000.00 Expenditures: • Construction and Contingency $1,158,800.00 • Demolition $ 11,200.00 • Lightning and Installation $ 265,000.00 • Irrigation $ 20,000.00 293 Sod $ 35,000.00 • Design and Construction Admin. $ 235,000.00 • Additional Electrical Work $ 9,885.00 • Scoreboards $ 18.705.90 $1,753,590.90 Revenues over(under)expenditures ($28,590.90) The City has received $1,000,000 in signed pledges Recreation Director Hudson updated the Council on the status of Phase I and the amenities housed in Phase II. Three years to complete the project by January of 2015. It is projected to begin Phase II later this year. Director Hudson advised the Council that baseball sign -ups have increased based on the positive effect of the Tyler Park Renovation. Mayor Harris pointed out that with the park renovation, the additional enrollment of teams and tournament play at Tyler Park, Tart Park, and Codrington Park along with the associated demands, additional staffing in the recreation department will need to be considered. Mr. Hudson informed the Council that a local business has contacted him and offered to pay the annual membership fee on behalf of the City to the Miracle League Network. Police Crime Reports On -Line Tutorial Assistant City Manager Neuschafer gave a web based tutorial to allow the members of Council to access police crime reports. This will eliminate the need to provide a monthly paper Police Report in the Council Agenda books. Break 10.•15- 10:30 am Ordinances - Modifications Chapter 18 — Solid Waste Management (Weedy/Weeded Lots) — Manager Autry stated that due to disposal costs, the Solid Waste Ordinance is before the Council again. The City continues to pick up furniture with the boom truck once a week. He provided a list detailing the tonnage of furniture/white goods and yard debris that the City picked up from July — December of 2012. He pointed out that Chief Building Inspector Blackmon has been working in the field when items are left by the roadside. Residents have been very receptive when Inspector Blackmon advises them of the City's policy about items which the City will and will not pick up and this has been a tremendous help in reducing the number of items left by the roadside. A proposed ordinance was provided to the Council. Manager Autry stated that during the budget work sessions, he will ask for recommendations from the Council. Chief Inspector Blackmon pointed out that this proposed ordinance includes several definitions that are not within the current ordinance. This ordinance also addresses weedy lots. Citizens just need to be educated on the items that will and will not be picked up by the City. Certain fees are included within this ordinance to pick up certain items. Mayor Harris suggested that a summary list be created and distributed to the Council listing those items which will and will not be picked up by the City so the Council will have a better understanding. Discussion was held about picking up grass clippings and leaves regardless if they are put out by the street by a private citizen or a contractor; there should be no difference in this aspect. It was pointed out that there is a difference with a contractor putting trees out by the street for pick -up and the City should not be responsible for picking this up. It was discussed if the City could make it optional for citizens to opt if they would want a debris cart. Inspector Blackmon stressed the importance of educating the citizens about items that the City will not pick up; adding that many citizens would be willing to discard those items at their own expense. Attorney Pope pointed out that if the proposed ordinance is adopted, the Council will need to adopt fees in the fee schedule for abatement or removal. Commercial Signs Maintained Discussion was held about businesses that close down and leave their signs in disrepair and pose a danger. Discussion was held to require property owners to maintain signs in good repair. Discussion was held about implementing a code to enforce maintenance of signs for vacated commercial properties. 294 Chapter 22 — Political Sign Ordinance Manager Autry yielded to Council Member Barfield who asked that this issue be discussed. Council Member Barfield stated that presidential candidates should not be required to pay a political sign fee. Council Member Barfield stated that the present ordinance is not a good ordinance, is not being enforced, and there is not sufficient staff to enforce the ordinance. He presented photographs showing political signs that are still up from the last election and he feels that favoritism is being shown with regard to removing some signs and allowing some signs to remain. He recommended the City repeal the political sign ordinance. Discussion was held that if the City did not have an ordinance to regulate political signs, then signs could be put anywhere. The City ordinance puts some control and regulations over the signs. Most candidates pick up their signs after an election. Noise Ordinance City Manager Autry led discussion about complaints with noise and when an officer responds to a call, it is determined that the noise is not excessive from the street. It was asked if there should be a time limitation dealing with noise after a certain time in a residential community. It was discussed if they should convert measuring the noise by decibels as in the present ordinance or should they amend the ordinance to measure noise by footage and decibels. An example was given that a neighbor