Newsletter about the City Council meeting of November 17, 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 11/17/2009 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below

Invocation by Rev. Susan Smith of Exodus Ministries

Special Presentations:
A. Presentation of the North Carolina League of Municipalities Green Challenge Award Designating the City of Hickory as a Green Challenge Advanced Level Municipality. Mike Bennett made the presentation. The city earned this award by earning points for introducing green initiatives such as having an energy management position, an internal recycling program,a high density development land use plan, a tree preservation program, a water conservation campaign, and biodiesel and compressed natural gas vehicle usage.

B. Video Presentation of the Extensive Firefighter’s Training Recently Undergone by the City of Hickory Fire Department’s Newest Recruits. Deputy Chief George Byers made the presentationThis is the second largest graduating class of recruits in history. The approval of this grant came July 2, 2009. These extra people will allow the city to implement a second fully staffed ladder company. The firefighters are bound by core values of communication, innovation, and customer service. In June 2008 the grant was submitted and in January 2009 it was approved. There was a hiring process. The recruits came on board July 1, 2009 and 140 days later they have completed their recruiting. They graduate tomorrow. Article from the Hickory Daily Record.

With the grant the certifications for EMS, EMT, Basic Training, and Rescue Training has to ne done in 2 years, but it was done within the 140 days. Deputy Chief byers thanked Catawba Valley Community College and recognized Dr. Garrett Hinshaw and Tim Chewing for helping with funding and to get these people trained. He recognized Elaine Seaver also. I was stated that 14,960 hours were consumed to train these individuals.

Consent Agenda:
A. Adopt Resolution to Accept State Revolving Fund Loan for the Northeast Wastewater Treatment Plant Sewer Project in the Amount of $17,500,000 - The City of Hickory has been offered a State Revolving Fund (SRF) loan for the Northeast Wastewater Treatment Plant (NEWWTP) project and has obtained permission from the North Carolina Local Government Commission to accept and utilize these funds. This is a 20 year loan at 2.5% interest.

B. Approve Application for the Use of Union Square by the Hickory Downtown Development Association for the “A Hickory Holiday” Event to be Held on December 10, 2009 from 5:30pm – 9pm

C. Approval of Fourth Annual “Food for Fines” Amnesty Week at the City Libraries From November 30 – December 6, 2009 - Staff requests that overdue fines be waived for library customers who donate canned food items at either of the City’s libraries during the week of November 30 - December 6, 2009. One can of donated food will cancel $1 in overdue fines and the donated items will be given to the Cooperative Christian Ministry. Last years’ event received over 1,000 food items, which helped the Cooperative Christian Ministry fill their shelves during a critical time of the year.

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:
Andrea Graybeal 1300 14th Street Drive, NE - Approved for up to $5,000
Lue Lee and Joua Yang 1664 Treadwell Lane, SE - Approved for up to $7,500
Teresa Robinson 3271 Blue Sky Court, SE - Approved for up to $6,500
Gloria Williams 825 3rd Street Place, SW - Approved for up to $6,500

The following applicants are being recommended for approval for assistance under the City of Hickory’s Housing Rehabilitation Loan Program:
Michelle Dula 717 1st Avenue, SE - Amount not to exceed $10,000
Cynthia Moon 933 4th Street Place, SE - Amount not to exceed $5,000
Bonnie & Ruth Williams 946 8th Street, NE - Amount not to exceed $5,000
Stefanie Fortuna & Jovan Hoover 428 3rd Avenue, SW - Increase Loan to $8,099
Charlton Seaver 838 7th Avenue, SW - Increase Loan to $12,999

Funds are budgeted from 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.

The following applicants are being recommended for approval for assistance under the City of Hickory’s Urgent Repair Program:
Daisey Brooker 335 3rd Street, SE - Amount not to exceed $5,000
Emily Futrell 110 6th Street, SW - Amount not to exceed $5,000

Funds are budgeted through the City’s Community Development Department funding received in FY 2009-10. The Citizens’ Advisory Committee recommends approval of all the above.

