City of Mount. Airy Regular Board Meeting February 6, 2025 6:00 pm Council Chamber Municipal Building 300 South Main Street Mount. Airy, N.C. This Meeting willl bel held in the Council Chamber oft the Mount Airy Municipal Building and also virtually by viewing through the following Zoom link: ntrs/MS2wcbzcom.tS/82735668789 using password COMA if prompted. You may also view this meeting via Facebook Live by connecting to the City's Facebook page The City of Mount. Airy, NC. Link will be posted on www.mountairy.onr the day oft the meeting. AGENDA Welcome and Call to Order.. Invocation.. Pledge of Allegiance.. Mayor Cawley Mayor Cawley Everyone Items for Discussion and Possible Action 1.) APPROVAL OF AGENDA: 2.) CONSENT. AGENDA: The consent agenda is comprised of matters of routine business that do not require discussion by the Board. Items included on this agenda are indicated with an asterisk (*) and will all be considered with one motion by the Board. Should a Board member wish to remove an item from the consent a) **Resolution Approving First. Amendment to. Duke Energy Lease Agreement: Resolution No. 2025-036 b) **Resolution Making Historic Preservation Commission Reappointments: Resolution No. 2025-037 c) **Resolution Ordering Advertisement for Unpaid Taxes: Resolution No. 2025-038 d) **Resolution Approving Tax Releases: Resolution No. 2025-039 e) **Budget Ordinance Amendment to. Appropriate Insurance Proceeds: Ordinance No. 2025-020 agenda, that item will be considered ini its listed place on the agenda. 3.) PUBLIC: HEARINGS: 4.) SPECIAL: RECOGNITIONS: PRESENTATIONS: 5.) a) b) Black History Month Proclamation Farmer's Market Update 6.) PUBLIC FORUM: 8.) OLD BUSINESS: 9.) NEW: BUSINESS: a) b) c) 7.) ITEMS REMOVED FROM CONSENT AGENDA: Project Ordinance Amendment #3 for Mill District Streetscape Grant Project: Ordinance No. 2025-017 Project Ordinance Amendment for Mill District Streetscape Grant Project: Ordinance No. 2025-018 Project Ordinance for Mill District Streetscape Grant Project-Phase I: Ordinance No. 2025-019 10.) OTHER BUSINESS: 11.) REMARKS BY OFFICIALS: a. City Council b. City Manager City Attorney 12.) CLARIFICATIONREBUTTAL BY MAYOR. AND CITY COUNCIL: 13.) ADJOURNMENT: RESOLUTION NUMBER 2025-036 RESOLUTION APPROVING FIRST AMENDMENT TO DUKE ENERGY LEASE AGREEMENT WHEREAS, the City of Mount Airy entered into a lease agreement with Duke Energy Carolinas, LLC1 to allow them to lease aj portion ofa City-owned vacant lot located on Franklin Street (PIN 5020-15-54-6661); and and placement of temporary toilet facilities; and WHEREAS, Duke Energy will use said lot for parking of their vehicles, equipment, WHEREAS, said lease expired January 23, 2025 and Duke Energy desires to extend the lease to July 23, 2025, with the option to extend for six additional one-month periods; and WHEREAS, it is staff recommendation to approve this First Amendment to the NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY Lease Agreement between the City of Mount Airy and Duke Energy Carolinas, LLC: BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. The Board does hereby approve the First Amendment to the Lease Agreement Section 2. The Board does hereby authorize execution of said First Amendment of Lease between the City of Mount Airy and Duke Energy Carolinas, LLC. upon review and approval by the City Attorney. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 6th day of February, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk PREPAREDI BY: Karoll P. Mack, Deputy General Counsel, Duke Energy Mail To: Duke Energy Carolinas, LLC Data &1 Document Management DEP21 525 South" Tryon Street Charlotte, N.C. 28202 Property No.: 1200516 Land Unit: Project No: 1200516-865167 2832023 STATE OF NORTH CAROLINA COUNTY OF HENDERSON FIRST AMENDMENT OF LEASE THIS FIRST AMENDMENT OF LEASE (the "Amendment") is made and entered into as of the subdivision of the State of North Carolina, whose mailing address is 300 S. Main Street, Mount Airy, North Carolina 27030 ("Lessor") and DUKE ENERGY CAROLINAS, LLC, a North Carolina limited liability company, having a mailing address of 525 South Tryon Street, DEP-21, Charlotte, North Carolina 28202 day of 2025 by and between CITY OF MOUNT AIRY, a political ("DEC"). WHEREAS, Lessor and Lessee entered into a Lease Agreement dated July 20, 2023 (the "Lease"), whereby Lessor leased to Lessee the Leased Premises (as such term is defined in the Lease) which may be used as a parking lot for vehicles and equipment and forj placement oftemporary toilet facilities. WHEREAS, the Lease expires on January 23, 2025, and Lessor and Lessee desire to extend the termination date to July 23, 2025, with the option to extend the Lease for six (6) additional one (1) month periods. NOW THEREFORE, for and in consideration of the foregoing premises and agreements contained herein