SANFORD CITY COUNCIL WORK SESSION Tuesday, June 11,2024 West End Conference Room 225 East Weatherspoon Street, Sanford, NC  The City Council held a work session on Tuesday, June 11, 2024, at 1:00 p.m. in the West End  Conference Room at City Hall. The following people were present:  Mayor Rebecca Salmon Council Member Jean Dabbs Council Member Linda Rhodes City Attorney Susan Patterson City Clerk Bonnie Davis Absent: Mayor Pro Tem Mark Akinosho Call to Order Closed Session  Council Member Byron Buckels Council Member Walter Ferguson Council Member James Williams Assistant City Manager Beth Kelly Deputy City Clerk Vicki Cannady  Council Member Charles Taylor (left at 4:25 p.m.) City Manager Hal Hegwer  Mayor Salmon called the meeting to order.  Council Member Rhodes made a motion to go into closed session in accordance with N.C.G.S. 143.318(11)(a)3), to consult with an attorney employed by the public body in order to preserve the attorney-client privilege; (4), to discuss matters relating to the location or expansion ofi industries or other businesses in the area served by the public body; and (5), to establish, or to instruct the public body's staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating the (i) the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease. Seconded by Council Member Ferguson, the motion  carried unanimously.  Consider SAGA Funding for Regional Economic Impact Analysis  Sanford. Area Growth Alliance (SAGA)Chiefl Executive OfficerJimmy Randolph informed Council that SAGA is undertaking a study project to determine the direct and indirect economic impact of all major projects they have experienced over the last few years, specifically some that are located outside of Lee County that impact our area. The common denominator for these projects is that they are provided vital water and waste water services by TriRiver Water. The General Assembly requested the Department of Economic Quality (DEQ) to conduct a study of the impacts and the needs of major development projects such as Fuji, NovaNordisk, VinFast and Wolfspeed, etc. The study SAGA is proposing will analyze actual direct and indirect impacts projects located within Lee and the Chatham County area will have on the water and waste water utilities that will be serving those projects. This study will essentially supplement the General Assembly study and look specifically at the area that TriRiveri is serving. Itisi important for SAGA tou understand that TriRiver has the ultimate capacity to meet the future water and wastewater obligations. Itwould also be a tool for SAGA to use in approaching the General Assembly and our state leaders in making the case to support the required utility investments for companies to have sustained success. Mr. Randolph noted that the State is witnessing positive economic development benefits from large projects in and around Lee County. He added that SAGA has already committed to this study and explained that the estimated cost of this study is approximately $120,000 and SAGA has already received $60,000 in donations from some of SAGA's private sector partners for this project. Mr. Randolph asked Council for    City Council Work Session June 11,2024  financial support and noted that other governments that are impacted by this study are also being asked for  financial contributions.  Mayor Salmon asked City Manager Hal Hegwer if staff had considered the City's financial commitment for this study in the FY 2024-2025 budget preparation. Mr. Hegwer explained that he discussed this issue with Assistant City Manager Beth Kelly and they determined that any contribution should come out of the Utility Fund. Mr. Hegwer asked Council for a commitment of approximately $60,000, with the concept that others, such as Chatham County, would also contribute funding. Mr. Randolph noted that at this point, he is only interested in a retainer fee to initiate the project. He hopes to have the study completed in September 2024, and he would like to have the remainer of funds available as the invoices materialize. He added that if others contribute, then the City would not have to provide the  entire $60,000.  Council Member Taylor asked Mr. Randolph ifhe had spoken with the Lee County Commissioners about the study and the possibility of their contribution. Mr. Randolph explained that he has not yet approached Lee County, but by using outside expertise for the study, it will help to reassure Lee County of the City's focus on the future stability of TriRiver Water. Mr. Randolph added that he plans to have discussions with Lee County regarding the study details and its benefits. The consensus of Council was to  move forward with the study project.  Mr. Randolph reminded Council that Kyowa Kirin has announced that they will locate a bio- manufacturing facility at Helix Innovation Park, with an investment of $200 million. He added that the corporate board in Tokyo voted to authorize expenditures up to $530 million for this facility.  A five-minute break was taken at 2:10 pm Consider Interlocal Agreement with Town of Pittsboro  Assistant City Manager Beth Kelly explained that staff is working with the Town of Pittsboro on the Interlocal Agreement for services, which will become effective July 1, 2024. One of the service contracts that staff is proposing relates to collections. Since the City does not have a facility located in Pittsboro, we are proposing to contract with the Town of Pittsboro to continue collecting checks and cash Randolph payments at their current city hall location. In addition, staff is proposing to contract with the Town of Pittsboro to conduct utility inspections. City Attorney Susan Patterson noted there will be a resolution for entering into an Interlocal Agreement, and a contract for utility, bill collections, utility inspections and project administration included on the consent agenda at the June 18, 2024, Council  Meeting.  