02102015112
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Regular Meeting on Tuesday, February 10, 2015, at 7:00
p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tem Chuck
Turnage, Council Members Buddy Maness, N. Carnell Robinson, Frank McLean, Billy Tart, and
Billy Barfield. Also present was City Manager Ronnie Autry, Assistant City Manager Steven
Neuschafer, Finance Director Drew Holland, 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.
INVOCATION
Mayor Harris opened the meeting at 7:00 p.m. and asked Police Chaplain and Apostle Dennis Manuel, to
give the invocation. Afterwards, the Pledge of Allegiance was repeated.
AGENDA ADJUSTMENT AND APPROVAL
Motion by Council Member Robinson and seconded by Council Member Maness to adopt the February 10,
2015 meeting agenda with changes, if any, as listed below.
Agenda Items Added:
• Consideration of Resolutions of the Dunn City Council for Harnett Health System, Inc. — Long -
Term Debt Covenant
Agenda Items Removed:
• none
Motion unanimously approved.
PUBLIC COMMENT PERIOD
Mayor Harris opened the floor for a (30) minute public comment period
Hearing no comments, the public comment period was closed.
ITEMS FOR DECISION
Consideration of Resolutions of the Dunn City Council for
Harnett Health System, Inc. — Long -Term Debt Covenant
City Attorney Pope explained that in 1996 when the City originally transferred the hospital property to a
non-profit corporation, there were covenants that provided for a number of different things, one which
included an annual payment to the City. Those covenants have been amended at various times during the
relationship with the hospital in 2003 and again in 2011. The most recent covenants from 2011 contain a
restriction against long-term debt to capitalization ratio not exceeding 72% which the hospital has not
previously exceeded. Currently, the lending partner for the hospital (First Citizens Bank) has agreed to
assist with cash flow to restructure some short-term debts into medium-term obligations (5 year time
period). Under the strict definition of the covenant, that would cause the hospital to exceed the long-term
debt to capitalization as contained in the covenants, therefore, First Citizens has requested that the hospital
request the Council to waive that restriction in the covenant for the limited purposes of the two loans that
are identified in the resolution that has been distributed to the Council.
City Attorney Pope stated that Ben Thompson, Counsel for HHS and Dan Weatherly, CEO are present and
available to the Council if they have questions.
Mayor Harris asked if the Council had any questions of Attorney Pope, Mr. Thompson or Mr. Weatherly.
Council Member Barfield stated that he would like more notice than received today to help in deliberations.
Mayor Harris stated that in his opinion, they knew at the earliest possible time about this issue which has
been added to the agenda and Mr. Thompson is present to address the urgency of this matter.
Attorney Ben Thompson apologized to Mr. Barfield and the entire Council for the manner of urgency he
brought to the City Attorney's attention last week. He added that under the strict definitions and covenants
of the long-term and short-term debt, anything that exceeds 12 months goes over to the long-term debt
category. First Citizens has been a tremendous partner to assist the hospital in working on its finances and
in that partnership, they have agreed to extend previously characterized short-term debt to a longer period
exceeding 12 months. He again apologized for the short notice and explained that this is a one-time
specific waiver request.
Motion by Council Member McLean and seconded by Council Member Barfield to adopt the Resolutions
of the Dunn City Council to agree to waive the long-term debt restriction in section 2.8 of the restrictive
covenants for Harnett Health System, Inc. (HHS) solely as it pertains to the HHS entering into specific
loans with First Citizens Bank. Motion unanimously approved. A copy of Resolution (R2015-01) of the
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Dunn City Council for HHS -Long Term Debt Covenant is incorporated into these minutes as Attachment
#1.
Mayor Hams recessed the Council meeting and opened Public Hearings at 7:21 pm.
PUBLIC HEARINGS
Rezoning Request RZ-01-15
Wayne McLamb & Hazel McLamb
PIN #1526-66-8287.000 & 1526-77-5334.000
Located in the 800" Block of Rooms To Go Way
Mayor Hams stated that the public has been notified that oral and written comments will be heard and
received concerning the request by Wayne McLamb and Hazel McLamb to rezone 135± acres located in
the 800 block of Rooms To Go Way.
These properties are currently zoned I-100, Industrial District and RA -40, Single Family Dwelling and
Agricultural District. The portion of the properties that are zoned RA -40; Single Family Dwelling &
Agricultural District are proposed to be rezoned to I-100; Industrial District.
The public hearing was duly advertised on January 20, February 3 & 10, 2015.
Mayor Harris asked City Planner Wullenwaber for her comments.
