Minutes 11-14-2017353
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Regular Meeting on Tuesday, November 14, 2017, at 7:00 p.m. in the
Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tern Billy Barfield, Council Members
Buddy Maness, Dr. Gwen McNeill, Frank McLean, Billy Tart, and Chuck Turnage. Also present was City Manager
Steven Neuschafer, Finance Director Mark Stephens, Public Works Director Dean Gaster, Chief Building Inspector
Steven King, Planning & Inspections Director Samantha Wullenwaber, Police Captain Jenkins, Recreation Director
Brian McNeill, Human Resources Director Anne Thompson, Librarian Mike Williams, Attorney Tilghman Pope, City
Clerk Jennifer Fortin, and Daily Record Reporter Melody Brown -Peyton.
INVOCATION
Mayor Harris opened the meeting at 7:00 pm. and asked Pastor Roy Johnson, Police Chaplain and Director of Pastoral Care
for the 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 McNeill to adopt the November 14, 2017 meeting
agenda with changes, if any, as listed below.
Agenda Items Added:
• none
Agenda Items Removed:
• none
Motion unanimously approved.
PRESENTATION
Dunn Community Development Corporation presentation by
President Clement Medley, Jr.
Mr. Medley stated the Dunn Enrichment Center Harnett Training School Campus is fully operational. The Police Athletic
League (PAL) is utilizing the renovated gym for recreational activities and hosting basketball tournaments, which brings
teams from throughout the region.
Central Carolina Community College (CCCC) is offering a culinary school and hospitality arts program. They are also
offering a barbering program and several various continued education programs. In the fall, they will be offering Harnett
County Early College. They will begin with a full enrollment of 52 students from throughout the County.
The Harnett Apartments are fully leased and there is a short waiting list for any units that might become available in the
future.
The facility is producing a positive cash flow. There is a high expectation that after the conclusion of the current year's
operation there will be sufficient cash flow and perhaps a small distribution to the managing partners. The funds will be used
to provide seed money or funding for additional projects in the future. The campus is live with activity.
Mayor Harris thanked Mr. Medley for being the Chairman.
Dunn Downtown Development Corporation presentation by
Chairman William Elmore
The North Carolina Department of Commerce made their second visit to Dunn. They are training the Dunn Downtown
Development Corporation on the things that need to be done for promoting the downtown area and prepare for future growth.
This project is a process and they are teaching us the process of how to better the community. We feel, if we follow their plan
of action we will be successful. There are events happening in downtown Dunn and we are excited to host the Shrine Parade
this Saturday. We also have the tree lighting on November 30' and the Christmas parade on December 2nd. These activities
will help promote the downtown area.
Mayor Harris thanked Mr. Elmore for his involvement with the Dunn Downtown Development Corporation.
PUBLIC COMMENT PERIOD
Each speaker is asked to limit comments to 3 minutes, and the total comment period will be 30 minutes. Citizens must sign
up and register on a sign-up sheet available on the podium within the City Council Chambers prior to the start of the meeting.
Mayor Harris read the City of Dunn City Council Public Comment Policy.
Hearing no comments, Mayor Harris closed the Public Comment portion of the agenda.
PUBLIC HEARINGS
Ordinance Amendment — OA-05-17
Chapter 4; Buildings and Building Regulations
This is a request to hereby amend Chapter 4, Building and Building Regulations to add the Non -Residential Building
Maintenance Code.
The public hearing is the opportunity for the Council to hear comments and opinions from the public to include any party for
or against the request.
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The public hearing was duly advertised on October 4" & 10'", 2017 and November 7, 2017
Hearing no comments, Mayor Harris closed the public hearing.
Resolution Authorizing Issuance of Tax -Exempt
Bonds for Pinewood Apartments, LLC
The public has been notified that oral and written comments will be heard and received concerning the request to authorize
the Issuance of Tax -Exempt Bonds for Pinewood Apartments, LLC
The public hearing was duly advertised on October 31, 2017.
David Garcia — Representative for the National Housing Preservation advisors out of Denver, Colorado. The potential non-
profit buyer is the Ezekiel Foundation. The company will be using tax exempt bonds to purchase the property. The company
is aware of the numerous police calls and how to use funds to mitigate some of those issues and remedy some of the
numerous police calls at the property. The company will be setting aside $200,000+/- to deal with security infrastructure and
physical issues with the property. There will be some rehabilitation of the property up front. The long term goal is a low-
income housing tax credit re -development of the property. We are here to talk about the approval of the tax exempt bonds,
which are needed to facilitate bond approval at the national level through PEA.