and other good and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, Lessor and Lessee, intending to be bound hereby, do hereby amend the Lease, as follows: The term of the Lease shall be extended to July 23, 2025 (the "Extension Term"), with the option to extend the Lease for six (6) additional one (1) month terms (each one-month additional term being a "Renewal Term"). Except as amended by this Amendment, the terms of the Lease are hereby ratified and affirmed in all respects. Signatures Begin on Following Pagel Cityof/ Mounty Airy- Amend toi Lease 1.21.2025 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed this the day and year first above written. LESSOR: CITY OF MOUNT AIRY ap political subdivision oft the State ofl North Carolina By: Name: Title: (SEAL) LESSEE: DUKE ENERGY CAROLINAS, LLC al North Carolina limited liability company MT Name: Andrew T. Hill By: (SEAL) Title: Director, Real Estate Transactions 2 Cityof Mounty. Airy- Amend to Lease 1.21.2025 RESOLUTION NUMBER 2024-007 RESOLUTION APPROVING LEASE. AGREEMENT BETWEEN CITY OF MOUNT. AIRY AND DUKE ENERGY CAROLINAS, LLC (PIN5 5020-15-54-6661); and WHEREAS, the City of Mount Airy owns a vacant lot located on Franklin Street WHEREAS, Duke Energy Carolina, LLC wishes to lease a portion of said vacant lot (See Exhibit A) to be used as a parking lot for vehicles, equipment, and placement of temporary toilet facilities; and WHEREAS, the lease shall commence on July 24, 2023 and expire January 23, 2024 with Duke Energy having the right to renew. for two additional six-month terms; and WHEREAS, it is staff recommendation for approval of the proposed lease agreement between the City of Mount Airy and Duke Energy Carolinas, LLC for use of a portion oft the City-owned vacant lot as mentioned: NOW, THEREFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. The Board of Commissioners does hereby approve the above-mentioned Lease Section 2. The Board of Commissioners does hereby authorize the Mayor to execute said Agreement between the City ofl Mount Airy and Duke Energy Carolinas, LLG. Lease Agreement per review and approval by the City Attorney. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 20th day ofJuly,2023. fenCawley, Mayor ATTEST: MeHssa Momfaahu N. Brame, City Clerk Prepared By: Karol P. Mack, Deputy General Counsel, Duke Energy Property No.: Land Unit: Project: STATE OF NORTH CAROLINA COUNTY OF SURRY LEASE AGREEMENT This LEASE made and entered into this 2h day of July 2023 ("Effective Date") by and between CITY OFI MOUNT AIRY, a political subdivision oft the State ofNorth Carolina, whose mailing address is 300 S. Main Street, Mount Airy, North Carolina 27030 ("Lessor") and DUKE ENERGY CAROLINAS,LLC, al North Carolina limited liability company ("Lessee") with ai mailing address of 526 South Church Street, ECII-05, Charlotte, North Carolina 28202. WITNESSETH: That Lessor, for and in consideration of rents to be paid and the covenants and agreements hereinafter expressed to be kept and performed by Lessee, hereby leases to Lessee and Lessee hereby leases from Lessor, subject to the exceptions and reservations and upon the terms and conditions and for the purposes in this instrument set out, the following property located in Surry County, North Carolina, hereinafter referred to as the That certain tract, piece, parcel or lot of land located in Surry County, North Carolina, being a portion ofTax Parcel No. 502015546661, the approximate location of which is shown outlined in yellow on the aerial depiction attached hereto as Exhibit A and incorporated herein by reference. 1. Term: ThisLease shall commence on. July 24, 2023 and shall expire on. January 23,2024ClnitalTer"). Lessee shalll have the right to renew thel Lease fort two (2) additional six (6) month terms. The Initial Term 2. Rent: Lessee covenants and agrees to pay Lessor rent in the amount of One Thousand Two Hundred Dollars and No/100 ($1,200.00) per month, on or before the first day of each calendar month, without notice, demand, offset, or deduction, during the Term. IfLessee fails toj pay all or part of the rent by the fifth day of any calendar month during the Term, Lessee also shall pay Lessor a late fee equal to five 3. Permitted Uses: The Leased Premises may be used as aj parking lot for vehicles and equipment and for "Leased Premises,' " to wit: and any renewal term(s) are collectively referred to as the "Term." percent (5%) oft the unpaid rent. placement ofi temporary toilet facilities. CityofMount. Airy- Parking Lease 7.11.2023 4. Assipnment: Lessee shall not assign, sublet, or in any manner transfer this Lease or any interest in this Lease, or permit the use oft the Leased Premises by anyone other than Lessee, its employees, agents, and 5. Hazardous Materials: Lessee shall not bring to or handle, store, dispense, transport or locate