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01132015i[IT.] MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Regular Meeting on Tuesday, January 13, 2015, at 7:00 p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tern Chuck Turnage, Council Members Buddy Maness, N. Carnell Robinson, Frank McLean, and Billy Tart. Also present was City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, Finance Director Drew Holland, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Chief Building Inspector Steven King, Planning Director Samantha Wullenwaber, Police Chief Jimmy Pope, Recreation Director Perry Hudson, Human Resources Director Anne Thompson, Librarian Mike Williams, City Engineer Michael Goliber, Attorney P. Tilghman Pope, City Clerk Debra West, Administrative Support Specialist Melissa Dudley, and Daily Record Reporter Keilah Goff. Absent: Council Member Barfield, sick excused absence. INVOCATION Mayor Harris opened the meeting at 7:00 p.m. and asked Reverend Roy Johnson, Chaplain and Director of Pastoral Care for Harnett Health System, to give the invocation. Afterwards, the Pledge of Allegiance was repeated. AGENDA ADJUSTMENT AND APPROVAL Motion by Council Member Maness and seconded by Council Member Robinson to adopt the January 13, 2015 meeting agenda with changes, if any, as listed below. Agenda Items Added: • none Agenda Items Removed: • none Motion unanimously approved. PUBLIC COMMENT PERIOD Mayor Harris opened the floor for a (30) minute public comment period Mr. Johnnie A. McKoy, 1205 Porter Street, Goldsboro, NC spoke about his community concerns. He stated that he is a product of the City of Dunn, owns property and pays taxes. He explained that he conducted the protest of the Speedy Car Wash on the corner of E. Granville Street and N. Clinton Avenue in October of 2014 because he didn't like the idea that the people who ran the car wash stole a camera from his vehicle. He stated that the owner of the business signed a statement stating that he would repay him for the camera which was never done. Mr. McKoy said that as a citizen of this state, if he entered a business and was caught stealing, the penalty would be arrest by the police, taken to court and being found guilty, he would have to pay a fine and he would be restricted from ever entering that business again. He asked what happens when a business is found guilty of stealing from the citizens of Dunn and from the public; are they still allowed to continue business. While he was on the comer, he was threatened by the person who owned the business. He obtained a copy of the criminal background of the owner of this business and found that the owner of the business had a criminal record. He added that these people have been found guilty of stealing from him, and assaulting him when the owner of the business ran into him with their automobile and physically attacked him on the comer. He asked if the City of Dunn allows an individual with a criminal record to continue to conduct business in town. Hearing no further comments, Mayor Harris closed the public comment period. Council Member Robinson explained to Mr. McKoy, that the City Council does not customarily respond to comments made during the public comment period although they hear Mr. McKoy's concerns. Mayor Harris stated that the Council does not address questions posed during the public comment period but as Mayor, he accepts the points made by Mr. McKoy. CONSENTITEMS Minutes — Council considered approval of minutes of the December 9, 2014 City Council meeting. Monthly Performance Status Report-HTC — Council considered approval of the Quarterly Progress Report for the period of 10/01/2014 — 12/31/2014 for the NC Catalyst Grant 12 -C -2476 — Harnett Training School Apartments Project. Motion by Council Member Billy Tart and seconded by Council Member McLean to approve all consent items. Motion unanimously approved. ITEMS FOR DECISION Appeal Order of 109 Building Inspector — 603 Spring Branch Road - Royal Inn Mayor Harris explained that this is a request from the property owner of 603 Spring Branch Road (Royal Inn), Mr. Prakash Patel (owner at time of appeal period) and current owner, Mr. Mohammed Islam (who purchased the buildings upon this property from Mr. Patel on December 22, 2014), to appeal the Building Inspector's order allowing 60 days to make the proper repairs to this Motel. Mr. Patel has filed an appeal to request a hearing before the City Council to request additional time to complete the repairs for this structure. The Council shall render a decision on this appeal within a reasonable time. Mayor Harris asked for comments from Chief Building Inspector Steven King. Mr. King stated that after the Harnett County Health Department revoked their license, they notified the Inspections Department. The Building Inspector performed an inspection and found numerous violations, condemned and closed the structure until all necessary repairs have been made. Mr. King added that the property owner is asking for more than the statutory 60 days he can grant him, to make the repairs. Mr. King explained that the order was issued to Mr. Prakash Patel and the property was sold to Mr. Mohammed Islam on December 22, 2014. Mr. King stated that Mr. Islam was present at the hearing; adding that Mr. Islam made a statement even before he took ownership, that he would be the one making the repairs. Mr. Mohammed Islam came forward and stated that he bought the property on December 22, 2014 and he is trying his best to fix it. He is asking for one year to take care of the property because this is a big property. Council Member Robinson asked Mr. Islam if he had estimates and time frames on the actual repair to the property. Mr. Islam responded yes, he has estimates for the painting, parking lot, roof repair; he has cleaned the property and done some emergency roof repair but will have to wait until summertime to fix the roof. Ms. Islam came forward and stated that she comes from New York. She asked for additional time. Attorney Rebecca Davidson, representative