Newsletter about the City Council meeting of August 4, 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 8/4/2009 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below.

Invocation by Rev. Thomas Griffis of St. Luke’s United Methodist Church

Special Presentations:
A. Presentation to City Council of a Gift from the Leaders of Taiwan by Dave and Kathy Ludwig Who Recently Traveled to Taiwan - The Ludwigs gave an excellent and thorough presentation, in which they showed geographical and cultural points of interest, as well as the politics of Taiwan.

The Ludwigs discussed the stresses that Taiwanese families are experiencing, because of western influences upon their society. One of the effects has been upon the divorce rate. Taiwan is currently experiencing a divorce rate of 25%, which is the highest rate in any Asian country. Mr Ludwig leads a center called "The Power of We," which is a based out of Lenoir-Rhyne. Mr. Ludwig tried to convey that the current Financial Tsunami is an opportunity to bring families back together.

The Ludwigs presented a beautiful hand made banner by Don Hakka (of Taiwan's Hakka Village) to the Council. The banner reads in Mandarin, "North Carolina, Hickory." The banner was framed with a picture of Mr. Hakka creating the banner in the lower right hand corner.

Consent Agenda:
A. Request From Hickory Downtown Development Association for Use of Union Square for 2009 Oktoberfest From October 9 – 11, 2009

B. Request From Christ United Methodist Church for Use of Union Square for Reactivate Meeting/Concert on August 20, 2009 From 6:30 p.m. thru 10:30 p.m.

C. Approve Resolution for Grant Application Authorization for Year 3 Traffic Safety Unit Grant Funded Through the Governor’s Highway Safety Program - The City’s Traffic Safety Unit Grant application has been approved by the Governor’s Highway Safety Program (GHSP) for consideration requesting continuation of funding for 4 full-time officers, training and equipment at a cost of $202,260. The City’s responsibility is 50% or $101,131. Approval of the Resolution guarantees that the City of Hickory will commit to the required matching funds if awarded. The Hickory Police Department continues to respond to thousands of traffic crashes and related citations, many resulting in personal and property damages. Through aggressive enforcement in the first half of the traffic funded grant, speeding citations increased by more than 17% and traffic crashes have been reduced by 6% in 2008 as compared to 2007. A budget amendment is not required; funds are budgeted.

D. Approval of Deductive Change Order With HSMM/AECOM Regarding EPA Stage 2 Disinfection By-Product System Analysis in the Amount of $41,870 - On February 22, 2007 City Council approved the consulting contract with HSMM/AECOM for an EPA Stage 2 Disinfection By-Product System Analysis. The City and 11 other public water systems jointly contracted with HSMM/AECOM to complete the studies. The City is the lead agent financially, but is not responsible for individual results of the studies and simply processes pay requests from HSMM/AECOM and bills proportionately to the other entities. The public water systems of Triple Community Water Corporation and Rutherford College Water Corporation, both from Burke County, have chose to perform the studies by other means and therefore, HSMM/AECOM is offering a Deductive Change Order in the amount of $41,870 to account for the nonparticipation of those 2 entities. This amount equals those systems’ previous commitment in the Letters of Agreement. The original contract was for $282,750 and with the Change Order the new contract amount will be $240,880.

E. Accept 2009 Mobile Source Emissions Reduction Grant from NC Department of Environmental and Natural Resources (DENR) in the Amount of $80,000 - The NC DENR has awarded the City a 2009 Mobile Source Emissions Reduction Grant in the amount of $80,000. This grant will allow the City to replace a dual diesel engine street sweeper with a compressed natural gas street sweeper, which will reduce emissions and improve air quality. The total cost of the new equipment is $246,972 and will be funded in the Street Department capital outlay for vehicles with the revenue sources coming from the grant ($80,000) and the remaining balance ($166,972) coming from the Fund 010 fund balance. The bid was awarded to Public Works Equipment and Supply, Inc.

