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Tuesday, June 16, 2009

Newsletter about the City Council meeting of June 16, 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 6/16/2009 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below.

Invocation by . Bill Garrard of St. Luke’s United Methodist Church

Special Presentations:

Presentation of Proclamation Declaring June 16, 2009 as “Tabernacle Christian School Girl’s Basketball Day” in the City of Hickory. The Tabernacle Christian School has won 4 straight state championships in there division and 3rd straight national titles. The Mayor commended them on their competitiveness, sportsmanship, and strong devotion to academics.

Consent Agenda:
Proclamations - Declare 6/6/2009 as “Mr. & Mrs. Bliss Teague Day” in the City of Hickory Recognizing Their 50th Wedding Anniversary. Declare 6/7/2009 as “The Reverend Doctor Randolph Curtis Ferrebee Day” in Hickory as He Retires as Rector from St. Albans Episcopal Church With Thirty-six Years of Service.


Resolution Approve Resolution to Accept American Recovery and Reinvestment Act (ARRA) of 2009 Funds and Loan Regarding the Cripple Creek Outfall Sewer Line Project in the Amount of $1,938,000.00 – The annual interest rate is not to exceed 0%, with half of the loan principal to be forgiven. The financing term shall not exceed 20 years from closing. The Resolution authorizes the Finance Officer to execute and deliver any financing documents and to take all such further action as they may consider necessary or desirable to carry out the financing of the project as contemplated by the proposal and this Resolution. The City has permission from the NC Local Government Commission to accept and utilize these funds.

Approval of the North Carolina Records Retention and Disposition Schedule Prepared by the NC Department of Cultural Resources Dated 5/19/2009 - Prepared by the NC Department of Cultural Resources - updated in accordance with the provisions of Chapters 121 and 132 of the N.C. General Statutes. The schedule allows such records to be destroyed or otherwise disposed of by the official having custody of them without further reference to or approval of either the City of Hickory or the NC Department of Cultural Resources. If not approved by City Council, the City is obligated to obtain the Department of Cultural Resources’ permission to destroy any record, no matter how insignificant. This schedule was last updated and approved by City Council on 8/15/1997

Approval to Apply to US Department of Housing and Urban Development (HUD) for Neighborhood Stabilization Program 2 Grant - Applying for the grant would be in partnership with Habitat for Humanity and will focus on revitalization of 8th Avenue Drive, SW (Ridgeview and Green Park area). The grant is for local governments facing problems related to housing foreclosure and abandonment. HUD has made funds available under the Title III of the Housing and Economic Recovery Act of 2008 and the City is eligible to apply for a minimum of $5 million. The funds may be used to acquire land and property, demolish or rehabilitate abandoned properties, down payment and closing cost assistance to low to moderate income homebuyers and creating land banks. HUD encourages partnerships between local government and non-profit agencies that specialize in housing activities. Grant guidelines state that applicants must target areas of high poverty. The Citizens’ Advisory Committee recommends approval.

Approval of Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs. The following applicant is being recommended for approval for assistance under the City of Hickory’s First-Time Homebuyers Assistance Loan Program:
Carlos & Jenny De Los Santos 513 12th Avenue, NE Approved for up to $10,000.00

Funds are budgeted through the City of Hickory’s former Rental Rehabilitation Program income received in FY 2008. The following applicants are being recommended for approval for assistance under the City of Hickory’s 2009 Urgent Repair Program for repairs not to exceed $5,000.00:

Delilah Oliver 852 7th Street, SE
Mary Rippy 516 F Avenue, SE
Sible Sims 1721 10th Avenue, NE
Sharon Watts 1115 12th Street, NE

Approve Community Development Block Grant (CDBG) Funding Agreement With Aids Leadership Foothills Area Alliance, Inc. for FY 2009-2010 in the Amount of $7,883.00 - 2 public meetings were held on 1/28/2009 and 2/4/2009 to meet with non-profit organizations regarding their funding requests for the upcoming year. The funding will be used for ALFA to continue to provide case management and client services for people living with HIV/AIDS and to offer HIV prevention education to the community

Approve Community Development Block Grant (CDBG) Funding Agreement With Greater Hickory Cooperative Christian Ministry, Inc. for FY 2009-2010 in the Amount of $7,883.00 - 2 public meetings on 1/28/2009 and 2/4/2009 with non-profit organizations regarding funding requests for the upcoming year. The funding is to be used for the GHCCM to continue to provide medical services for the City’s lower income citizens.

Approve Community Development Block Grant (CDBG) Funding Agreement With City of Refuge for FY 2009-2010 in the Amount of $11,825.00 - 2 public meetings were held on 1/28/2009 and 2/4/2009 to meet with non-profit organizations regarding their funding requests for the upcoming year. The Citizens’ Advisory Committee approved funding for in order for them to continue to provide after school programs and summer enrichment camps to school-aged children.

