CITY COUNCIL MEMBERS PRESENT:
Mayor John M. "Jay" Donecker
Mayor Pro-Tem John Gentry
Councilman James K. Festerman
Councilman John Henderson
Councilman George O. Rucker
Councilman W. Clark Turner
Councilwoman Joan Zdanski
COUNCIL MEMBERS ABSENT:
None
CITY STAFF PRESENT:
D. Kelly Almond, City Manager
Angela G. Stadler, City Clerk
William F. McLeod Jr., City Attorney
Michael J. Pearce, Community Development Director
Donna Setliff, Assistant Community Development Director
Bernice Phillips, Finance Director
Mayor Donecker called the meeting to order at 3:00 P.M. The Mayor asked the Rev. Michelle Chappell, Pastor of First United Methodist Church, 1520 South Scales Street, Reidsville, to provide the invocation.
PLEDGE OF ALLEGIANCE.
The audience rose to give the Pledge of Allegiance to the flag of the United States of America.
PROCLAMATIONS:
CERTIFICATE RECOGNIZING FEBRUARY AS BLACK HISTORY MONTH.
Mayor Donecker invited Bishop Elijah Williams and Rev. Clarence Johnson to come and accept the proclamation recognizing February as Black History Month. (A COPY OF THE PROCLAMATION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.) Bishop Williams noted that several area churches would be holding Black History Month activities. He thanked the City Council for the proclamation.
CERTIFICATE RECOGNIZING ROCKINGHAM COUNTY STUDENT HEALTH CENTERS WEEK FEBRUARY 22-28, 2004.
The Mayor noted the addition to the agenda of a Certificate recognizing Rockingham County Student Health Centers Week. (A COPY OF THE PROCLAMATION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.) The Mayor read the proclamation, which was accepted by Cathy DeMason of Morehead Memorial Hospital and Reidsville High School nurse Julie McFall. Ms. DeMason thanked the Council for the recognition and noted that Governor Mike Easley had done a proclamation recognizing the importance of student health centers. She added that there would be an open house at the RHS Student Health Center on March 2 from 5-6:30 p.m.
APPROVAL OF THE CONSENT AGENDA.
The Mayor asked if any Council member wanted to pull any Consent Agenda item for individual consideration? Councilman Henderson asked that Consent Agenda Item No. 3, Approval of a Resolution of Intent to consider closing a portion of City Heights Loop Right-of-Way, be pulled.
Councilman Henderson then made the motion, seconded by Mayor Pro Tem Gentry and unanimously approved by Council in a 7-0 vote, to approve Consent Agenda Items No. 1, 2 and 4.
CONSENT AGENDA ITEM NO. 1 - APPROVAL OF THE JANUARY 14, 2004 REGULAR MEETING MINUTES.
With the approval of the Consent Agenda in a 7-0 vote, the Council approved the January 14, 2004 regular meeting minutes.
CONSENT AGENDA ITEM NO. 2 - APPROVAL OF BUDGET ORDINANCE AMENDMENT NO. 9, WHICH APPROPRIATES VEST GRANT FUNDS BY THE POLICE DEPARTMENT; AN INSURANCE CLAIM REFUND FOR THE ROOF AT THE REC DEPARTMENT; FUNDS FROM THE WATER RESERVE TO THE INDUSTRIAL PARK CAPITAL PROJECT FUND; FUNDS FROM THE WATER RESERVE FUND TO THE WATER FUND FOR THE ROBINHOOD/LINDEN ROAD PROJECT; AND FUNDS FROM THE WATER AND SEWER OPERATING FUNDS TO THE RESPECTIVE RESERVE FUNDS.
With the approval of the Consent Agenda in a 7-0 vote, the Council approved Budget Ordinance Amendment No. 9, which follows:
BUDGET ORDINANCE AMENDMENT NO. 9
WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget ordinance on June 11, 2003 which established revenues and authorized expenditures for fiscal year 2003-2004; and
WHEREAS, since the time of the adoption of said ordinance, it has become necessary to make certain changes in the City's budget to appropriate vest grant funds received by the Police Department; to appropriate an insurance claim refund for the roof at the Recreation Department; to appropriate funds from the Water Reserve to the Industrial Park Capital Project Fund; to appropriate funds from the Water Reserve Fund to the Water Fund for the Robinhood/ Linden Road project; and to appropriate funds from the Water and Sewer operating funds to the respective reserve funds :
NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the City of Reidsville that the budget ordinance as adopted on June 11, 2003 is hereby amended as follows;
Section 1. That revenue account no. 10-3431-8000, Department of Justice Grant, be increased by $2,450; that revenue account no. 11-3471-0000, Recreation Insurance Claim Refund, be increased by $26,500; that revenue account no. 41-3991-0000, Fund Balance Water Reserve Fund, be increased by $2,118.600; that revenue account number 41-3991-0000, Fund Balance Water Reserve Fund, be increased by $62,000; that revenue account no. 61-3987-0000, Transfer from the Water Reserve Fund, be increased by $62,000; that revenue account no. 61-3991-0000, Fund Balance Water Fund, be increased by $2,000,000; that revenue account no. 62-3991-0000, Fund Balance Sewer Fund, be increased by $1,500,000:
Section 2. That expense account no. 10-4312-2120, Uniforms, be increased by $2,450; that expense account no. 11-6121-5800, Capital Improvements, be increased by $26,500; that expense account no. 41-9810-3000, Transfer to Industrial Park Capital Project, be increased by $2,118,600; that expense account no. 41-7120-0000, transfer to the Water Fund, be increased by $62,000; that expense account no. 61-7121-5507, Capital Improvements Robinhood/ Linden Road, be increased by $62,000; that expense account no. 61-4120-1800, transfer to Water Reserve Fund, be increased by $2,000,000; that expense account no. 62-4120-1800, transfer to Sewer Reserve Fund, be increased by $1,500,000:
This the 11th day of February 2004.