The property is currently tax exempt for property taxes and I have been recently given a copy of the request for approval of
resolution. The resolution is requesting that the property pay the property taxes of what it would pay if it was a for profit
ownership annually. With a 501(c) (3) financing, it is helpful if we are able to capture these costs upfront instead of paying
annually. The loan term of this project will be a 10 year loan and we would like to respectfully request the duration of the
tens be 10 years and pay upfront whatever the amount may end up being. Looking at the language it suggests we pay the full
amount of the taxes if we were a for profit entity annually and we would like to request it be consolidated upfront and that we
be allowed to discuss with Mayor and Council as to what that upfront cost would be.
With the recent tax reform legislation from the House and Senate, in the House version of the tax reform bill it is proposing
to get rid of private activity bonds, which the 501(c)(3) falls under. If that were the case that would become effective January
1, 2018. I would like slightly modify the language in there. It says condition upon a very specific formula and if we could
modify it to be more broad as to an agreeable amount as determined by the Mayor or Council in lieu of that specific language
so the project can continue to move forward in case this House bill goes through and we have to close quicker than expected.
Mayor Harris asked if Mr. Garcia had the language he was proposing.
Mr. Garcia stated he would by the end of the meeting.
Hearing no further comments, Mayor Harris closed the public hearing
Minutes — Council considered approval of the minutes of October 10, 2017 City Council Meeting
Minutes — Council Considered approval of the minutes of the October 17, 2017 Special Call Meeting
Proclamation — National Hospice Palliative Care Month. A copy of Proclamation (P2017-23) is incorporated into these
minutes as Attachment 47.
Consideration of Resolution Authorizing the Disposition of Personal Property. A copy of Resolution (R2017-22) is
incorporated into these minutes as Attachment 42.
Temporary Blocking of Street — Annual Downtown Christmas Tree Lighting Ceremony
Temporary Blocking of Streets — Dunn Christmas Parade
Temporary Blocking of Street — Another Barber Shop
Budget Amendment 45 —A copy ofBA45 is incorporated into these minutes as Attachment 1-3.
Consideration of Resolution Retiring Paco a Canine Assigned to the Dunn Police Department
Motion by Council Member Barfield and seconded by Council Member McLean to approve all consent items. Motion
unanimously approved.
Mayor Harris recognized former Council Member and former Mayor Pro Tern Carrell Robinson in the audience.
ITEMS FOR DECISION
Ordinance Amendment OA-05-17
Chapter 4; Buildings and Building Regulations
This is a request to hereby amend Chapter 4, Buildings and Building Regulations to add the Non -Residential Building
Maintenance Code.
The Non -Residential Building Maintenance Code is very similar to the minimum Housing code but for all non-residential
buildings. It is also commonly referred to as a commercial maintenance code. The code will be used to ensure non-
residential buildings are in compliance with current building code standards and the standards list in this ordinance.
Attorney Tilghman Pope has reviewed the ordinance as presented.
Motion by Council Member Maness and seconded by Council Member Barfield to adopt the Ordnance as presented. Motion
unanimously approved. A copy of Ordinance (02017-33) is incorporated into these minutes as attachment 45.
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Consideration of Ordinance to Demolish Structure
510 Spring Branch Road
PIN# 1516-71-5790.000
Chief Building Inspector Steven King has conducted and inspection at 510 Spring Branch Road and based upon his
observations, the structure is in a condition that constitutes a fire and health hazard. The Building Inspector also found the
structure dangerous to the public health or public safety and was condemned.
The owner of the property has failed to comply with the Building Inspector's order and according to N.C.G.S § 160A443, the
City Council has the power to proceed with the demolition of this property.
This matter was tabled at the January 2017 Council Meeting to be brought before the City Council at the March 2017 Council
Meeting to allow the property owner and prospective buyer to make additional repairs on the structure and to obtain a legal
agreement to achieve certain milestones by specific dates. Since March 2017 Council Meeting, the property owner and
prospective buyer have completed some of the required repairs. On March 14, 2017 a Condemnation Estoppell and Hotel
Investment Agreement was made and signed by the City of Dunn Mayor, Oscar N. Harris and New Dunn Hotel, LLC, Amar
N. Patel, Manager.
On July 11, 2017, the City Council agreed to table this matter until October 2017 in order for Mr. Patel to obtain ownership
of the property and obtain a building permit. As of October 2, 2017, neither has been accomplished.
