376  Dunn City Council Work Session Tuesday, May 14,2024 6:30 p.m., Dunn Municipall Building  Minutes  PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem J. Wesley Sills, Council Members Raquel Also present: City Manager Steven Neuschafer, Assistant City Manager Billy R. Godwin, Finance Director Cary McNallan, Chief of Police Cary Jackson, Planning Director George Adler, Parks and Recreation Director Brian McNeill, Human Resources Director Connie Jernigan, Public Works Director Dwayne Williams, Collections and Distribution. Manager Billy Cottle, Water Plant Manager Ian. Stroud, Wastewater. Plant Manager Donrie Dukes, Administrative. Support Specialist Amber Groves, City Attorney Tilghman Pope, and City Clerk Tammy Williams. Mayor Elmore opened ther meeting: at 6:30 p.m. and gave thei invocation. Afterwards, Council Member McLean Motion by Mayor Pro Tem Sills and second by Council Member Gaulden to adopt the May 14, 2024 meeting Rescinding Ordinancet tol Demolish 809BI EI Edgerton. A copy ofthe Ordinance (02024-08) is incorporated Rescinding Ordinance to Demolish 411 NI McKay. A copy of the Ordinance (02024-09) is incorporated Rescinding Ordinance to Demolish - 1241 EI Broad St. A copy of the Ordinance (02024-10) is incorporated Motion by Council Member Bradham and second by Council Member Hargis to approve all consent items.  McNeil,April Gaulden, Billy N.Tart, Alan Hargis, and Dr. David L. Bradham.  CALLTO ORDER AND INVOCATION ledi int thel Pledge ofA Allegiance. AGENDA ADJUSTMENT AND APPROVAL agenda as presented. Motion unanimously approved. into these minutes as Attachment #1. into these minutes as Attachment #2. into these minutes as Attachment #3. Motion unanimously: approved. ITEMSI FORI DISCUSSION Process of Hiringa City Manager  CONSENTI ITEMS  Human Resources Director Jernigan shared that the North Carolina League of Municipalities (NCLM) will makea aj presentation concerning hiringac city manager based on council's request of NCLMsassistance passed onN March 27,2023. The presentation and: selection procedure was postponed due tot the untimely Lou Bunch: and Harold Owens with NCLM presented the process ofl hiring the city manager and added thati it willl be up tot the council to determine which process council prefers. This will be one oft the most important decisions the council will make. Need to determine what the city needsa are for the manager. They will needa definition ofv what success means for the council. Need to determine education and experience requirements. She reviewed the time frame oft the selection process ofa about six months. It could take longer as there are currently al lot of open positions for city managers. The average salary range for this position for the City's population group is $140,000 with additional benefits such as car or allowance, life insurance, deferred Publicizing is especially important for the position. She discussed the candidate screening process, application review procedure and interview process. Confidentiality is critical and none oft the information received from candidates can be released. The council will determine if you use a committee or will you all screen together in closed session or will you hire a firm to oversee. Itis awkward for staff to bei involved in this process. There are about 70 city manager vacancies across the state ata any givent time. She again stressed confidentiality. She suggested asking supplemental questions oft the top three candidates. She shared that as you are evaluating candidates, they are also screening, you. Itisr recommended that the applicant is given an The council needs tol be ont the same page with the interview process and all candidates need tol be: asked the same questions. The contract and appointment are done in open session. Owens added not to count a candidate outj just because he was let go but to determine those reasons. Ify you do not feel comfortable with thec candidates, start all over again, do not just settle. Council Member Bradham asked about the requirement tol live in the city and Branch added that some municipalities do not require that but just in the Councill Member Hargis asked about! hiringa as search firm: and she said itis completely upt tot thei individual county. city. Owens added it will cost about $25,000 plus tol hire a firm. He also encouraged that Council be sure the Planning Director Adler presented a request to rezone four parcels totaling 1.3-acres +/- at 6474/6514 Fairground) Road. The property is currently zoned R-20, residential District and is proposed to ber rezoned to  of passing  the Assistant City! Manager. The councill has elected tor move forward.  income, and healthi insurance for dependents.  agendaf fort the day oft thei interview,: sot they can be prepared.  attorney is alwaysi involvedi int thej process.  CZ-03-24- Conditional Rezoningl Fairground Rdl Duplexes R-7CZD, Residential Conditional Zoningl District top permit only duplexes.    