324  Dunn City Council Regular Meeting Tuesday, October 17,2023 6:30j p.m., Dunn Municipall Building  Minutes  PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem Dr. David L. Bradham, Council Members Also present: City Manager. Steven Neuschafer, Assistant City Manager Billy R Godwin, Finance Director McNallan, Chief of Police Cary Jackson, Planning Director George Adler, Parks and Recreation Director Brian Cary McNeill, Human Resources Director Connie Jernigan, Public Works Director Dwayne Williams, Assistant Public Utilities Billy Cottle, Donrie Dukes, Wastewater Treatment Plant. Superintendent Ian Stroud, Water Treatment Plant. Superintendent, Administrative Support Specialist Amber Groves, City Attorney Tilghman Mayor Elmore opened the meeting at 6:30 p.m. and Reverend Jacob Dye with Divine Street United Methodist Church gave the invocation. Afterwards, Council Member Turnage led in the Pledge of Elmore recognized the newly elected officials in the audience, Raquel McNeil Ward 3 and Allegiance. Alan Hargis- Mayor Motion by Council Member Turnage and second by Council Member Sills to adopt the October 17, 2023 meeting agenda as presented with the addition of Temporary Blocking of City Parking at  Wesley! Sills, Frankl McLean April Gaulden, Billy N.Tart, and Chuck7 Turnage.  J.  and Pope, City  Clerk Tammy Williams. CALLTO ORDER ANDI INVOCATION  Ward5.  AGENDA ADJUSTMENT AND APPROVAL  Park lot, Tyler  Veterans Park for October: 28. Motion unanimously approved.  CONSENTITEMS  Minutes oft the September 12, 2023 City Council Meeting: and September 19,2 2023 Speciall Meeting Retirement Resolution Captain Johnny Royal. A copy of the Resolution (R2023-39) is incorporated into Resolution Declaring Badge and Service Weapon Surplus and Awarding upon Retirement Captain Johnny Royal.Ad copy oft the Resolution (R2023-40) is incorporated into these minutes as Attachment #2. Conveyance of Personal Property to Buies Creek Fire Department. A copy of the Resolution (R2023-41)is Halloween Resolution - A copy of the Resolution (R2023-42) is incorporated into these minutes as Temporary Parkingl Lota and Street Closings Cotton Festivall Revision and Car Show Addition Property and Liability Insurance Coverage FY2024 A copy of the Resolution (R2023-43) is incorporated American Rescue Plan Act Adoption of City Policies A copy ofthe! Resolution (R2023-44) is incorporated Motion by Mayor Pro Tem Bradham and second by Council Member Gaulden to approve all consent items.  these minutes as Attachment: #1.  incorporated into these minutes as Attachment: #3.  Attachment: #4.  Temporary Street Closings Christmas' Treel Lighting/Christmasl Parade Temporary Parkingl Lot Closing- Flaval Eats Food Festa at' Tyler Park  into these minutes as Attachment #5. into these minutes as Attachment: #6. Motion unanimously: approved. PRESENTATIONS  Captain) Johnny Royal Retirement Recognition Readingo ofVeterans Day! Proclamation incorporated: into these minutes as Attachment #7. PUBLIC COMMENTI PERIOD  Chief) Jackson! presented the Retirement Resolution to Captain Royal.  Council Member Turnage read the Veterans Day Proclamation. A copy of the Proclamation (P2023-12) is The Public Comment Period was opened by Mayor Elmore at 6:42 p.m. Cindy McNeil, David Patterson and Travis McNeill: spoke to Council concerning the need fora a water tapi for Walkers Chapel at 4234 Ashe Avenue.  With no additional comments, thel Public Comment period was closed. ITEMSI FORI DISCUSSION. AND/ORI DECISION CZ-02-23: Conditional Zoning- 207 Sunny Avenue  Mayor Elmore opened the Public Hearing at 6:45 p.m. Planning Director Adler presented a request to conditionally rezone one parcel +/-.19a acres, located at 207 Sunny Avenue, between West Cumberland: Street and West Divine Street. The property is currently zoned R-10, Single-Family Dwelling District and is  proposed tob ber rezoned to C-3CZD, Highway Commercial Conditional Zoning District.    325  Att their September 26, 2023, meeting, the Planning Board reviewed the request to rezone 207 Sunny from R- 10to C-3 CZD to permit the existing single-family detached to be used as barber shop/beauty salon, with a submitted site plan; and to limit the number of permitted uses. The paved driveway entrance covers the water and sewer laterals. Staff recommended that the City add the condition that the property owner accept financial responsibility for any damage tot thel lateral (water meter, clean-out, etc.) from the edge ofp pavement, rather than from the front property line. The owner has agreed to this condition. AI neighborhood meeting was held at 207 Sunny. No concerns about the rezoning request were expressed. The Planning Board voted  unanimously tor recommend that the City Council adoptt this rezoninga as presented. Thea amendment, ifsmalls scale, is reasonablel based upon: surrounding conditions.  