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05292001709 CORRECTED MINUTES CITY OF DUNN DUNN, NORTH CAROLINA THE CITY COUNCIL OF THE CITY OF DUNN HELD A SPECIAL CALL MEETING ON TUESDAY MAY 29, 2001 AT 6:00 P.M. IN THE DUNN MUNICIPAL BUILDING. PRESENT WAS MAYOR PRO -TEM MIKE WOMBLE AND COUNCILMEMBERS CAROLYN MCDOUGAL, TOBY SUMNER, GEORGE ROBINSON, JOEY TART AND PAUL BASS. ALSO PRESENT WAS INTERIM CITY MANAGER RONNIE AUTRY, FINANCE DIRECTOR RENEE' DAUGHTRY, UTILITIES DIRECTOR JOE CAMPBELL, RECREATION DIRECTOR PERRY HUDSON, POLICE CHIEF PAT GODWIN, CAPTAIN MORRY DENNING, CAPTAIN RONNIE � RADCLIFFE, FIRE CHIEF AUSTIN TEW, LIBRARIAN DEBORAH MELVIN, CITY ENGINEER RANDY MCNEILL, CITY ATTORNEY BILLY GODWIN, INTERIM HUMAN RESOURCE OFFICER MOSES GALLION, DEPUTY CLERK TINA SILLS AND DAILY RECORD REPORTER LISA FARMER. COUNCILMEMBER GEORGE ROBINSON ARRIVED AT 6:06 P.M., COUNCILMEMBER JOEY TART ARRIVED AT 6:08 P.M. AND COUNCILMEMBER PAUL BASS ARRIVED AT 6:16 P.M. MAYOR PRO -TEM MIKE WOMBLE PRESIDED OVER THE MEETING IN THE MAYOR'S ABSENCE. INVOCATION MAYOR PRO -TEM WOMBLE OPENED THE MEETING AT 6:17 P.M. AND ASKED COUNCILMEMBER TART TO GIVE THE INVOCATION. AFTERWARD, THE PLEDGE OF ALLEGIANCE WAS REPEATED. PUBLIC HEARING FINANCING -WATER FACILITIES IMPROVEMENTS MAYOR PRO -TEM WOMBLE OPENED UP A PUBLIC HEARING AT 6:20 P.M. AND STATED THAT THE PUBLIC HAS BEEN NOTIFIED THAT THE CITY COUNCIL OF THE CITY OF DUNN WOULD HOLD A PUBLIC HEARING FOR THE PURPOSE OF RECEIVING ORAL AND WRITTEN COMMENTS CONCERNING FINANCING THE CONSTRUCTION OF A GROUND STORAGE RESERVOIR, A STANDBY POWER SYSTEM FOR THE WATER TREATMENT PLANT, AND IMPROVEMENTS TO THE WATER PLANT. HE ADDED THAT THE PUBLIC HEARING WAS DULY ADVERTISED ON MAY 15 AND MAY 22 2001. HE ASKED IF THERE WAS ANYONE PRESENT TO SPEAK FOR OR AGAINST THIS REQUEST. HEARING NONE, HE CLOSED THE PUBLIC HEARING AND RECONVENED THE REGULAR MEETING AT 6:21 P.M. MAYOR PRO -TEM WOMBLE STATED THAT PROPOSALS WERE RECEIVED FOR FINANCING THE CONSTRUCTION OF A GROUND STORAGE RESERVOIR, A STANDBY POWER SYSTEM FOR THE WATER TREATMENT PLANT, AND IMPROVEMENTS TO THE WATER PLANT. HE ADDED THAT THE TOTAL COST OF THIS PROJECT IS $3,000,000 AND WILL BE FINANCED BY A $2,000,000 GRANT FROM THE NC DEPARTMENT OF EMERGENCY MANAGEMENT, AND $1,000,000 INSTALLMENT PURCHASE PROCEEDS. THE PROPOSALS RECEIVED FOR THE INSTALLMENT PURCHASE ARE AS FOLLOWS: BB &T 5.28% Fixed Principal + Interest $ 9,800.00 Total $1,422,400.05 First Citizens 5.53% Fixed 7 years Total between $1,497,364.80 $ 750.00 Floor 5.53% Cap 7.0% and $1,544,932.16 