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05142013310 MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Regular Meeting on Tuesday, May 14, 2013, at 7:00 p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tem Bryan Galbreath, Council Members Buddy Maness, N. Carnell Robinson, Billy Tart and Billy Barfield. Also present was City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, Finance Director Mark Stephens, Public Works Director Billy Addison, Chief Building Inspector Mike Blackmon, Building Inspector Steven King, Planning Director Samantha Wullenwaber, Interim Police Chief Jimmy Pope, Human Resources Director Anne Thompson, Librarian Mike Williams, City Engineer Michael Goliber, City Attorney P. Tilghman Pope and City Clerk Debra West. Absent: Council Member Chuck Turnage. (Mayor Harris stated this was an excused absence due to a business related conflict). INVOCATION Mayor Harris opened the meeting at 7:00 p.m. and asked Dr. Len Keever, Pastor of First Baptist Church to give the invocation. Afterwards, the Pledge of Allegiance was repeated. AGENDA ADJUSTMENT AND APPROVAL Motion by Mayor Pro Tem Galbreath and seconded by Council Member Maness to adopt the May 14, 2013 meeting agenda with changes, if any, as listed below. Items Added to the Agenda: • Consideration to Adopt a Workforce Diversity Plan Agenda Items Removed: • none Motion unanimously approved. Proclamation Presentation Jordan's Jewelry 125th Year Celebration Mayor Harris presented a proclamation to Ms. Joyce Jones, recognizing the 125`" Year Anniversary of Jordan's Jewelry Store. A copy of Proclamation (P2013 -11) recognizing the 125` Year Anniversary of Jordan's Jewelry Store is incorporated into these minutes as Attachment #1. PUBLIC COMMENT PERIOD Mayor Harris opened the floor for a (30) minute public comment period. Mr. Matthew McLean, 1405 S. Elm Avenue, Dunn, NC — spoke about the lack of diversity in the leadership of the City as it relates to department heads. The leaders of the community should represent the whole community. He mentioned that of the three (3) city parks, two of them are being maintained while Codrington Park is in disrepair. Tax dollars are being spent on the other two parks. All citizens pay taxes and deserve good service and respect. He questioned why there must be a struggle to those who run the City to do what is right. Hearing no further comments, the public comment period was closed. *Clerks Note: Mr. James Clark signed -up to speak late; however, Mayor Harris allowed him to speak at the end of the meeting. CONSENT ITEMS At the request of Mayor Pro Tem Galbreath, consent item #5 was removed from the consent agenda for consideration. #4 Minutes — Council considered approval of minutes of the April 9, 2013 City Council meeting. #6 Proclamation - Council considered approval of a Proclamation designating the month of May, 2013 as Lyme Disease Awareness Month in the City of Dunn. A copy of Lyme Disease Awareness Month Proclamation (P2013 -18) is incorporated into these minutes as Attachment #2. #7 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 (R2013- 12) is incorporated into these minutes as Attachment #3. Motion by Council Member Robinson and seconded by Council Member Barfield to approve all consent items. Motion unanimously approved. Item #5 removed from the Consent Agenda and acted upon separately: #5 Proclamation - Council considered approval of a Proclamation designating May 19 - 25, 2013 as National Public Works Week. Mayor Pro Tem Galbreath read the proclamation. Motion by Mayor Pro 311 Tern Galbreath and seconded by Council Member Billy Tart to adopt the National Public Works Week Proclamation. Motion unanimously approved. A copy of National Public Works Week Proclamation (P2013 -19) is incorporated into these minutes as Attachment #4. ITEMS FOR DECISION Consideration to Adopt a Resolution and Accept the Letter of Conditions for USDA Rural Business Enterprise Grant (RBEG)- Magnolia Avenue from Cumberland to Edgerton The Council is being asked to adopt a resolution accepting the Letter of Conditions for proposed grant funds in the amount of $75,000 for purposes of assisting with the cost of street improvements in a two block area along Magnolia Avenue between Cumberland and Edgerton Street. Mr. Garland Burnette, Area Director of the USDA addressed the key items within the Letter of Conditions. He explained that this project will consist more particularly of the following improvements: Remove and replace approximately 1000 LF of sidewalk, install curb, gutter and paving, install six accessible wheelchair ramps, install four