F. Budget Ordinances
1. Re-appropriate $32,000 from the General Fund to the Fire Department's Maintenance and Repair of Buildings - This amendment is necessary to complete renovations to Station 2 in order to sustain the activation of a second ladder company. In FY08-09 $32,000 was budgeted for these renovations however due to time constraints the Fire Department staff was unable to complete the process for securing quotes prior to the end of FY08-09. Therefore, the $32,000 rolled into General Fund Balance and a re-appropriation of funds is necessary.

2. Re-appropriate $4,000 from the General Fund to the Fire Department for the purchase of furniture for Station 1. Due to time constraints staff was unable to complete the process for securing quotes for these items prior to the end of FY08-09; therefore, the $4,000 rolled into General Fund Balance and a re-appropriation of funds is necessary.

3. Re-Appropriate $20,805 from the General Fund and budget in the Planning Department Vacant Building Revitalization Grant . This re-appropriation provides matching funds to assist Maddadle, LLC in the renovation of a building located at 326 2nd Ave. NW. Plans are to renovate this facility into a professional medical practice. Funds were budgeted in FY08-09 however were not expended prior to the end of the fiscal year. Therefore a re-appropriation of funds is necessary.

4. Re-appropriate a total of $3,694 from the General Fund and budget towards the Library Department - Training, Meals and Lodging ($2,187), Seminar Registration Fees ($754), and Travel ($753). The Library budgeted funds in FY08-09 for the ALA Conference which is normally held in June, however the conference was scheduled in July. Therefore the budgeted funds rolled into General Fund Balance at year end and a re-appropriation of funds is necessary.

5. Appropriate a total of $84,000 of Water and Sewer Fund Balance and budget $42,000 in the Northeast WWTP Vehicles and $42,000 in the Henry Fork WWTP Vehicles - This appropriation is necessary for the purchase of two sludge trailers for the wastewater treatment plants. These trailers were scheduled to be replaced next year however, they have now been deemed to be unworthy of road travel so they must be replaced.

6. Appropriate $301,636 of Water and Sewer Fund Balance and transfer to the Northeast WWTP Capital Project to pay AECOM USA, Inc. for modifying the design of the Northeast WWTP facility upgrade. This upgrade is vital to the continued mission and goal of Hickory Public Utilities to protect the areas natural resources. The upgraded treatment facility will allow for this facility to meet future nutrient discharge limits and improve the current discharge quality into Lake Hickory.

7. Appropriate $24,000 of miscellaneous reimbursement revenue from the Department of Justice and budget in the Police Department’s part time salaries and FICA taxes. Funds are for the creation of two part-time telecommunicator positions created from the American Recovery and Reinvestment Act of 2009 funds - Justice Assistance Grant.

8. Re-appropriate $166,972 from the General Fund and budget $80,000 of Federal Revenue in the Transportation Capital Vehicle for the purchase of a Compressed Natural Gas Sweeper. The North Carolina Department of Environment and Natural Resources awarded the City of Hickory $80,000 in Federal EPA State Clean Diesel grant funds. The City of Hickory’s portion is $166,972 and was budgeted in FY08-09, however the purchase was not made prior to the end of FY08-09 and funds rolled in to General Fund, therefore a reappropriation is necessary.

Capital Project Ordinance Amendment No. 1
1. Appropriate $301,636 of Water and Sewer Fund Balance and transfer to the Northeast WWTP Capital Project to pay AECOM USA, Inc. for modifying the design of the Northeast WWTP facility upgrade - This upgrade is vital to the continued mission and goal of Hickory Public Utilities to protect the areas natural resources. The upgraded treatment facility will allow for this facility to meet future nutrient discharge limits and improve the current discharge quality into Lake Hickory.

