Salisbury, North Carolina  June 20, 2023  REGULAR MEETING  PRESENT: Mayor Karen K. Alexander, Presiding; Mayor Pro Tem Tamara Sheffield, Council  Members Harry McLaughlin, David Post, and Anthony Smith; City Manager Jim Greene, Jr., City Clerk Connie Snyder; and City Attorney J. Graham Corriher.  ABSENT: None.  Salisbury City Council met in Council Chambers in City Hall located at 217 South Main Street. The meeting was called to order by Mayor Alexander at 6:03 p.m. A moment of silence  was taken.  PLEDGE OF ALLEGIANCE  Mayor Alexander led participants in the Pledge of Allegiance to the United States flag.  ADOPTION OF THE AGENDA  Thereupon, Mayor Pro Tem Sheffield made a motion to adopt the Agenda as presented. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembersh McLaughlin, Post, and Smith voted  AYE. (5-0)  RECOGNITION- COMMUNICATIONSTEAM  Communications Director Linda McElroy noted the Communications Team took home first and second place awards from the North Carolina City and County Communicator's competition. She stated the Communications Team won first place Excellence in Communications awards for its external newsletter, The Lamplighter, and crisis communication regarding its coverage of a shooting thattook place at Livingstone College. She noted the Communications Team also took home a second  place award for the graphic design ofthe 20221 Reels and Riffs poster.  Salisbury City Council  June 20, 2023  Page 1    Council thanked the Communications Team for all it does to keep citizens informed.  BIKE MONTHUPDATE  Greenway, Bicycle, and Pedestrian Committee Member Mary Rosser and Traffic Engineering Coordinator Vickie Eddleman provided an update on events that took place in May during National Bike Month. Ms. Rosser stated an art contest was held and Ms. Ruby Corriher was selected as the art contest winner. Ms. Karyssa Price was the second place winner, Ms. Emily Wacaster was the 3td place winner and honorable mentions were given to Mr. John Graham  Corriher, Jr. and Ms. Addison Coldiron.  Council congratulated the contest winners and thanked Ms. Rosser and Ms. Eddleman for  all they do for the City. PROCLAMATIONS  Mayor to proclaim the following observance: INDEPENDENT RETAILER MONTH  July 2023  CONSENT AGENDA (a) Minutes  Approve Minutes oft the special meeting ofMay 23, 2023. (b) Budget Ordinance Amendment - Bell Tower Green. Inc. appropriate a state directed grant for Bell Tower Green, Inc.  Adopt a budget Ordinance amendment to the FY2022-2023 budget in the amount of $200,000 to ORDINANCE AMENDING THE 2022-2023 BUDGET ORDINANCE OF THE CITY OF SALISBURY, NORTH CAROLINA TO APPROPRIATE A GRANT FOR BELL TOWER (The above Ordinance: isi recorded ini full in Ordinance Book No.31 at Pagel No. 233, and is known  GREEN.  as Ordinance 2023-42.)  (c) Budget Ordinance Amendment - Busker's Bash  Adopt a budget Ordinance amendment to the FY2022-2023 budget in the amount of $1,500 to appropriate grant funds from the Rowan Arts Council to support the Busker's Bash.  Salisbury City Council  June 20, 2023  Page2 2    ORDINANCE AMENDING THE 2022-2023 BUDGET ORDINANCE OF THE CITY OF SALISBURY, NORTH CAROLINA TO APPROPRIATE A DOWNTOWN DEVELOPMENT (The above Ordinancei is recorded ini full in Ordinance Book No.31 at Page No. 234, andi is known  GRANT.  as Ordinance 2023-43.)  (d) Approval of Easement - Old Concord Road  Approve the easements for Project C-5603D, sidewalk on Old Concord Road from Ryan Street to Jake Alexander Boulevard. Construction is anticipated to begin Iate summer 2023. This project is funded through a North Carolina Department of Transportation Congestion Mitigation and Air  Quality grant.  (e) Agreement -] North Carolina Governor's] Highway Safety Program  Adopt al Resolution approving the Salisbury Police Department to enteri into an agreement with the North Carolina Governor's Highway Safety Program that will allow the Police Department to receive a $25,000 no-match grant from the program to be used for traffic concerns. NORTH CAROLINA GOVERNOR'S HIGHWAY SAFETY PROGRAM LOCAL (The above Resolution is recorded ini full inl Resolution Book No. 17at] Page No. 25, andi isl known  GOVERNMENTAL RESOLUTION. as Resolution 2023-18.).  (f) Budget Ordinance Amendment -] Bell Tower Green Movie/Concert Series  Adopt a Budget Ordinance Amendment to the FY2022-2023 budget in the amount of $5,000 for ORDINANCE AMENDING THE 2022-2023 BUDGET ORDINANCE OF THE CITY OF SALISBURY,NORTH CAROLINA TO APPROPRIATE SPONSORHIP FOR RECREATION (The above Ordinance is recorded ini full in Ordinance Book No. 31 at Page No. 235, andi is known  expenses related to the Bell Tower Green Movie/Concert Series.  PROGRAMS.  as Ordinance 2023-44.)  Thereupon, Councilmember Post made a motion to adopt the Consent Agenda as presented. