Fletcher Town Council Budget Workshop Meeting Minutes May 4, 2019  Call the meeting to order at: 09:04 Those who were in attendance are as follows:  Mayor Rod' Whiteside Mayor Pro-Tem Eddie Henderson Councilman Bob Davy Councilwoman Sheila Franklin Councilman Hugh Clark Town Manager Mark Biberdorf Assistant Town Manager Heather Taylor Town Clerk Christine Thompson  The purpose of this meeting is to make some final decisions on the upcoming 19/20 Town Manager Mark Biberdorf gave on overview of the documents provided to  FY Budget.  council that we will be discussed during this meeting. Overview of Proposed FY 2019-2020 Budget  The Town Manager then went over the Neutral Property tax increase documents. Balanced budget presented totaling $7,571,065 in revenues and expenses. This is a $670,045.00 increase from the FY 2018-2019 budget. The proposed tax rate for Fletcher would remain at 34 cents under the  (see Exhibit A attached)  recommended budget.  The revenues neutral tax rate would be 31.4 cents.  22.5 cents of the 34 cent tax rate supports services directly provided by the town. The remaining 11.5 cents of the tax rate supports services directly provided by the One additional full time positionrecommended in the Police Department  town.    2.8% COLA this year due to Social Security cost ofl living measure going up. Implementation of pay adjustments from the compensation & classification study.  Designation of funds for library project. property for Town Center project.  Capital funding for Parks & Recreation Maintenance Building or acquisition of  Recycling carts distributed to next area of' Town. Phase II storm water compliance issues.  Sill growing but at a slightly slower pace (projected GDP growth of 2.3%-2.8%)  Inflation occurring in the 2.5%-2.8% range.  Interest rates should rise, with 10-year bonds at 3.10% and mortgages at 4.8%. NC's economic outlook points toward slow, steady growth in the coming year. Gross State Product (GSP) for NC is projected to grow 3.3% in 2019.  Jobs growth in NC has been better than the national average as well unemployment  levels.  Local Economic Factors  Residential growth still occurring (Sycamore Cottages-151 unit development under construction; and Groves at' Town Center under construction 168 units; Rutledge Commercla/mdustna growth continues to be strong-Smartrac expansion 300,000 s.fbuilding permitted for manufacturing and Hunter. Automotive on Hwy 280. Retail Sales continue on positive trend for the state and locally.  Heirs property under consideration for a3 311 unit development.  Revenue Outlook  Ad Valorem values projected to increase from $1,174,129,00 to $1,315,556,000. Largest portion of increase in. Ad' Valorem due to revaluation (22.25% growth) Sales Tax growth is expected to be strong this year going from $1,566,000 to  $1,680,00.    Slight increase in Utilities Sales Tax from $679,000 to $718,000. 13% increase (additional $483,150) in real and personal property taxes. Small increase (additional $851) in Motor Vehicle property taxes 60% increase (additional $15,000) in Interest in Investments. 200% increase (additional $800) in Powell Bill Interest. 6% increase (additional $ 39,000) in Utilities sales tax. 9% increase (additional $2,850) in Beer & Wine Tax. 7% increase (additional $114,000) in Sales Tax: revenues. 5% increase (additional $5,000) in Recreational Activities 33% increase (additional $2,000) in Land use permits. 13% increase (additional $22,000) in. ABC Distribution. 17% decrease (drop of $300) in Tax. Advertising. 7% decrease (drop of $600) in Business Registration Fee. 100% decrease (drop of$19,967) in Grant Funding. 9% decrease (drop of $1,000) in Concession Stand.  Budget Requests  Budget requests initially came in $770,000 above prior year revenues. Requests included one additional full-time position 1- Police Department Detective  Lieutenant.  Office Space reconfiguration for Police Department. Recycling cart distribution and service to next phased route. Equipment replacement within in Parks & Recreation. Equipment upgrade within Public Works.  Contracting for Phase II storm water compliance measures.    Expense requests funding within current tax rate of .34 cents.  Reductions or additions in some line item requests were made at the Manager's  recommendation.  Cost Saving Measures Realized  6% decrease in premiums for our health insurance plan with Blue Cross/Blue Shield. Broker quotes medical and dental coverage against comparable insurance plans No increase in tonnage for municipal solid waste due to implementation of 95 gallon Costs for closing of wells for Brownfields testing completed in current fiscal year.  each year.  recycling cart program.  Reductions in utilities and department supplies at' Town Hall.  Decrease in incentives paid out for economic development (over $33,000 decrease  inj projected payments). Governing Body  Small increase in overall funding for this department going from $50,111 to $52,183. Slight increase in salaries line item for 2.8% COLA from $35,927 to $36,932.  Travel &' Training increased slightly from $5,000 to $6,800. Department Supplies decreased from $2,260 to $1,500. Small decrease in Dues & Subscriptions from $290 to $240.  Administration  Moderate increase in total departmental appropriations from $512,839 to $542,702.  Largest increase is in Salaries from $368,445 to $ 384,534. Increase in' Travel &' Training from $2,500 to $3,500.  Moderate increases for fringe benefit line items due to merit & COLA adjustments  Small Increase in Motor Vehicle Expense from $ 10,500 to $10,700.    Professional Services  A moderate increase in department budget from $294,187 to $332,841. Library Designation of $50,000 for construction or development costs for new Professional Services line increased from $30,500 to $ 49,500 for broadband grant Economic Development line decreased from $169,108 to $ 135,827 due tol less Increase in Fletcher Town Center from $20,000 to $56,000 for marketing study and  facility.  