Newsletter about the City Council meeting of October 20, 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 10/21/2009 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below.

Invocation by Alderman Danny Seaver

Special Presentations:
A. Presentation by Tracy Nester, Vice President of the Hickory Downtown Development
Association Regarding the Success of the 2009 Oktoberfest - Tracy stated that she was very concerned about Octoberfest this year because, the sponsorship money was down $16,000. It was a challenge to obtain these funds, because of the Hard Hit Economy. She stated that they knew this early in the game, so they factored this into the spending on entertainment and marketing. Bottom Line, she believes that the HDDA will profit about the same as they did the year before. They made some changes in security, because of issues with some fights with teenagers. There were confrontations at the intersection of Main ave and 2nd St. What they did was create a totally teen area and pull them away from the synergy of the festival. Moved them down around the banks, where they could be monitored more. The police worked more in zones and all of this went very, very well.

The Hound says thank you to the HDDA for this presentation. Through the challenges we are all facing, you did a great job with more limited resources. You should be commended. It sounds like you are learning from the challenges you are facing and dealing with them in a positive and realistic manner.

B. Presentation by Kelly Gaines, Executive Director of the NC Tennis Association, to award the City of Hickory for its participation in the first “Best Tennis Town USA” contest and receiving an Honorable Mentions Award. Mrs. Gaines introduced Rex Maynard who is the President of the USTA's southern section who made some comments. He stated that the southern section, with 180,000 members, is by far the largest section of the USTA. Mayor Wright came to the podium to receive the award. He stated that no city funds were used for this. Local business donated the money ($2,000) and Hickory won $2,000 worth of equipment. The Mayor also recognized Kathy Kim who he stated has done more for tennis in Hickory than anyone, in any sport, anywhere else.

C. Presentation of the Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2009. Brian Starnes, from Martin Starnes and Associates, came to the podium for the presentation. He stated that they audit 33 counties across the state and around 70 municipalities. Mr. Starnes said that the auditors gave an Unqualified Opinion (clean opinion) of the books. There was one significant deficiency, in collections, which was a weakness in control, which he stated was taken care of quickly. He complemented the finance department saying that they found no errors in the report. The "scoreboard" shows a Total Fund Balance of $16.8 million, Total Reserves of $3.1 million, and an Unreserved Fund Balance of $13.7 million. This is down from last years Unreserved Fund Balance of $14.9 million. Mr. Starnes states that this is expected in the present economic circumstances. Fund balance percentage (Unreserved Balance/Total Budget) is 34% this year and last year it was 38%. This shows that the city has a 4 month supply of money on hand. The Mayor stated that the $2.5 million for Clement Boulevard came out of this number and effected the fund balance.

Mr. Starnes pointed at a few Barometers. Going into 2010, the debt service is $3.589 million. Operations last year show that we had $7.4 million in net cash (to the positive). The Mayor stated that some of these numbers looked favorable in the past, because they have attempted to avoid a big surprise when the new sewer line comes online. The solid waste fund (Garbage Collecction) shows it is costing more than the city is collecting ($900,000 cost versus $800,000 in Fund balance). This Fund will need attention in rate setting. There is no money in recycling now. It costs as much to collect, as what you are earning from it. It will need some attention. The Mayor stated that the big factor in that is the recycling.

The Airport has positive cash flow now. The Mayor states that doesn't include the money earned from property taxes on the aircraft.

Deanna Rios, Hickory’s finance director, next came to the podium. This report is based on activities "government wide." Governmental activities include transportation, public safety, and recreation which rely mostly on taxes. Business activities include water, sewer, and sanitation which rely on fees and charges. Net assets were reported were $191.9 million, which is up $1.7 million over the last year. Fund Balance was over $10.5 million. Revenues for Governmental activities for 2009 were $52 million (the majority of which were Property Taxes) and Business Activity Revenue is $26 million (86% of which is from services). Is the city as a whole better off than last year? Ms. Rios stated that we are holding steady in light of this economy about in the same position as last year. The Mayor asked about Unfunded liabilities. Ms. Rios stated that we have had to change the accounting on health benefits and that amount is around $14 million.