Planning Director Wullenwaber stated that the applicant and property owner is David Wayne McLamb and
Hazel McLamb of 7469 NC 242 South, Benson, NC. The requested action is to rezone these properties to
1-100 Industrial District all the way to W. Core Road so the entire parcel of 135± acres will be zoned 1-100;
Industrial District. This parcel is located in the 800 block of Rooms To Go Way and also has frontage on
W. Core Road. It is currently vacant land. The property to the north is zoned 1-100 and RA -40. There are
two (2) houses on the northeast property side that are zoned R-20. The property to the south is zoned 1-100
and RA -40; to the immediate south is the Rooms To Go facility. Property to the east is under county
jurisdiction and contains a house and vacant land and property to the west is 1-95. The City of Duan Land
Use Plan identifies [his area as agricultural and open space. The property is located in area two of the Land
Use Plan. The driveway access could be on Rooms To Go Way or W. Core Road as determined by
NCDOT. This property is not in the city limits of Dunn and is located in the extraterritorial jurisdiction
(ETJ) of the City of Dunn. There will be buffer requirements along the property lines; however, these
buffer requirements do not apply along W. Core Road.
Council Member Maness asked Planner Wullenwaber to explain again, where the buffer requirements
apply. Mrs. Wullenwaber responded that the buffer requirements apply to the southern property line and
property lines to the north adding that buffer requirements do not apply to road frontage. Buffer
requirements apply when the property is developed.
Mayor Harris asked if there was anyone present who wished to speak for or against this rezoning request.
Mr. John Core, 874 W. Core Road, Dunn, NC stated that his property is located directly across from this
property. He has spent the last couple of days speaking to his neighbors along Core Road; adding that Core
Road has made some changes since Rooms To Go began construction. There are some problems with
NCDOT as it relates to the road and drainage since Rooms To Go has begun construction. He realizes that
the McLamb family has the right to develop their property and with the assumption that this Council will
approve the zoning request, his concern is with the traffic and buffer requirements. There is no buffer
requirement in the City Ordinance which will keep him from looking out of his front yard over into this
development. While NCDOT has spent lots of money upgrading Rooms To Go Way to make it capable of
supporting the truck traffic, Core Road has not had that luxury. Core Road is a quiet residential country
road that is not capable of this traffic. He asked the Council to look at the noise and light buffers that
concern him and to voice their concern to NCDOT about the amount of truck traffic on W. Core Road.
Mr. Scott Barefoot, Jonesboro Road, Dunn, NC stated that his property adjoins this property. He echoed
the comments of Mr. Core. This is a quiet peaceful neighborhood and has always been agricultural and
rural. He is concerned with the value of his property if this area becomes an industrial site. His property
has been in his family for many years and he would like to retain the value of his property. He is
concerned about the heavy traffic and the depreciation of his property.
Mayor Harris stated that the City will work with NCDOT about the traffic concerns; however, NDCOT has
the final authority.
Hearing no further comments, Mayor Harris closed the public hearing.
Demolition of House
301-305 N. Washington Avenue
PIN #1516-87-1072.000
Mayor Harris stated that the public has been notified that oral and written comments will be heard and
received concerning the demolition of the dwelling located at 301-305 N. Washington Avenue.
The public hearing was duly advertised on January 27, 2015 and February 3, 2015.
Mayor Harris asked if there was anyone present who wished to speak for or against the proposed
demolition.
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Hearing no comments, Mayor Harris closed the public hearings and reconvened the regular meeting at 7:36
p.m.
CONSENT ITEMS
Minutes — Council considered approval of minutes of the January 13, 2015 City Council meeting.
Budget Amendments - Council considered approval of Budget Amendments #12 & 13. A copy of BA #12
& 13 is incorporated into these minutes as Attachment #2.
Proclamation - Council considered approval of a Proclamation recognizing the month of February as Black
History Month. Council Member Robinson read the Proclamation. A copy of Black History Month
Proclamation (P2015-01) is incorporated into these minutes as Attachment #3.
Surplus Resolution — Council considered approval of a Resolution Authorizing the Disposition of Personal
Property by electronic means through www.GovDeals.com. A copy of Surplus Resolution (R2015-02) is
incorporated into these minutes as Attachment #4.
Motion by Council Member Barfield and seconded by Council Member McLean to approve all consent
items. Motion unanimously approved.
ITEMS FOR DECISION CON'T
Rezoning Request RZ-01-15
Wayne McLamb & Hazel McLamb
PIN #1526-66-8287.000 & 1526-77-5334.000
Located in the 800'" Block of Rooms To Go Way
Mayor Harris stated that this is a request to rezone two parcels of land totaling 135E acres, located in the
800 block of Rooms To Go Way. These properties are currently zoned I-100, Industrial District and RA -
40, Single Family Dwelling and Agricultural District. The portion of the properties that are zoned RA -40;
Single Family Dwelling & Agricultural District are proposed to be rezoned to I-100; Industrial District.
The Planning Board met on January 27, 2015, to review the request and ask for comments from the public.
After hearing comments from the public and the request from the applicant, the Planning Board voted
unanimously to recommend approval of this request.
