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 #9; #9; Development Director

Terri J. Stamey, Assistant City Manager

Mayor Donecker called the meeting to order at 3:00 P.M. In the absence of the Rev. David Anderson, Mayor Pro Tem Gentry provided the invocation.

PLEDGE OF ALLEGIANCE.

The audience then rose to give the Pledge of Allegiance to the flag of the United States of America.

PROCLAMATIONS:

CERTIFICATE RECOGNIZING THE STATEWIDE 'LITTER SWEEP' SPRING ROADSIDE CLEANUP CAMPAIGN APRIL 21-MAY 5, 2003.

Mayor Donecker then read the "Litter Sweep" proclamation to those present. (A COPY OF THE PROCLAMATION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)

APPROVAL OF THE CONSENT AGENDA.

The Mayor asked if Council members had any Consent Agenda items they wanted to be pulled for individual consideration? None were offered.

Mayor Pro Tem Gentry then made the motion, seconded by Councilman Turner and unanimously approved by Council, to approve the Consent Agenda.

CONSENT AGENDA ITEM NO. 1 - APPROVAL OF THE MARCH 12, 2003 REGULAR MEETING MINUTES.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved the March 12, 2003 regular meeting minutes.

CONSENT AGENDA ITEM NO. 2- APPROVAL OF A LOCAL GOVERNMENTAL RESOLUTION FROM THE NC GOVERNOR'S HIGHWAY SAFETY PROGRAM FOR $11,780 IN FEDERAL FUNDING FOR DWI-RELATED EQUIPMENT.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved a Local Governmental Resolution (Form GHSP-06-A). (A COPY OF THIS RESOLUTION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.) In his memo dated March 31, 2003 to the City Manager, Police Chief Edd Hunt stated that his department had submitted a grant proposal to the Governor's Highway Safety Program to fund several Traffic Safety Equipment items. The department was notified on March 10, 2003, that it had received approximately $11,780 in funding to purchase the following: one utility trailer, one portable generator (700 W), four portable road sign sets, four portable flood lights, six signal light kits and 60 36-inch traffic cones. In order to get the funding, which included no matching funds from the City, the Local Governmental Resolution had to be approved by Council, verifying its approval of the grant.

CONSENT AGENDA ITEM NO. 3 - APPROVAL OF AMENDMENTS TO THE CODE OF ORDINANCES RELATED TO THE POLICE FIRING RANGE OFF ROCKY FORD ROAD.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved two amendments to the City's Code of Ordinances. The purpose of these amendments was to correct a problem that occurred when the City's police training grounds was annexed into the City.

The two ordinance amendments as approved by Council include:

AN ORDINANCE AMENDING CHAPTER 11 OF THE REIDSVILLE CODE OF ORDINANCES

BE IT ORDAINED:

That Section 11-23 of the Reidsville Code of Ordinances is rewritten to include the following addition:

Section 11-23. Weapons prohibited on city property.

(b) (6) Persons discharging weapons under the supervision of sworn law enforcement officers at the City's Police Firing Range.

This the 7th day of April, 2003.

AN ORDINANCE AMENDING CHAPTER 11 OF THE REIDSVILLE CODE OF ORDINANCES

BE IT ORDAINED:

That Section 11-12 of the Reidsville Code of Ordinances is rewritten to include the following amendment:

Section 11-12. Discharge of weapons - Generally.

1. It shall be unlawful to fire a gun, pistol, air rifle, or other firearm, or shoot any bow and arrow or any kind of a spring gun, bean shooter or slingshot within the city limits.
2. Subsection (a) does not apply:
   1. In licensed shooting galleries.
   2. To the discharge of duty by law enforcement officers.
   3. To firearms training and re-qualification of law enforcement officers or activities overseen by certified firearms instructors at the city-owned Police Firing Range.

This the 7th day of April, 2003.

CONSENT AGENDA ITEM NO. 4 - APPROVAL OF THE 2003 AUDIT CONTRACT WITH CHERRY, BEKAERT & HOLLAND.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved continuing to use Cherry, Bekaert & Holland for the June 30, 2003 audit at the same price as last year, $19,250. (A COPY OF THE AUDIT CONTRACT FOR 2003 IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)

CONSENT AGENDA ITEM NO. 5 - APPROVAL OF BUDGET ORDINANCE AMENDMENT NO. 12, WHICH APPROPRIATES EXPLORER FUNDS AND CONTRIBUTIONS RECEIVED IN THE POLICE DEPARTMENT.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved Budget Ordinance Amendment No. 12, which is as follows:

BUDGET ORDINANCE AMENDMENT NO. 12

WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget ordinance on June 12, 2002 which established revenues and authorized expenditures for fiscal year 2002-2003; 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 Explorer Funds and contributions received in the Police Department;

NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the City of Reidsville that the budget ordinance as adopted on June 12, 2002 is hereby amended as follows:

Section 1. That revenue account no. 10-3411-0000, Explorer Funds, be increased by $492; that revenue account no. 10-3431-7000, Contributions Police Department, be increased by $150;

Section 2. That expense account no. 10-4314-2350, Police Explorer Funds, be increased by $492; that expense account no. 10-4312-2700, K-9 equipment and supplies, be increased by $150:

This the 7th day of April, 2003.

CONSENT AGENDA ITEM NO. 6 - APPROVAL OF A PRELIMINARY ASSESSMENT RESOLUTION CALLING FOR A PUBLIC HEARING FOR MAY 13, 2003 ON EXTENDING THE CITY WATER SYSTEM BY CONSTRUCTING APPROXIMATELY 1,561 FEET OF 6" WATERLINE AND APPURTENANCES BEGINNING AT THE END OF A PREVIOUSLY PETITIONED WATERLINE, SOUTH EDGE OF PARCEL NO. 7993-19-52-4049 (702 ROBINHOOD ROAD), HENCEFORTH SOUTH ALONG ROBINHOOD ROAD TO THE INTERSECTION WITH LINDEN ROAD, THEN WEST ALONG LINDEN ROAD, APPROXIMATELY 315 FEET TO THE WEST EDGE OF PARCEL NO. 7993-19-50-3680.

With the approval of the Consent Agenda in a 7-0 vote, the Council approved the following Preliminary Assessment Resolution:

PRELIMINARY ASSESSMENT RESOLUTION

WHEREAS, the City Council of the City of Reidsville has determined that it may be in the best interest of the City to extend its water system and that in order to provide such extensions it would be necessary to assess part of the cost thereof upon the real property benefited thereby;

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Reidsville, North Carolina, that:

1. 1. It is intended that the water system of the City of Reidsville be extended by constructing a six-inch waterline and appurtenances beginning at the end of a previously petitioned waterline (Petition Date 6/20/02) south edge of Parcel No. 7993-19-52-4049 (702 Robinhood Road) henceforth south along Robinhood Road to the intersection with Linden Road, then west along Linden Road approximately 315 feet to the west edge of Parcel No. 7993-19-50-3680 pursuant to an Ordinance Amending Chapter 10 of the Reidsville City Code to Adopt a Water and Sewer Extension Policy, Section 10-101. (Note: Petition bore the signatures of 71% of the property owners and 69% of the property footage signed.)
2. Said project shall be assessed at the pre-determined rate of $9.00 per foot.
3. The assessments herein provided for shall be payable in cash, or if any property owner shall so elect, he shall have the option of paying an assessment in five (5) equal annual installments, said installments to bear interest at the rate of 8% per annum.
4. A public hearing on all matters covered by this resolution will be held on Tuesday, May 13, 2003, beginning at 3:00 P.M., in the City Hall Council Chambers, 230 West Morehead Street, Reidsville.
   