match and surveying on optioned properties.  incentives. options.  Increase in. Apple Country Transit match from $2,897 to $8,514.  Discussion Followed:  Council decided to give $5,000 to Apple Country' Transit in this budget year.  Break at: 10:43 am Back from Break at: 10:54 am  Planning Department  Significant increase in total departmental appropriation going from $116,907 to Biggest increase is in Contract Services line for consultant assistance with Phase II Slight adjustments to salary and fringe benefit line due to merit and pay and COLA.  $156,601.  Storm Water compliance issues (increase from $1,000 to $31,000)  Small increase in Dept. Supplies line item from $1,300 to $ 1,500. Small increase in Dues & Subscriptions line from $ 1,500 to $1,600.  Town Facilities  A slight increase in total departmental appropriations from $126,219 to $ 131,238.    Utilities line decreased from $60,000 to $ 58,000 due to better estimate on utility Travel &' Training line increased from $4,000 to $ 5,000 for Manager Travel and  costs for Town Hall. training expenses.  Dues & Subscriptions line increased from $15,500 to $17,000. Increase in Contract Services line from $13,000 to $18,000.  Police Department  Amoderate increase in the overall budget going from $ 1,390,639 to $1,499,776. Includes recommendation for Lieutenant Detective position to better supervise and Position will also help in times of decreased manpower due to training vacation, sick  assist with criminal investigations.  time etc.  Request for office space reconfiguration moved to CIP budget.  Largest portion of increase is in the Salaries line item going from $810,826 to  $896,700.  Second largest portion of increase ifi in the fringe benefit line items for COLAI merit,  and the new position.  Holiday Pay line item increased from $ 23,000 to $2 26,238.  Decrease in Overtime line from $15,000 to $ 14,000 due to less projected need with  additional staffing.  Increase in Department Supplies from $22,000 to $29,000 due to one-time expenses Decrease in Uniforms line from $30,029 to $15,500 (ballistic vests purchased last Decrease in M & R Equipment from $12,000 to $10,000 due to decreased usage and  for equipment (MDT and weapons) for new position.  year)  newer equipment.    ITI Department  One Who Serves continues to provide high quality support at a cost effective price. Slight increase in overall departmental expense from $191,410 to $215,880. Increase in Contract line from $57,200 to $73,400 to cover rate increase and labor for Decrease in' Telephone line from $ 45,780 to $ 43,450 due to renegotiated contract Increase in Dues line from $16,500 to $ 25,420 for network monitoring service. Increase in Subscriptions IT line from $43,480 to $ 47,260 for software maintenance Capital Expense line includes funding for PC Replacement Project ($16,500), Desktop PCs ($3,650), Check Scanner and Thermal Printer (1,200) and Misc. Parts &  Pcr replacement project.  with Verizon.  costs associated with RecDesk program.  Equipment ($5,000.  Contracted Services - Fire & Rescue  Fletcher Fire & Rescue (FF&R) will receive what the tax levy produces on 11.5 cents  of the Town's 34 cent tax rate this year.  Total appropriations for FF&R will increase from $ 1,234,419 to $ 1,417,425. This includes $ 24,000 that is budgeted for prior year adjustment.  Mills River Fire & Rescue's portion of the tax rate will remain at 9 cents this year. Total appropriations for Mills River will decrease slightly from $ 125,236 to  $105,868.  This appropriation may change slightly as we receive final property value estimates  from the County.    Council discussed and decided not to fund the improvements for the audio system(s) in the building (IT budget) and to use the $40,000 allotted for this towards recycling  carts sO that every home in the town can have a recycling cart.  Break for lunch at: 12:00 pm Back from lunch at: 1:03 pm Public Works  Significant increase in total appropriations from $ 1,059,780 to $ 1,131,058  Implementation of next phase or area to receive 95 gallonrecycling carts (800 carts) Purchase of additional garbage carts due to growth and replacement needs Increase in street lighting expense due to pedestrian lights added for Hwy 25  (200 carts) project.  Purchase of oil pump transfer system.  Salaries line sees moderate increase for merit and COLA adjustments from $325,804  to $366,872.  Fringe benefit line items increased for merit and COLA adjustments.  Increase in Utilities from $ 77,5501 to $ 115,589 for additional street lightening on Hwy Increase in' Travel & Training from $ 2,500 to $3,500 for licenses and certifications Increase in M&1 R Vehicles from $ 28,000 to $ 34,000 due to aging garbage trucks.  25.  Supplies line increased from $8,000 to $ 64,000 for recycling carts and  Department garbage carts.  Landfill Charges staying level at $105,000 due to increase in recycling activity. Increase in Uniforms line from $10,066 to $11,266 to cover increase in cleaning costs.    Decrease in Disposal Fees from $20,000 to $ 10,000 due to better estimate on costs. Decrease in' Tools & Equipment line from $ 22,000 to $ 15,000 due to four post vehicle lift being purchased last year and this being removed from the base budget.  Level funding in Powell Bill revenues keeps this at $195,000. $195,000 budgeted on the revenue and expense side. This is primarily used for re-surfacing of streets.  Parks & Recreation  Moderate increase in overall departmental appropriation from $ 618,233 to  $683,635.  Tractor replacement for mowing and other maintenance projects. Request for new Jeep replaced with transfer of Ford Explorer from Police  Department to Parks & Rec.  Increase in funding for Christmas in the Park event.  