Staff Report findings presented" were:  REASONING: The conditional rezoning from residential (R-10) to C-30 CZD proposed for this parcel will limit the number of permitted uses in C-3 as one oft the conditions proposed by the owner. The rezoning will permit al barber shop/beauty saloni ina aj pre-existing building with pavement for parking already in place. The only immediate change to the parcel will be increased buffering of new fencing and landscaping. This amendment willl bes small scale and reasonable based ons surrounding conditions. The impact to the adjacent property owners and the surrounding community is reasonable, and the benefits ofi rezoning outweigh: any potential inconvenience orl harm tot the community. REASONING: The impact on the surrounding property owners would be reasonable. New fencing and landscaping outside the fence will help screen the property from adjacent neighbors. The adjacent property to the north, though zoned R-10, has been a dry cleaner for a long time. The subject property had been used asal hair salon previously, sot there should bel limited impact on neighbors. Thel benefits of the conditional: zoning proposed are expected to outweigh any inconveniences the rezoning may cause. REASONING: The amendment is warranted due tog growth. The conditional zoning application shows the site planj proposed and the only uses that willl be permitted in the future: the proposed hair salon/barber shop, banks &f financiali institutions, dry cleaning &1 laundry, games & arcades, personal care services, pet care services, and studios. These limitations allow commercial activity, while limiting its impact on the REASONING: The Future Land Use Mapi identifies this site as a Gateway and Corridors Character Area. Converting a residential structure into a commercial use, while limiting the number of permitted future John Willoughby, owner of Sunny Cleaners spoke inf favor of the rezoning. With no additional comments, the Motion by Mayor Pro' Tem Bradham and second by Council Member Sills to approve CZ-02-23, the request to rezone 207 Sunny Avenue, PIN 1516-29-2345.000, from R-10 Single-family to C-3 CZD, Highway Conditional Zoning District, limiting future uses to the proposed site plan for a hair salon/barber shop, and banks & financial institutions, dry cleaning & laundry, games &a arcades, personal care services, pet care services, and studios asi it conforms and is consistent with the Future Land Use Plan, and require that the property owner accept financial responsibility for any damage to the lateral (water meter, clean-out, etc.) from the edge of Planning Director Adler informed Council that this item was tabled at the Planning Board meeting to give time tot the developer top puta a little more detaili into their site plan and for planning stafft to doal little research onl how other cities, int the area, handles such cases. Thej planning boardi is expecting to see the revisions next week att the meeting. Samantha Wullenwaber will be coming as a representative of the Regional Council to speak tot the Planning Board about her experience with these types of cases and how various other cities Motion by Council Member Tart: and second by Council Member Gaulden tot table CZ-03-23, until the Planning Mayor Elmore opened the Public Hearing at 7:03 p.m. Planning Director Adler presented request to conditionally rezone one parcel 3.5 acres +/-att the northeast corner of 301 South and Long Branch from R-20 Single-family Residential District to C-3 CZD, Highway Commercial Conditional Zoning District. The request included a site plan for a 10,000 +/- square foot structure for a variety/grocery store with parking, landscaping, ands storm water control. The Planning Board voted unanimously tor recommend that the Council adopt this request as presented, including limiting the uses tol be permitted on the site to the twenty uses in  Thea amendment is warranted due to changed or changing conditionsi int the: area.  residential neighborhood ofv whichi iti isaj part. uses, conforms tot this character area. consistent with thel Future Land Use Plan. Public Hearing was closed.  The amendment: achieves the purpose andi is consistent with thel Land Use Plan.  location  Avenue conforms and  Staff concludes that this Conditional Rezoning to C-3 CZD at this  on Sunny  is  pavement, rather than from the front propertyl line. Motion unanimously: approved.  CZ-03-23: Conditional Zoning- Susan Tart Rd  handlet them.  Board can review the: applicantsrevised: site plan. Motion unanimously approved. CZ-04-23: Conditional Zoning, Corner ofl Longbranch Rd: and US301S  C-31 listedi int the Staff Report. Staff Reportf findings presented were:  The amendment, ifs small scale, isr reasonable based upon surrounding conditions.  