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02202015 budget retreat11V MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Budget Retreat/Planning Session on Friday, February 20, 2015, from 8:30 a.m. - 5:05 p.m. at the Campbell University -Jerry M. Wallace School of Osteopathic Medicine -Levine Hall -Classroom 200-4350 US 421 South, Lillington, NC. Council Present: Mayor Oscar N. Harris, Mayor Pro -Tem Chuck Turnage, Council Members Buddy Maness, N. Carnell Robinson, Frank McLean, Billy Tart, and Billy Barfield. Staff Present: City Manager Ronnie Autry, Assistant City Manager Steven Neuschafer, City Clerk Debra G. West, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Recreation Director Perry Hudson, Athletic/Facilities Coordinator Brian McNeill, Police Chief Jimmy Pope, Chief Building Inspector Steven King, Planning Director Samantha Lloyd, Human Resources Director Anne Thompson, Librarian Mike Williams, and Finance Director Drew Holland. Also Present: City Engineer Michael Goliber, and Daily Record Reporter Keilah Goff. Absent: City Attorney P. Tilghman Pope. Council Member Robinson arrived at 9:15 a.m. Mayor Harris opened the meeting at 8:45 a.m. Invocation — Mayor Hams Pledge of Allegiance Repeated. Manager Autry gave opening remarks. Mid -Year Financial Report Fiscal Year 2014-15 Finance Director Drew Holland gave a presentation of the following mid -year financial report: • Fund Balance as of 6/30/2014 - $3,541,226 • Fund Balance as of 6/30/2010 - $3,370,457 • Investment Earnings were $17,100 in FY 10-11 compared to $12,826 estimated for FY 14-15 • Sales Tax Distribution was $1.2M in FY 10-11 compared to $1.4M estimated for FY 14-15 • Total Cash and Investments (Less Restricted Cash) balances as of 12/31/2014: $3,891,961 • General Fund Debt Service was $491,949 in FY 13-14 and is projected to be $756,228 in FY 17- 18 • Water/Sewer Fund Debt Service was $898,330 in FY 13-14 and is projected to be $801,541 in FY 17-18 • Property Taxes collected as of 1/31/2015: $3,187,076 or 91.84% of budget • Property Taxes collected as of 1/31/2014: $3,105,175 or 90.21% of budget • Property Taxes collected as of 1/31/2013: $3,030,176 or 92.10% of budget • Property Taxes collected as of 1/31/2012: $3,038,928 or 92.37% of budget • Sales Tax: Sales Tax Distribution as of 1/31/2015 was $737,257 or 52.50% of budget — estimate for year is $1,418,000 Sales Tax Distribution as of 1/31/2014 was $662,813 or 47.68% of budget — total for year was $1,344,468 Sales Tax Distribution as of 1/31/2013 was $705,591 or 51.88% of budget — total for year was $1,404,413 Sales Tax Distribution as of 1/31/2012 was $660,479 or 49.49% of budget — total for year was $1,346,550 • Utility Franchise Tax: Utility Franchise Tax Distribution as of 1/31/2015 was $330,846 or 52.66% of budget — Estimate for year is $624,424 Utility Franchise Tax Distribution as of 1/31/2014 was $314,717 or 49.75% of budget — total for year was $608,295 Utility Franchise Tax Distribution as of 1/31/2013 was $326,697 or 49.88% of budget— total for year was $631,450 • Water/Sewer Revenue: $2,751,630 as of 1/31/2015 or 62.32% of budget — Estimate $4,569,928 for the year. $2,680,642 as of 1/31/2014 or 58.27% of budget — Total of $4,450,732 for year. $2,550,856 as of 1/31/2013 or 55.27% of budget — Total of $4,389,554 for year. $2,655,020 as of 1/31/2012 — Total of $4,351,804 for year. • Expenditures: Benchmarks for this time of year is 58.33% General Fund expenditures as of 1/31/2015 were 61.57% of budget 117 Water/Sewer Fund expenditures as of 1/31/2015 were 52.23% of budget Discussion was held that Harnett County property revaluations are on schedule for 2017. PROJECT UPDATES: PARTF Grant — Phase II (Tyler Park Renovation) Update Assistant City Manager Neuschafer reported that the major phase II construction associated with the City contract with Trader Construction, Inc. is complete with minor adjustments to the grading scheduled for completion in the spring when the sod and grass seed is more apt to grow. Surface America will finish the Miracle Field top coating in March once temperatures meet the material specifications. Mr. Neuschafer presented a design of the final concept of the splash pad area and Veterans Area and the over-all landscape design for the park. The City will be exploring budget options to accomplish as much of the concept as necessary to receive the full approval of the PARTF staff for the requirements of the grant, while creating an enjoyable park experience for our residents and visitors. The General William C. Lee Commission will commit $75,000 towards the Veterans Memorial Area and the American Legion has committed $5,000 for the flag poles. Discussion was held that volunteers may be asked to help with accomplishing the landscaping and internal city forces may be used. Total projected tum -key cost to complete the project is $240,000; there is $171,000 left in the project fund. Break -10:00 am —10:15 am Harnett Training School Campus Proiect Update Assistant City Manager Neuschafer provided the following update: • The Harnett Training School LLC (Scott A. Redinger, Inc. and Dunn Community Development Corporation — DCDC) is working