CONSENT AGENDA ITEM NO. 4 - APPROVAL OF SHILOH UTILITIES' LOW BID OF $61,065.00 TO CONSTRUCT A SIX-INCH WATER LINE ON ROBINHOOD AND LINDEN ROADS.
With the approval of the Consent Agenda in a 7-0 vote, the Council approved Community Development Director Michael Pearce's recommendation that the City award low bidder Shiloh Industries the contract for construction of a six-inch water line on Robinhood and Linden Roads. Shiloh Industries' bid was $61,065 compared to the other two bidders, Carl Norris Construction at $85,316 and Breece Enterprises Inc. at $111,125. The petition was to construct the water line beginning at the end of a previously petitioned waterline on Robinhood Road, going to the intersection of Linden Road and westward along Linden for 315 feet. According to City Engineer Steve Moran, 21 parcels are on the petition with the water main being approximately 1,702 feet in length.
- End of Consent Agenda -
CONSENT AGENDA ITEM NO. 3 - APPROVAL OF A RESOLUTION OF INTENT TO CONSIDER CLOSING A PORTION OF CITY HEIGHTS LOOP RIGHT-OF-WAY, WHICH CALLS FOR A PUBLIC HEARING AT 3 P.M. ON WEDNESDAY, MARCH 10, 2004.
Councilman Henderson asked for more explanation about this Consent Agenda item.
Assistant Community Development Director Donna Setliff explained that Wal-Mart is planning to develop in that particular area and has submitted a site plan. According to the site plan, the building will be located exactly where this right-of-way is, she said. Wal-Mart is in the process of purchasing this property. The current property owners are applying to have a portion of the City Heights Loop to be closed, she said. The developers will be adding a turnaround at the other end, she explained.
Mayor Pro Tem Gentry then made the motion, seconded by Councilman Turner, to approve the Resolution of Intent. The motion passed with a 6-1 vote with Councilman Henderson in opposition.
The Resolution of Intent as approved follows:
RESOLUTION OF INTENT
A RESOLUTION DECLARING THE INTENTION OF THE CITY COUNCIL TO CONSIDER CLOSING A PORTION OF CITY HEIGHTS LOOP RIGHT-OF-WAY
WHEREAS, G.S. 160A-299 authorizes the City Council to close public streets and alleys; and
WHEREAS, the City Council considers it advisable to conduct a public hearing for the purpose of giving consideration to close a portion of City Heights Loop right-of-way.
NOW, THEREFORE, BE IT RESOLVED by the City Council that:
- A meeting will be held at 3:00 P.M. on Wednesday, March 10, 2004 in City
Hall Council Chambers, 230 West Morehead Street, to consider a resolution to close a portion of City Heights Loop right-of-way off of North Scales Street. The portion to be closed is approximately 1,076 feet long and 50 feet wide. The right-of-way is further described as:
- Beginning at an Existing Iron Pipe, the intersection of the eastern Right of Way of North Scales Street and the Eastern Right of Way of the northern end of City Heights Loop; thence with the eastern Right of Way of City Heights Loop the following four (4) Bearings and Distances:
- along a curve to the right having a radius of 238.66 feet, a chord direction of
South 39º12'50" East and a chord length of 115.18 feet to a Point
- along a curve to the right having a radius of 1768.18 feet, a chord direction of
South 17º55'42" East and a chord length of 450.70 feet to a Point
- South 10º36'22" East a distance of 441.41 feet to a Point
along a curve to the right having a radius of 770.54 feet, a chord direction of
South 06º23'18" East and a chord length of 113.34 feet to an Existing Iron Pipe thence crossing City Heights Loop South 87º10'21" West a distance of 50.00 feet to an Iron Pipe Set in the western Right of Way of City Heights Loop; thence with the eastern Right of Way of City Heights Loop the following four (4) Bearings and Distances:
- along a curve to the left having a radius of 720.54 feet, a chord direction of
North 06º21'56" West and a chord length of 106.56 feet to a Point
- North 10º36'22" West a distance of 441.41 feet to a Point
along a curve to the left having a radius of 1718.18 feet, a chord direction of
North 17º55'42" West and a chord length of 437.96 feet to a Point
- along a curve to the left having a radius of 188.66 feet, a chord direction of
North 32º13'36" West and a chord length of 45.83 feet to an Iron Pipe Set, the intersection of the northern end of the western Right of Way of City Heights Loop and the eastern Right of Way of Scales Street; thence with the eastern Right of Way of Scales Street, crossing City Heights Loop North 02º31'01" West a distance of 71.87 feet to an Existing Iron Pipe, the Point of Beginning, containing 1.239 acres more or less.
- The City Clerk is hereby directed to publish this Resolution of Intent once a week for four successive weeks in The Reidsville Review.
- The City Clerk is further directed to transmit by registered or certified mail to each owner of property abutting upon that portion of said street a copy of this Resolution of Intent.
- The City Clerk is further directed to cause adequate notices of this Resolution of Intent and the scheduled public hearing to be posted as required by G.S. 160A-299.
This the 11th day of February, 2004.
PUBLIC HEARINGS:
CONSIDERATION OF APPROVAL OF AN APPROPRIATION OF $132,891.00 FROM THE CITY'S GENERAL FUND TO AID AND ENCOURAGE THE EXPANSION OF METZELER AUTOMOTIVE PROFILE SYSTEMS.
Ms. Heather Leavitt of the Rockingham County Partnership for Economic & Tourism Development provided the staff report on this issue. She explained that the company had approached local officials several months ago about doing an expansion. She noted that the Reidsville plant was in competition with an Oklahoma plant to be awarded this expansion. Thanks to the County's economic development proposals, Metzeler decided to expand its Reidsville plant. According to the performance agreement, Metzeler promises to provide 142 new jobs by June 2005 and invest approximately $7.5 million locally by February 2005. Leavitt stated that, in return, they are asking the City to agree to pay three annual payments each of $15,938 for Phase I and three annual payments of $28,359 for Phase II or a total of $132,891. These would be divided up into three years of post-performance revenues, she explained.