painted crosswalks and delineate 20 on street parking spaces along Magnolia Avenue between Cumberland and Edgerton Streets. The City's matching funds are currently projected at $159,000. Council Member Robinson asked Mr. Bumette why the contract for the Downtown Revitalization Project has not been closed out with Burney and Burney. Mr. Barrette responded that it relates to liquidated damages, change orders and deferred this question to City staff. Mayor Harris responded that mutual negotiations are in the process between the contractor and the City Manager and City Attorney to come to a mutual agreement. Council Member Robinson stated that it is his understanding that there has not been a response from the City Engineering firm of Davis - Martin- Powell & Associates (DMP). City Manager Autry responded that Bumey and Burney's request is being reviewed by DMP and City staff. DMP is putting together the documents to be reviewed by the City Attorney to issue a response. Council Member Barfield stated that Lucknow Square is in worse condition than Magnolia Avenue and this is the only street that has not been revitalized. Mayor Harris responded that City Attorney Pope is reviewing this to see if this street can be added into the Magnolia Avenue project. Mayor Pro Tom Galbreath stated that in addition to Lucknow Square, he would like the alleyway directly across from Lucknow Square between Broad Street and Edgerton Street to be considered as well. This is a high traffic area. Motion by Council Member Maness and seconded by Council Member Billy Tart to adopt the Resolution and Accept the Letter of Conditions for the USDA RBEG Grant. Motion unanimously approved. A copy of Resolution (R2013 -13) and Letter of Conditions for USDA RBEG Grant is incorporated into these minutes as Attachment #5. Adopt -A -Spot Program Dunn Area Chamber of Commerce Executive Director Tammy Williams explained that the Dunn Area Chamber of Commerce Beautification and Image Committee developed the Adopt -A -Spot program to encourage residents to work on improving their neighborhoods by cleaning littered streets, sidewalks, vacant lots, cutting grass and high weeds, planting flowers and maintaining existing landscaping. All residents, groups of residents, local organizations, churches and businesses are invited to participate in the Adopt -A -Spot program. Some locations are pre - chosen throughout the City (i.e. `Welcome to Dunn Signs' which Miller's Lawn & Landscaping has been maintaining at no cost for the past three years) or participants may choose their own spot throughout the City. There is an application process for anyone who is interested along with safety guidelines. This would be a partnership between the Dunn Area Chamber of Commerce and the City of Dunn. Financial impact on the planning and zoning department would be the cost of gloves and trash bags and any related material would be less than $100 /year. Any new landscaping proposed in areas would be funded by the Adopt -A -Spot program participant. Motion by Council Member Barfield and seconded by Mayor Pro Tern Galbreath to approve the Adopt -A- Spot program. Motion unanimously approved. 312 Audit Contract FY 2012 -2013 Manager Autry stated that Petway Mills & Pearson, PA submitted a proposal of $20,000.00 to perform the F/Y 2012 -2013 audit for the City of Dunn. Manager Autry provided the following audit cost for the last four fiscal years: 2012 - $19,500 2011 - $19,000 2010 - $19,470 2009 - $18,900 Petway Mills & Pearson, PA has been performing the City's audit since 2005. Motion by Council Member Robinson and seconded by Council Member Maness to contract services with Petway Mills & Pearson, PA to conduct the F/Y 2012 -2013 audit for the City of Dunn at a proposed cost of $20,000.00. Motion unanimously approved. A copy of FY 12 -13 audit contract is incorporated into these minutes as Attachment #ti. Approval of Pledge and Naming Rights Agreement — Tyler Park Project Manager Autry stated that the Council is being asked to approve the following Pledge and Naming Rights Agreement: Donor Pledge Amount Proposed Name to Display Robert B. Carr & $150,000 Phillip Alan Fusco, II Miracle Field Family Endowment Fund The Miracle Field is proposed to be constructed in Phase II of the project. Motion by Council Member Maness and seconded by Council Member Barfield to approve the Pledge and Naming Rights Agreement between the City of Dunn and Robert B. Carr & Family Endowment Fund. Motion unanimously approved. A copy of the Pledge and Naming Rights Agreement is incorporated into these minutes as Attachment #7. Finance Director Mark