might hear the noise whereas an officer standing fifty feet away may not hear it and therefore unenforceable by the officer. It was discussed further to put a time limitation for noise to cease in the present ordinance. Attorney Pope suggested they research noise ordinances in other municipalities. Council consensus was to have City Attorney Pope research if time limitations can be implemented in the Noise ordinance. Chapter 11— Sidewalk Sales/Displays- (Public right -of- ways)- Municipal Service District Manager Autry stated that the Downtown Dunn Development Corporation has been asked to come up with some recommendations for the Council to adopt. Sidewalk and display of sales falls under a different category in the privilege license ordinance. Staff recommendations are enclosed; however additional input should be provided by the Downtown Dunn Development Corporation. Lunch 12:10 -12:45 pm Ordinances -New Golf Carts Manager Autry presented a draft Golf Cart Ordinance and explained that some municipalities which adopted a golf cart ordinance have not had a positive experience with it. A golf cart can be issued a license plate if they have a Manufactured Certificate of Origin (MCO) issued when the golf cart is built. The MCO is stamped federally regulated highway ready. To receive a license plate, the state inspections department would inspect it annually. Manager Autry stated that the City of Dunn is not a golf or beach community and Highway 421 runs through the middle of the City. His recommendation is if an ordinance is adopted, the golf cart should fall under the Federal Motor Vehicle Safety Standards, registered with a license plate and inspected annually through the state just like a car. This would protect the City and citizens from the liability issues of potential accidents. Council Member Tart stated that due to negative impact, Surf City changed their ordinance to require standards just as a car. Police Chief Jones explained the process to modify a golf cart and the approximate cost of $3500.00 to make it street legal. Annual inspection is required, license plate and vehicle IO # is issued. Chief Jones pointed out that the City has a fiduciary duty to protect its citizens by not allowing all types of golf carts on the road unprotected and without insurance. If the City does nothing, the City will not have golf carts on the streets. He pointed out that GEM cars are street legal and come with a MCO. By the time a golf cart is modified to be street legal, it would cost almost the same as a GEM car. Discussion was held to restrict golf carts from driving on Highway 421, about the difference in a GEM car and a golf cart as it relates to the battery charging system, affordability to put thousands of dollars in a golf cart or GEM car, allowing golf carts to be used in residential areas only, golf carts for elderly use for convenience, and inspection fees. Consensus to direct the City Attorney to move forward with drafting a Golf Cart Ordinance with certain definitions which will require golf carts to be street legal. 295 Traffic Calming Devices Manager Autry stated that most communities adopt similar devices. Speed studies are completed in a certain area before justification to install a calming device. Guidelines would need to be established by the City to determine which streets or alleys need a calming device. It was recommended to use an alleyway near the barber shop and The Daily Record as a test pilot. Consensus of the Council was to draft a Traffic Calming Ordinance. Harnett Training School Campus Project Update Mayor Hams explained that the application has been resubmitted to the NC Housing Finance Agency. In meeting with the agency, he was advised that the City application would be more desirable if they did not request Rental Production Program (RPP) (HUD) Loans. The City of Dunn is the only project from Harnett County to apply for redevelopment funding. Mayor Harris stated that with the pre- application submitted, the City's tax credits allocated per unit ($17,543) were twice to those of an average complex and this could have a negative effect on the City being funded. Assistant Manager Neuschafer presented a draft preliminary application credits per unit whereby out of ten applications, Dunn has the highest tax credits per unit. Should Dunn lower the tax credits from $17,543 to $12,000 the chances of being funded are increased. Assistant Manager Neuschafer provided the following sources and uses utilizing $17,543 tax credits: Sources and Uses HTC 1/13/13 Federal LIHTC (.80 price for credits) $5,719,819 State LIHTC $1,222,306 NCHFA RPP Federal HTC (.95) $1,044,983 State HTC (.50) $ 549,991 NCDCI $ 500,000 Funding Gap (City of Dunn) $ 336,792 Total $9,373,891 Assistant Manager Neuschafer provided the following sources and uses utilizing $12,000 tax credits: Sources and Uses HTC 2/12/13 Federal LIHTC (.80 price for credits) $3,551,645 State LIHTC $1,030,667 RD Community Facilities Loan $ 946,173 Federal HTC (.95) $1,044,983 State HTC (.50) $ 549,991 NCDCI $ 500,000 Funding Gap (City of Dunn) $1,208,432 Total $8,831,891 Assistant Manager Neuschafer provided a debt service schedule for the project: Year 1 — Debt Service will be $62,654 Less: Payment from DCDC ($27,749) Amt. City will fund $34,905 Assistant Manager Neuschafer advised the Council that they will need to decide whether or not they want to lower the tax credits to be competitive with other projects in the region when the final application is submitted