MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SANFORD, NORTH CAROLINA The City Council met at the Sanford Municipal Center, 225 E. Weatherspoon Street, on Tuesday, June 4, 2024, at 5:00 p.m., in Council Chambers. The following people were present: Mayor Rebecca Wyhof Salmon Council Member Byron Buckels Council Member Walter Ferguson Council Member. James Williams City Manager Hall Hegwer Deputy City Clerk Vicki Cannady Council Member Charles Taylor CALL TO ORDER Pledge of Allegiance was recited. PUBLIC COMMENT APPROVAL OF AGENDA the motion carried unanimously. CONSENT AGENDA SPECIALAGENDA REGULARAGENDA NEW BUSINESS (Exhibit A) Mayor Pro Tem Mark Akinosho Council Member Jean Dabbs Council Member Linda Rhod City Attorney Susan Patterson City Clerk Bonnie Davis Absent: Mayor Salmon called the meeting to order. Council Member Dabbs led the invocation and the There were no requests for public comment. Mayor Salmon requested that Item 12, Closed Session, be removed from the agenda. Council Member Rhodes made ai motion to approve the agenda as amended. Seconded by Council Member Buckels, Ther were no items on the consent agenda. There were: no items on the special agenda. There were no items on the regular agenda. Presentation of the Proposed Annual Operating Budget for the City of Sanford Fiscal Year 2024-2025 City Manager Hegwer reviewed Exhibit A and explained that the budget would be discussed at the Council Workshop next Tuesday, June 11,2024. He explained that the strategic framework established by Council guides the budget process. Aj public hearing will be held June 18, 2024, for consideration ofthe budget and he hopes to have it adopted thereafter. Mr. Hegwer explained that the proposed budget is $94,734,909. He informed Council that the current tax rate of $0.535 per $100 valuation is proposed to remain unchanged; however, rate increases of six percent are proposed to water and wastewater rates and a $10 increase is proposed to the solid waste fee for households. A total of 24 additional personnel is proposed for the rebranded, "TriRiver Water" Utility Department; five new employees will be added to Sanford's current staff and nineteen of Pittsboro's current staff will become Sanford employees after their City Council Meeting June 4,2024 utility system is merged with the City's, effective July 1, 2024. Mr. Hegwer explained that there will be separate cost centers for Sanford and Pittsboro. He clarified that Pittsboro will be merging with Sanford into one utility. Although expenses will be combined under the "TriRiver Water" name, there is a separate cost center for Pittsboro utilities and a separate cost center for Sanford utilities and only the expenses associated with Sanford will affect Sanford's customers; likewise, the only expenses associated with Pittsboro will affect their customers. The goal is to merge both systems into one seamless system with the same rate for everyone; however, this will take time to accomplish. Mr. Hegwer added that a salary adjustment of one percent is proposed, as well as a cost-of-living adjustment of3.7 percent. Reimbursement Resolution - Used Ladder Truck (Exhibit B) Assistant City Manager Beth Kelly explained that this resolution isi intended to allow the option for reimbursement to the City ofs Sanford fori financing proceeds ofau used laddertrucki for the Fire Department. Council Member Ferguson made a motion to approve thel Reimbursement Resolution - Used Ladder Truck. Seconded by Council Member Buckels, the motion carried unanimously. Ordinance Amending the Annual Operating Budget - Fire (Exhibit C) Assistant City Manager Beth Kelly explained that this appropriates the fund balance necessary for Council Member Buckels made ai motion to approve the Ordinance Amending the Annual Operating the Fire Department to purchase the proposed used ladder truck in the amount of $384,700. Budget - Fire. Seconded by Council Member Ferguson, the motion carried unanimously. Purchase ofUsed Ladder Truck (Exhibit D) Fire Chief Matt Arnold reminded Council that purchasing a used truck was discussed at a prior workshop. The current ladder truck has a 75-foot aerial which is not adequate for some of the larger commercial buildings. We ordered a new fire truck about 18-months ago and it should be completed in November or December of 2025. This used vehiçle will serve until the new truck is delivered and then it will be used as a backup. He reviewed Exhibit D and added that this truck mirrors our current truck, which will ease the transition, and a warranty is included in the purchase. by Council Member Rhodes, the motion carried unanimously. DECISIONS ON PUBLIC HEARINGS (Held at 6:00 p.m.) Council Member Dabbs made a motion to approve the purchase of a used ladder truck. Seconded Application by TMTLAAssociates to rezone two parcels totaling 8.59+ +/- acres owned by. Jeffrey' T.Myles located at 3310 and 3314 Keller-Andrews Road (SR 1154)identified as Lee County Tax Parcels 9632-82- 9799-00 and 9632-82-6535-00 as depicted on Tax Map 9632.04 from Residential-Mixed (R-12)_to the Keller-Andrews Towns Conditional Zoning District to allow the site to be developed as a townhome community as per the plans and information submitted on/with the application (Exhibit E) Senior Planner Amy McNeill reviewed the information contained in Exhibit E and explained that thel Planning Board met following the public hearing on May 21,2024, and recommended unanimously that Council approve this request because iti is consistent with the long-range land use plan designation ofUrban Neighborhood. Ms. McNeill noted that topics of discussion included