with Central Carolina Community College and PAL to ensure that their needs are met as they begin to shape the interior spaces of each building for the specific needs of the end users. • The majority of the changes to the scope of the project have come at the direction of the State Historic Preservation Office and the Dunn Emergency Services (Fire Inspector) as they work to apply the state fire code to this historic campus. • The project is within the contract timeline. • The Contractor plans to release some of the buildings to the end users, specifically the senior building, multi -use building and the classroom building in early summer to allow them to begin their specialized up -fits like sinks, cabinets, and furniture prior to occupancy in the fall of 2015. • The City continues to facilitate the construction of the project by furnishing labor and materials on a limited basis for the work occurring in the public ROW. • In partnership with Duke Energy, the City will trench in the ROW for the placement of conduit for underground power along a portion of Burke Street. • The City will be assisting in the re-routing of existing water lines in conflict with other new utilities being installed for the project. • The City will be constructing a water line "loop" to boost fire protection and water quality in the area extending a 6" water line from Burke Street over to Townsend Street across Codrington Park. He presented photographs of the project and a larger map showing the lay -out of the buildings. Weaver Cooke has projected August 2015 for completion of the classrooms to be used by CCCC and October 2015 for completion of the entire project. The City has allocated 2.6M for this project. Currently, 2M has been expended. The CDBG monies have been expended and the City is on point for what has been allocated to this project. The $600,000 historic tax credits are needed and are currently being deliberated in the legislature. Should this tax credit not be re- established, then those monies will have to be paid by other sources. It was discussed that once all facilities are up and running, parking issues will need to be addressed. Downtown Improvement Proi ect — Ma2nolia Avenue and Lucknow Square Assistant City Manager Neuschafer provided the following items that need to be corrected or completed in Phases 1-3 of the Downtown Revitalization Project: • Complete painting the parking spaces • Complete placing the Accessible Parking signs and pavement markings • Street signs and sign posts need to be ordered and installed • The traffic signal and support poles need to be completed at Broad Street and Fayetteville Avenue • Brick pavers need to be adjusted and completed Above items projected to cost around $33,000+ and are not currently budgeted. 118 Magnolia Avenue has been designed and will be sent out for bids again this year. The City was successful in being awarded funds by NCDOT to complete a critical block on US 421 (300 block of E. Cumberland Street). Once the City bids the NCDOT section, the City will have another look at what the prices indicate for the Magnolia portion and staff will be able to refine the budget for the project before it is bid a second time. City forces may do some of the preparation work before the bid to help keep overall prices down. City forces propose to remove the existing brick wall along Magnolia Avenue. To complete Magnolia Avenue, it is projected to cost the City $150,000-$175,000 which will come from Powell Bill Funds. Rooms To Go Proiect Update Manager Autry reported that the 12" water line has been completed to the northern end of RTG property. The gravity sewer through the wetlands is 50% complete and Davis -Martin -Powell (DMP) will provide an update with a projected completion date. The tanks have arrived on site for the Fire Protection System and assembly should begin on February 13" City Engineer Goliber provided the following updates: • Design began back in 2013. Total of four (4) contracts were awarded to provide water and sewer to RTG. • Phase I water provided initial water to the RTG site when they bored underneath across the swamp to the construction site in early spring of 2014. Phase I was completed within budget. • Next three (3) contracts were bid at one time and included the water and sewer lines in front of RTG, the Aerial Sewer line that came across the swamp up to the RTG property and the onsite fire tank and pumping system. • Currently to date, the water and sewer for RTG has been completed to serve the RTG property. • The aerial sewer crossing is 70% complete and anticipate its completion by April 15` • The tank material is on site and the contractor is in place constructing the tanks. The fire pump is scheduled for delivery next week. Anticipate completion in March. • All projects are currently within the budget and time -line to meet the commitments made by the City of Dunn to RTG. Love's Travel Stops Sewer Project City Engineer Goliber provided the following updates: • Scheduled completion date of June 2015. • In-line with the budget. Love's has already submitted their payment to the City. The County committed $125,000 toward the project and in exchange