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and  Smith voted AYE. (5-0) PUBLIC COMMENT  Mayor Alexander opened the floor to receive public comments.  Salisbury City Council  June 20, 2023  Page 3    Mr. Eathan Chirico addressed Council regarding the Fire Department and public safety. Ms. Whitney Peckman expressed concern over the Police Department removing a Salisbury Pride Board Member Andra Porter thanked Council for its support of Salisbury Pride including Mayor Alexander's issuance of a Pride Day Proclamation and Council's planned attendance ofthel Pride. Festival. She then thanked the Salisbury Police Department fori its support  Hee expressed concern regarding salary and retention offire fighters.  Facebook post that included a Pride flag.  ofSalisbury Pride.  Mr. Kim Porter thanked Council for supporting the LGBT+ community and all citizens. Ms. Cheryl Goins referenced an article in the Salisbury Post regarding the Police Department removing a social media post supporting Pride. She indicated thel Police Department serves the whole community regardless of race, sexual orientation, or social standing, and the  Police Department has always supported the Pride festival.  Ms. Becky Lane noted several local businesses that showed their support of the LGBTQ+ community have received threats and harassment. She stated since the inception ofthe Salisbury Pride Organization it has had the: full support ofthe Salisbury Police. Department, and shei thanked  the Police Department and City leadership for all it does tol keep the City safe.  Mr. Tim Coffey, Salisbury Pride Board Member, stated every interaction Salisbury Pride has had with the City and the Police Department has been positive. He thanked Council for its  continued support of Salisbury Pride and its work to make Salisbury inclusive.  There being no one else to address Council, Mayor Alexander closed the public comment  session.  ECONOMIC DEVELOPMENT INCENTIVE GRANT- CROW HOLDINGS PHASE2 Rowan Economic Development Commission (EDC) Vice President Scott Shelton and Crow Holdings Development Associate Nick Thornton addressed Council regarding an economic  development incentive grant request for Crow Holdings Phase 2.  Mr. Shelton noted Phase 1 of the project included a 713,000 square foot building with a capital investment of$73 million. He added ati its February 7,2023 meeting Council approved a Level 2 three-year incentive grant equal to 90% oft the new taxes to be paid on real property. He  indicated Phase 1 oft the project is under construction.  Mr. Shelton explained Crow Holdings is ready to proceed with Phase 2 which will consist of a 468,000 square foot building with a $45 million capital investment. He stated the total investment by Crow Holdings for both phases is expected tol be $1181 million and the company will  invest additional funds into public road improvements.  Salisbury City Council  June 20, 2023  Page 4    City Manager Jim Greene thanked Crow Holdings fori itsi investment in the community and Councimember McLaughlin asked if there is an estimate for when a company would be in place and begin to hire employees. Mr. Thornton stated Crow Holdings is working with  he thanked the EDC: for its work on the project.  companies who would like to be operational by 2024.  Mr. Shelton reviewed thel Phase 2 incentive grant request. He indicated the grant would be for three years and equivalent to 90% of the new taxes paid on real property resulting in a tax incentive grant valued at $874,314 with the City receiving approximately $2.3 million in net  revenue.  Mr. Shelton stated once a job-creating tenant occupies the building, the company would like Council to consider an incentive grant for the tenant based on its taxable investments in  business personal property along with job creation.  Councilmember Smith asked about the process to determine at tenant for the buildings. Mr. Thornton noted Crow Holdings will work closely with the EDC, the state, and leasing  professionals Cushman and Wakefield regarding tenant leads. development incentive grant request for Crow. Holdings Phase 2.  Mayor Alexander convened a public hearing after due notice regarding economic There being no one to address Council, Mayor Alexander closed the public hearing Thereupon, Councilmember Post made a motion to approve an economic incentive grant for Crow Holdings Phase 2 consisting ofa local Level 21 Incentive grant equal to 90% oftaxes paid on thet taxable: investment over at three year period, estimated tol be $874,000, for construction ofa 468,000 square foot building with a $45 million capital investment by the company. