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08/19/2008 Regular City Council Meeting CITY OF MONROE REGULAR CITY COUNCIL MEETING 300 W. CROWELL STREET, MONROE, NC 28112 AUGUST 19, 2008 - 6:30 F.M. AGENDA www.monroenc.org 1. Recognitions A. Resolution to Rename the Section of Burke Street from Winchester Avenue to Fairley Avenue to "P.E. Bazemore Drive" B. July 2008 Citizen Recycling Incentive Program Awards C. Promotion of Officer Roger Andrew Wilds to Police Officer II i D. Sgt.T.J. Goforth 2. City Manager Comments A. Hazardous Materials Incident B. National Night Out C. Capital Project Improvements Update D. Water Supply Update E. Upcoming Events F. Reduction in Fuel Consumption G. Fund Balance Estimate 3. Closed Session Pursuant to N.C.G.S. 143-318.11(a)(3), N.C.G.S. 143-318.11(a)(4), and N.C.G.S. 143-318.11(a)(5) CONSENT AGENDA The City Council uses a Consent Agenda to consider items that are non-controversial and routine. The Consent Agenda is acted upon by one motion and vote of the Council. Items may be removed from the Consent Agenda and placed on the Regular ~'1 Agenda at the request of a Council Member or Citizen. The Consent Agenda contains the following items: 4. Approval/Acceptance of Minutes and Staff Reports A. Minutes of Regular City Council Meeting of July 15, 2008 B. Minutes of Special Joint City Council Meeting of July 21, 2008 C. Minutes of City Facilities Committee Meetings of March 17, 2008 and May 12, 2008 D. Minutes of Historic District Commission Meeting of May 12, 2008 E. Minutes of Historic Preservation Commission Meeting of June 6, 2008 F. Minutes of Board of Adjustment Meeting of June 26, 2008 G. Draft Minutes of the Planning Board Meeting of August 6, 2008 H. Union County Historic Preservation Commission Annual Report Regular City Council Meeting August 19, 2008 Page 62 I. Summary of Contracts Awarded, Change Orders Approved, and City Manager Settlement of Claims 5. Resolutions A. Authorizing Condemnation to Acquire Electric Transmission and Distribution Easements over Certain Property of Gerald S. and Dorothy Taylor Dudley B. Appointing Deputy Finance Officers to Execute Purchase Orders C. Intent to Abandon a Portion of the Unopened Right-of--Way of Iceman Street Extension and Call for Public Hearing to be Held September 16, 2008 D. Continuing Public Hearing to Close the At-Grade Railroad Crossing at Normand Street from August 19, 2008 to September 16, 2008 E. Authorizing the Purchase of Natural Gas From Tennergy Corporation F. Accepting NCLM Green Challenge 6. Ordinances A. Amending Code of Ordinances -Chapter 76: Parking Schedules - Schedule I - Parking Prohibited at All Times B. Amending Code of Ordinances -Chapter 75: Traffic Schedules -Schedule I(B) -Speed Limits 7. Budget Amendments A. Transferring Workers' Compensation Self Insurance Fund Budget B. Funding for the Purchase of Property Located at 329 East Franklin Street 8. Bud et Ordinance for Aero ointe Industrial Park Phase I - Aeropointe Parkway g p 9. Call for Public Hearings to be held September 2, 2008 A. Zoning Map Amendment Request by Michael and Sandra Shackelford for the Property Located at 1815 Morgan Mill Road from GI (General Industrial) to Conditional District "S & S Maintenance" B. Zoning Text Amendment Request to Amend the Unified Development Ordinance to Add a Public Safety Protection Overlay District and Supplementary Regulations 10. Approval of an Agreement between the City of Monroe and North Carolina Municipal Power Agency Number 1 for Renewable Energy Development 11. Award of Bid for Pipe for Transmission Line Project 12. Certification of 2008-2009 Tax Base and Tax Charge 13. Annual Settlement of Tax Collector for 2007 14. Amendment to Customer Service Policy 15. Charlotte-Monroe Executive Airport A. Termination Agreement with Southern Cross Ranch, LLC Regular City Council Meeting August 19, 2008 Page 63 B. Budget Amendment REGULAR AGENDA Public Hearings -Please adhere to the following guidelines: • Proceed to the podium, and state your name and address clearly; • Be concise; avoid repetition; limit comments to three (3) minutes or less; • Designate a spokesperson for large groups. 16. Monroe Athletic League - Mr. Tim McBride 17. Zoning Map Amendment Request by Albert Isaac for Property Located at 501 East Franklin Street from OT (Office Transitional) to Conditional District "Southgate/LKQ" (Fast Track Request) A. Public Hearing B. Action 18. Solid Waste Fuel Recovery Fee 19. Recommendation of Appointments from Citizens Appointment Committee A. ABC Board /~'~ B. Board of Adjustment (` C. Community Appearance Commission D. Fireman Relief Fund Board of Trustees E. Monroe Housing Authority F. Planning Board G. Public Safety Committee 20. Public Comment Period A. Mr. Donald Polk B. Mr. Harry Sherwood C. Mr. Keith Merritt Regulaz City Council Meeting August 19, 2008 Page 64 CITY OF MONROE REGULAR CITY COUNCIL MEETING ~'~ AUGUST 19, 2008 - 6:30 P.M. MINUTES The City Council of the City of Monroe, North Carolina, met in Regular Session in the City Hall Council Chambers, 300 W. Crowell Street, Monroe, North Carolina, at 6:30 p.m. on August 19, 2008 with Mayor Kilgore presiding. Present: Mayor Bobby G. Kilgore, Mayor Pro Tem P.E. Bazemore, Council Members John Ashcraft, Billy Jordan, Lynn Keziah, Dottie Nash, Robert J. Smith, City Manager F. Craig Meadows, City Attorney Terry Sholar, and City Clerk Bridgette H. Robinson. Absent: None. Visitors: Bruce Bounds, Jim Loyd, Ernest Collins, Janie Robinson, James Mungo, Eddie Hammond, Roger Wilds, Mark Coan, Chris Rowan, Timothy McEntire, Patsy Madden, Mary Ross, Lona Burns, Jack Lawson, Don Donahue, P.G. Broome, Mike Fain, Javier Villarreal, Michael Chapman, Tim McBride, Annie Irving, Jeanette Sherrod, Larry Leake, Brownie Irving, Linda Ashendorf, Mike Hampton, Donald Polk, Dale Ledbetter, Drew Boggs, Jason deBruyn, Bryan Gilliard, Ron Fowler, James Hughes, Don Mitchell, T.J. Goforth, Debra C. Duncan, Chris Plate, Wayne Herron, Jan Ball, Doug Britt, Dorothy Polk, Mark Wright, Max Melton, Harry Sherwood, and others. Mayor Kilgore called the Regular City Council Meeting of August 19, 2008 to order at 6:30 p.m. A quorum was present. Item No. 1. Recognitions. A. Resolution to Rename the Section of Burke Street from Winchester Avenue to Fairley Avenue to "P.E. Bazemore Drive." Council Member Smith moved to adopt Resolution R- 2008-82: RESOLUTION TO RENAME THE SECTION OF BURKE STREET FROM WINCHESTER AVENUE TO FAH2LEY AVENUE TO "P.E. BAZEMORE DRIVE" R-2008-82 WHEREAS, Mr. P.E. Bazemore gives of himself to his church, community, civic affairs and to the City and State government with commitment, self-sacrifice, and willingness to serve all humankind beyond measure, and; Regular City Council Meeting August 19, 2008 Page 65 WHEREAS, Mr. Bazemore was born in Windsor, North Carolina and worked as an agent with the North Carolina Agricultural Extension Office until he retired in 1981 in Union County, and; WHEREAS, Mr. Bazemore was first elected to the City Council in 1981, at which point he began his second career which now represents nearly 28 years of continued service to the Citizens of Monroe as a City Council Member, and; WHEREAS, due to his leadership, encouragement, and dedication to the City of Monroe, Mr. Bazemore has been elected Mayor Pro Tem since 1997 and served as Mayor in 2005, and; WHEREAS, the Monroe City Council has determined that it would be fitting and proper to rename the current section of Burke Street, from Winchester Avenue to Fairley Avenue, in honor of Mr. Bazemore's dedication and service to the City and citizens of Monroe. NOW, THEREFORE, BE IT RESOLVED THAT the section of Burke Street from Winchester Avenue to Fairley Avenue is renamed to "P.E. Bazemore Drive." Adopted this 19`" day of August, 2008. Council Member Nash seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, a.nd Mayor Kilgore NAYS: None Mayor Kllgore recognized Mayor Pro Tem Bazemore and presented hlm with a framed copy of the Resolution which he read. Mr. Willie Featherstone, Trustee of Friendship Baptist Church, stated that many in attendance probably knew as much if not more about Mr. Bazemore than he did. He thanked the church and their pastor, Reverend Leake, for submitting the application requesting the street name change. He also thanked Council Member Ashcraft for his support and encouragement in this effort, as well as City