the developer agreeing to continue working with the adjoining school to assist in addressing the existing traffic congestion issues created by the drop-offand pick-up ofs students. Ms. McNeill noted that on May 30, 2024, Planning staffa and as school representative participated in virtual meeting organized by North Carolina Department of Transportation (NCDOT) to review the site through aerial images. The NCDOT District Engineer and Assistant District Engineer were in attendance at this meeting and they will forward this matter to a group ofNCDOT staff 2 City Council Meeting June 4,2 2024 that specifically reviews internal circulation patterns and make suggestions for improvements. NCDOT and Lee Christian School are continuing to work toward lessening the congestion issue at the school. Vote to Approve a Statement on Long-Range Plan Consistency as it Relates to this Zoning Map Council Member Buckels made ar motion that the proposed zoning map amendment is consistent with the PlanSanLee Long-Range Plan designation of Urban Neighborhood because the project associated with this request proposes ai townhome community with a density within the ten-units per acre max recommended density for Urban Neighborhood. Also, the design includes sidewalks and street trees, which are preferred development characteristics noted by the adopted land use plan and will be served by public water, sewer and streets. Seconded by Council Ordinance. Amending the Official Zoning Map oft the City of Sanford, North Carolina (Exhibit I F) Council Member Rhodesi made a motion to approve the Ordinance Amending the Official Zoning Map oft the City of Sanford, North Carolina, because it is reasonable and in the public interest because it proposes a residential development of attached single-family dwellings to be served by public water, sewer and streets in an area on the outskirts of the City. Seconded by Council Member Rhodes, the motion carried unanimously. Member Dabbs, the motion carried unanimously. Application by Harrington Properties ofNC. LLC,to rezone 3.54 acres +/- with frontage on Cooper Street and Bragg Street, identified as Lee County Tax Parcels 962-39-2131-00.9652-38-1960-00. andal 1.76a acre portion of 9652-38-1810-00 (developed with a house addressed as 802/804 Bragg Street) as illustrated on Tax Map 9652.06, from General Commercial (C-2) and Residential-Mixed (R-12) to the Townhomes at Palmer Court Conditional Zoning District to allow the development of a townhome community (Exhibit G) Senior Planner Amy McNeill explained that the Planning Board met after the public hearing was held on May 21, 2024, and recommended unanimously that the Council approve the request because itis in compliance with the PlanSanLee Long-Range plan. Vote to Approve a Statement on Long-Range Plan Consistency as it Relates to this Zoning Map Council Member Buckels made a motion that the zoning map amendment is consistent with the PlanSanLee Long-Range plan designation of Urban Neighborhood because it proposes a townhome community served by public water, sewer and streets in an area near the City core and is walkable to nearby commercial districts ini the area. Seconded by Mayor Pro Tem Akinosho, Ordinance. Amendingthe Official Zoning Map ofthe CivofSanford.North Carolina (ExhibitH) Council Member Ferguson made a motion to approve the Ordinance Amending the Official Zoning Map of the City of Sanford, North Carolina, because it is reasonable and in the public interest since the associated project is an infill project of attached single-family townhome dwellings served by public water and sewer. Seconded by Council Member Dabbs, the motion Amendment the motion carried unanimously. carried unanimously. Mayor Salmon called ai reçess at 5:55 p.m. and the meeting reconvened at 6:00 p.m. Public Hearing to Consider al Request to Reduce the Municipal Service District (Exhibit I) CASE FOR PUBLIC: HEARING (Held at 6:00p.m.) Mayor Salmon opened the public hearing. City Attorney Susan Patterson explained that a property owner has requested that his property be 3 City Council Meeting June 4,2 2024 removed from the established boundaries ofthel Municipal Service Districta and serefermcedamapalowing the owner's property and the boundaries of the Municipal Service District as described in Exhibit I. Itis required that Council vote at two separate meetings, which Council will vote at this meeting tonight and at the June 18, 2024, Council Meeting. Steve Brewer, 109 Carbonton Road, Sanford, North Carolina, requested that his properties located at 101-109 Carbonton Road, Sanford, North Carolina be removed from the Central Business Tax District. He noted that he owns additional property located within the Central Business Tax District in Downtown Sanford. Mr. Brewer explained that his properties at 101-109 Carbonton Road are located five blocks away from the downtown area and are separated by Horner Boulevard. He does not receive any of the benefits that other property owners located within the Central Business District receive, although he pays the same Municipal Service District fee of $3,000. He added that he could use the $3,000 fee that hej pays each year toward marketing his business. Mr. Brewer commented that streetscape work was done downtown but not on the west side ofl Horner Boulevard; banners are placed in Jonesboro but those merchants don't pay MSD fees; and many businesses that are not located in the MSD are promoted. He mentioned that Downtown Sanford, Inc. (DSI) does a goodj jobi focusing on downtown but not businesses located fivel blocks away. Mr. Brewer explained that the City funds will