05242004MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Budget Work Session on Monday, May 24,
2004, at 4:00 p.m. in the Dunn Municipal Building. Present was Mayor J. Dal Snipes, Mayor Pro -
Tem Donnie Olds, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Billy R. Godwin,
Jr. and Joey Tart. Also present was City Manager Michael Uskiewicz, Assistant City
Manager/Public Works Director Ronnie Autry, Recreation Director Perry Hudson, Finance Director
Renee' Daughtry, City Attorney P. Tilghman Pope, City Clerk Debra West, and Daily Record
Reporter Lisa Farmer.
INVOCATION
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Mayor Snipes opened the meeting at 4:06 p.m. and asked Bryan Galbreath to give the invocation.
Afterwards, the pledge of allegiance was repeated.
Mayor Snipes yielded to Manager Uskiewicz.
Manager Uskiewicz asked that the council add a closed session to tonight's meeting for the purpose of
discussing an economic development issue.
Manager Uskiewicz reminded the council of the 6:30 p.m. Harnett Local Government meeting scheduled
for tonight at Heath's Steak House and advised the council of some topics that will be heard at the meeting,
including the rail update, and landfill tipping fee charges/credits.
Manager Uskiewicz gave each council member a copy of an updated proposed contract with Republic
Waste, noting that the City Attorney made a few changes. , Attorney Pope brought to the council's
attention, one significant change he made to the contract; he added a venue clause that states that if any
litigation resulted from the contract, the case must be heard in Harnett County. This will prevent the city
from being sued out of county or out of state. This is more cost effective for the city. Another provision
was added to the contract that would allow the city to deduct $5.00 per citizen, whose trash was not picked
up on a particular week. These monies will be deducted from the monthly service fee.
The council discussed the number of residential customers currently serviced, possibility of servicing the
(44) downtown trash containers twice a week, the problems with the downtown containers being used by
the downtown businesses as their primary source of garbage disposal and not the intended use for citizens
shopping downtown.
The council questioned if the city should commit to a three (3) year contract as proposed with Republic.
Public Works Director Autry explained that if this contract is awarded, Republic will provide new carts to
all residents. He stated that most other contractors would require a five (5) year contract; adding that it is a
large expense for a company to provide residents with new carts.
Manager Uskiewicz briefed the council on some of the agenda items scheduled to be heard at the June 3,
2004 council meeting. The public hearing for the FY 2004 -2005 budget is scheduled to be heard on June 3,
2004, however it will be up to the council to adopt the budget on the same night or call for a special
meeting for the purposes of adopting the budget later in June since two (2) council members will not be
present at the June 3` meeting.
In reference to fees, Manager Uskiewicz made council aware that some of the subdivision fees proposed
were removed. He stated that the vacation schedule was revised as requested during the last budget work
session.
Mr. Uskiewicz stated that the paving projects proposed at the last budgetwork session were reviewed. He
added that one project can be accomplished by some of the "savings received in the health
insurance rates. He further stated that his recommendation to council is to allocate funds to pave Tyler
Park effective July 1, 2004 and pave Tart Park and Resthaven Cemetery at a later date as revenues are
received. He stressed that he anticipated revenues`-to be higher than projected.
Mr. Uskiewicz stated that since the last work session, the city met with United Healthcare (UHC). UHC
proposed a more attractive dental health plan. This upgraded dental plan will cost $22.98/mth. per
employee instead of $11.72 as proposed at the last budget work session. In negotiations with UHC, health
care premiums reduced from a 12% increase to a 9% increase. He asked that with the health insurance
modifications proposed, upgraded dental plan and Tyler Park, they can effectively do all of these projects
with this proposed budget.
The council discussed prioritizing the paving projects.
Manager Uskiewicz stated that should council concur with the project, a new budget document with
modifications can be accomplished.
Further discussion was held with regard to the healthcare benefits, employee benefits, paving projects,
capital improvements and accomplishing these projects without tapping into the fund balance. Council
members commented that this was an excellent balanced budget.
Motion by Council Member Godwin, seconded by Mayor Pro -tem Olds that the council requests that the
City Manager implement in the proposed FY 2004 -2005 budget a paving priority of Tyler Park out of the
existing budgetary funds and to the extent that other revenues become available, they pave the road in
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Resthaven Cemetery next and if further additional monies become available, the parking lot at Tart Park be
paved. Motion unanimously approved.
The council had further discussion about the health insurance and dental plan offered by the city. They also
mentioned that few municipalities offer 100% health coverage. Council discussed their aggressiveness in
offering added benefits for the employees and suggested that each employee be given a print -out showing
their total fringe benefits when added to their gross salary. This will allow each employee to see their total
accumulated benefit package.
Manager Uskiewicz recapped on the Highway 421 project and recreation facility. He advised the council
that this project is considered high -risk according to the city's consultant with the Local Government
Commission (LGC). At the recommendation of the LGC consultant, he asked the council, that on a one-
time basis, they consider opening up the city's financial proposals to include Wachovia and Bank of
America as well as the local banks. He explained that they need to leverage as much opportunity as
possible to acquire the most attractive rate to finance the 1.6 million dollars over the next (15) years.
Finance Director Daughtry explained that high risk is factored in because the city does not own Highway
421 and there is not enough collateral to secure the 1.6 million dollar amount.
Mr. Uskiewicz stated that if the city can create an atmosphere of extreme competition, it will benefit the
city. This will have a fiscal impact on the city.
The council discussed that they would like to do business locally if they can, but they must look at the big
picture in this case.
Mr. Uskiewicz explained that the Manager can only make budget amendments up to $500.00. He will be
asking the council at the June 3, 2004 meeting, to increase manager amendments to $5,000.00.
Mayor Snipes asked that the council set a date for a special call meeting to adopt the FY 2004 -2005 budget.
He added that the public hearing will go forward at the June 3, 2004 meeting, however, since two Council
Members will not be present at that meeting, they have expressed an interest in being present when the
budget is adopted.
Motion by Council Member Maness, seconded by Mayor Pro -tem Olds to set a special call meeting for
June 15, 2004 at 10:00 a.m. in the council chambers for the purpose of adopting the FY 2004 -2005 budget
and any other items that may be required. Motion unanimously approved.
The council discussed the proposed vacation schedule. Manager Uskiewicz will present the council with a
revised proposed subdivision fee schedule
4:55 p.m. - Motion by Council Member Godwin, seconded by Council Member Galbreath to go into
closed session to discuss a matter pertaining directly to economic development pursuant to N.C.G.S.
143.318.11. Motion unanimously approved.
Closed Session adjourned at 5:32 p.m. and council reconvened the special call budget work session at
5:34 p.m.
Motion by Council Member Galbreath, seconded by Council Member Maness to approve the
minutes of the closed session as taken by City Attorney Pope. Motion unanimously approved.
With no further business to discuss, the meeting was adjourned at 5:35 p.m
Attest:
Debra G. West
City Clerk
C\1Y OF
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