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
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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.
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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.
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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
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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-