Overtime increased from $3,500 to $ 4,000 to help with staff coverage for events. Increase in' Travel & Training from$ 5,000 to $ 6,000 to allow Program Supervisor to  attend NRPA Director's School.  Holiday Decorations increased from $2,000 to $ 4,000 for additional lights.  Materials increased from $24,000 to $ 32,000 for Christmas in the Park  Program  event (ice skating rink included in activities) Concessions decreased from $10,000 to$9,000  Capital Outlay increased from $40,000 to $6 60,000 for tractor for maintenance  activities.  Contract Services increased from $21,000 to $23,000 to for additional maintenance  activity at the parks.    M&RI Equipment Line decreased from $10,000 to $8,000.CIP Park Maintenance line increased from $ 35,0001 to $4 41,674.  CIP-Budget within CIP  Recommended capital budget includes $.085 of the tax levy to fund eligible projects.  $0.85 generates $ 1,107,040 in revenue for FY 2019-2020.  $.065 would be dedicated for projects supported by debt service and the remaining The amount ofl levy available for debt service supported projects will be $ 846,560. Amount oflevy available for new projects without debt will be $ 260,480.  $0.02 would be for non-debt service projects, or pay as youg go.  CIP-Debt Service  Two projects funded under debt service- 1) Town Hall Improvements project; 2)  Parks & Rec. Maintenance Building.  Debt service requirements for the Town Hall Project will be $ 571,377.  Projected debt service requirements for the Parks & Rec. Maintenance Building is  $100,000.  Surplus debt service available is $ 175,183.  Recommend payment to outstanding debt principal of $ 175,183 with remaining  funds.  CIP-Non-Debt Service or Pay as you go Projects Police vehicles - 3 Patrol Cars $ 119,500 Playground Equipment BMCP $ 100,000 Police Office Space Expansion $ 40,980    These three projects utilize all of the available for non-debt service or pay as you go Town Manager Mark Biberdorfcommented that is the overall suggested budget Mayor Pro-Tem Eddie Henderson made a motion to adjourn and it was seconded  projects.  for the coming year.  by Councilman Hugh Clark. Adjourned at: 2:15 pm  Approved:  (o-1D-19 Date  Rod Whiteside  Mayor    65565    Town of Fletcher Agenda Review Meeting Minutes May 6, 2019  Call the meeting to order at: 06:00 pm Those who were in attendance are as follows:  Mayor Rod Whiteside Mayor Pro-Tem Eddie Henderson Councilwoman Sheila Franklin Councilman Bob Davy Councilman Hugh Clark Town Manager Mark Biberdorf Planning & Zoning Director Eric Rufa  Invocation: Pledge of Allegiance: ***Public Comment*** None at this time.  Approval of minutes-corrections, additions or deletions.  (4/1,4/8&4/24) Council Updates None at this time. Consent Agenda Tax: refunds/releases Cane Creek Road.  Set public Hearing for June 10, 2019 to consider CD# 2019-02 and SUP# 2019-01, and application for a new 311 unit Planned Residential Development proposed for 150 Approval of Resolution R-19-04 to sell surplus property at govdeals.com Approval of Budget Amendment #8 to the 18/19 Budget Ordinance.  Planning & Zoning Director Eric Rufa gave an overview of the public hearing in  June on the residential development near Town Hall.    Discussion Followed:  Town Manager Mark Biberdorf stated that he will be adding Approval of the Pay  Classification study to the Consent Agenda next week.  Presentation by WNC Superheroes-Tyler Brisbon, Founder.  Town Manager Mark Biberdorf stated that he was contacted by' Tyler Brisbon to make aj presentation to town council. He also said that he explained to Mr. Brisbon  that council/town does not usually fund non-profit requests.  Update on Fletcher Town Center Project- Mark Biberdorf, Town Manager. Town Manager Mark Biberdorf stated that II know that Itold you about Robert Threatt of' Threatt Development Group. This is someone who has been checking out our project and Ihave been providing documents to him. He had a potential investment partner but he was not willing to divulge his financials or who this group was. They were also wanting compensation and were not able to come to an  agreement on compensation so that kind of fell apart.  Ralph Spano of Spano &. Associates is still considering residential development on a portion of our property. Scott Burwell of McGill & Associates is the one who brought Spano & Associates to us and they are active in development in this area. Scott  Burwell is going to follow up with him.  Ialso mentioned to you Pulliam Properties and James Wilson just contacted me this past Friday. He was interested in an actual dollar amount and where we are at with the options. Iwill try and follow up with him tomorrow and the type of development Ihave not been able to get in touch with Rob SettleIwas hoping that he could be here Monday night to give you an update. Eric and Ia are trying to set up a meeting this week we have a firm that is interested in retail property on Hwy 25 across from Mission. This group is interested in town center project and are. licensed here and in  they are interested in putting in.  Florida and want to meet with us.    Comments from the Town Manager Mark Biberdorf.  The pill drop shred event on. April 13 was a real success once the shred machine started working and they filled the truck with 6,000 pounds of paper. LGFCU sponsored the event and paid 100% of the cost to secure it. On the Pill drop they had a little less volume than last year. They collected 28.4 Ibs. of medications and is  the equivalent to about 21,800 pills.  