promote activities in areas such as Kiwanis Park and Jonesboro, not DSI. He added that the way thei MSD is broken up by Horner Boulevard, promoting all ofthe businesses that are. included int thel Municipal Service District isi impossible, andi iti is unfair to businesses that are located five blooks away that pay the same fee as businesses located within the Downtown Sanford area. Ashely Davenport, 108 North Gulf Street, Vice-Chair of Downtown Sanford, Inc. (DSI) informed Council that the DSI met on May 30, 2024, and the board voted unanimously to oppose this request. The Municipal Service District (MSD) was established in 1980 and covers 17 blocks. She explained that the MSD is used for downtown economic development efforts, marketing and grants that benefit owners in the district. She acknowledged that Horner Boulevard separates Mr. Brewer's! property from the downtown area but she hopes that through the new marketing effort, "Come Connect," she hopes to continue striving to connect the two areas. She added that removing this property would create a precedent that would reduce the efficiency oft the Municipal Service District. She asked Council to deny this request. established in 1980 consisted of seven blocks and was expanded in 1989 to the current radius. Attorney Susan Patterson made a correction ini the statement made by Ashley Davenport. The MSD Council Member Rhodes expressed concern regarding timing of this request since DSI is in the middle ofcreating the "Come Connect" plan. She noted that she spoke with Mr. Brewer and they both agree that the City will continue efforts to revitalize Jonesboro and the City is growing, soi it might not be the best time to reduce the MSD boundaries. She stated that reducing the MSD area would be a disservice to our Small Area Strategic Plan and she does not support Mr. Brewer's request. Mayor Pro Tem Akinosho suggested that a compromise could be made. since Mr. Brewer also owns other properties downtown and has been in the MSD for many years. He encouraged both parties to discuss options. Council asked DSI Director Kelli Laudate to speak concering thisi issue. Mrs. Laudate confirmed that Mr. Brewer's business was not inçluded in the recent "Strawberry Jammin" event and apologized for that omission. She noted that a Google document was circulated for events and posts were advertised on Facebook. She mentioned that DSI partners with "Visit Sanford" and that is why businesses outside the MSD were promoted. Council Member Willaims asked whether a list ofMSD participants is provided to local developers. 4 City Council Meeting June 4, 2024 Mrs. Laudate confirmed that information was delivered recently, as well as 1,000 bags to local hotels with information on local restaurants. She agreed that Horner Boulevard presents a challenge to connecting both sides; however, the new branding campaign will help connect the two. Mayor Salmon noted that the Small Area Plan for Downtown Sanford should help with the Horner Boulevard issues and that these issues have been discussed with DSI, Sanford Area Growth Alliance (SAGA), and North Carolina Department of Transportation (NCDOT) officials. She agreed that there are plans that will take time and effort before coming to fruition. Council Member Buckels agreed that Horner Boulevard is a challenge but the proposed Carthage Street "road diet" will present opportunities for businesses on the west side ofHorner Boulevard. Council Member Ferguson suggested that this issue will cause DSI to revamp marketing efforts to promote business outside the Downtown Sanford core area and ensure that MSD funds are not used to promote businesses located outside the MSD area. Counçil Member Williams suggested that Mr. Brewer has likely done alll he can to work with DSI in promoting his businesses and if Mr. Brewer wants to be removed from the Municipal Services District, he should be allowed to do sO. With no one speaking in favor or in opposition, Mayor Salmon closed the public hearing. Council Member Rhodes made a motion to deny the Ordinance request to Reduce the Municipal Service District as: shown on the attached ExhibitI. Seconded by Council Member Dabbs, the motion carried Public Hearing on Final Closeout ofthe CDBG/Community Development Block Grant) Funding for Project by a five to one vote. Council Member Williams cast the dissenting vote. Forge Mayor Salmon opened the public hearing. Mary Depina, Civil Engineer II, introduced Grants Administrator Amanda Whitaker with WithersRavenel. Ms. Whitaker explained that the City received $1,250,000 in CDBG funds for sewer improvements needed for the facility located at 777 Kalyani Way, Sanford, North Carolina. She reviewed project requirements as shown on the attached Exhibit J and reviewed project activities accomplished through the program. She explained that project requirements were met and closeout is inj process. The State performedam monitoring visit and gaves staffac clean report. Ms. Whitaker noted that the final closeout process will be completed once the minutes ofthis meeting are approved. With no one speaking in favor or opposition, Mayor Salmon closed the public hearing. OTHER BUSINESS Workshop on June 11,2024. Mayor Salmon encouraged Council Members to review the budget documents prior to the Council 5 City Council Meeting June 4, 2024 ADJOURNMENT Council Member Buckels made the motion to adjourn the meeting; seconded by Council Member ALL EXHIBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE Rhodes, the motion carried unanimously. AND MADE AI PART OF THESE MINUTES. Respeçtfully Submitted, AERCAMMEANENAYOR CMEE ATTEST: CLERK eds