377  These parcels are on the west side of Fairground Road near Holly Avenue. Two of the parcels have manufactured homes, two are vacant. The area on the west side of Fairground isl heavily wooded and zoned R-20. The: area ont the east side of Fairground isz zoned R-10, including a subdivision developed in the 1970s around Holly, Sycamore, Sainte, and Pine. Dunn city limits runi north ont the center of Fairground and include thes subdivision ont thee easts side. The fours subject parcels are adjacent to city limitsi inl Dunn'sETJ. Ther request ist tor rezone from R-201 tol R-7 CZD to permit only duplexes. Mr. Szalecki presented a sketch plan showing 60 duplexes, 12 units total. The 12 units will share two driveways off Fairground with parking in the The Planning Board, at their regular meeting onl May 7,heard presentations from staff and Matthew Szalecki, Family Building Company, who is acting as the agent for the property owner, Shelton Davis. The Planning Board voted unanimously to recommend approval oft this conditional zoning request with the following six  rear. They arel having the property annexedi into the city.  conditions, agreed tol by Szalecki:  1. 2. 3. 4. 5. 6.  That only duplexes be allowed, with supplemental: standards) per thel UDO; That nor more thant two driveways ontol Fairground be permitted; That: alla access easements bei identified int the recorded plat; maximum build-out oft the entires site; and possession oft the parcelsi ini fees simple, as presented. Johnston Lee Harnett Community Action Lease Renewal  That all units ber rearl loaded;  That the Development Permit incorporate stormwater management best practices to handle That development approval be contingent on resolving all deed issues to clarify that the owner has  Following questions concerning the quality ofl home materials, Mayor Elmore closed the discussion. City Manager Neuschafer presented proposed lease renewal between the City of Dunn and Johnston-Lee Harnett Community Action, Inc. The North Carolina Non- Profit Corporation has leased the old kindergarten building att the former Harnett Primary Schooll located at 6701 East) Johnson Street, Dunn. This lease expired on March 29, 2019, and thereafter became a month-to-month tenancy. JLHCA, INC, operates a Head Start Motion by Council Member Hargis and second by Council Member Gaulden to approve, at an annual rental rate of$ $36,000.00, the five-year lease between the City of Dunn and Johnston-Lee Harnett Community Action, Inc as presented. Motion unanimously approved. A copy of the Lease Renewal has been filed with the City Finance Director McNallan reviewed the Council survey results for project funding. Top projects are the tournament preparations and street resurfacing. For Employee Wage Adjustments: Two votes for merit only of3-4%, One vote for July 1 salary adjustment and Jan 1st merit. Others stated more discussion was needed,  program ont the premises and nows seekst tor renew thel lease fora a period off fivey years.  Clerk/Contracts) file.  Preliminary FY25 Budget Information  orr nor reply.  Staff FY251 Recommendation:  July 1st Salarya adjustment of 2% for alle employees Jan 1st! Merita adjustment of0-4%f fore eligible employees Estimated Cost: Generall Fund $252,000, W&S Fund $104,000 McNallan reviewed. Accounting changes Allocation ofp property insurance and otheri insurance premiums Reductioni in Non- Departmental expenses Increased expenses in other departments Noe effect on the overall funds Created 41 new reporting divisions City Halll Facility- previously reported inl Non- Departmental Animal Control - previously reportedi in Police Garage/Fleet- previously reportedi in Public Works Cemeteries- - previously reportedi in Parks & Recreation  City! Manager Neuschafer reviewed proposed rates for Water, Sewer, and Sanitation: Services. Minimum users using 2000 orf fewerg gallons will see ani increase of6 6.68% ($5.31 increase). Family using 5000 gallons will: see ani increase of7.44% about $9.00 per month. Looking: atr raisingi non-residential only- minimum goingf from $120 to $168 Maximumi wouldg go to 55 units from $1470t to $2310ay year with only 441 properties affected. Increases revenues toa about $475,000 ay year from $420,000 ayear.  Hep proposed: stormwater fee changes:  With allt the discussions aboutt trying to do more including street resurfacing, staffi is proposing the following  changest toi increase revenues: Current' Taxl Ratei is$ $0.50  One cent generates $112,942 oft taxi revenue    378  Increase City Tax Rate by $0.06  $0.02 for General Fund expenses ($225,884)  $0.04 tol be dedicatedi tos street resurfacing ($451,768) only paving.  