Newsletter about the City Council meeting of May 19, 2009

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At the bottom right of this page under main information links is a Hickory's Local Government link. If you click on that link, it takes you to our city’s website, at the bottom of the page you will see the future dates for meetings scheduled for this year.

At the top of the page, if you click on the “Documents” link, you will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 5/19/2009 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below.

Invocation by Robert Ford of Frye Regional Medical Center

Special Presentations:
A. Proclamation Recognizing the Hickory High Red Tornado Golf Team as the 2009 State 3A Golf Champions - The High School has won the state championship in golf 4 times since 2001 (2001, 2003, 2007, 2009). Link from Prep Insiders article.

B. Presentation of Transforming Local Government Award Received From the Alliance for Innovation for the City’s “Operation No Vacancy” Program - Andrea Surratt, Warren Wood, Dave Leonetti, and Alder Sally Fox represented Hickory. An award was presented to Hickory for Outstanding Achievement in Local Government Innovations. It was 1 out of 12 presented. The Idea was proposed by Mrs. Fox at the council retreat in 2008. Mrs. Fox stated how proud she was of the team that traveled to Texas with her.

C. Hickory Community Appearance Commission Regarding Presentation of Budget Amendment in the amount of $10,000 - Steve Bowman made the presentation in which he stated that he wanted to transfer monies budgeted for a Duke Energy Pilot Program to study underground utilities. He mentioned that the money would be reallocated to a Friends of Hickory Pilot Project. The FoH concept would allow the CAC budget dollars earmarked for Downtown and City Wide improvements to be increased. They also want to give Community Minded Individuals and businesses an opportunity to make contributions to those improvements Downtown and match contributions. He stated that he wasn't going to go into elaborate detail. They want to make dollar for dollar contributions.

Mr. Bowman addressed the Farmer's Market as a good pilot project. He states that the representatives of the Farmer's Market were very enthusiastic about this idea. Alderman Meisner asked how they intended to spend money on the Farmer's market? Mr. Bowman stated that what they intended to do was to create a FoH subcommittee under the CAC commission and the Farmer's Market wants a Permanent Structure. The CAC-FoH would take the $10,000 and use it for marketing materials to solicit volunteers and donations. He said the concept has not been totally refined. They want to see if they can get budgetary dollars to pursue this. He believes that the Farmer's Market Marketing materials will only cost $8,500.

Mayor Wright asked how much (of this money) would account for the budget. Mr. Bowman said that this would be just to ensure the success of the budget process. If this works they would like a line item in the budget each years. Donors in subsequent years could use cafeteria of specific choices to select where they would like their money applied. There are questions about deductability. Alderman Lail asked if they are asking for 08-09 budget dollars. Mr. Bowman said they were attaching this unspent item to the 08-09 budget He stated...not to spend the money frivolously, but it will take months to do this. They want to do this professionally.

Alder Patton asked where the volunteers would come from? He stated that they would look to business and community leaders -- Folks that have demonstrated an interest in Hickory. City Manager Berry stated that this is an awkward situation considering the restrictions on spending and managing costs. Mr. Bowman said that the Farmer's Market would be a good project to pursue to prove the validity of the project. The Mayor stated that there is no downside to the Farmer's Market, but he is surprised about any changes to the Farmer's market. Mr. Bowman stated that they have solicited design input to build a permanent structure for the Farmer's market and it is going to be very expensive and they don't have the budget available to pursue the project. Mr. Bowman mentioned an amount of $350,000.

Alder Fox said that she would like to look at a city like Salem, Virginia and she doesn't think they spent that kind of money for covered shelters. That is a hefty figure and she cannot imagine smaller community's spending that kind of money. Mr. Bowman said that he didn't know whether the Farmer's Market would endorse that money, but they are a candidate. Alderman Lail said he is worried about spending unspent monies. Manager Berry said that Warren Wood has sent out an edict to cut off spending for the rest of the fiscal year. Alder Hoyle said that this is a good project, but City Employees should come first. Mr. Bowman said he understands the predicament the city is in.