The Hound has seen loans go through to immediate relatives of council twice over the last year. Personally, I don't think this is right. The largest grant above went to an alderman's family member. I don't care if it is standard operating procedure, I believe it to be a conflict of interest and the practice needs to be brought to an end.

For one thing, these grants aren't widely known to the public and are too easily accessible to members of the city government. Think of businesses (such as TV or radio stations) that have contests or giveaways and they do not let employee's family members participate. In these hard times, I can think of a lot of people who don't have connections, that could certainly use these grants. When it comes to these issues, the appearance of impropriety is impropriety. I believe an ordinance should be passed to prohibit this practice in the future.

E. Approve Vacant Building Revitalization Grant “Operation No Vacancy” to MSM Real Estate, LLC for Property Located at 1070 Main 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. MSM Real Estate, LLC has applied for such a grant in the amount of $25,000 to assist in renovating the exterior of the facility for use by a plumbing contractor. New downspouts will be installed, window repairs and painting, replacement of dock doors, paving of gravel driveways and parking areas, along with landscaping, new dumpster enclosure and loading dock repairs. The Redevelopment Committee reviewed the application and recommends approval.

F. Award Bid and Contract to Municipal Emergency Services for the Purchase of One - Hundred Sixteen Personal Protective Equipment (PPE) Sets for the Hickory Fire Department in the Amount of $227,277.64 - The Hickory Fire Department requests replacement of the fire department’s PPE structural turnout gear. The current gear was purchased in FY 2000-01 and its intended service life is approximately ten years. Recently it has been noted through seminar participation that PPE gear should meet the latest National Fire Protection Association safety standards. Therefore, proposals were submitted and two bids were received. Municipal Emergency Services was the lowest bid at $1,959.29 per set at $227,277.64 for one-hundred sixteen PPE sets.

G. Approve AIP Grant Agreement With North Carolina Department of Transportation (NCDOT) Division of Aviation to Rehabilitate and Overlay Taxiway “A” in the Amount of $30,153 - This Grant Agreement is for the State’s portion in the amount of $30,153 of the previously approved AIP #23 Federal Grant. This grant project is part of the continuing maintenance program of the Hickory Regional Airport’s runway/taxiway systems mandated by the Federal Aviation Administration. Taxiway “A” is Hickory’s primary taxiway and the only taxiway designated for use by an air carrier and larger charter aircraft. This project will enable the primary taxiway to handle larger aircraft and require less maintenance. Funding for this project includes a 95% FAA share of $1,145,824, a 2.5% State share of $30,153 and 2.5% local share of $30,153.

H. Approve Contract with J. T. Russell & Sons, Inc. to Rehabilitate and Overlay Taxiway “A” at the Hickory Regional Airport in the Amount of $1,070,298.15 - The approval of the contract with J.T. Russell & Sons, Inc. is to rehabilitate and overlay Taxiway “A” at the Hickory Regional Airport. The FAA is requiring Hickory to undertake Airport Improvement Program (AIP) project #23 to overlay/strengthen and rehabilitate Taxiway “A” which will rehabilitate the surface and increase the load carrying capacity comparable to main Runway 6-24. The project will further improve the airfield infrastructure for years of service. J.T. Russell is unable to begin work on this project in 2009 and by letter dated August 14, 2009 will honor their bid unit prices through the spring of 2010. FAA funding is 95% in the amount of $1,016,783.24, NCDOT share of 2.5% at $26,757.46 and the City’s share at 2.5% in the amount of $26,757.45.

I. Approve Contract With Talbert & Bright for Work Authorization for the Construction Administration Services of the Taxiway “A” Project in Conjunction With Airport Improvement Program Grant – AIP #23 – in the Amount of $130,832. The Contract with Talbert & Bright will provide construction administration, observation, quality assurance testing and as-built survey during the repaving of Taxiway “A”. The cost will be funded from AIP #23 Grant funds which were issued through the FAA at a 95% level in the amount of $124,290, with NCDOT obligation of 2.5% and the City’s obligation of 2.5% ($3,271).