Motion by Mayor Pro Tem Tumage and seconded by Council Member Barfield to approve the request
from Wayne McLamb & Hazel McLamb to rezone (PIN #1526-66-8287.000 & 1526-77-5334.000) totaling
135+ acres and located in the 800 block of Rooms To Go Way to I-100; Industrial District based on the
following justification and champion the concerns voiced by the residents of this area:
1) The City of Dunn Land Use Plan identifies this area as agricultural and open space on the future
land use plan; although due to recent trends in this area over the past 5 years, industrial zoning
would also be viable and ideal for this area. This property is located in area two of the Land Use
Plan.
2) The amendments are not inconsistent with the adjoining and surrounding land uses nor are they
considered detrimental.
3) The permitted uses in the I-100 District are not considered detrimental to the area due to the 1.4
million square foot industrial building being developed on the adjacent property, therefore the
added use would not be new to the area.
Motion unanimously approved.
Consideration of Ordinance to
Demolish House -
301-305 N. Washington Avenue
PIN #1516-87-1072.000
Chief Building Inspector Steven King has conducted an inspection at 301-305 N. Washington Avenue and
based upon his observations, the structure failed to comply with the minimum standards of fitness
established by the minimum housing code of the City of Dunn. The Building Inspector also found the
dwelling dangerous or prejudicial to the public health or public safety and is a nuisance in violation of G.S.
§160A-143.
The owner of the property has failed to comply with the Building Inspector's order and according to
N.C.G. S. § 160A-443, the City Council has the power to proceed with the demolition of this property.
Chief Building Inspector Steven King stated that it appears that this property has been abandoned for
several years and the City has mowed the grass for the past 4-5 years. Based upon the condition of this
property, the City condemned it and to date, the City has received no response from anyone.
Council Member Robinson stated that the property at 307 N. Washington Avenue has been in disrepair for
some time and questioned why this property has not been condemned. Mr. King responded that he is in the
process of working with this property owner. Mr. Robinson stated that he hopes Mr. King will follow-up
with this property owner because it has been perceived as favoritism in the past and the Council does not
want that reputation.
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Motion by Council Member Robinson and seconded by Council Member Barfield to adopt the Ordinance
Directing the Building Inspector to proceed with the Demolition of the Dwelling located at 301-305 N.
Washington Avenue (PIN #1516-87-1072.000). A copy of Ordinance (02015-01) to demolish the dwelling
at 301-305 N. Washington Avenue is incorporated into these minutes as Attachment #5. Motion
unanimously approved.
ITEM FOR DISCUSSION
AND/OR DECISION
Financial Report
Finance Director Drew Holland provided the following financial report for the period ending December 31,
2014:
• As of December 31, 2014, the City had $1,425,895 cash in the General Fund and $2,183,837 in
the Water -Sewer Fund. In December of 2013 the City had $1,699,588 in the General Fund and
$1,833,105 in the Water -Sewer Fund.
• Investment earnings are in the .10%-.08% range.
• Building permit fees were $54,080 or 80.72% of budget. Benchmark for this month is 50% of
budget.
• Water and sewer revenues were $2,382,771 or 53.97% of budget. Benchmark for this month is
50% of budget.
• Average fuel cost in December for unleaded was $1.62 per gallon and diesel was $2.03 per gallon.
The City budgeted $3.15 per gallon.
• Sales tax revenue through November, 2014 was $614,933 or 43.77% of budget..
• Expenditures were 54.04% of budget in the General Fund and 41.72% of budget in the Water and
Sewer fund. The benchmark for this period is 50% 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 Maness and seconded by Council Member Billy Tart to accept the
Administrative Reports. Motion unanimously approved.
ANNOUNCEMENTS
The following announcements and/or comments were made.
Mayor Harris:
➢ The City Council will hold their Annual Budget Retreat/Planning Session on Friday, February 20,
2015 at the Jerry M. Wallace School of Osteopathic Medicine — Levine Hall — Classroom 200 on
the campus of Campbell University located at 4350 US 421 South. The meeting will convene at
8:30 a.m.
➢ The next regular City Council meeting is scheduled for Tuesday, March 10, 2015 at 7:00 p.m.
➢ If you haven't done so already, please let Debbie or Melissa know if you will be attending Town
Hall Day in Raleigh on Wednesday, March 18, 2015.
Council Member Barfield:
➢ Benefit on February 13, 2015 for Fonnie Godwin.
➢ Requested discussion about the Dunn Historical Museum at the Budget Retreat.
➢ Years ago, the City of Dunn Police Department inspected bicycles and recorded ownership. He
would like to see the City of Dunn reinstate this program.
City Manager Autry:
➢ NCDOT has awarded the City of Dunn 24 helmets as part of the 2015 Bicycle Helmet Initiative.
The City of Dunn will receive 24 bicycle helmets to distribute to low-income children and this
initiative will be coordinated through the Police and Planning Department. He thanked Planning
Director Samantha Wullenwaber for her work in applying for this award.
With no further business to discuss, a motion was made by Council Member Tart and seconded by Council
Member Barfield to adjourn the meeting at 7:56 p.m. Motion unanimously approved.
Attest: `
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Debra G. West
City Clerk
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Oscar N. Hams
Mayor