Stephens reported that to date $1,254,000.00 in private contributions have been made to the Tyler Park Project. He provided the following breakdown: $300,000 (Additional Park Name) $150,000 (Miracle Field) $300,000 (3) ball fields @ $100,000 ea.) $25,000 (Splash Pad) $110,000 (Donor board contributions (11) @ $10,000) $25,000 (Donor board contribution) $30,000 (Donor board contributions (2) @ $15,000) $300,000 (Donor board contributions (60) @ $5,000) $14,000 (Donor board contributions (7) @ $2,000) TOTAL $1,254,000.00 has been pledged to date Final Change Order — Eastover Sanitary District Project Manager Autry explained that this final change order is in the amount of $148,302.76. Contract price prior to this change order was $2,079,286.09. Contract price incorporating this change order is $2,227,588.85. Justification for this change order is as follows: • Final adjustments in unit quantities • New valve actuator in the Booster Pump Station • Check valve at the tank site for water quality Eastover Sanitary District Board has approved the final change order. Monies were appropriated in contingencies within the budget. Motion by Council Member Barfield and seconded by Council Member Billy Tart to approve Final Change Order for the Eastover Sanitary District Project. Motion unanimously approved. A copy of the Final Change Order is incorporated into these minutes as Attachment #8. Resolution Authorizing the Mayor to Execute Letters of Intent to the NC Housing Finance Agency for Harnett Training School Apartments The Council is being asked to authorize the Mayor to execute Letters of Intent, one for $2,000,000 and one for $500,000 which is the amount of the approved Catalyst grant to the NC Housing Finance Agency (NCHFA) to reserve funds to Housing Consultant, Scott Redinger for Low Income Housing Tax Credits 313 ( LIHTC) for the development proposed to be located at 610 E. Johnson Street to be known as "The Harnett Training School Apartments." Clem Medley, Chairman of the Dunn Community Development Corporation (DCDC) addressed the key items within the Letters of Condition. Mr. Medley stated that on behalf of the DCDC he thanked the Council for their support. He explained that the center piece of this project is the renovation and adaptive reuse of the existing historic school building into fourteen (14) apartments for low- income senior citizens and for the construction of twenty -three (23) new apartments to serve the same purpose. Also included in this project is the renovation of the gymnasium and the classroom currently used by the Police Athletic League (PAL) as well as the space currently occupied by the senior center. Mr. Medley provided the following funding information for the development or this project Total Development Cost: $9,501,791 Amount % City Request $1,954,652 20.6 Other Funding $7,547,138 79.4 Sources of Other Fundine Equity from LIHTC $4,471,743 Equity Federal HTC $1,061,248 Equity State HTC $ 558,552 State LIHTC (30 yr. 0% loan) $ 955,596 State Catalyst Grant $ 500,000 Mr. Medley explained that the City can expect to receive over $1M in repayment from the loans. In addition to these, $244,240 will be available to DCDC to fund future projects. The City will realize approximately $17,000 after project completion, in City /County property taxes. This project has been analyzed by the Council over many months Mr. Medley stated that project manager and housing consultant Scott Redinger, is present tonight to answer any questions of the Council or to provide any additional information the Council may need. Mr. Medley stated that the DCDC understands the fiscal responsibilities the Council may have with this project; adding this project offers a unique opportunity to make significant contributions to a much needed facility and to the ultimate rehabilitation of a large part of the community within the City. Mayor Harris stated that the Council has been working on this project for approximately four years. The fast application submitted by the City to the North Carolina Housing Finance Agency was denied. Mayor Harris provided the following comments relating to this project: • The City will lease this property to the DCDC for fifty years. • The City will lease back all of the buildings except the senior center. • With newly renovated buildings, the City's cost will be the insurance and maintenance. • For years, he and Council Member Robinson have tried to establish a Community Development Corporation. • Most cities have a Community Development Corporation which allows that community to apply for grants. • $244,240 will help the DCDC offer