J. Approve Updated Tax Collection Agreement with Catawba County - Tax Collection Agreements with the County and various municipalities were originally signed in 1981 and through the years have undergone numerous amendments. It has become increasingly difficult to interpret the agreement due to all the amendments and therefore, the updated Tax Collection Agreement is intended to reflect its current function between Catawba County and the City of Hickory. The County will continue to bill and collect ad valorem, motor vehicle and gross receipt taxes; both current and delinquent. The cost per bill does not change from the current fee of $3.64 ad valorem bill. The fee is 1 ½ percent of the amount of motor vehicle and gross receipts taxes collected.

K. Proclamation Honoring Sarah Talbert for Her Years of Service on the Hickory Board of Education and Declaring November 23, 2009 as “Sarah Talbert Day” in the City of Hickory

L. Budget Ordinance Amendment
1. Appropriate $2,137 of Local Government Revenue to Police Department Overtime. This revenue is payment from Catawba County Mental Health for a portion of an Officers time spent when accompanying involuntary commitment patients.

2. Appropriate $53,397 of General Fund to the Multi-Year Recovery Act-Justice Assistance Grant Fund. Needed to provide the additional funding required for the upgrade to the Police Department’s firing range and target system. The Justice Assistance Grant provides $23,256 toward the total upgrade cost of $76,652.96; therefore an additional $53,397 is required. The appropriation from General Fund Balance represents a portion of the remaining Police Federal Reimbursement balances from prior years that have rolled into Fund Balance at year end.

3. To appropriate $25,000 of General Fund Balance and budget in the Planning Department's Vacant Building Revitalization. This appropriation provides matching funds to assist MSM Real Estate, LLC in the renovation of a building located at 1070 Main Avenue NW. Plans are to renovate this facility for use by a plumbing contractor. MSM Real Estate, LLC plans to invest approximately $50,000 to renovate the exterior of the building, pave gravel driveways and parking areas, landscape, repair loading docks and provide a masonry dumpster enclosure.

New Business - Public Hearings:
1. Resolution Directing Street Improvement Project be Undertaken Along a Portion of 12th Street, SW – No. 01-09 - The City Clerk has received a petition from the owners of property along a portion of 12th Street, SW to install curb and gutter per Section 29-2 of the Hickory City Code. The signatures on the petition represent a majority, greater than 50% of the property owners and property footage. Sixty-seven percent of the property owners signed for the petition and Thirty-three percent signed against the petition, which represents 67% in favor of the petition and 71.3% of total footage in favor. A 10-foot wide alleyway representing 1.5 percent of the footage will be the responsibility of the City of Hickory. The City Clerk has certified that the Preliminary Resolution adopted by the City Council on November 3, 2009 was mailed by first class mail on November 5, 2009 to the owners of property subject to assessment should the project be undertaken. Kerr Sand Company, the petitioner, will provide all concrete materials for the entire project at no cost to the City. There will be no cost to the property owners since their portion of the cost will be covered by Kerr Sand Company. The City will design and install the curb and gutter and Kerr Sand Company is providing the concrete. This public hearing was advertised in a newspaper having general circulation in the Hickory area on November 5, 2009. Chuck Hanson stated that the one property owner, who owns two sections of property, in this area won't be charged per the agreement. Council Consented Unanimously

