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-
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TINA M. SILLS
DEPUTY CLERK
THE MEETING AT 8:10 P.M.
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UDEH
MAYOR