Councilman Henderson asked if all 142 jobs will be here in Reidsville, to which Leavitt replied in the affirmative. Mayor Donecker noted that Metzeler was impressed with the quality and quantity of engineers available from nearby A&T University.
Councilman Festerman thanked Leavitt for all of her work on the project.
Mayor Donecker opened the public hearing at 3:10 p.m. by asking if there was anyone opposed to this agreement?
Mr. Richard Moore, a businessman at 217 Turner Drive, said he didn't want to be characterized as opposed to this, but he wanted to provide some information that he thought taxpayers would be interested in. He gave a history of the German company, which was founded in Munich in 1863, and the types of automotive rubber products it makes. Moore noted that this is a very successful company that has been around a while and is not an "upstart" company needing to "get over that hump or anything." Worldwide, the company employs 10,000 people in some 30 countries. The company makes between $900,000 million to $1 billion each year in annual sales, he said.
Last week, the County Commissioners approved giving the company $125,000 for this expansion and the City Council today was considering an additional $133,000 from taxpayers in Rockingham County, he said. He said he had serious doubts that a company that makes almost a billion dollars a year needs $250,000 from the Rockingham County taxpayers who are "struggling to keep their heads above water."
The Mayor asked if there was anyone who wished to speak in favor of this agreement? No one responded. The public hearing was closed at 3:13 p.m.
Councilman Festerman made the motion, seconded by Councilman Rucker, to approve as requested. The motion was unanimously approved in a 7-0 vote.
(A COPY OF THE PERFORMANCE AGREEMENT AS APPROVED IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)
CONSIDERATION OF AN ORDINANCE TO EXTEND THE CORPORATE LIMITS OF THE CITY OF REIDSVILLE ANNEXING 207 SAUNDERS AVENUE/5371 US 29 BUSINESS AS REQUESTED BY THE PROPERTY OWNER.
City Manager Almond reported that the owner of 207 Saunders Avenue/5371 US 29 Business had requested annexation because he needs to tap onto the City water and sewer system. According to City ordinance, if someone wants to do that they must apply for voluntary annexation into the City, he said. He said he understands that there is a house on this property that needs water service; therefore, the annexation is being requested.
Mayor Donecker opened the public hearing at 3:14 p.m. by asking if there was anyone opposed to this request?
Property owner Tom Seher, a businessman at 313 N.W. Market Street, said he did want the water tap but doesn't actually want to be incorporated into the City, if possible. He said he needed to tap onto City water because Love Oil Company had contaminated the well on the property. The only remedy that he had was to tap onto the City's water and sewer line, he said.
Mr. Seher said he had to make the annexation request in order to get the wheels in motion. However, Mr. Seher stressed that he wanted the water tap but doesn't want to be incorporated into the City. He said he'd rather pay a penalty, such as paying double for his water bill, and not be incorporated into the City.
After the Mayor asked if there was anyone who wished to speak in favor of this annexation, the public hearing was closed at 3:15 p.m.
Councilman Festerman made the motion to proceed with the annexation.
Councilman Henderson asked if this would be unprecedented? City Manager Almond explained that it would be unprecedented if the Council allowed Mr. Seher to tap on without being annexed. The City Manager noted that there were several nearby properties that had been annexed into the City to get water and sewer.
Councilman Henderson seconded the motion.
Councilman Festerman reiterated that failure to annex in the property would setting a precedent because this has always been done before water and sewer is extended. Mr. Seher said it was not correct that this would set a precedent. He asserted that there are people on Madison Street who have City water and have not been annexed into the City. The City Manager said that since 1989, no one should have tapped onto City water. If they were, the City needed to go back and check into that, he added.
Mayor Donecker told Mr. Seher that the "wheels are in motion," and that the property owner started it with the application to annex. Mr. Seher noted that now, because of this, he would be penalized. He wouldn't be able to shoot a gun on the property, etc. because Love Oil has contaminated the water, Mr. Seher said. Mayor Donecker said the situation could be discussed at another time, but it should have been discussed prior to the public hearing. Mr. Seher said he thought Mr. (Danny) Love had discussed it with Mr. Almond. City Manager Almond said they had discussed it.
The motion was then approved in a 7-0 vote.
The annexation ordinance as approved follows:
A04-01
AN ORDINANCE TO EXTEND THE CORPORATE LIMITS OF THE
CITY OF REIDSVILLE, NORTH CAROLINA
WHEREAS, the City Council has been petitioned under G.S. 160A-58.1 to annex the area described below; and
WHEREAS, the City Council has by resolution directed the City Clerk to investigate the sufficiency of the petition; and
WHEREAS, the City Clerk has certified the sufficiency of the petition and a public hearing on the question of this annexation was held at City Council Chambers, 230 West Morehead Street, at 3:00 P.M. on Wednesday, February 11, 2004, after due notice by publication on Wednesday, January 28, 2004; and
WHEREAS, the City Council finds that the petition meets the requirements of G.S. 160A-58.1(b), to wit;
- The nearest point on the proposed satellite corporate limits is not more than three (3) miles from the corporate limits of the City of Reidsville;
- No point on the proposed satellite corporate limits is closer to another municipality than to the City of Reidsville;
- The area described is so situated that the City of Reidsville will be able to provide the same services within the proposed satellite corporate limits that it provides within the primary corporate limits;
- No subdivision, as defined in G.S. 160A-376, will be fragmented by this proposed annexation;
- The area within the proposed satellite corporate limits when added to the area within all other satellite corporate limits, does not exceed ten percent (10%) of the area within the primary corporate limits of the City of Reidsville; and
WHEREAS, the City of Reidsville further finds that the petition has been signed by all the owners of real property in the area who are required by law to sign; and
WHEREAS, the City of Reidsville further finds that the petition is otherwise valid, and that the public health, safety and welfare of the City of Reidsville and of the area proposed for annexation will be best served by annexing the area described;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Reidsville, North Carolina that:
Section 1. By virtue of the authority granted by G.S. 160A-58.2, the following described non-contiguous territory is hereby annexed and made part of the City of Reidsville as of April 1, 2004:
Beginning at an iron stake, in line of Mrs. Fannie Saunders, a corner with A.C. Knight; thence in a westerly direction, 147 feet to an iron stake; thence northerly with A.C. Knight line 127 feet to an iron stake in a hollow; thence westerly with fence 189 feet to a stake; thence southerly with line of Moss, 289 feet to an iron stake near a large stump; thence in an easterly direction 327 feet to an iron stake in Mrs. Fannie Saunders' line; thence with Mrs. Saunders' line in a northerly direction 227 feet to an iron stake, a corner with A.C. Knight, the point of beginning (99-4-21.b.B) (The above lot or parcel of land being a part of the tract or parcel of land conveyed to Mrs. Fannie M. Finney, by F. J. Finney and wife, as described in deed of record in the Office of the Register of Deeds for Rockingham County, in Book 350, page 186.