for this commitment, the City will not pay $125,000 to the County for taking over dispatch services. Rooms To Go Way Water & Sewer Extension Project Manager Autry stated that approximately 1200' of the force main sewer of the Love's project is directional bore under the wetlands on the northern comer of RTG property. City staff feels that the City would be better served if this line was upgraded to a gravity sewer which would be required if further development would occur on adjoining properties. These water and sewer extensions would cost the City approximately $200,000 if the City could obtain the additional funding. The City is submitting documents to the Corp of Engineers to gain approval to cross these wetlands. City Engineer Goliber and Manager Autry provided the following updates: • The design of the Love's force main project is to come down through Rooms To Go Way and tie into the upper manhole at RTG but knowing that this corridor is a potential for development, the City is looking at the possibility of extending gravity sewer north towards the Lee Moore Oil property adjacent to the interchange on Jonesboro Road as a result of interest in the property next to RTG. This would avoid laying a force main with the potential of coming back within a few months to have to lay gravity sewer. There are some wetlands within this area. • This option will allow the City to utilize some of the funds from the Love's Travel Stops Project for a potential cost savings to the City moving forward by extending the gravity sewer. • If this project can be completed with the Love's Travel Stops Project, there would be a deduction from the force main cost of the project that would help offset some of the cost for laying the gravity sewer. • DMP has completed the design of this gravity sewer section and it has been submitted for permitting. Potential cost to the City is $215,000 if done in concert with the Love's project. Possible assistance from grants to extend this line or option of the City expending the monies to provide this gravity sewer. • Firm numbers should be ready before the end of 30 days to allow the Council to decide if these additional monies should be spent. Recess: 11:30 a.m. for tour of Medical School Lunch: 12: 45 pm —1:20 pm Mayor Harris reconvened the meeting at 1:20 pm. Mayor Harris mentioned the following important dates: Debbie will be in touch with RTG to get an idea of when they would want to have a grand opening Ceremony and any assistance the City can provide them and will relay that date to the Council, also a dedication ceremony will be planned for the revitalization of Tyler Park, PAL Campus and Harnett Training School, and an open house at City Hall once renovations are made and once Magnolia Avenue is revitalized. IM City Hall — Proposed Repairs to the Municipal Building Assistant City Manager Neuschafer provided the following information: Through the City loan with Select Bank and Trust, the City of Dunn is required to make capital improvements to the City Municipal Building. The minimum amount to invest into the property is $200,000. The Building Inspector was asked to list any deficiencies in the municipal building which the Council may consider before committing to any work. Between the inspector's input and comments from each of the departments, the following list of work is proposed for consideration: • Accessible ramp to enter the building • Accessible front doors • Raising the porch level to the front threshold • Energy efficient lighting throughout • Drive-thru payment window replacement • Public restrooms accessibility, plumbing and tile upgrades • Window tinting for energy and security concerns • Carpet and painting in the office areas Although all items listed will exceed the budget, they represent the major capital items which have been discussed to help our Municipal Building (constructed in 1965) continue to function and serve our community. Discussion was held about other improvements that are needed in the Council Chambers, the front porch area and concrete repairs outside. Discussion was held about the electrical utility costs for City Hall. It was discussed to add other priority needs and obtain quotes for those improvements as well. City Departments at a Glance/Organizational Charts The Council was provided with the current organization of City departments and functions of each. Council was able to see staff levels in each department to carry out the required services expected by our citizens. It is possible that modifications may occur within certain departments. Discussion was held to organize a landscape crew under the umbrella of the Recreation department to allow cemetery employees to focus entirely on cemetery mowing issues. Discussion was held to analyze the City costs for landscaping duties such as cutting grass, etc. versus costs to contract this type of service. Discussion was held that a policy needs to be in place for cutting bushes at the cemeteries. Discussion was held that the bushes along the border of Greenwood Cemetery need to be removed and replaced with other greenery or fencing. Discussion was held about reorganizing the Planning and