266  Dunn City Council Regular Meeting Tuesday, December 13,2022 6:30 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, Outgoing Finance Director Jim Roberts, Finance Director Cary McNallan, Public Utilities Director Heather Adams, 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, Administrative Support Specialist II Debra Mayor Elmore opened the meeting at 6:30 p.m. and introduced two Triton High School students, Berkley Campbell and Mckenna Moore attending the meeting for class credit. He gave the invocation and led in the Motion by Council Member Sills and second by Council Member Gaulden to adopt the December 13, 2022  Wesley Sills, April Gaulden, Frank McLean, Billy N.Tart, and Chuck" Turnage.  Creighton, City Attorney Tilghman Pope, and City Clerk Tammy Williams.  CALLTOORDER ANDI INVOCATION Pledge ofA Allegiance.  AGENDA ADJUSTMENT AND APPROVAL  meeting agenda as presented. Motion unanimously approved.  PRESENTATIONS  Special Recognition- Council Member Tart  Mayor Elmore presented a Resolution of Appreciation to Council Member Tart in recognition of his many years of service to the Dunn Area Tourism Authority. Tart was also presented a gift from the Tourism Authority by Director Cristy Bullock. Acopy of the Resolution (R2022-49) is incorporated into these minutes as  Attachment #1. New Employee Introductions PUBLICO COMMENT PERIOD Comment period was closed. CONSENTI ITEMS  Chief Jacksoni introduced Officers Jonathan Hall and Tracy Jackson.  The Public Comment Period was opened by Mayor Elmore at 6:45 p.m. Having no comments, the Public  Minutes oft the October 24, 2022 and November 15, 2022 City Council Meeting. Special Event Permit Temporary Blocking of Streets, Martin Luther King, Jrl Parade  Assignment of Authorized Personnel for Banking Access. A copy of the Resolution (R2022-50) is Motion by Council Member Tart and second by Council Member Sills to approve all consent items. Motion Ordinance to Extend the Corporate Limits, Voluntary Annexation Petition ANX-03-22, RP Wellons Mayor Elmore opened the Public Hearing at 6:46 p.m. City Manager Neuschafer presented the petition for voluntary contiguous annexation of property located north of Friendly Rd at T Intersection with Powell Ave, identified in the Harnett County Registry as PIN #1517-16-0758.000 and 1517-15-4365.000. Ifapproved, the annexation would be effective January 1,2023. With noa additional comments, the Public Hearing was closed. Motion by Council Member Sills and second by Council Member McLean to adopt the ordinance to extend the corporate limits oft the City of Dunn as presented. Motion unanimously approved. A copy of the Ordinance Justin Hembree, Executive Director with the Mid-Carolina Council of Governments presented the proposed amendments to the Cape Fear Regional Hazard Mitigation Plan, whichi includes Harnett County and the cities of Dunn, Lillington, Coats, Angier, and Erwin. These amendments provide wording to recognize the need for flood proofing generators for water and sewer as well as flood proofing other aspects of the systems. Itis important for this tol be in the Hazard Mitigation Plan for funding and infrastructure security. He: also thanked the Council and staff for their continued support of the Mid-Carolina Council of Government throughout the Motion by Council Member Turnage and second by Council Member Bradham to approve the Resolution adopting the amendments to the Hazard Mitigation Plan. Motion unanimously approved. A copy of the  incorporated into these minutes as Attachment: #2. Budget Retreat Location Beaufort Hotel, Beaufort NC  unanimously approved.  ITEMSI FOR DISCUSSION. AND/OR DECISION  CECOLLC  (02022-12)i is incorporated into these minutes as Attachment: #3.  Hazard Mitigation Plan Amendments  years.  Resolution (R2022-51)isi incorporated into these minutes as Attachment #4.    267  Comprehensivel Pedestrian Plan Update 2022  Planning Director Adler presented the City of Dunn Comprehensive Pedestrian Plan Update for 2022, which was funded through a state DOT grant with af five percent City match. The state selected Stantec as the consultant tol lead the process and write the plan. Thej public engagement process helped determine priority recommendations, along with safety, connectivity, constructability, and accessibility. The Planning Board voted unanimously tor recommend adoption oft thel Plan update. Council Member Sills recommended: a special After discussion, motion! by Council Member Turnage and second by Council Member Sills toa adopt the City of Dunn Comprehensive Pedestrian! Plan Update, 2022 as presented. Motion unanimously approved. Ac copy of Planning Director Adler presented thel Future Land Use Plan and reviewed the differences from the draft plan adopted on) June 14, 2022. This Plan and Mapi replaced ini its entirety the 20301 Land Use Plan that had been completed in 2005. The adoption of the draft inj June was due to NC General Statute 160D requiring that all local governments withz zoningo ordinances have an updated Land Use