Section 2. Upon and after April 1, 2004, the above described territory and its citizens and property shall be subject to all debts, laws, ordinances and regulations in force in the City of Reidsville and shall be entitled to the same privileges and benefits as other parts of the City of Reidsville. Said territory shall be subject to municipal taxes according to G.S. 160A-58.10.
Section 3. The Mayor of the City of Reidsville shall cause to be recorded in the office of the Register of Deeds of Rockingham County, and in the office of the Secretary of State at Raleigh, North Carolina, an accurate map of the annexed territory, described in Section 1 above, together with a duly certified copy of this ordinance. Such a map shall also be delivered to the Rockingham County Board of Elections, as required by G.S. 163-288.1.
Adopted this 11th day of February, 2004.
CONSIDERATION OF A STAFF REQUEST TO RENAME TECHNOLOGY DRIVE IN THE REIDSVILLE INDUSTRIAL PARK TO NORTH TECHNOLOGY DRIVE.
In making the staff report, Community Development Director Michael Pearce noted that when the industrial park was established, the main entrance into the park was named Technology Drive. When AFG Wipes came to town, staff had need for a new road on the south side across from Technology Drive. Staff would like to name that new road South Technology Drive so that people will know that this is all part of the Reidsville Industrial Park. Therefore, they need to rename Technology Drive on the north side of the industrial park to North Technology Drive. The only property owner, the Rockingham County Partnership for Economic & Tourism Development, has been notified, he said.
Mayor Donecker opened the public hearing at 3:19 p.m. by asking if there was anyone who wished to speak in opposition to the renaming? No one came forward. He asked if there was anyone who wished to speak positively on behalf of the renaming?
Mayor Pro Tem Gentry said he thought this was a "good move" and would be less confusing.
The public hearing was closed at 3:20 p.m.
Councilman Turner made the motion, seconded by Councilman Rucker and unanimously approved by Council in a 7-0 vote, to rename Technology Drive in the Reidsville Industrial Park to North Technology Drive.
- End of Public Hearings -
PRESENTATION OF THE AUDIT REPORT ENDING JUNE 30, 2003.
Mr. James Mitchell, a Senior Manager with Cherry, Bekaert & Holland, presented the City's Audit Report ending June 30, 2003. He thanked the Mayor and City Council, management and all the people in the City of Reidsville for the chance once again to audit the financial statements for the City of Reidsville for June 30, 2003. He said a special thank you to the accounting staff, in particular, Finance Director Bernice Phillips, for a job well done and having the books ready to be audited.
His firm audited the City's financial statements according to auditing standards generally accepted in the United States of America, he explained. Those standards require that the firm must plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. Mr. Mitchell said his accounting firm rendered four opinions for the City as part of this audit, dealing with the financial statements, the internal control of the financial reporting, compliance with each major federal program and compliance with each major State program. All of these were "unqualified" opinions, meaning they were clean opinions and the best the City can get, he said.
Mr. Mitchell referred to SAS 99, which he said was a reaction to the Worldcom, Enron and Tyco fraudulent-type activities. The standards board now says that when auditing entities, whether public, private, governmental or nonprofit, these SAS 99 standards will apply, he said. These standards mean the auditors have to go in and broaden their scope to try and detect fraudulent activities, he explained. Therefore, the auditors will have to spend approximately 25% more time next year on the audit compared to this year, Mr. Mitchell said.
First, the auditing team will have to have a "brainstorming" phase where they try to determine the types of ways this entity could actually commit each fraudulent activity, he said. He said, therefore, they have to try and determine how anyone in the organization could commit fraud. The team would then design tests to determine fraudulent activity and implement these tests. He said this would involve several inquiries involving all employees of the entity, including members of the City Council. At least one of you next year will be subject to the inquiries brought about by SAS 99, Mr. Mitchell informed Council. He said he wanted to prepare them for what will happen next year.
Another thing the auditors and City went through this year is GASB 34, Mr. Mitchell said. The standards board told them that the financial statements being reported by governmental entities aren't easy enough to read. Therefore, cities still have to do those same fund financial statements and, in addition, a new set of financial statements called the Government-wide Financial Statements. In the past, a modified accrual basis has been done, and now, those must be converted over to a full accrual basis, he explained. In addition, there is a third phase, Management Discussion and Analysis, where the management writes a document discussing the things happening within the City of Reidsville, highlights within the financial statements, etc.
Mr. Mitchell then went through a PowerPoint presentation of the audit that he provided to the Council members on paper. (THE PRESENTATION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.) Mr. Mitchell went through each page of the handout, highlighting various aspects of the audit.
Analysis of General Fund Balance - The auditor commented that the Local Government Commission (LGC) requires that a governmental entity have at least 8% of its overall budget's general expenditures in fund balance reserves. At less than 8%, municipalities run the risk of the LGC coming in and taking over the finance portion of the governmental entity, he said. The City of Reidsville is in good shape at 33.9%, he noted, saying that the City is about average with other cities of its size (based on Mr. Mitchell's survey of cities between 10,000-50,000 population).
General Fund Balance History - He pointed out that there was general downward progression from 2000-2002. The City addressed that in the past year by implementing the tax levy, he said. That helps contribute to the General Fund Balance starting to climb upward again, he added.