Inspections Department by incorporating the Fire Inspections back into this department. Manager Autry stated that complaints have been received about Fire Inspections. The revenue the City receives for this service does not pay for the contract service fee of $57,779 the City pays Dunn Emergency Services to perform this service. It is proposed to bring this position under Planning and Inspections and cease the contract service with DES. Privilege License Legislation -Revenue Loss/New Business Accountability Planning Director Wullenwaber made the following presentation: July 2012 -June 30, 2013, the City received approximately $50,000 in privilege license tax July, 2013 -June 30, 2014, the City received approximately $38,000 in privilege license tax Beginning July 1, 2014, the City could no longer tax businesses that were not physically located in the City. The City has collected $8,000 thus far for FY 14-15; a significant loss in revenue. Privilege Licenses are set to expire on June 30, 2015. Privilege license are a tax but also a tool that cities use to keep track of new and existing businesses. When someone applies for a privilege license they have to fill out an application and submit it to the Planning & Inspections office. At that time the Planning Director would review it and approve, if the proposed business use and location meets the requirements of the zoning code then that application is given to the Building Inspector and Fire Inspector and they inspect the building. Often times, the inspectors find issues with the buildings and things have to be fixed prior to the privilege license being issued. These are usually minor issues such as exit signs and fire extinguishers. When the privilege licenses expire, the City of Dunn still needs a way to enforce the zoning code and building codes and a way to regulate new businesses while still remaining business friendly. The City of Dunn can require a zoning permit for all new businesses. This could also be effective for businesses outside of the ETJ as well. The common fee for a zoning permit is $50. This would allow for the zoning to be checked as well as a fire and building inspection. The City currently has a change of use permit that would still be in place and coincide with the zoning permit. The zoning permit can also be referred to as a land use permit. For instance if 1000 W. Cumberland Street was a medical office before and a different medical office is going in that location, they would pay a $50 zoning permit fee to verify the zoning. If the new tenant was a restaurant then a change of use permit would be required and they are $50. The City could not double charge; it would simply be one or the other. 120 The City would have to create a peddler permit application that is separate from the privilege license application to continue to monitor the door to door sales and the temporary sales set-ups on private property. The State has promised to come up with alternatives for cities that collect revenue using privilege licenses but the City has not heard what that will be. Discussion was held that this will not be a revenue source, only a mechanism to regulate proper zoning. Discussion was held if an annual zoning license could be put in place; Director Wullenwaber will research this issue. Solid Waste Contract Manager Autry advised that the agreement for collection and disposal for residential solid waste, recyclables and certain commercial solid waste ends on June 30, 2015. Citizens are currently furnished a 95 gallon cart for solid waste and a 65 gallon recyclable cart. City staff picks up limbs, grass clippings and leaves which are placed in the street right-of-way that potentially ends up in our storm drains and ditches. There have been discussions about some changes (one being an additional cart for yard debris). The present contract fees are as follows: Solid Waste - $6.38 per month for (1) pick up per week Recycle Cart - $3.31 per month for (1) pick up every other week Manager Autry explained that Republic Waste, the City's current solid waste provider, has charged only a CPI for many years. The City equipment used for limb and leaf pick up needs to be replaced. Discussion was held that grass trimmings are left along the streets which clog the storm drainage system. With a debris cart, it will stop the equipment maintenance issues and storm drainage issues. It was discussed that apartments and townhomes through -out the City should be required to have a dumpster for solid waste and recyclables. An Ordinance needs to be clear to require dumpsters for apartment/townhouses, etc., control carts being left by the street continuously and to address those that would not need a debris cart such as apartment complexes. This would allow the leaf truck to only be utilized during the heavy leaf season. It was discussed that the current contractor would give the City a quote for the debris cart. Council directed City staff to prepare an ordinance for debris pickup to implement a debris cart Break: 3:20 pm — 3:35 pm Resurfacing Plan Manager Autry reported that major streets are in disarray. Five years remain on the debt service for the 1M Street Improvement