Plan by) July 1,2022. The finall Land Use Plan and Future Land Use Mapi incorporates minor technical revisions in the narrative portion oft the plan. The policies, character areas, and map did not change. The Planning Board reviewed the final Land Use Plan Motion by Council Member Gaulden and second by Council Member McLean to adopt the Land Use Plan and Futurel Land Use Map as presented. Motion unanimously approved.A copy oft the Land Use Plan and Future Joint Resolution with Harnett County Board of Commissioners to Sell Real Property located at E City Manager Neuschafer presented a Joint Resolution with the Harnett County Board of Commissioners: to allow for thes sale ofr real property located on EI Edgerton tol Robert Lee Crowell, Jrv with at total upset! bid price of$43,253.41, whichi includes advertising for notice ofs sale of$4,353.41. Resolution wasi initially passed att the December 14, 2021 Council Meeting to authorize sell to Dunkin Deals LLC after the property is sold with "Notice to sell Real Property with Invitation for Upset Bids." The property has been advertised and the bid upset for nineteen times with the upset bid made by Mr. Crowell. Thei initial offer was for $7,500. Proceeds Motion by Council Member Gaulden and second by Council Member Tart to adopt the Joint Resolution to authorize the Sale oft the property to Robert Lee Crowell, Jr.a as presented. Motion unanimously: approved. A City Manager Neuschafer requested Council consider closing all of the following alleys with the exception of  meeting of council to determinel best way toi implement plan.  the Comprehensive. Pedestrian Plan with 2022 Updates are filedi with the City Clerk.  Land Usel Plan and Future Land Usel Plan Map  and Future Land Use Map and voted unanimously tor recommend: adoption.  Land Use Plan Map aref filed with the City Clerk.  Edgerton! St  from selling the property willl be divided equally between the County and the City. copy ofthel Resolution (R2022-52) isi incorporatedi into these minutes as Attachment: #5.  Resolution: and Orders for Closing Multiple. Alleys #4 duet toag gas line beingi int the alley.  QuadrantI 1. 2. 3. 4. 5. 6. 7. 8. QuadrantII 9.  between! NI Fayetteville. Ave andl NI King Avea and W Cole Sta and W Granville! St between) NI Layton Avea and NN McKay Avea and' W Cole Sta and W Granville St between) NI Layton Ave and NN McKay Avea and W Cole Sta and W Granville St between) N King Avea and N Layton Ave and W Cleveland Sta and W Vance St between) NI McKay Avea and NI Layton Avea and W Cleveland Sta and W Vance St between) N Ellis Ave: and NI McKay Ave: and W Vance Sta and W Cleveland St between) NI McKay Ave andl NE Ellis Ave and W Carr Sta and WJ Johnson St between) N Orange Ave and NI Ellis Avea and W Cleveland Sta and W Carr St between) N Elm Ave andI NI Magnolia Ave: and EV Vance Sta and E Cleveland St 10. between) NE Elm Ave andI N Washington. Ave: and E Vance St and] EH Harnett St  Staff has had the utilities located ate each proposed street closing and the alley between N Kinga and NI Layton; and W Cleveland and WI Vance did have natural gas lines. Staff would) like additional time tos studyl how tob best proceed with closing this alley #4. The Public Hearing was held at thel November 15, 2022 Council Meeting. Council Member Sills questioned if the curb cuts would be removed and Neuschafer stated that the staff Motion by Council Member Turnage and second by Council Member McLean to adopt a Resolution of Order for each alley tol be closed as presented above with the exception of #4. Motion unanimously approved. A  wouldl look ate eachi individual situation to determine.  copy ofthe! Resolutions arei incorporated into these minutes as follows:  R2022-53 (Attachment: #6) R2022-54 (Attachment #7) R2022-55 (Attachment #8) R2022-56 (Attachment #9) R2022-57 (Attachment #10) R2022-58 (Attachment #11) R2022-59 (Attachment #12) R2022-60 (Attachment #13)    268  Offera and Acceptance of SRF Loan for the Black River WWTPI Improvements  City Manager Neuschafer shared that in November 2021, Council authorized Staff to move forward with the Wooten Company's proposal to prepare an updated 20-year Capital Improvement Plan and a System Development Fee Study. System Development Fees (old term was impact fees) are one-time charges assessed tor new water and/or sewer customers for their use ofs system capacity and serve as an equitable method by which tor recover up-front system capacity costs from those using system capacity. NC General Statute 162A Article 8 provides for the uniform authority to implement system development fees for public water and sewer systems in NC and was passed by the NC General Assembly in July 2017. Local Governments had to comply with the law prior to July 2018. In June 2018, the City of Dunn stopped charging impact fees and decided not to complete the study at that time. In the last year, the City has seen a tremendous interest in residential and commercial development. In order tol keep up with the growth, the water and sewer system will continue to require a significant amount of capital investments which these fees will be used to offset David Malinauskas, PE and James Pflaum, EI with The Wooten Company presented the elements for the development oft the Capital Improvement Plan, which was emailed to Council for review. The plan prioritizes  those costs.  