staff. Mr. Featherstone stated that Engineering Director Jim Loyd had worked hard in helping to ensure that the church did their part to make this name change successful. He stated that if, at some time in the near future, Council wi:;hed to have a dedication ceremony to ~~ formalize the street name change, his church would offer :members to serve on the committee to make sure this happened. Mr. Featherstone stated that this name change was well deserved and all the things that Mr. Bazemore has done in Union County is very much appreciated. Rev. Larry Leake, on behalf of Friendship Baptist Church, thanked Council for the honor that was given to one who has given much of himself to the church, community, and city government. He also thanked Council for pinning this recognition onto a servant who was worthy of the recognition. B. July 2008 Citizen Recycling Incentive Program Awards. Mayor Kilgore recognized the '~ winners of the Citizen Recycling Incentive Program Awards for July 2008: First Place -Mrs. Ewell C. Madden, Jr. ($200), and Second Place -Mrs. Hugo Reynoso Rivera ($100). Mrs. Regulaz City Council Meeting August 19, 2008 Page 66 Madden will compete with future monthly winners for the annual grand prize of $500 which is being provided by Allied Waste Industries. in June 2009. C. Promotion of Officer Royer Andrew Wilds to Police Officer II. Police Chief Debra Duncan recognized Officer Roger Andrew Wilds for receiving his Police Officer II advancement. D. Sgt. T.J. Goforth. Chief Duncan read the following department letter of commendation for Sgt. T.J. Goforth: "This is a department letter of commendation for the compassion and care you exhibited at the National Night Out celebration held at the Chase Apartments on August 5. It was brought to my attention by Monroe Fire Department Captain Rodney Rogers that you noticed a little boy who was not swimming with all of the other children. You began to talk with the child and discovered that he had recently had surgery and his family apparently did not have a lot of money. He was not swimming because he did not have a swim suit. You took it upon yourself to go to the store right then and purchase a swim suit for this child. However, your kindness did not stop there. The child put on the swim suit but told you that he could not get into the pool because he did not have anyone to play with. Without hesitation, you secured your gun belt and got into the pool with the little boy, uniform and all. You brought so much joy to this child by being the caring and compassionate person that you are. You are an asset to the Monroe Police Department and the City of Monroe. Keep up the good work!" Item No. 2. City Manager Comments. City Manager Meadows briefed Council on the following: A. Hazardous Materials Incident. The Fire and Police departments responded to a potentially dangerous incident this morning at Metal Recyclers. Employees of Metal Recyclers cut into a metal cylinder and were affected by an unknown gas. The Fire Department set up a decontamination unit and treated ten employees who were all transported to CMC Union for further treatment. All employees have been released, and it appears that the gas in the cylinder was acetelyne. B. National Night Out. The City had great participation for the National Night Out festivities. The parade and relay race on August 2 went very well, and there were 31 neighborhoods participating in the National Night Out events on August 5. C. Capital Proiect Improvements Update. The City has a number of capital improvement projects that are nearing completion. The pro shop addition at the golf course is complete. Phase one renovations of the armory should be complete within 30-45 days. The Walter Bickett stadium renovations and improvements should be complete by the end of the week. The natural gas pipeline project along Ridge Road should be completed by the end of September. The survey work and soil testing is underway at the old Winchester School site and the design work should be underway within a few weeks. D. Water Supply Update. As of Monday, the City has approximately 260 days of water supply in the reservoirs. Lake Lee and Lake Monroe are at full pond. Mr. Meadows advised that the Regulaz City Council Meeting August 19, 2008 Page 67 water situation this summer is much improved over last year, and with periodic continued rainfall, the City should be able to avoid any mandatory water restrictions this fall. ~~ E. Upcoming Events. The downtown Open Air Market will be held three more times this summer: August 21, September 4, and September 18. The City's annual employee appreciation picnic will be held on September 20 at Belk Tonawanda Park. A concert will be held in downtown Monroe as part of the Cycle North Carolina bicycling competition on October 1 with Billy Scott and the Prophets as the headliner. F. Reduction in Fuel Consumption. The City is reviewing a number of steps in an effort to reduce fuel consumption. One key step is in vehicle purchases. Ten of the 34 vehicles the City is purchasing this year, will be hybrid vehicles (electric/g;as). Sixteen police vehicles will have the ability to run on four cylinders as well as eight. G. Fund Balance Estimate. As of June 30, the General Fund unappropriated fund balance is slightly over 29%. Staff will have a more precise figure once final audit adjustments have been completed. Item No. 3. Closed Session Pursuant to N.C.G.S. 143-318.11(a)(31. N.C.G.S. 143- 318.11(a)(4), and N.C.G.S. 143-318.11(a)(5). Council Member Nash moved to go into Closed Session pursuant to N.C.G.S. 143-318.11(a)(3), N.C.G.S. 143-318.11(a)(4), and N.C.G.S. 143- 318.11(a)(5). Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None CONSENT AGENDA Upon return from Closed Session, Mayor Kilgore reviewed the Consent Agenda and asked if any member of the Council or citizen would like to have any items moved from the Consent Agenda to the Regular Agenda for discussion. Written background information was provided in advance in the Council Agenda Packets for each item on the Consent Agenda. No further discussion was held. One motion and vote was taken, which included approval of all items on the Consent Agenda. Following approval of the Consent Agenda, Mr. Keith Merritt, on behalf of Boggs Properties, requested that Item No. 15. (Charlotte-Monroe Executive Airport -Termination Agreement with Southern Cross Ranch, LLC and Budget Amendment) be removed from the Consent Agenda because he felt that this was a controversial and non-routine issue. City Attorney Sholar advised Council that any member of Council or a citizen can request to have an item moved from the Consent Agenda to the Regular Agenda for discussion; however, this request was at the discretion of City Council. Regular City Council Meeting August 19, 2008 Page 68 There was no action from Council to remove Item No. 15 from the Consent Agenda to the Regular Agenda. Mr. Merritt stated that he would make his comments with regard to Item No. 15 under the public comment period. Mayor Kilgore advised that he would be given an opportunity to speak at that time. Item No. 4. ApprovaUAcceptance of Minutes. A. Minutes of Regular City Council Meeting of July 15, 2008. Council Member Nash moved to approve the Minutes of the Regular City Council Meeting of July 15, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: ~~ AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Minutes of Special Joint City Council Meeting of July 21, 2008. Council Member Nash moved to approve the Minutes of the Special Joint City Council Meeting of July 21, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, ` Smith, Mayor Pro Tem Bazemore, a.nd Mayor Kilgore NAYS: None C. Minutes of City Facilities Committee Meetings of March 17, 2008 and May 12, 2008. Minutes of the City Facilities Committee Meetings of March 17, 2008 and May 12, 2008 were received as information by Council. D. Minutes of Historic District Commission Meeting of May 12, 2008. Minutes of the Historic District Commission Meeting of May 12, 2008 were received as information by Council. E. Minutes of Historic Preservation Commission Meeting of June 6, 2008. Minutes of the Historic Preservation Commission Meeting of June 6, 2008 were received as information by Council. F. Minutes of Board of Adjustment Meeting of June 26, 2008. Minutes of the Board of Adjustment Meeting of June 26, 