on or about the Leased Premises any chemical, toxic, carcinogenic, radioactive or hazardous materials or any 6. Indemnification: Lessee shall indemnify, defend, and hold harmless Lessor from and against damage to any property ofthel Lessor or others and injuries to or death of persons proximately arising from Lessee's use oft the Leased Premises, except to the extent such damage or injury to or death of! persons results from 7. Termination: This Lease may be terminated by either party upon thirty (30) days written notice to the other party, and the Lessee shall remove, at the Lessee's sole expense, all property ofLessee and vacate the Leased Premises by the end of the thirty (30) day notification period. Upon the termination or expiration of this Lease, in whatever manner and whenever terminated, Lessee shall, to the extent reasonably practical, return the Leased Premises to substantially the same condition as it was at the 8. Binding Authority: This Lease shall be binding upon and inure to the benefit of the parties hereto and 9. Entire Agreement: This instrument contains the entire agreement between Lessor and Lessee, and no statement, premise, inducement, representation, or prior agreement which is not contained in this written 10. GoverningLaw: This Lease shall be governed by and construed in accordance with the laws of the State 11.Notices: Wherever in this Lease it shall be required or permitted that notice be given by either party to this Lease to the other, such notices must be in writing and must be given personally or forwarded by contractors, without the prior written consent ofLessor. petroleum products or contaminants. the negligence ofLessor, its employees, invitees, or agents. commencement ofthis Lease. their respective successors and permitted assigns. Lease shall be valid or binding. ofNorth Carolina. certified mail addressed as follows: To Lessor: City ofN Mount Airy Attn: Darren Lewis Assistant City Manager 300 S. Main Street Mount Airy, North Carolina 27030 Data & Document Management-ECI-S 526 South Church Street Charlotte, North Carolina 28202 ToLessee: Duke Energy Carolinas, LLC Such addresses may be changed from time to time by notice given hereunder. CityofMount Airy- Parking Lease 2 7.11.2023 IN WITNESS WHEREOF, this Lease has been duly executed Lessor and Lessee Effective Date. by under seal as of the LESSOR: CITY OF MOUNT AIRY ap political subdivision oft the State ofNorth Carolina By: (SEAL) Name: Jos Gpley Title: MAyor LESSEE: DUKE ENERGY CAROLINAS, LLC al North Carolina limited liability company By: Name: Andhew-7il Andrew T. Hill (SEAL) Title: Director, RE Strategy & Transactions City of! Mount Airy- Parking Lease 3 7.11.2023 EXHIBIT A The Leased Premises is the area outlined in yellow inside thet fence. The Lesee will not use the area outlined in orange. 4A Apil7,2023 PARCELI ID: 502015546661 OWNER: CITYOFI MOUNT AIRY 300SMAINST PO8OX70 MOUNTAIRYN NC 27030-0070 Surry County 1:1,956 etm co:: ains DEEOF ACRES: REF: 01748/0942 3.22AÇ LANDY VALUE: $198,840 BLDG VALUE:S $0 OBXV VALUE: $0 ASSESSEDI VALUE: $198,840 RESOLUTION NUMBER 2025-037 RESOLUTION MAKING HISTORICPRESERVATION COMMISSION REAPPOINTMENTS WHEREAS, there are two members of the City of Mount Airy Historic Preservation WHEREAS, both members have expressed interest in being reappointed for another NOW, THERFORE BE IT RESOLVED BY THE CITY OF MOUNT AIRY Commission whose terms have expired; and three-year term: BOARD OF COMMISSIONERS MEETING IN OPEN SESSION THAT: Section 1. Bobbie Collins is hereby reappointed to the Historic Preservation Commission Section 2. Shelby King is hereby reappointed to the Historic Preservation Commission for another three-year term, which shall expire January 31, 2028. for another three-year term, which shall expire January 31, 2028. Section 3. This resolution shall become effective upon approval. Approved and adopted this the 6th day of February, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk RESOLUTION NUMBER 2025-038 A RESOLUTION ORDERING ADVERTISEMENT OF UNPAID TAXES. WHEREAS, Michele McDaniel, in her capacity as Tax Collector, has submitted a report on unpaid 2024 Taxes, which constitute a lien on real property as required by G.S. 105-369 (a) and, WHEREAS, G. S. 105-369 (a) provides for the advertisement of such taxes, NOWTHEREFORE BEI IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF Section 1. In accordance with G.S. 105-369 (a), the Tax Collector is hereby authorized, COMMISSIONERS MEETING IN OPEN SESSION THAT: empowered, and commanded to advertise unpaid taxes for the current fiscal year that are liens on real property at least once between March 1 and June 30. Section 2. This Resolution shall become effective upon approval by the Board of Commissioners oft the City ofMount Airy. Adopted and approved this the 6th_ day of February 2025. Jon