thet top! 5 projects for water and sewer as follows: WaterSystem 1. Champion PSI Replacement 3. Area 8 and 201 Rehab 4. Area 9Rehab 5. Area 11 Rehab  WastewaterSystem 1.WTP Upgrade (repl. 16" to 18") 3. 12" Water Main on! NC55 4. Reconnect Water Main onl N. Orange 5. Replace 16" AC Water Main  2. Loves Truck Stopl PSI Force Main Replacement 2. Transmission Main Improvements  There werei no questions concerning the Capital Improvement Plan.  Gary Hartong, PE and Genevieve Versteeg, PE with The Wooten Company presented the results of the System Development Fee (SDF) Study. SDF's must recover costs for providing the same level of service to new customers and must be directly connected to the improvements and cover a5 to 10-year analysis period, and then a study must be done for review and adjustments. They presented to Council the various steps of the 1. Dunn may consider implementing SDFS using Combined Cost Methodology to collect fees for necessary Water and Sewer SDFS have been calculated to reflect 5-year forthcoming capital improvements costs. Using 0.50% annual growth, maximum allowable water SDFS will generate approximately $2.4 million 4. Using 0.50% annual growth, maximum allowable sewer SDFs will generate approximately $5.0 million The next step will be tol hold a 45-day Public Comment Period and Public Hearing prior to adoption by the Council. The CIP needs to be adopted prior to the SDF or with the SDF. Hartong shared most local governments charge $500 to $2000 for Residential Water hookup and the maximum calculated for Dunni is $990. Harnett County charges $2000, Johnston $1800 and Fayetteville PWC charges $634. For Wastewater the range isi from $500 to $3000, with Dunn's maximum calculated. at $2117. Harnett charges $2500, Johnston $3800 and Fayetteville PWC $1107. Public Director Adams shared additional fee charges from local communities with Council. Hartong confirmed that the plan isa 5-year plan and willl have to be updated after 5y years to maintain the fee. After discussion, Council Member Sills recommended adopting the CIP and hold Motion by Council Member Sills and second by Council Member Turnage to adopt the resolution approving the City of Dunn 2023-2043 Water and Wastewater Capital Improvement Plan as presented Motion unanimously approved. A copy of the Resolution (R2022-61) is incorporated into these minutes as City Manager Neuschafer told Council that the process oft thej project design build contract with TA Loving for the WWTP Improvement Project has started. Thej project was initially estimated at $4 million but since that time the updated estimatel has increased significantly, which willl be: addressed by Mike Slusher of DMP. Mike Slusher reviewed the project timeline with the design process now at sixty percent. He reminded Council that the project doesn't expand treatment capacity, it only improves the ability to handle the capacity at peak flows, which will help handle overflows and get the city out from under the SOC. At 30% completion ofd design, the project's cost estimate was increased to $11.5 to$ $12.5 million. TAI Lovingi is doing another cost estimate at this time and when it is complete, we will have the maximum price of the project. He then reviewed the project as contracted. In explaining the increase in estimates, Slusher talked about future expansion considerations, geotechnical conditions, infrastructure marketplace, along with material cost and Mayor Elmore and several council members expressed frustration over the huge increase of the estimate for this project and they felt the explanation was incomplete. Mayor Elmore added that he understands several items were left out of the initial estimate. He reminded Slusher that there has been a long standing relationship with DMP and he feels this will hurt the confidence of the council in DMP for future projects. Council Member Sills added that they missed the boat by 300%. Mayor Pro Tem Bradham requested that DMPI look atl lowering some oft their fees on this project while Council Member Tart recommended checking to  study prior to completion. Conclusions oft the study are: rehabilitation plus expansion/extension.  over 5y years. over 51 years.  thel Fee decision until January.  Attachment #14).  Update onl Black River WWTP Improvements Project  supply availability.  seei iftheiri insurance covers such ani incident.    