A$0.06 increase int the taxr rate would add $150 tot the city portion oft the property tax foral house assessed at Resurfacing funds are available through USDA, sot this is a wonderful opportunity to do a large project with lower interest rates and longer loan terms. He added with SEPI, he feels like staff can putt together a good The othert two cents would) help! balance the budget with the projects needed and requested toi include: DYB Tournament, Street Resurfacing, City Hall Improvements, Police Career Development, Computer McNallan added that this budget does the work and rewards employees but obviously there is a cost to it. Without a2 cent increase the city willl have a deficient of $575,000 and ifv we do not do the projects, then a Council Member Sills questioned just usingt the fund balance instead ofr raising taxes especially with a surplus this year. "not voting to raise taxes." McNallan shared that using fund balance is not a smart decision ast the LGC willl bel looking: att these financials to determine ifwe can take onr more loans. This isi important for water ands sewer projects as wella asi ifas storm happens, wer must fund all the expenses priort tol being reimbursed. Council Member Gaulden stated that she felt that employees should be a priority and should receive COLA Discussion followed on cutting expenses. Neuschafer said that they have already looked at cutting but can cut some more. Discussion followed on cutting out some of the projects and expressing the importance of the projects listed. Council Member Tart expressed concerns about debt service. McNallan agreed that this is Council Member Bradham added that the funding for streets has been an ongoing problem since hes started. Neuschafer addedt that it isap problem for every community, andi itisa a never-ending battle. This isj just trying Neuschafer askedf for the council to reach out and to give staff direction onl how to proceed with the budget. The budget must be published on June 1. Council Member Tart requested tax rates of surrounding communities and the cola increases around thea area. Neuschafer added that thel last increase was 2014 which went up 2 cents, sol history has been very conservative. He feels that the city is competitive. Tart added that the tax rate would! have already been increased ifity were not for the increase in sales tax. Must be prepared for emergencies because the expenses must be handled upfront and hopefully be reimbursed the following year. McNallan pointed out thatt the city's.debts service is higher than surrounding communities.  $250,000.  package for thej paving project.  Replacements, PWI Boom' Truck, Valve Turning Machine, and PW Vehicle Lift.  $250,000 deficient.  and merit.  especially important: and the LGCisr really going tol look att this. ton make: ane effort tor reach the worst: streets andf fix them now.  McNallan: added thef following information: General Fund Debt Service= $0.105 oft the $0.500t tax rate FY23 Generall Fund reserves $4.4M or 34% ofe expenses FY23 Water & Sewer Fund reserves: - $3.9Md or 55% ofe expenses Strongf financial reports arei important for LGC financing approvals FY26: $1.4M! balloon) payment due- Harnett Training Schooll loan  March 2024 Southl Region CPI was 3.8%  Mayor Pro Tem Sills addedt that there are approved ad valorum projects that should help with tax revenues. The Mayor added this is approved but not guaranteed and McNallan added that ifit is not built by mid- summer, iti is not going to increase revenues this year. McNallan shared budget timeline: Budget to be Council Member Gaulden askeda about the funding for PAL is there a contract or reason we continue to fund PAL. Neuschafer stated that $57,500 is in the budget, which is half of what they are currently getting and there isal Police Officer salary assigned to PAL. We do not! have enough officers tof fillt that position rightr now. Council Member Hargis added that a lot oft thel budget went to salaries with almost 50% ons salaries. Council Member Gaulden asked ift they have other means of funding than why does this allocation continue? Why should this non-profit be different than others? Council Members Gaulden and McNeil both felt the funding Mayor Pro Tem Sills agreed that there should be an application process if the city is going to distribute to non- profits. Council Member Bradham added that ity was difficult to decide when that process was inj place. Mayor Pro Tem Sills stated not taxi increase, take money from fund balance to do all the projects and cut PAL to zero. Council Member Gaulden added employees first. Council Members Gaulden and McNeil were in  published June 1,Public Hearing June 11, and adoption onj June 25.  for non- profits should bea applied for.  Questions arose: should the city even be using taxf funds for non- profits.  consensus with Sills.    379  Council Member Bradham felt thatt theres should bet time tos sleep oni ita and talk to Steven to give! him guidance Mayor Elmore added that there has been a great discussion tonight and Council has some tough decisions to  onv what we wantt tod do.  make. Pleaser reach outt to! Neuschafer by Tuesday ofr next week. Mayor Elmore: announced upcominge events and: activities.  Ammouncmemty/lmiomaton  Acopyo oft the Proclamation (P2024-04) isi incorporated. into these minutes as Attachment: #4.  With nof further business to discuss, motion by Mayor Pro Tem Sills and: second by Council Member Gaulden toe enter a Closed Session concerning- [N.C.G.S. 143-318.110a)(5)) toi instruct staff concerning the negotiation oft the price and terms of a contract concerning the acquisition of real property. Motion unanimously The meeting was reconvened and with no further business, Mayor Elmore adjourned the meeting with no  approved.  Mayor Elmore recessed ther meeting at 8:55p.m.  objectiona at 9:23j p.m.  VD Elmorejr. TA Major SEAL CA  f  Attest:  Glein  City Clerk  Clgada