SANFORD CITY COUNCIL WORK SESSION Tuesday, January 14, 2025 West End Conference Room 225 East Weatherspoon Street, Sanford, NC The City Council held a work session on Tuesday, January 14, 2025, at 1:00 p.m. in the West End Conference Room at City Hall. The following people were present: Mayor Rebecca Salmon Council Member Byron Buckels Council Member Walter Ferguson (left 3:40 p.m.) Council Member Charles Taylor (left 4:00p.m.) City Manager Hal Hegwer City Clerk Bonnie Bryant Call to Order Mayor Pro Tem Mark Akinosho (inl 140p.m,len4,10pm) Council Member. Jean Dabbs Council Member Linda Rhodes Council Member James Williams City Attorney Susan Patterson Deputy City Clerk Vicki Cannady Mayor Salmon called the meeting to order. Director of Business Management Nick Fortune introduced Cameron Clinard, the new Tri-River Water Public Information Officer. Assistant City Manager Beth Kelly introduced Bethany Stephens, the new Financial Services Director. Matching Grant from Lee County Arts Council for Juneteenth Long Range Planner David Montgomery informed Council that staff is preparing for the 2025 Juneteenth event and there were approximately 350 attendees at the 2024 Juneteenth event. The City obtained a grant from Lee County Arts Council for the 2024 Juneteenth event in the amount of $6,000, which required a 100% local match. Fortunately, staff was able to use unmarked funds within the Public Arts account for the match; however, these funds are not available this year and staffi is seeking Council approval to fund $6,000 for thel local match. Mr. Montgomery is confident that this year's budget would not exceed the 2024 event budget. If approved, the event will be held Thursday, June 19, 2025, at the W.B. Wicker School. Ron Brower and the City's Unity Choir will provide entertainment again this year. They are also considering including the Community Fellowship Choir along with FSU Jazz Ensemble to perform. The consensus of Council was to provide the $6,000 matching funds for the Public Arts grant. Discussion on Growth Strategies Moving Forward (ExhibitA A) Community Development Director Marshall Downey noted that staffi is aware that Council will soon begin discussions regarding the City's FY 2025-2026 budget. He reminded Council that staff presented the need to update the land use plan to achieve proactive growth management during the previous City Council Retreat. The City has consistently invested in and planned for utilities and infrastructure that meet the needs ofthe citizens and developers, which will be included ini the upcoming budget discussions. He acknowledged that there are: many thought-provoking issues on growth and land use planning, and he provided background on the current land use plan as summarized on Exhibit A and we: must consider our approach in using the Land Use Plan as a framework in growth planning. Council will also need to consider revising our land use regulations (Unified Development Ordinance) and our utility extension policies toj promote or compliment thei recommendations ofthel Land Use Plan. Sanford has experienced a recent growth boom and a trend has been noted: our zoning/development approvals City Council Work Session January 14,2025 are out-pacing the level of construction activity. His presentation provided a comparison of the lots approved verses permits issued for single-family dwellings. Mr. Downey explained that we no longer have the luxury ofslower growth to assist usi in filtering through these land use decisions. Staff suggests building on our 2018 Land Use Plan by addressing two missing elements: the location and timing of development. Staff would like to work with Council to explore new policies that could further address these missing elements and create more predictable outcomes on the impact of all city services when considering new development proposals. Mayor Salmon confirmed this topic will be discussed at the upcoming Council Retreat. Assistant City Manager Vic Czar confirmed that better strategic decisions on providing utilities can be made ifr more information on timing and plans for growth and tools to meet ita are available. Discussion Regarding Utility Building Funding and Construction (Exhibit B) Assistant City Manager Vic Czar explained that we. have reached a point that some decisions are necessary regarding the proposed Utility Building. Mr. Czar displayed a video oft the proposed project, which depicted al building, as well as an inviting setting for the community. The goal in designing this building is to add something for the community, not just more office space. He reviewed the scope of the project and provided the proposed cost estimate of$25,951,326. Staffhas talked to department heads regarding anticipated space needs and tried to make comparisons to similar cities to develop al building of about 24,000 square feet, to meet the needs of the City over the next 30 years, along with grounds improvements and greenways(one: around the building and another around the entire campus perimeter), and a connection to First Street. A drop-box/kiosk for payments is also included, along with exterior restrooms, additional parking (public, staff, gated), and improved public access. Mayor Salmon noted that the current building would likely be reconfigured as needs evolve over time. Mr. Czar confirmed that the City would assume maintenance of1 Third Street (currently provided by DOT) and that space is still available at the end ofThird Street ifan additional police station is needed in the future. He reviewed the construction process, which would be done through the CMAR (Construction Manager at Risk) process, as used for other City projects. He added that the building would primarily serve utility functions but the Community Development Department would also be relocated to the new building to provide more centralized service. Mr. Czar presented the value engineering proposals that could reduce costs, which included: remove two parking areas ($220,030); remove retaining walls, fill, northern greenway loop ($954,356); dor not build out northeast section ofsecond floor($176,413); donot build out southeast section ofsecond floor ($149,684); 500-kw generator reduced to a 135-kw generator ($165,000); replace terrazzo with tile ($81,941); replace glass front casework with p-lam ($77,000); remove