2008 were received as information by Council. G. Draft Minutes of Board of Planning Board Meeting of August 6, 2008. Draft Minutes of the Planning Board Meeting of August 6, 2008 were received as information by Council. Regulaz City Council Meeting August 19, 2008 Page 69 H. Union County Historic Preservation Commission Annual Report The Annual Report of the Union County Historic Preservation Commission was received as information by Council. I. Summary of Contracts Awarded, Approved Chan;ae Orders, and Settlement of Claims. City Manager Meadows reported by memorandum the award of contracts pursuant to Ordinance 0-2001-17 and Change Orders approved pursuant to Resolution R-2000-76. There were no settlement of claims. Date Name Purpose Fiscal Impact Fund Amount 6/30/08 QEI, Inc. _ Software & Hardware Water Resources, $18,876 A reement Electric & N Gas 7/1/08 Metrolina Glass & Framing For emergency glass Parks & *$4,500 repairs at various City Recreation buildin s 7/1/08 Piedmont Golf Cars Repair golf carts <~t Golf Course *$4,500 Monroe Country Club as needed 7/1/08 ITT Flowtronex Repair irrigation Golf Course *$4,500 pump station as needed _ 7/1/08 Love Plumbing & Air For emergency Parks & *$2,500 Conditioning Co., Inc. plumbing repairs to Recreation all Cit buildin s 7/1/08 Carolina Plumbing Service For emergency Golf Course *$2,500 plumbing repairs at Monroe Count Club 7/1/08 Carolina Plumbing Service For emergency Parks & *$2,500 plumbing repairs to Recreation all Cit buildin s 7/1/08 ARM Environmental Asbestos survey at General *$1,075 Services, Inc. 317 East Morrow Avenue 7/1/08 Todd Crump Electric, Inc. To install new lights General -Capital *$2,900 and speakers at the Projects new Police Firing Ran e 7/1/08 Todd Crump Electric, Inc. For miscellaneous Parks & *$4,500 electrical work to City Recreation buildin s as needed 7/1/08 I.L.S. Technical Services Maintenance of Airport $12,440 NAVAIDS 7/1/08 Turf Specialties To aerate golf course Golf Course *$4,000 'greens (21) and remove the cores 7/1/08 Under Par Golf, LLC Monroe Country Club Golf Course *$3,000 Driving Range Shop Rental A reement 7/02/08 Roger Melton.Painting Co. To paint boathouses Water Resources *$3,990 at Lake Lee, Monroe, and Twi Regulaz City Council Meeting August 19, 2008 Page 70 n Date Name Purpose Fiscal Impact Fund Amount 7/02/08 Morrison Appraisal, Inc. __ Appraisal services Water Resources *$1,000 related to the purchase of the 'Qu 7/2/08 Allied Corrosion Industries, To provide cathadic Natural Gas *$2,500 Inc. rotection assistance 7/2/08 Wilson Fence Company, Inc. To remove/replace Natural Gas *$4,999 and for miscellaneous services at the Pro ane Air Plant 7/2/08 Crown Seal and Stripe To clean, resurface, MAFC -Capital $11,550 and re-stripe lower Projects lot, handicapped areas and entrance circle at MAFC 7/3/08 Vision Technologies, Inc. For lightning Airport $8,850 protection maintenance at Ai ort 7/3/08 Professional Concrete Cutting Removal of concrete Water Resources $9,140 drying bed walls at the WWTP 7/3/08 Carolina Cat, Division of Mechanical repairs to Water Resources $9,458 Carolina Tractor 1600 KW Generator at WWTP 7/3/08 Fence Row Farms _ For erection of steel Water Resources $22,474 structure and upgrade to Carbon Building at Water Treatment facilit 7/3/08 Joe Price Acoustics 'John Glenn Water Water Resources $9,502 Treatment Plant Flooring Re lacement 7/3/08 In-Water Services For service cleaning Water Resources $10,500 of the WTP 2 million allon clear well 7/3/08 Hinson Mechanical Company Preventative Parks & $28,776 maintenance to Recreation HVAC units in (:ity buildings 7/3/08 Hinson Mechanical Company Emergency heating Parks & $25,000 and or repairs to City Recreation buildin s 7/3/08 Piedmont Golf Carts, Inc. Preventative Golf Course $8,100 maintenance of golf carts 7/8/08 Lawrence Associates For topographic General *$3,500 survey of the current roadways and surroundin area at Regular City Council Meeting August 19, 2008 Page 71 Date Name Purpose Fiscal Impact Fund Amount _ Mara Lane and Jannock Court 7/8/08 Partners Lawn & For grounds Electric *$1,200 Landscaping maintenance at electrical substations 7/17/08 H.C. Rummage, Inc. Armory Renovation General -Capital $83,610 (Chan e Order) Pro'ects 7/23/08 Tri-State Technical Services, Repairs to MAFC *$1,000 Inc. (dba TLC) commercial washer and d er as needed 7/23/08 Ramey Kemp & Assoc., Inc. Traffic Engineering General $55,950 (Change Order) Services Downtown Monroe _ 7/24/08 Henry M. Black To abate properties at General $20,000 the direction of Code Enforcement after the properties have failed to comply with City ordinances _ 7/24/08 Resolve Environmental Assessment and Water Resources $10,000 Services evaluation of the Monroe Rock u;~ 7/28/08 Cover All Paving and Seal Paving parking area Water Resources $10,400 Coating, Inc. and side walks at the WWTP Office Buildin *Approved by Department Director - Total $409,290 Item No. 5. Resolutions. A. Authorizing Condemnation to Acquire Electric Transmission. and _Distribution Easements over Certain Property of Gerald S. and Dorothy Taylor Dudley. Energy Services Director Don Mitchell advised by memorandum that Council previously approved the Transmission Loop Project which involves construction of 13 miles of 100 kV transmission line with 13/35 kV underbuild distribution to provide a loop between all of the City electric substations and wholesale power delivery points. This transmission loop will provide a more reliable electric system for the City's customers and will meet requirements of the City's transmission supplier, Duke Energy. Mr. Mitchell advised that for the most part, the project was being built on private easements. To date, negotiations with several property owners for the required easements have been unsuccessful. These easements are required to complete t:he subject electric Transmission Loop project. Staff will continue to negotiate in good faith with the property owners in an effort to resolve this issue. Staff recommended that Council adopt a Condemnation Resolution to allow completion of the electric Transmission Loop Project. Council Member Nash moved to adopt Resolution R-2008•-63: Regular City Council Meeting August 19, 2008 Page 72 ~'1 RESOLUTION AUTHORIZING CONDEMNATION TO ACQUIRE ELECTRIC TRANSMISSIO:K AND DISTRIBUTION EASEMENTS OVER CERTAIN PROPERTY OF GERALD S. AND DOROTHY TAYLOR DUDLEY R-2008-63 WHEREAS, the governing body of the City of Monroe hereby determines that it is necessary and in the public interest to acquire an electric transmission and distribution easement over certain properly owned by Gerald S. and Dorothy Taylor Dudley, as recorded in Deed Book 4796, Page 187, for the following public purposes: To protect and promote the public health, to provide the public with an adequate and sound electric system, and to improve such system to meet the need for expanded or upgraded services and specifically to extend its electric lines and related facilities over the property hereinafter described to provide service to the Electric System, as authorized by North Carolina General Statutes 160A-312 and required by N.C.G.S. 160A-47 and 49; and WHEREAS, the City of Monroe has been unable to acquire the needed interest in this property by negotiated conveyance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONROE, THAT: A. The location and dimensions of the easement hereinafter described is the most direct, practical and cost-effective route for the City's purposes. B. The City of Monroe shall acquire by condemnation, far the purpose stated above, the property and interest described as follows: A perpetual right, privilege and easement to go in and upon that certain parcel of land (hereinafter "premises") situated in Union County and State of North Carolina and more fully described in Deed Book 4796, Page 187 Union County Registry, and to construct, maintain and operate electric transmission and distribution lines and other necessary apparatus and appliances, the particular description of the right-of--way and easement is shown on a map attached hereto as Exhibit "A" and incorporated herein by reference. The following rights are also to be acquired by condemnation: 1. To enter said premises to inspect said lines. 2. To perform necessary maintenance and repairs. 3. To make alterations and additions thereto. 