Discussion Regarding Boards and Commissions Exhibits A, B  Mayor Salmon noted that appointment of members to serve on the various City Boards and Commissions (Exhibit. A) will be an agenda item on the. June 18, 2024, City Council Meeting. She reviewed the information contained in spreadsheet Exhibit A, noting that information has been incorporated in this document that will pertain to individual applicants, such as waivers that Council may have to consider. Mayor Salmon noted Council will have to appoint a chairperson on the ABC Board and the Tourism  Development Authority.  Council Member Ferguson informed Council that he has had conversations with some people and has contacted City Attorney Susan Patterson in reference to expanding the. ABC Board from three members  2    City Council Work Session June 11, 2024  to five members, and he understands that Council has the authority to make this change. Mr. Ferguson explained that since there are now three ABC stores in our area, he feels it is time to expand the board membership. Mayor Salmon noted that this issue would have to be addressed in an open meeting.  Council Member Taylor voiced an objection to the manner in which Council Member Ferguson approached the issue of increasing the ABC Board membership because he did not contact all of the ABC Board members, including himself (who is the liaison for the board) for their input regarding increasing the board membership. He commented that if Mr. Ferguson wants to increase the number of board members from three to five members, then it should be done in an appropriate manner. He expressed concern that he was intentionally left out of the conversations concerning the increase. Mr. Taylor referenced the information included in Exhibit B regarding approximately 82 percent of missed meeting opportunities by an individual when they were the liaison and he asked that these documents be made a part of the record (Exhibit A). Mr. Taylor noted that the ABC Board has been a three-member board since 1961, and  explained that larger cities have five-member boards.  Council Member' Taylor asked Attorney Susan Patterson at what point anyone would be in violation of not responding to a public records request. Attorney Patterson responded that the requirement is "a reasonable time," which is subjective; the courts would decide if the response time was reasonable.  Attorney Patterson noted that the ABC Board members are appointed by Council; however, the Board is regulated by State mandates, and the State has determined that North Carolina ABC Boards may  consist of either three or five members.  The consensus of Council was favorable to consider increasing the ABC Board membership from Attorney Susan Patterson explained the processes that Council may use for selecting board Council Member Taylor commented that he hopes Council will reach consistency in nominating board members. Attorney Patterson suggested that if Council wants to consider expanding a board, they should contact her prior to discussion because it could require an ordinance. Mr. Taylor commented that liaisons have a responsibility to the Boards to which they are assigned to attend the meetings and deliver reports to Council. He added that Council should consider this when nominating applicants.  three members to five members when it is presented during an open Council meeting. members, and noted that Council will receive samples of the voting process.  A brief recess was taken an at 3:10 p.m.  Budget Discussions Exhibit C  Mayor Salmon commented that there are many ongoing projects included within the FY 2024-2025 Budget. City Manager Hal Hegwer and Assistant City Manager Beth Kelly reviewed each departmental budget and responded to all questions. Council Members carefully reviewed and evaluated expenditures for the proposed FY 2024-2025 budget as presented in Exhibit B. Following review, Council determined  that there was no need for any follow-up review meetings.  3    City Council Work Session June 11,2024 Other Business  Council Member Rhodes reported that there has been communication between Steve Brewer and Downtown Sanford, Inc. Executive Director Kelli Laudate in regards to his request to be removed from the  Municipal Service District.  Assistant City Manager Beth Kelly informed Council that shel has received confirmation from Fitch that the City's bond rating on the water plant expansion project has remained the same; it has not been  downgraded and our debt issuance cost is confirmed at zero percent interest.  Assistant to the City Manager Holly Marosites mentioned that the Salvation Army Navigation Center will close its services at the Bread ofLife facility and operate a mobile canteen on Chisholm Street  effective the end of. June 2024.  Fire ChiefMatt Arnold mentioned the upcoming Academy Graduation on July 2, 2024, at 6:30 p.m. Chief Arnold also mentioned that there will a Family Burn Day on Monday, June 17, 2024, during the day  and he invited everyone to attend.  Mayor Salmon mentioned that the Outreach Mission construction project on Third Street is underway and there will be a formal groundbreaking soon. City Manager Hal Hegwer mentioned that a tour of the new fire station will be provided for Council soon. Public Works Director Fedd Walker mentioned that bid packages for the Sanford Agricultural Marketplace will go out in. June 2024.  Adjournment  Council Member Williams made the motion to adjourn. Seconded by Council Member Rhodes, the  motion carried 4unanimously.  ALL EXHIBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE  AND MADE. A PART OF THESE MINUTES.  Respectfully Submitted,  Mayor  Attest:  L  Ga  4