02212002N
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
TIIE CITY COUNCIL OF THE CITY OF DUNN HELD A SPECIAL CALL MEETING ON
THURSDAY, FEBRUARY 21, 2002, AT 6:00 P.M. IN THE DUNN MUNICIPAL BUILDING.
PRESENT WAS MAYOR ABRAHAM OUDEH, MAYOR PRO -TEM MIKE WOMBLE,
COUNCILMEMBERS CAROLYN MCDOUGAL, TOBY SUMNER, GEORGE ROBINSON, JOEY
TART, AND PAUL BASS. ALSO PRESENT WAS INTERIM CITY MANAGER RONNIE
AUTRY, POLICE CHIEF PAT GODWIN, FINANCE DIRECTOR RENEE' DAUGHTRY,
RECREATION DIRECTOR PERRY HUDSON, INTERIM HUMAN RESOURCES OFFICER
MOSES GALLION, CITY PLANNER/CODE ENFORCEMENT OFFICER KELLY BOLLINGER,
PUBLIC WORKS SUPERINTENDENT THOMAS JERNIGAN, LIBRARIAN DEBORAH
MELVIN, DEPUTY CLERK DEBRA WEST, AND PUBLIC UTILITIES DIRECTOR JOE
CAMPBELL.
INVOCATION
MAYOR OUDEH OPENED THE MEETING AT 6:00 P.M. AND ASKED PAUL BASS TO GIVE THE
INVOCATION. AFTERWARDS, THE PLEDGE OF ALLEGIANCE WAS REPEATED.
BUDGET ADJUSTMENTS
INTERIM CITY MANAGER RONNIE AUTRY STATED THAT TWO (2) BUDGET AMENDMENTS
WERE ATTACHED FOR COUNCIL REVIEW. THE FIRST AMENDMENT IS FROM THE
RECREATION DEPARTMENT. FUNDS NEED TO BE PULLED FROM THE CONTRACT LABOR
& ATHLETIC EQUIPMENT ACCOUNT TO PLACE IN THE CAPITAL OUTLAY ACCOUNT TO
COVER THE EXISTING PURCHASE OF PLAYGROUND EQUIPMENT THAT WAS APPROVED AT
THE FEBRUARY COUNCIL MEETING. HE ADDED THE REASON THE MONEY WAS REMOVED
WAS A RESULT OF FIVE (5) SCOREBOARDS BEING DONATED TO THE PARKS. IN ORDER TO
INSTALL THESE SCOREBOARDS, THE LABOR WAS FUNDED BY THE CITY. THIS
MONEY WAS USED FROM THE CAPITAL OUTLAY ACCOUNT. HE FURTHER STATED THE
REASON FOR THE BUDGET AMENDMENT IS TO CORRECT THE CAPITAL OUTLAY ACCOUNT
BY PUTTING FUNDS BACK IN THE ACCOUNT. HE STATED IF ANY QUESTIONS, PERRY
HUDSON WAS PRESENT.
MAYOR PRO -TEM WOMBLE ASKED MR. AUTRY IF THIS AMOUNT WAS OR WAS NOT
PREVIOUSLY BUDGETED. HE QUESTIONED IF THE LABOR WAS BUDGETED.
INTERIM CITY MANAGER AUTRY RESPONDED THE LABOR FOR THE DONATED
SCOREBOARDS WAS NOT BUDGETED. MR. AUTRY ASKED PERRY HUDSON TO EXPLAIN.
RECREATION DIRECTOR, PERRY HUDSON STATED THAT COCA COLA DONATED FIVE (5)
SCOREBOARDS WORTH $30,000.00 TO THE CITY OF DUNN UNDER THE ASSUMPTION THAT
THE CITY WOULD INSTALL THEM AT $2,000.00 EACH. MR. HUDSON EXPLAINED HE DID
NOT REALIZE THE LABOR COST TO INSTALL THESE SCOREBOARDS WOULD HAVE TO
COME FROM THE CAPITAL OUTLAY ACCOUNT.