Grant Project Ordinance No. 1
1. To budget $266,031 of Department of Justice 2009 American Recovery and Reinvestment Act funds in the Police Departments Part Time Salaries ($22,295), Taxes-FICA ($1,705), Specialized Equipment ($174,536) and Contracted Services ($67,495) - The City of Hickory portion of this grant will fund two part-time telecommunicator salaries and FICA. The grant provides funds for the purchase of a SkyWatch Tower, two Rofin Polilight flares, a video analysis enhancement system, and a new target system for the current police firing range. Catawba County will be funded for one full time officer position and equipment revenue. (Originally discussed at the City Council Meeting of May 5, 2009 under New Business - Public Hearings: 1. Approval to Apply for the Edward Byrne Memorial Justice Assistance Grant in the Amount of $198,536.00).

Informational Items:
1. Update on Provision of Water to Apple Data Center - City Manager Berry explained that this project was made possible by the City of Hickory's participation in the partnership which built the multi-jurisdictional business park where this facility will be located. Hickory's role in this project will be that of a water provider. The leadership of the city, years ago, made a commitment that would allow the city to grow. Had those committments not been made, then this project could not have been brought to fruition. Hickory entered into an agreement with Apple and Hickory will charge the same amount that they charge any entity outside of the city, which is double-rates.

Mayor Wright stated that Maiden was very complementary of Hickory in helping make this deal happen. The Mayor basically addressed what Harry and I have talked about when it comes to Hickory's economic development, "Lenoir gets Google. Maiden gets Apple. What about Hickory?" The Mayor says that we are very much taking the position as team players. We know that if something good happens within 50 miles of Hickory, it's good for Hickory. We are not going to upset the Apple cart. We are going to help make this happen. There were some positions that Hickory could have taken to make Hickory competitive with Maiden, but this is the way that it needed to sort out to make it happen. It is a win-win for everybody including the average taxpayer.

The Hound truly believes the Mayor and other city officials misunderstand where the people I represent are coming from. We are observing what is going on, not trying to rap knuckles. This issue isn't about Apple and Maiden, Apple and Hickory, Google and Lenoir, Google and Hickory, Rudy, Mick, or any combination of the above.

We are happy that Lenoir and Maiden have landed these major companies and we are not coveting what they have achieved. What we are saying is that Hickory needs its own new businesses, inside the city limits, to be able to grow and prosper. The relevant issue is tax revenue and its relationship to the city's future budget. If we don't obtain new businesses and develop economic growth in Hickory, then we are going to have stagnant or declining tax revenue. Therefore as inflation takes its natural course, we are going to have to deal with the issues of cutting into the bone on the city's budget (cutting services) and/or raising taxes on residents and commercial enterprises in the near future.

We must have job growth in Hickory. Are Apple and Google going to hand us money to spend towards our city's needs? My guess is no. Are shoppers from Lenoir or Maiden going to flock to Hickory when Conover and Granite Falls are building up their marketplaces?

No one has shown any tangible numbers about the revenue streams coming from selling the Apple facility water. Will such revenues be comparable to property tax revenues provided from a facility with hundreds of millions of dollars of plant, property, and equipment? I highly doubt it.

This water issue is a moot point anyway. It isn't a card that we could ever afford to play. We can't turn area communities down when it comes to their water needs. That would have very negative consequences attached to it. We are the regional provider and that carries a lot of responsibility. We can never use water as a tool of extortion against the communities we provide this service to, just to get what we want. That would be cutting our noses off in spite of our face. Everyone realistically understands this.

Apple and Google present unique opportunities, if the right people are allowed to cultivate and implement what many might consider "Outside of the Box" solutions. We can be a High-Tech corridor, but we must see public officials encourage the developmental processes or they will not succeed. We have to set egos aside in order to achieve the goal of turning our circumstances around. It can't be totally about, "what's in it for me?" It has to be about, "what's in it for Hickory?"

So in the end, we don't need to spin every economic issue that comes down the pike. Why does everyone feel the need to play the role of Baghdad Bob. I know that the Mayor and the City Manager want things to turn around in Hickory, but sometimes they appear to be grasping at straws and overly optomistic in their prognostications, especially when it comes to what we can all see are the same ole processes. The Big Question is, are City Leaders willing to take the risks necessary to create some positive momentum? Words do not instill confidence in business people and entrepreneurs. Action and results instill confidence.