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and Smith voted. AYE. (5-0)  FY2023-2024 CITY BUDGET  City Manager Jim Greene and Finance Director Wade Furches addressed Council regarding the FY2023-2024 City budget. Mr. Greene noted ati its last meeting Council requested follow-up on items including Fund Balance and a Cost of Living Adjustment (COLA) for  employees.  Mr. Furches noted Council was previously presented al balanced! budget asi required by State Mr. Furches indicated staff originally presented a recommended budget of $108,064,027 fort the General and Enterprise Funds. He noted at the last meeting staffp presented al list of projects that could be completed using an additional $1 million of] Fund Balance. He added there was also discussion regarding the possible use ofFund Balance to: fund an additional 1% COLA that would  Statute, and he pointed out Council must approve a final budget by June 30, 2023.  Salisbury City Council  June 20, 2023  Page 5    increase the COLArecommendation from 2%to3%. Her referenced future project that will require  Fund Balance expenditures.  Mr. Furches referred to the fountain at Gateway Park, and he asked Public Works Director Chris Tester to provide an update on the project. Mr. Tester reviewed the history oft the park, and he explained the current fountain is a replica of the original. He noted the water lines to the fountain are. leaking and need to be replaced which will require removing the concrete as well as all the structure around the fountain andi is estimated to cost $20,000. He pointed out the fountain is leaking internally and would need to be shipped to a fountain repair shop in Alabama at an estimated cost of $50,000. He noted staff will coordinate with community partners to look at  alternate uses for the fountain and evaluate the cost.  Councimember Post asked if funding to repair the fountain is included in the proposed budget. Mr. Greene explained the fountain was included in the list of projects that could be completed with additional Fund Balance. He added staff would like to evaluate options for the fountain with community partners and bring the options back to Council mid-year. By consensus,  Council agreed.  Mr. Furches reviewed two recommended changes to the proposed budget: increasing the COLA for all employees to 3% with an implementation date of September 8, 2023 and replacing the windows in the City Office Building (COB). He explained the additional COLA would be funded by a $.06 tax increase, which would generate $238,000. He commented the 2% average. merit pay is still included in the budget and would bei implemented January 2024. He noted a 1% longevity bonus is included in the budget and the City will absorb health insurance premium increases. He explained using additional Fund Balancei toi replace windows at COB would increase efficiency. He added staff recommends waiting on additional projects until the final results of FY2023 are available. He stated with the recommended changes the proposed City-wide budget,  for the General and Enterprise Funds is $108,695,411.  Mr. Furches commented staffisre recommending a revisedi tax rate of$.616toi fund the extra 1% COLA for employees. He noted an increase in stormwater fees of $.40 per month, and he  indicated there are no other fee increases in the proposed budget.  Councilmember Post stated he is concerned fees are not keeping up with inflation. He added he also has reservations when an outside vendor raises its rates and the City does not raise its rates fort the consumers which could createl higher ratei increases int thei future. Mr. Greene: noted staff will monitor costs and the inflation rate carefully, and he pointed out there will be increases in recycling fees over the next two fiscal years. He added staff will continue to evaluate options  and opportunities that will be brought back to Council for its consideration.  Mayor Pro Tem Sheffield thanked everyone who has worked on1 the proposed budget. She added she is hopeful the 1%. longevity bonus, the 3% COLA, and an opportunity for ai merit raise sends aj positive message to employees. She stated she fully supports the proposed budget.  Councimember Smith commended staff for its work to balance the budget while looking  out: for the public good. Salisbury City Council  June 20, 2023  Page 6    Councilmember McLaughlin thanked Mr. Greene his work to keep the public informed Mayor Alexander noted the proposed budget is responsive and responsible to citizens and Thereupon, Councimember Smith made a motion to adopt the budget Ordinance of the City of Salisbury for the fiscal year beginning July 1, 2023 and ending June 30, 2024. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and Smith voted. AYE. BUDGET ORDINANCE OF THE CITY OF SALISBURY FOR THE FISCAL YEAR (The above Ordinance is recorded in full in Ordinance Book No. 31 at Page No. 236-252, and is  during the budget process.  tax payers, and she thanked Mr. Greene for his leadership.  (5-0)  BEGINNING JULY1, 2023, ANDENDINGIUNE 30, 2024.  known as Ordinance 2023-45.)  CONSTRUCTION CONTRACT-FIRESTATION3  Fire Chief Bob Parnell, Finance Director Wade Furches, and Architect Bill Burgin addressed Council regarding a construction contract with KMD Construction Company in the  amount of $8,078,000 for the construction of] Fire Station 3.  Mr. Burgin noted the contracts have been issued to the low bidder, KMD Construction, whoi is working to obtain bonds andi insurance. He added he has worked KMD Construction in the  past, and he is confident they will do a good job fori the City.  Thereupon, Mayor Pro Tem Sheffield made a motion to authorize the City Manager to execute a construction contract with KMD Construction Company in the amount of $8,078,000 for the construction of Fire Station 3. Mayor Alexander, Mayor Pro Tem Sheffield,  Councilmembers McLaughlin, Post, and Smith voted AYE. (5-0)  STAGGERED COUNCIL TERMS  City Attorney Graham Corriher noted at its May 16, 2023 meeting Council adopted a Resolution of Intent to consider changing the City Charter to increase the Council terms to four year staggered terms. He indicated ati its meeting on. June 6, 2023, Councill held the required public  hearing.  Mr. Corriher explained Council can take no action and keep things the way they are, it can change the! length ofterms without areferendum vote, or make the changes with ar referendum vote  that would be on1 the 2023 municipal ballot.  Salisbury City Council  June 20, 2023  Page 7    Councilmember Post asked about the cost of a referendum vote. Administrative Services Director Kelly Baker stated the cost is approximately $9,000 to add a referendum vote on the  ballot. terms.  Thereupon, Councilmember Post made a motion to keep things as they are with two year Councilmember Post pointed out three public meetings took place and aj publicl hearing was held. He noted less than 20 individuals attended the meetings, and he does not see a demand to  change Council terms.  Councilmember Smith stated the City has a growing economy that is getting more complex, and elected officials need additional time to see the items that come before them to fruition. He clarified iti is not a matter of personal opinion, it is a matter of paying attention to the community and wantingi it tol be safer, more efficient, and economically vibrant. Mr. Smith stated his goal is for the Council to have four year terms, but ift the citizens vote for two-year terms he  will support the decision.  Councimember McLaughlin stated hej prefers ai referendum vote on Council terms. Mayor. Alexander and Councilmember Post voted AYE and Mayor Pro Tem Sheffield and Thereupon, Councimember McLaughlin made a motion to adopt an Ordinance to create as separate election to establish four year staggered terms for the Mayor and City Council of the City ofs Salisbury, subject to a qualify vote of qualified voters in accordance with GS 160A-102. Coum-limemherMalmghlin noted the Cityi is growing andi itisi important tol havel longevity on the Council. He indicated staggered terms would eliminate the possibility of an entirely new  Councilmembers McLaughlin and Smith voted NAY. (2-3) The motion failed.  Council being elected.  Mayor Pro Tem Sheffield noted Council should be empowered to make this decision. She pointed out there are 10 municipalities in Rowan County, and the City is one oftwo that currently  have two year terms. Smith voted AYE. (5-0)  Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and ORDINANCE TO CREATE A SEPARATE ELECTION TO ESTABLISH FOUR YEAR STAGGERED TERMS FOR THE MAYOR AND CITY COUNCIL, THE CITY OF SALISBURY, SUBJECT TO A QUALIFY VOTE OF QUALIFIED VOTERS IN (The above Ordinance is recorded in full in Ordinance Book No.31 at Page No. 253, andi isl known  ACCORDANCE WITH GS 160A-102.  as Ordinance 2023-46.)  Salisbury City Council  June 20, 2023  Page 8    Mayor Alexander asked when the Ordinance would take effect.. Mr. Corriher noted Council term lengths will be placed on1 the ballot in 2023 and would take effect in 2025 with voter  approval.  Thereupon, Councilmember Post made a motion to adopt a Resolution to call a special election for thej purpose ofsubmitting to av vote ofthe people, an ordinance adopted by the Salisbury City Council to establish four year staggered terms. Mayor. Alexander, Mayor Pro Tem Sheffield, RESOLUTION TO CALL A SPECIAL ELECTION FOR THE PURPOSE OF SUBMITTING TO A VOTE OF THE PEOPLE, AN ORDINANCE ADOPTED BY THE SALISBURY CITY (The above Resolution is recorded in full in Resolution Book No. 17a at Page No. 26, and is known  Councilmembers McLaughlin, Post, and Smith voted AYE. (5-0)  COUNCIL TO ESTABLISH FOUR YEAR STAGGERED TERMS.  as Resolution 2023-19.)  