2. Approval of Resolution Supporting Urban Progress Zone Re-Designation Within the City of Hickory - The Urban Progress Zone program provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina. Tax credits are used to attract certain types of businesses and to foster certain types of businesses in North Carolina. Areas designated as Urban Progress Zones must meet the poverty level threshold of 20% of its population being below the poverty level according to the most recent federal decennial census. Some eligible businesses include call centers, company headquarters, information technology and services, manufacturing, research and development, warehousing and wholesale trade. Todd Hefner made the presentation. The Mayor asked how many people have received these tax credits. Mr. Hefner said it was a good question, but people call on a regular basis to ask if they are in this area. Alder Fox asked if people who fall under Operation No Vacancy can apply for this also. Mr. Hefner stated that they can. Alder Fox stated that this could be an additional incentive. Mr. Hefner said that that was a good point. Council Consented Unanimously

3. Consideration of Economic Development Agreement With Fiserv, Inc. - This Economic Development Agreement is between the City of Hickory and Fiserv, Inc. to be located at 2415 Century Place, SE. Fiserv, Inc. is a technology provider to banks, credit unions and financial institutions with more than 16,000 clients worldwide. Fiserv, Inc. is requesting economic development incentives in the amount of 75% for seven years from the City totaling $130,243 in property tax grants. This amount is based upon an investment of approximately $4,975,923 and 419 jobs with an average wage of 110% of the median hourly wage of Catawba County. This project meets and exceeds the minimum requirements of the City’s Economic Development Assistance Guidelines. Average annual wage with Fiserv, Inc will be $25,368 a year, excluding the benefits package. Fiserv, Inc. has already received a grant from the State of North Carolina in the amount of $800,000 and is under consideration by Catawba County Commissioners for economic development incentives. Due to Agreement stipulations, staff requests two readings be held on November 17, 2009. Andrea Surratt introduced the Public Hearing to talk about the agreement and the incentives. She intoduced Economic Development's Julie Pruett. Mrs. Pruett stated that Fiserv is a Fortune 500 company that employees 20,000 people in 250 locations worldwide. They provide technology, e-commerce, and financial services, such as data processing directly to banks, credit unions, and lending institutions. They propose to lease the Adevco Speculative Customer Service Center on McDonald Parkway for 10 years. They will be upfitting the building at a cost of $3 million and the cost of furnishings and equipment will be. $1.975+ million. They will be creating a minimum of 419 new jobs in the community. 40 of these jobs will be above the average county jobs. The remainder of the jobs will be paying 110% of the average entry level wage documented by the Employment Security Commission. These jobs will be created over a period of 3 years. 279 of these jobs will be created by the end of 2010. 72 jobs will be added by 2011. The full 419 will be reached by 2012 with an annual payroll of $11 million. The incentives equate to $18, 660 per year for seven years. It will be contractually and performance based. There will be performance thresholds for both investment and job creation. there are clawbacks if Fiserv fails to meet and maintain the thresholds. Lance Beck of Fiserv made a few comments about how excited they are to be becoming a part of this community. He wants to create an organization that treats employees well. Council Consented Unanimously

The Hound is glad to see these jobs come forward and be facilitated. What Mr. Beck and Economic Development's Julie Pruett talked about sounded like a great company to work for. I think this is an excellent opportunity and I hope this company can succeed in every way. This is a Fortune 500 company and I hope that we will do more to go after such recognized firms now and in the future. These are the types of Information Technology jobs that we can use to firm up our foundation.

I have heard people are upset because they are stringent about potential hire's credit ratings and worthiness. I understand that people have had issues because of the current economy, but I totally understand why a firm that deals in credit issues cannot hire people who have bad credit. You better get used to it, because I can assure you that this is the wave of the future. Don't take it personally, instead think about the people who handle your money. You just can't take chances when it comes to these issues.

If your credit has been reported as bad, because of mistakes on your credit record or fraud, you can clean that stuff up and I believe this company will then move you through the hiring process. If you know otherwise, please let me hear about it.