Adopted this 7th day of April, 2003.

CONSENT AGENDA ITEM NO. 7 - APPROVAL OF USE OF BEA PENN MOORE TRUST FUND FOR CAPITAL IMPROVEMENTS AT THE PENN HOUSE.

With the approval of the Consent Agenda in a 7-0 vote, the Council agreed to use $15,700 from the Bea Penn Moore Trust funds to cover some capital needs at the house. Items to be covered include trimming of the trees, an arbor to go over the sidewalk, two Nelly Steven hollies, roof repairs and carpet for the greenhouse area.

Budget Ordinance Amendment No. 13, which covers these items as well as the Governor's Highway Safety Grant for the Police Department, is as follows:

BUDGET ORDINANCE AMENDMENT NO. 13

WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget ordinance on June 12, 2002 which established revenues and authorized expenditures for fiscal year 2002-2003; 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 received by the Police Department; and to appropriate Bea Penn Moore endowment funds for maintenance repairs at the Penn House:

NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the City of Reidsville that the budget ordinance as adopted on June 12, 2002 is hereby amended as follows;

Section 1. That revenue account no. 10-3431-9005, Governor’s Highway Safety Grant, be increased by $11,780; that revenue account no.10-3834-8510, Bea Penn Moore Will Endowment, be increased by $15,700;

Section 2. That expense account no. 10-4310-5510, Governor’s Highway Safety Grant Equipment, be increased by $11,780; that expense account no. 10-6140-3510, Maintenance and Repair Penn House (City Responsibility), be increased by $15,700:

This the 7th day of April 2003.

- End of Consent Agenda -

PUBLIC HEARINGS:

CONSIDERATION OF A REZONING REQUEST FOR 620 NORTH SCALES STREET FROM RESIDENTIAL-6 TO NEIGHBORHOOD BUSINESS. (SP2003-4)

In making the staff report, Assistant Community Development Director Donna Setliff stated that the applicants, American Partners Federal Credit Union, want to rezone a rear portion of the property located at 620 North Scales Street from Residential-6 to Neighborhood Business (NB). This property is split-zoned, she explained, noting that the front portion of the property, which is known as the old Trent's Music Store, is zoned NB. The applicant owns the adjacent property at 618 N. Scales, which houses the credit union. The owner plans to combine the two parcels and connect the two buildings into one, Setliff explained. Therefore, they will need the area zoned R-6 for parking, she noted.

The Planning Board and staff both recommended approval of the rezoning request.

Mayor Pro Tem Gentry asked why isn't the whole area included in the zoning request? He was referring to a small triangle adjacent to the property that is still zoned R-6. He said it seemed foolish not to go ahead and change the zoning there. What else could it be used for? he asked. Setliff explained that this request was generated by the applicant, not by staff. The owner of the property with the small R-6 triangle has not requested rezoning, she said. If City Council wants staff to tackle that as well, they could, she stated, adding that it makes sense to staff as well to rezone the other property.

Councilman Henderson said it does make sense but if that property owner objected to the change, the City would have a problem.

Mayor Donecker opened the public hearing at 3:07 p.m. by asking if there was anyone opposed to this rezoning request or if there was anyone who wished to speak to its approval? No one spoke, and the public hearing was closed at 3:08 p.m.

Mayor Pro Tem Gentry made the motion, seconded by Councilman Festerman and unanimously approved by Council, to approve the rezoning request.

CONSIDERATION OF A REZONING REQUEST FOR A DAY CARE AT 123 ARLINGTON STREET FROM RESIDENTIAL-6 TO CONDITIONAL USE O&I AND ISSUANCE OF A CONDITIONAL USE PERMIT. (Z2003-5 AND CU2003-1)

City Clerk Angela Stadler swore in Assistant Community Development Director Donna Setliff.

Setliff reported on a rezoning request for 123 Arlington Street from Residential-6 to Conditional Use Office & Institutional (CU-O&I). There exists a single-family dwelling on this lot, which is almost 10,000 square feet in size, she said. The doublewide manufactured home received a Special Use Permit quite a few years ago, Setliff explained. While Arlington Street is mainly residential, including several apartments, duplexes and single-family, most of it is rental property, she said. The exception is one parcel, the Soup Kitchen, which was zoned O&I in 1989 at the request of the Soup Kitchen's board. This property backs up to Main Street, which has two different zones, General Business and Office & Institutional, Setliff explained. There are a mixture of uses along Main Street, she noted, including a couple of vacant commercial buildings down at the west end of Main Street.

In January, the Planning Board reviewed an application for the property for a straight O&I zoning, Setliff said. If rezoned, the property could be used for any of the O&I uses. Planning Board and staff were both concerned about the different uses that could be used there, and it was felt this property was not suitable for all the possible uses of O&I. Concerns were also expressed about the increase in traffic that might be created, which usually occurs with O&I zoning. Arlington Street, which is only about 20 feet wide, is too narrow for two cars to pass if a car is parked on the street, she noted. The Planning Board denied the request due to concerns about egress and ingress and parking, she added, but the board recommended the applicant look at a Conditional Use Permit for O&I.

The applicant re-filed their application as a Conditional Use limiting the use to a day care. In the site plan submitted to staff, the applicant provides for additional ingress and egress to the property as well as parking in the rear and a playground area, which has the square footage they are required to have. The applicant will have to put a buffer between the property and any residential properties, she noted.

Staff recommended that the rezoning request with the Conditional Use Permit (CUP) be approved with the following three conditions:

1. Operation of the day care shall be 5 days a week from 6:30 a.m. to 5:30 p.m.
2. All local and state license requirements shall be met.
3. The use must meet all applicable Building, Handicap, Fire Codes and Zoning Codes.
   After looking at the site plan, Planning Board members still remained concerned about how the parking was configured, Setliff explained. They felt there was a way, but the board added a fourth condition:
4. Redesign parking area so that it does not front the fenced play area.

Setliff noted that with the rezoning and CUP, two motions would be needed. For the CUP, staff would like City Council to vote on all four findings of fact, which staff wants to start doing with all its Conditional Use Permits also, she said. Staff is recommending approval, she added.

Councilman Festerman asked if the fourth condition was discussed with the applicant? Setliff said it was, and that the applicant was agreeable with that. The parking lot is going to be gravel so they have a lot of options with the parking in the back, she said.

Councilman Henderson asked if there was a possibility that the drive could be brought in from Main Street? Setliff said no, that the property behind 123 Arlington was owned by commercial property.

Mayor Donecker opened the public hearing at 3:13 p.m. by asking if there was anyone opposed to this request? No one spoke. He asked if there was anyone in favor of the request? Again, no one spoke. The public hearing was closed at 3:14 p.m.

Councilman Festerman made the motion, seconded by Councilman Rucker and unanimously approved by Council, that the property at 123 Arlington Street be rezoned from Residential-6 to Conditional Use Office & Institutional with conditions.

Councilman Henderson then made the motion, seconded by Councilman Turner, to approve the Conditional Use Permit as recommended by the Planning Board.