MUNICIPAL SERVICE DISTRICTI EXPANSION  Downtown Development Director Sada Troutman stated a Municipal Service District (MSD) expansion came before Council at its June 6, 2023 meeting. She stated First Presbyterian Church owns three parcels that it requests be included in the MSD as allowed by NCGS 160A- 538. She added the report required to support the proposed expansion has been available to the  public, and a public hearing was. held at Council's last meeting.  Thereupon, Councilmember Post made a motion to authorize the expansion of the Municipal Service District to include First Presbyterian Church. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and Smith voted AYE. (5-0)  CONTRACT- ESP ASSOCIATES.INC  Downtown Development Director Sada Troutman addressed Council regarding a contract with ESP Associates, Inc. in the amount of $856,602 for the construction level design of Main  Street improvements between Kerr and Horah Streets.  Ms. Troutman noted the streetscape project will provide multimodal safety and functionality, beautification, upgraded infrastructure and amenities, and economic development and competitiveness. She pointed out engaging with the public has been a key element of the process. She indicated in 2021, there were opportunities for the public toj provide feedback on a Main Street streetscape including an online interactive map for people to leave comments. Ms. Troutman pointed out Phase. I was thel Main Street restriping that changed the four lane cross section to a three lane Cross section and changed some of the parking angles to increase pedestrian safety. She indicated Phase II resulted in conceptual drawings that include sidewalk  Salisbury City Council  June 20, 2023  Page 9    bump-outs at the intersections, replaces sidewalks, street trees, and trash and recycling options,  and adds streetscape furniture, art, lighting, bike racks, and landscaping.  Ms. Troutman noted the conceptual drawings do not offer enough detail and the next step is to select a firm for construction level drawings. She stated in 2022 staff released requests for qualifications and received five responses and three firms were interviewed. She pointed out a seven person committee read and scored the proposals, interviewed the: finalists, and selected ESP Associates. She stated the proposed contract addresses site evaluation and base mapping all the way through utility coordination and designing the construction documents. She noted the City Communications. Team will be aj part of the process and the company has committed to working with stakeholders regarding the construction timeline and impact. She stated the design work will  begin in. July and will take approximately 121 months to complete.  Ms. Troutman noted there is funding to cover approximately six blocks oft the Main Street Streetscape Project. She indicated the groundwork that is being completed will help the City  prepare for the construction process.  Ms. Troutman explained the total cost of the contract is $856,602, and she pointed out $650,000 was budgeted in the current fiscal year using ARPA funding. She added the $206,000 difference will be paid through the General Fund and funding from Salisbury-Rowan Utilities  (SRU).  City Manager Jim Greene noted there are two items for Council's consideration the construction level design and the next item on Council's Agenda will be the grant for the construction. He indicated the grant will cover 80% of construction, but there is not a grant for  the design phase oft the project.  Mayor Pro Tem Sheffield noted the project is far reaching and will impact multiple Thereupon, Mayor Pro Tem Sheffield made a motion to authorize the City Manager to execute a contract with ESP Associates, Inc. in the amount of $856,602 for the construction level design of Main Street improvements between Kerr and Horah Streets. Mayor. Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and Smith voted AYE. (5-0)  departments.  Thereupon, Mayor Pro Tem Sheffield made a motion to adopt an Ordinance amending the FY2022-2023 budget Ordinance oft the City ofSalisbury, North Carolina to appropriate funds for construction level design. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers ORDINANCE AMENDING THE FY2022-2023 BUDGET ORDINANCE OF THE CITY OF SALISBURY, NORTH CAROLINA TO APPROPRIATE FUNDS FOR CONSTRUCTION (The above Ordinanceisrecorded. ini full in Ordinance Book. No.31 at Page No. 253a, andi is known  McLaughlin, Post, and Smith voted AYE. (5-0)  LEVEL DESIGN. as Ordinance 2023-47.) Salisbury City Council  June 20, 2023  Page 10    MUNICIPALAGREEMENT- NORTH CAROLINA DEPARTMENT TOF  TRANSPORTATION  Downtown Development Director Sada Troutman addressed Council regarding a municipal agreement with the North Carolina Department of Transportation in the amount of $9,283,444: for construction ofDowntown Salisbury Main Street] Improvements, Project HL-0064. She explained a grant has been awarded to the City from the Cabarrus-Rowan Metropolitan Planning Organization (MPO) for construction of the downtown Salisbury Main Street improvements between Kerr and Horah Streets. She stated once the construction design is completed therei is a grant for the actual construction oft the project. She noted the grant award will be ai reimbursement from the North Carolina Department ofTransportation (NCDOT) to the City of eligible expenses up to $7,426,755. She indicated the grant will require a City match of $1,856,689, and the total agreement is $9,283,444 that will go towards construction oft those six blocks on. Main Street. She added staff anticipates the local match being spread out over multiple  fiscal years.  Thereupon, Mayor Pro Tem Sheffield made a motion to approve ai municipal agreement with the North Carolina Department of Transportation in the amount of $9,283,444 for construction of Downtown Salisbury Main Street Improvements, Project HL-0064. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, Post, and Smith voted. AYE.  (5-0) grant.  Mayor Pro Tem Sheffield thanked the MPO for allowing the City to have access to the  MICROTRANSIZUPDATE  City Manager Jim Greene stated microtransit is aj priority for Council, and he pointed out the state did not receive all of the federal funding it anticipated which impacted microtransit  moving forward in the City.  Transportation Director Rodney Harrison noted microtransit is an on-demand ride share service that will improve ai rider's experience when using the City's public transportation system. He added transportation: is changing andi microtransit provides an opportunity to re-engineer public  transportation while being flexible to meet the community'si needs.  Mr. Harrison explained there are two partnership model Sofiware-as-a-Service (SAAS) and Transportationas-service (TAAS). He stated SAAS uses software from at third party to offer on-demand service that the City would manage and operate with its own operators and vehicles. He added' TAASis at turnkey solution operated by a third party on behalfofthe City that includes  technology, operators, vehicles, drivers, and operation management.  Mr. Harrison noted ati its. January 28, 2022 Retreat Council adopted a priority toi implement amicrotransit pilot project to determine the viability of alternative transportation. Hei indicated at its. June 7, 2022 meeting Council approved an in-house microtransit pilot project that would begin  Salisbury City Council  June 20, 2023  Page 11    in December using the SAAS model and then transitioning to the TAAS model if the North Carolina Department of Transportation Integrated Mobility Division (NCDOT-IMD) funding is awarded through the United States Department of Transportation's Rural Surface Transportation Grant Program (RURAL). He explained the pilot project would replace Route #3 and include  some service to rural areas and ADA paratransit service.  Mr. Harrison indicated at. January 26, 2023 Retreat AECOM presented ai recommendation to replace routes 1, 2, and 3 and ADA paratransit service with microtransit using SAAS. He explained the City could lose up to $200,000 in State Maintenance Assistant Program (SMAP) funding if microtransit is implemented system-wide which made implementing a pilot program  more desirable.  Mr. Harrison: stated the City was approved for a three-year $2.8 million Mobility for Everyone Everywhere in North Carolina (MEE NC) grant for a TAAS pilot project and $138,000 for a SAAS pilot project. He added the loss of SMAP and other grant funding is a concern, but SMAP funds will continue for at least two years. He commented the intent OfNCDOT-IMD: is to ensure transit systems do not lose SMAP funding. He pointed out the earliest start datei is. January 1,2024, andl he reviewed thel launch process. Headded. AECOM estimated project implementation  would take nine months when using the TAAS: model..  Mr. Harrison reviewed the recommended pilot project:  A pilot project that replaces Route #3 (Blue Route) and includes ADA paratransit  service  Microtransit service will not expand in rural areas The service will be offered using the TAAS Model Pick up and drop off must be within the service zone Connects with other two routes at the transfer site  201 minute wait time for pick-up 301 minute trip duration virtual bus stops  Door to door service only offered to ADA paratransit riders, all other riders will use Mr. Harrison asked Council to consider approving a' TAAS microtransit pilot project using funding awarded through the NCDOT-IMD RURAL Grant Program and to authorize staff to  proceed with a request for proposal to support the microtransit pilot project.  