The Hound thinks the city should be commended for its care with city finances. Ms. Rios did not paint a fancy-free picture. She stated what the numbers show that we are holding steady. And this is happening in an economic hurricane. I would love to see what this city could do if we ever turn our economic fortunes around. If we apply these same principles while revenues are growing by 5% or 10%, then we could have a truly wonderful increase in the quality of our lives.

Consent Agenda:
A. Certificate of Sufficiency and Preliminary Resolution Relative to Street Improvements Along a Portion of 12th Street, SW – No. 01-09 (Authorize Public Hearing for November 17, 2009)

B. Proclamation Declaring the Week of October 19 – 25, 2009 as “National Friends of the Library Week” in the City of Hickory

C. Approve Lease Agreement With Jeff Kincaid Insurance for City-Owned Property Located at 16 1st Avenue, NE - Jeff Kincaid Insurance has leased this property from the City for the past thirteen years and wishes to extend their lease, which has expired, for an additional three years at the rate of $1,200 per month which is close to or at market rate. The lessee will be responsible for the maintenance and repairs along with all utilities. Additionally, they will have access to the dumpster adjacent to Hickory City Hall and access to ten parking spaces on the vacant lot adjacent to the leased premises. Expiration of this lease will be three years from the date of Council’s approval.

D. Approval of Citizens’ Advisory Committee Recommendations for Assistance Through the City of Hickory’s Housing Programs - The following applicants are being recommended for approval for assistance under the City of Hickory’s First-Time Homebuyers Assistance Loan Program:
Mee Thao & Yong Vang Chang 1669 Treadwell Lane, SE - Approved for up to $6,500 (Blue Sky Court)
Jennifer Gwaltney 1330 5th Street, NE #65 - Approved for up to $6,500
John Patterson 1246 11th Street, NW - Approved for up to $10,000

Funds are budgeted for the above through the City’s former Rental Rehabilitation Program income received in FY 2008 and/or program income received through the City’s Community Development Block Grant Program.
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Zelda Covington of 907 3rd Street Court, SW is being recommended for approval for assistance under the City’s 2009 Urgent Repair Program in an amount no to exceed $5,000. This program provides qualified low income citizens with assistance for emergency related repairs not to exceed $5,000. Funds are budgeted through the City’s Community Development Department funding received in FY 2009-10.

E. Approve Vacant Building Revitalization Grant to JeJe, LLC for Property Located at 1025 Tate Boulevard, SE in the Amount of $25,000 - The Vacant Building Revitalization Grant Program was established by City Council in September, 2008 whereby the program provides matching funds up to $25,000 for projects seeking to renovate and rehabilitate vacant buildings and the demolition of substandard buildings. To date the program has awarded a total of $82,430 in grant funds. JeJe, LLC has applied for such a grant in the amount of $25,000 to assist in the renovation of the interior and exterior of the building to include improvements to the parking area, painting, lighting, graffiti removal and a new accessible building entrance. The building will be occupied by a sprinkler contractor. The Redevelopment Committee reviewed the application and recommends approval.

F. Approve Vacant Building Revitalization Grant to Black Investments, LLC for Property Located at 733 1st Avenue, NW in the Amount of $25,000 - The Vacant Building Revitalization Grant Program was established by City Council in September, 2008 whereby the program provides matching funds up to $25,000 for projects seeking to renovate and rehabilitate vacant buildings and the demolition of substandard buildings. To date the program has awarded a total of $82,430 in grant funds. Black Investments, LLC has applied for such a grant in the amount of $25,000 to assist in the renovation of the exterior of the building, to include painting, lighting, graffiti removal and a new accessible building entrance. The building will be used by the adjacent business, Aiken-Black Tire Service. The Redevelopment Committee reviewed the application and recommends approval.