Alder Meisner made a motion to put this under advisement. The council unanimously carried the motion. The Mayor stated that the CAC does great work, their just caught up in the same budget as everyone. Mr. Bowman stated that he understood.

The Hound cannot consciously comprehend this proposal. Where is the CAC coming from. This sounds like the pontifications from a cocktail party. That is all fine and good, but folks if you aren't going to bring more than the napkin you wrote this on before council, then don't waste people's time.

May I explain. The country is broke. The only money available from the Federal Government is being cranked out on printing presses with no legitimate backing. The days of printing this Monopoly Money will soon come to a grinding halt. The State of North Carolina is broke and they are known to rob the treasury when they get desperate. We need to pray every day that Raleigh doesn't pillage and plunder our city's financial solvency. So the only money this city has available needs to be used in the most judicious ways; where we will get a return on our investment and the most bang for the buck.

I would like the Mayor, City Manager, and Warren Wood to call all of these groups in and give them a presentation on economics, finance, and accounting. I think these groups are important to our city and they should be appreciated for their volunteerism. I just can't understand where they think all of these matching dollars are supposed to come from. They just can't understand the reality.

I like the idea that Harry discussed briefly with me. I think it would be nice to spin off the CAC as a private entity. I don't think their ideas always mesh with what is best for the city as a whole. Merging the CAC with the Downtown Development Association and setting them free to go get their own money would be a wonderful exercise in Capitalism and Free Enterprise.

It is obvious to everyone involved that the CAC only cares about Downtown. Expand Downtown to the vision I have talked about. You have to include Kenworth, Green Park, Ridgeview, Oakwood, Claremont, and the Salt Block. The core will be Union Square. Let a privately funded DDA-CAC work towards raising the funds from the private business owners that should relish that independence.

Facades are not the problem with Downtown's development. The problem is security and the marketplace. Put some private security guards on patrol at Union Square along with that new video surveillance security system and you will see an immediate improvement. All the people associated with Downtown need to put some money where their mouth is and apply logic. I am not against Downtown, but I am weary every time I see them roll up before council. Cha-Ching, Cha-Ching, if you know what I mean.

D. Presentation Community Appearance Commission (CAC) Regarding Appearance Grant to PS Property Holdings, LLC for Property Located at 8 2nd Street, NW in the Amount of $14,465 - Chairwoman Jennifer Helton of the CAC made the presentation. It is going to be a law office. She showed pictures of the former jewelry store. The entry way is being changed to make it more appealing. The grant was originally $5,000, but upon review and discussion, the commission voted unanimously to up the amount (to the above). The CAC felt that the amount of work being done on the building and the economical and architectural merit allowed for the enhanced financial consideration. Overall the project will come to about $500,000.

In light of the tight economic times, the CAC felt strongly in supporting this positive change to the downtown area. Alder Fox asked if most of these grants are $5,000. Have any of these grants been in excess of $5,000. One building (the RPM building has received an excess grant). Alder Fox stated that the RPM building was a total renovation. Ms. Helton stated that this (building) was too. Ms. Helton admitted that the original grant was for a facade. The costs for the facade restoration was $38,123. She admitted that they didn't originally realize that they could ask for this amount.

Alder Patton asked if anyone else was asking for any money? Ms. Helton stated no. Alder Patton said she questioned spending money just because it is in the budget and we need to be prudent about that at this time. Ms. Helton says she understands that. The CAC has always been encouraged to spend money on facade grants and landscaping grants. In the past, when the money wasn't being spent the CAC solicited neighborhood associations because of the importance of knowing that the money is out there to be used by the community.

Alderman Lail said that we don't want to routinely consider more than $5,000. We can get into a mess. What is the exceptional architectural merit? Ms. Helton said they were trying to take the downtown up a notch. Grants are a big strong part of the (CAC's) budget and sometimes it sends a message to others that we are open to these improvements and it is important to the people of Downtown and others in Hickory that appearance is what we are looking for.