Approve Community Development Block Grant (CDBG) Funding Agreement With Exodus Outreach Foundation, Inc. for FY 2009-2010 in the Amount of $11,825.00 - 2 public meetings were held on 1/28/2009 and 2/4/2009. The Citizens’ Advisory Committee approved funding for them to continue to provide shelter, counseling and rehabilitation services to chronically dependent and homeless men and women. Part of the funding includes an Employment Coordinator to assist in securing job training and employment.

Approve Community Development Block Grant (CDBG) Funding Agreement With Hickory Soup Kitchen, Inc. for FY 2009-2010 in the Amount of $7,883.00 - 2 public meetings on 1/28/2009 and 2/4/2009. The Citizens’ Advisory Committee approved funding in order for them to continue to provide meals to the City’s homeless and/or low income population.

Approve Community Development Block Grant (CDBG) Funding Agreement with Inter-Faith Housing Development Corporation for FY 2009-2010 in the Amount of $30,000.00 - 2 public meetings on 1/28/2009 and 2/4/2009 The Citizens’ Advisory Committee approved funding in order for I-FHDC to continue to assist lower income families in the purchase of a home through the City’s First-Time Homebuyer’s program that began in 1986 and has assisted approximately 165 families to achieve their dream as a homeowner.

Award Bid to Public Works Equipment and Supply, Inc. for the Purchase of a Compressed Natural Gas Powered Street Sweeper in the Amount of $246,972.00 - The street sweeper will be used for the sweeping of City streets and the cleaning of storm drains. The CNG street sweeper will replace a 1989 sweeper and will be one, if not the first, CNG powered street sweeper along the east coast. The City has qualified for a Clean Air Grant in the amount of $80,000.00 from the State of North Carolina. The City has been notified of the grant award and will go before Council in July for acceptance. This grant is a reimbursable type grant. 2 companies provided bids and Public Works Equipment and Supply, Inc. was the lowest bidder while meeting the specifications. Brad Lail asked that this be removed for further clarification. The grant covers the cost between the cost of a diesel vehicle and this unique vehicle. It gained unanimous content. The Hound is glad this was pointed out and I feel that this is a good investment.

Approval to Apply for a Justice Assistance Grant (JAG) in the Amount of $48,250.00 - Funding has been offered to the Hickory Police Department based upon the Uniform Crime Reports. If the grant application is approved and awarded, the City’s Police Department would be awarded $48,250.00 with no required match. The City of Hickory and Catawba County received notification of approval to receive a combined allocation of $64,563.00 under the 2009 JAG program. Each city or county are awarded funds based on their crime statistics. JAG funds can be spent on virtually any purpose that benefits law enforcement. The City has agreed to serve as lead agency in the grant application process. These grant funds will be used to purchase workout equipment, speed measuring devices, additional shotguns, tasers and tactical equipment.

Approval of Quitclaim Deed for Property Located at Main Avenue Way, SE and Highway 127 - Upon surveying this City owned property, it was discovered that a small strip of land was not covered by any City of Hickory deeds. A search was performed at the Catawba Register of Deeds without revealing any deed to the City or to any other individual. The City has used, mowed and maintained this small parcel strip as if it were City-owned property for twenty-plus (20+) years. Thus, giving the City rights to the strip through adverse possession under North Carolina State Statutes. Therefore, to clearly establish a chain of title, a quitclaim deed from the City of Hickory to the City of Hickory is needed.

Budget Ordinance Amendment No. 21 - (Due to the closing of FY 2008-2009, a second reading is requested during the 6/16/2009 meeting.

Appropriate
and budget a total of $1,962 of Local Government Revenue in the Police Department Overtime line item - time spent when accompanying involuntary commitment patients for the months of April ($430) and May ($1,532). Appropriate $40,625 of Transportation Fund to Transit Equity. Appropriate $50,000 of the Insurance Fund to Insurance Fund Workers Compensation - used for any additional claims in the Workers Compensation budget prior to the end of the fiscal year.


Proposed Amendment to Hickory City Code, Chapter 2, Article VII, Section 2-211 “Public Art Commission” - Discussion was previously held by City Council on 6/2/2009 regarding amending the ordinance governing the Public Art Commission by adding an additional at-large seat. The Public Art Commission was established by Article VII of Chapter 2 of the Hickory City Code and must be amended by Ordinance. The proposed amendment would increase the number of at-large members from 5 to 6 members. Adding another at-large member will help resolve some attendance issues by increasing the Commission’s membership while keeping quorum at 6. Staff Attorney Arnita Dula addressed the issue. The commission was established by ordinance and originally consisted of 10 seats - One seat appointed by each Ward, 3 at-larges by the Mayor, and 1 youth council member. Amendment in 2004 added 2 additional at-larges to be appointed by the Mayor. This would add another at-large to be added by the Mayor. This would mean that 6 members would be appointed by ward and 6 would be appointed by the Mayor.