Mayor Donecker read the four findings of fact with Council voting after each finding was read.

The findings of fact are as follows:

1. that the use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved; Passed on a 7-0 vote.
   that the use meets all required conditions and specifications;
   Passed on a 7-0 vote.
2. that the use will not substantially injure the value of adjoining or abutting property, or that the use is a public necessity; and
   Passed on a 7-0 vote.
3. that the location and the character of the use if developed according to the plan as submitted and approved will be in harmony with area in which it is to be located and in general conformity with the Comprehensive Plan for Reidsville and its environs.
   Passed on a 7-0 vote.

Therefore, the Conditional Use Permit was approved as recommended by the Planning Board.

CONSIDERATION OF A SPECIAL USE PERMIT FOR 401 SOUTH SCALES STREET FOR A RESIDENTIAL USE IN A BUSINESS DISTRICT. (SP2003-3)

City Clerk Stadler swore in Community Development Director Michael Pearce.

In making the staff report, Pearce stated that a Special Use Permit (SUP) has been requested for 401 South Scales Street, which used to be the former First Baptist Church located at the corner of Williams Street and South Scales Street across from Fire Station No. 1. He reminded Council that they had approved a text amendment last month, which allowed residential uses in business districts with the issuance of a SUP. Mr. Clinton Dobson has applied for such a permit, Pearce noted.

Pearce noted that this building was a very important place in the City's history and was a place of worship for African Americans since at least 1890. The present building was built in 1918 by the First Baptist Church and was used by them until 1975 when they moved to Hubbard Street. For the past 20 years, the building has fallen into a state of disrepair. Staff had brought to Council a request to demolish the building because its condition was in violation. However, Council gave staff and Mr. Dobson the opportunity to find a way to preserve such special places in the City, which was done by text amendment. Mr. Dobson is planning to use the building for residential use primarily, but he will also have an office there, it was explained.

Staff found the request to be in compliance with the SUP requirements. The three conditions placed on the Special Use Permit are as follows:

1. That the Special Use Permit be for single-family residential use. (This condition would go with the property, Pearce noted. Any changes would have to come back to City Council.)
2. The use must meet all applicable Building, Handicap and Fire Codes.
3. The use must meet all attached regulations regarding a Residential Use in a Business District.

Council will need to review the four findings of fact and vote on each one. Planning Board reviewed these four findings of fact and approved each one unanimously. Pearce noted that Mr. Dobson could not be here today so he would answer any questions he could.

Mayor Donecker opened the public hearing at 3:19 p.m. by asking if there was anyone opposed to the request? No one spoke. He asked if there was anyone to speak for issuing the Special Use Permit? No one spoke, and the public hearing was closed at 3:19 p.m.

Councilman Turner made the motion, seconded by Councilman Rucker, to approve the request with the three conditions: That the Special Use Permit be for single-family residential use; The use must meet all applicable Building, Handicap and Fire Codes; and The use must meet all attached regulations regarding a Residential Use in a Business District.

Questions arose about the voting procedure regarding the Special Use Permit. City Attorney Bill McCloud Jr. informed Council that it must vote on each finding of fact. In approving the four findings of fact, the motion is passed, it was explained.

The findings of fact as read by the Mayor are as follows:

1. that the use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved;
   Passed on a 7-0 vote.
2. that the use meets all required conditions and specifications;
   Passed on a 7-0 vote.
3. that the use will not substantially injure the value of adjoining or abutting property, or that the use is a public necessity; and
   Passed on a 7-0 vote.
4. that the location and the character of the use if developed according to the plan as submitted and approved will be in harmony with area in which it is to be located and in general conformity with the Comprehensive Plan for Reidsville and its environs.
   Passed on a 7-0 vote.

Therefore, the motion on the Special Use Permit is carried.

CONSIDERATION OF A SPECIAL USE PERMIT FOR 201 SOUTHEAST MARKET STREET FOR RETAIL USE IN AN INDUSTRIAL DISTRICT. (SP2003-4)

City Clerk Stadler swore in Community Development Director Michael Pearce.

Pearce then stated that a Special Use Permit was being sought for 201 Southeast Market Street. Skip Balsley is requesting the permit to allow him to have a retail business in an industrial district at the old Reidsville Grocery building. Pearce reminded Council that it approved a text amendment in March that would allow such uses by Special Use Permit. The building has been vacant for several years after the wholesale operation was moved to Freeway Drive. Mr. Balsley has been attempting to sell the building, and he has received an offer to sell the older portion of the building to a business that sells high-end oriental rugs and fine furniture, Pearce explained. He noted that the building has been vandalized and is a concern of both the code inspectors and the Police Department. He said staff did not feel this was an appropriate piece of property to rezone, but it would be more appropriate to do this Special Use Permit process.

Staff is recommending approval of the Special Use Permit with the following five conditions, which Pearce read to Council:

1. That the Special Use Permit be for the storage and sale of oriental rugs, fine furniture or like articles.
2. That after the amount of retail space is determined, the owner will provide proof of adequate off-street parking per the City Zoning Ordinance.
3. That prior to occupation that the property be subdivided according to the Reidsville Subdivision Regulations.
4. The use must meet all applicable Building, Handicap and Fire Codes.
5. The use must meet all attached regulations regarding a Retail Business in an Industrial District.

Staff finds the application to be in compliance. The Special Use Permit was unanimously approved by the Planning Board which approved all four findings of fact, he noted.

Mayor Donecker opened the public hearing at 3:23 p.m. He asked if there was anyone opposed to the request? No one spoke. He asked if there was anyone to speak in favor of the request? No one spoke. The public hearing was closed at 3:24 p.m.

Councilman Rucker made the motion, seconded by Councilman Festerman, to approve the Special Use Permit as recommended by staff with the five conditions. The Mayor then read the five conditions again.

Councilman Festerman noted that this was a "good use" of this building. He said it speaks well to see this happen. He said he had visited Skip Balsley's place of business on Freeway Drive today, and he hoped this one would look as good in the future as the one on Freeway Drive looks now.

Council then looked at the four findings of fact and voted on each item as follows:

1. that the use will not materially endanger the public health or safety if located where proposed and developed according to the plan as submitted and approved;
   Passed on a 7-0 vote.
2. that the use meets all required conditions and specifications;
   Passed on a 7-0 vote.
3. that the use will not substantially injure the value of adjoining or abutting property, or that the use is a public necessity; and
   Passed on a 7-0 vote.
4. that the location and the character of the use if developed according to the plan as submitted and approved will be in harmony with area in which it is to be located and in general conformity with the Comprehensive Plan for Reidsville and its environs.
   Passed on a 7-0 vote.

Therefore, the motion on the Special Use Permit is carried.

CONSIDERATION OF A REZONING REQUEST FOR PROPERTY ON AMOS STREET FROM LIGHT INDUSTRIAL (I-1) TO RESIDENTIAL-12. (Z2003-2)

In making the staff report, Assistant Community Development Director Donna Setliff stated that Regency Development Associates would like to rezone three acres of an 8.5-acre tract on Amos Street from Light Industrial (I-1) to Residential-12 (R-12). The applicant would like to expand the Canterbury Place Apartments, which are located on adjacent property and include 40 units. This would be Phase 2 of the apartment complex and could add potentially 36 more units. This would bring the total to 76 units.