The Mayor stated that he knew of at least 10 other people that are looking for more than the $5,000. Ms. Helton said that this has been brought up and people had wondered why this had not been done before. The CAC believes that in these trying economic times, this is an opportunity to continue to bring businesses Downtown to improve that area.

The Mayor stated that these grants were originally intended to motivate people to do something that they otherwise wouldn't have done. He is concerned the dye would be cast. He admires what they are trying to do. There is more than just downtown to worry about. He is worried about the precedent that this would set. How would we say no to the next one?

Ms. Helton said that this is part of coming up to the appearance commission. She disagreed with the Mayor. This addition to the city is the extra step. She brought up the FoH and that is where it is time to think outside of the box. $5,000 doesn't get you anywhere. We need to build up the funds. The attempt is not to exhaust the budget.

Alder Fox asked why the owners didn't go for Historic tax Credits? Pete Zagaroli stated that the original developers didn't pursue these credits and they can't be pursued once work is started on the building. He stated that there is an 18 month waiting period to get on the register. He asked if the money doesn't get spent does it go away? Mr. Zagaroli stated the costs inherent in the facade development of this building. He says these people have made the extra effort and deserve the extra reward, especially if the money is just going to go away.

Mr. Meisner stated that the money doesn't just go away. It is allocated to other parts of the budget. The Mayor said the reason why the city's finances are so strong is because we have held the budget line, even on people that are way under the budget. Manager Berry said that this would be a consent agenda item if it was a $5,000 grant. Alder Fox stated that she would go for the motion of the $5,000 standard. She thinks they will have a tough time explaining to the people that spent more than they ever thought they would. That is the standard unless it is a complete renovation. The motion was seconded and council unanimously approved.

THe Hound wants you to read what I said above. This is the reason why I just don't think these people get it. In these trying economic times it is a terrible idea to throw money around for anything other than a necessary expense. I'm all for Zagaroli's projects. The man is a top-notch developer, but the money was going to have to be spent on these renovations anyway. These people can recoup their investments by running a solid business. They don't need a bonus $9,000+ from "the people's" money.

I understand the need for appearance, but come on, where does the appearance need to be uplifted? Downtown? Or some of the other blighted areas of the city?

I totally agree with what the Mayor said here and was surprisingly pleased that Mrs. Fox made the propositions she did. These grants were originally instituted to make it desirable for businesses to improve the outside appearance of their property at a cost that would be more affordable, not to subsidize everyday renovation expenses.

Going over the standard grant would most assuredly open up Pandora's Box and from there where would you close it? $14,000 this time, $25,000 next and then trying to explain it to others that don't get that benefit. That would create all kinds of dissension and animosity. The city just cannot afford to be all things to all people.

Again this is where a retooled DDA-CAC could steer people in the right direction. It isn't the city's fault that Historic Preservation Grants were not applied for. A retooled DDA-CAC could help guide developers down the proper path and make sure that they get the most bang for their buck. The best part to me is that the marketplace would pay for it.

Our city's primary role should be to facilitate infrastructure responsibilities and security to all citizens. The businesses Downtown need more skin in the game. The city's role should not be to pick winners and losers. The city has a fiduciary responsibility to invest the citizen's capital wisely. The Mayor and Council's comments reflect that they understood that in making the two decisions above. Kudos to the Council.


Consent Agenda:
Business - Call for Public Hearing of Fiscal Year 2009-2010 City Manager’s Recommended Budget on June 2, 2009. Voluntary Annexation of the Property Owned by Moore’s Ferry Associates, LLC Located at off of 42 Avenue Drive, NW Immediately Adjacent to the Moore’s Ferry Development.