depending Years 8 -15 on interest rate Centura 5.93% Fixed Principal + Interest not to exceed Total $1,487,508.59 $ 5,000.00 HE YIELDED TO INTERIM CITY MANAGER AUTRY WHO RECOMMENDED THAT THE FINANCING BE AWARDED TO BB &T, WITH FIXED PRINCIPAL PLUS INTEREST PAYMENTS FOR FIFTEEN YEARS, AT A RATE OF 5.28 %. CITY ATTORNEY BILLY GODWIN STATED THAT HE WOULD LIKE TO ADD THAT THIS WOULD BE SUBJECT TO APPROVAL BY THE LOCAL GOVERNMENT COMMISSION AT THEIR JULY 3 1tD MEETING. 710 MOTION BY COUNCILMEMBER ROBINSON, SECONDED BY COUNCILMEMBER MCDOUGAL TO APPROVE A RESOLUTION TO AWARD THE FINANCING OF THE INSTALLMENT PURCHASE FOR THE CONSTRUCTION OF A GROUND STORAGE RESERVOIR, A STANDBY POWER SYSTEM FOR THE WATER TREATMENT PLANT, AND IMPROVEMENTS TO THE WATER PLANT TO BB &T IN THE AMOUNT OF $1,422,400.05. MOTION UNANIMOUSLY APPROVED. (ATTACHMENT #1) CITY ATTORNEY GODWIN STATED THAT FOR THE RECORD, WHEN THE MAYOR PRO -TEM ACTS IN THIS CAPACITY HE CAN VOTE BY STATUTE. MAYOR PRO -TEM WOMBLE STATED THAT THERE WAS SOME CONCERN AMONG COUNCILMEMBERS THAT MAYBE THEY SHOULD WAIT FOR THE MAYOR BEFORE DISCUSSING THE BUDGET. COUNCILMEMBER PAUL BASS STATED THAT HE THOUGHT THE MEETING WAS TO START AT 7:00 P.M. AND THAT WAS WHY HE WAS LATE. COUNCILMEMBER ROBINSON STATED HE ALSO THOUGHT THE MEETING STARTED AT 7:00 P.M. MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER MCDOUGAL TO RECESS THE MEETING AT 6:25 P.M. AND TO RECONVENE AT 7:00 P.M. TO ALLOW MAYOR OUDEH ADDITIONAL TIME TO ARRIVE. MAYOR OUDEH ARRIVED AT 7:00 P.M. AND RECONVENED THE REGULAR COUNCIL MEETING. F/Y 2001 -2002 BUDGET INTERIM CITY MANAGER RONNIE AUTRY STATED THAT THERE WERE A COUPLE OF ITEMS THAT WOULD HAVE TO BE CORRECTED BEFORE SUBMITTING THE BUDGET ON JUNE 1, 2001. HE ADDED THAT THERE WAS A POSITION WITHIN THE POLICE DEPARTMENT THAT WAS BUDGETED TWICE AND ONE POSITION THAT THEY WERE ABLE TO ELIMINATE WHICH REDUCED THAT LINE ITEM BY $56,740.00. HE ADDED THAT THE POLICE DEPARTMENT WAS CONCERNED WITH THE AMOUNT THAT WAS CUT FROM THE CONTACT MAINTENANCE LINE ITEM. AFTER SOME DISCUSSION WITH THE POLICE DEPARTMENT, HE FELT LIKE HE SHOULD ADD BACK IN THE $15,000.00 THAT WAS CUT, AND AFTER THESE ADJUSTMENTS WERE MADE, THERE WAS $46,240.00 IN REVENUES. HE FURTHER STATED THAT FINANCE DIRECTOR RENEE' DAUGHTRY WAS ADVISED THAT THE MONEY RECEIVED FROM WIRELESS 911 AND E -911 LINE SERVICE HAS TO BE SET UP IN SEPARATE ACCOUNTS. HE ADDED THAT THERE ARE NO CHANGES IN THE DOLLAR AMOUNTS, JUST PAPERWORK THAT HAS TO BE DONE WITHIN THE BUDGET. INTERIM CITY MANAGER AUTRY STATED THAT THERE