Setliff noted that the Amos Street area, which is zoned R-12, is developed primarily as single-family residential with a few duplexes. If this request is approved, the R-12 would be a continuation of what is already there, she said. The property to the east is Light Industrial, which is currently vacant.

At the Planning Board meeting, a number of Amos Street residents appeared in opposition to the rezoning, Setliff explained. Their concerns included the number of police calls to the current apartment complex and the additional traffic that had come to Amos Street. The Planning Board members felt these concerns were valid and denied the application, Setliff said. The applicant then appealed the denial, which is why it is now before Council, she explained.

Council must now consider what is best use for this property, she added. She noted again that the current zoning of the property is I-1 and can be built as Light Industrial. The rezoning application is a general use application, and any use of R-12, mostly single family and multi-family is allowed, could be built there. Staff has been told by the applicant that they plan to add onto the Canterbury Place Apartments, but there are no "guarantees" that they would get funding and this would actually happen, she said.

Setliff noted that no traffic counts have been done on Amos Street or Park Lane. The only information the Engineering Department could give her is that Amos is 38 feet wide with curb and gutter on both sides. Park Lane is 38 feet wide with only one side having curb and gutter, she said. The streets are used as a cut-through; therefore, they may experience more traffic than a normal street would, she said.

Setliff said the Police Department's Records Clerk ran the number of calls to that neighborhood for the year 2002. Canterbury had a total of 92 calls for service to the apartment complex last year, she said. Among the calls to service, which she noted didn't mean that's what they landed up being when officers got there, she reported to Council the following: 17 assistance, which could be anything; 11 disturbance; 13 loud music; eight suspicious persons; five fights; and five assaults. The rest are a number of various things, she added.

Setliff said that she also got the police to run the number of service calls to Amos Street, not including Canterbury Place. That number included about 70-75 calls, and Setliff read some of the types of calls answered: six officer assistance; seven nuisance vehicle; four suspicious; and four B&Es. The rest of them were a variety of different calls, she said.

Setliff noted that staff listened to what went on at the Planning Board meeting and had heard that the apartment complex has not been "harmonious" with the neighborhood. She pointed out that prior to the Planning Board meeting and hearing from the residents there, staff had recommended approval of the rezoning. She noted that when staff makes this recommendation, they have not heard from the public but base their decision on looking at their maps and weighing the merits of the zoning. Sometimes, staff doesn't make a recommendation at all. In this situation, staff had made a recommendation because it had not heard these complaints. However, after hearing from the public and reconsidering what has gone on out there, staff is recommending that the application be denied, she said.

Mayor Donecker opened the public hearing at 3:34 p.m. He asked if there was anyone who wished to oppose the rezoning request?

Ms. Janice Timpson of 1864 Amos Street got up to speak. She asked all those who were against the rezoning to please stand. City Clerk Stadler and City Attorney Bill McLeod Jr. counted 21 people. Ms. Timpson was accompanied by Mr. James Crisp of 1862 Amos Street.

Ms. Timpson said their opposition to the rezoning was based on data that had been provided to the Planning Board. She said she also had excerpts from Flower Club meetings if they were needed. The opposition was also based on personal experience, she said. Ms. Timpson said the current apartments have had the ability to increase crime, increase police activity and increase traffic. The apartments have also had the ability to reduce safety, reduce security and potentially reduce property values in the neighborhood as well. She noted that buying a home is normally the biggest purchase you ever made. She said she realized that they can't go back to life prior to Regency Apartments, but she said they also didn't want to have to deal with 40 more units.

Ms. Timpson said she did provide a letter to the members of City Council outlining some of their concerns. She said she also had a petition signed by every homeowner on Amos Street saying they are opposed to the property being rezoned. (A COPY OF THE PETITION IS HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)

Mr. James E. Totten of 1811 Amos Street then got up to speak. He noted that he needed to sign the petition.

Mr. Totten stated that he had come up to City Hall before Regency put up the first apartment complex, which is located adjacent to his property. He opposed the complex at that time, but he was the only one who showed up at the meeting, he said. He noted that he has had to spend money putting up a fence to keep people out of his back yard. He talked of firearms being discharged in the neighborhood and likened it to becoming "another Duke Street." He said he had been promised prior to the current complex being built that all applicants would be screened and would be qualified. He said as far as he could see, they can't even keep the office open. He said they were throwing trash, garbage, beer cans, etc. over the fence into his yard, and he was going to have to do something about that. He said he definitely didn't want 40 more units added on. He noted that since Council was approving everything that was coming across, he hoped they wouldn't approve this.

Mr. James Major of 1724 Amos Street said he had been a resident of Amos Street for some 40 years. At one time, they had no problems because most of the people owned their own property and most of them now could be called "elderly," he said. Most problems have occurred since the apartments were erected, problems which they should not have had, he added. He talked of having lawn mowers stolen from his house so now he has to lock his new lawn mower up in his basement. People are walking the streets at all hours of the night, Mr. Major said, even at 3 a.m. He said these are just a few of the reasons they are definitely opposed to the request. He said he thought Council had gotten "the general idea."

The Mayor then asked if there was anyone to speak in favor of the rezoning request?

Ms. Nakira Carter, representing Regency Apartments of 1724 Wycliffe Road, Suite 312, got up to address Council. She thanked Council for the opportunity here today and for taking time over the past two months to meet with them to talk about the project. She said Regency realizes that without neighborhood support, they know their chances of achieving success are a "long shot." She said she was here today to show Regency's support for Reidsville, for the neighbors, the Mayor and City Council members.

Carter noted that Regency came before the Planning Board in February with this request and were denied approval. At that time, they took the time to address the issues of the neighbors. A letter was sent to the neighbors calling for a neighborhood meeting, she said. The meeting was held back in either February or March with only five neighbors showing up. At that meeting, they went over issues the neighbors had. One of the things done before the meeting was a traffic study for the Amos Street/Park Lane area. The traffic study showed there would be "little to no impact" on the traffic with the new apartments. They met with the Police Captain to discuss ways to spare the neighborhood from having so many calls, she said.

Last Monday they came and spoke with the Mayor and Councilman Henderson. They proposed an idea, and it was noted that the neighborhood might be more open to a "senior property," Carter said. She said they had met with the local lead agency for aging to talk them about actually targeting the elderly population with an apartment complex.

Carter said they tried to have a second meeting with the neighbors but of the four who agreed to come to the second meeting, no one showed up. She added that the four didn't even give them a courtesy call to say they wouldn't be there. She said Regency is still committed to Reidsville and stated that the company might still consider an elderly project there. However, noting that the property is zoned Light-Industrial, she stated that several industrial uses could go there. The question, she said, is what exactly do the neighbors want there?

Councilman Turner asked Carter what is being done to keep the office open for interviews of new applicants? She stated that currently the regional manager comes from Chapel Hill to interview applicants as they apply. She talked of the availability of a full-time position there.

Councilman Turner asked how applicants would know how to get a new application? Carter said she thinks a telephone number or the schedule of hours is listed on the property, but she said she hasn't been there recently. Councilman Turner asked what are the possibilities of converting the present units into senior apartments?

Carter said they might be able to target more units for senior residents, but they can't move people out. As they leave, they could target senior residents. Councilman Turner asked if they were subsidized? Carter said no, explaining the tax credit program. Councilman Turner asked if seniors could afford them? She said yes, most seniors would fall within the guidelines.

