December 13, 2022 Special Meeting Minutes  HAMLET CITY COUNCIL SPECIAL MEETING (REGULAR COUNCIL MEETING WAS CHANGEDTOSPM) COUNCIL CHAMBERS ROOM 201 MAIN STREET, HAMLET, NC: 28345 TUESDAY, DECEMBER 13, 2022  5:00 PM MINUTES  Governing Body Present: Mayor Council Member Council Member Council Member Staff Present: City Attorney City Manager City Clerk Fire Chief  Bill Bayless Eddie Martin Abbie Covington Maurice Stuart TCI Morphis Matthew Christian Gail Strickland Trey Goodwin  Others Present: Ken Anderson, Rev. Tommy LeGrand, Mary LeGrand  1. Call to Order  Mayor Bayless called the meeting to order at 5:00 pm. He announced Council Members Sellersand  McQueen are out oft town.  2. Invocation  Reverend Tommy LeGrand of Prayer and Faith Temple offered the Invocation.  3. Adoption of Agenda  The City Manager asked fori the addition of Discussion of Fire Truck as Item 7A. Council Member Covington motioned to adopt the Agenda with the Addition. Council Member Martin provided the  second. The vote was 3-0. 4. Adoption of Consent Agenda the second. The vote was 3-0. 5. Comments from Attendees No one presented to address Council. 6. Audit Report from Ken Anderson  Council Member Covington motioned to adopt the Consent Agenda. Council Member Stuart provided  New Business  Mr. Ken Anderson reviewed the 2021-22 Audit Report. He reported the Cityi is required to have an 8% Fund Balance; the City's current Fund Balance is 72%. The tax collection rate improved. The General Fund had an increase of over half a million dollars. The Water/Sewer Fund had a decrease due to depreciation of assets. The cash actually increased. The $81,000.00 loss is al loss on accrual basis only. The City has no debt but that will change with the Sewer Plant Expansion. There were no budget over  1    December 13, 2022 Special Meeting Minutes  expenditures. The City was subject to a' Yellow Book Audit duei to the ARPA money. The Local Government Commission has accepted and approved the audit. Mr. Anderson commended Council and the Manager on utilizing the Accounting Firm to assist in the Finance Officer transition. The Accountant reminded the Board that ARPA money was used for some oft the General Fund Expenditures and those funds will not last. Council should take that into consideration when planning future budgets. Mr. Anderson reported the City was required to have a GASB Audit fort the tower lease. He projected the City will have to have a single audit next year fori the ARPA money and may have the potential fora a single  audit fort the USDA grant or loan. 7. Discussion of ABC Reserve Request  The City Manager reported the ABC Store Manager and ABC Board Chair approached him about the increases tot their operating expenses, primarily the cost ofi inventory. Theyl have requested to reserve some additional capital to keep their operations fluid. Mr. Christian requested that Council delegate authority to the City Manager to allow the ABC Board to reserve up to $10,000.00 on an as-need basis. The agreement with the ABC Board will need to be renewed soon; this will help in the meantime. Council Member Martin motioned to delegate the authority to thé City Manager. The second was provided by Council Member Stuart. Council Member Covington inquired on the reason to reserve the $10,000.00. Mr. Christian answered the funds will be primarily for operations which have increased over the past 10 years. Last year they gave the City approximately $130,000.00. They would like to havei the additional $10,000.00 to purchase inventory. The amount given to the Cityi is their net profits. The Attorney explained issues with the ABC Statutes; there are certain things they are required to get permission fori from the City before they can use some oft the gross revenue. He stated iti is time fort the ABC Board to have a new agreement with the City. By delegating the authority toi the City Manager, they will not have to wait until. January. Mrs. Covington stated: she did not know what they would do, operationally, with an additional $10,000.00 but if the City Manager was overseeing it, she was fine with it. Mr. Christian answered it would be monitored closely andi if they make more than $30,000.00, they can reserve $5,000.001 for capital but today'srequest is for the authority to oversee operational  expenses. The vote was 3-0. 