X. New Business - Public Hearings:
1. Consideration to Adopt a Joint Resolution between the Cities of Hickory and Conover to Levy an Additional 1% Room Occupancy and Tourism Development Tax as Authorized by House Bill 533 Ratified as 2009 Session Law Chapter 169 - Hickory and Conover were authorized by this bill to levy an occupancy tax of not less than 3% nor more than 5% of the gross receipts derived from room rental from any hotel, motel, inn, tourist camp or similar place within the City and to establish the Board of the Hickory-Conover Tourism Development Authority (TDA). The cities currently are authorized to levy a 5% occupancy tax. This law authorizes the cities by joint resolution to levy an additional 1% occupancy tax. The total tax once adopted by both cities, will be 6%. The joint resolution also ratifies the existing board appointments and terms of the Hickory-Conover Tourism Development Authority. The cities are to distribute the net proceeds of the tax to the TDA on a quarterly basis to be utilized by the TDA as outlined accordingly. City Manager Berry said the Lobbyist paid off well in this process. He also thanked Ray Warren for introducing the bill. The Convention Center and visitor's bureau is fully self-supported by this tax. City Manager Berry went into some of the breakdown of specifics of this tax.

During the Public Discussion of this issue, a Mr. Stuart Allen came forth about his concerns regarding the hole (at the former Buffalo's restaurant) on U.S. 70. He wants the city to demand proceedings against Steve Mason. The Mayor stated that he had conversations with the City Manager today about the issue and it is not as simple as it looks. Mr. Allen stated that it is an ugly situation and a health hazard. Unanimous Consent (5-0)

The Hound doesn't buy into the philosophy that the Lobbyist had anything to do with us getting this additional 1-cent. The Lobbyist is costing $50,000 a year. Give me something besides some Cliff Clavin numbers that show that the lobbyist creates value. Show me some tangible results where the lobbyist has really benefitted us.

Besides the money, this Lobbyist creates more issues than he solves. The city cannot do certain things, because of state laws about gifts and conflicts of interest involving a city's association with lobbyist representation. I will also argue that the issues that this lobbying group is claiming credit for solving are issues that we benefit from because of a piggy-back factor and not because this lobbyist is specifically representing Hickory.


B. New Business - Departmental Reports:
1. Approval of Design Proposal With HSMM/AECOM to Modify the Design of the Northeast Wastewater Treatment Facility Upgrade in the Amount of $301,636 - This proposal modifies the design of the Northeast Wastewater Treatment Facility Upgrade in order to alter the scope of the proposed upgrade to reduce project construction costs. The upgrade is vital to the continued mission and goal of Hickory Public Utilities to protect the areas natural resources. Originally the project bid resulted in a construction cost of $37,499,000, which was over the City’s construction budget of $30,000,000, therefore resulting in the rejection of all bids by Council on June 16, 2009. The engineer estimates that the completion of this design modification will result in a construction cost of approximately $27,000,000, which will result in a total project cost of around $30,000,000. The savings will be realized due to removing some of the unknown risk of constructing new facilities on top of existing structures, adjustment to phases of work to allow contractor flexibility in work tasks, reusing some existing structures with upfitted new equipment and removal or reduction of some structures to be built. The HSMM/AECOM Engineers and City Staff feel that with the proposed design modifications there will be a real savings in the project construction cost without compromising the integrity of the proposed facility. The Mayor had the first reading pulled from the consent agenda and explained that his son is employed by HSMM, but has no significant financial interest in the company.

Kevin Greer stated that they have met with the engineers. Their desire is to get the budget down to $27 Million as a max. With contingencies that should put them right at the $30 million number. They are looking to identify cuts and modifications "to get it to a buildong project for us." They are still keeping the design concept -- replacing the facility. They are exploring options, such as, they are looking to redo some of the basins, instead of replacing them. They are going to give the contractor more leniency and decision making.