MAYOR PRO -TEM WOMBLE QUESTIONED SHOULD THIS NOT HAVE COME BEFORE THE
COUNCIL BEFORE SPENDING $10,000.00. HE ADDED THAT GUIDELINES WERE
ESTABLISHED BY THE COUNCIL THAT EXPENDITURES OVER CERTAIN AMOUNTS WOULD
COME BEFORE THE COUNCIL FOR APPROVAL AND THIS EXPENDITURE CLEARLY
REACHED THAT LIMIT. MR. AUTRY STATED HE AGREED.
INTERIM CITY MANAGER AUTRY STATED THE SECOND BUDGET AMENDMENT WOULD RE-
APPROPRIATE MONEY IN THE POWELL BILL FUND. HE ADDED DURING THE LAST
COUNCIL MEETING, MAYOR PRO -TEM WOMBLE REQUESTED AMOUNTS BE REMOVED
FROM THE EXISTING BUDGET TO FUND THE FRIENDLY ROAD PROJECT.
HE FURTHER ADDED FUNDS WOULD BE TAKEN FROM CAPITAL OUTLAY AND PUT BACK
INTO THE CONSTRUCT - RECONSTRUCT ACCOUNT WHICH ONLY HAD A BALANCE OF
$3000.00 TO $4000.00. THE CONSTRUCT - RECONSTRUCT ACCOUNT WOULD BE USED FOR
PURCHASING ASPHALT AND STONE FOR THE REMAINDER OF THIS BUDGET YEAR. HE
FURTHER STATED MONEY THAT IS IN CAPITAL OUTLAY WOULD NOT BE SPENT THIS
BUDGET YEAR
MAYOR OUDEH ASKED IF THERE WAS ANYMORE DISCUSSION. MAYOR PRO -TEM
WOMBLE STATED I-IE DOESN'T OPPOSE $30,000.00 WORTH OF SCOREBOARDS BEING
DONATED TO THE CITY, BUT WOULD LIKE THE COUNCIL ADVISED IN THE FUTURE
BEFORE ACCEPTING SOMETHING THAT REQUIRES THE CITY TO SPEND $10,000.00.
RECREATION DIRECTOR, PERRY HUDSON RESPONDED HE DID NOT REALIZE THIS
EXPENDITURE COULD NOT COME FROM THE MAINTENANCE LINE ITEM ACCOUNT BUT
WAS INFORMED AFTER THE FACT THAT THE LABOR COST WOULD HAVE TO COME FROM
CAPITAL OUTLAY FUNDS. HE ADDED THAT THE COUNCIL WOULD HAVE BEEN INFORMED
HAD HE KNOWN THIS.
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MOTION MADE BY COUNCILMEMBER TART, ,SECONDED BY COUNCILMEMBER
MCDOUGAL TO APPROVE BUDGET AMENDMENTS #57458. MOTION UNANIMOUSLY
APPROVED. (ATTACHMENT #1)
INTERIM CITY MANAGER AUTRY STATED THAT THE NEXT ITEM IN THE PACKET WAS
FROM FINANCE DIRECTOR, RENEE' DAUGHTRY. ATTACHED THE COUNCIL WOULD FIND
SEVERAL ITEMS FOR THE COUNCILS REVIEW. HE ADDED THESE ITEMS CONSISTED OF A
LETTER SENT TO GOVERNOR EASLEY REQUESTING THE RELEASE OF FUNDS, MEMOS
SENT TO DEPARTMENT HEADS REFERENCING THE HIRING AND SPENDING FREEZE, A
FUND BALANCE ANALYSIS OF THE GENERAL FUND, UPDATED REVENUE PROJECTIONS
FROM THE EXISTING BUDGET, PROPOSED AMENDED REVENUES FROM NUMBERS THEY
HAVE AT THIS TIME. HE FURTHER STATED FROM THESE NUMBERS, THE COUNCIL WILL
NOTICE $572,421.00 OF THE FUND BALANCE THAT IS CURRENTLY BUDGETED.