Phil Barringer, the co-chair of the committee said that he was against adding another member. Adding another member will not solve the quorum issue. He said most of the members on the committee were opposed to doing this. He stated that they had a small, but hard working, active group and they would like to keep it that way. They have sent out notes about attendance and are going to keep council abreast of the situation. This will not solve the problem.

Z. Anne Hoyle said that she has spoken with an individual (who she appointed) who felt liket they were not being heard. She said that if the committee is expanded, that you will still have that same issue. This individual feels that the commission does a good job, but they don't clearly represent everyone that is on the commission. She stated the Mayor having 5 or 6 people on the commission will only represent his point of view. The Mayor said that was a bad example, because he doesn't even know who his representatives are, but he does understand her point.

Jill Patton said it is Alder's responsibility to see that their own wards are well represented by their appointees. It shouldn't be up to staff to decide whether an absence is excused or unexcused keep up with attendees and it isn't the responsibility of staff to do this. They want people that are committed and a wonderful group... We need to make sure that people are committed to it. It is not right to abdicate the responsibility of our very own wards.

Sally Fox said it is incumbent upon council to check the reason that they missed. She would like the ordinace left as is -- and Alder Patton seconded it. The Mayor said he would like to see further discussion. The Mayor asked if Alder Patton wanted to do away with excused absences? Alder Patton stated no, she said it was an unfair burden on staff to write whether an absence was excused or unexcused and how to make the call. The Mayor asks who makes the call.? Alder Patton said they are just absent... They are their or they're not. It is up to the alders to look at attendance and find out if there is a problem.

Alderman Meisner stated that the good that has come out of this is that they are aware or will become more aware of the problem of attendance. Alder Patton stated that this gives them impetus to fill unfilled positions. Sally Fox said that one of the beauties of the excused absence is that the member has to call in advance, so that a body is going to know in advance, if they are a no-show, the we're back where we started from about absences.

Alderman Lail asked if it would be appropriate to convene all of the members of the boards and commissions and talk about duties and responsibilities. The Mayor stated that that was for new members. Alderman Lail said this would be a way for these group to get together and network. He doesn't believe that that would be all bad.

The Mayor asked, How about bwe have abscence with notification and absence without notification? We want to treat these people like adults. Alderman Seaver said that we need to remember that these people are volunteers. The Motion to vote against was unanimous.


The Hound thinks that the energy spent on this issue was a colossal waste of time. Once again we were back to fighting the windmill argument that it is council members responsibility to make sure that their appointee shows up to these committees. I agree that our elected officials do have a responsibility to make government work, but is that really the most important issue or are we going to see the structure of Commissions and Committees addressed?

Once again, look at all of the Commissions, Committees, and Councils we have in this city: Brownfield Advisory Group, Community Appearance Commission, Community Relations Council, Hickory International Council, Hickory Regional Planning Commission, Historic Preservation Commission, Library Board, Parks & Recreation Commission, Public Arts Commission, Recycling Advisory Board, Youth Council, HBC 2030, and the new Small Business Task Force Council.

Will the issue, that we might have too many of these entities ever be addressed or is it always going to a be a process of slapping another band-aid on Frankenstein? Further, I have heard the same argument made that Mrs. Hoyle brought up. Why would anyone want to serve on a committee where they are actually not allowed any input, because they aren't part of the "in" group. I am not saying there is anything definitely wrong with the shaping of directives from these committees, but they definitely need to be audited occasionally to make sure that their mission is functioning properly.

In my last newsletter about the council meeting of 6/2/2009, I addressed my concerns. I appreciate what Alderman Lail proposed about getting the groups together and discussing the mission, but I also think that it might be time to step back and look at the mission statements of these committees and assess whether or not we are just adding more layers to a bad onion.

You shouldn't insist on keeping these committees the way they are just, "Because that is the way that we have always done it." It is time to ask, just because we have done it this way, is that the best way to do it?

It seems to me that this proposal was going to lead to subtraction by addition. We have already seen this attempted once, according to Attorney Dula in 2004, Maybe we should see the opposite happen? Let the student council member participate in a mentor-protege role, but they shouldn't receive a vote, then through attrition lose those 2 added at-large members that were added in 2004. With addition by substraction ( a consolidated group), we would see a more effective group in my opinion.