General Fund Investment Earnings - Mr. Mitchell described this as a "sad" page due to the lack of return on investments due to the interest rates.
Property Tax Levy - He noted that this levy had been rising.
General Fund Revenue Analysis - This pie chart shows where the General Fund revenues come from. The largest portion, approximately half, comes from the Ad Valorem Taxes, he pointed out. Another good portion comes from Other Taxes and Licenses, such as the sales tax. Unrestricted Intergovernmental Revenues includes franchise taxes while Restricted Intergovernmental Revenues are primarily from Powell Bill monies.
General Fund Revenues - Mr. Mitchell said the following three pages show General Fund revenues and how they stack up against what was budgeted as well as the previous two years. Revenues from the Local Option Sales Tax, Restricted Intergovernmental Revenues and Ad Valorem Taxes, had been slightly above budget for 2003, he noted. He said that is not always true throughout the General Fund Revenues section.
Analysis of General Fund Expenditures - Approximately 50% of these expenditures went to public safety costs, he noted. A large portion of that is from the salaries, he said. In transportation (16% of the expenditures), the majority of that is tied up in operations, Mr. Mitchell pointed out.
General Fund Expenditures 2001-2003 - In every instance, expenditures were lower than what had been budgeted, he said. The next three pages outline the elements of the pie chart, he explained. In every instance, the budgeted amount was higher than what was spent, the auditor noted. Mr. Mitchell added that a lot of good work is being done in the City to try and improve the overall financial stability of Reidsville.
Enterprise Funds (Water and Sewer Funds) - These comprise the next couple of pages, Mr. Mitchell explained. Operating revenues decreased "quite a bit" this past year, as well as operating expenses, he said. The operating income is actually a "negative" in 2003, he said.
Sewer Fund Comparative Income Statement Analysis - He noted that this is a different story than that found in the Water Fund. Operating revenues are up, and the overall operating income has gone up, he pointed out.
Enterprise Fund Investment Earnings - These earnings were down due to a sagging economy, Mr. Mitchell said. He said this includes the Water and Sewer Funds.
Water Fund Revenues 2001-2003 - He said this basically outlines what is included in these revenues, which includes water sales and "other" (water assessments, water taps, calibrations and cut-on fees). He also noted that water sales were down this past year.
Sewer Fund Revenues - This page shows what the direct sewer charges are, Mr. Mitchell explained. The "Other" includes Sewer Assessments, Surcharges, Taps and Fees.
Water Fund Expenditures - He then briefly touched on the Water Fund Expenditures, which includes Water Treatment & Distribution and "Other," including Administration and Finance. The operating loss in the Water Fund is basically due to the depreciation. With GASB 34, they ended up capitalizing quite a bit more items, including the dams and the lake, he said. Before depreciation is figured in, operating income is a much different story -- a much better story -- for the Water Fund, Mr. Mitchell pointed out
Sewer Fund Expenditures - Mr. Mitchell noted that these include Waste Collection & Treatment and "Other" (Administration and Finance).
Mr. Mitchell concluded his presentation by saying that his firm was looking forward, hopefully, to working with the City of Reidsville for several years to come.
The Mayor asked if there were any questions from Council for Mr. Mitchell? There were none.
CONSIDERATION OF AN ORDINANCE LOWERING THE SPEED LIMIT ON MCCOY ROAD FROM THE SOUTHERN CORPORATE LIMITS OF REIDSVILLE NORTHWARD TO US 29 BUSINESS (FREEWAY DRIVE) FROM 45 MPH TO 40 MPH.
City Manager Almond stated that the NC Department of Transportation is recommending for Council's consideration an ordinance lowering the speed limit on McCoy Road from the City limits (the southwestern end of the City) back into Freeway Drive from 45 mph to 40 mph. The City Manager noted that McCoy is a State-maintained road. Usually, the State won't change a speed limit within the City limits without the City Council's concurrence or at least he is unaware of any time that has been done without a concurring ordinance, he explained.
The City Manager stated that everything in the packet was what had been received from NCDOT. There was no further explanation, but just the request for the concurring ordinance since apparently NCDOT had recognized the "value" of lowering the speed limit there, he said.
Over the years, this subject has come to City Council several times, City Manager Almond pointed out. In the past, NCDOT would not reduce the speed limit, he said he recalled. He said he felt that McCoy Road resident Spencer Gwynn probably had something to do with this request. The City Manager said he and Mr. Gwynn had talked on several occasions about this problem.
Although this was not a public hearing, Mayor Donecker asked at 3:38 p.m. if there was anyone who wished to speak in opposition to this ordinance?
Ms. Dee Stanfield of 504 McCoy Road said this speed limit change had come up several years ago. At that time, a majority of the residents opposed it, and it wasn't pursued, she said. She stated that of the two people who had brought it up at that time, one has died and the other no longer lives here. She said she talked with a few neighbors, and of the sampling that she did, everyone was still opposed to the lowering of the speed limit. She said she checked today, and when one is driving towards town, there is a yellow caution sign stating its 35 mph in the curve. When a driver is leaving town, there is no caution sign, she said. She said she felt that another caution sign near where Mr. Gwynn lives would be helpful. She said she doesn't deny that the curves there are dangerous, but she said she didn't think they had that many accidents out there. Reference was made to an accident several years ago which involved a drunk driver. Ms. Stanfield said she thought the majority of people out there would still be opposed to a speed limit change.
Mr. Spencer Gwynn of 134 McCoy Road got up to speak. He said that when he bought his property, the speed limit there was 35 mph. Even though the curve was there because the speed limit was 35 mph, he said he "could live with it." When the Jehovah Witness church was built, the speed limit was still 35 mph, evidenced by the sign across from the church that was partially obscured by a poplar tree, he said. He said he didn't know whose idea it was to raise the speed limit. He talked of his children and grandchildren coming to see him and asking why they didn't lower the speed limit down to 35 mph?
Mr. Gwynn suggested someone from the City go and sit out there to watch those cars going 50-60 mph in front of his house in the curve. He said he has to stop in the driveway and try to hear people coming. He noted that the hill right before the curve makes it hard to see cars so he has to listen for them.