Project that was accomplished in 2009. Any financing proposal of five (5) years or more would have to be approved by the Local Government Commission. Banking Institutions have recently put a five (5) year limit on municipal financing. The City needs to implement another $1M Street Improvement Project. It was discussed that Powell Bill Allocations are being discussed to appropriate by lane miles versus the current procedure of total miles which would have a negative effect on Powell Bill disbursements to smaller municipalities. Discussion was held about experimenting with the rock and tar on Fayetteville Street to see how it holds up since this method is much cheaper and this road is in dire need of paving. Discussion was held about the possibility of issuing a municipal bond to finance several large-scale infrastructure projects and capital needs. 2014 Storm Water Study Manager Autry presented the 2014 Stormwater Study as prepared by Davis -Martin -Powell & Associates along with a map of the study and explained that the purpose and scope of this study would include: • An evaluation of the overall condition and capacity of the existing major stormwater conveyance systems within the City • Identification of specific bottlenecks within the system where potential improvements would be most effective • An evaluation of the feasibility of developing methods to detain portions of stormwater flow • Provide preliminary budgets for potential stormwater system improvements He explained that most municipalities have stormwater fees in place. 4:00 p.m. — Mr. John Kauffman, Jr., Dean and Chief Academic Officer of the Medical School gave a welcome. He stated that this is the second year of the medical school with approximately 25% of their students coming from NC; they would like to increase those numbers. Students will soon be heading out to 121 clinical sites which will include the regions of Harnett Central/Betsy Johnson, Wake Med, Cape Fear Valley, Lumberton, Goldsboro and Salisbury. NC is ranked 35 out of 50 in primary care providers per capita. Campbell residency programs will attract more doctors and they hope to bring more specialists into the area, which is a great need. This will keep people seeking health care in Harnett County. Doctors tend to practice within 90 miles of where they train. They are sending out 160 students this year and another 160 will be sent out next year. Dean Kauffman gave a history of how he came to Campbell. Council Member Tart left the meeting at 4:15 p.m. Further discussion was held about storm water issues through -out the City. Discussion of Council Goals -Objectives -Accomplishments Recap of Major Projects 2012 -Present A lengthy schedule of major projects that the Council has accomplished over the past four years was presented for information. Dunn Historical Museum Mayor Harris spoke about a group that is in the process of creating a Historical Museum. He spoke of other organizations such as the Food Bank that were created and have operated successfully serving many families in need. An individual has stepped up with an interest in creating a historical museum and they already have a building on N. Ellis Avenue and lots of memorabilia. This group wants the blessing and support of the City in creating a Dunn Historical Society. Mayor Harris stated that he would like to see the City support this museum just as they supported establishing the Food Bank. The Mayor entertained comments from the Council and the type of support the City should lend. Discussion was held in support of this idea. Mayor Harris stated that this individual is Bobby Carr; he is paying to have it incorporated, he is providing the building and lots of memorabilia. A community contribution of $7500 was made to DUMA to help them incorporate and $5,000 was contributed to The Howard House over several years. The Council discussed that this new organization will need to make a request for a community contribution during the new budget year. Mayor Harris suggested that the Council help them financially to launch their incorporation just as given to DUMA once Mr. Carr and his board members appear before the Council to detail their organization. Departmental Capital Priorities (2015-2020) The Council was provided with a summary of capital requests. Of particular concern, is equipment needs for Public Works. It's been several years since any dump trucks or heavy equipment have been purchased for this department. The cost to replace the sewer vacuum truck is estimated to be $300,000. Manager Autry stated that recent major repairs to the Street Sweeper, Limb Truck and Leaf Track totaled $39,000. Manager Autry explained the need for automatic meter reads for the Finance Department. Other Comments Council discussed looking into the option of a bond to fund many of the pressing needs discussed today. Council Member Robinson requested an annual updated Diversity report. With no further business to discuss, motion by Council Member Barfield and seconded by Mayor Pro Tem Tumage to adjourn the meeting at 5:05 p.m. G I TY' U„'' O car N. Harris GORPQ? z V Mayor Attest: tit L Debra G. West �:,9Tj�,'•• ...�p, City Clerk '.,, C-