in May, 2013. Mayor Harris suggested having Consultant Scott Redinger come back before the Council to explain what the risks are if the City does not put more funding in the project. The DCDC would pay the note to the City. Bankers are interested in investing in the DCDC. Mayor Harris stated they have the option of leaving the pre - application as submitted using $17,543 in tax credits since no other applications were filed in Harnett County. Mayor Harris suggested that before they make any decision about changing the tax credit amounts, they have consultant Redinger meet with the Council and relay to them in detail the risk of leaving the tax credits as submitted in the pre - application. Mayor Hams also mentioned PAL being made a non -profit with its own board of directors, giving them the capability to apply for their own grants. Mayor Harris pointed out that if the City continues on the same path, the City will continue to invest a lot of money into these deteriorated buildings on the PAL Campus. He questioned do they spend money on the ever increasing expense of maintaining this property or do they revitalize the entire facility. IBC Assistant Manager Neuschafer stated that out of the project, the Senior Recreation, Senior Center, and Senior Education buildings would receive $23M in improvements. Council Consensus was for Mayor Harris to call for a Special Call meeting of the City Council with housing consultant, Scott Redinger, representatives ofDCDC and PAL, to discuss the tax credit process and discuss other options available in submitting the final application to the NC Housing Finance Agency Proiect Updates Downtown Revitalization Assistant Manager Neuschafer stated that the final walk - through has been accomplished, and they are working with the contractor on the final disbursement. Handicapped parking signs will be put up, and Progress Energy is awaiting the new light fixtures for the portion across from the Railroad. Assistant Manager Neuschafer provided the following project cost breakdown Projected Costs Street/sidewalks -Burney and Burney $1,382,000.00 Utilities $560,000.00 Engineering -DMP $320,700.00 Traffic Signals - Walter Holmes $310,000.00 Festival Lighting-Walter Holmes $155,000.00 Interim Interest Cost $100,700.00 CSX- Inspection Fee $31,000.00 Soil Testing — KAM $20,000.00 Additional Insurance for CSX - Snipes Insurance $13,718.00 Miscellaneous $10,400.00 Reimbursement from DOT for work on Clinton ($25,000.00) TOTAL $2,878,518.00 TOTAL BUDGET $2,989,000.00 Amount Remaining $ 110,482.00 Magnolia Avenue Update: $150,0004200,000 cost to complete paving, curbing, parking, small retaining wall, sidewalk and curb and gutter remains to be installed Applied for a $75,000 grant (Notice of award in May, 2013) $32,400 (54 days x $600 per day) in penalties has been discussed with the contractor. Final dollars will be determined at a later date. Mayor Harris reported that he along with Manager Autry, Assistant Manager Neuschafer met with DACC, Tourism and DDDC and set the tentative date of May 2 -4, 2013 for the Downtown Revitalization Celebration. Elevated Water Tank — Arrowhead Road Manager Autry reported that bids received for the elevated water tank were approximately $300,000 to $400,000 dollars higher than expected and staff has determined that the current pressure is sufficient without the tank. Possibility to interconnect with surrounding lines will be explored. A recommendation to reject all bids received for the water tank will be forthcoming at the March 12, 2013 Council meeting. Love's Travel Stop — I -95 Corridor Sewer System Manager Autry reported that this project is on hold at this point due to the inability to acquire all necessary easements and the increase in the project cost. Loves Travel Stop would be required to contribute additional funding to accomplish this project. Ashe/Powell Round -a -bout Turn Lanes Erwin Rd. & Powell Avenue Manager Autry reported that the City will be required to lower a 12" water main for the Round -a -bout project at the expense of the City. This must be completed by May because DOT will let bids in May with construction beginning late summer of 2013. NCDOT will construct a left turn lane at the intersection of Erwin Road and Powell Avenue, one through lane in each direction and a signal head for the left turn lane. The NCDOT proposes to resurface Erwin Road from Tilghman Drive to Walgreens; however, since the City is responsible for maintenance of Erwin Road from Powell Avenue to W. Cumberland Street (ref. R2008 -21), the City of Dunn will commit $20,000 toward the project. At this point, Manager Autry has not received a timetable for completion from NCDOT. 