The Litter sweep event went well and thanked council for coming out for that. The Budget meeting went well andIwill get one more set of revenues from the county and will update the budget on the expense side from what council recommended. Not much fluctuation is expected in these figures from the county. The Budget message will be available for: review by the public on June 1 and on June The Hwy 25 corridor project is continuing to go along fairly smoothly. There has been issues with the ramp/curb cuts in there. The. ADA guidelines are being questioned by DOT however this whole plan was submitted for approval to DOT in the beginning. Right now the first week in June is technically when the project will On the clock tower roof, we ordered a color trying to match the roof on the town hall building. It came in a lighter tan color and we had a conference call with the contractor and the sub. We are trying to work through this they are offering to repaint it and we are trying to get them to extend the warranty on the roof due to painting it to match to what it is supposed to be. We did not realize that it was painted. Ithink when it is all said and it is going tol lookreally nice.  10 we will have the public hearing to adopt the budget.  be finished.  Discussion Followed:  Mayor Whiteside asked for a motion to adjourn and it was sO moved by Mayor Pro-  Tem Eddie Henderson and seconded by Councilman Bob Davy.  Motion carries all in favor. Adjourned: 06:44 pm    Approved: 66-10-19 Date  Mayor Rod Whiteside    Town of Fletcher Council Meeting Minutes May 13,2019  Call the meeting to order at: 07:00 pm Those who were in attendance are as follows:  Mayor Rod Whiteside Mayor Pro-Tem Eddie Henderson Councilman Hugh Clark Councilman Bob Davy Town Manager Mark Biberdorf Assistant Town Manager Heather Taylor Public Works Director Jabbo Pressley Police Chief Erik Summey Parks & Recreation Director Greg Walker Planning & Zoning Director Eric Rufa  Councilwoman Sheila Franklin was not here at this time.  Invocation: Mayor Pro-Tem Eddie Henderson Pledge of Allegiance: Mayor Rod Whiteside  Public Works Director Jabbo Pressley introduced the new Public Works employee Police Chief Erik Summey introduced Capitan Bryant from the Sheriff's office as Captain Bryan introduced himself to town council. He stated that the Sheriff's office is here to do whatever is needed and will be supportive of the Town and Fletcher  Danny Pena to town council. the District Captain for this area.  Police Department. ***Public Comment*** None at this time. (4/1,4/884/24)  Approval of minutes-corrections, additions or deletions.    Mayor Whiteside were there any corrections, additions or deletions to the minutes Councilman Hugh Clark made a motion to approve the minutes as written and it was seconded by Councilman Bob Davy and Mayor Pro-Tem Eddie Henderson.  as presented?  Motion carries all in favor. Council Updates None at this time. Consent Agenda Tax refunds/releases Cane Creek Road.  Set Public Hearing for June 10, 2019 to consider CD# 2019-02 and SUP# 2019-01, an application for a new 311 unit Planned Residential Development proposed for 150 Approval of Resolution R-19-04 to sell surplus property at govdeals.com. Approval ofl Budget Amendment #8 to the 18/19 FY Budget Ordinance. Approval of Pay Classification Study recommendations.  Mayor Whiteside asked for a motion to accept the Consent Agenda as presented? and it was so moved by Mayor Pro-Tem Eddie Henderson and seconded by  Councilman Bob Davy. Motion carries all in favor.  Councilwoman Sheila Franklin came in at 7:12 pm. Presentation by WNC Superheroes-Tyler Brisbon.  Tyler Brisbon gave an overview ofthe organization and how they help people in the  area.  He then answered questions that council had for him on the organization.  Discussion Followed:  Update on Fletcher Town Center Project-Mark Biberdorf, Town Manager. Town Manager Mark Biberdorf introduced Rob Settle to give an update on the  projects that he has been working on.    Rob Settle of Commercial Carolina gave a brief update on some things he has We have 2.59 acres of land in front of town hall under option with two more parcels that we still need to get under option in which we will a total of 4.92 acres under option. We have looked at a couple different ideas and at one time we had a grocery anchor until they did their own internal study and felt that this would take away sales from one of their other current locations. We know from a market analysis that we. have done that there is a shortage of grocery options sO we have reached out to alot of those. We don'treally have an acceptable grocery anchor at this time. We have also done on another analysis on what is other items that are  been working on for the Town Center project.  needed as well. (Restaurants, medical and retail)  Discussion Followed:  Comments from the Town Manager Mark Biberdorf.  Last weekImentioned to you about the pill drop and shred event that was a great success on April 13. We had 6000 pounds of material that was shredded and 28.4 We are nearing the end of the budget process andIa am working on the final modifications based on some of the changes that council has suggested. We have updated that within the budget and we will get a final set of values and plug that into it with the final revenues. Iwill balance that and let you know what that comes out to. Iam working on the Budget message which gives a narratiye/overview, of what is in the budget. This has to be available for June 1 and we will advertise for public comment and review and then June 10th for our public hearing.  Ibs. of medications that were collected.  On the Hwy 25 corridor project update it is going along. We have had some issues/challenges with the curve cuts and ramps that is within the ADA cessiby/gldeine. The guidelines for 2006 are in the plans versus the 2012 ADA guidelines. We have has some damage to traffic loops as well. Eric andIwill be meeting with DOT and our engineering firm next week to see how this will be  covered if things have to be torn out and replaced.    