MIINUTES OF MEETING OF THE CITY COUNCIL SANFORD, NORTH CAROLINA The City Council met at the Sanford Municipal Center, 225 E. Weatherspoon Street, on Tuesday, February 4, 2025, at 5:00 p.m., in Council Chambers. The following people were present: Mayor Rebecca Wyhof Salmon Mayor Pro Tem Mark Akinosho Council Member Byron Buckels Council Member Jean Dabbs Council Member Walter Ferguson Council Member Linda Rhodes Council Member Charles Taylor Council Member James Williams City Manager Hal Hegwer City Attorney Susan Patterson City Clerk Bonnie Bryant Deputy City Clerk Vicki Cannady CALLTO ORDER Mayor Salmon called the meeting to order. Council Member Buckels led the invocation and the Pledge of Allegiance was recited. PUBLIC COMMENT DSI (Downtown Sanford, Inc.) Director Kelli Laudate, 1806 Crepe Myrtle Drive, Sanford, North Carolina, gave an update of the success of the recent Inaugural First Health Fitness Fest. (Exhibit A) APPROVAL OF AGENDA Mayor Salmon noted that Council Members would find a revised Resolution in Support of the Temporary Closure of the Cole Street City Parking Lot for the Blues, Brews and BBQ Event at their seats. Council Member Rhodes made a motion to approve the agenda. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. CONSENT AGENDA Release of Closed Session Minutes Dated) June 16. 2015 (filed in Minute Book #2) Release of Closed Session Minutes Dated January 19. 2016- - Item #1 (filed in Minute Book #2) Release of Closed Session Minutes Dated June 21. 2016 -Item #6 (filed in Minute Book #2) Release of Closed Session Minutes Dated March 5. 2024-Item #3 (filed in Minute Book #2) Release of Closed Session Minutes Dated April 9. 2024-Item #2 (filed in] Minute Book #2) Release of Closed Session Minutes Dated June 18. 2024 (filed in Minute Book #2) Release of Closed Session Minutes Dated July 2. 2024 (filed in Minute Book #2) Release of Closed Session Minutes Dated July 16. 2024 (filed in Minute Book #2) City Council Meeting Minutes Dated November 19, 2024 (filed in Minute Book #125) City Council Meeting Minutes Dated December 3. 2024 (filed in Minute Book #125) 1 Resolution Directing the Clerk to Investigate a Petition for Non-Contiguous Annexation Under G.S. 160A-58. 1(Exhibit K) Council Member Rhodes made a motion to approve the Resolution Directing the Clerk to Investigate a Petition for Non-Contiguous Annexation under G.S. 160A-58.1. Seconded by Council Member Buckels, the motion carried unanimously. Receive Certificate of Sufficiency (Exhibit L) City Clerk Bonnie Bryant confirmed that the Certificate was sufficient. Resolution Fixing Date of Public Hearing on Question ofNon-Contiguous Annexation Pursuant to G.S. 160A-58.1 (Exhibit M) Council Member Ferguson made a motion to approve the Resolution Fixing the Date of the Public Hearing on the Question of Non-Contiguous Annexation Pursuant to G.S. 160A-58.1. Seconded by Council Member Dabbs, the motion carried unanimously. NEW BUSINESS Presentation by Auditors Joyce and Company on Fiscal Year Ending June 30, 2024 (Exhibit N.O) Assistant City Manager Beth Kelly introduced Keith Joyce with Joyce and Company who presented the City ofSanford 2024 Audited Financial Statements and reviewed highlights from the audit. The General Fund balance hasi increased over the last fewyears to approximately $39.8 million as ofJune 30, 2024. The available Fund Balance increased $647,799 from the previous year. The available fund balance is defined by the Local Government Commission (LGC) and is calculated by the Initial fund balance, less non-spendable and stabilization by the State statute formula. This calculation is also used as the basis for comparing the City of Sanford to other municipalities. The State requires the available fund balance, as a percent of expenditures and transfers out of the general fund, to be 25 percent or greater; the City's percentage at the end of 2024 is 53 percent. Mr. Joyce reviewed the "Governance Letter", (Exhibit 0), which is a required communication directly from the audit firm to City Council, detailing any issues experienced in the audit and reported that there were no problems found. Resolution in Support of the Temporary Closure ofTrade Street for "Buskin' in the Boro" Event (Exhibit P) Parks Administrator Caroline Jeffries reviewed the resolution and explained that this event is planned for March 29, 2025, from 