G. Accept Year Three Traffic Unit Grant From the Governor’s Highway Safety Program - The Governor’s Highway Safety Program has approved the Traffic Unit Grant to the City of Hickory to continue to fund four full time officers, training and equipment at a cost of $202,260. The City will be responsible for 50% or $101,130 of the cost. In 2008, the Hickory Police Department responded to 4,135 traffic crashes within the city which is a reduction of 6% from 2007. The Hickory Police Department feels that by continuing education and aggressive enforcement for year three of this grant, the number of traffic crashes will continue to reduce.

H. Approve Municipal Agreement With the North Carolina Department of Transportation (NCDOT) for Bridge Inspections on the City’s Street System in the Amount of $4,800 - The Surface Transportation Assistance Act of 1978 requires inspection of all bridges on at least a 2 year cycle. The NCDOT is to employ a qualified engineering firm to perform the inspection and analysis of the structures and to prepare the necessary Structural Inventory and Appraisal forms for submission to the Federal Highway Administration. There are eight structures that require inspection at a cost of $3,000 each or a total of $24,000. The Federal Highway Administration will participate with the cost up to 80% and the City’s share is 20% at an estimated cost of $4,800.

I. Approve Traffic-Review and Inspection Agreement With the North Carolina Department of Transportation (NCDOT) for Upgrade and Construction of Traffic Signals Regarding the Clement Boulevard NW Connector Project in the Amount of $15,000 - This agreement enables NCDOT design review and construction inspections of the traffic signals on the Clement Boulevard NW Connector Project and is required by NCDOT. The NCDOT will only bill for actual time charged to this project.

Budget Ordinance Amendments -
1. To appropriate $267 of General Miscellaneous Revenue and budget in the Fire Department departmental supply line item. The Fire Department received funds from the sale of scrap metal to Mountain Recycling.

2. To appropriate and budget a $1,987 miscellaneous insurance claim check received from Trident Insurance Company in the Rural Fire Department maintenance and repair of equipment line item. This claim check is for lightning damage sustained to equipment (phone system, radio system, emergency generator) at Station 5 that occurred on 08-05-09.

3. To appropriate and budget a $807 miscellaneous insurance claim check received from Trident Insurance Company in the Police Department maintenance and repair of vehicles line item. This claim check is for damage sustained to a police vehicle on 09-17-09.

4. To appropriate $510 of Local Government Revenue and budget in the Police Department Overtime line item. This revenue is payment from Catawba County Mental Health for a portion of an Officers time spent when accompanying involuntary commitment patients.

5. To transfer a total of $15,000 (Economic and Community Development-$5,000) and (Public Safety - $10,000) to the Information Technology Maintenance and Repair of Equipment line item. This transfer represents several departments share of contributions to pay for the GIS/ESRI contract unlimited seat license (USL). ESRI (Environmental Systems Research Institute) is the leader in commercial GIS (Geographic Information Systems) software. GIS is a software application that specializes in land-use analysis. It combines points, lines and polygons to overlay these unique points in space onto a map. This geographic information is combined with other data to produce a highly useful visual representation (flow of water, density of buildings, size/location of pipes, demographic info, etc.). As the demand for GIS has grown, we have begungenerating more data and discovering more uses. This contract for an ELA (Enterprise License Agreement) will allow the City of Hickory to have unlimited use of all ESRI GIS software. Today we pay on a per-user basis which restricts our ability to effectively roll out these services.

6. To appropriate $25,000 of General Fund Balance and budget in the Planning Department's Vacant Building Revitalization Grant line item. This appropriation provides matching funds to assist JeJe, LLC in the renovation of a building located at 1025 Tate Blvd. SE. Plans are to renovate this facility for use by a sprinkler contractor. JeJe, LLC plans to invest approximately $75,000 on improvements to the parking, vehicle access areas surrounding the building, painting, exterior light improvements, graffiti removal, and a new accessible building entrance.

7. To appropriate $25,000 of General Fund Balance and budget in the Planning Department's Vacant Building Revitalization Grant line item. This appropriation provides matching funds to assist Black Investments, LLC in the renovation of a building located at 733 1st. Ave. NW. Plans are to renovate this facility for use by the adjacent tire and auto service center. Plans are to invest approximately $50,000 on renovation to the exterior of the building, painting, exterior light improvements, graffiti removal and a new accessible building entrance.