Ihave talked to you about the roof on the clock tower being the wrong color. We -have been looking at alternatives to get this fixed. What we are probably going to do now is they are going to paint it to the correct color with a 7 year warranty instead of a 3 year warranty. Imentioned the chime system to go in the clock tower in which Mr. Youngblood will pay for this in memory of his mother and father. We are still  looking for a June completion if possible on this project.  Discussion Followed:  On the street resurfacing projects, Robert Street and Dogwood Terrace are resurfaced and they are about to start work on the retaining wall in Stafford Hills. This was bid out with the park project (different funding sources) for resurtacing the inner trails in which they have completed along with the drainage improvements. The Cane Creek Sewer Authority has had an. Advisory Board for years and they need al Fletcher Representative for the board. Bob D'Diego who served on this board no longer lives in the town. Ifc council knows anyone that would like to serve on that On the flood repairs at Bill Moore Community Park, we have got someone in to fix the fences and they should finish this week. The laser grading on the infields has been started and they are supposed to have that completed by the end of this week. Mayor Whiteside asked for a motion to adjourn and it was sO moved by Mayor Pro- Tem Eddie Henderson and it was seconded by Councilman Bob Davy.  board please let me know.  Adjourned: 07:56 pm Approved: 6-10-19 Date  Mayor Rod' Whiteside    Town of Fletcher Special Call Meeting Minutes May 20, 2019  Note: Town Clerk was on vacation during the time of this meeting.  Call the meeting to order at: 06:05 pm Those who were in attendance are as follows:  Mayor Rod Whiteside Councilman Bob Davy Councilman Hugh Clark Councilwoman Sheila Franklin Town Manager Mark Biberdorf  Mayor Pro-Tem Eddie Henderson did not attend this meeting.  The purpose of this meeting was to discuss a proposal for a Market Analysis & Economic Development Strategic plan from Rose & Associates Southeast, Inc. (see Kathleen Rose President of Rose & Associates gave an overview of what they can  Exhibit. A attached)  offer to The Town of Fletcher on Economic Development.  Discussion Followed: the expense.  Mayor Whiteside stated that for the record that he is not convinced of the benefit for Councilwoman Sheila Franklin asked the Town Manager was he looking for a Town Manager Mark Biberdorf stated that no this would be included in the FY 19/20 budgetrequest that when the budget is approved this is included in the  motion on this tonight.  budget.  Discussion Followed:    Mayor Whiteside asked for a motion to adjourn and it was so moved by Councilman  Bob Davy and seconded by Councilwoman Sheila Franklin.  Adjourned: 07:08 pm  Approved: 6-10-19 Date  Mayor Rod Whiteside    (Exhibit. A)  ROSE ASSOCIATES  March 13, 2019  Mr. Mark Biberdorf Town of Fletcher 300 Old Cane Creek Rd. Fletcher, NC: 28732  Re: Market Analysis & Economic Development Strategic Plan, Fletcher, NC  Dear Mark:  On behalf of Rose & Associates Southeast, Inc., we are pleased to present you this proposal to engage our firm to conduct a Real Estate Market Analysis in conjunction with the preparation of an Economic Development Strategic Plan (EDSP). We will focus priorities ini the town center area, known as "the Heart of Fletcher" and will utilize any/all prior or existing land use studies The purpose of this proposal is to provide professional services to include: a review of the plans and work previously completed; a market analysis toi inform land uses; and the creation of an EDSP to provide guidance regarding site acquston/dispostion and specific initiatives as it relates to creative, experiential place-making and Economic Development. The attached scope of services details the tasks that we will undertake to complete this assignment and its acceptance and authorization shall serve as a CONSULTING SERVICES  and plans as the foundation for our work and to avoid duplicating efforts.  AGREEMENT.  Thank you for the opportunity to assist the Town of Fletcher and we look forward to a mutually beneficial relationship. Information regarding our services and qualifications can bei found on Should you have any comments or questions, please feel free to call me (704) 896-0094.  our website: ww,oseasocates.com  Sincerely, R Kathleen Rose, CCIM, CRE President  P.0.BC..910  Davidson, NC: 28036  ww.C sarsistes.com    Scope of Services  Proposal & Contract for Services Project Description: CONSULTANT: Rose & Associates Southeast, Inc. CLIENT: Town of Fletcher ("Town") PROPOSAL DATE: March 13, 2019 PHASE 1 - Real Estate Market. Analysis  PROJECT: Real Estate Market Analysis & Economic Development Strategic Plan (EDSP) STUDY AREA: Township of Fletcher with specific focus on the Fletcher Town Center  Task 1.1 Kickoff- Project/Site Orientation & Tour (visit #1)  We will conduct a comprehensive site visit to tour the area and identify current assets. We will meet (in person or via teleconference) with Client to finalize our understanding of the project objectives, review the project timeline, and identify the! best information sources appropriate  fori the assignment. This mayi include both town staff and elected officials.  Task 1.2 Research- - Data Collection & Document Review  CONSULTANT will review all prior plans and studies as provided by staff related to town planning, land use economic development and market analysis, including but not limited to, previous small area plans prepared for the town center, the comprehensive land use plan, as well as other relevant plans/studies. We will collect public and proprietary data related to  demographic, economic and real estate dynamics. Task 1.3 Interviews/Public Engagement (visit #2)  We will conduct small locus-group/ndividual interviews over a 1-day period with the staff, elected officials and other local/regional stakeholders asi identified by the Client during the  Kickoff (e.g. Chamber and/or Economic Development Organizations).  