HAS BEEN SOME DISCUSSION WITH RECREATION DIRECTOR PERRY HUDSON CONCERNING CHANGING THE FEES THAT ARE CHARGED TO PARTICIPATE IN ACTIVITIES AT THE RECREATION DEPARTMENT. HE ADDED THAT CURRENTLY THE FEE IS $10.00 PER YEAR BUT THEY ARE PROPOSING CHANGING THAT FEE TO $10.00 PER ACTIVITY. HE FURTHER STATED THAT THIS WOULD INCREASE REVENUES FOR THE CITY BY ABOUT $9,000.00. HE ADDED THAT THEY ARE PROPOSING A 5% INCREASE FOR WATER AND SEWER FOR RESIDENTIAL AND COMMERCIAL CUSTOMERS. HE ADDED THE BULK RATE WAS LEFT THE SAME BECAUSE THERE WAS A SIGNIFICANT INCREASE LAST YEAR, BUT BECAUSE THE CITY IS STILL CONSIDERABLY UNDER THE SURROUNDING AREAS THAT SUPPLY WATER AT A BULK RATE, HE IS RECOMMENDING ADDING A 21/2% INCREASE TO THE BULK RATE CUSTOMERS. MAYOR OUDEH ASKED IF THERE WERE ANY COMMENTS. COUNCILMEMBER BASS STATED THAT COUNCIL SHOULD USE THE MONEY THAT INTERIM CITY MANAGER AUTRY FOUND AND NOT RAISE THE GARBAGE FEES FROM $6 TO $8. COUNCILMEMBER TART STATED THAT $8 IS A GOOD DEAL FOR RESIDENTIAL GARBAGE. MAYOR PRO -TEM WOMBLE STATED THAT HE HAD SEVERAL ITEMS HE WANTED TO GO OVER AND HE HAS ALSO FACTORED IN THE $8 GARBAGE FEE. COUNCILMEMBER SUMNER STATED THAT HE ALSO CONCURS WITH A INCREASE IN GARBAGE FEES. HE ADDED THAT THIS WOULD GIVE THE REVENUE THAT THE CITY NEEDS, AND IT WOULD NOT BE THAT BIG OF A BURDEN. 711 COUNCILMEMBER ROBINSON STATED THAT A $2 INCREASE WOULD BE A BURDEN ON THE OLDER PEOPLE THAT ARE ON FIXED INCOMES. MAYOR PRO -TEM WOMBLE SUGGESTED THAT COUNCIL CONSIDER ALL REVENUE AND EXPENDITURE ITEMS BEFORE MAKING ANY DECISIONS ON ANY PARTICULAR ITEM. COUNCILMEMBER SUMNER STATED THAT HE WOULD LIKE TO .SEE THE CITY CONTRIBUTE MONEY TO THE BEAUTIFICATION AND IMAGE COMMITTEE BECAUSE IT WOULD GIVE THE CITY THE IMAGE IT NEEDS, AND THINGS NEED TO BE DONE TODAY THAT WILL IMPACT THE FUTURE. COUNCILMEMBER BASS STATED THAT HE THINKS COUNCIL NEEDS TO LOOK AFTER THE CITY EMPLOYEES BEFORE GIVING ANY MONEY AWAY. COUNCILMEMBER ROBINSON ASKED WHAT TYPE OF REVENUE DOES THE CUT OFF AND THE LATE FEES FOR WATER BRING IN. INTERIM CITY MANAGER AUTRY RESPONDED THAT IS ALREADY IN THE BUDGET AND MONEY IS STILL NEEDED IN SURPLUS TO BALANCE THE WATER FUND BUDGET. MAYOR OUDEH ASKED IF THERE ARE ANY PLANS IN THE NEAR FUTURE TO SELL WATER TO ANY OF THE SURROUNDING AREAS. INTERIM CITY MANAGER AUTRY RESPONDED NO MAYOR PRO -TEM WOMBLE STATED THAT HE HAD SPENT TIME REVIEWING THE BUDGET AND MADE SOME RECOMMENDATIONS ON ITEMS THAT HE FELT WERE OVER BUDGETED. COUNCILMEMBER BASS STATED THAT THIS IS MAINLY JUST AN ESTIMATE. MAYOR PRO -TEM WOMBLE RESPONDED