03232000512
DUNN CITY COUNCIL
CITY OF DUNN, NORTH CAROLINA
MINUTES
THE CITY COUNCIL OF THE CITY OF DUNN HELD A SPECIAL CALL MEETING ON
MARCH 23, 2000 AT 5:30 P.M. IN THE DUNN MUNICIPAL BUILDING. PRESENT WAS
MAYOR PRO -TEM MIKE WOMBLE AND COUNCILMEMBERS PAUL BASS, CAROLYN
MCDOUGAL, GEORGE ROBINSON, TOBY SUMNER AND JOEY TART. ALSO PRESENT
WERE CITY MANAGER CARL DEAN, CITY CLERK JOYCE VALLEY, CHIEF BUILDING
( INSPECTOR RICKY PARSON, FINANCE DIRECTOR RENEE' DAUGHTRY, CITY ENGINEER
ED POWELL, PUBLIC WORKS DIRECTOR TIM HOLLOMAN AND ASSISTANT PUBLIC
WORKS DIRECTOR JOE CAMPBELL.
MAYOR ABRAHAM OUDEH ARRIVED AT 5:45 P.M. AND OPENED THE MEETING.
INVOCATION
MAYOR OUDEH ASKED COUNCILMEMBER TART TO GIVE THE INVOCATION.
AFTERWARD, THE PLEDGE OF ALLEGIANCE WAS REPEATED.
CRITICAL NEEDS WATER AND SEWER GRANT LOAN PROGRAM
MAYOR OUDEH YIELDED TO CITY MANAGER DEAN WHO STATED THAT THE CITY
WAS SUCCESSFUL IN SECURING A GRANT AWARD OF $2 MILLION DOLLARS AND A
STATE LOAN OF- $1 MILLION DOLLARS FROM THE N.C. DEPARTMENT OF
EMERGENCY MANAGEMENT FOR IMPROVEMENTS AT THE WATER TREATMENT
PLANT. HE FURTHER STATED THAT STAFF IS ALSO CONSIDERING THE REQUEST
OF LOAN FUNDS TO DO A COUPLE OF THE PROJECTS LISTED AS CRITICAL NEEDS,
SPECIFICALLY THE JUNIPER CREEK OUTFALL ( #2) AND A PORTION OF THE
EASTSIDE FORCEMAIN, AMOUNTING TO APPROXIMATELY $500,000.00. HE ADDED
THAT THERE IS A STRONG POSSIBILITY THAT THE CITY COULD RECEIVE AN
ADDITIONAL $200,000.00 GRANT FOR THIS PORTION OF THE PROJECT AND DUE TO
DEADLINES INVOLVING THESE GRANT FUNDS, ACTION MUST BE EXPEDITED IN
ORDER TO PROCEED WITH THE PROJECT. HE YIELDED TO CITY ENGINEER ED
POWELL FOR EXPLANATION OF THE PROGRAM.
- CITY ENGINEER POWELL STATED THAT IT WAS A PLEASURE TO INFORM COUNCIL
THAT HIS FIRM WAS ABLE TO SECURE A GRANT AWARD OF $2 MILLION DOLLARS
AND A STATE LOAN OF $1 MILLION DOLLARS THROUGH A GRANT PROGRAM
OFFERED BY THE DEPARTMENT OF EMERGENCY MANAGEMENT. HE BRIEFED
COUNCIL ON THE HISTORY OF THE GRANT PROGRAM, WHICH THE CITY FIRST
APPLIED FOR IN MARCH, 1999. HE STATED THAT THE FIRST SERIES OF BOND
OFFERS WERE ISSUED IN JULY, 1999 AND THE CITY WAS NOT FORTUNATE TO BE
INCLUDED IN THOSE OFFERS DUE TO THE PRIORITY RATING OF THESE
PROGRAMS; HOWEVER, AFTER THE STORMS OF THE SUMMER AND FALL OF 1999
THE PROGRAM WAS DELAYED AND THE FINAL SUBMITTAL DATE WAS MOVED TO
FEBRUARY, 2000.
CITY ENGINEER POWELL STATED THAT THE CITY ORIGINALLY APPLIED FOR $3
MILLION DOLLARS IN WATER FACE,ITY IMPROVEMENT PROGRAMS AND $3
MILLION DOLLARS IN WASTEWATER FACILITY IMPROVEMENT PROGRAMS;
HOWEVER, THE SECRETARY OF THE DEPARTMENT OF ENVIRONMENT AND
NATURAL RESOURCES, THROUGH AUTHORITY GIVEN IN THE PROGRAM WAS
AUTHORIZED TO REDUCE THE AMOUNT OF GRANTS FROM $3 MILLION DOLLARS
TO $2 MILLION DOLLARS AND SU?PLEMENT THE GRANTS WITH A LOAN
PROGRAM. HE ADDED THAT THE CITY WAS NOTIFIED IN MID-MARCH THAT
GRANTS WERE AWARDED IN THE WATER PROGRAM AND THAT THE CITY WOULD
NOT BE FUNDED IN THE WASTEWATER AREA DUE TO THE CITY'S NEEDS BEING IN
THE SYSTEM AND NOT THE TREATMENT OF WASTEWATER.