for Jessie Anna Walker and sons, Jason and AI Walker, came forward to address the term of property owners. She stated that her clients own the land on which the motel that Mr. and Mrs. Islam have referred is located. Approximately forty -nine years ago, Ms. Walker's parents, Mr. & Mrs. John B. Lee entered into a lease agreement with some gentlemen from South Carolina for the property, which at that time was vacant, to be acquired by them and then for them to place upon it a motel. The lease that was negotiated at that time was a forty -nine year lease and that term is expiring in the summer of 2015. Ms. Walker and her sons had nothing to do with the negotiation of the lease. For all of these many years, the lease has been, in many instances, transferred and assigned in a series of instruments that moved it from one operator to the other. A number of years ago, Mr. Patel purchased at a foreclosure sale, the lease -hold, not the land. It is her clients' understanding, that after that acquisition, the motel over the last several years, has fallen into a state of great disrepair; they have not seen the interior of the motel but have certainly see the exterior and have great concern. Prior to Mr. Islam's transaction, Mr. Patel gave notice to her clients that he wished to renew the lease and contended that there was a provision in the original lease, to which he was not a party, that gave him the right to do that. Earlier this winter, her clients notified Mr. Patel that they did not agree to renew the lease and in fact, contended that there was no right of renewal. Shortly after they made that determination, they became aware of Mr. Patel's intent to convey what he had to Mr. Islam and they felt it was only fair that Mr. Islam be notified prior to his consummation of this transaction. Ms. Davidson stated that she talked with Ms. Lee Tart Malone, attorney for Ms. Islam, notified her of that and it is her understanding that Ms. Malone notified Mr. Islam prior to his decision to proceed with the transaction. They feel it is extremely important that the Council be aware of this and understand that they will be contending that there is no right of renewal and whatever Mr. Islam thinks he has, if anything, will terminate in June of 2015. Her clients have great concerns about the condition of this property. They wanted to address the Council and let them know the facts from their perspective as they make their determination. Mayor Harris restated to Ms. Davidson, that the lease will expire in June 2015, and Ms. Davidson's clients have no intention to renew the lease. Ms. Davidson agreed. Council Member Maness restated to Ms. Davidson, that the Islams were advised prior to any transaction taking place, by and through their attorney that her client did not intend on renewing this lease. Ms. Davidson responded yes, adding that during the initial hearing in Mr. King's office, she informed Mr. King and Mr. Islam and his business associate, Ms. Adair was present at that hearing. She had already informed Mr. Islam's attorney, Ms. Malone. Ms. Davidson stated that they chose to proceed regardless of this information. Mayor Harris restated to Ms. Davidson, that the Walkers' knew the state of repairs and knew why the County and City had condemned the property. Ms. Davidson responded that in communications between Mr. King and Ms. Walker, she attended the hearing on Ms. Walkers' behalf, saw the pictures and heard the description on the condition of the property, and she communicated that to the Walkers. Council Member Robinson asked if the property is condemned, who is responsible for the cost of demolishing the property. Attorney Pope responded that the property owner is ultimately responsible. If the Council adopts in the future, an ordinance that requires the demolition of the property, and the property owner does not comply with the ordinance, and the Council decides to proceed with the demolition, it would be a lien against the property. 110 Ms. Davidson stated that the statutes do use the term property owner and even though the statutes say it will be a lien against the real property, she thinks there is a very interesting question about how property owner would be interpreted because there is certainly an argument that the lease holder is the property owner; in fact, the notice was issued to Mr. Islam. This is a question that she has not been able to find in any case law. This is a very complex situation and it is a situation that her clients find themselves and felt it was very important for the Council to be fully informed. Mayor Harris asked City Attorney Pope that in this case, the City Council would have no bearing upon the argument between the owner of the real estate and that of the operator because under the City ordinance, the City would look to the owner of the real estate to recover costs for demolition and not the operator because at the point of demolition, the owner of the operation would be gone and it would convert back to the real estate owner and therefore if the City demolished the property, the City lien would be imposed to the real estate owner and not the owner of the operation. Attorney Pope explained that before the Council tonight and what, if any, relationship the City has with the civil dispute between the real estate owner and the motel owner, which is none. What is before the Council is an Order from the Building Inspector that gave 60 days to make the repairs to bring the property up to code. The only thing before this Council is to decide whether or not to uphold, modify or revoke that order. In the event that they uphold the order and the 60 days inn out; the Building Inspector still has to bring it before the Council for the Council to consider an ordinance to require the repairs to the property or the demolition of the property. In the event the Council adopted the ordinance and the property owner or operator, whichever the case may be, does not comply, it is shut down for a year under State Statute, they still have another year after that in which they