MR. AUTRY STATED DUE TO THE RECESSION, THE GENERAL FUND INVESTMENT INCOME
IS PROJECTED TO BE $120,000.00 BELOW BUDGET AND SALES TAX REVENUE IS
PROJECTED TO BE $70,000.00 BELOW BUDGET. HE ADDED GOVERNOR EASLEY'S
DESIGNATION OF THE LOCAL GOVERNMENT REIMBURSEMENTS AND STATE COLLECTED
REVENUES WILL CREATE AN ADDITIONAL $394,762.00 REVENUE SHORTFALL FOR THE
CITY. HE FURTHER ADDED $343,000.00 WAS AN ESTIMATE FROM THE LOCAL
GOVERNMENT COMMISSION. MR. AUTRY STATED THE CURRENT BUDGET WOULD NEED
TO BE AMENDED TO REFLECT THE $394,762.00 THAT WILL NOT BE RECEIVED FROM THE
STATE. HE ADDED ALL DEPARTMENT HEADS HAVE BEEN REQUESTED TO "GIVE BACK"
ANY AMOUNTS THEY FELT WOULD NOT INTERFERE WITH OPERATIONS. ALL
DEPARTMENTS TOGETHER HAVE OFFERED BACK $64,500.00
INTERIM MANAGER AUTRY STATED THAT HE ALONG WITH THE FINANCE DIRECTOR
WOULD LIKE TO HOLD A BUDGET WORK SESSION ON THE EXISTING BUDGET WITHIN THE
NEXT COUPLE OF WEEKS TO GET FEED -BACK FROM THE COUNCIL ON THIS ISSUE. HE
ADDED WHEN THE PRESENT NUMBERS ARE COMPARED TO THE GENERAL FUND
REVENUE PROJECTIONS, THERE IS APPROXIMATELY 1.1 MILLION DOLLARS TOTAL
EXPENDITURE OUT OF THE GENERAL FUND.
MAYOR PRO -TEM WOMBLE ASKED IF INTERIM MANAGER AUTRY AND FINANCE
DIRECTOR, RENEE' DAUGHTRY COULD HAVE A PRELIMINARY PICTURE IN
APPROXIMATELY ONE MONTH FOR THE YEAR 02 -03 BUDGET AND IF NEXT YEARS'
BUDGET ISN'T ANY BETTER, THEY MAY NEED TO TAKE MORE DRASTIC ACTION. INTERIM
CITY MANAGER RESPONDED THAT HE CAN TRY TO GET SOME PRELIMINARY FIGURES.
MAYOR PRO -TEM STATED THE CITY WILL BE GOING INTO THE NEXT BUDGET YEAR
THREE QUARTERS OF A MILLION DOLLARS SHORT TO BEGIN WITH AND HE DOESN'T
ANTICIPATE RECEIVING STATE REVENUE NEXT YEAR. HE ADDED IF NEXT YEARS'
BUDGET IS NO BETTER, THEN OBVIOUSLY THIS WILL HAVE AN EFFECT ON THINGS THE
COUNCIL MAY WANT TO DO IMMEDIATELY.
COUNCILMEMBER BASS STATED WHEN ALL CUTS HAVE BEEN MADE, WHAT ELSE CAN BE
DONE.
MAYOR PRO -TEM WOMBLE RESPONDED HE AGREED, BUT SPENDING MUST BE KEPT
WITHIN THE REVENUES.
MAYOR OUDEH SUGGESTED MR. AUTRY AND MS. DAUGHTRY GOING BACK TO THE
DEPARTMENT HEADS TO DISCUSS THIS MATTER AND 'THEN COME BACK WITH
SUGGESTIONS AND PLAN A BUDGET WORK SESSION AS SOON AS POSSIBLE.
INTERIM CITY MANAGER AUTRY ASKED MAYOR OUDEH IF THE COUNCIL WANTED TO
LOOK AT THE PROJECTIONS FOR NEXT YEAR AS MAYOR PRO -TEM WOMBLE HAD
SUGGESTED. HE ADDED WITH THE PRESENT BUDGET SUGGESTIONS ALONG WITH NEXT
YEAR PROJECTIONS, IT COULD TAKE UP TO SIX WEEKS TO BRING BACK A REPORT.
MAYOR PRO -TEM WOMBLE STATED INTERIM AUTRY AND RENEE' ARE DOING ALL THEY
CAN TO SUSPEND SPENDING AND TO GIVE RENEE' ALL THE TIME SHE WOULD NEED TO
COME UP WITH A MORE DETAIL UPDATE.
MS. DAUGHTRY QUESTIONED IF THEY WERE REFERRING TO NEXT YEARS' BUDGET.