greenway trail to Weatherspoon culvert ($70,841); and remove two dual charge EV-stations ($50,072). Mr. Czar recommended leaving the two EV-charging stations; the 500-kw generator; and the retaining walls and fill for the northern greenway loop. Council agreed with Mr. Czar's recommendation on the value engineering proposals and the consensus was that the reminder ofi items could be added in at a later date or be combined with other greenway projects. Assistant City Manager Beth Kelly confirmed that donations made to Friends of Sanford could be used to offset some ofthe exterior amenities, but noted that the entire estimated cost must be budgeted priort to award ofbid. Mayor Salmon requested additional information on energy and maintenance costs related tot the tile and glass work estimates. Ms. Kelly noted that the debt for the project cannot bei issued until the Guaranteed Maximum Price is available to present to Local Government Commission (LGC), which is scheduled in September 2025, then the contract will be awarded in October 2025. Council 2 City Council Work Session January 14,2025 Member Taylor noted that this facility was planned due to needs for additional space long before Tri- River Water was formed. Recess Ar recess was taken at 2:40 p.m. and Mayor Salmon reconvened the meeting at 2:50 p.m. Assistant City Manager Beth Kelly reviewed Exhibit C: and explained that merchant service fees on credit card payments have increased significantly from about $35,000 in 20181 to about $217,000 over the seven-month period from April through October 2024 (about $400,000 annualized). She reviewed the various payment options and suggested one factor in the fee increase is developers making large credit card payments for multiple system development fees on Pittsboro accounts. She reviewed several model options, including passing along the entire 3.75 percent fee to customers. Ini response to questions ofcharging less on lower payments, she explained that merchant services rules require that fees must be applied consistently to all customers, and noted that a 2 or 2.25 percent fee would be lower than a flat Discussion on Credit Card Fees (Exhibit C) fee on minimum bills. Ms. kely'srecommendation was to implement a flat 2 percent convenience fee since that would recoup more costs on higher bills and less on lower bills. She also recommended implementing this in April rather than July (when rates are adjusted), to provide time to notify all customers of this charge. Mayor Salmon noted that the City offers many ways to pay utility bills and confirmed there was consensus among Council to implement a 2 percent convenience fee for credit card payments to be implemented in April 2025 as suggested by staff. Discussion regarding Fire Truck Purchase Fire Chief Matt Arnold reminded Council that the current Fire Truck Ladder One, which was being used as a backup, was damaged in December 2024, and will be unusable for some time, ifiti is possible to be repaired. We currently have four front-line engines and three engine replacements have been ordered, but the timeframe to fabricate them is still very long. Prices have increased about 10 to 13 percent per year over the last three years. There are currently two reserve units on fleet: a 16-year- old unit that is in good working condition and a 30-year-old unit that should be replaced. Safety features are available in units now that were not available thirty years ago. Staffi is looking for something that is currently available or will be available in the very near future that is close to our specifications to help us bridge the gap until the new units that have been ordered arrive. No used units similar to our specifications are available for purchase now but some demo units will likely become available on the circuit soon (with warranties). These units are offered to the first applicant that can provide the funds immediately and the earliest a demo will likely be available is March or April. Staff is requesting Council approve procuring these funds in order to make the purchase within 24 hours. He added that having a reliable unit reserve would better serve Sanford's residents and if this transaction is approved, itwill not be necessary to request another vehicle until 2030. Ift the consensus of Council is favorable for this transaction, Assistant City Manager Beth Kelly explained that a Reimbursement Resolution would be on the January 21, 2025, agenda to appropriate funds to purchase a demo unit should one become available. These units can only be purchased on a "first-come, first-served" basis with immediate payment. This will likely be an installment purchase because ofcllateralization issues and assuming ga4.5 percent interest rate, loan repayment would extend over the next fifteen years. Mayor Salmon confirmed that there was consensus for this transaction. 3 City Council Work Session January 14,2025 Recommendation on Mobility Hub Exterior Finish/Appearance (Exhibit D) Long Range Planning Administrator David Montgomery presented information (Exhibit D) ona third design option and reviewed the two options presented previously for the Mobility Hub project. The third option includes a recommendation to straighten Cole Street (Moore Street will no longer be included) to become a one-way street. The front oft the facility and platform will be primarily along the newly-routed Cole Street. Mr. Montgomery noted that comments heard frequently during the public information sessions were for a building that will function as more than train access, with more rental space available fori meetings and events (SAGA meetings, Main Street Program meetings, Business After Hours, etc.) Mr. Montgomery reviewed details of the third design option and asked for feedback from Council on all three options. Council considered the architectural design options and their continuity to downtown Sanford. Mayor Salmon explained that the consensus ofCouncil was favorable for most ofOption Number Two with more modern features to make it more inviting, such as adding additional glass; arches without the medal pole (as depicted in Option Number Three); red brick (to architecturally coincide with downtown Sanford); and to eliminate Option Number One altogether. Mr. Montgomery confirmed that they will present Council's recommendations