have the opportunity to make the repairs and bring the property up to code. If it is not brought up to code at that point, it has to come back before the Council again for a final order to allow for the demolition. They are fourteen to fifteen months out and Ms. Davidson stated that the lease runs out in June so there is going to be a civil issue that doesn't involve the City of Dunn, between June and July between the operator and the property owner; it makes no difference to the City of Dunn on how it resolves itself. If the property is not up to code in 12 -14 months from now, or whatever that time frame may be, depending on who the owner is; if there is a legal issue of the Walkers now owning the property and the City needs to issue a new order to the current owner of the property to make sure they have a valid lien before they tear down, then they can look into those legal issues at that time. The only thing before the Council tonight, is whether or not to uphold the 60 day order originally entered by the Building Inspector. As in the past, if they enter into an ordinance and the City tears down a property, it's a lien on the property. If there is a legal issue that needs to be researched on that in the interim, they have more than enough time to research this before they move forward. Motion by Mayor Pro Tern Tumage and seconded by Council Member Maness to uphold the condemnation order issued by the Building Inspector giving the current property owner 60 days to make corrective action. Council Member Robinson asked City Attorney Pope that since they are actually dealing with the person who has the land lease and have not served the actual property owner, would there be a question of due process as they move forward. Attorney Pope responded that Ms. Davidson was present at the hearing and her clients are receiving notice of anything that transpires with respect to this property as he has been in contact with Ms. Davidson and they are making sure the property owner stays informed. Council Member Maness stated that as a point of clarification, by upholding the Building Inspector's order, it will require that all improvements be satisfied by February 5`" and according to the City Attorney, they will have a year so whatever happens between the owner of the land lease during that time is between them and the owner of the land. The Council is not doing anything that will impact the owner of the land lease so if they want to pursue it, then that is entirely up to them. Attorney Pope responded that the City has nothing to do with the land lease. Motion unanimously approved. Set Date for Budget Retreat FY 2015 -2016 Manager Autry stated that the Budget Retreat for Fiscal Year 2015 -2016 is proposed for Friday, February 20, 2015 in the School of Osteopathic Medicine- Levine Hall - Classroom 200 on the campus of Campbell University, Buies Creek, NC. A tour of the medical building is also planned. This Budget Retreat will prioritize goals of the City and how to accomplish them for FY 2015 -16 and beyond. He noted that the City Attorney has a conflict as he must attend a continuing education class on this same date; however, with the subject matter on the Retreat agenda, he does not see any legal issues which would require action by the City Attorney. Motion by Council Member Maness and seconded by Council Member McLean to set the Budget Retreat date as February 20, 2015 at 8:30 a.m. at the location stated above. Motion unanimously approved. Financial Report Finance Director Drew Holland provided the following financial report for the period ending November 30, 2014: 111 • As of November 30, 2014, the City had $1,001,402 cash in the General Fund and $2,179,756 in the Water -Sewer Fund. In November of 2013 the City had $1,223,619 in the General Fund and $1,716,688 in the Water -Sewer Fund. • Investment earnings are in the .10 % -.08% range. • Building permit fees were $49,125 or 73.32% of budget. Benchmark for this month is 41.67% of budget. • Water and sewer revenues were $2,030,175 or 45.98% of budget. Benchmark for this month is 41.67% of budget. • Average fuel cost in November for unleaded was $2.05 per gallon and diesel was $2.53 per gallon. The City budgeted $3.15 per gallon. • Sales tax revenue through October, 2014 was $484,861 or 34.51% of budget. The November, . 2014 Sales Tax Revenue will be received by January 15, 2015. • Expenditures were 46.49% of budget in the General Fund and 34.85% of budget in the Water and Sewer fund. The benchmark for this period is 41.67% of budget. Motion by Council Member Billy Tart and seconded by Mayor Pro Tem Tumage to accept the Financial Report. Motion unanimously approved. ADMINISTRATIVE REPORTS Motion by Council Member McLean and seconded by Council Member Maness to accept the Administrative Reports. Motion unanimously approved. ANNOUNCEMENTS The following announcements and/or comments were made. Mayor Harris: ➢ City of Dunn Offices will be closed Monday, January 19" for Martin Luther King, Jr. Day. ➢ The annual Martin Luther King, Jr. Parade will be held on Monday, January 19`" at 11:00 a.m. in Downtown Dunn. ➢ Harnett Local Government Association Meeting will be held on Tuesday, January 27" at 6:30 p.m. at The Brass Lantern. Keynote Speaker will be Dr. Jim Johnson, Economist with UNC Kenan- Flagler Business School. Please let Debbie or Melissa know if you plan to attend. ➢ Dunn Area Chamber of Commerce (DACC) Annual Banquet will be held at the Dunn Shrine Center on Thursday, January 29, 2015 at 6:00 p.m. ➢ Mid - Carolina Council of Governments Annual Dinner Meeting will be held on Thursday, January 29, 2015 at 6:30 p.m. at the Cape Fear Botanical Gardens, Fayetteville, NC. ➢ The next regular City Council meeting is scheduled for Tuesday, February 10, 2015 at 7:00 p.m. With no further business to discuss, a motion was made by Council Member Maness and seconded by Council Member McLean to adjourn the meeting at 7:56 p.m. Motion unanimously approved. Attest: Debra G. West City Clerk CITY O coG OORPpR9� ,. y SEAL pTh ••....... ^P . / / . 0