loans which will re- invest in the community particularly to the revitalization area that encompasses the PAL campus. • Consultant Scott Redinger has worked with the City for the past several years helping the City to qualify for this funding. • USDA has offered to loan $2M to the City of Dunn at an interest rate of 3.15% over 40 years and will be paid back from the funds collected from the DCDC, in addition to the property taxes collected, making it a revenue neutral project. • NCHFA will issue the Federal and State tax credits. • The State of North Carolina will provide historic tax credits. • The Federal Government will provide the federal historic tax credits. • Mr. Redinger has secured a bank to finance the construction loan until closing. • Investors will raise the capital for the project. • The DCDC is working to receive their 501 (c) (3) non -profit status. c, Eighteen (18) different public and private entities involved just to get this project to the application stage. • If the City does not request RPP loans, the City has a better chance to receive funding. • Dunn is the only project in Harnett County applying for funding. • If the City does not receive funding, the City will apply again. • The City will not give up until all (37) units of senior housing are approved by the NCHFA for full rental assistance and all properties are renovated. • This program is very competitive and the City is following all regulations. Finance Director Mark Stephens stated that the DCDC is asking for $1,954,652 in funding. He stated that the debt service for the first year is $88,282 which will decline each year. At present, no property taxes are being paid on this property and once rehabilitated; it could generate $15,000- $18,000 per year. The City is currently expending approximately $20,000 per year to maintain these buildings. With these factors combined, he feels the debt service would be revenue neutral. 314 Mr. Medley stated that it would cost an estimated $33M to renovate the existing buildings excluding tax credits and without other benefits. While this project does require a significant up -front investment from the City, it offers a much better alternative than the City undertaking such a project by itself. Motion by Council Member Galbreath and seconded by Council Member Maness to adopt the Resolution authorizing the Mayor to endorse necessary documents to submit the 2013 NCHFA LIHTC Application for Harnett Training Center Apartments for seniors. Motion unanimously approved. A copy of Resolution (R2013 -14) authorizing the Mayor to endorse necessary documents to submit the application and the Letters of Intent addressed to Mr. Scott Farmer of the NCHFA is incorporated into these minutes as Attachment #9. Resolution to Name the Delegation for the National Civic League's 2013 All- America City Awards The Council is being asked to adopt a resolution naming the delegation which will attend the All- America City Awards in Denver, Colorado beginning June 12 and ending June 17, 2013. Mayor Harris stated that this All- America City Awards will be funded by sponsorships and tax dollars will not be used for this Award. At present, approximately 71 delegates representing the City of Dunn will attend. This resolution will allow the delegates to deduct their expenses for tax purposes. Motion by Council Member Robinson and seconded by Council Member Barfield to adopt the Resolution to Name the City of Dunn Delegation for the National Civic League's 2013 All- America City Awards. Motion unanimously approved. A copy of Resolution (R2013 -15) naming the delegation for the AA Awards is incorporated into these minutes as Attachment #10. Consideration to File Articles of Incorporation for Dunn Police Athletic League City Attorney Pope stated that before the Council, are proposed Articles of Incorporation to establish the Dunn Police Athletic & Activities League, Inc. as a Non - Profit Corporation. He explained that the concept for many communities that have PAL Programs have private non - profits that run them and work in conjunction with their local police departments and this is something that this Council has discussed on numerous occasions to transition PAL to a non - profit status in conjunction with the Harnett Training School Campus project. The articles appoint the following initial five (5) member Board of Directors: Peter Strickland 2030 Wheeler Drive Angier, NC 27501 Walter Massey, Sr. 700 E. Divine Street Dunn, NC 28334 Shawana Cameron 602 E. Townsend Street Dunn, NC 28334 Tony J. Morrison 63 Whippoorwill Road Coats, NC 27521 Kittrane Sanders 1692 Covington