4. To remove from the right-of--way strip, now or at any time in the future, trees, structures or other obstructions that may interfere with the proper maintenance and operation of said lines. 5. To install poles, crossarms, wires, guys, anchors, cables, transformers, and other necessary apparatus and appliances, overhead lines for the purpose of transporting electricity and for the communications purposes of Grantee and regulated telephone utilities. Regular City Council Meeting August 19, 2008 Page 73 6. To regulate, restrict or prohibit any future building (construction or structure) within the easement. 7. To regulate, restrict or prohibit any changes of grade within the easement. 8. The easements shall be located and have the dimensions as shown on the above referenced map. The City's right to enter said land shall be confined to streets, roads and driveways when they exist at the time entry is necessary and when they are adequate for the City's purpose, but when they do not exist or are not adequate, such right to enter shall be over the nearest most practical route or routes to said easement. C. The attorneys representing the City of Monroe are directed to institute the necessary proceedings under Chapter 40A of the North Carolina General Statutes including the Notice of Condemnation to acquire the property interest herein described and to use the quick take provisions of N.C.G.S. 40A-42(a). Adopted this 19`h day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Annointin~ Deputy Finance Officers to Execute Purchase Orders. Finance and Administration Director Jim Fatland requested by memorandum that Council adopt a Resolution appointing the City's Administrative Services Manager, Accounting Manager and Budget Analyst as Deputy Finance Officers for the City of Monroe for the sole purpose of executing the certificate included on the face of purchase orders issued as required by N.C.G.S. 159-28. Mr. Fatland advised that North Carolina General Statutes state that "no obligation may be incurred in a program, function, or activity unless a budget appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay the obligation." The statute further states that "if an obligation to be incurred by the City is evidenced by a purchase order, the purchase order shall include on its face a certificate stating that the purchase order has been preaudited to assure compliance with said statute." N.C.G.S. 159-28 also requires that the certificate be signed by the Finance Officer or any Deputy Finance Officers approved for this purpose by City Council. Council Member Nash moved to adopt Resolution R-2008-78: RESOLUTION APPOINTING DEPUTY FINANCE OFFICERS R-2008-78 Regular City Council Meeting August 19, 2008 Page 74 WHEREAS, N.C.G.S. Chapter 159-28 states that no obligation may be incurred in a program, function, or activity unless a budget appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay the obligation; and WHEREAS, N.C.G.S. 159-28 also states that if an obligation to be incurred by the City is evidenced by a purchase order, the purchase order shall include on its face a certificate stating that the purchase order has been preaudited to assure compliance with. said statute; and WHEREAS, N.C.G.S. 159-28 also requires that the certificate be signed by the Finance Officer or any Deputy Finance Officers approved for this purpose by City Council. NOW, THEREFORE, BE IT RESOLVED that the City's Administrative Services Director, Accounting Manager and Budget Analyst are hereby appoinlted Deputy Finance Officers for the City of Monroe for the sole purpose of executing the certificate incIluded on the face of purchase orders issued as required by N.C.G.S. 159-28. Adopted this 19t1i day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None C. Intent to Abandon a Portion of the Unopened Right-of-Way of Iceman Street Extension and Call for Public Hearing to be Held September 16, 2008. Engineering Director Jim Loyd advised by memorandum that staff had received a request from Union County Habitat for Humanity, Inc. to abandon approximately 90 feet of unopened right-of--way of Iceman Street Extension. He advised that N.C.G.S. §160A-299 provides that reasonable access, ingress and egress, must be maintained to adjoining properties. The curl°ent tax records show Manetta Mills, Inc. owning Tax Parcel 09-271-001 which would be landlocked. To address this concern, Habitat has acquired the property. Mr. Loyd advised that if the abandonment is approved, Habitat intends to record a recombination plat, combining tax parcels 09-268-046B, 09-268- 0460 and 09-271-001 into one tax parcel, including the abandoned right-of--way. Staff recommended that Council adopt a Resolution of Intent to abandon approximately 90 feet of unopened right-of--way of Iceman Street Extension which is located off Icemorlee Street and call for a public hearing to be held on September 16, 2008 at 6:30 p.m. Council Member Nash moved to adopt Resolution R-2008-79 and call for a public hearing to be held September 16, 2008 at 6:30 p.m.: RESOLUTION OF INTENT TO ABANDON A PORTION OF THE UNOIPENED RIGHT-OF-WAY OF ICEMAN STREET EXTENSION R-2008-79 Regular City Council Meeting August 19, 2008 Page 75 THAT WHEREAS, the Monroe City Council proposes to permanently abandon a portion of the 30 foot unopened right-of--way of Iceman Street Extension shown on a plat recorded in Plat Book 3, Page 11 between Blocks B and C and beginning at the rear lot line of now or formerly John L. Tompkins property recorded in Record Book 4227, Page 441 in the Union County Registry and extending in an southeasterly direction about 90.07 to the terminus of said street pursuant to Section 299 of Chapter 160A of the General Statutes of North Carolina. NOW, THEREFORE, BE IT RESOLVED that the Monroe City Council declares its intent to permanently abandon the unopened right-of--way as described above for Iceman Street Extension and reserves any existing public or private utility easements contained. therein. The City Council orders that a Public Hearing be called. on the question at 6:30 p.m., Tuesday, September 16, 2008. The City Clerk is hereby directed: 1. To publish a copy of this Resolution in a newspaper authorized to publish legal ads in the City of Monroe as required by statute. 2. To send a copy of this Resolution by certified or registered mail to all owners of the property adjoining the street as shown on the tax records. 3. To cause a Notice of the closing and Public Hearing to be prominently posted in at least two places along said street. 4. To mail a copy of this Resolution to the Department of Transportation if said street is under the authority and control of the Department of Transportation. Adopted this 19th day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None D. Continuing Public Hearing to Close the At-Grade Railroad Crossing at Normand Street from August 19, 2008 to September 16, 2008. Engineering Director Loyd advised by ~'1 memorandum that on July 15, Council adopted Resolution of Intent R-2008-76 calling for a public hearing to be held on August 19, 2008 to consider closing the at-grade railroad crossing. N.C.G.S. § 160 A-299 requires that "the 'Resolution shall be published once a week for four successive weeks prior to the hearing. " The City forwarded the appropriate advertisement requesting the required publishing dates, but on August 1, 2008 the legal advertisement failed to be published in the local paper, necessitating that this process re-start. Therefore, Staff recommended that Council adopt a Resolution considering; the permanent closing of the at-grade railroad crossing at Normand Street and continuing the public hearing until September 16, 2008 to allow the legal advertisement to occur as required by General Statute. Council Member Nash moved to adopt Resolution R-2008-81 and call for a public hearing to be held September 16, 2008 at 6:30 p.m.: Regular City Council Meeting August 19, 2008 Page 76 RESOLUTION CONTINUING PUBLIC HEARING TO CLOSE THE AT-GRADE RAILROAD CROSSING AT NORMAND STREET R-2008-81 THAT WHEREAS, the Monroe City Council proposes to permanently close the at-grade railroad crossing at Normand Street pursuant to Section 299 of Chapter 160A of the General Statutes of North Carolina, and; WHEREAS, the Monroe City Council adopted a Resolution of Intent R-2008-76 on July 15, 2008 calling for a Public Hearing to be held on August 19, 2008 to consider closing the at-grade railroad crossing. General Statute 160 A-299 requires that "'the resolution shall be published once a week for four successive weeks prior to the hearing, "and; WHEREAS, on August 1, 2008, the legal advertisement failed to be published in the local paper, necessitating that this process re-start. Staff is requesting that the Public Hearing be continued until September 16, 2008 to allow the legal advertisement to occur as required by General Statute 160 A- 299. NOW, THEREFORE, BE IT RESOLVED that the Monroe City Council continues the Public Hearing from August 19, 2008 to September 16, 2008 to permanently close the at-grade railroad crossing at Normand Street. The City Council orders that a Public Hearing be called on the question at 6:30 p.m., Tuesday, September 16, 2008. The City Clerk is hereby directed: 1. To publish a copy of this Resolution in a newspaper autYlorized to publish legal ads in the City of Monroe as required by statute. 