Establishment of New Council Priorities and Action Plan for FY 2008-09. Approve of Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs

Approve Amendment to Engineering Contract With The Louis Berger Group, Inc. Regarding the Grace Chapel/US 321 Connector Road in the Amount of $7,550 - The original was approved by City Council on July 15, 2008 - This amendment in the amount is for the limited subsurface exploration and analysis as required by NCDOT for the major stream crossing installations. The engineers believe that the investigation performed by this work will allow for a clear span design for the two major stream crossings, eliminating environmental work that could cost in excess of $350,000.00 and preserve the stream area environment. The NCDOT will enter into a municipal agreement with Caldwell County to pay for this work and Caldwell County will reimburse Hickory for the cost of the engineering amendment fees.

Approval to Apply for a Energy Efficiency & Conservation Block Grant for Installation of New Energy Efficient Lighting and Retrofit Materials for 14 City Properties - This grant application will be submitted through FedConnect utilizing $209,300 allocated for the installation of new energy efficient lighting and retrofit materials. An estimated 30-35% reduction in electrical lighting energy costs is projected for replacing the older lighting equipment.

Approve Resolution Authorizing Electronic Advertising for Bids - Currently a small legal advertisement costs in excess of $60. By posting advertisements on the City’s web site, we can increase exposure for bids as well as reduce cost to the City. Electronic advertising will allow more detail to be placed in the ad without cost increases and will save an estimated $1,000 annually. Approval of electronic advertising will require modification of the City’s web site.

Approve Contract With Clark & Associates, Inc. for Project Observation and Administration Services for the Cripple Creek Outfall Replacement Project in the Amount of $78,000 - (Originally approved by City Council on February 5, 2008). The contract also Grants Quarterly Reporting to the North Carolina Clean Water Management Trust Fund (CWMTF) Board required by the grant contract. The City has been awarded 50% of the original project or $1,162,000 toward the project in grant funds. In addition to the CWMTF funds, this project will also receive $1.9 million in grant and no-interest loan funds from the State of North Carolina as part of the American Recovery and Reinvestment Act of 2009. This project should be completed by October 2010.

Award Bid and Approve Contract With Hickory Sand Company, Inc. for Construction of the Cripple Creek Outfall Replacement Project in the amount of $2,250,000 and Approval of a Contingency Fund in the amount of $600,000 - The Public Utilities Department has been pursuing completion of this important outfall replacement project since the late 1990’s. The outfall is approximately 100 years old and serves as the main sanitary sewer collection line for Downtown Hickory, a large portion of NW Hickory and portions of NE Hickory. The Public Utilities Department has reported 24 overflow events from this line in the past 5 years. Funding has been applied for through the Clean Water Management Trust Fund 5 times since the 1990’s. In July, 2008 the City was awarded a $1,162,000 grant, which was based on covering 50% of the projected cost at that time. The City also applied for funding through the American Recovery and Reinvestment Act (ARRA) of 2009 in which the City was awarded $1,938,000. One-half of the ARRA amount, ($969,000) will be principle forgiveness (Grant) and the other half will be a zero percent interest loan to be paid back over a 20-year period. The project includes replacement of approximately 14,300 linear feet of 21-inch clay pipe with 24-inch PVC and/or Ductile Iron pipe. The total estimated cost is $2,850,000 including construction costs, contingencies, engineering and construction inspection. The project has received $2,131,000 in grant funds and $969,000 in a zero percent interest loan. Establishment of a Contingency Fund is necessary due to the potential of unforeseen conditions that may exist.

Approve Issuance of a Certificate of Necessity to Party Xpress for Operation of 2 Passenger Buses for the fiscal year of 2009-2010. This business has never applied for or been issued a Certificate of Convenience and Necessity.

Audit Committee’s Recommendation of an Auditing Firm for FY2009 Audit - recommend Martin Starnes Associates - Dixon-Hughes will no longer be able to complete the City’s audit this year due to staff reductions and layoffs.