Councilman Henderson asked whether Regency has, since Canterbury Place was built, ever approached the residents of the neighborhood to find out what type of relationship there was. Carter said she wasn't aware of that, but she said that wasn't something she kept up with. There are two Support Services Coordinators who coordinate services for all of Regency's properties and the neighborhood are invited to come out to all of those programs, including after-school programs, Valentine dances, etc. Councilman Henderson noted then that Regency wouldn't have any knowledge of the relationship the property had with the community. She said she would have to get information on that from the Support Services Coordinator. Councilman Henderson stated that he had opposed the building of Canterbury Place when only one neighbor came to the meeting.

Councilman Rucker asked Carter in the last 30 days, how many times had she been in Reidsville? She said about 3-4 times. He asked if she had gone by Canterbury to check on things? She said she had, that she stops by sometimes when she goes to see her family in the Charlotte area. Councilman Rucker said he understood from what she had said earlier that she hadn't been there in a while? She said she was saying she hadn't been there in the last week.

The Mayor asked if there were any plans for an on-site manager? Carter asked if he meant someone who lived at the property? He said yes. She talked about the "income qualified" guidelines to live there, and said there was no guarantee someone could live and work there. She noted that the guidelines were based not only on income but also on how many people are living there.

Councilman Rucker asked if there are problems, such as plumbing problems, with an apartment, what would Regency do? Carter noted that there is a maintenance person available on a 24-hour basis.

Mr. Totten spoke again. Reiterating that he lived right beside Canterbury, he said what they have down there is like in school. When the teacher leaves the room, it's wide open, he said. As far as putting elderly people in there, it's a two-story complex so they'd have to re-do the whole thing to accommodate older people on the upper level, he noted. He said there's nobody there. He said he does handyman work, and he tried to get the maintenance job there. If something happens, you have to call the police, he said. Mr. Totten said there was one lady when they first opened the apartments, but she was moved out.

Ms. Timpson said, in response to the question from Carter about what do the neighbors want, that the neighbors would love to see single-family homes there.

Mr. Major talked about his experience with applicant screenings. He talked of the rental house next to his, calling it the "worst experience of his life." He said he screened those people really well but talked of the problems involved. Screening can be done, and it can be done effectively, he said.

Ms. Clara Gunn of 1108 Lindsey Street got up to speak. She said she really sympathized with these people because she lives right across from a project. She said she admired all of these people for sticking up. She said she hoped Council would oppose it or it really is going to be a disaster.

Ms. Ronnie Wilkerson of 1873 Amos Street addressed Council. She talked of how there were a lot of senior citizens living on the street and how disturbing it was to them to have the young children coming down the street playing basketball, etc. She noted many people were confined to their beds. She said there are a lot of young children coming down the streets in droves, playing basketball. She said how would you feel if you thought you lived in a comfortable neighborhood, and there were kids coming down the street hollering and playing basketball? She asked Ms. Carter if she had lived there for a week, even a day, to see what was going on? She noted that the people here are begging for help because they are tired of the police coming in and out, mattresses being thrown out, cluttering up the neighborhood, etc. She said it wasn't fair to the senior citizens as well as the rest of the neighborhood.

The public hearing was closed by the Mayor at 3:55 p.m.

Councilman Turner made the motion, seconded by Councilman Henderson, that the Council was opposed to this rezoning request.

Mayor Pro Tem Gentry questioned whether the Council had to take any action. City Attorney Bill McLeod Jr. said the Council could vote to oppose or could accept the recommendation of the Planning Board.

Councilman Henderson then made the motion, seconded by Mayor Pro Tem Gentry, to approve the recommendation coming from the Planning Board and deny the rezoning request. The motion was unanimously approved.

- End of Public Hearings -

CONSIDERATION OF HEALTH INSURANCE RATES.

Councilman Festerman asked to be excused from this discussion due to a conflict of interest. (Councilman Festerman as a retiree of the City is covered by the City's insurance.)

Mayor Pro Tem Gentry made the motion, seconded by Councilwoman Zdanski and approved by Council in a 6-0 vote, to excuse Councilman Festerman from this discussion.

Referring to Assistant City Manager Terri Stamey's memo on the health and dental insurance rates located in the agenda packets, the City Manager stated that he felt Terri's memo spoke for itself. The memo is as follows:

MEMORANDUM

TO: D. Kelly Almond, City Manager

FROM: Terri J. Stamey, Assistant City Manager

DATE: March 28, 2003

RE: Group Health and Dental Rates

The renewal quote for group health and dental insurance coverage has been received in our office. Per your direction, I have prepared recommended group health and dental rates for City Council’s consideration.

You may recall that our renewal date is May 1, 2003. We need to collect premiums during April to fund the program in May. Therefore, the City Council should set the rates as soon as possible. The information below is provided to assist them in this endeavor.

Our projected maximum health and dental liability for May 1, 2003 - April 30, 2004 is $1,480,297.03 based on existing certificates. This represents an increase of $100,564.15 or 7.29%.

This projected liability is based on the insurance plan with a few modifications. The recommended changes are listed below.

• Drug card co-payments, to change as follows:

Generic - Old co-payment = $10.00 New co-payment = $5.00

Preferred Brand Name No change in co-payment; remains at $20.00

Non-Preferred Brand Name - Old co-payment = $30.00 New co-payment = $40.00

Note: Each co-payment is for one prescription for a 30-day supply.

Justification: This change is recommended in an effort to motivate the employees to ask their doctors if it is appropriate for them to try a generic drug for their medical condition before moving to the more expensive drugs. It is believed that a greater utilization of generic drugs will decrease the cost to our plan for drug card purchases.

• Mail order prescription service to be added. Employees will be able to get a 90-day supply of maintenance type prescription drugs for two co-payments as opposed to a 30-day supply for one co-payment.

Justification: This change is recommended as a benefit to employees who are taking "maintenance" medications for conditions such as allergies, depression, diabetes, heart disease, high blood pressure or other conditions that require that the patient take medications each day over a long period of time for management of the condition.

This change will result in employees "saving" up to four co-payments per year for each prescription that falls into this category. In addition, access to medications by mail order will mean fewer trips to the pharmacy for the employee. In terms of effect on our plan costs, it is expected that the City will save more money through wholesale mail order pricing than will be lost through the reduction in co-payments.

• Mental/nervous outpatient services, currently payable at 50% for 25 visits per year to become payable at 80% in-network for 30 visits per year.

Justification: This change is recommended in anticipation of congressional action for mental health parity in insurance plans. This change will not take our plan to full parity, but it will be a significant movement in that direction.

• Occupational, physical, and speech therapy services to be changed from no calendar year maximum to a $5,000 calendar year maximum per service.

Justification: Our third party administrator recommended this change in an effort

to define benefits that had previously been open-ended.

None of these recommended changes added any cost to the plan. In fact, the combination of changes listed above resulted in a 1.5% decrease in our projected claims cost for the 2003-2004 plan year.

With this information in mind, I am recommending that City Council adopt the attached rates for group health and dental insurance to become effective May 1, 2003. This is the same rate structure that we have had in place for plan year 2002-2003 with a 7.29% increase to each premium tier. This rate structure, if adopted, will result in a greater cost to the City of $74,375 for the employees' coverage for July 1, 2003-June 30, 2004. These premiums will provide full funding for the maximum exposure under the plan. You may recall that the plan was fully funded through premiums last year for the first time since we became self-insured.