YES, BUT THE PROBLEM IS THE EXPENDITURES ARE GOING TO EQUAL THE ESTIMATED REVENUES SO IF YOU SPEND THE ESTIMATED REVENUES, AND YOU DO NOT COLLECT ALL THE REVENUES, TOO MUCH MONEY WILL BE SPENT BEFORE THE END OF THE YEAR. COUNCILMEMBER BASS STATED THAT HE AGREED BUT THERE ARE SOME ITEMS THAT ARE OVER BUDGETED THAT WOULD COME CLOSE TO BALANCING OUT. HE ADDED THAT WE CAN NOT CHANGE EVERY ITEM TO BALANCE THE BUDGET. MAYOR PRO -TEM WOMBLE STATED THAT HE WAS PROPOSING THAT THE POSITION FOR THE LIBRARY BE DELETED. HE ADDED THAT HE IS ALSO SUGGESTING THAT THE 3% COST OF LIVING RAISE FOR CITY EMPLOYEES BE REDUCED TO 2'/2% AND THE LONGEVITY BE ELIMINATED. MAYOR PRO -TEM WOMBLE STATED THAT IN REFERENCE TO THE CONTRIBUTIONS TO COMMUNITY SERVICE THAT I-IE WAS UNAWARE OF THE NEED FOR THE $4000 CONTRIBUTION TO BETSY JOHNSON HOSPITAL SO HE RECOMMENDED THAT IT BE ZERO. HE ADDED THAT HE WOULD PROPOSE A $25,000 GRANT FOR ECONOMIC DEVELOPMENT TO THE HARNETT FORWARD TOGETHER COMMITTEE AND A $10,000 GRANT FOR THE DUNN AREA CHAMBER OF COMMERCE BEAUTIFICATION PROJECT. MAYOR PRO -TEM WOMBLE STATED THAT THE IMPACT FEES FOR THE WATER AND SEWER FUND IS BUDGETED AT $70,000 WHICH IS AN ANTICIPATED NUMBER, AND HE SUGGESTED CHANGING THAT ITEM TO $10,000 AND ELIMINATING THE JET -VAC TRUCK AND THE FUND BALANCE USAGE. HE ADDED THAT IF THE IMPACT FEES ARE COLLECTED THAT ARE EXPECTED, THEY CAN BE APPROPRIATED AT THAT TIME TO PURCHASE THOSE CAPITAL ITEMS. HE ADDED THAT HE IS ALSO SUGGESTING A 5% INCREASE ON WATER AND SEWER RATES TO ALL CUSTOMERS BECAUSE COMPARED TO THE SURROUNDING PRODUCERS WE ARE STILL BELOW THEIR RATES, COUNCILMEMBER BASS STATED THAT HE THOUGHT MAYOR PRO -TEM WOMBLE IS WRONG IN PULLING MONEY FROM THE CITY EMPLOYEES AND SENDING IT TO LILLINGTON FOR ECONOMIC DEVELOPMENT. HE ADDED THAT HE THINKS IT IS A WASTE OF TIME TRYING TO CHANGE THE WHOLE BUDGET WHEN IT IS ONLY AN ESTIMATED PROPOSAL. HE FURTHER STATED THAT THE EMPLOYEES NEED LONGEVITY BECAUSE IT IS A BONUS FOR WORKING FOR THE CITY FOR MANY YEARS, IT IS NOT A RAISE. COUNCILMEMBER TART STATED THAT HE APPRECIATES THE TIME THAT MAYOR PRO - TEM WOMBLE HAS PUT IN WORKING ON THE BUDGET AS A CPA. HE ADDED HE DID NOT WANT TO RAISE TAXES BUT THEY MAY NEED TO. 712 COUNCILMEMBER BASS STATED THAT HE WAS NOT CONDEMNING ANYONE, BUT THE POINT HE IS TRYING TO MAKE IS THAT THE CITY AND THE CITY EMPLOYEES COME FIRST. HE ADDED THAT HE KNOWS THAT THE CITY OF DUNN NEEDS ECONOMIC DEVELOPMENT AND BEAUTIFICATION OF THE CITY BUT FIRST COUNCIL IS OBLIGATED TO THE CITY AND ITS EMPLOYEES. COUNCILMEMBER TART