Newsletter about the City Council meeting of February 16, 2010

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 2/2/2010 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below

Invocation by Rev. David Roberts of Morning Star First Baptist Church

Special Presentations:
A. Announcement by Public Services Director, Chuck Hansen Regarding the City’s Public
Services Department Recently Being Recognized by the NC Main Street Center as “Main Street Champions” on January 28, 2010 in New Bern, NC for the Multitude of Services They Provide to Downtown.

B. Presentation By Community Groups Requesting Appropriations from the City Council During the Next Fiscal Year Beginning July 1, 2010. The Council will not take action tonight. Action will be taken when the Council considers the City’s annual budget in May or June. These presentations are made so Council Members can ask questions or make comments about the requests.
Organization - Presentation By - Amount - Requested

United Arts Council of Catawba County - Mike Thomas - $41,305
Jeff Neuvile subbed for Mr. Thomas in making the presentation. Mr. Neuville is the President-Elect of the Arts Council. The amount of money is based on $1 per capita. The city has funded the UAC since 1984. This funding is important to the quality of life and the economic development in the community. For every dollar granted by Hickory, a minimum of $4 is spent on arts, science, and history projects in this community by the UAC. The North Carolina Arts council estimates that $24 is spent locally for every dollar spent on the arts. Mr. Neuville went over several projects that these funds were used for. Grants totaled nearly $100,000 matched throughout the community.

The Salt Block Foundation - L.T. Thompson - $100,000.00
The SALT block has been in existence since 1986. 250,000 visitors come to the SALT block each year. City funds provide money for security guards and grounds keeping. The 1925 auditorium has just recently been renovated. The foundation operates three buildings on the SALT block campus. Provides a home for the Museum of Art, Science Center, The Choral Society, the Western Piedmont Symphony, and the United Arts Council. Pays building and Capital expenses. Along with the Patrick Beaver Memorial Library, these entities provide economically invaluable cultural resources for the entire Hickory region. Auditorium is used over 200 times per year. More money is requested for this year, because the endowment is suffering from the economy, and increased expenditures.

Hickory Metro Convention & Visitors Bureau - Bebe Leitch - $20,000.00
The HMCVB started receiving the 1% occupancy tax in October 2009. The Bureau has been brought under the umbrella of the Hickory-Conover Tourism Development Authority. The CVB will continue to be the marketing arm of the authority. They will continue to support and stimulate the local economy by tourism, business conferences, meetings, and sporting events. They are streamlining operations under the TDA. They network by attending meetings, advertising, and the internet. Generated $7.812 million in revenue from 5,888 room nights. The Convention Center was occupied 265 days in 2009, hosting 113 groups. Bebe told a story of people who have moved to the area after visiting the area and the CVB. She also talked of how Mayor Wright obtained the North Carolina Rose Convention locally in 2011.

Habitat for Humanity - Mitzi Gellman - $21,720.00
This is the 15th year the habitat has appeared before the council. Since 2000, the number of people living in poverty has risen 50%. 20% of those in poverty are children. 18 qualified applicants are currently on their list. The average worker in our area makes $8 an hour as of the 2000 census, yet it takes $20/hour to support a family. The mortgage payments from a Habitat House cost less than rent.

The first house built by habitat was in 1996. Over 100 sewer and water taps have been donated by the City of Hickory. 132 houses have been completed so far in Catawba County (99 in Hickory). Added property value is $9.7 million ($8.8 million in Hickory). Taxes paid in 2009 were $48,000 ($36,000 in Hickory). Houses are mainly in Ridgeview (100 houses and a solar house), Highland Avenue with 11 home owners, and the Blue Sky Neighborhood with nine lots remaining. Habitat closed on 12 houses last year. The foreclosure rate is 4% on houses since Habitats inception in the area. habitat is looking to do more renovation work in the area, which helps increase area neighborhood housing values. Habitat is the banking interest in the arrangements and the qualifiers have to have good credit. Qualifiers have to put 250 to 500 hours in building their houses. Habitat is putting more effort into making sure that they are building quality, energy efficient houses. Each house has $10,000 to $12,000 worth of volunteer labor in them. The money requested is about half of last years request and will be used to fund water-sewer taps.