Road Bunnlevel, NC 28323 Tony J. Morrison shall be the initial Chairman of the Board of Directors and Kittrane Sanders shall be the initial Vice Chairman. In addition to the five (5) initial voting members of the board of directors, the board of directors shall have three (3) non - voting ex- officio members of the board of directors who shall be: (i) the Chief of Police for the City of Dunn or his or her appointee; (ii) a police officer of the City of Dunn, other than the Chief of Police, appointed by the City Manager of the City of Dunn; and (iii) a member of the Dunn City Council, appointed by the Dunn City Council. Motion by Council Member Billy Tart and seconded by Council Member Maness to authorize and approve the Articles of Incorporation to establish the Dunn Police Athletic & Activities League, Inc. as a Non -Profit Corporation. Motion unanimously approved. A copy ofthe Articles oflncorporation is incorporated into these minutes as Attachment #11. 315 Consideration to Adopt a Workforce Diversity Plan Council Member Robinson stated that last month he raised the issue of developing a Diversity Plan. He along with Mayor Harris, Manager Autry and Human Resources Director Anne Thompson met about developing a Workforce Diversity Plan and what was presented to them assured the City reaches out to all segments of the community, advertising so all segments of the community have an opportunity to see job openings within the City and provides for some diversity training. He added this creates a process to ensure diversity is used in the future. He added that Ms. Thompson has been doing an excellent job in Liking aggressive steps to make sure that diversity was protected within the City and now there will be a process for anyone that follows her. Motion by Council Member Robinson and seconded by Council Member Galbreath to adopt the proposed Workforce Diversity Plan amended by incorporating the technical changes recommended by Council Member Turnage. Motion unanimously approved. A copy of the City of Dunn Workforce Diversity Plan is incorporated into these minutes as Attachment #12. ITEMS FOR DISCUSSION AND /OR DECISION Financial Report Finance Director Mark Stephens provided the following financial report for the period ending March 31, 2013: • As of March 31, 2013, the City had $3.6M in cash in the General Fund and $2.OM in the Water - Sewer Fund. In March of 2012 the City had $3.3M in the General Fund and $2.8M in the Water - Sewer Fund. • Investment earnings are in the .15 % -.08% range. • Building permit fees were $51,496 or 114.44% of budget. Benchmark for this month is 75.00% of budget. • Water and sewer revenues were $3,260,458 or 70.64% of budget. Benchmark for this month is 75.00% of budget. • Average fuel cost in March for unleaded was $2.70 per gallon and diesel was $3.20 per gallon. The City budgeted $3.35 per gallon. • Sales tax revenue was $928,736 or 68.29% of budget. Benchmark for this month is 66.67% of budget. • Expenditures were 70.93% of budget in the General Fund and 68.02% of budget in the Water and Sewer fund. The benchmark for this period is 75.00% of budget. Motion by Mayor Pro Tem Galbreath and seconded by Council Member Maness to accept the Financial Report. Motion unanimously approved. ADMINISTRATIVE REPORTS Motion by Mayor Pro Tern Galbreath and seconded by Council Member Maness to accept the Administrative Reports. Motion unanimously approved. ANNOUNCEMENTS The following announcements and/or comments were made. Mayor Hams: ➢ The City Council will hold a special call meeting/budget work session on Thursday, May 23, 2013 at 8:30 am. ➢ City offices will be closed on Monday, May 27, 2013 in observance of Memorial Day. ➢ Boogie on Broad will be held on Thursday, June 6, 2013 from 6 -9 pm in Downtown Dunn. ➢ The next regular City Council meeting is scheduled for Tuesday, June 11, 2013 at 7:00 pm. PUBLIC COMMENT PERIOD CONTINUED Mr. James Clark stated that he is supportive of the Council. He supports converting the Harnett Training School Campus into senior apartments. He asked how a citizen could make a donation to the Harnett High Training Apartments; adding he would like to make a donation. Council Member Barfield: ➢ Last month a proclamation for the Library Week was not read aloud, he apologized and recognized the work of the Library. With no further business to discuss, a motion was made by Council Member Maness and seconded by Council Member Billy Tart to adjourn the meeting at 8:40 p.m. Motion u nimously appro ed. E CITY '''., '. OT O car N. Harris Mayor Attest: Q� % [J, zozJ Debra G. West City Clerk Z 'yc^1RG1 -�' �•