to the architects and come back before Council with an Farm Bureau Agreement for Funding of Sanford Agricultural Marketplace (Exhibit E) Assistant City Manager Beth Kelly reviewed Exhibit E and reminded Council that the Farm Bureau Agreement for funding to the Sanford. Agricultural Marketplace is similar to the contract for the McSwain Center donation. Farm Bureau donated $25,000 initially to the project, which was earmarked for the audio-visual portion of the facility. They also gifted $5,000 per year for five years, which will begin in December 2025, orj just before construction is completed. In return for these donations, Farm Bureau is requesting the following: free advertising and promotion on the audio-visual system throughout the venue; free use of meeting space within the building for Farm Bureau Board meetings; name recognition on the permanent plaque at the entrance of the facility; recognizing all funding partners; exclusive naming rights for the executive meeting space in the facility (example: "Lee County Farm Bureau Board Room at the Marketplace"); recognition as a contributing partner at the grand opening; and, once monthly, on a Farmer's Market Day, a Farm Bureau agent would have space to set up a kiosk to promote business. Mrs. Kelly asked Council for feedback concerning these requests. Council Member Dabbs explained that the Farmers' Market has not allowed other businesses to set up a space to promote business, and this request would violate the Farmer's Market Mission altered Mobility Hub Option Number Two design. Statement. City Attorney Susan Patterson added that her concern ist that the Sanford. Agriculture Marketplace is a government building, owned by the City. To provide Farm Bureau a space to set up a designated kiosk to promote business over any other vender, even if regarded as a part of a donation, could be considered preferential treatment. Mayor Salmon advised that Council has concerns over three of the requests from Farm Bureau: free use of meeting space within the building for Farm Bureau Board meetings; free advertising and promotion on the audio-visual system throughout the venue; and once a month on a Farmer's Market Day, a Farm Bureau Agent will have space to set up a designated kiosk to promote business. Mayor Salmon asked for further explanation and detail of these items. In addition, the City Attorney must be given additional time to research the legal aspects oft the requests before any action is taken by Council. 4 City Council Work Session January 14, 2025 Consider Selection ofTen] Legislative Goal Statements (Exhibit] F) Council Member Linda Rhodes reviewed sixteen proposed legislative goal statements recommended by the North Carolina League of Municipalities (NCLM) Legislative Policy Committee recommended by the NCLM Bord of Directors. Mrs. Rhodes asked Councili to choose ten oft the sixteen they want the League to focus lobbying efforts on (urban VS. rural, etc.). Mayor Salmon suggested reviewing the list of statements and choose the statements that least apply to Sanford and our needs, which were: Items (I) reduce regulatory conflicts between state agencies that discourage voluntary consolidation, merger and interconnection of municipal utility systems; (J) Create an orphan road program whereby the state improves those roads to NC Department of Transportation standards before municipalities assume maintenance responsibilities; (L) Support technical assistance programs to assist municipalities with securing or maintaining grants or other necessary municipal resources; (M) address the needs of a changing municipal workforce through state assistance that supports employee retention, including training and recruitment; (N) update the annexation petition thresholds to make voluntary annexations easier to initiate; and (O) preserve authority for extraterritorial jurisdiction to ensure that growth is well-planned and investments by homeowners and business owners are protected. Mayor Salmon confirmed that Council chose the following ten goal statements: (A) Expand funding opportunities for disaster resiliency and recovery efforts; (B) Establish long-term funding streams that adequately address water, sewer, stormwater, transportation and other infrastructure needs; (C) Expand state transportation funding streams for construction and maintenance of municipal and state-owned secondary roads; (D) Increase funds to remediate contamination in local water supplies; (E) Expand incentives and funding for local economic development; (F) Create incentives to encourage the development of diverse housing options; (G) Provide resources to rehabilitate or purchase blighted properties; (H) Create incentives that ençourage and adequately fund regionalized water and sewer solutions; (K) Provide local revenue options beyond the property tax; and (P) Protect the ability of municipal elected officials, acting on behalf of local voters to determine election formats, districts and other election matters currently under their purview. Mayor Salmon asked for confirmation of Council Member Rhodes being a NCLM Legislative voting delegate; Council reached consensus that Council Member Rhodes would serve as our NCLM Legislative voting delegate. Other Business Assistant to the City Manager Holly Marosites asked Council to compete a survey regarding retreat dates. She informed Council that staff will do a social media post in honor of Dr. Martin Luther King, Jr., featuring quotes by him or inspired by him, and asked them to let her know if anyone has anything they would like to include. Closed Session Council Member Rhodes made a motion to go into closed session in accordance with N.C.G.S. 143.318(11)(a)(), to prevent the disclosure ofinformation that is privileged or confidential pursuant to the law; and (3), to consult with an attorney employed by the public body in order to preserve the attorney-client privilege. Seconded by Council Member Dabbs, the motion carried unanimously. Return to Regular Session and Adjournment Rhodes, the motion carried unanimously. Council Member Dabbs made a motion to adjourn the meeting. Seconded by Council Member 5 City Council Work Session January 14,2025 ALL EXHIBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE AND MADE A PART OFTHESE MINUTES. Respeptfully Submitted, Lss Attest: olupat