269  Slusher said that DMP does value the relationship with the city and will do' "whatever we can to regain your trust". He further acknowledged that there were some items left out and errors made and DMP is very sorry for this mistake. He shared that DMP is looking at ways to cut the cost of the project with changes that will Neuschafer reminded Council that this is a required project for the SOC and staff does have a plan for financing this extra expense by shifting funds from the $30million grant to supplement this project and to Offer and Acceptance ofSRF Loan for the Black River WWTP Improvements Public Utilities Director Adams presented loan offer from Division of Water Infrastructure for a State Revolving Fund (SRF) loan to make improvements at the Black River WWTP in the amount of $3,626,000. Debt servicei is expected tol begin 2024-2025. This isa3 30-year loan at0.13% interest rate. After discussion, motion by Council Member Sills and second by Council Member Turnage to adopt the resolution making the applicable assurances contained therein and accepting the State Revolving Fund loan offer of$ $3,626,000, fori improvements att the Black River WWTP. Motion unanimously approved. A copy of thel Resolution (R2022-62) is incorporated into these minutes as Attachment #15). City Manager Neuschafer presented The BRIC (Building Resilient Infrastructure and Communities) grant program from FEMA for consideration. Budgeting for the City's matching funds will be required for the FY 24/25. This program requires an environmental review after award, which will take at least 9-12 months to The funds requested are outlined in the attached letters which will need to be approved as the final attachment to the grant application, for the January 6 deadline. Ifboth grants are approved, the total funds Motion by Council Member Turnage and second by Council Member McLean to authorize the City Manager to apply for BRIC Grants for the Raw Water Project and the Hwy 301 Sewer Project as presented. Motion unanimously approved. (A copy of the Local Match Fund Commitment Letters are incorporated into these He also reported on a major failure ont the Juniper Creek sewer outfall line November 21. An emergency point repair on a segment of line was completed but there are still four parts of this project to be complete. He reviewed the various steps and cost of each part of the project, with all four parts of the project to total Motion by Council Member Sills and second by Council Member Gaulden to approve the City's Finance Director and City Manager solicit loans to cover the cost of the emergency sewer line repairs in the amount of Finance Director McNallan provided the following financial report for the period ending November 30, 2022: Water and Sewer Revenues for the month were $579,014 with total collected year to-date at $2,917,667 Utilities Sales Taxes are reported quarterly. For this quarter, taxes received is $154,285, compared to Building Permit Fees for the month were $14,585, with total collected of $46,449 or 31% of budget, General Fund expenditures for month are $782,568, with total expensed to-date at $5,578,152 or Water and Sewer fund expenditures for the month are $403,038, with total expensed to-date at Stormwater fund expenditures for the month were $816, with total expenses to-date of$142,340, or Reports were also received as follows: Planning and Inspections Report, Public Works Report, Public Utilities Mayor Elmore announced upcoming events and activities. He also recognized Wesley] Johnson, President and Heather Lawson, Executive Vice President of the Dunn Area Chamber of Commerce and thanked them for Motion by Council Member Gaulden and second by Council Member Tart to enter Closed Session to instruct the staff concerning the negotiation of the price and terms ofa contract concerning the acquisition of real property ina accordance with [N.C.G.S. 143-318.11(a)(5). Motion unanimously approved.  noti impact the performance oft the project. locate additional funding for thel last project.  Administrative Reports  complete. Both projects have initially scoredi really well. required willl be $4.8M with the federal share at$12M.  minutes as Attachment #16)  $375,000. Staff feels al bank loan ist the most optimal method toj pay for this project.  $375,000. Motion unanimously approved.  The City has $8,869,510 cash, compared to $8,411,275 last year. or 43.59% oft budget, compared to $2,689,457: in 2021. Property" Taxes are $908,533, compared to $804,063 last year. Sales' Taxi receipts were $1,334,935 or 47.7%.  $152,051 in: 2021. compared $79,827 last year.  41.936% of Budget, compared to$4,539,482 in 2021. $3,012,695, or 38.14% of budget, compared to $2,207,357: last year. 4.91% ofb budget. Revenues to-date are$41,025. Thel benchmark for this period is 41.67% ofb budget. McNallan also provided updates on debt service and] liens and assessments. Report, Parks and Recreation Reporta and Police Report.  Ammouncememt/lmiomaston their attendance.    270  Ther meeting was recessed ats 9:03 p.m.  The meeting was reconvened and with nof further business to discuss, motion by Council Member Bradham and second by Council Member Tart to adjourn the meeting at 9:28 p.m. Motion unanimously approved.  Iy :  SEAL  L  wh William P. Elmore] Jr. Mayor  Attest:  Danvnyy Ntane Tammy Williams, EMC,NCCMC  City Clérk