Housing - Hickory’s First-Time Homebuyers Assistance Loan Program:
Barbara Byrd 117 8th Avenue Drive, SW Approved for up to $6,500.00

Housing Rehabilitation Loan Program:
Donna Brown 55 31st Avenue, NW Approved for up to $5,000.00
Shirley Gray 744 7th Avenue, SE Approved for up to $5,000.00
Lucille Peterson 245 6th Avenue, SW Approved for up to $5,000.00

Approval for Loan Subordination recommended by the Citizen's Advisory Committee which would place the NC Housing Finance Agency Loan in a lower order in liens. The loan for the Nadine Roseboro of 232 8th Avenue Drive, SW was done under the Single-Family Rehab Program in 1998. This will help Ms. Roseboro do a loan modification to lower her monthly payment.

(Removed from the Consent Agenda and will be presented to the council on a later date) Approve Resolution Declaring Property Unfit for Human Occupation and Authorization to Remove or Demolish Structure Located at 990 C Avenue, SE, Hickory - The structures were inspected by Code Enforcement Officer Bobby Baker and were determined to be dilapidated; exceeding 50% of the tax value to repair, and also poses an imminent threat to health and human safety. This case was opened on January 27, 2009 and the Order to Abate was issued on February 11, 2009. The property owners, Mr. & Mrs. Thia Lo have attempted to relinquish ownership through foreclosure with RBC Centura, but RBC Centura is not interested in ownership or liability of the property. Numerous violation notifications have been sent to both the owners and RBC Centura. The property owners have indicated they have no intention or funds to abate the violations and no longer consider the property their responsibility. Notice of Intent to Abate violations were sent to the property owners on February 10, 2009. Code Enforcement Officer Baker met with the property owners on February 11, 2009, March 30, 2009, March 31, 2009 and April 30, 2009 explaining the violations and the abatement process. These structures are unoccupied and are creating a blight in the neighborhood along with providing shelter for vagrants. The community surrounding the property has petitioned to abate the violations. Staff Attorney Dula has reviewed the case and concurs that proper procedures have been followed. J.W. Grading, who is currently under contract with the City for demolition will prepare an estimate for demolition and therefore will become a lien against the property.

Budget Ordinance Amendments
Budget a $25 library memorial donation for Mollie the “Paws to Read” dog in the Library book line item. A children’s book for beginning readers will be purchased and placed at Ridgeview Library. Budget $1,000 in the Departmental Supply line item to cover expected overages in this area. Budget $1,300 of International Springfest donations ( from Hendrick Motors-$500, Bethlehem Pharmacy-$500, Wayne Powell- $100, and Piedmont Ob/Gyn-$200) for International Council expenditures.

Transfer $7,000 from Economic and Community Development Expenditures to pay for the City’s (20% of $35,000) share of funding for the Multi- Jurisdictional Park property survey performed by ALTA. Transfer $29,000 of Current Year Tax Collections to Tax Collection Services. Catawba County reported that several discoveries were recently made, thus our fee for Tax Collection services is higher than anticipated. Therefore the cost of the discoveries will be paid with the additional tax monies that were collected.

Grant Project Manager approved the pre-award costs for the EPA Region 4 New Grantees Workshop on 07/25-07/26/07 in Charleston, SC. Since the Grant paid for the workshop these funds will not be needed and Fund 049 is returning $1,117 back to the General Fund. However the purchase of food for the Brownfield Advisory Group meetings was not an eligible expense or grant reimbursement; therefore the City of Hickory will be reducing the June drawdown by two previously reimbursed refreshment expenditures in the amount of $288. This brings the reduction of General Fund contribution to $829.

Decrease General Fund $2,680 and increase the Transfer from Transportation Capital Projects by $2,680. This is necessary to close AIP #21 and transfer remaining funds to original funding source. Decrease General Fund Balance Appropriated by $313 and increase the Transfer from Transportation Capital Projects by $313. This is necessary to close AIP #22 and transfer remaining funds to original funding source.

Appropriate $680,034 of the Insurance Fund Balance to the Insurance Fund Workers Compensation line item. This appropriation provides funds to balance the Workers Compensation budget for the end of year.