The original contract was signed in 2004. The estimate was $18 million with a 6% construction cost. This contract change has construction costs of 5.89% on $27 million. This is a modification of the original design. Mr. Greer stated finding a new engineer would start us back down a 2 1/2 to 3 year path. This saves us time. Alder Patton asked about Refurbishing some areas and what is the life expectancy of these? Mr. Greer said the sections will be resurfaced (they are 30 to 35 years old) and will be good as new and all equipment will be replaced with new. What is being saved is time in these basins. There are just a couple of places that they can use existing tanks. Unanimous Consent 5-0

The Hound isn't looking to play Monday Morning Quarterback here, because I have more questions about this issue than comments. Why has this project been in the works for 5 years. I believe that Mr. Greer stated that this process was begun in 2004. It seems to me that it makes a lot of sense that the company's cost objectives were way underestimated because of the length of time it has taken to get this project up and running.

The project, that was scrapped, is nearly 25% over the $30m million target I have seen addressed recently and more than 100% over that $18 million estimate from 2004. How did cost objectives get so far out of line? Are we going to sacrifice the quality of the project by demanding a $30 million budget when the company was asking for $37 million for the original work to be done?

What is even more confusing, is that Mr. Greer is stating that some of these basins can be refurbished without a loss of quality and other issues have been tightened up to achieve cost objectives. I am just curious as to why we weren't collaborating with this company and engineer over the last five years to ensure that cost and quality control objectives were going to be met. Why did it come to the point of Surprise, Surprise?


General comments
Pastor Jack McConnell addressed issues involving the Homeless Day Shelter Facility for men he runs called Grace House. 35 to 40 people attend daily. They are teaching basic computer classes (skills) to help participants access unemployment benefits, apply for disability claims, and do job searches. They also do referrals for mental health, substance abuse, and HIV testing.

They were seeded in the beginning by Abundant Grace Church and they have survived since January on donations from other churches and individuals. They are running short of funds and he looks at this as an opportunity for everyone to work together. There is a great gap after 8am in the morning. He sees a need for a place for people to go in the daytime. What he is asking for is some funding that might be available. The Mayor said that he would like to direct Mr. McConnell to have some further dialogue with the City Manager's office.

The Hound is appreciative of these types of operations. Pastor McConnell stated that there was no place for these people to go, once the shelters send them out at 8:30am in the morning. Pastor McConnell also stated that many of these people end up Downtown and there have been lots of complaints and disturbances. This facility will keep them from ending up down there.

Pastor McConnell stated that he had law officers come and speak to the people attending the program, so that they could build a relationship with them. I agree with what he stated about partnership, cooperation, and breaking down the wall between Public Service and the Homeless. This seems like it would be an excellent investment to facilitate better security and therefore a better commercial environment Downtown. We should look to encourage the dispersal of these types of facilities away from valuable commercial marketplaces. I believe that we must do everything we can to ensure the viability of our money centers and having vagrants panhandling patrons of these establishments does not help establish a vibrant and thriving marketplace.

Turning a blind eye towards these people and locking public bathrooms, that legitimate customers need, does not address a real issue that hurts Union Square. We need positive facilities, such as this, to help turn these peoples' lives around. In my opinion, this is an investment worth making.


Sally Fox spoke about the Hickory Farmer's Market participation in the national "Love Your Farmers Market" contest. The Grand prize is $5,000 and the Market could really use that money. She said that all of the original 5,000 people who wanted a farmers market need to get out there and vote. Here is the Link - Hickory Farmer's Market.

The Hound thinks that our Farmer's market is something that city officials should truly be proud of. I really think that we should do everything we can to promote what I consider Americana at it's best. These small marketeers setting up shop is what our country was built upon. I hope that as our city grows that our Farmer's Market will grow along with it. I would love, in the future, to see other markets held in a location for people who can't get Downtown. I think a Monday or Friday market in the St. Stephen's area would be a success going forward and it would not hurt the viability of the Downtown times or location.