Task 1.4 Market & Economic Analysis  We will prepare a concise qualitative and quantitative real estate market analysis which will analyze demographic, economic, general market and real estate trends as well as the potential highest and best land uses for up to two (2) key strategic and targeted economic development areas (including the Town Center and the Industrial Park areas). We understand this project will require.analysis to support a feasible program for development, thus will include analysis of local population projections, lifestyle segments, employment, economic base and potential demand for office, industrial, retail and residential uses. We will also identify and define trade area(s) deemed critical for future development and recommend product positioning, type and  size/scope of development based on current market dynamics.  Task: 1.5 Client Debriefing (visit #3)  Upon completion of the tasks above, we will conduct a debriefing with the Client to present verbal findings of assets, competitive advantages and potential development programing for review and further refinement. Additionally, we will further determine the appropriate action  2    for proceeding with the final report to include implementation strategies, as well as determining goals for subsequent phases and/or any additional work as mutually agreed.  PHASE: 2 - Economic Development Strategic Plan (EDSP) Task 2.1 Economic Development Strategic Plan (EDSP)  Based on the findings of the Phase 1 Market Analysis, we will draft an economic development strategic plan and requisite supportable goals for the attraction of development, the retention/expansion of business, the integration of small business and entrepreneurship, and tourism to support land uses and future development. This will focus on recommended strategies to promote activities for the defined targeted areas. We will refine program goals based on present and future development potential across the entire township to produce feasible programs and achievable development strategies that are appropriate to the community's location, assets/resources and vision. The plan will also include recommendations for future policies and programs (e.g. incentives) for economic development.  Task 2.2 Comprehensive Performance Measures  Consultant will continue to conduct research for the implementation of the Plan, including but not limited to best practices and the establishment of baseline performance measures to  determine effectiveness of economic development initiatives.  Task 2.3 Final Report (visit #4)  Consultant will provide Final Report presentation and bound document toi include the Market Analysis, EDSP and Appendix to include data, updated demographic and economic information. Program Goals: Based on economic, real estate and demographic data collected and identification of properties through the site assessment, we will enumerate preliminary supportable goals for the strategic integration ofi industrial, office, retail and housing, and other uses within each defined economic node. This is an interactive process with staff, elected officials and local stakeholders. We refine program goals based on present and future development potential to produce achievable strategies for place-making and brand development that are appropriate to each location with a market analysis that will support the  goals of the economic development strategic plan. PHASE 3 - Investment & Public-! Private Partnership Task 3.1 Economic Development Partnership  Consultant will work with Client, its finance/legal consultants and local and regional agencies regarding Economic Development (public-private) Partnerships to further assist in implementation. This mayi include documents as may be needed in coordination of Grants, other funding or technical assistance from regional, state and federal agencies.  3    PHASE 4 "OPTIONAL ADDITIONAL WORK: On Call Transitional Technical and Economic Development, Assistance may further engage consultant with on-call work: such as:  Upon completion of Phase 1-3oft the Scope of Work as contemplated, Client ini its discretion Task 4.1 Technical Assistance with the ongoing management oft the policies, programs and  initiatives set forth ini the EDSP or other work as mutually agreed. Task 4.2 Negotiations with landowners/Prospects/Developers  Consultant will attend meetings and assist with negotiations as needed regarding incentives, project development agreements, public-private partnership agreements and other financing  tools.  Task 4.3 Contracts  Consultant will assist with public-private partnership, PILOT, TIF and other financing incentives as mutually agreed upon between the Town and the Prospect/Developer. This includes coordination with Town administration, legal, finance and planning departments.  Staffing & Location  Kathleen Rose, President of Rose & Associates Southeast, Inc. will serve as overall Project Manager for this assignment. Work: shall be completed from Consultant office and attendance at meetings in person or via phone in Fletcher (not to exceed 5 meetings). Qualifications may be found on our website: wwroeasodatescon or www.linkedin.com/n/foseassociates We anticipate the following schedule to complete the Scope of Services outlined above: Phase 1- On/about 90 days from acceptance of proposal and authorization to proceed, Phase 2- On/about 90 days from the completion of Phase 1, estimated by September. 