STATED THAT 2 1 /2% IS AN INCREASE THAT KEEPS THE SALARIES LEVEL AND HE WAS NOT OPPOSED TO 1T. HE ADDED THAT HE WAS IN FAVOR OF ADDING A POSITION AT THE LIBRARY BECAUSE THEY WERE UNDERSTAFFED. MAYOR PRO -TEM WOMBLE STATED THAT HE WOULD LIKE TO POINT OUT THAT AT THE CONCLUSION OF THEIR SECOND FULL FISCAL YEAR THIS COUNCIL HAS PAID THE CITY EMPLOYEES ABOUT $900,000 MORE THAN THE PREVIOUS COUNCIL. HE ADDED HE DID NOT WANT ANYONE TO THINK THAT THIS COUNCIL HAS NOT BEEN GENEROUS TO THE CITY EMPLOYEES EVEN WITH A 2 1/2% INCREASE THIS YEAR. INTERIM CITY MANAGER AUTRY ASKED CITY ATTORNEY GODWIN IF IT , WOULD BE APPROPRIATE TO HAVE COUNCIL VOTE ON INDIVIDUAL ITEMS ONE AT A TIME SO THAT HE CAN HAVE THE PROPOSED BUDGET FINALIZED ON JUNE 1, 2001. CITY ATTORNEY GODWIN RESPONDED YES. HE ADDED THAT THE MOTIONS NEED TO BE CLEAR THAT THIS IS ONLY A PROPOSED BUDGET. MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER MCDOUGAL TO LEAVE IN THE PROPOSED BUDGET THE SALARY INCREASES AT 3% PLUS THE LONGEVITY PAY FOR ALL EMPLOYEES. MOTION CARRIED 5 -1. AYES: BASS MCDOUGAL ROBINSON TART SUMNER NOES: WOMBLE MOTION BY MAYOR PRO -TEM WOMBLE, SECONDED INCLUDE IN THE PROPOSED BUDGET THE $10,000 FOR PROJECT. MOTION CARRIED 5 -1. AYES: WOMBLE NOES: BASS SUMNER MCDOUGAL TART ROBINSON BY COUNCILMEMBER SUMNER TO THE IMAGE AND BEAUTIFICATION MOTION BY MAYOR PRO -TEM WOMBLE, SECONDED BY COUNCILMEMBER TART TO INCLUDE IN THE PROPOSED BUDGET A GRANT FOR $25,000 TO THE HARNETT FORWARD TOGETHER COMMITTEE INCORPORATED FOR PROJECTS BENEFITING THE CITY OF DUNN. AYES: WOMBLE NOES: ROBINSON TART BASS SUMNER MCDOUGAL 3:3 MAYOR OUDEH BROKE THE TIE BY VOTING AGAINST THE GRANT. MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER TART TO APPROVE IN THE PROPOSED BUDGET A RAISE IN BULK RATE WATER AND SEWER CUSTOMERS FROM 2' /z% TO 5 %. MOTION UNANIMOUSLY APPROVED. MOTION BY MAYOR PRO -TEM WOMBLE, SECONDED BY COUNCILMEMBER TART NOT TO PURCHASE THE JET -VAC TRUCK IN THIS PROPOSED BUDGET YEAR. MOTION DENIED 4 -2. AYES: WOMBLE NOES: BASS TART MCDOUGAL ROBINSON SUMNER MOTION BY COUNCILMEMBER TART, SECONDED BY COUNCILMEMBER SUMNER TO INCLUDE IN THE PROPOSED BUDGET AN INCREASE IN GARBAGE FEES FROM $6 TO $8. MOTION CARRIED 4 -2. AYES: WOMBLE NOES: BASS ROBINSON MCDOUGAL SUMNER TART 713 MOTION BY MAYOR PRO -TEM WOMBLE TO AMEND THE PROPOSED BUDGET TO INCORPORATE THE ITEMS THAT HE SUGGESTED TO COUNCIL BE ADOPTED. MOTION DIED FOR LACK OF A SECOND. MAYOR OUDEH ADJOURNED 8 E N- R v/� • H CAR \) \ � �ryJG 111171 TINA M. SILLS DEPUTY CLERK THE MEETING AT 8:10 P.M. :v4t UDEH MAYOR