In closing, staff is seeking the City Council's approval of the proposed plan changes listed above and approval of the proposed insurance rates on the attached table to be effective for May coverage.

If you have questions or need more information, please let me know.

- End of Memo -

City Manager Almond said there are two issues to be considered: (1) coverage or levels of coverage; and (2) rates. He said Council might want to make them into two motions, but he was going to make one recommendation.

In terms of coverage, he noted that staff is recommending Council adopt the four changes as outlined in the bullets in the Assistant City Manager's memo. Also, he'd like Council to correct what he thought was an "oversight" or a "gap filling" situation and change the ways the City offers group health insurance to retirees. He said he'd like to recommend the Council change the current policy to add those retirees and extend the City's health insurance rates to past retirees who retired between 1988-97 and remained on the City's insurance at their own expense and who didn't get the same benefits offered to future retirees. He said he thought this would fill a gap that had been left out inadvertently.

Therefore, he reiterated that his recommendation is to accept the four changes (bulleted items) in Terri Stamey's memo for the current plan and to make those changes to past retirees' health and dental coverage.

With regards to rates, staff has been working with the City's insurance carrier who recommends a 7.29% increase across the board. City Manager Almond noted that last year, the Council adopted insurance rates that went up a "pretty good amount." He said that was the first time in the City's history since the City has been self insured that the City fully funded all liability that the City had out there. He said if Council wanted to continue to do that and fully fund all of the City's insurance liability, the rates would need to go up by that 7.29%. He said, as Council knows, health insurance rates are a "gamble." Some years are good years, some are bad. Sometimes you can have three bad years in a row, he said. Hopefully, that will be offset by a couple of good years in a row, he added. That doesn't always happen, but sometimes it does, the City Manager noted.

"It's a gamble," he reiterated. "You are fully insured at the current rate." Next year, the City will be fully insured at 7.29%, City Manager Almond said. That means the City would be paying 7.29% more in coverage for employees, and employees would be paying 7.29% more for dependent coverage, he said. The Council could take a gamble that the City will have another good year next year, he said. During this past year, the City's experience has been much better than in previous years, he said. The City has added to its insurance reserves this year so without a rate increase next year, the City would still start off in a positive situation with its reserve, he explained. Council could go up a little this year to make it easier or hold rates steady and hopefully have another good year, he said.

City Manager Almond pointed out that if the City went up 7.29% on rates, it would cost the City approximately $75,000 more next year.

City Manager Almond reiterated his recommendations. He said he was recommending the Council adopt the four bulleted points in Assistant City Manager Stamey's memo on insurance coverage and the changes regarding retirees. In response to a question from the Mayor, he noted that none of the bulleted changes add any costs. Those changes will actually save the City money, he added.

The Mayor asked the City Manager to take Council again through the 7.29% level. He asked if this was the same rate structure that the City had in place during fiscal year 2002-2003? He noted that on page 2 of the Assistant City Manager's memo, it stated the following: "This rate structure, if adopted, will result in a greater cost to the City of $74,375…" In response to the Mayor's question, the City Manager said yes, the City would have to appropriate an additional $74,000 in next year's budget for the rate increase -- for the City's cost. The Mayor asked what would that mean to the employees? City Manager Almond said it depended on whether they had dependent coverage. He referred him to the rate table. The Mayor questioned whether that meant the cost would go up for employees, to which the City Manager replied, yes, for those who have dependent coverage.

Councilwoman Zdanski reiterated that the four bulleted changes would have no increased cost to the City. City Manager Almond said his recommendation regarding coverage dealt with the four bullets and the retirees' coverage. He noted that was a "coverage" issue rather than a "rate" issue.

Councilman Henderson asked if this would cover all employees? "Yes, sir," the City Manager replied. The retirees issue was an equity issue, he said, treating all employees the same way, both current and retired.

Councilwoman Zdanski made the motion that the Council cover the four bullets as outlined in the memo and adopt the coverage adjustments for the retirees. The motion was seconded by Mayor Pro Tem Gentry.

In the discussion phase, the Mayor asked how many retirees would be affected by this change? City Manager Almond said staff thinks there are seven, no more than eight. Councilwoman Zdanski noted that of those eight, at some point, that will be a declining figure when they age out into different systems. Councilman Turner said they would at age 65.

The motion was then unanimously approved 6-0.

The Mayor then said he would accept a motion regarding the rates aspect. City Manager Almond reiterated that it's a gamble. If the Council decided to fully fund, it will know the City will be "in the black," or Council could leave rates the way they are now, he said.

Councilwoman Zdanski said she would like for Council to consider taking a chance and leave the insurance rates as they are. She said she knows it is a "roll of the dice," but the City has had a good year and does have some insurance reserve balance.

The Mayor asked if she would like to put that in the form of a motion. She said she would put that in the form of a motion.

Councilwoman Zdanski made the motion to leave insurance rates as they are. The motion was seconded by Councilman Rucker.

Councilman Henderson asked if the City had a disastrous year, could the Council make changes mid-year? Assistant City Manager Stamey said if the City were to have a disastrous year, it would be problematic for the employees who have the Section 125 pre-tax plan.

Councilwoman Zdanski noted that, in the past, there had been two occasions when they had to "borrow" money to cover insurance costs. City Manager Almond agreed, but he noted that was "zeroed out" July 1 of this past year and since that time, reserves of approximately $148,000 had been built up.

Councilwoman Zdanski, noting current economic conditions, again said she’d like to keep the rates the same. Mayor Donecker referred to Assistant City Manager Stamey’s memo again where it noted the rate structure would mean an greater cost of $75,000 to the City. The City Manager noted that the motion is not to adopt the recommended rate structure but to leave it where it is. "Our cost for the health insurance would be the same next year as it is in the current year," he said.

Assistant City Manager Stamey told the Mayor that the statement in the memo that the rate structure would be the same means the relationship, "the structure itself in terms of relationships between the employer’s share and the family vs. spouse vs. parent/children – the type of structure you’ve grown comfortable with and that our people are accustomed to paying on that basis is retained."

The Mayor asked if the employees would have to pay anything extra since the Council has adopted the four bulleted items? Stamey said the four bulleted points in the memo actually decrease the City’s amount of increase, reducing the amount the City would have had to go up. She said it would have been a little more than $74,000 for the City and more to the employees if these changes had not been made. As the City Manager said, Council can make these changes and keep the rates the same if that’s the Council’s choice and Council is willing to accept the maximum liability, Stamey explained. This is with the understanding that the Council may have to spend $75,000 more, she said. "May have to," the Mayor reiterated. The Assistant City Manager said it was probably a "remote possibility" because the City has never met its maximum. The Mayor asked if the City had to kick in that $75,000 when the City hits the maximum, what would happen to the employees at that time? "Will they be affected at the same time?" he asked. Stamey said only if staff came back to Council and asked to change those rates, the employees would not be affected.

Mid-year changes to the plan can affect Section 125, which makes employees’ deductions tax exempt, Stamey said. That would be something that would have to be addressed if Council decided at that time to make changes, she explained. "It would take the action of this board to affect employees’ rates," she said.