297 New Proiects — Clinton Avenue Public Parking Lot Wall (Ciconne Bldg.) A proposal of $9,750.00 has been submitted by Superior Plastering of New Bern to install stucco on this wall. This company was the low bidder for a like project completed by the Tourism Authority. Resurfacing of City Streets Manager Autry stated that a number of streets are in need of resurfacing that was not included in the $1M project accomplished a couple of years ago. $100,000 of debt service is being paid on the previous $1M project. Powell Bill funds are limited. There is currently $450,000 in the Powell Bill Fund Balance. Manager Autry reminded the Council that if the Round -a -bout bids come in high, then the City of Dunn is obligated to pay $100,000 to DOT toward this project. Public Works Director Addison has a list of streets that need repair. It was suggested that each Council Member prepare a list of streets within their district that need resurfacing. It was suggested that the Public Works Director should compose the list with the worst streets first. Break — 2: SO pm Consideration to Establish Hours of Operation as 7:30 am — 4:00 pm Manager Autry provided a proposal to change the hours of operation. He pointed out the advantages of these work hours; adding that in the past nine years of observing summer hours, they have not experienced negative feed -back. Discussion was held about staggering some employee's work hours whereby some arrive to work later in the morning and some work later in the evening, adding that this would allow drive -tiro windows to remain open until 6:00 pm. Discussion was held about summer hours being a positive incentive for employees and the potential to reduce absenteeism. Consensus was to offer summer hours this year and bring back a plan and data documenting customers that come in between 7:30 -8:00 am for consideration later in the year. Discussion of Council Goals & Objectives Mayor Harris: • is` priority is to manage the budget — losing internet sweepstakes revenue, franchise taxes, additional debt load for the next three (3) years. His goal is to manage the debt to avoid using fund balance. • Finish current projects • Fund the Hamett Training Center Renovation Project Council Member Maness: • Determine and prioritize the City's ability to fund projects (revenue /debt service) • Housing and deteriorated buildings • Weedy and unkempt lots • Public safety with the current economic environment • Excessive noise • Adequate police staffing and equipment • Recreation staffing to manage & maintain Tyler Park once renovations are complete - security measures in place at all three parks • Recruiting industry/employment opportunities Council Member Robinson: • Public safety — Is the Police Department staffed for the current climate • Upgrade public safety and the confidence of the citizens • Speed limit enforcement • Steps to bring jobs to this area • Recruit industry • Requirement to be FOE • PAL Campus • Would like to see starting salaries for all city employees hired in the past ten years Mayor Pro Tem Galbreath: • More community policing — walk neighborhoods • Balanced hiring system within all city departments • Resurface streets • Monitor street light system through -out the City — partner with Progress Energy to identify areas where street lights are not working • Dilapidated housing •:: • Educate the public when policies or ordinances are implemented via government channel, media, etc. • Evaluation of public works equipment • Evaluation of the public works building • Daily maintenance of the City Parks — Ensure staffing to maintain • Ask DOT to re -study pedestrian crossing issue on Cumberland from Sampson to Elm Council Member Billy Tart: • Drug activity on the streets in his district • Multi families living in single family dwellings • Furniture pick up, limb debris and dilapidated housing Council Member Chuck Turnage: • Don't commit to anything financially unless we have the resources to pay for it • Develop videos with Triton, CCCC and Campbell University featuring city employees addressing water quality to and from the Cape Fear River, solid waste management, dilapidated houses, weedy lots, noxious weeds, and abandoned cars and post them on the government channel and city website • Suggested the Council and department heads take a bus tour of each district to point out the positives, negatives, issues and desires for each district Council Member Billy Barfield: • Make the railroad crossings safe for pedestrians /handicapped to cross safely • Would like to see safe sidewalks all over town • Questioned why the bath house at Codrington Park has not been repaired Departmental Reports Planning Department Proposed Ordinance Amendments: • Sidewalk Sale (Chapter 11 Privilege License) • Solar Farms (new) • Cell Towers (new) • Political signs (amend) • Require developers to install sidewalks with any new development (new) Projects: • Extend Dunn-Erwin Rail Trail • City -wide Zoning Map Amendment • Brownfrelds Grant (if awarded) — will be a 3 year grant program totaling $400k • Planting project: NC Hwy 55, Broad St. & Cumberland (funded by NCDOT) • New planting project to begin this spring • N. Clinton Ave. sidewalk construction (Edgerton St. to Granville St.) (NCDOT) • Round -a -bout at Ashe & Powell Avenue (NCDOT) Public Works Department FY 2013 -14 Budget Request: • Street Department: Replace tire changer & balancer $6,000 Asphalt drag box $8,000 Zero Turn mower $6,500 Street Resurfacing $100,000 • Water & Sewer Department: Pickup truck $25,000 Valve exerciser $ 2,500 12" water main $74,000 • Capital Request: FY 2014 -15 Payloader $85,000 FY 2015 -16 Tandem Axel Truck $75,000 FY 2016 -17 Leaf vac Truck $150,000 299 Public Utilities This was a very in -depth listing of items. Only funding amounts are listed: Wastewater Treatment Plant, Water Treatment Plant & Wastewater Lift Stations FY 2013 -14 • $160,000 FY 2014 -15 • $55,000 FY 2015 -16 • $115,000 FY 2016 -17 • $103,000 FY 2017+ • Possible W WTP Upgrade - $7.9M Wastewater Lift Stations - $150,000 Water Treatment Plant -$1.2M With no further business to discuss, motion by Council Member Barfield and seconded by Council Member Billy Tart to adjourn the meeting at 4:00 p.m. %%N G \SY OF Attest/ SEAL ' 0. Debra G. West '�. CAFO`, ` City Clerk xv�w ! W scar N. Harris Mayor