REASONING: The conditional rezoning to C-3 CZD proposed for a variety/grocery store is reasonable basedo ons surrounding conditions." Thej parcel is currently 3.5 acres oft trees, the: areai iss sparsely populated, and existing uses to the south and west are all office ori industrial. The developer has proposed only a limited number of uses usually permitted in C-3 to be permitted in this location as part of the CZD as follows: hotel/inn; bank/financial institution; general commercial, nott thrift store; professional    326  office/service; Restaurant; business asociations/morproits, civic clubs; child care/adult day care (8 or less); child care/adult day care (more than 8); medical clinic; Hospital; museum/lbrany/ultural facility; post office; public administration/ civic meeting facilities; religious institutions; research & development services; vocational school; sports arena; studio (art, dance, etc.); theater, indoor movie or live The impact to the adjacent property owners and the surrounding community is reasonable, and the benefits ofr rezoning outweigh any potential inconvenience orl harm to the community. REASONING: Thei impact on the surrounding property owners would be reasonable. The adjacent parcels tot ther north and east are: zoned residential, though only the parcelt to the easti is used asi residential, with an occupied single-familyl home on it. The parcel tol be rezoned is on the corner of two important roads: 301 and Long] Branch. Itis located less than one mile from an 1-95 interchange (exit 71). Existing trees will remain tob buffer the single-family home from this development. Havinga a store int this location willl be abenefit to outweigh any anticipated inconvenience to the community. The applicant has agreed to use exterior material such as Hardi-Plank, masonry, ors similar material on atl least 80% oft the front: and: sides REASONING: The amendment is warranted because our area is growing. The applicant has agreed to voluntary annexation. The site plan submitted for this C-3 CZD rezoning shows specifically what is being approved for this site, SO decision makers know thes size oft the structure, parking, buffering, etc. Thisi isa REASONING: Thel Futurel Land Use Mapi identifies this site as an Office & Industrial Character Area, though Long Branch Highway Commercial is also appropriate. The proposed site plan and other proposed Staff concludes that the Conditional Rezoning to C-3 CZD att this location at the corner of 301 South and Long Branch with the proposed: site plan and with the proposed limitations ont ther number off future permitted uses Thomas Neville, Land Use Attorney spoke on behalf of the developer. With no additional comments, the Motion by Council Member Turnage and second by Council Member Gaulden to approve CZ-04-23, the request tor rezone the 3.5 +/- acres at the northeast corner of 301 South and Long Branch Road from R-20 single-family residential to C-3 Highway Commercial CZD, to permit the development of the site plan presented: for a variety/grocery store and limit the future use oft the parcel to only the uses included in Staff Report, as with the proposed site plan and with the proposed limitations ont the number off future permitted uses conforms witha andi is consistent with thel Futurel Land Use Plan. Motion unanimously approved. City Manager Neuschafer presented for consideration aj petition requesting the voluntary non-contiguous annexation of property located on the corner ofl Longbranch Rd and US 301 S, PIN #1515-16.0072000,35 Motion by Council Member Sills and second by Council Member Turnage to adopt the Resolution Directing the City Clerk to Investigate the Voluntary Annexation Petition ANX-02-23 as presented. Motion unanimously approved. A copy of the Resolution (R2023-45) is incorporated into these minutes as City Manager Neuschafer presented a request to adopt an official E-911 road name for a new street that has been constructed by NCI DOT due to the I-95 widening construction project. The street connects Jackson Rd with) Interstate Drive andi isa across from the Tart Parke entrance tot the Community Building: and the Recreation Center. A request was submitted to the E911 addressing to investigate the proposed name and it came back with no conflicts for 911 purposes from Sampson,) Johnston, Cumberland, and Harnett County. Motion by Council Member McLean and second by Council Member Gaulden to adopt" Dorman-Tart Road" as the name oft the street connecting! Jackson Rdt tol Interstate Drive. Motion unanimously approved. Finance Director McNallan highlighted investment services for consideration. KS Trust, Wealth, and Investment Management currently serves about ten other municipalities for investments. They have an annualized: fee of. .2%, which ont the $2,000,000 portfolio, is about $200. Based on a hypothetical $2 million investment, their projected yield would be about 5.41%. The Lighthouse Group, which is' Truist bank, does noto currently serve any municipalities fori investment services. They did offera.15%. Management fee, which would be $250 based on a $2 million portfolio and their net yield would be 5.3%. And then finally, First Citizens Wealth Management which currently serves 126 million municipalities throughout the four-state region, so they dol have a considerable amount of experience. Their annualized fee was .45 percent which would be $750 per month ona a $2r million portfolio, with a net yield of5 5.05. Staffi is recommending that we go with KS Trust. Currently, the City investments are in the CMT investment account, which is Capital Management trust and is earning around 51/296. Thei idea ofc doingt these long-t term investments isi ifi interest rates start to go down, we can lock in some oft these long-t term investments over a one to three-year term, because the CMT account follows the Federal Reserve soi it will go downi ift the feds interest rate goes down.  performance;: and nurseries and garden centers.  