Mr. Gwynn indicated that he had come to City Hall and been told it was a County road. He talked with the County, and when that didn't work out, he talked with Representative Nelson Cole. He said he now understands that it is treated like a City road, but they can't change the speed limit. He said somebody needed to get something straight. Mr. Gwynn said he did not intend to let his children or himself get killed on that roadway. "That's a dangerous situation," he said.
Mr. Gwynn said somebody needed to get their act together. He said he was asking the City do something before he did something. He said that only a few people drive 45 mph coming around that curve. "Put yourself in my shoes," he said.
Mr. Gwynn also talked of his military service and the sacrifices he had made for this country. He said he wasn't going to take this.
Ms. Donna Setliff of 251 Pintail Drive, located off of McCoy Road, told Council she was speaking as a private citizen rather than as an employee of the City. She said she wished lowering the speed limit from 45 mph to 40 mph would solve Mr. Gwynn's problem, but she said she didn't believe it would. The individuals on that road are going 50-60 mph in a 45 mph zone, she said. Dropping it to 40 mph won't stop the situation that Mr. Gwynn is speaking of, she added. Once you hit outside the City limits, the speed limit goes to 55 mph, she noted. She said she agreed that she would have liked to have heard what the other residents along McCoy Road had to say, but she said she was opposed to dropping the speed limit.
City Manager Almond said that his office had also received a call from Ms. Faye Watson of 615 McCoy Road, who couldn't be at today's meeting but wished to express her opposition to the speed limit change.
Mr. Gwynn asserted that he would not have "wasted his money" buying his property if he'd known the speed limit was going to change from 35 mph. The City Manager asked Mr. Gwynn when the speed limit was changed? Mr. Gwynn did not know, saying "it had come on all of the sudden."
City Manager Almond said he wanted to clarify some information. He said he had talked with Mr. Gwynn on several occasions. The last time they had talked he had suggested that Mr. Gwynn speak with Representative Nelson Cole. He noted that roads are either State-maintained or City-maintained. The County does not maintain roads, he added.
Mr. Gwynn noted that he had been a resident of this City for a long time and had served on most of the boards and commissions. He said he didn't appreciate how he had been treated. Mr. Gwynn asked if someone has to get killed before someone will take action?
Mr. Gwynn also noted that there were other retired persons living near him, who needed to have the speed limit lowered.
Mayor Donecker made the motion, seconded by Councilman Festerman, to lower the speed limit to 40 mph starting at the intersection of Freeway Drive and McCoy Road to where Basham Road comes into McCoy Road, then from that point on, leave the speed limit at 45 mph.
Mayor Pro Tem Gentry also pointed out that a new church was being built in the area.
Councilman Rucker asked about whether flashing signs could be located in the area? City Manager Almond said he would ask NCDOT to do that. Mayor Donecker said one way to keep it safer would be to have more police patrols out there, along with the signage.
Councilman Festerman told Mr. Gwynn he didn't think NCDOT would lower the speed limit there to 35 mph. The Councilman said he didn't want this to give Mr. Gwynn a "false sense of security." He said he didn't think there would be an "appreciable difference" in front of his house by lowering the speed limit to 40 mph. Councilman Festerman said what they hoped to do was to have more enforcement out in that area. He said they were sympathetic to Mr. Gwynn's problem, but he said again that he didn't think Mr. Gwynn would see an appreciable difference in the speeding. However, Mr. Gwynn noted that the change is "a start."
Councilman Henderson stated that it is dangerous in that area. He said he was sorry that he had recommended to someone that they buy property out there.
It was decided that a "Dangerous Curve Ahead" sign should also be located there.
The motion was then unanimously approved by Council in a 7-0 vote.
PUBLIC COMMENTS ON NON-AGENDA ITEMS.
The Mayor then asked if there was anyone who wished to speak on non-agenda items?
Partnership Audit.
Mr. Richard Moore, a businessman at 217 Turner Drive, noted that it was mentioned in the City Manager's Report, but he asked if the City had received a copy of the audit report from the Partnership for Economic & Tourism Development? The City Manager said the City had received a copy.
Leaf Pickup.
Mr. Graydon Key of 1313 Woodland Avenue informed Council he was 93 years old and had lived in Reidsville for 66 years. He said he was embarrassed to have received a certified letter from the City saying he had left leaves in front of his house after the cut-off date for loose leaf pickup. He said the City newsletter had said January 9th was the last pickup day, and he had put the leaves on the street on January 4th. He said it was about equal to approximately four bags of leaves.
Mr. Key talked of his wife's embarrassment having to sign for the certified letter. He said he had lived in Reidsville since 1937 and had never broken a law. He noted that it took $2.67 to send the letter by certified mail when staff could have picked up the telephone and called him. He said within 15 minutes of receiving the letter, the leaves were off the street because he had raked the leaves back into his yard. He said the leaves had been in front of the vacant yard next to his house.
Mr. Key talked of calling the Public Works Department, asking to speak with the Sanitation Supervisor Pat Knowles. She wasn't there when he called, he said.
Mr. Key talked of employees getting raises or bonuses. He said they had to have consultants to tell them how to pay people. He said it was all about "greed."
Again, Mr. Key said he was hurt and his wife was hurt because they had tried to be good citizens of Reidsville for 66 years. He said his wife and son hadn't wanted him to come up here today. He said he wasn't in good health.
Mr. Key said he appreciated all that the City Council had done and that he thought they did a wonderful job. He said he appreciated the discount on the water bill for senior citizens.
Mayor Donecker told Mr. Key if he put his leaves at the curb, he guaranteed someone will come by and pick them up. Mr. Key said he wouldn't rake them up again this year but will wait until next year. The Mayor said the situation would be taken care of, and Mr. Key had the Council's apologies. Councilman Festerman said if it would make Mr. Key feel better, he was glad he came.