But, what I would truly prefer to see is a consolidation of the entire board and commission structure in the city. I do not see all of this plethora of volunteer candidates that Mrs. Fox and Mrs. Patton claim are waiting in the wings. I think that the council has been begging a lot of people to participate and if the passion is not there, then the current structure will collapse under its own weight, as evidence suggests.

New Business - Public Hearings
1. Second Reading - Budget Ordinance Amendment No. 21

2. Report on Community Development Block Grant Loan Portfolio - The City of Hickory housing loan programs began in 1980 with Community Development Block Grant (CDBG) funds being their source of funds. In 1980 this program started with 5 loans and has grown to 108 loans and a portfolio of $1,579,191.70. Due to the present economic climate, loan payments have decreased and delinquency rates have increased. Staff will continue with collection efforts. Todd Hefner addressed council. He stated that the budget for the upcoming year is $455,373. The total of loans in the portfolio are 97 and they equal $1,561,527.75. Of the loans in the portfolio, 80 are to Homeowners for = $835,745.77, 10 are for rental units = $365,042.14, and 7 are for renovations = $360,739.84.

37% (actually 36%) of these 97 loans are delinquent, of those 24 are in arrears for 90+ days, which is 65% (actually 67%) of the delinquent loans. Mr. Hefner further broke down the loans in several different ways according to several criteria. Several questions were asked. Alderman Lail said that it appeared that many of these delinquencies were homeowners. Mr. Hefner concurred. The Mayor said the delinquent numbers were the (arrear) payment amounts and not the loan balances are much higher. Mr. Hefner concurred.

Mr. Hefner further showed that $1,505, 956.61 of the loans were current and $55,571.24 were past due. 96.4% of loans are current. 3.6% are in arrears. The Mayor stated that the important aspect is the loan balance. We may need to push harder for collections. Mr. Hefner stated that the city tries to collect through phone calls and what has proven to be most effective is collection through (liens on) state taxes. Anyone delinquent for more than 90 days is (and will be) referred to Family Guidance Center for debt counseling. Mr. Hefner stated the average of these loans is $15,000 to 20,000. Hickory chose loans and the housing rehab system is self supporting.

The
Mayorstated that most of these aren't bankable loans. Under normal conditions, these people would not be receiving a loan. Mr. Hefner stated that they were able to receive these loans due to their economic status. The Mayor stated that these people aren't going to be able to get any bank to do a second mortgage for them. The Mayor is glad we are doing loans instead of grants. More people have benefited from the hel -- because the money is paid back and then loaned again.

Sally Fox asked how many of these people with delinquent loans are currently receiving guidance and Mr. Hefner stated presently none, but they are recommending the 24. Alderman Lail said that it might be good to get these people involved with the Western Piedmont Council of Governments. Mrs. Fox stated that she is a softy and foreclosure should be a last resort, there are other avenues. Alderman Seaver asked how flexible these loans are. Mr. Hefner stated that the loans are 3% over 20 years. (And further) Many of the people who are 90+ days over due have seen that happen over several years, not at one time. They may have missed 1 payment per year over the last 3 years. The Mayor said we are not harrassing these people. and we don't want Mr. Hefner to.

The Mayor and Council made a few remarks and then went into closed session.

The Hound once again believes that this is an issue of the current economic times in this area. The discussion seemed to be a little Twilight Zonish to me and it didn't focus on the issue at hand. Ignorance is not a calamity unless it is used for action.

As Mr. Hefner and Mayor Wright surmised, these people aren't going to usually receive a regular loan from a bank, so it should be naturally expected that you will see a higher rate of default. That is the reason why, many times, you see people from this socio-economic level paying higher percentages for credit, be it bank loans or credit card debt.

The city is going to have to assess a greater percent of interest on these loans to factor in the risk-return ratio associated with defaults. Otherwise you may as well have debt forgiveness for those who can't pay back the loan, because let's be honest, some people are just not going to pay back loans and that is why they have bad credit. You certainly can't argue that a 3% loan is exorbitant.

I like the debt counseling idea. It may truly help some who just don't know how to budget. But, it certainly must be realized that you can't bleed a turnip in these times of economic hardship. Those that have shown a good faith effort to pay back their loans should definitely be worked with, given a grace period until times get better, and have their payback period extended without penalty.

It is easy to tell which group these loanees belong to by auditing their finances and I hope that is the first course of action that is taking place. Call the people up and ask them to visit with a city official to develop lines of communication to assess what the problem is. Counsel them that we understand the plight and make sure that they understand the purpose of loans like these. By not paying back the loan they are hurting others that could also use the help, so paying back your obligation is important.



Cleared out Council Chambers. Picture taken by James Thomas Shell for the Hickory Hound.


1 comment:

ant. a. said...

Great job as usual Thom.