CITY ENGINEER POWELL STATED THAT THE REASON HE IS ADDRESSING COUNCIL
( AT A SHORT NOTICE SPECIAL MEETING IS BECAUSE HIS FIRM WAS NOT
AUTHORIZED TO PROCEED WITH ANY DESIGN AT THE WATER PLANT AND IN
ORDER TO PROCEED WITH THE PROGRAM, THE CITY NEEDS TO PROVIDE
NECESSARY CONSTRUCTION PLANS AND SPECIFICATIONS TO RECEIVE A PERMIT
BY JULY 7, 2000. HE STATED THAT HE WOULD BE GLAD TO ANSWER ANY
QUESTIONS FROM COUNCIL CONCERNING THE PROGRAM.
MAYOR OUDEH ASKED HOW MUCH THE ENTIRE PROJECT WOULD COST
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CITY ENGINEER POWELL RESPONDED $3 MILLION DOLLARS, OF WHICH $1
MILLION WOULD BE A LOAN AND $2 MILLION WOULD BE A GRANT FROM THE
STATE.
COUNCILMEMBER BASS ASKED IF THE CITY MUST BORROW $500- $700,000.00 TO
ASSURE THE $2 MILLION DOLLAR GRANT.
CITY ENGINEER POWELL RESPONDED YES, THAT IN ORDER TO RECEIVE THE
GRANT, THE CITY MUST CONSTRUCT THOSE FACILITIES THAT PROVIDED THE
CITY WITH THE PRIORITY TO RECEIVE FUNDING. HE STATED THAT THOSE
CRITICAL NEEDS ARE TO INSTALL A 3 MG CLEARWELL, ALUM SLUDGE
RENOVATIONS, WATER TREATMEN" PLANT AND RAW WATER PUMP STATION1
GENERATORS. HE ADDED THAT SOME OF THESE PROJECTS COULD BE DELAYED;
HOWEVER, IBEY MUST BE DONE LATER. HE FURTHER STATED THAT HE HAD
RECOMMENDED TO STAFF THAT TIM CITY PROCEED WITH THE DESIGN OF THE
WHOLE PROGRAM, ACCEPT THE $2 MILLION DOLLAR GRANT, AGREE TO THE
LOAN AND TAKE THE SCADA SYSTEM, LABORATORY EXPANSION AS AN
ALTERNATE BID AND WHEN BIDS A-RE RECEIVED AND ACTUAL CONSTRUCTION
AMOUNTS ARE DETERMINED, THAT AREA COULD BE FINALIZED AND COUNCIL
COULD MAKE A DETERMINATION ONCE THE ACTUAL NUMBERS ARE PRESENTED.
MAYOR PRO -TEM WOMBLE ASKED IF ONCE THE CITY AGREES TO THE LOAN,
WERE THERE ANY PENALTIES IF THE CITY PRE -PAYS THE LOAN.
CITY ENGINEER POWELL RESPONDED THAT THERE WERE NO PENALTIES FOR
PREPAYMENT TO HIS KNOWLEDGE HE ADDED THAT ON MOST EVERY LOAN
PROGRAM THAT THE CITY HAS HAD IN WATER AND WASTEWATER, THERE HAVE
BEEN SOME PRE - PAYMENT OPTION'S AND IN SOME INSTANCES, WHERE THERE
HAVE BEEN SOME FEDERAL LOW INTEREST LONG -TERM LOANS, FEDERAL LOANS
HAVE BEEN MOVED TO BANK LOANS AT A REDUCED AMOUNT OF PRINCIPAL AND
THEY USUALLY WORK WITH MUNICIPALITIES TO REDUCE THE AMOUNT OF
INDEBTEDNESS.
COUNCILMEMBER BASS ASKED IF THE CITY MUST BORROW $500,0004700,000 OR
COULD THE CITY PAY THIS AMOUNT OUT OF SURPLUS FUNDS.
CITY ENGINEER POWELL STATED THAT IN THIS PARTICULAR AREA, HE THINKS
THE CITY COULD PAY OUT OF SURPLUS; HOWEVER, NOBODY HAS EVER ASKED
THAT QUESTION BECAUSE OFFERS HAVE JUST COME ABOUT THAT WERE HALF
GRANT AND HALF LOAN. HE ADDED THAT THE CITY WOULD BE USING STATE
FUNDING CAPABILITY BY TAKING A LOAN AND IF THE CITY DOES NOT NEED IT,
HE WOULD IMAGINE THAT THE CITY COULD TAKE THEIR GRANT AND SPEND ITS
MONEY IN THIS PARTICULAR PROGRAM.