Councilmember McLaughlin asked how much funding the City would lose if it implemented SAAS as its pilot project. Mr. Harrison stated the City would receive $138,000 in grant funding from NCDOTifiti implements SAAS and $2.8 million ifiti implementedTAAS. He added it is to the City's benefit to take advantage oft the $2.8 million in grant funding to see how the system operates, evaluate it, and learn from the contractor. He commented after three years  the City can make a decision on how it wants toj proceed.  Mayor Pro Tem Sheffield asked about the transfer spot for other routes in the area. Mr. Harrison explained the transfer site is downtown across from the Amtrak Station fora all bus routes.  Salisbury City Council  June 20, 2023  Page 12    Mayor Pro Tem Sheffield pointed out microtransit service will eliminate non-productive Councilmember Smith questioned why the consultant recommend the City implement SAAS instead of TAAS and what the City can learn from the implementation ofTAAS. Mr. Harrison explained AECOM researched nine transit systems throughout the country and for those who had the equipment, personnel, and a transit system already in place, it recommended. the SAAS model. He added staffi recommended implementing TAAS to take advantage of the $2.8  routes.  million in grant funding.  Interim Assistant City Manager Brian Hiatt stated staff is recommending that the City maintain its vehicles in case Council decides to convert from TAAS to SAAS in the future. He pointed out when the consultant made the recommendation the amount of grant funding was unknown. He indicted since the funding amounts have been determined it is' to the City's  advantage to implement TAAS.  Mayor Alexander asked about the current Transit budget. Mr. Harrison stated it is $1.6 million including capital. Mayor Alexander indicated transitioning to TAAS will cost approximately $925,000 per. year for one route. Councilmember Post stated at the current budgeted amount the City pays approximately $550,000 peri route. Mr. Greene stated entities that have converted to microtransit have seen an increase in ridership which leads to an increase in cost. He added the approved budget includes a $600,000 allocation from the General Fund to the Transit Fund. He noted some of the entities that have made the transition to microtransit are looking at a larger subsidy from their General Fund because oft the popularity of the service. He added staff will continue to evaluate cost as it looks for opportunities to expand the service. Mayor Alexander asked ift the City will be able to adjust rates for microtransit service to help offset the potential cost increase. Mr. Hiatt stated the City of Wilson increased its fare, and its customer base was willing toj pay a higher rate: for the increased level of service.  Thereupon, Mayor Pro Tem Sheffield made a motion to approve a microtransit pilot project utilizing the TmgporutioAASerice model and using funding awarded through the North Carolina Department of Transportation Integrated Mobility Division Rural Surface Transportation Grant Program. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers  McLaughlin, Post, and Smith voted. AYE. (5-0)  Thereupon, Councilmember Post made a motion to authorize staff to move forward with issuing ai request for proposal to support ai microtransit pilot project utilizing the Transportation- As-A-Service model. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin,  Post, and Smith voted AYE. (5-0)  Salisbury City Council  June 20, 2023  Page 13    BOARDS AND COMMISSIONS  Community. Appearance Commission  Upon a motion by Mayor Pro Tem Sheffield with Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin, Post, and Smith voting AYE, the following  appointment was: made to the Community Appearance Commission:  Mr. Jason Young  Term Expires 3/31/2026  Hurley Park Advisory Committee  Upon a motion by Mayor Alexander with Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin, Post, and Smith voting AYE, the following appointment was  made to the Hurley Park Advisory Board to fill an unexpired term:  Mr. Jerry Lawson  Term Expires 3/31/2024  CITY ATTORNEY'S COMMENTS (a) Firefighter Social Security  City Attorney Graham Corriher asked Council to consider adopting a Resolution that establishes the effective date for Social Security for firefighters as January 1, 2024, if the firefighters vote to approve participation in Social Security. Hes stated in April Council adopted a Resolution stating if firefighters vote to participate in Social Security Council will take the  required action to take to fund the City's portion oft the costs.  