Attorney Pope stated about 4:00 p.m. he received a copy of the deed that transfers ownership of the property to the buyer as
of this afternoon. This was a condition Council had placed upon the parties at the last meeting. This recorded deed does in
fact show the buyer has acquired the property.
Council Member Maness asked what the next step would be if all conditions have been met.
Attorney Pope stated if Council is satisfied that all the conditions have been met then Council can table this matter
indefinitely until the property has been fully developed as represented to the Council or Council can vote to deny the
ordinance.
Motion by Council Member Maness and seconded by Council Member Tart to table the Ordinance indefinitely until brought
back before Council following the development of the property. Motion unanimously approved.
Board Appointment
Dunn Area Tourism Authority
The Council may decide to re -appoint Council Member Billy Tart as Council representative to serve on the Averasboro
Township Tourism Development Authority ie: Dunn Area Tourism Authority.
A bill was filed and approved in January 2013, to increase the board of the Dunn Area Tourism Authority from seven (7)
members to nine (9) members; this includes an appointment from the Dunn City Council. Council Member Tart's current
term will expire on December 31, 2017.
Motion by Council Member Barfield and seconded by Council Member Maness to re -appoint Council Member Billy Tart as
Council representative on the Dunn Area Tourism Authority with a term expiring on December 31, 2018. Ayes — Council
Members Maness, McNeill, McLean, Turnage, Barfield. Abstain - Council Member Tart.
Consideration to Accept Vacant Lot
Located on Martin Street
PIN#1517-03-6687.000
From CGW, Inc.
Council is being asked to accept a vacant lot located on Martin Street — PIN# 1517-03-6687.000 from CGW, Inc.
The property would allow the City to have the property perpendicular to the acreage we already own and would allow for
improvements for the improvements of the rail trail crossing and access to our existing property.
Attorney Pope stated the title to the property is good. There is not a current metes and bounds legal description that can be
used in a deed for conveyance based on that I would recommend a survey and recorded plat prior to accepting the deed. The
2017 property taxes would need to be paid also. If the current property owner is taking a tax deduction then there would have
to be an appraisal on the property.
Motion by Council Member Maness and seconded by Council Member Barfield to approve the acceptance of the land
donation from COW, Inc. located on Martin Street, PIN# 1517-03-6687.000 subject to a survey being performed at the City's
expense and that the owners clear the 2017 property taxes and appraisal if they desire to get one.
City Manager Neuschafer stated the idea was to use the property in conjunction with the property we have received by
donation on the other side of the road and this would be a better crossover to enter onto the rail trail. The elevation is higher
and this is something NCDOT wanted to do was improve that crossover. This would allow for us to do a perpendicular
crossing of the road for the rail trail.
Motion unanimously approved.
Settlement Agreement from Hurricane Matthew Damage — Jimmy Coats
City Manager Neuschafer stated it has been discussed briefly, the sewer back up to this property during Hurricane Matthew.
Based on receipts this is a small percentage of the damage that was incurred to this property for your consideration to
approve a settlement agreement with Mr. Coats for damage to personal property from the sewer back up from Hurricane
Matthew.
Motion by Council Member Barfield and seconded by Council Member Tart to approve a settlement agreement with Mr.
Coats for $8,000.
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Council Member McNeill stated the City of Dunn is not libel for personal property. In that case a lot of people lost a lot of
personal property during the storm. We are not a bank to be giving out money. I understand the situation with this gentleman,
but we are not libel.
Council Member Barfield stated there was about $55,000 worth of damage to this property. The sewer is not above the house
and I feel the City has a small responsibility.
Council Member Maness stated regardless of the vote, I would like to request the City Manager direct our Planning and
Zoning Department to look at the appropriate building code requirements and from this point forward, any structure that is
below grade will be required to have a sewer backflow preventer installed on all new construction going forward_ This is a
situation that is beyond the City's control. It was an act of God. Our insurance company denied any claim because if that. Our
City Attorney has advised us we are not legally responsible in this situation. I do not want to set any precedence going
forward now or in the future because of this occurrence.
Mayor Harris stated it would be on a case by case basis and we cannot bind future Councils in reference to what we are doing
here.
Council member Turnage asked if Council Member Barfield to agree to amend his motion to include the back flow
prevention valve.
Attorney Pope stated Council cannot require any individual to anything in particular. What Mr. Maness is requesting is a
requirement to ensure that in our code of ordinances that it require new future construction to have that.