Councilman Festerman said that, "cutting to the chase," what is being said is that employees’ costs are not going to increase next year? The Mayor agreed, but noted that the City is self-insured. If costs go up, and the City expends that $148,000 cushion, then Council may have to come back here and increase the allocation because there won’t be any funds to support the plan, he said. Stamey referred to page one of her memo, which gives the City’s maximum liability, $1,480,297. That is the City’s maximum liability under the contract if Council adopts it as proposed, she said. "We shouldn’t go above that," she said. "If we did hit this, about $75,000 the City would need to provide because the rate structure from the employees and from the City won’t cover $1,480,297," she added.

Mayor Donecker asked who determined the amount of maximum liability? Stamey explained that it was the actuary that the third-party administrator, with a lot of input from the re-insurers, employed. She noted that the City is protected, that it won’t go over $1.48 million.

The motion was then passed in a unanimous 6-0 vote.

Stamey noted that on behalf of the employees and retirees, staff thanked Council for their care and concern during good times and bad.

Councilman Festerman asked that the minutes reflect that he had returned to the meeting.

CONSIDERATION OF A NON-RESIDENTIAL CONDEMNATION OF 913 LAWSONVILLE AVENUE.

In making the staff report, Community Development Director Michael Pearce noted that his department was seeking an ordinance to demolish 913 Lawsonville Avenue. This former garage has been vacant for several years, he said. Staff has received several complaints about this structure, and there has been considerable damage to it, Pearce noted. A title search showed that the property owner is Judy Alvarez of 14852 Rosecoe Street, Dade City, Florida. She was notified of a hearing with the Code Enforcement Officer on January 13, 2003, but she did not attend.

Pearce noted that his memo stated that an order to remove the dwelling was mailed on September 24, 2002, but he stated that he didn't think that was a correct date. On March 14, 2003, the 60-day order to repair or remove the building expired, he said. He noted that the estimated cost of repairs totaled approximately $12,000, which far exceeds the 50% value of the building, $5,326. Therefore, staff was requesting that that the building be demolished, he said.

Councilman Henderson asked when the initial inspection was done? Pearce said it was done on December 3, 2002.

Councilman Turner made the motion, seconded by Councilman Rucker, to demolish the property at 913 Lawsonville Avenue.

Mayor Pro Tem Gentry asked about the 55 gallons "of something" down there and asked if the Fire Department would take care of it? He was informed that whoever was responsible for the demolition would also be responsible for removing that. Councilman Festerman noted that as a Council, they were concerned about the appearance of the City and this was a main entranceway into the City. He talked about the need to "zero in" on such properties that one sees when coming down US 158 from the east.

Mayor Donecker questioned the dates in the memo. There was more discussion about the September 24, 2002 date. Pearce said he thought that was a clerical error and that the order to remove the dwelling was probably mailed to the owner on January 14, 2003 since the order's expiration was March 14, 2003. The Mayor asked which date was in error? Pearce said it was the September 24, 2002 date. The Mayor asked what should it be? Pearce said it should be January 14, 2003 because usually the order is mailed out the day after the hearing and the hearing was held March 14, or 60 days after that. Pearce apologized for the error. Mayor Donecker said it needed to be corrected for the record.

Councilman Festerman asked if the date needed to be corrected further in case it went to court? City Attorney McLeod said it would be okay since Pearce had testified to it.

The motion was then passed 7-0.

Report on Pennrose Drive.

Pearce asked to give Council a report on Pennrose Drive. Pearce noted that Council at its January meeting had given the Burnettes an additional 90 days to work on the property. Staff was to give a report on a monthly basis although no report was given the previous month. There has been significant progress, Pearce said. Chris Burnette has put a new roof on the property and now has sole possession of the house, he said. They are currently on the inside rehabilitating the building.

Pearce said he could not say at this point that the house is still not in dilapidated condition. Therefore, he is not recommending removing the demolition order yet, but he would recommend to continue the staying of the execution of the order, giving the homeowner another 90 days.

Councilman Festerman made the motion, seconded by Councilwoman Zdanski and unanimously approved by Council, to extend the demolition order another 90 days.

Smith building on Main Street.

Councilman Turner asked about what is happening with the Smith building on Main Street. Pearce said it continues to be a violation, and the amount of the fines keep adding up every day. Mayor Donecker said he had talked with Dr. Ferguson, who is going to talk with Dr. Smith to see if there is some way the issue can be resolved without going through the courts.

BOARD AND COMMISSION APPOINTMENTS:

City Manager Almond distributed the ballots for the City's boards and commissions.

PUBLIC COMMENTS ON NON-AGENDA ITEMS.

Complaint About City Inspector in Moving Process.

Mr. Richard Moore of The Bookstore, located at 217 Turner Drive, noted that he had moved to his new location from Freeway Drive just last week. He said he was happy to report that they were now in a much larger, nicer building. However, he said he was here today to talk about some difficulty they had in relocating. He said they assumed it would be a simple matter to move only two miles across town. He said that after being in business for 16 years, he could assure Council it was a considerable hassle. The greatest hassle and cost came in dealing with the ABC people, he said. He said he thought it would just mean getting a new piece of paper with a new address on it. He said he thought it would cost him $25 but it cost him $600. He also had to give up two licenses because if he had kept the two licenses it would have cost $1,400 to move across town, Moore said.

He said they made the move because they are a struggling business trying to stay alive in this town. He said obviously the City doesn’t have much to do with the North Carolina ABC Commission, but he said the City has a local ABC Board that wants to perpetuate the system that forces a small business person to pay $600 to move across town.

The point he wanted Council to consider was in that in this process, he had to fill out no less than 12 forms that had to be approved by no less than six local people. He talked of having to go to the Sheriff’s Department for fingerprinting and an FBI and SBI background checks to move across town. He said he has been "temporarily" approved. But getting back to what he wanted to tell them, Moore said he wanted to thank City Manager Almond for expediting the process where the City was involved.

Even though he started the paperwork process a month in advance of the move, his greatest fear was that they would move to Turner Drive and be unable to sell a bottle of wine. He said that didn’t happen, but it came close. He said he had a lot of hassle, and he spent a lot of money, but the only place that he really ran into grief was at the City of Reidsville. He did get some laughs at the Sheriff’s Department where he got fingerprinted, but he laughed along with them. He said where he didn’t find any humor was the Inspections Department with the City of Reidsville. He said this inspector happened to be there when he went to expedite this problem and have the forms filled out. This inspector indicated to him that he didn’t approve of selling wine at a bookstore. He didn’t approve of his product mix. Moore said it was none of the inspector’s business what his product mix was. He kept quiet, but the inspector said he could not approve this process – and Moore pointed out that the building inspector is one of the people that must sign off before he can sell alcohol in the building – until after he had moved into the building. He said that could possibly delay him doing business up to a month. He told the building inspector it was intolerable that he couldn’t approve it until after he moved in. He said he wasn’t going to stand for it. If he were somebody else, he would have probably thought he couldn’t go any further with this. The irony of all this is that when he moved into his original location, they were delayed four weeks because the building inspector wouldn’t approve them moving in. This time, he had to move in before the inspector would approve it. City Manager Almond eventually made all this work for him, but he knew the right people to call and he knew he was being done wrong. Somebody else might not have known that. He said he didn’t run into a snag in all this except in the Reidsville Building Inspections Department where he was first told they didn’t approve of what he was selling and then told he had to move in before he could get the inspector's signature on a piece of paper saying it was all right for him to sell alcohol.