Hickory Downtown Development Association - Connie Kincaid - $50,000.00
Addressed special events, the Farmer's Market, and Art crawls. Netted three new businesses this year.Connie spoke of two awards that the City received last year from the NC main Street Center. The Public Arts Commission for Art on the benches, which installed ten art benches downtown and received NC's Best Public Improvement Award and the Olde Hickory Brewery for Hickory Hops.

Connie expressed the HDDA's desire to encourage better pedestrian flow between businesses. Hickory Hops hosted 2,200 people with an economic impact of nearly $250,000 to the Area. Connie talked about Swinging under the Stars and Art Crawls. She spoke of WBTV doing its evening news on Union Square, she talked about Oktoberfest, candy crawl, tree lighting, Holiday events, and business development. She stated that 3 businesses expanded, 27 new businesses opened, with 12 closing, for a net gain of 15 new businesses in 2009. This led to a net gain of 42 jobs. Public investment was just over $270,000. while $1.8 million was invested in the downtown Business District.

Catawba County Economic Development Corporation - Scott Millar - $138,864.77
Greater Hickory Marketing - Scott Millar - Undetermined at this time
Scott talked about and commended the commitment of the city towards non-profits and its external agencies. The EDC's request for funding is the same as last year. He stated that we have more opportunities in the upcoming year than last year. They will continue the same role by trying to attract new industry through commerce with the Charlotte Regional Partnership and other external sources. They will continue to help solve headaches of existing industries by working along with city staff.

How can the EDC create new opportunities? They will continue, with Caldwell County, the Data Center marketing initiative. They are partnering with other's to Brand the area under the Data Center Corridor initiative. He stated that they need to have product (Multi-Jurisdictional Parks).
You cannot sell out of an empty train. They are working hard to create new shell properties and other properties. They are working on existing industry strategies, such as a regional supplier net, that will help local industries to identify products, services, and equipment that can be obtained locally via the internet.

Scott next went into opportunities that are available though Smart Grid technology. This area has been developing and making communications equipment for 35 to 40 years. When people think of Green Energy, they aren't thinking of the opportunities available through the Smart Grid. The EDC wants to figure out the niche in this Green Marketplace. They want to provide the smarts in the Smart Grid.

Reaffirmation and Ratification of Second Readings.
Approve Fire Protection Service Agreement With the Town of Brookford (First Reading Vote: Unanimous) - Upon second reading the council revoted with Lail, Meisner, Seaver, and Guess approving and Mayor Wright, Fox and Patton voting no.

The Hound thinks that this was a good vote by Mayor Wright, Alder Fox, and Alder Patton. I think this contract was rushed through. I think the better idea is to try to come to an agreement for Hickory to annex Brookford and then they would receive all of Hickory's services.

As I stated after the last Council meeting:

The Hound believes that Alder Patton made an excellent point here. Why is the cost to Brookford cheaper than that of the residents of Hickory. Like her, I fail to see the logic here. Nothing against Brookford, but the costs should come to equilibrium and there is no way that their costs should be a quarter of the costs to Hickory residents. Do you think that Hickory homes are four times more likely to catch on fire? That does not compute.

Also, the mentality of every community in this area is to hem and haw over what they can and cannot afford. What Hickory is basically doing here is providing insurance to Brookford. I know that it is my hope that I don't utilize any of my insurance policies to a great extent this year, but I have them for a reason. The costs of those policies were set by the providers and they were non-negotiable. I think the City undersold the costs of its service in this circumstance. This runs a little over $800 per call based on last year's events. Is it really that cheap to put out fires? Isn't Hickory basically subsidizing Brookford in this deal? If so, why?

Consent Agenda:
A. Resolution of Intent for Petition of W. Andrew Wells, Jr., President of Brown Operating Company, Inc. to Close a Portion of 6th Street Court, NE (Authorize Public Hearing for March 23, 2010) -

A Correction needs to be made here - I misunderstood what was being voted upon by council. This issue received unanimous consent from Council. What was voted on was a vote on the reaffirmation on the issue about Fire Service to the town of Brookford.

B. Approve Traffic Ordinance by Prohibiting On-Street Parking Along Both Margins of 11th Street, NW From the Intersection With 8th Avenue, NW North Approximately 400 Feet to the Intersection With 9th Avenue, NW - The Traffic Division recommends that the described on-street parking prohibition be approved due to observation of on-street parked vehicles impeding traffic flow to an undesirable degree, producing typical one-lane roadway safety concerns. This roadway is incapable of supporting on-street parking activity.