Council Member Maness stated a City wide survey should be done to of any existing below grade properties. We cannot
control where a person has chosen to build their home.
Council Member Tart suggested putting a notice in the water bills and have the customer check to see if they are below grade.
Public Works Director Gaster stated the current policy would need to be reviewed and if there is nothing in there to that
effect then we would need to update the policy to include what we are discussing.
Mayor Harris requested the policy be reviewed and for Public Works Director Gaster to report back to Council at the
December meeting.
Motion passed with Council Members Barfield, Turnage, Tart and McLean voting "aye" and Council Members
Maness and McNeill voting "nay".
Awarding of Project for FEMA Areas 2, 5, & 6
Public Works Director Gaster stated that during the damage assessment by the Federal Emergency Management Agency
(FEMA) the following areas were identified to be damaged by Hurricane Matthew.
• Area 2 — 900 Block of Carolina Drive — Sanitary Sewer Line Repairs — install one "H" pipe, realign pipe, repair
banks and add rip -rap —project cost estimate $82,400
• Area 5 — 1101 N, Railroad Street — Storm Drainage Repairs — install 24 linear feet of 48" reinforced concrete pipe,
concrete end wall, and rip -rap —project estimate - $86,000
• Area 6 — 1159 N. Wilson Avenue — Aerial Sewer Repairs — install 2 concrete piers, replace 90 linear feet of 12"
pipe, and rip -rap bank —project estimate - $63,200
The letter of approval for the project application package has been received from FEMA for this project which combines
Areas 2, 5, & 6 into one large project.
Project worksheets equal to or greater than $123,000 are considered large projects by FEMA and will be reimbursed based on
actual documented expenditures.
Motion by Council Member Tart and seconded by Council Member Maness to award Lorman Grading and Utility
Construction the project for FEMA Areas 2, 5, & 6 to the contractor of recommendation from the November 91' bid opening.
Motion unanimously approved.
ITEM FOR DISCUSSION
AND/OR DECISION
Consideration of Resolution Authorizing Issuance of
Tax -Exempt Bonds for Pinewood Apartments, LLC
Attorney Pope stated the proposed language for the resolution is in red with the intent the borrower and buyer of the property
would make annual payments to the City in lieu of paying property taxes. Mr. Garcia has proposed an alternative language
which essentially rather than annual payments would require one up front lump sum payment and an agreement to be signed
by the Mayor. The reason for being proposed this way is due to the timing and there may not be time for it to be brought back
before the Council. If approved as proposed, you would delegate the authority to the Mayor to negotiate and execute an
agreement that would agree to a lump sum up front payment from the buyer of the property and borrower under the terns of
the bond.
For clarity the proposed language from the Buyer is as follows: "Section 4. Such approval of the Council is conditioned on
the Borrower, prior to closing on the purchase of the Project and issuance of the Bonds, executing an agreement, satisfactory
to the mayor, wherein the Borrower agrees to make an upfront payment to the City of Dunn, North Carolina in an amount to
be agreed upon by the Mayor and Borrower of the Project, such can be made in lieu of property taxes in consideration of the
services to be provided to the Project by the City of Dunn. The execution of such agreement by the Borrower and the Mayor
of the city of Dunn shall be conclusive evidence that this Commission has been satisfied" Otherwise the Resolution would
remain as presented
Section 4 verbiage by the City Attorney is as follows: "Such approval of the Council is conditioned on the Borrower, prior to
closing on the Purchase of the Project and the issuance of the Bonds, executing an agreement, satisfactory to the Council,
wherein the Borrower agrees to make an annual payment to the City of Dunn, North Carolina equivalent to what would have
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been the amount owed for ad valorem taxes to the City of Dunn if the Borrower or Project were not tax-exempt, in lieu of
property taxes, in consideration of the services to be provided to the Project by the City of Dunn."
Motion made by Council Member Maness and seconded by Council Member Barfield to approve the Resolution submitted
by the City Attorney in reference to the bond request for Pinewood Apartments, LLC. Motion unanimously approved. A
copy of Resolution (R2017-24) is incorporated into these minutes as Attachment 96.