7A. Discussion of Fire Trk  The City Manager reminded Council the ladder truck has been out of service since May. He and Fire Chief Trey Goodwin have discussed options but have determined the ladder truck cannot be repaired and certified. The Fire Department Staff has worked hard to locate a replacement. One has been found in Madison, NC. Iti is from the City of Durham, has low mileage and hours and isi in good shape. He explained one of the constraints in locating a ladder truck has been to find one that will fiti int the fire department bays. Mr. Christian suggested moving forward quickly with the purchase. A Budget Amendment has been given to Council for Consideration, using ARPA Funds. The asking price is $390,000.00. The Budget Amendment includes a 10% contingency for taxes, tags, general repairs, and needed equipment. Council Member Covington inquired on the ladder height. The Chief answered 951 ft. and it has a bucket. He added the truck has low engine hours. Iti isa 2005; new ladder trucks are over $1.5 million. Chief Goodwin explained Sutphen Fire trucks, after al lifespan of 30 years, can bes sent back to the company and recertified for another 30 years. He reported he and staff have looked at and operated the truck and would like to proceed with the purchase. Council Member Martin responded the Fire Department has to have it. Ift the Fire Chief and City Manager have done their due diligence, and this istheir recommendation, he made the motion to accept their recommendation and make the needed arrangements to purchase the ladder truck. The second was provided by Council Member Stuart. Council Member Covington asked if one oft the primary reasons the ladder truck was needed was for the  2    December: 13, 2022 Special Meeting Minutes  Fire Department to do their due diligence in the industrial area outside the Cityl limits. Chief Goodwin confirmed; ISO ratings require al ladder truck for industrial fires. The vote was 3-0.  Other Business 8. City Manager's Reports  City Manager Matthew Christian announced the closings fort the upcoming holidays. City offices willl be closed Friday, December: 231d-Tuesday, December 27th. Garbage normally collected on Friday, December 23rd willl be collected on Thursday, December 22nd and garbage normally collected on Tuesday, December 27th will be collected on Wednesday, December 28th. The Manager thanked the public for supporting all the City events. He stated everything went well and offered appreciation to the partnerships and City employees that put in the extra time. He wished everyone al Merry Christmas. Council Member Martin reiterated the Manager's comments regarding the City's Christmas activities Counçil Member Stuart wished the employees and citizens al Merry Christmas and Happy New' Year. Council Member Covington thanked City staff for their work to hold all the events. She reminded everyone that the City does not close. Many employees work sO that others can enjoy. Mrs. Covington remarked the City received a good audit report but there are austere times coming; she said the City employees will get the City through them and do at top-notch job. She wished everyone a Merry  9. Comments of Council  and wished all al Merry Christmas and Happy New' Year.  Christmas. 10. Mayor's Comments  Mayor Bayless stated all the events were excellent and the parade was well attended. The Old Fashion Christmas hosted by the HBDA was a success. He thanked the City employees for their work and thanked Council for an excellent year of working together. He added the budget went well and wished 11. Motion to goi into Closed Session per NC General Statutes $143-318-11(a) (3)(5)(6) Attorney-Client At 5:30 p.m., Mayor Bayless asked fora a motioni to goi into Closed Session and read the statutes. Council Member Covington provided the motion and Council Member Martin gave the second. The vote was 3-  everyone al Merry Christmas.  Privilege, Contract Regarding Real Estate and Personnel  0.  Return to Open Session  At 6:04 pm. Council Members Martin and Covington motioned to return to Open Session. The vote was  3-0. 12. Adjourn  At 6:05 pm, Council Members Covington and Stuart provided the motion and second to adjourn the  meeting. The vote was 3-0. Respectfully: submitted, daEl M. Strickland, City Clerk  Gail  @  EES