Mr. Corriher stated a 90-day notice of the referendum vote was sent out and the vote is scheduled for August 31, 2023. He added ift the vote is approved aj packet ofmaterial will be: sent to the Social Security office to amend the City's agreement. He indicated an effective date of  January 1, 2024 would establish a clean start at the beginning ofthe year.  City. Manager Jim Greene noted approximately $300,000iss set aside in the coming budget iffirefighters approve Social Security that would cover the City's portion. He thanked Council for its support of the opportunity for the Fire Department and he recognized Mr. Corriher for his  diligent work on this project.  Thereupon, Mayor Pro Tem Sheffield made a motion to adopt a Resolution setting the effective coverage date as January 1,2024 for Social Security pending approval of the Firefighter referendum vote. Mayor Alexander, Mayor Pro Tem Sheffield, Councilmembers McLaughlin, RESOLUTION SETTING THE EFFECTIVE COVERAGE DATE. AS. JANUARY 1, 2024 FOR SOCIALSECURITYPENDINGAPPROVAL OF THE FIREFIGHTER REFERENDUMVOTE:  Post, and Smith voted AYE. (5-0)  Salisbury City Council  June 20, 2023  Page 14    (The above Resolution is recorded in full inj Resolution Book No. 17at Page No. 27, and isl known  as Resolution 2023-20.)  CITYMANAGERS COMMENTS  City Manager Jim Greene thanked Council for all it does for the City, and he recognized  staff for all it does to get the Agenda ready for Council.  COUNCIL COMMENTS  Councimember McLaughlin noted no one from the community attended the Budget Town Hall meeting, and when Council term limits were considered only six people were present. He stated there is al lack of community input and bringing Council terms to a. vote of the people will allow for more. input from the community. He thanked the Fire Department fori its service to the  community.  Councilmember Post noted the budget process was very organized which made it easier for Council. He commended Finance Director Wade Furches on his work with staff and the Management Team to make the budget process a success. He also commended City Manager. Jim Greene. on the Manager's Report which is very beneficial to Council. He referenced the changes that are planned fort the. Amtrak schedule, and he thanked everyone who has worked to make sure  the City's voice is heard.  Councilmember Smith stated he is looking forward to the Salisbury Pridel Festival that will take place this weekend. He added hei is grateful the City is committed to inclusion and celebrating  and looking out for each other.  MAYOR PRO TEM'S COMMENTS  Mayor Pro Tem Sheffield stated she attended the. J.E.S. Center's First Annual Father'sl Day Banquet, and she thanked. Ms. April Butler and Mr. Terrence Jones for their work on the banquet. She commended the Salisbury-Rowan NAACP and the Juneteenth Planning Committee for its  work on the week long. Juneteenth events.  Mayor Pro Tem Sheffield noted approximately 16 people attended the Council meeting in support tofthe Salisbury Police Department and its support ofLGBTQ+ community members. She indicated there has never been a question from that community regarding the Police Department's support. She added there is al heightened sensitivity in the country and young people need to know the City is safe. She stated she has worked with multiple city managers and police chiefs in different capacities and the support has never wavered. She emphasized they have always made sure the community is safe and everyone is treated the same. She added she is hopeful the Police Department and the LGBT+ community heard the message from multiple people during public  comment.  Salisbury City Council  June 20, 2023  Page 15    MAYOR'S ANNOUNCEMENTS AND COMMENTS  Mayor Alexander thanked Mayor Pro Tem Sheffield for attending the J.E.S. Center's Father's Day Banquet, and she pointed out Homeless Advocate Dennis Rivers was one of the honorees. She thanked Council for attending Juneteenth and helping present the proclamation for that very important celebration in the community. She also thanked staff who participated in the  Juneteenth events. (a) Salisbury Pride Festival  Mayor Alexander announced the 11tha annual Salisbury Pridel Festival will take place at Bell Tower Green on Saturday, June 24, 2023 from 11:00a.m. until: 5:00 p.m. The 2023 theme is United with Pride. A Rainbow Walk around Bell Tower Green will take place at 10:45a.m. and will march to the main stage to kick off the festival. The event is free and open to the public.. For more  information please contact Salisbury Pride.  ADJOURNMENT  Motion to adjourn the meeting was made by Mayor Pro Tem Sheffield. Mayor. Alexander, Mayor Pro Tem Sheffield and Councilmembers McLaughlin, Post and Smith voted AYE. (5-0)  The meeting was adjourned at 9:02 p.m.  KLAR  Karen Alexander, Mayor  Couuie Bbnl Connie. B. Snyder, City Clerk  Salisbury City Council  June 20, 2023  Page 16