Mr. Key said he was glad he came. He said the people who work for Reidsville have good jobs. He said people shouldn't get bonuses for doing what they're supposed to do. People always want a raise, they're never satisfied, he said. Mr. Key said he thanked God every night for what He has done for him.
It will be taken care of, the Mayor said. Mr. Key reiterated that he wasn't mad, but that he was hurt.
BOARDS AND COMMISSIONS APPOINTMENTS:
REIDSVILLE HOUSING AUTHORITY (MAYORAL APPOINTMENT)
Mayor Donecker announced the appointment of Marilyn Saldana of 922 Third Avenue, Reidsville, to the New Reidsville Housing Authority.
He noted that there is another opening on the board if anyone knows of a potential applicant.
CITY MANAGER'S REPORT.
Change in County League Meeting Location.
Referring to his written report, City Manager Almond noted that the location of the County League of Local Governments meeting (Item No. 1) had been changed from Howard's Restaurant to the Rockingham County Agricultural Center in Wentworth.
Special Meeting needed to award bids for work at Industrial Park.
Regarding Item No. 2 (status of Industrial Park report), the City Manager stated that the Council may need to hold a special meeting to award bids for the water, sewer and roads on the south side of the Industrial Park. Bids will be opened on February 17. While the Council could wait until the March meeting, he said he knew they didn't want to do anything to delay AFG Wipes getting into the facility.
After checking schedules, the Council decided to hold a special meeting at 8 a.m. on Monday, February 23, 2004, in the first-floor conference room.
Approval of Resolution Authorizing City Manager to apply for Grant.
City Manager Almond asked City Council to approve a "Resolution Authorizing the Submittal of an Industrial Development Fund Application to the Commerce Finance Center, NC Department of Commerce." This resolution would allow the City Manager to apply for a grant for AFG Wipes. He read a copy of the Resolution. (THE RESOLUTION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)
Councilman Festerman made the motion, seconded by Councilwoman Zdanski and unanimously approved by Council in a 7-0 vote, to approve the Resolution.
Parking Lots Allotted to Developer of Elderly/Disabled Housing.
City Manager Almond explained that a developer is interested in renovating the old Bank of Reidsville building at the corner of Morehead and Scales Streets into apartments for elderly occupants. He said the problem that the City has run into with encouraging redevelopment, including second-floor development, in the downtown area is that the properties don't have parking areas. This housing is required to have parking, he said.
Therefore, the developer is requesting that the City lease 12 spaces in the City parking lot behind the building, City Manager Almond said. Six of these 12 spaces would need to be adjacent or located in the lot right behind the building. The other six parking spaces could be located in the "valley" of City parking located behind the Police Department/City Hall, he said. It has been asked to lease the spaces for $1 per space per month. He noted that doesn't seem like a lot of money, but there are plenty of parking spaces there. For the sake of getting the project done, the City Manager said he was recommending that Council allow the developer to lease the 12 spaces at $1 per space per month. The rent is controlled by the affordable levels in the County, he added. If the developers pay much more for the parking, they won't be able to do the project, he said, and keep it within the available budget.
Councilman Festerman questioned how many apartments are expected to go in there? Community Development Director Michael Pearce said he assumed 12 because zoning requirements requires one space per apartment.
Mayor Donecker said the only concern he had was that six people would have to park in the parking lot behind the Police Department and then walk up to the apartments. The City Manager stated that, as long as spaces are available, the residents could park in the adjacent parking lot because there is no parking enforcement there. Actually, all 12 might be able to park in the adjacent lot, he said.
Discussion ensued about the parking. If 12 spaces were marked for this facility, that might hurt patrons of the library, etc., it was pointed out. The Mayor questioned whether the other six spaces couldn't be in the parking lot near Wachovia. Councilman Festerman said the developers probably didn't need more than six spaces due to the age, etc. of the tenants. City Manager Almond said he thought the majority of the residents, who will be either elderly or disabled, will not have vehicles.
Councilman Turner made the motion, seconded by Mayor Pro Tem Gentry and unanimously approved by Council in a 7-0 vote, to lease the requested spaces at $1 per month per space.
Plans for Former ABC Store.
City Manager Almond said the ABC Board is going ahead with disposal of its former store on Scales Street. He explained that the board will have to follow the same upset bid procedures for surplus property that the City has to follow. The board has received an offer for the property, he said.
The Council took a five-minute break.
Skateboarding.
Harry Brown, Parks & Recreation Director, addressed Council about the meeting this past Monday of the Parks & Recreation Advisory Commission, which addressed the question of skateboarding. He noted that the Commission met with the skateboarding youth and their parents. He commented that the youth were very mannerable as well as knowledgeable about their sport. He said he was impressed with that.
Brown said the Commission shared with the skateboarders and their parents several skateboarding proposals, which included four different designs. The skateboarders picked the most expensive proposal, Brown pointed out. He said he then explained to them the budget process. He said he also told them that their input into this process was critical.
Brown said they also talked about potential locations for a skateboarding facility. One of the sites considered was Jaycee Park utilizing the area between the volleyball court and the parking lot off of Scales Street. Another area at the same park was considered near the basketball area, which would require that a wooded area be cleared out.
Lake Reidsville was discussed as a possible location, but most of the skateboarders and their parents felt the lake was "too far out," Brown said. They chose the first site that had been talked about as their favorite choice, he added.
Councilman Festerman asked if they had looked at the old softball field at Jaycee Park? Brown said he was concerned with that location because of safety reasons since the entrance there is so narrow.
One suggestion came up after the meeting; therefore, they weren't able to discuss it as a Commission, Brown explained. One site with a lot of potential was the Farmers Market parking lot on Settle Street, Brown said. The skateboarders could utilize the back side of that lot, he said. Brown noted that about 8-9 years ago, a skateboarding event was held in that parking lot that was attended by approximately 60 kids.
Councilman Turner questioned what that property backed up to, and this was discussed briefly.