C. Approve Sanitary Sewer Easement for Property Owned by Larry Gene and Nancy Jane Hendricks, in Conjunction With the Cripple Creek Outfall Sewer Line Replacement Project - This 25 foot sanitary sewer easement is necessary for completion of the Cripple Creek Outfall Sewer Line Replace Project. In exchange, the City has negotiated a settlement of $35,000.00, which will abandon the original easement and attempt to preserve as many trees as feasible. This settlement is necessary due to the replacement sewer line being moved from the original alignment due to conflicts. Easement costs are budgeted in the project budget.

D. Budget Ordinance Amendment No. 16
1. To budget a total of $55 of Library donations in the Library Books line item. Donations include a $30 honor book and a $25 book.

2. To increase reimbursement grant funds from the Governor Highway Safety Program-Traffic Unit grant project by $143,000 and to decrease Fund Balance Appropriated by $143,000. This grant provides 50% funding for 1 sergeant and 3 officers assigned to the traffic unit. The grant period of performance is October 2009 - September 2010. Since the positions were included in the original grant process, the available $143,000 will allocate back to General Fund Balance.

3. To budget a total of $4,775 of Parks and Recreation donations (State Employees Credit Union ($525), Humana ($1,000), Tenent/Frye Regional Medical Center ($1,000), Catawba Valley Medical Center ($1,000), Carolina Orthopaedic Specialists ($500), Hickory Orthopaedic Center, PA ($500) and Catawba Valley USBC Association ($250) in the Parks and Recreation Department Supply line item. The City of Hickory’s Park and Recreation Department coordinates the Senior Games and will use the donations to conduct the 2010 Unifour Senior Games.

4. To appropriate $38,100 of General Fund Balance and transfer it to the Clement Boulevard Connector Project Engineering line item. This amendment is necessary to pay TGS Engineering $25,100 for the preliminary engineering (surveying, design, bid document preparation and coordination with the City) and $13,000 for the construction engineering (construction surveying, verification of construction surveying and on-site construction inspection).

Grant Project Ordinance Amendment
1. To decrease the Cripple Creek Project Water and Sewer Fund-Proceeds from Financing by $969,000 and to increase the Federal Miscellaneous Revenues by $969,000. The American Recovery and Reinvestment Act of 2009 is funding $1,938,000 of the project cost of which one-half ($969,000) is Principal Forgiveness (Federal Grant Funds). Therefore a budget amendment is necessary to budget funds in the appropriate Federal Revenue line item.

Informational Items:
A. Report of City Manager Berry’s Travel to NC City County Manager’s Winter Seminar in Durham, NC From February 3 – 5, 2010; hotel - $156.98; registration - $300.00; per diem - $76.50

Public Hearings:
1. Petition 10-01 – Rezoning of the Property Located at 711 8th Avenue, NE From R-5 Residential to OI-2 Office and Institutional - This 0.52 acre property is located at 711 8th Avenue, NE and is owned by Stuart and Deborah Searcy. The property owners petitioned to have the property rezoned from R-5 Residential to OI-2 Office and Institutional. Due to the expansion of Lenoir-Rhyne University, the subject property is now directly adjacent to university property and also within ¼ mile of a proposed Neighborhood Core area via the Hickory by Choice update process. Therefore, the uses allowed in the OI-2 district could allow the property to serve as a transition between institutional and commercial uses to lower intensity uses. The Hickory Regional Planning Commission on January 27, 2010 conducted a public hearing and voted unanimously in favor of the rezoning. No one spoke in opposition of said rezoning petition. Staff finds the request to be inconsistent with Hickory by Choice, but recommends approval. Dave Leonetti made the presentation. He stated that the changing conditions of this area including expansion of L-R and the proposed neighborhood core in this area warrant the change. Andy Wells addressed the council in support of this property. He stated that he is glad that someone in town is growing and he hopes that council will support this request. Council unanimously consented.

2010 Legislative Issues - Discuss and consider legislative issues facing the City of Hickory and our region and to develop a final State and Federal Legislative Agenda following the return from the National League of Cities Congressional Conference in March, 2010. The Legislative Agenda is an important communication tool that guides staff and city leaders to successfully deliver the message on key issues.