2. To send a copy of this Resolution by certified or registered mail to all owners of the property adjoining the street as shown on the tax records. 3. To cause a Notice of the closing and Public Hearing to be prominently posted in at least two places along said street. 4. To mail a copy of this Resolution to the Department of Transportation if said street is under the authority and control of the Department of Transportation. ~l Adopted this 19`I' day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcroft, Jordan., Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None E. Authorizint: the Purchase of Natural Gas From Tennergy Corporation. Energy Services Director Don Mitchell advised by memorandum that ovver the past several years, many public natural gas entities have entered into prepaid gas deals. The City's Energy Services Department Regulaz City Council Meeting August 19, 2008 Page 77 has closely followed this growing trend and, in February 2007, presented to Council the details and concept of prepaid natural gas purchases. Mr. Mitchell advised that at the February 2007 Council meeting, Council authorized staff to enter into prepaid gas purchases pending Local Government Commission (LGC) approval. Staff has since received notice from the LGC that their approval was not required for prepaid natural gas purchases. Staff is currently working with Hess Energy to enter into a 20 year contract with Tennergy Corporation. This contract will supply about 20% of the City's current firm gas supply at an estimated discount of $0.70/Dt. The estimated discount will reduce the City's natural gas cost by $191,000 per year. Assuming a 5% interest rate the contract will have a net present value of $2,380,000. Staff recommends that City Council adopt a Resolution to purchase natural gas from Tennergy Corporation. Council Member Nash moved to adopt Resolution R-2008-83: RESOLUTION AUTHORIZING THE PURCHASE OF NATURAL GAS FROM TENNERGY CORPORATION; APPROVING THE EXECUTION AND DELIVERY OF A NATURAL GAS SUPPLY AGREEMENT AND OTHER DOCUMENTS RELATING TO SAID PURCHASE; AND CONSENTING TO THE ASSIGNMENT OF CERTAIN OBLIGATIONS UNDER THE NATURAL GAS SUPPLY AGREEMENT IN CONNECTION WITH THE ISSUANCE OF BONDS BY TENNERGY CORPORATION R-2008-83 WHEREAS, Tennergy Corporation ("Tennergy") is an energy acquisition corporation formed pursuant to the provisions of Title 7, Chapter 39, Tennessee Code Annotated (the "Act"), to be an instrumentality of certain municipalities that caused the formation of Tennergy; and WHEREAS, Tennergy was formed, among other reasons, for the purpose of acquiring, financing, and managing supplies of natural gas for sale to the associated municipalities of Tennergy and for the purpose of selling gas to other public entities inside and outside the State of Tennessee as shall be in the best interest of Tennergy; and WHEREAS, Tennergy has planned and developed a gas supply project under which it will finance the acquisition of gas supplies for sale to public gas distribution systems (the "Customers"), including Tennergy's associated municipalities, so as to bring the benefits of secure, reliable and economical gas supplies to the Customers and their citizens, inhabitants, and customers; and WHEREAS, the Mayor and City Council (the "Governing Body") of City of Monroe, North Carolina (the "Purchaser") has determined that it is in the best interest of its natural gas distribution system (the "System") and the customers thereof that the Purchaser purchase a portion of its annual natural gas requirements from Tennergy pursuant to a naturall gas supply agreement to be entered into by Tennergy and the Purchaser, as more fully described herein (the "Supply Agreement"), and one or more supplemental confirmation letter agreements (collectively, the "Confirmations") to be executed by the Purchaser subsequent to the execution of the Supply Agreement and attached to the Supply Agreement as a schedule or schedules thereto; and ( f WHEREAS, for the purpose of providing funds to purchase gas supplies for resale to the Customers, it will be necessary for Tennergy to issue andl sell one or more series of bonds (the Regulaz City Council Meeting August 19, 2008 Page 78 "Bonds") and pledge to the payment of the Bonds certain assets of Tennergy, including the Supply Agreement between Tennergy and the Purchaser; and WHEREAS, the Purchaser shall have no obligation or liability with respect to the Bonds, and the Purchaser's only obligations relating to Tennergy's gas program described herein shall be set forth in the Supply Agreement and the Confirmations attached thereto; and WHEREAS, in order to authorize the purchase of natural gas from Tennergy and the execution of the Supply Agreement and the Confirmations, to consent to the assignment of the Supply Agreement and such Confirmations to secure the Bonds and to authorize and take such other necessary and appropriate action in furtherance of the above described pre~gram, the Governing Body adopts this resolution. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the Purchaser as follows: I. The Purchaser is authorized to enter into a Supply A€;reement with Tennergy, pursuant to which Purchaser may execute Confirmations to purchase gas i~rom Tennergy for a period of up to two hundred forty (240) months under any Confirmation: The Supply Agreement shall be in substantially the form submitted and attached hereto as Exhibit A, which such form is hereby approved, with such completions, omissions, insertions, and changes as may be approved by the officers executing said Agreement, their execution to constitute conclusive evidence of their approval of any such omissions, insertions and changes. The Mayor (the "Executive Officer") of the Purchaser is hereby authorized to execute and the City Clerk (the "Attesting Officer") of the Purchaser to attest the Supply Agreement. 2. The Purchaser is authorized to enter into one or mare Confirmations subsequent to the execution of the Supply Agreement. Each Confirmation shall be in substantially the form submitted and attached to the Supply Agreement as Exhibit A thereto, which. form is hereby approved, with such completions, omissions, insertions, and changes as may be approved by the representative executing said Confirmation, his or her execution to constitute conclusive evidence of his or her approval of any such omissions, insertions and changes. Each Confirmation shall contain certain terms, including the specific volume levels and pricing information, for the gas to 'be purchased by the Purchaser pursuant to that Confirmation. The Mayor (the "Authorized Confirmation Representative") is hereby authorized (a) to determine on behalf of the Purchaser whether or not the terms of each Confirmation are acceptable to the Purchaser and, (b) if such terms are acceptable in the determination of the Authorized Confirmation Representative, to execute and deliver the Confirmation on behalf of the Purchaser to Tennergy. In the interest of time, the Authorized Confirmation Representative may indicate to Tennergy his or her acceptance of the terms of the; Confirmation by telephone, electronic mail or facsimile, with an original of the signed Confirmation delivered promptly to Tennergy, and the Confirmation shall become binding and effective upon the exchange of a signed copy of the Confirmation between the Purchaser and Tennergy. 