30, 2019 Phase 3 - On/about 30 days from completion of Phase 2, estimated by October 30, 2019  Schedule and Deliverables estimated by. June 30, 2019;  Deliverables shall include:  Phase 1-[ Debriefing (visit #3) presentation in Powerpoint/PDF Phase 2- Final Report (visit #4) presentation and bound report document  As contemplated herein, any preliminary, summary or full report documents willl be submitted within 48 hours after receipt ofa any comments from your review. All documents will be submitted to the Client in a printed document and a digital format in pdf format. All images will become the property of the Client upon payment oft the final invoice. Additional bound hard copies of the documents may be provided at the request oft the Client, for a small fee to cover Itis agreed by the Client that Consultant's deliverables are not to be used in conjunction with any public or private offering without our prior written consent and: such consent will not be unreasonably withheld. Any subsequent review and revisions related to providing such consent  reproduction expenses.  4    will be provided on a time and materials basis subject to Consultantsstandard hourly billing  rates. Project Budget  Professional Fee - We propose a professional fee of $23,500.00 to complete the Scope of  Services outlined in 1-3 herein, to be completed as follows:  Phase 1 Market Analysis-$14,000.00 Phase 2 EDSP. $9,000.00 Phase 3 Partnership $500.00  Expenses- - Consultant anticipates that this engagement will require regular travel for performance ofs services and to attend meetings. Expenses include reasonable travel expenses, report reproduction costs, express delivery charges, research data and other customary expenses related to the completion of our work. Reimbursable expenses associated with travel, include but are not limited to airfare, hotel, car rental for this assignment will be billed at our cost; however, such reimbursable expenses shall be limited to Two Thousand Five Hundred Additional/Optional Work - Phase 4 and/or Implementation Work: Subject to Client's approval, any additional scope as outlined as additional, time or tasks, including but not limited to on call work will be conducted on at time and materials basis as detailed by Consultant's fee schedule Additional Costs/Fees- The costs of additional time or other work, demographic reports, meetings or other services outside the scope ofv work described above will be accommodated on at time-and-expense basis upon the client's approval, subject to Consultant's standard hourly All Costs and Fees for services shall be billed monthly, and payment is due upon receipt. Any invoices not paid within 30 days shall be subject to a late fee of 12% per annum. Toi initiate this work, Consultant respectfully requests two original signed copies of this Agreement, together with a retainer in the amount of $2,500.00 providing authorization to  ($2,500.00) dollars.  attached, as mutually agreed.  rates and fees, as outlined in the attached Fee Schedule.  proceed with Phase 1-3 as outlined herein.  Acceptance  Should Consultant discover any conditions during its analysis that could adversely affect the Project, these will be brought to your immediate attention and all work will cease pending your instructions. Similarly, you retain the right to terminate the Project at any time. If you elect to terminate the Project at any point in time, only professional fees and expenses incurred as to the date of termination, plus reasonable costs oft terminating the Project, would be due and  payable.  5    Iti is agreed by the Client that payment for the services of Consultant is due upon receipt oft the invoice; that full payment is due upon receipt of the completed assignment; and that Consultant has the right to withhold delivery oft the final deliverable pending receipt of any  overdue payments.  Ify you have any questions or requested modifications to this proposal, please let me know.  Sincerelyyours, ARor Kathleen Rose, CCIM, CRE Rose & Associates Southeast, Inc. Atachmenty/Adendums Fee Schedule Terms & Conditions  Signature below by the authorized party indicates acceptance oft this proposal based upon the  Scope of Services, Fees and Terms & Conditions contained herein.  Client Approval CLIENT: By:  Accepted and agreed to as written this  day of  2019  Print Name, Duly Authorized    Terms & Conditions Addendum  Any additional work beyond the scope or limits described herein willl ber reviewed withy you for written authorization to proceed. Any outside consultants as contemplated within thes scope of work or proposal aret tol be retained by Rose & Associates, thef feesf for which willr reimbursed byy you and are included in this proposal. The following is not included andy will be deemed extra work (unless otherwise noted) billed at hourly rates ora  contract price to be determined:  Project Development including site planning, amanelonn/-mromenal regulatory coordination, management, planning, engineering or other services related to obtaining any/all regulatory approvals. Financial Analysis including budgeting, calculating Projected returns, or financing. Project Marketing including preparation of marketing materials, promotional items, marketing, listing or Meetings - additional meetings or workshops other than outlined in the Scope of Services on the  leasing the Project. preceding pages. Client Responsibiities:  In connection with and, ifa applicable, as a condition to our performance oft the services you agree to provide complete and accurate information concerning your requirements for the Project; and provide access to or make provision for entry upon public/private property, ifnecessaryf for ther rendering of services. Alls suchi information willl be heldi int thes strictest confidence by Rose & Associates, and not disclosed to any third party accept when  authorized ori int the performance of services as mutually agreed upon.  