6:00 a.m. to 6:00 p.m. Council Member Rhodes made a motion to approve the Resolution in Support of the Temporary Closure of Trade Street for "Buskin in the 'Boro' 3 Event. Seconded by Council Member Dabbs, the motion carried unanimously. Resolution in Support of the Temporary Closure of the Rear Half of the Cole Street City Parking Lot for the Blues. Brews and BBQ Event (Exhibit O) Parks Administrator Caroline Jeffries reviewed the resolution, noting that the revised request is for only the rear half of the parking lot for this event which is planned for April 11, 2025, from 7:00 a.m. through April 12, 2025, at 10:00 p.m. 3 Council Member Dabbs made a motion to approve the Resolution in Support of the Temporary Closure of TradeStreet for "Blues, Brews & BBQ"Event. Seconded by Council Member Buckels, the motion carried unanimously. Resolution in Support of the Temporary Closure of the Cole Street Parking Lot for the May Indie Fest (Exhibit R) Parks Administrator Caroline Jeffries reviewed the resolution for the May Indie Fest event planned for May 23, 2025, at 7:00 a.m. through May 24, 2025, at 11:59 p.m. Council Member Ferguson made a motion to approve the Resolution in Support of the Temporary Closure ofthe Cole Street Parking Lot for the May Indie Fest. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. Resolution in Support oft the Temporary Closure of the Cole Street Parking Lot for the September Indie Fest (Exhibit S) Parks Administrator Caroline Jeffries reviewed the attached resolution for the event planned for September 26, 2025, at 7:00 a.m. through September 27, 2025, at 1:59 p.m. Council Member Rhodes made a motion to approve the Resolution in Support ofthe Temporary Closure of Cole Street Parking Lot for the September Indie Fest. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. ResolutionAccepting Funding OfferforLead: Servicel Linel Replacement Pogm.fitshupAratalt T) Assistant City Manager Beth Kelly explained that this item confirms the City's acceptance of the funding offer of $499,380, for the Pittsboro Area Lead Service Line Replacement Program, which is a principal-forgiveness loan from the North Carolina Department of Environmental Quality. Council Member Dabbs made a motion to approve the Resolution Accepting Funding Offer for Lead Service Line Replacement Program - Pittsboro Area. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. Capital Project Ordinance Amendment - Lead Service Line Inventory Project - Pittsboro (Exhibit U) Assistant City Manager Beth Kelly explained that this item establishes the project described as the Pittsboro Lead Service Line Inventory Project. Mayor Pro Tem Akinosho made a motion to approve the Capital Project Ordinance Amendment - Lead Service Line Inventory Project - Pittsboro. Seconded by Council Member Rhodes, the motion carried unanimously. Memorandum of Understanding Between North Carolina Department of Commerce and City of Sanford (Exhibit V) Assistant City Manager Beth Kelly explained that this Memorandum ofUnderstanding is not for new funding but it replaces funds already granted by Golden Leaf. Council Member Dabbs made a motion to approve the Memorandum ofUnderstanding between the North Carolina Department ofCommerce and the City ofSanford. Seconded by Council Member 4 Buckels, the motion carried unanimously. Ordinance Amending the Annual Operating Budget of the City of Sanford FY 2024-2025 - Utility Business (Exhibit W) Assistant City Manager Beth Kelly explained that this action will appropriate $143,873 to the Utility Business Department for merger costs related to the Chatham County and Siler City utility mergers to be effective July 1, 2025, which will be reimbursed after the merger. Council Member Rhodes made a motion to approve the Ordinance Amending the. Annual Operating Budget oft the City of Sanford FY 2024-2025 - Utility Business. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. Resolution Authorizing Advertisement ofan Offer to Purchase a Vacant Lot at OHooker Street Having PINI Number 9642-54-5460-00 (Exhibit X) Community Development Administrator Karen Kennedy explained that an offer of $3,000 has been received from Cora McIver to purchase this property which has served as a passive park in the neighborhood and as the site of many National Night Out events. Brick Capital Community Development Corporation is willing to release the property from its lease. She noted that Cora McIver has previously purchased other nearby properties. Ifthe offer is approved, it will be advertised SO that upset bids can be submitted. There was discussion regarding the future use of the property and it was noted that Ms. Mclver has maintained this property and been involved in the neighborhood for many years. Ms. Kennedy noted that the property is subject to restrictive covenants for the next 15 years and planning and zoning approval would be needed for other proposed uses of the property. Council Member Ferguson made a motion to approve the Resolution Authorizing Advertisement of an Offer to Purchase a Vacant Lot at O Hooker Street having PIN Number 9642-54-5460-00. Seconded by Council Member Williams, the motion carried unanimously. Ordinance Amending Section 38-103 of the Code of Ordinances oft the City of Sanford to Extend the Leak Adjustment Ordinance (Exhibit Y) Assistant City Manager Beth Kelly explained that staff has begun analyzing ordinances and policies of the Pittsboro Service Area and the Leak Adjustment Policy has been addressed because Pittsboro's current policy is different from the City ofSanford's policy. The proposed ordinance would allow the City of Sanford to use its policy to any service-based TriRiver Water customer. Council Member Dabbs made a motion to approve the Ordinance Amending Section 38-103 of the Code ofOrdinances ofthe City ofSanford to Extend the Leak Adjustment Ordinance. Seconded by Council Member Buckets, the motion carried unanimously. Resolution to Approve Debt Issuance for Pittsboro Force Main Project (Exhibit Z) Assistant City Manager Beth Kelly explained that this resolution would authorize borrowing funds for Series 2025A Bonds to complete the Pittsboro force main project. This would also allow the City ofSanford to borrow funds to satisfy some outstanding loans related tothe Siler City merger. Should the Siler City Merger be delayed, those funds would be held in escrow until such time as the merger is in effect. The amount of'"not to exceed. $25 million' " was used in this resolution because staff did not. have the exact bids at the time this resolution was drafted; however, the estimated amount of the bids is $17,350,000 for the Pittsboro Force Main and Lift Station Project, as well as the payoff on the smaller 5 Siler City Loans. For clarification, Mrs. Kelly explained that thet total project ofthe Pittsboro Force Main and LiftStation is$106.6 million, which will be made upofthree different sources offunding; the State of North Carolina has awarded $37.1 million in SRF loans (ofwhich $100,000 is forgiven and will be 0 percent interest); a $55.1 million grant from the Department of Commerce (originally received from Golden Leaf and will be swapped out); and, 2025A Series Bonds will be issued for the remaining $13.3 million. Council Member Rhodes made a motion to approve the Resolution to Approve Debt Issuance for the Pittsboro Force Main Project. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. CASES FORI PUBLIC: HEARINGS Public Hearing on Municipal Services District (MSD) Expenditures (Exhibit A-1) Mayor Salmon opened the public hearing. Assistant City Manager Beth Kelly reviewed the expenditures listed in the document included within the agenda packet. With no one speaking in favor or opposition, Mayor Salmon closed the public hearing. Council Member Rhodes made a motion to approve the Municipal Service District (MSD) expenditures. Seconded by Mayor Pro Tem Akinosho, the motion carried unanimously. DECISIONS ON PUBLIC HEARINGS There were on decisions on public hearings. OTHER BUSINESS There was no other business. CLOSED SESSION Council Member Buckets made a motion to go into closed session in accordance with N.C.GS.143318.110,0. to prevent the disclosure of information that is privileged or confidential pursuant to the law ofthe State. Seconded by Council Member Ferguson, the motion carried unanimously. RETURN TO REGULAR: SESSION AND ADJOURNMENT Council Member Rhodes made a motion to adjourn the meeting. Seconded by Council Member Buckels, the motion carried unanimously. ALL EXHIBITS CONTAINED HEREIN ARE HEREBY INCORPORATED BY REFERENCE AND MADE A PART OF THESE MINUTES. Respectfully Submitted, Sbuual - / / REBECCA WYHOF SALMON, MAYOR Attest: Bonmie & 73 uuyan BONNIE BRYANT, CITY CLERK 6