Cawley, Mayor ATTEST: Melissa N Brame, City Clerk RESOLUTION NUMBER 2025-039 Al RESOLUTION Approval ofTax Releases WHEREAS, al list of taxes to be released has been submitted by the Revenue Collections Supervisor in her capacity ofTax Collector for the City ofMount Airy Finance Department; and WHEREAS, North Carolina General Statute 105-373 provides for settlement of such taxes; and WHEREAS North Carolina General Statute 105-381 provides for release or refund oftaxes; and NOW THEREFORE BE: IT RESOLVED BY THE CITY OF MOUNT AIRY BOARD OF Section 1. Said taxes be released or refunded in accordance with said statutes for the reasons Section 2. This Resolution shall become effective upon approval by the Board of COMISSIONERS MEETING IN OPEN SESSION THAT: stated on the attached list. Commissioners ofthe City ofl Mount Airy. Adopted this 6th day of February, 2025. Jon Cawley, Mayor ATTEST: Melissa N. Brame, City Clerk de le le A25-005 ORDINANCE NUMBER 2025-020 BUDGET ORDINANCE AMENDMENT WHEREAS the City of Mount Airy adopted the 2024-25 budget on June 6, 2024; AND WHEREAS the City of Mount Airy has received insurance proceeds to repair vehicle damage for public works; also the City of Mount Airy has received reimbursement from Friends of the Mount Airy AND' WHEREAS iti is necessary to amend the budget ordinance in order to appropriate these funds in AND WHEREAS General Statute 159-15 of the North Carolina Government Fiscal Control Act provides NOW, THEREFORE, be it ordained that authorization is hereby given to make the following adjustments: Police Department for BLET student costs; order make the necessary repairs and reimburse the City for student costs; authority to amend a current municipal budget; Increase (Decrease) 6,128 3,818 9,946 9,946 9,946 3,743 3,743 3,743 3,743 Section 1. General Fund Appropriations Police Public Works Section 2. General Fund Revenue Estimates Miscellaneous Revenue Section 9. Water and Sewer Fund Appropriations Public Works Section 10. Water and Sewer Revenue Estimates Miscellaneous Revenue Adopted this 6th day of February, 2025. Mayor Attested: City Clerk November2 27, 2024 The Honorable Jon Cawley City of Mount Airy Mayor Mount Airy Board of Commissioners Mr. Darren Lewis, City Manager City of Mount Airy 300 South Main Street Mount Airy, NC 27030 Subject: Request for Use of Virginia Street Parking Loti for Surry County Farmers Market Dear Mayor Cawley, Commissioners, and Mr. Lewis, lam writing on behalf of1 the Surry County Farmers Market and Mount Airy Downtown, Inc., toi formally request the City of Mount Airy's support in utilizing the' Virginia Street parking lotoni Fridays from 9:00 AM1 to 12:00 PM, beginning April 25 through October 28,2025. We are excited about this collaborative opportunity to host the Surry County Farmers Market in the heart of downtown Mount Airy. This partnership represents a shared commitment to fostering community engagement, promoting local agriculture, and driving economic growth. Afarmers market brings immense value to our city, benefiting farmers, residents, and local businesses alike. By providing a platform fort farmers to sell fresh, locally grown produce, baked goods, and handcrafted items, we not only support our agricultural community but also offer residents and visitors access to high-quality products. Moreover, thei farmers market has a proven record of drawing foot traffic to the downtown area. This increased activity stimulates the local economy, positively impacting nearby businesses and enhancing Mount Airy's reputation as a vibrant, community- oriented destination. The market also fosters connections among neighbors, creatinga welcoming atmosphere that reflects the city's charm and sense of togetherness. We are confident this initiative will be a resounding success, aligning with the city's vision for at thriving, inclusive community. We kindly ask for the City of Mount Airy's partnership and approval to use the' Virginia Street parking lot during the requested times. Thank you for considering this request. We look forward to your support in making the: 2025 farmers market season an enriching experience for all. Sincerely, Surry County Farmers Market, Mount Airy Committee ORDINANCE #: 2025-017 PROJECT ORDINANCE. AMENDMENT #3 MILL DISTRICT STREETSCAPE GRANT PROJECT FOR WHEREAS the City of Mount Airy has received an additional grant award from the North Carolina Department of Commerce, Rural Transformation Grant Fund, to be used for the Mill District Streetscape Project; These funds will BE IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that this grant is hereby accepted, authorization for execution of the grant agreement is hereby given, and that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance amendment is The project was authorized is for the expenditure of funds awarded under the North