Other Agreements:  a. We: are performing thes services as ani independent contractor and not as youra agent, partner or employee. b. We willl have no liability for any failurei to perform or delayi in performance due to any circumstances beyond C. Except as provide herein, we make no warranty, express or implied, and shall have no other liability to you for services, whether caused by error, omission, negligence or otherwise. You agree toi indemnify and hold Rose & Associates, Inc. harmless from all claims, damages, loses and expenses, including reasonable: attorneys' fees and d. We retain ani intellectual property interest in all documents and information generated by us in connection with the performance oft the services. You have ther right to copies of all such documents. Your may not reuse the documents on any other Project or for any other purpose without our prior written approval. You agree to indemnify andl hold us harmless from all claims, damages, losses, and expenses arising out ofyour unauthorized e. Either of us may terminate this Agreement upons seven days written notice int the event of substantial failure byt the other partyt to perform. Upon such termination, you will promptly pay us for all Services rendered to the This agreement shall be binding upon andi inuret to the benefit of thes successors, assigns, personal representatives, heirs and legatees of ther respective parties hereto, any entities resulting from reorganization, This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements, representations or understandings between the parties relating to thes subject matter hereof. h. The provision of the agreement are: severable, and should any provisions hereof be void, unenforceable or invalid, such provisions shall not affect any other portion or provision oft the Agreement. This Agreement shall bei interpreted, construed and enforced according toi thel laws of thes state of North  our reasonable control.  costs arising out of negligence or willful misconduct.  use of the documents.  date of termination, plus reimbursable expenses.  consolidation or merger of any party hereto.  Carolina  7    Terms & Conditions Addendum (cont.)  Itisunderstood byt the Client that Rose & Associates Southeast, Inc. can make no guarantees concerning the recommendations, which will result fromi the proposed assignment, since these recommendatiqns must be based upon facts discovered by Rose & Associates Southeast, Inc. during the course oft thes study and those conditions existing as of the date of the report. Top protect you: and other Clients, andt to assure that ther research results of our work will continue to! bea accepted as objective andi impartial by the business community, iti is understood: that our feef for the undertaking of this Project isi in no way dependent upon the specific conclusions reached or ther nature Itis agreed byt the Client that the report is not tol be used in conjunction with any public or private offering of debt or equity securities without our prior written consent, and that such consent will not be unreasonably withheld. This study willl beb based on estimates, assumptions and other information developed by Rose & Associates Southeast, Inc. from its independent research effort, consultations with you andy yourr representatives, and primary ands secondarys sources. We will utilize sources that are deemed tol be reliable but cannot guarantee their accuracy. Moreover, estimates and analysis are based on trends and assumptions and, therefore, there will usually be differences between Projected and actual results because events and circumstances frequently do not occur as expected, and those differences may ber material. No responsibility is assumed for inaccuracies inr reporting by you, Rose & Associates Southeast, Inc. will not undertake any update of its research effort subsequent to the completion dates of ther reports. Thei firm has no obligation, unless subsequently engaged, to update the reports or revise the analyses as presented duet to events or conditions occurring after the date oft the reports. Int the event anyi invoice is not paid within thirty (30) days after rendering of thei invoice it shall commence bearing interest on the date thei invoice was rendered at the rate of 12 percent per annum (ors such lesser rate as may be the maximum interest permissible under applicable law), and the Client agrees to pay all accrued interest, together with the charges for services rendered as provided fori int this agreement. In addition, should an unpaid invoice be, referred to our attorneys for collection, the Client agrees to payt their reasonable feet for such work, as well as any Itis further agreed byt the Client that the report willl be presented to third parties in its entirety and that no abstracting of the report willl be made without first obtaining the consent of Rose & Associates Southeast, Inc, and Itis understood by Rose & Associates Southeast, Inc. that thet findings oft this report are the proprietary property of the Client and they will not be made available to any other organization or individual withouti the consent of the  of the advice given! by us in our report to you.  your agents andi representatives, or any other data source used inj preparing this study.  costs ofs suit that may be incurred.  such consent will not be unreasonablywitheld.  Client.  8    ROSE ASSOCIATES 2019 Fee Schedule  Hourly Rates: Principal  $265.00/hour $165.00/hour $145.00/hour 9 45.00/hour $325.00/hour  Senior Project Consultant Project Consultant Adminstration/Clenta. Expert Witness/Princpa  Expenses: Data Reports: Photocopies Facsimile Travel  Economic/Real Estate Analytics $160.00 per report  $.10/page $.50/page $.58/mile *  * based upon published 2019 IRS standard mileage rates. Travel from office to project location shall be billed per auto driven mile and half of the Consultant's quoted hourly rates for time. For projects more than 100 miles from office, expenses for airfare, lodging & meals  shall also bei included and will be billed at cost.  ALLI INVOICES ARE DUE UPON RECEIPT.  INVOICES PAID AFTER 15 DAYS ARE SUBJECTTO FINANCE CHARGES  OF 12% PER. ANNUM.  9