MAYOR OUDEH ASKED WHAT WAS -HE INTEREST RATE.
CITY ENGINEER POWELL RESPONDED 5.5 %.
MAYOR OUDEH STATED THAT EVEN IF THE CITY HAS SURPLUS FUNDS, HE WOULD
RATHER KEEP THE MONEY IN THE CITY OF DUNN RATHER THAN GO SOMEWHERE
ELSE AND BORROW MORE.
MAYOR PRO -TEM WOMBLE STATED THAT THE METHOD USED TO BORROW THE
MONEY DEPENDS ON A LOT OF CIRCUMSTANCES.
CITY ENGINEER POWELL STATED THAT THE ONLY CRITICAL TIME ELEMENT AT
THIS TIME IS TO GET STARTED WITS DESIGNS AND THE CITY HAS ONLY RECEIVED
NOTIFICATION OF THE GRANT AWARD.
COUNCILMEMBER SUMNER ASKED IF COUNCIL MUST ALSO LOOK AT THE
WASTEWATER SIDE OF THIS PROJECT.
CITY ENGINEER POWELL STATED THAT THE CITY DID NOT RECEIVE A CRITICAL
NEEDS GRANT OFFER ON THE WASTEWATER PROJECT; HOWEVER, THE CITY ONLY
APPLIED FOR A GRANT. HE ADDED THAT ALL AVAILABLE PROGRAM GRANT
FUNDS IN THIS 1998 BOND PROGRAM HAVE NOW BEEN EXPANDED WITH A LARGE
POOL OF LOAN FUNDS REMAINING AND THE RURAL CENTER HAS AN ONGOING
SUPPLEMENTAL GRANT PROGRAM AVAILABLE WHEREBY GRANTS OF UP TO
$200,000 ARE AVAILABLE TO SUPPLEMENT LOAN FUNDS ON WATER AND
WASTEWATER PROJECTS.
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HE STATED THAT WHILE ALL ITEMS IDENTIFIED IN THE CITY'S PROPOSAL GRANT
PROGRAM WERE CONSIDERED CRITICAL AND WILL NEED TO BE ADDRESSED, TWO
SPECIFIC PROJECTS REPRESENT CONDITIONS WHICH COULD FAIL AT ANY TIME
AND REQUIRE EMERGENCY REPAIRS OR REPLACEMENT: UPPER 1,700 FEET OF THE
JUNIPER CREEK OUTFALL SEWER AND THE UPPER 2,400 FEET OF THE EASTSIDE
FORCEMAIN WHICH ARE DETERIORATED DUT TO EXTREME HYDROGEN SULFIDE
ATTACK.
HE FURTHER STATED THAT THE ESTIMATED COST OF THESE TWO PROJECTS IS
APPROXIMATELY $750,000.00 AND SUCCESS IN SECURING A SUPPLEMENTAL
GRANT OF $200,000.00 FROM THE RURAL CENTER AND A $550,000.00 LOAN FROM
THE 1998 BOND PROGRAM WOULD FUND THESE NEEDED IMPROVEMENTS. HE
u ADDED THAT UPON COUNCIL APPROVAL, THE EXISTING PRELIMINARY
ENGINEERING REPORT COULD BE REMISED AND PREPARATION OF THE NEEDED
APPLICATIONS FOR THESE GRANT AND LOAN FUNDS, WITH A COST OF
APPROXIMATELY $2,500 COULD MEET THE SELECTION DEADLINE OF MARCH 31,
2000.
COUNCILMEMBER TART ASKED WHAT WOULD HAPPEN IF COUNCIL DOES NOT
ACCEPT THE AWARD OF THE GRANT AND LOAN.
CITY ENGINEER POWELL STATED THAT THE CRITICAL NEED ITEMS DISCUSSED
WOULD BE REPAIRED WITH LOCAL FUNDS.
AFTER DISCUSSION, MOTION BY MAYOR PRO -TEM WOMBLE, SECONDED BY
COUNCILMEMBER ROBINSON TO ACCEPT $2,000,000.00 GRANT FROM THE N.C.
DEPARTMENT OF EMERGENCY MANAGEMENT AND LOAN WITH THE AMOUNT TO
BE DETERMINED, PROCEED WITH THE DESIGN AND ENGINEERING OF THE WATER
TREATMENT PLANT, AND RESOLUTION AUTHORIZING THE MAYOR TO SIGN
REVISED CRITICAL NEEDS WASTEWATER LOAN APPLICATION AND A
SUPPLEMENTAL RURAL CENTER GRANT APPLICATION AND MAKE ANY
ASSURANCES NEEDED THERETO. MOTION UNANIMOUSLY APPROVED
(ATTACHMENT #1)
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