Bay Street Water/Stormwater Project Update
Public Works Director Gaster stated preliminary field work has been conducted on E. Bay Street from S. Clinton Avenue to
approximately 140 feet west of S. Wilson Avenue. It has been determined that a 4' X 4' box culvert runs parallel to the 42"
corrugated metal pipe (CMP) on the north shoulder of E. Bay Street. This box culvert appears to be in good condition. The
project will include replacement of approximately 435' of the 42" CMP with 48" CMP. It has also been determined that a
new junction box will have to be built in the 100 block of E. Bay Street approximately 140' west of S. Wilson Avenue to
connect the existing 4' X 4' culvert box, the new 48" CMP, and the existing 15 CMP that provides drainage from the north
side of E. Bay Street to the storm drain lines that run under CSX railroad to the west side of town.
Engineered drawings were previously prepared for Phase II of the E. Bay Street water line project by Davis, Martin, Powell
& Associates (DMP). The Phase II project runs from the west side of S. Clinton Avenue to the east side of CSX railroad on
E. Bay Street. DMP has provided a cost estimate to the City for the Phase II E. Bay Street waterline project, the E. Bay Street
stormwater project, and the street repaving project. Once bid packets are prepared, formal bids will be obtained for this
project.
Mayor Harris stated Public Works Director Gaster and City Manager Neuschafer need to bring back a recommendation and
proposal of the actual bid contracts and financial portion.
Financial Report
Finance Director Mark Stephens provided the following financial report for the period ending September 30, 2017:
• The City as of September 30, 2017 had $2,030,314 in cash in the General Fund and $2,784,976 in the Water
and Sewer Fund. In September 2016 the City had $1,870,608 in the General Fund and $2,185,665 in the Water
and Sewer Fund.
• Property Tax collections through September were $359,525 or less than 9.36% of budget. Last year property tax
collections through September were $447,834 or 12.11% of budget.
• Sales Tax Revenue is $351,817 or 18.28% of budget. Benchmark for the month 16.67% of budget.
• Utilities Sales Tax is $166,376 or 22.39% of budget. Benchmark for this month is 25.00% of budget.
o Building Permit Fees were $17,643 or 27.14% of budget. Benchmark for this month is 25.00% of budget.
• Water and Sewer Revenues were $1,156,772 or 24.35% of budget. Benchmark for this month is 25.00% of
budget
• Expenditures were 21.69% of budget in the general fund and 19.74% of budget in the water and sewer fund.
The benchmark for this period is 25.00% of budget.
Motion by Council Member McLean and seconded by Council Member Tumage to accept the Financial Report. Motion
carried unanimously.
ADMINISTRATIVE REPORTS
Tax Report
Planning & Inspections Report
Public Works Report
Recreation Report
Library Report
Police Report
Collections Report
Property Report
Motion by Council Member Tart and seconded by Council Member McLean to accept the Administrative Reports. Motion
unanimously approved.
City Manager's Report
City Manager Neuschafer noted the following:
• NCDOT meeting was held on October 24" and the deadline for comments is November 27"- The City will be
meeting with the Chamber of Commerce and Travel and Tourism to ensure their membership understands the
deadline for comments and they have an opportunity to make their voices heard. The City will have a link to the
NCDOT website on the City's website.
Human Resources Director Thompson gave a brief update from the FIR Department. A copy of the report is incorporated into
these minutes as Attachment 97.
ANNOUNCEMENTS
The following announcements and/or comments were made.
Mayor Harris:
➢ Campbell University had an open house today at 608 Tilghman Drive for their Osteopathic Medicine Health Care
Center
➢ The Dunn Shrine Parade will be held on Saturday, November 18, 2017 at 11:30 a.m. in Downtown Dunn
➢ Dunn United Ministerial Association will hold a Community Worship Service on Sunday, November 19' at Hood
Christian Church
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➢ City of Dunn offices will be closed on Thursday, November 23" and Friday November 2411 to observe Thanksgiving
➢ Christmas on Broad will be held on Sunday, November 26" from 1:00 p.m. to 6:00 p.m.
➢ The Annual Downtown Christmas Tree Lighting Ceremony will be held on Thursday, November 30" at 6:00 p.m.
The Dunn Christmas Parade will be held on Saturday, December 2" at 2:00 p.m. in Downtown Dunn
The next regular City Council Meeting is scheduled for Tuesday, December 12, 2017 @ 7:00 p.m.
Motion by Council Member Barfield and seconded by Council Member McLean to adjourn the meeting at 8:32 p.m. Motion
unanimously approved.
Ncar N. Harris
\VY OF Mayor
Attest:
Jennifer M. Fortin, CMG SEAS- '
`City Clerk
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