oft thes structure.  Thea amendment is warranted due to changed or changing conditions int the: area. Thea amendment: achieves thej purpose and is consistent with thel Land Use Plan.  positive development  conditions all conform tot the Future Land Usel Map. conforms andi is consistent witht the Futurel Land Use Plan.  Public Hearing was closed.  Annexation. ANX-02-23, Corner of Longbranch Road: and US301S  acres.  attachment: #8. Naming of Municipal Street  Investment: Services  Thisi isa way tol locki inl higher interest earnings fora a longer period.    327  After discussion, motion by Council Member Turnage and second by Council Member McLean to authorize Citys staff to enter into an investment services agreement with KS Trust Wealth & Investment Management andi invest upt to $3M ofc cash reserves intol longt term (0-3years)i instruments and brief Council twice aj year. Finance Director McNallan presented a capital project ordinance to establish a fund for recording the expenditures and funding sources fort this project. Funding willi includeat transfer of$185,2001 from the Water Water Plant Superintendent Stroud shared that the project includes upgrades to the filter consoles and rehabilitation oft the concrete clear wellt tanks. Both projects arel located att the Water Treatment Plant. FILTER UPGRADE/REPAIR: To repair and replace critical infrastructure components for the operation and REHABILITATION OF TWO CLEARWELLS: Tol limit the possibility off foreign contaminants from being able to leachi into the clear wells through smalls cracks in the concrete structure and contaminate our potable water supply. Hes shareds specifici information concerning both projectst tos showt thei importance of proceeding. Thee estimated costs for thef filter console project are $86,000 and the estimated costs, for the clear well tanks Motion by Council Member Sills and second by Council Member McLean to approve the capital project ordinance and budget amendment for the FY24 Water Treatment Plant Project as presented. Motion unanimously approved. A copy of the Ordinance (02023-23) and Budget Amendment (BA2024-06) are City Manager Neuschafer advised the council that during the spring round off funding, the City of Dunn was awarded a Clean Water State Revolving Fund loan of $2,805,150 for stormwater quality. He also gave an update on the contract for inspections on dilapidated houses and said once due diligence was handled, the Financel Director McNallan provided thef followingf financialr report for the period ending September 30, 2023: Water and Sewer Revenues for the month were $690,130, with total collected year to-date at $1,665,322 Sales Tax receipts were $318,170, with total collected year to-date FY2023 at $3,231,883 or 101% of Utilities Sales Taxes received for they yeari is $817,9661 for FY2023, compared to $668,8061 in FY2022. Building Permit Fees total collected is $58,421 or 36.5% ofb budget compared tot total collected last year of Generall Fund expenditures for montha are $880,686, with total expenses to-date at $3,154,720 or 23% of Water and Sewer fund expenditures for the month are $591,958, with total expensed to-date at $1,562,229, or 14.5% ofb budget, compared to$ $2,043,250 lasty year. Revenues to-date are $1,763,864. Stormwater fund expenditures for ther month were $3,335, with total expenses to-c date of$53,682, or Reports were alsor received as follows: Planning and Inspections Report, Public Works Report, Public Utilities City Manager Neuschafer added that the City did receive a direct state appropriation from the recently approved state budget for drinking water/wastewater. Appropriations, after the fee that is reserved by the North Carolina DEQ, is $6,887,000, sot that will be available for Wastewater/Water: and possibly Stormwater expenditures. Mayor Elmore added that this is an: absolute grant like other monies we have received for our sewer situation. So, our representatives in! Raleigh are really looking out fort the city and we: are very thankful Mayor Elmore announced upcoming events and activitiesi including the run-off for Mayor on! November 7. With nof further business to discuss, motion by Council Member Sills and: second by Council Member Gaulden  Motion unanimously: approved. Water Treatment Plant Equipment Project and Sewer Fund reserves.  control oft the four filter rates and the disinfection process att the WTP.  project, are: $99,200.  incorporated. into these minutes asA Attachment: #9.  Administrative Reports  properties would bel brought to council.  The City! has $4,815,173 cash, comparedt to$ $11,741,1101 lasty year. or 20.8% of budget, compared to$ $1,786,4581 in 2022.  Property" Taxes are $189,241.  budget. $28,210.  Budget, compared to$ $3,191,082 in: 2022. Revenues to-date are $873,161.  13.4% ofl budget. Revenues to-date are $118. Theb benchmarki for this periodi is 25% oft thel budget. McNallan also updated onc debts service and] liens and assessments. Report, Parks and Recreation! Report and Police Report.  fort that! help.  Announcements/Information  toa adjourn the meeting at7 7:44p p.m. Motion unanimously: approved.  hpll m.Niy  WiliamP.E  Attest: TammyV  R  SEAL CAROs  Cannylnke Williams,ity Clerk