MAYOR PRO -TEM WOMBLE RESPONDED THIS YEAR BUDGET. HE SUGGESTED TO REFINE
AREAS OF THE PRESENT BUDGET AND FOR MR. AUTRY TO SUGGEST AREAS OF CUT -BACK
TO THE COUNCIL.
MAYOR PRO -TEM WOMLE STATED THAT IN REFERENCE TO THE FEBRUARY 15, 2002 MEMO
CONCERNING THE 30 -DAY HIRING FREEZE, HE WOULD LIKE TO REQUEST THE FREEZE
STAY IN EFFECT UNTIL THE COUNCIL MAKES A DECISION ABOUT LIFTING THE FREEZE.
COUNCILMEMBER BASS STATED WHEN THE COUNCIL MEETS IN MARCH, THIS ISSUE CAN
BE LOOKED AT CLOSER THEN.
0V7
COUNCILMEMBER SUMNER STATED HE DIDN'T THINK BIG DECISIONS NEEDED TO BE
MADE RIGHT NOW BECAUSE OF THE ECONOMY.
COUNCILMEMBER ROBINSON QUESTIONED IF ALL THE COUNCILMEMBERS WERE
INFORMED OF THE FEBRUARY 15 MEMO. INTERIM AUTRY RESPONDED THE MEMO WAS
A GENERAL STATEMENT AND THAT IS THE REASON ALL MEMOS WERE GIVEN TO EACH
COUNCILMEMBER FOR TONIGHT'S MEETING.
COUNCILMEMBER BASS STATED EVERYTHING SHOULD BE HANDLED THROUGH THE CITY
MANAGER'S OFFICE AND THEN BROUGHT TO THE COUNCIL SO ALL MEMBERS WOULD BE
INFORMED.
CITY ATTORNEY VACANCY
INTERIM CITY MANAGER AUTRY STATED THE COUNCIL WOULD FIND ATTACHED A FEE
STRUCTURE SUBMITTED BY MR. TILGHMAN POPE. HE ADDED THE RETAINER FEE WOULD
BE $400.00 PER MONTH WHICH COVERS ATTENDING REGULAR MEETINGS ONLY, $100.00
PER HOUR FEE AND $125.00 PER HOUR FEE FOR LITIGATION. ALSO ATTACHED IS A LIST
OF SURROUNDING CITY ATTORNEY FEES FOR CLINTON, ERWIN AND SMITHFIELD. HE
FURTHER STATED IF THE COUNCIL IS IN AGREEMENT, A MOTION WOULD NEED TO BE
MADE OFFERING THE POSITION OF CITY ATTORNEY TO MR. TILGHMAN POPE.
MOTION BY COUNCILMEMBER SUMNER, SECONDED BY COUNCILMEMBER ROBINSON TO
OFFER THE POSITION OF CITY ATTORNEY TO MR. TILGHMAN POPE. MOTION
UNANIMOUSLY APPROVED.
MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER MCDOUGAL
TO GO INTO CLOSED SESSION TO DISCUSS THE CITY MANAGER CANDIDATES AT 6:25
P.M. MOTION UNANIMOUSLY APPROVED.
CLOSED SESSION
NO ACTION WAS TAKEN DURING CLOSED SESSION. BY UNANIMOUS CONSENT, THE
CLOSED SESSION ADJOURNED AT 7:05 P.M.
MOTION BY COUNCILMEMBER MCDOUGAL, SECONDED BY COUNCILMEMBER
SUMNER TO APPROVE THE CASSETTE TAPE OF THE MEETING AS THE MINUTES OF
THE CLOSED SESSION. MOTION UNANIMOUSLY APPROVED.
MAYOR OUDEH RECONVENED THE REGULAR COUNCIL MEETING AT 7:06 P.Ml.
MAYOR OUDEH STATED FOUR (4) CANDIDATES FOR THE CITY MANAGER VACANCY
WOULD BE INTERVIEWED ON MARCH 7, 2002 AT 3:00 P.M. IN THE DUNN MUNICIPAL
OF
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CARO..�
DEBRA G. WEST
DEPUTY CLERK
TO DISCUSS, THE MEETING WAS ADJOURNED AT 7:08 P.M.
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UDEH
MAYOR