8. To transfer $1,563 of General Fund Contingency to the Carolina Thread Trail line item to pay the City of Hickory's portion of a $60,000 grant from CTT. This grant is for the development of the master greenway plan for Catawba County. Hickory is one of nine jurisdictions participating in the cost share grant. The Carolina Thread Trail is an initiative to create a network of greenways, trails and blueways in a 15 county region that holds 2.3 million people in North and South Carolina.

Grant Project Ordinance Amendment No. 3
1. To budget $3,846 of Federal Revenue in the Economic and Community Development 2009 Housing Rehab/Purchase Program line item. This amendment is necessary to budget additional revenue received from the United States Department of Housing and Urban Development for the Community Development Block Grant program.

Informational Items:
A. Report of City Manager Berry’s NC Department of Transportation Meeting With Jim Trogdon in Raleigh, NC on September 28, 2009; mileage - $220.20

B. Report of City Manager Berry’s Attendance of the 2009 Intra-City Visit in Raleigh and Hickory, NC From September 30 – October 2, 2009; registration - $120; mileage - $193.60

C. Report of Mayor Wright’s Attendance of the 2009 Intra-City Visit in Hickory, NC From October 1 – 2, 2009; registration $60

D. Report of Alderwoman Patton’s Attendance of the 2009 Intra-City Visit in Hickory, NC From October 1 -2, 2009; registration $60

New Business - Public Hearings:
1. Voluntary Contiguous Annexation of the Property of Kirk and Debra Hobart Located at 976 30th Avenue Drive, NW - A petition was submitted by Kirk and Debra Hobart for voluntary contiguous annexation for property located at 976 30th Avenue Drive, NW, which is part of the W.B. Shuford Lake Property subdivision. The property owners are requesting annexation for connection to municipal sewer service. The property is located in the City’s extra-territorial jurisdictional area and zoned R-2 Residential. The current tax value is $175,000 and if annexed, would generate $879 in additional tax revenues. Cal Overby made the presentation and showed a power point presentation. Council Unanimously consented to the annexation.

2. Resolution and Order for Petition of Catawba County (Consented to by Catawba Valley Medical Center) to Close a Portion of Old School Drive - On August 26, 2009, Commercial First Real Estate (Lutheran Home – Hickory West) presented a petition on behalf of Catawba County, the owner of property abutting Old School Drive, requesting the City to abandon a portion of this right of way. This portion of the right-of-way is no longer necessary for public use and appears the closing is not contrary to public interest. Staff recommends that the City retain a 25’ easement for any existing water and sewer lines. Chuck Hanson addressed the Council on this issue. Scott Eckelberger, vice president of operations at Catawba Valley Medical Center spoke in support and introduced a Ms. Bowman who pointed to the Overview of the Power Point presentation and stated that they would not be able to develop the project if this is not consented to. Council Unanimously consented to the annexation.

New Business - Departmental Reports:
1. Quarterly Financial Report - Assistant City Manager Warren Wood made a presentation of the Financial Statement through the first quarter of the current 2009-2010 fiscal year. Revenues seem to be in line at just over 20% of total revenues received for the year. They feel pretty good about this. On the expenditure side they have spent 25.98% of their budget compared to 23.89% for the same period last year. the 5-year average is closer to 24, so they are a little bit ahead. The hiring freeze is still in place. Revenues versus expenditures. To date they have spent $722,000 more than they have received. The 5-year average is $850,000. So they are doing well on this account. he stated that this is a surprise and it is good news.

The water and sewer fund also 25% a year complete. Revenues are just over 20% of total revenues received for the year and the 5-year average is normally slightly less than that. They are doing well there. On the expenditure side they have spent 22% of their budget. The 5-year average is closer to 24%, so feel very good about this. Revenues versus expenditures. To date they have received $72,000 more than they have spent. The 5-year average is that they have spent $675,000 more than they have taken in.