Carolina Department of Commerce these funds are being removed and placed in Mill District Streetscape Phase II Grant project be used in Phase II oft the streetscape project. hereby adopted: Section 1 as follows: Award Number: SA-0336 Amount: ($487,500) North Carolina Department of Commerce Rural Transformation Grant Fund Section 2 Section 3 The officers oft this unit are hereby directed to proceed with the project within the terms of the award documents and the budget contained herein. The following amounts are appropriated fori the project: Economic and physical development $ (487,500) Section4 Grant proceeds Section5 records Section6 Section Z The following revenues are anticipated to be available to complete this project: $ (487,500) The Finance Officeri is hereby directed to maintain within the Project Fund sufficient specific detailed to satisfy the requirements of the grantor agency, the grant agreements, and state regulations. Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement Copies of this project ordinance shall be furnished to the Clerk tot the Governing Board, and to the Budget Officer accounting requests should be made to the grantor agency in an orderly and timely manner. and the Finance Officer for direction in carrying out this project. Adopted this 6TH day of February, 2025. Mayor Attested: City Clerk ORDINANCE # 2025-018 PROJECT ORDINANCE AMENDMENT MILL DISTRICT STREETSCAPE GRANT PROJECT FOR WHEREAS the City of Mount Airy has received a grant award from the United States Department of Agriculture Community Facilities Program, to be used for the Mill District Streetscape Project (Parking Lot); BEI IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that this grant is hereby accepted, authorization for execution of the grant agreement is hereby given, and that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance amendment is The project authorized is for the expenditure of funds awarded under the United States Department of Agriculture hereby adopted: Section 1 as follows: Award Number: 38-086-591876460 Amount: Section 2 Section3 $522,000 United States Department of Agriculture The officers of this unit are hereby directed to proceed with the project within thei terms of the award documents and the budget contained herein. The following amounts are appropriated for the project: Economic and physical development $ 522,000 Section4 Grant proceeds Section5 Section6 SectionZ The following revenues are anticipated to be available to complete this project: $ 522,000 The Finance Officer is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to satisfy the requirements of the grantor agency, the grant agreements, and state regulations. Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement Copies of this project ordinance shall be furnished to the Clerk to the Governing Board, and to the Budget Officer requests should be made to the grantor agency in an orderly andi timely manner. andi the Finance Officer for direction in carrying out this project. Adopted this 6TH day of February, 2025. Mayor Attested: City Clerk ORDINANCE # 2025-019 PROJECT ORDINANCE FOR MILL DISTRICT STREETSCAPE PHASE II GRANT PROJECT WHEREAS the City of Mount Airy has reçeived a grant award from the North Carolina Department of Commerce, BE IT ORDAINED by the Board of Commissioners of the City of Mount Airy, North Carolina, that this granti is hereby accepted, authorization for execution of the grant agreement is hereby given, and that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby adopted: The project authorized is for the expenditure of funds awarded under the North Carolina Department of Commerce Rural Transformation Grant Fund, to be used for the Mill District Streetscape Project; Section 1 as follows: Award Number: SA-0336 Amount: $487,500 North Carolina Department of Commerce Rural Transformation Grant Fund Section 2 Section 3 The officers of this unit are hereby directed to proceed with the project within the terms of the award documents and the budget contained herein. The following amounts are appropriated for the project: Economic and physical development $ 487,500 Section 4 Grant proceeds Section5 Section 6 SectionZ The following revenues are anticipated to be available to complete this project: $ 487,500 The Finance Officer is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records tos satisfy the requirements of the grantor agency, the grant agreements, and state regulations. Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement Copies of this project ordinance shall be furnished to the Clerk to the Governing Board, and to the Budget Officer requests should be made to the grantor agency in an orderly and timely manner. and the Finance Officer for direction in carrying out this project. Adopted this 6TH day of February, 2025. Mayor Attested: City Clerk