Councilwoman Zdanski asked for clarification whether the Settle Street parking lot was to be a temporary or permanent location? City Manager Almond said he thought it was temporary until Council could look at some cost estimates of creating a skateboard area. That would be considered as part of the budget process in the coming months. Until that time, the City could rope the Settle Street area off for skateboarding and post the area with the necessary signage, he said. The skateboarders would be able to leave their personal equipment out there. The City Manager said that skateboarding would be allowed there until the City Council could make budgetary decisions.
Councilman Festerman asked if this was something that would be done right away? City Manager Almond said as soon as the necessary signage, etc. could be erected. It was noted that the adjacent property owners should be notified. The City Manager said that, of all the City-owned property available, this site would be the best to get something temporary done pretty quickly.
Councilman Festerman stated that some type of hours would need to be set. They wouldn't want skateboarders out there late at night, he noted.
The City would be responsible for roping off the area or providing temporary fencing as well as posting the signs, City Manager Almond explained. Again, it was noted that the skateboarders could leave their equipment on the site, but it was stated that parents would need to be willing to sign a waiver. Ms. Carolyn Combs, grandmother to one of the skateboarders, said she was fine with that.
Mayor Pro Tem Gentry said the area would need to tie in the usage depending on the Farmers Market hours. Councilman Rucker said staff should first see how much of the parking lot will be needed for skateboarding. The Mayor Pro Tem stated that the parking lot can be filled with cars sometimes on market days. Councilman Rucker stated that people in the City pay taxes for such recreational pursuits. Mayor Pro Tem Gentry said the City needed to set times. Councilman Rucker said they would just have to share the space. Mayor Pro Tem Gentry said he would like for some type of paper to be signed.
The Mayor asked for a motion so that the discussion could continue.
Councilman Festerman made the motion, seconded by Councilman Turner, to approve staff's recommendation that a temporary skateboarding park be established in the Farmers Market location off of Settle Street.
Councilman Festerman said he'd like to see some monitoring of the area by recreational staff. Brown said he didn't plan to put a person out there, but that there would be "spot checks" along with the proper signing of application papers and, perhaps, some type of "tag" system. The Mayor said that the first day it is opened, perhaps a staff person could be on hand for the first hour or so with the necessary forms so that the people don't have to go to the Recreation Department.
Councilman Festerman noted that they might be creating a lot of work for recreation staff, saying it would take up some of their time with monitoring. He noted that some of the skateboarders might complain about the others if they're not doing what they should. Councilman Henderson asked if the liability issue would be solved by the posting? City Manager Almond replied in the affirmative.
City Manager Almond noted that Brown has spent some time talking with the Risk Management Division of the North Carolina League of Municipalities. Brown said that other cities had told him that the City Council needs to adopt an ordinance saying that helmets and appropriate equipment need to be worn. City Manager Almond told Council staff would have an ordinance crafted for the special meeting on February 23.
There was a brief discussion about the Kernersville skateboarding park. Brown said Kernersville was in the beginning stages of working on that park. He had talked with Cary about some rules and regulations for its park. He had also talked with Madison-Mayodan, which is proposing a new park. Councilwoman Zdanski noted that the Madison-Mayodan Recreation Department had received a grant for that park. Brown said Madison-Mayodan had received a $10,000 grant and would be utilizing existing tennis courts.
The motion was then unanimously approved.
COUNCIL MEMBERS' REPORTS.
Mayor Pro Tem Gentry - The Mayor Pro Tem said he had received several compliments about how well the street crews had done getting up the snow so quickly from City roadways.
He said he had nothing to report from Planning Board other than the cul-de-sac planned on City Heights Loop with the partial closing of that roadway.
Veterans Park $1,000 Contribution Approved.
The Mayor Pro Tem said he would like to make a motion in memory of his two first cousins who were killed in World War II, Frank and John Grogan, and his first cousin, Birdwell Gentry, who was wounded, and 12 of his shipmates who were lost one night in September, 1957, in the North Sea.
Mayor Pro Tem Gentry made the motion, seconded by Councilman Henderson, to approve a $1,000 donation to the Rockingham County Veterans Park in honor of all veterans with the monies coming from the General Fund Contingency Fund.
Councilman Turner asked whether this park will be permanently maintained? He said if the park is not maintained, it is a disservice to those veterans. He stressed that the park should be permanently maintained.
The motion was then unanimously approved in a 7-0 vote.
Councilman Turner - The Councilman noted that the Downtown Corporation meeting had been delayed from the previous Tuesday due to the snow. He noted that there had been some concern about some tiles falling off the old Upper Deck building onto Scales Street. He added that they had also requested that the downtown parking lot behind the Belvedere be scraped during snows.
Councilman Henderson - The Councilman stated that the Human Relations Commission did not meet in January due to the snow.
He noted that he attended the Chamber Open House held at the new Goodwill Store on February 5 as well as the ribbon cutting at Goodwill on February 6.
Councilwoman Zdanski - The Councilwoman stated that she was unable to attend the Historic Preservation Commission meeting.
Councilman Rucker - The Councilman thanked Mrs. Carolyn Combs for her time on the skateboarding issue. Mrs. Combs, who was in the audience, thanked everyone on the City Council on behalf of the skateboarders and their parents. She said they appreciated the Council's acting on it.
Councilman Festerman - The Councilman asked the City Manager if he had been able to follow-up on the dog situation from last month's meeting? The City Manager replied in the affirmative, saying he had put a new policy in place and sent Ms. Grainger a letter.
The Councilman said he would be attending a joint forum in Greensboro this Friday as well as the Council of Governments meeting next Wednesday.
The Councilman said he would like for the Council to go into closed session to discuss a personnel matter immediately following Council reports.
Mayor Donecker - No report.
The Mayor then asked if he had a motion to go into closed session pursuant to G.S. 143-318.11 (a) (6)? Councilman Henderson made the motion, seconded by Councilman Turner and unanimously approved by Council in a 7-0 vote, to go into closed session.
RETURN FROM CLOSED SESSION.
Upon the Council's return from closed session, Councilman Festerman made the motion, seconded by Mayor Pro Tem Gentry and unanimously approved by Council in a 7-0 vote, to adjourn at approximately 5:23 p.m.
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