The investment portfolio has $44 million invested compared to last years $42.7 million. These investments are yielding 2.8% versus last year's 4.2%. They have moved money out of CDs, because they aren't paying anything. Revenues on property tax collections show that we are down on collections from just over 97.3% last year to around 96.6% this year. This will cost the city $166,000 in revenue. For every tenth of a percent the collection rate drops it costs the city $25,000.

Sales tax shows that the local penny is down 20% through July and august. The State penny shows a little bit of improvement, but it is still down 13%. Power Bill Revenue is down $150,000. Power bill revenue goes to pay for road infrastructure.

The Hounds take is that the numbers speak for themselves. Everything is down and it doesn't look like the numbers will turn around any time soon. Warren Wood and city staff should be commended for making the best out of this eroding financial landscape. At some point, we are going to have to shift the paradigm towards growing Hickory's economy, but that has nothing to do with Mr. Wood. We have to do whatever it takes to bring business into Hickory and increase our tax base, because we are already cutting into the bone when it comes to city services.

2. Police Chief Adkins will brief council on the response to an anonymous letter received on October 9, 2009 addressed to Mayor Wright - The letter was from a concerned citizen who was upset about some of the merchandise being sold at Spencer's gift store in Valley Hill's Mall. Chief Adkin's went over some of the statutes of the City and the state of North Carolina. Back in November 2005 a law was passed about what can be displayed and what has to be shielded from minors. Major Deal sent a lieutenant out to Spencer's to view the material in the complaint, but found no evidence of any such material. On Monday the 12th, they went back out and checked. They have been working with the staff of Spencer's and the stff at the Mall on this issue. On the following Thursday, Spencer's legal counsel contacted the police department. He spoke with chief adkins and they went over some of the items that were questionable, that may not be defined by the ordinance, but could be considered offensive to members of the public. The Chief stated that they Spencer's worked with the department and removed some of the items from the shelves and changed the location of some items. Ms. Dula and Mr. Crone (Hickory's Legal representatives) went down with Chief Adkins and spoke with Spencer's counsel and asked them to do some repackaging and put up some better signage. He went back on Friday and he now states there are no violations.

Mayor Wright expressed an opinion that Spencer's has 600 stores. They want to sell merchandise to Adults and Kids in the same store. They understand the laws and how to avoid going across the line. They have an online site and in order to go to the adult part of the site, you have to push a button that states that you are over 18. they categorize themselves as edgy, he isn't sure what that means, but he thinks it means they are edgy to the line.

The Hound wants to commend the parties involved for working this out. Chief Adkins sought to work with Spencer's in getting this done. This wasn't where the city ran in there and started telling Spencer's how they were going to operate their business. It is always better when the city takes this position with a business, than using the ramrod approach we have seen in the past with the Priscilla's issue, the Open Storage law, and the Drinking Establishment ordinance.

Spencer's should also be commended for working with the city, when their items were not violating any city codes. They obviously have done, within reason, what the city wanted them to do. To me that shows a business that does care. If we are going to start writing codes based upon when a person is offended, then we won't have any businesses in Hickory, no one will be able to market their products, and customers won't be protected; because they won't know what they are buying.

If a parent does not want their child to see materials, they deem offensive, then it is their responsibility to keep the child, who they are guardian of, away from the supposedly offensive material. Did anyone force these people to go into Spencer's?

3. Approve Shared Purchase of Right-of-Way With Caldwell County for the US 321
to Grace Chapel Road Connector Project in the Amount of $30,000 - The City of Hickory and Caldwell County desire to share in the purchase of right of way, approximately 2.129 acres, from the Hill, Starnes, Ritchie et al property in the amount of $60,000. The City’s portion will be 50% at a cost of $30,000. The purchase price also includes the purchase of 3868 sq. ft. of permanent drainage easement area and 2.733 acres of temporary construction easement. This purchase is necessary to extend Alex Lee Boulevard northeastto the proposed US 321 to Grace Chapel Road Connector road project. The property was appraised by Mr. Ralph Prestwood, Jr., MAI at $25,877 excluding the drainage and construction easements. The City’s Street Division currently maintains the existing section of Alex Lee Boulevard and once constructed, the City would also maintain this new section. Caldwell County has advised that they are agreeable to the purchase at 50%. Due to closing deadlines, staff requests two readings be held on October 20, 2009.