Appropriate a total of $62,939 of N.C. Housing Finance Agency Revenue and Budget in the First-Time Homebuyers ($20,000), Salaries ($5,439) and Rental Rehab ($37,500) expenditure line items.


New Business - Public Hearings:
1. Approve Nomination of the Dr. Glenn R. Frye House to the National Register of Historic Places - The Hickory Historic Preservation Commission recommends approval of the request by property owners, Dr. & Mrs. De La Garza, of the Dr. Glenn R. Frye House, located at 539 North Center Street to be added to the National Registry of Historic Places. The house was built in 1937 and is an impressive two story Colonial Revival Style house. It is a unique structure that is constructed of slate from a quarry located in Spruce Pine, whereby most stone structures in Hickory are of granite. The building is currently owned by Dr. and Mrs. De La Garza and they would not be required to have renovations approved by the Hickory Historic Preservation Commission with this designation. The City is currently working on the expansion of the Claremont Historic District and this home would be within those boundaries. On April 28, 2009 the Historic Preservation Committee held a public hearing and recommended approval of the nomination. The North Carolina Register Advisory Committee will make the final decision on the nomination once it goes thru the process. The Council Unanimously approved

2. Approval of Substantial Action Plan Amendment for FY 2008 Community Development Block Grant Action Plan - The U.S. Department of Housing and Urban Development requires the City, as a 2008 CDBG entitlement funding recipient, to submit a Substantial Action Plan amendment to the City’s approved FY 2008 CDBG Action Plan due to an additional allocation of funds in the amount of $85,649.00 from the U.S. Department of Housing and Urban Development. These funds were directed to be distributed by The Recovery Act to CDBG grantees that received funds in FY 2008. The funds will be used to develop City of Hickory owned property in the Green Park Neighborhood for an affordable subdivision. The funds will be combined with the $75,000.00 of CDBG 2009 funds allocated for the Green Park Subdivision. Plans for the Green Park subdivision are in preliminary design and the timing for the development will depend upon the market demand for new housing. The Citizens’ Advisory Committee recommends approval. The council unanimously approved. The Mayor mentioned how enthusiastically that the Kenworth area felt about this plan. Alder Fox mentioned that this was part of their long range plan.


New Business - Departmental Reports:

Approval of Community Development Block Grant Budget Amendment - The Community Development Department has program income funds which must be budgeted for use. The NC Housing Finance Agency Rental Rehab program has a revenue balance of $62,939. Of this the Department wants to budget $20,000 towards the NCHFA Homebuyers Program, $5,439.00 towards Program Administration and $37,500 towards Owner/Rental Rehab, for a total of $62,939.00. At least 51% of these funds will provide benefits to lower income individuals in the City of Hickory. On 5/7/2009, during the Citizens’ Advisory Committee meeting, it was recommended that the Projected Use of Funds for year 2008 be amended. The Council approved Unanimously

Approve Proposed Revisions to the City’s Vacant Building Revitalization Grant Program and the Commercial Revitalization Map - The Program was originally approved by City Council on 9/16/2008, which is designed to assist owners of vacant and under-utilized property to make improvements that will result in the occupancy and reuse of buildings. Matching funds of up to $25,000 per project are available. The proposed revisions will assist in clarifying the guidelines and ensure that the Redevelopment Committee has adequate guiding standards in place when reviewing grant applications, and to ensure that the projects approved by the committee will have a positive economic impact on the surrounding area as well as the City’s tax base. Dave Leonetti addressed the Council. There will be new criteria (tweaks) that will give a few extra things to look at when looking at these proposals. 1)The impact on the tax base 2) Number of Jobs created 3) Crime Reduction 4) Site Appearance Improvement 5)Appropriateness and Compatibility of use to the surrounding area. 6)Funding Eligibility Exclusions - General storage and Warehousing, Non-Profits, Buildings outside the City Limits, and Adult Businesses. The area has been expanded in a few limited spots. The Hound wants you to know that this is available at the city's website. The Council approved Unanimously