275  Dunn City Council Special Meeting Tuesday, January 17,2023 3:30 p.m., Dunn! Municipal Building  Minutes  PRESENT: Mayor William P. Elmore Jr., Mayor Pro Tem Dr. David L. Bradham, Council Members J. Also present: City Manager. Steven Neuschafer, Assistant City Manager Mathew Boone, Finance Director Cary McNallan, Public Utilities Director Heather. Adams, Chief of Police Cary) Jackson, Public Works Director Dwayne Williams, Administrative Support Specialist II Debra Creighton, City Attorney Tilghman Pope, and City Clerk Mayor Elmore opened the meeting at 3:30 p.m., gave the invocation and afterwards led in the Pledge of Motion by Council Member Turnage and second by Mayor Pro Tem Bradham to adopt the) January 17,2023  Wesley Sills, April Gaulden, Frank McLean, Billy N.1 Tart, and Chuck Turnage.  Tammy Williams. Allegiance.  CALLTO ORDER ANDI INVOCATION AGENDA. ADJUSTMENT. AND APPROVAL meeting agenda as presented. Motion unanimously approved. ITEMSI FORI DISCUSSION, AND/ORI DECISION Consider Awarding Contract for Black River WWTPI Improvements  Public Utilities Director. Adams reminded council aboute executing the legal binding agreement, Special Order by Consent (SOC), with the State. The SOC: spelled out seven different projects that we will need to complete by December 31, 2026. One of the projects is the WWTP Improvements Project, which includes addinga a clarifier, rehabbing a clarifier, constructing a new chlorine contact basin, constructing a new chemical feed system for pH adjustment, and to upsize the aeration basin yard piping. The city receives flow allocation for each project it completes. She reminded Council all these projects are needed and required due to the SOC, and doing part of the projects and nota all, would not meet the requirements oft the SOC, which expires March of2 2027. Ifthe cityi is not able to complete the projects to handle excess peak flow, then we would not bei in compliance and would be put back under ar moratorium. Our focus is on decreasing inflow in the plant to eliminate outflow issues. Total cost for the project is $12,482,100. TA Loving and DMP have completed the design and have submitted permits tot the State inc order to receive authorization to construct. TAI Loving has provided a guaranteed maximum construction price of $12,048,100. Funding oft the project is through SFR Loan $3,626,000 (30-year loan at 0.13% Interest Rate) with Closing Fee $72,520 and ARPA Grant Funds Adams added that in today's market, projects are showing increases of 40 to! 50%. She also added that the Council Member Turnage asked about using the $30M for this project. Adams confirmed that this has been approved by thes state: sot then we will: seek additional funding when working onf final project. City Manager Neuschafer explained all the projects, which are in addition to the treatment plant and pipe work; The WWTP will be the first project, then the pipeline projects, then we will start the Machine and Welding outfall and then the effluent forcemain project that sends water back to the Cape Fear River. Finally, thel Eastside forcemain project, which will complete thej projects required by the SOC. Mayor Elmore added that the Cityl has been given a $33M grant tof fund all these projects with a commitment to borrow $3.6M, which has changed with this first project. All grant money has to be spent by 2026. We either spend orl lose the grant funding and the SOC is tied to this as well. So without getting these projects completed, we will not bei in compliance with the SOC. He restated that the $30M will fund the first three Adams confirmed that stafff feels confident that these projects can be completed: int the required timeline. Turnage asked about additional increases for residents. Neuschafer said that it is all based on water and sewer rates. There is no way to get around that there will be additional increases on rates. Turnage stated that he would like everyone on the council to be on the same page in understanding how to deal with this Adams added that if the System Development Fees are implemented they also would help inf funding these projects and relieve some pressure off the existing customers. Neuschafer added that new growth is also Chris Meyers with TAI Loving told Council that he did not expect delays that were not already factored in. Material availability would probably be the onlyt thingt that might cause a delay. Hes said that they are looking ato cutting cost as much as possible but that has already been looked atc quite al bit to get to this point. Mayor Elmore asked DMP did they consider concessions and Mike Slusher with DMP replied" "would like to address atal later time. Insurance company has been contacted hoping tol bea ablet to discuss soon with the City." Adams added that staff would prefer moving forward so we can begin ordering materials and hopefully they can  $8,856,100.  contract has been reviewed by City Attorney Pope. Council Member Sills arrived in the meeting.  projects and then with thef finalj project, we will seek additional funding.  elephant.  goingt tol helps spread the cost withi future rates.  work ons savings withl DMP onf future projects.    276  Motion by Council Member Sills and second by Council Member Turnage to enter into a contract with TA Loving Company for the construction of the Black River WWTP Improvements contingent upon the Division of Water Infrastructure approving the City to use ARPA funds to cover the remaining portion of the project budget as presented and upon approval of the City Manager on the final contract document. Motion approved with Council Member Tart opposed due to no concessions being made on the contract due Project Amendments Black River WWTP Improvements Project and Eastside Pump Station and Finance Director McNallan presented request for Council to approve capital project ordinance and budget amendments in order to fund the revised construction budget for the Black River WWTP improvements by transferring American Rescue Plan Act (ARPA) funding from the State Fiscal Revolving Fund (SRFR) from the Motion by Council Member Turnage and second by Council Member Sills to approve the attached capital project ordinance amendments and budget amendment for the Black River WWTPI Improvements projectand the Eastside Pump Station and Forcemain project. Motion unanimously approved. A copy of the Budget Amendment (BA2023-04), Ordinance (02023-01) and Ordinance (02023-02) are incorporated into these With no further business to discuss, motion by Mayor Pro Tem Bradham and second by Council Member  to the errors on the estimate. Forcemain Project  Eastside Pump Station & Forcemain Project.  minutes as Attachment: #1.  Gaulden to adjourn the meeting at 4:26 p.m. Motion unanimously approved.  OF DUNN ORDNR SEAL CP  Milliam P. Elmore Jr. Mayor dPNy  Attest:  Cnu MGos  Tammy Williams, CMC, NCCMC  City Clèrk