He said he thought Council should know that there are small business people struggling to make a living, going through a lot of hassle and spending a lot of money. He just knew the ropes a little better than the average guy and got Mr. Almond’s help, he said. He said if not for that, he would be sitting out there with only half of his business. This is not a business friendly sort of arrangement, Moore said, noting he had gotten an "attitude," and that City Hall was the only place he got an attitude.

ANNOUNCEMENT OF BOARD AND COMMISSION APPOINTMENTS.

City Clerk Angela G. Stadler read the results of the boards and commission voting. She stated that Mr. Dave Gerrells of 128 South Scales Street was unanimously approved for appointment for an unexpired term ending August 2003 on the Reidsville Historic Preservation Commission.

City Clerk Stadler also reported that Mr. Gary Chrismon of 1109 Ridgewood Avenue and Mr. Mike Fetter of 331 Acme Street were unanimously appointed to the Reidsville Planning Board. Mr. Fetter will fill the five-year term while Mr. Chrismon will fill an unexpired term ending April 2004. (COPIES OF THE BALLOTS ARE HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)

CITY MANAGER'S REPORT.

Setting Date for Budget Work Session.

City Manager Almond asked Council members for possible dates for a budget work session. It was decided the work session would be held at 3 p.m. on Monday, May 12, the day before Council meeting.

Rate Structure for Water & Sewer.

The City Manager noted that the City has a fixed and variable rate structure for water and sewer services. The fixed rate is based each month on the size of the meter that someone has, going up from three-quarter to six inch, he said. Recently, Annie Penn Hospital had the need to install an eight-inch meter, but there are no eight-inch meters anywhere else in town, the City Manager explained. Therefore, the Council needs to establish a fixed/variable rate for an eight-inch meter. Since there is only the one, staff sees no reason to charge any higher for an eight-inch meter than for a six-inch meter. He said he was recommending that for the six-inch rate now be modified to say "6 inch and larger."

Councilman Festerman made the motion, seconded by Mayor Pro Tem Gentry, to approve the recommendation to modify the six-inch fixed and variable rates for water and sewer services to say "6 inches and larger."

The Mayor questioned the volume involved for Annie Penn. City Manager said staff didn't feel the hospital needed an 8-inch meter, but Annie Penn's engineer is recommending it.

The motion was unanimously approved.

Documents Related to Disaster Funding.

City Manager Almond noted that he had placed at the Council members' places prior to the meeting two documents related to disaster funding from the recent ice storm. Rockingham County was named a federal and state disaster area following the last storm, he said. In order two apply for FEMA funding, the Council must pass two resolutions, one of which names Public Works Director Steve Routh as the local agent and the other -is an application for disaster assistance that says the City will use the funds appropriately, he said. (COPIES OF THE TWO RESOLUTIONS ARE HEREIN INCORPORATED AND MADE A PART OF THESE MINUTES.)

Councilwoman Zdanski made the motion, seconded by Councilman Henderson and unanimously approved by Council, to approve the two resolutions.

Councilman Festerman asked if staff has been able to determine how much the storm cost the City? The City Manager said it had not yet been determined, but he noted that the City will probably spend $50,000 over what it normally spends just for grinding up debris, not including collecting the debris.

Robinhood/Lawndale Sewer Line Appropriation.

The City Manager said over the past several months Council has approved sewer line improvements in the Robinhood Road area and Lawndale Avenue. Money had been appropriated to cover both based on estimates that had been received; however, the estimates don't cover the cost of building those sewer lines. Therefore, staff is requesting an additional $20,000 from the Sewer Reserve Fund for these projects.

Mayor Pro Tem Gentry made the motion, seconded by Councilwoman Zdanski and unanimously approved by Council, to approve $20,000 in additional funds from the Sewer Reserve Fund for the Robinhood/Lawndale sewer line project (Budget Ordinance Amendment No. 14).

The Budget Ordinance Amendment as approved follows:

BUDGET ORDINANCE AMENDMENT NO. 14

WHEREAS, the Mayor and City Council of the City of Reidsville adopted a budget ordinance on June 12, 2002 which established revenues and authorized expenditures for fiscal year 2002-2003; 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 sewer reserve funds for the sewer line on Robinhood Road:

NOW, THEREFORE, BE IT ORDAINED, by the Mayor and City Council of the City of Reidsville that the budget ordinance as adopted on June 12, 2002 is hereby amended as follows;

Section 1. That revenue account no. 44-3991-0000, Fund Balance Sewer Reserve, be increased by $20,000; that revenue account no.62-3987-0000, Transfer from Sewer Reserve, be increased by $20,000;

Section 2. That expense account no. 44-7130-0000, Transfer to Sewer Fund, be increased by $20,000; that expense account no. 62-7131-5807, Sewer Line Robinhood Road, be increased by $20,000:

This the 7th day of April 2003.

Condition of Public Works Employee Frank Strader.

Councilman Rucker asked how Frank Strader, a City employee involved in a wreck on Freeway Drive (on Friday, March 28), was doing? City Manager Almond said Frank was doing well, but that some tendons in his shoulder had been pulled.

COUNCIL MEMBERS' REPORTS.

Mayor Pro Tem Gentry - The Mayor Pro Tem noted that he had cut the ribbon at the opening of a business recently, and the gentleman said he had operated businesses in Dallas and Florida. He wanted to say the most cooperative place he had ever been to start a business was the City and complimented Pearce's staff in Community Development. The Mayor Pro Tem told Pearce he wanted him to know that, because the business owner didn't have to say that.

Mayor Pro Tem Gentry also stated that on March 15, the Reidsville Rams did something that hadn't been done in 36 years -- having already won a football championship, they then beat East Columbus for the 2A State Basketball Championship. He noted that signs needed to be put up, either with the football signs or somewhere, and that the Council should have them come in and honor them in some way. Councilwoman Zdanski noted that they might should wait to see how the track/cross country teams do.

Councilman Turner - No report.

Councilman Henderson - While he attended both the Human Relations Commission and Appearance Commission meetings, he had nothing to report.

Councilman Festerman - The Councilman said he had no report, but he did receive a letter from a citizen complimenting the City's Public Works Department. He said it was nice to receive such a letter, and he said it was nice "being a part of this group."

Councilman Rucker - No report.

Councilwoman Zdanski - The Councilwoman noted that the Historic Preservation Commission will meet the following day.

The Chamber held a quarterly meeting. She said she did go to the County Coffee, which was very well attended. She noted that the Chamber will be having a Secretaries Luncheon from noon until 1:30 p.m. on April 23 at Pennrose Park Country Club.

Mayor Donecker - No report.

City Manager Commended Pearce for Helping Mr. Moore.

City Manager Almond, noting he didn't want to get into a debate with Richard Moore, said he thanked him for his kind words, but they are undeserved. He said all he did was call Michael Pearce and ask him to look into it and be respectful of the timetable Mr. Moore was working under.

Council members Thank Assistant City Manager, City Clerk.

Councilwoman Zdanski said she appreciated all of the work Terri Stamey had done on the employee insurance and talked of the importance of an employee wellness program. Councilman Festerman thanked City Clerk Angela Stadler for the lengthy minutes from the March meeting. Stadler said she was able to get them out helped by Deputy City Clerk Michelle Smith.

Councilman Festerman then made the motion, seconded by Mayor Donecker and unanimously approved by Council, to adjourn at approximately 4:38 p.m.

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