Andrea Surratt went over the legislative agenda from 2009. Issues such a the Hotel-Motel tax for the TDA, opposition to Collective Bargaining for public employees, small changes to annexation laws, transferring of maintenance of roads to the local level, and the American Recovery and Reinvestment Act were topically discussed.

She talked about the North Carolina Legislatures short session that will take place in May. Concern lies with the economy and revenues collected by the State on the city's behalf. Some of these revenues could be in jeopardy. The State has to balance the budget and the city may receive less. Collective Bargaining is still an issue. The Road maintenance issue and annexation is still an issue. At the Federal level, collective bargaining is still an issue and an issue was brought up about Federal law possibly preventing local municipalities from collecting Hotel-Motel taxes from booking made online.

Andrea wanted the Council to state ideas of what they would like to see the city possibly pursue as part of the legislative agenda. City Manager Berry spoke about the issues surrounding the inter-basin transfer. The Mayor stated that he would like to see, on the state level, to push for continued and greater funding of efforts to expand Appalachian State's presence here. The mayor also stated that 4 city officials will visit Washington to talk to our representatives. mayor Wright stated that he doesn't like the idea that we may be asked to support other states that won't do the right thing. Alderman seaver talked about the online taxation issues and how strange some of them are.

The Hound thinks that we need to go after the state if they confiscate this city's rightful revenues. Why can't Hickory form a coalition with other cities, who have sound budgeting philosophies, to sue the state if they illegally usurp money that they are collecting on the local municipalities behalf. Is there something in NC General Statutes that prevents the local municipalities from pushing the State to legitimately put the State budget on a firm foundation?

Budgets are going to have to be cut (period). Many communities in this state have already had to bite the bullet. If the state is going to spend Hickory's rightful money and Hickory uses rainy day funds to make up the gap, then why save that rainy day money at all. If this is allowed to stand, then logically that means that we are saving rainy day money to help the State of North Carolina balance its budget. That doesn't seem wise to me. If this does happen, then I don't think Hickory should save rainy day money ever again.

I think that rainy day money would be better spent towards scholarships towards young people in need. Or a few thousand towards an Economic and Science Fair to foster innovation and ingenuity. Those are investments that will pay off. It is a lot better than letting money rot, so that North Carolina can continuously blow millions, if not billions, towards some of the things we have seen in the not too distant past. Why should Hickory worry about its economic integrity, when the State we reside in is not willing to do the same?

Approval of Resolution Rescheduling the March 16, 2010 Regularly Scheduled City Council Meeting to March 23, 2010 According to Hickory City Code, Section 3.22. Quorum

***Under general Comments The Mayor addressed Google's announcement that they are seeking one of a handful of municipalities as pilot projects that can deliver 1 gigabit to the home. It will allow real-time 3-D medical imaging to a remote specialist. Corning has offered to enthusiastically endorse the application. They (the city) felt an obligation to pursue this on behalf of the constituency. They asked for a population of at least 50,000 and the Mayor stated that we couldn't get there with just Hickory or Hickory and the ETJ. So they have refined this to be all of the municipalities in Catawba County. They will call it "the Greater Hickory area" for simplicity and branding promotional purposes. They have appointed a committee consisting of the hospitals, educators, the EDC, and a lot of people who can build a case as to why Hickory should be a pilot project for this. They are excited, because there are geographic considerations, demographic considerations, and other factors that make Hickory ideally suited to get this project. The Mayor stated that the application website crashed, apparently due to people applying. They will keep us up to date, they have a representative from the Business Development Team on this committee and they are very excited about the prospects.

The Hound thinks the community should really get excited about the prospects of this happening. If you have not read my statement about this, you can here (City of Hickory - Thinking Big with a Gig). This is an issue that Catawba County's Chief Information Officer Terry Bledsoe brought to the forefront as part of the Future Economy Council nearly one year ago. The importance of this issue cannot be stressed enough. With the Data Centers and this possibility, it seems that we are in a moment of destiny, where our ability to transform this community rests squarely in our hands. If we are fortunate enough to land this or use it to capitalize on a similar opportunity, then I feel we will 100% change our economic momentum.