Budget Ordinance Amendment No. 8 - 1. To transfer $30,000 of General Fund Balance to the Grace Chapel/US 321 Connector Road Project. This transfer is to pay Hill, Starnes, Ritchie et al for Hickory's share of the $60,000 purchase price for 2.129 acres to be used as right of way (ROW) for the US 321 to Grace Chapel Road Connector. Caldwell County will share in the purchase of the right of way with the City of Hickory. The total purchase price is $60,000 with a 50/50 shared cost with Caldwell County. The purchase price includes the purchase of 3,868 sq. feet of permanent drainage easement area and 2.733 acres of temporary construction easement. Staff requests two readings on October 20, 2009 due to the closing deadlines of Item X.B.3.

Grant Project Ordinance Amendment No. 4-1. To accept and budget a $30,000 transfer of General Fund Balance to the Grace Chapel/321 Connector Road Project and to budget $30,000 of Restricted Intergovernmental Revenue from Catawba County. This amendment is necessary to pay Hill, Starnes, Ritchie et al $60,000 for 2.129 acres to be used as right of way (ROW) for the US 321 to Grace Chapel Road Connector. Caldwell County will share in the purchase of the right of way with the City of Hickory. The total purchase price is $60,000 with a 50/50 shared cost with Caldwell County. The purchase price includes the purchase of 3,868 sq. feet of permanent drainage easement area and 2.733 acres of temporary construction easement. Staff requests two readings on October 20, 2009 due to the closing deadlines of Item X.B.3. Council Unanimously consented to the annexation.

Update Regarding Landscaping and Signage Along the Lenoir-Rhyne Boulevard Extension Project - The Lenoir-Rhyne Boulevard extension project is expected to be completed and opened to the public in December, 2009 pursuant to the NCDOT. City staff has finalized landscaping plans for the median and right of way areas in addition to the installation of the first “Welcome to Hickory” sign which is part of the City’s wayfinding program. Chuck Hanson did the presentation and showed a Power Point display of the project. He thoroughly talked about the construction, landscaping, right of ways, and signage involved in this project. He had Photoshopped pictures of what this project should look like when completed and talked about the specific trees, plantings, and vegetation that will be located at the project. The total cost of this project will be $40,000. The sign and landscaping around it will cost an additional amount of money.

The Hound wants to reiterate that I don't understand why it is such a big deal that this is where the first Wayfinding/new Logo sign will be located. The Wayfinding issue is supposed to be about marketing and direction issues. We're always talking about bang for the buck. Is this location where we are going to get the most bang for the buck?

The systematic rolling out of these signs should be based upon traffic count and where people are having the most trouble getting to and fro, not upon the whims and fancies of elected officials -- and that is what it surely seems to be. This city has spent at least $75,000+ on this issue and now it is being implemented in an arbitrary manner. Does that make sense?

In the end the City is going to do what it wants and I am once again being forced to take a principled stand on an issue. Many people may think this is nitpicky and/or trivial, but when it continuously runs the gamut of city processes, then we might be getting at one of the core issues we are facing in our governance and leadership. It is time to quit doing what suits your fancy and start doing what is in the people's best interest.

*** Alderman Seaver talked about the training that city firefighter's are presently going through. 19 firefighters are participating in this boot camp style training. A video is being made of this training.

*** The Mayor talked about the mention of Hickory in this month's Reader's Digest about the robbery that took place at the Captain's galley last year. The register tape, from the register that was stolen, was caught in the door and led the police to the man's apartment where he was apprehended. The police followed the paper trail (haha) to the man's apartment where they busted him.