Public Hearings - Departmental Reports:
Charter Communications Petition for Special Relief With the Federal Communications Commission (FCC) - Charter Communications is currently under a local Franchise Agreement with the City of Hickory which expires on June 30, 2017 which includes yearly franchise fees to the City in the amount of $80,000. Charter Communications recently filed a petition with the FCC stating that Charter faces “effective competition” in the Hickory, Granite Falls, Lenoir and Rhodhiss franchise areas. Under FCC rules, cable TV rates may be regulated only in the absence of effective competition. Charter alleges it has effective competition from DirecTV and Dish Network. Should the FCC grant Charter’s petition, cable rates in the franchise area are no longer subject to regulation and the City would lose the $80,000 in revenue. Staff believes the filing of the FCC petition is Charter’s first step in moving to terminate its franchise agreements with Hickory and the other municipalities. General Statute 66-355 (a)(2)(a) and (b) state that a termination of a franchise agreement becomes effective at the end of the month in which the cable provider files notice with the affected city or county. The affected cities/counties have sixty days to review the evidence regarding Charter’s franchise termination and obtain possible injunction.

Staff Attorney Arnita Dula made the presentation and went over the aspects of the City's agreement with Charter. Currently, the city is receiving 5% of Charter's gross revenues. the city also receives Telecommunications and Programming Services taxes from the State of North Carolina. In 2006 an act was passed to promote consumer choice and establish uniform tax guidelines. It became effective on January 1, 2007. This Act grants the State's right to exlusive franchise authority for local cable service providers. The local cable provider can terminate local agreements under three circumstances 1) if there is another provider in the area 2) if there is more than one provider and more than 25% of households can file for termination 3) or if company provides wireline competition can be provided by a means that does not require a state franchise.

If the agreement can be terminated, then all obligations end. That includes the franchise fee. Ms. Dula states that resistance is futile. In March of 2009, Charter filed Chapter 11 bankruptcy. On September 25, 2oo9, Charter filed a petition with the FCC declaring that Charter faces effective competition in this area. The circumstances of "effective competition" include, if the area is served by two unaffiliated multi-channel video programming distributors (such as Dish Network and Directv) and the number of households served by these distributors is higher than 15% in the area. If the FCC grants this provision to Charter, then Charter's fees are no longer subject to regulation. This would potentially lead to rate hikes.

Ms. Dula stated that where this will lead is a termination of the local franchise agreement and Charter will apply for a State charter immediately. Hickory will no longer receive the franchise fee. There is basically no time given. The notice of termination is only 30 days )or to the end of the month). Charter has already filed for State charter's in 25 municipalities here in North Carolina. She believes that most of these also involved franchise agreement terminations. She made a joke about resistance is futile, because the communications she has had show that no one has successfully challenged such a termination.

Alderman Lail made some points 1) no one has a State franchise in this area at this time. 2) they (Charter) can terminate if someone else competes and has 25%+ of the business 3) the only way they can terminate is under option C. What is the definition of wireline competition. They are stating that they face effective competition because of Satellite providers, how can that be considered wireline communication? That needs to be answered before we can figure out what to do. Ms. Dula stated that they may not do anything about the franchise fee, but want to follow through with the FCC request, then they are deregulated and can raise rates any way that they wish. Alderman Lail stated, then that is the free market at that point.

The Hound thinks that the consumer should be the biggest interest in this scenario and no one was representing the consumer in these arguments. The amount of money lost, because of the franchise fee, would be $6,666 a month or around $2/annually per citizen of Hickory Proper. Is that worth saving for the opportunity to increase competition and most likely product quality here in Hickory?

I know that Bell South is offering Fiber Optic television in Conover. I think the more options, the better. Let Charter break this contract. They are withering anyway, and with their bankruptcy, I don't see them getting up to speed on the 21st century technology that this area needs to separate from the pack. This is one of the reasons we need to push the envelope on the broadband issue.

Hello, this is an Information Technology issue. If you can't deal with this, then marketing the area to the technology sector is moot. I fear that Hickory's meandering on technology issues is going to keep us behind the eight-ball, when the new world is beckoning and demanding that we act now.