3. In no event shall the Authorized Confirmation Representative approve the purchase of total gas volumes in all Confirmations of more than 5,571,850 MMBtu (the "Maximum Volume Amount") over the term of the Supply Agreement. The officers, employees and agents of the Purchaser are hereby authorized and directed to take. such actions and do all things necessary to cause the purchase of said gas to take place, including the payment of all amounts required to be paid in order to purchase the gas in accordance with the Supply Agreement and the Confirmations thereto. 4. The Governing Body hereby consents to the assignment and pledge of all Tennergy's right, title and interest under the Supply Agreement and each Confirmation, including the right to receive performance by the Purchaser of its obligations thereunder, to secure the payment of principal of and interest on the Bonds issued by Tennergy for the purposes hereinabove set forth. Regular City Council Meeting August 19, 2008 Page 79 fi 5. The Bonds are not obligations of the Purchaser but are limited obligations of Tennergy payable solely from the revenues and receipts pledged by Tennergy under the Trust Agreement, including the revenues and receipts arising from the sale of l;as to Customers pursuant to the Supply Agreement and similar agreements with the other Customers. By consenting to the assignment of the Supply Agreement, the Purchaser is not incurring any obligation or liability with respect to the Bonds, and the Purchaser's only obligation pursuant to this Resolution is to purchase natural gas and perform its other obligations as set forth in the Supply Agreement and the Confirmations attached thereto. 6. The officers and employees of the Purchaser an~i any other agent or representative of the Purchaser are hereby authorized and directed to cooperz~te with Tennergy and its agents and representatives in providing information relative to the System for inclusion in the preliminary official statement describing, among other things, the Bonds and the System. After the Bonds have been sold, any executive officer or employee of the Governing Body, or any agent or representative designated t"'~, by the Purchaser, shall make such completions, omissions, insertions and changes in the preliminary l ~ official statement relating to the System not inconsistent with this resolution as are necessary or desirable to complete it as a final Official Statement for purposes of Rule 15c2-12(e)(3) of the Securities- and Exchange Commission (the "Rule"), and the Governing Body hereby covenants and agrees that the Purchaser will cooperate with Tennergy in the discharge of Tennergy's obligations to provide annual financial and operating information with respect to the System as may be required by the Rule. Any executive officer or employee of the Governing Body, or such other agent or representative of the Purchaser as shall be appropriate are hereby authorized and directed to provide such information as shall be required for such compliance. 7. All acts and doings of the officers or employees of the Purchaser or any other agent or representative of the Purchaser which are in conformity with Ithe purposes and intent of this Resolution and in furtherance of the execution and delivery of and performance under the Supply Agreements and each Confirmation, shall be and the same hereby are in all respects, approved and confirmed. 8. If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this :Kesolution. 9. All other resolutions or orders, or parts thereof, in conflict with the provisions of this resolution, are, to the extent of such conflict, hereby repealed and this Resolution shall be in immediate effect from and after its adoption. Adopted and approved this 19`" day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None F. Accepting NCLM Green Challenge. Council Member Nash moved to adopt Resolution R- 2008-85: RESOLUTION ACCEPTING NCLM GREEN CHALLENGE R-2008-85 Regular City Council Meeting August 19, 2008 Page 80 WHEREAS, the City of Monroe wants to emphasize 1:he benefits of energy conservation and conservation of other natural resources; and WHEREAS, the City of Monroe wants to demonstrate that conservation practices can be utilized to the daily operations of municipal government; and WHEREAS, the City of Monroe seeks to find methods of and operations that conserve energy and resources, thus saving taxpayer dollars and protecting anal preserving the environment; and WHEREAS, sound conservation practices can reduce government costs over the long-term; and WHEREAS, this government would lead by example to show the practicality and effectiveness of conservation practices; and ~~_ WHEREAS, the City of Monroe seeks to encourage its citizens and its businesses to be stewards of the environment. NOW THEREFORE, BE IT RESOLVED THAT the City of Monroe accepts the NCLM Green Challenge and pledges to work toward achieving the various levels of the challenge, indicating measures accomplished to save energy and other natural resources over the next three years. Adopted this 19th day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 6. Ordinances. A. Amending Code of Ordinances -Chanter 76: Parking Schedules - Schedule I - Parking Prohibited at All Times. Engineering Director Loyd advised that the Monroe Police Community Intervention Team has received a number of complaints involving on-street parking ~-, along Everette Street from Charles Street to Maurice Street. To assist in keeping Everette Street t open to through traffic, the Police Department has requested posting Everette Street as "No Parking" along both sides from Charles Street to Maurice Street. Staff recommended that Council adopt an Ordinance amending the City Parking Schedules to prohibit parking along both sides of Everette Street from Charles Street to Maurice Street. Council Member Nash moved to adopt Ordinance 0-2008-33: ORDINANCE TO AMEND TITLE VII, CHAPTER 76: PARKING SCHEDULES OF THE CITY OF MONROE CODE OF ORDINANCES 0-2008-33 BE IT ORDAINED by the City of Monroe Council that Title VII: Traffic Code, Chapter 76 - Parking Schedules, of the City of Monroe Code of Ordinances be amended to add as follows: Regular City Council Meeting August 19, 2008 Page 81 t ~ SCHEDULE I. Parking Prohibited at All Times STREET __ - - SIDE FROM - TO Everette Street Both Charles Street Maurice Street Adopted this 19`h day of August, 2008. ~~ Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B._ _Amendin~ Code of Ordinances -Chanter 75: Traffic Schedules -Schedule I(Bl -Sneed Limits. Engineering Director Loyd advised by memorar>dum that staff had received a request for traffic calming on Skywatch Lane and Sinclair Drive. All streets within the corporate limits are 35 mph unless otherwise posted. To proceed with the traffic calming request, the streets must be posted at 25 mph for six months. Staff recommended that Council adopt an Ordinance reducing the speed limit on Skywatch Lane and Sinclair Derive from 35 mph to 25 mph. Council Member Nash moved to adopt Ordinance 0-2008.34: ORDINANCE TO AMEND TITLE VII, CHAPTER 75: TRAFFIC SCHEDULES OF THE CITY OF MONROE CODE CIF ORDINANCES 0-2008-34 BE IT ORDAINED by the City of Monroe Council that Title VII: Traffic Code, Chapter 75 - Traffic Schedules, of the City of Monroe Code of Ordinances be amended as follows: Schedule I. (B) Speed Limits -City Maintained Streets ADD: STREET NAME DESCRIPTION SPEED LIMTI' Sinclair Drive Entire Len th 25 MPH Skywatch Lane Entire Length 25 MPH Adopted this 19t1i day of August, 2008. ~~ Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 7. Bud;;et Amendments. Regulaz City Council Meeting August 19, 2008 Page 82 s A. Transferring Workers' Compensation Self Insurance Fund Budget. Finance and Administration Director Fatland advised by memorandurrl that during the FY 2008-2009 budget process, Council established a separate self insurance fund to account for workers' compensation. Funding for workers' compensation consultant expenses were budgeted in the General Fund. Staff recommended that Council adopt a Budget Amendment transferring funds budgeted in the General Fund to the Workers' Compensation Self Insurance Fund. Council Member Nash moved to adopt Budget Amendment BA-2008-28: BUDGET AMENDMENT BA-2008-28 (~ 1. Transfer funds budgeted in the General Fund to the new Self Insurance Fund. General Fund: General Government: Transfer to SIF Workers' Compensation ($20,307) Expenditures: Consultant Expenses ($20,307) SIF Workers' Compensation 1 Other Financing Sources: Transfer from General Fund $20,307 Expenditures: Consultant Expenses $20,307 Adopted this 19`h day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Funding for the Purchase of Property Located at 329 East Franklin Street. Finance and Administration Director Fatland advised by memorandum that Council previously adopted Resolution R-2008-36 authorizing condemnation to acquilre property located at 329 East Franklin Street for street improvements. Staff recommended that Council adopt a Budget Amendment appropriating $157,110 to provide funding for the purchase of property located at 329 East Franklin Street. ~ti Council Member Nash moved to adopt Budget Amendment BA-2008-29: Regular City Council Meeting August 19, 2008 Page 83 BUDGET AMENDMENT BA-2008-29 ~1 1. Appropriate funds for the purchase of property at 329 East Franklin Street for street improvements. General Fund: Revenue Appropriation of Fund Balance $157,110 Expenditures: Transportation Division -Land $157,110 Adopted this 19`h day of August, 2008. Council Member Keziah seconded 'the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 8. Budget Ordinance for Aeropointe Industrial Park Phase I - Aeropointe Parkway. Engineering Director Loyd advised by memorandum that Council approved the award of the roadway construction improvements for Aeropointe Industrial Park on August 21, 2007 to Dellinger, Inc. in the amount of $1,254,368.76 to build Aeropointe Parkway and to provide water/sewer service to the ATI Allvac development. Approval was also provided in the amount of $30,000 for the City's consultant, Kimley Horne & Associates, to prepare design drawings to provide a left turn lane along Rocky River Road and to relocate a 16-inch asbestos water main owned by Union County. Mr. Loyd advised that the improvements are required for the connection of Aeropointe Parkway to Rocky River Road. Council accepted a grant from t]Ze North Carolina Department of Transportation (NCDOT) for construction costs of the project not to exceed $400,000, less the cost of any force account work performed by State forces on the project. The sum of $75,000 was set aside for the grading and base construction for the required turn lane improvements on Rocky River Road. Mr. Loyd advised that the project was complete with the exception of the turn lane improvements, planting of bushes around the best management ponds, water proofing several catch basin structures, and sidewalk along Rocky River Road. The DOT is now proposing to complete the base construction and grading with contract i'orces in lieu of State forces. To expedite completion and facilitate coordination of the base construction with the overlay of the widening, Staff proposes to complete the turn lane improvements as part of the City's summer resurfacing contract. Staff recommended that Council adopt a Budget Ordinance Amendment increasing the project to recognize the receipt of $75,000 from the NCDOT for funds previously set aside for work proposed for State forces. Regular City Council Meeting August 19, 2008 Page 84 Council Member Nash moved to adopt Budget Ordinance BO-2008-14: (~ CAPITAL PROJECT BUDGET ORDINANCE AMENDMENT AEROPOINTE INDUSTRIAL PARK PHASE I - AEROPOINTE PARKWAY BO-2008-14 WHEREAS, the City Council approved BA-2007-27 on May 15, 2007 to appropriate $500,000 from the General Fund to a Capital Projects Fund for the purpose of building the first phase of Aeropointe Parkway; and, WHEREAS, the City Council approved BO-2007-15 cm August 21, 2007 to appropriate an additional $155,430 from the General Fund Balance to complete the improvements and to accept a grant from the North Carolina Department of Transportation for construction costs of the project in an amount not to exceed $400,000.00, less the cost of any force account work estimated at $75,000 to be performed by State forces on the project (i.e., grading and base construction for the turn lane on Rocky River Road); and, WHEREAS, the City Council approved BO-2008-02 on January 8, 2008 to appropriate additional funds in the amount of $120,000 for the 16-inclh a:>bestos water main relocation along Rocky River Road required by the NC Department of Transportation as part of this project; and WHEREAS, Phase I roadway improvements are complete with the exception of the turn lane improvements along Rocky River Road and since the NC DE;partment of Transportation is proposing to use Contract forces for the work, Staff intends to expedite completion and facilitate coordination of the base construction with the overlay of the widening as park of the City's Summer Resurfacing Contract; and WHEREAS, the City Council desires to amend the Capital Project Budget Ordinance for Aeropointe Industrial Park Phase I, to recognize the receipt of $75,000 from the NC Department of Transportation for funds previously set aside for work to be performed by State forces. NOW, THEREFORE, BE IT ORDAINED that the City Council hereby amends the Aeropointe Industrial Park Phase I Capital Project Fund and appropriates the following revenues and expenditures: REVENUES DESCRIPTION AMOUNT AS AMENDED _ Transfer from General Fund $ 775,430 Restricted Intergovernmental $ 400,000 EXPENDITURES DESCRIPTION _ AMOUNT Aero ointe Industrial Park Phase I Pro'ect $ 1,175,430 Adopted this 19th day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan., Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Regular City Council Meeting August l9, 2008 Page 85 Item No. 9. Call for Public Hearings to be held September 2, 2008. A. Zoning Mau Amendment Request by Michael and Sandra Shackelford for the Property Located at 1815 Morgan -Mill Road- from GI (General l:ndustrial) to Conditional District "S & S Maintenance." Council Member Nash moved to call for a public hearing to be held on September 2, 2008 at 6:30 p.m. to consider this request. Couuncil Member Keziah seconded the motion, which passed unanimously with the following votc;s: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Zoning Text Amendment Reauest to Amend the Unified Development Ordinance to Add a Public Safety Protection Overlay District and Su~plementary Regulations. Council Member Nash moved to call for a public hearing to be held on September 2, 2008 at 6:30 p.m. to consider this request. Council Member Keziah seconded t:he motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 10. Auproval of an Agreement between the City of Monroe and North Carolina Municipal Power Agency Number 1 for Renewable Energy Development. Energy Services Director Mitchell advised by memorandum that in 2007, the North Carolina General Assembly adopted SB3, "Renewable Energy and Energy Portfolio St,and.ards (REPS) Bill". He advised that this was a complex bill which required Monroe and all otlher electric providers to have a certain percentage of renewable energy as part of their energy supply beginning in 2012. The bill also established criteria for annual reporting of future plans and compliance which must be provided to the North Carolina Utilities Commission by September of each year. Mr. Mitchell advised that since much of the compliance with SB3 dealt with renewable energy supply, North Carolina Municipal Power Agency Number 1 has begun working towards ensuring that the power supply arrangements for NCMPAI participants have the required percentages of renewable energy, and NCMPAI has agreed to complete the annual reports for all participants. Staff recommended that Council approve and direct the 1\/Iayor to execute the "Agreement between North Carolina Municipal Power Agency Numlber 1 and City of Monroe Regarding Renewable Energy Development." Council Member Nash moved to approve the "Agreement between North Carolina Municipal Power Agency Number 1 and City of Monroe Regarding Renewable Energy Development" and direct the Mayor to execute the Agreement on behalf of the City of Monroe. Council Member Keziah seconded the motion, which passed unanimously with the following votes: Regular City Council Meeting August 19, 2008 Page 86 ~~ AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, amd Mayor Kilgore NAYS: None Said Renewable Energy Development and Service Agreement is hereby incorporated as a part of these Minutes as "Exhibit A." Item No. 11. Award of Bid for Pipe for Transmission Line Proiect. Energy Services Director Mitchell advised by memorandum that the City hired Heath and Associates, Inc. to solicit bids for the pipe for the 12 inch, 43 mile transmission line project. Bids were received on August 6 and after careful evaluation of the bids, it was de;em~ed in the best interest of the City to award a purchase order to Western Pipe Coaters and Engineers, Inc of Orem, Utah for a total of $9,125,000. Staff recommended that Council award this bid to purchase pipe from Western Pipe Coaters and Engineers, Inc of Orem, Utah for a total of $9;,125,000. Council Member Nash moved to award the bid to purchase pipe from Western Pipe Coaters and Engineers, Inc of Orem, Utah for a total of $9,125,000. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, a.nd Mayor Kilgore NAYS: None n collect the 2008-2009 tax levy as listed below: Item No. 12. Certification of 2008-2009 Tax Base a;nd Tax Charge. In accordance with N.C.G.S. 105.321(b), Tax Collector Jill Martin requested by memorandum authorization to T e Amoun~ Pro e Tax $14,96'8,5`i0.35 S ecial District Tax 42,5(11.71 Total Late Listings 25,709.47 Total Tax Lev $15,036,821.53 Council Member Nash moved to authorize the Mayor to e~;ecute the following authorization: TO THE TAX COLLECTOR OF THE CIT7t OF MONROE: You are hereby authorized, empowered, and commanded to collect the taxes set forth in the tax records filed in the City of Monroe Customer Service Division and in the tax receipts herewith delivered to you, in the amounts and from the taxpayers like;wise therein set forth. Such taxes are hereby declared to be a first lien upon all real property of lthe respective taxpayers in the City of Monroe and this order shall be a full and sufficient authority to direct, require, and enable you to levy on and sell any real or personal property of such taxpayers, for and on account thereof, in accordance with law. Witness my hand and official seal, this 19th day of August, 2008. /s/Bobby G. Kilgore Regular City Council Meeting August 19, 2008 Page 87 Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 13. Annual Settlement of Tax Collector for 2007. Tax Collector Martin advised by memorandum that N.C.G.S. 105-373(a) stated "the tax collector shall make full settlement with the governing body of the taxing unit for all taxes in hand for collection for the preceding fiscal year." She further advised that the settlement and action of the governing body shall be entered in full upon the Minutes of the governing body. Staff advised that the settlement showed a collection rate of 98.08% and recommended that Council approve the tax settlement as outlined below and the same be entered in full into the Minutes of t:he governing body. Annual Settlement of Tax Collector for 2007 Tax Value 2007 Tax Scroll $]3,370,707 $2,427,891,157 2007 Certifications $274,913 $49,984,245 2007 Discoveries $277,787_ $43,148,382 Total Taxes Billed $13,923,407 $2,521,023,784 Less 2007 Releases $(66,060) $(9,911,462) 2007 Adjustments $3,243_ 2007 Tax Levy \t $13,860,590 $2,511,112,322 Total Taxes Collected $ 13,593,565 Taxes to be Collected $267,025 Tota12007 Levy $13,860,590 Percent Collected 98.08% 2007 MSD Tax $33,389 $16,545,760 2007 MSD Certifications $2,896 2007 MSD Discoveries $128_ $61,745 Total Taxes Billed $36,413 Less MSD 2007 Releases $(112'.) $(43,060) 2007 MSD Adjustments $180_ 2007 MSD Tax Levy $36,481 $16,564,445 2007 MSD Collected $36,311 MSD Taxes to be Collected $170 Tota12007 MSD Levy _ $36,481 Percent collected 99.54% Taxes released for 2007 under $5.00 total amount is $911. Council Member Nash moved to approve the 2007 annual tax settlement. Council Member Keziah seconded the motion, which passed unanimously with the following votes: Regulaz City Council Meeting August 19, 2008 Page 88 AYES: Council Members Ashcraft, Jordan, Keziah, Nash, ~'\ Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 14. Amendment to Customer Service Policy (:ustomer Service Supervisor Dawn Whitesides advised by memorandum that the Customer Service Committee members have been discussing an option to waive deposits for military custorers. Staff suggested implementing a deposit waiver program for active military applicants and/or reservists currently serving in active duty. A copy of the active duty orders would be required lfor this initial deposit waiver and if the customer's credit history deteriorated, they would be billed a deposit on a future billing. Ms. Whitesides advised that this would be similar to the program approved by City Council as an incentive for Monroe teachers. The Customer Service Committee recommended that Council adopt a utility deposit waiver program for new military applicants and that the Customer Service Policy be amended to accommodate this waiver. Council Member Nash moved to adopt a utility deposit waiver program for new military applicants and amend the Customer Service Policy to accommodate this waiver. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 15. Charlotte-Monroe Executive Airport. :Economic Development and Aviation Director Chris Plate advised that the City of Monroe was developing a strategy for the Charlotte- Monroe Executive Airport that would maximize the taxable value of aircraft and generate the greatest amount of revenue for the airport. Hangar acquisition and new hangar development is part of this strategy. He advised that Southern Cross Ranch sent a request to the Economic Development and Aviation Director's attention requesting the reassignment of the lease to another private entity. Monroe's Airport Commission heard a motion to recommend this request; however, the motion failed due to lack of a second. Staff,felt that it is in the best interest of the City to purchase this hangar. The purchase price for the hangar is $552,000. The hangar sits on land that is owned by the City of Monroe. Staff recommended that Council approve the terms of the 1~ease Termination Agreement with Southern Cross Ranch for a total sum of $552,000 and adopt a Budget Amendment in the amount of $570,000, which includes a contingency for matters associated with the acquisition of the real property assets, currently held by Southern Cross Ranch. A. Termination A>ireement with Southern Cross Ranch. LLC. Council Member Nash moved to approve the Termination Agreement with Southern Cross Ranch, LLC: NORTH CAROLINA UNION COUNTY Regular City Council Meeting August 19, 2008 Page 89 THIS TERMINATION AGREEMENT entered into this the 19th day of August, 2008, by and between the City of Monroe, (hereafter "City) and Southern Cross Ranch, LLC (hereafter "Southern Cross"). WITNESSETH WHEREAS, the City entered into a Hangar Lease agreement with Storms Enterprises, Inc. on the 15th day of July, 1997; and WHEREAS, the term of said lease was for a period twenty years to expire on the 30th day of September, 2017; and WHEREAS, said lease was assigned to Southern Cross by Storms Enterprises, Inc. on 21St day of November, 2002 whereby Southern Cross assumed the remaining term then existing of said lease which said assignment was approved by the City; and WHEREAS, Southern Cross desires to terminate the lease immediately and agrees to sell and convey the improvements constructed on the leased property and the City desires to agree upon such termination and offers to acquire said improvements upon the terms set out herein. NOW, THEREFORE, in consideration of the mutual representations, covenants, benefits to be derived, and agreement contained herein, the City and Southern Cross agree as follows: Southern Cross is hereby released as a tenant under the existing lease agreement with the City and said lease is terminated and all obligations under said lease is terminated effective August 25, 2008. Southern Cross hereby surrenders its right of occupancy to the leased property as described in the lease agreement and subsequently assigned to Southern Cross and does hereby bargain, sell, and convey to the City the remainder of the remaining term of the lease agreement to the City along with all improvements and fixtures located thereon, specifically the e~:isting aircraft hanger constructed on the property by Storms Enterprises, Inc. The City agrees to pay to Southern Cross the sum of Five- Hundred Fifty-Two Thousand Dollars ($552,000.00) on or before five p.m. on the effective date recited above. Transfer shall be "as is" "where is" with no warranty of any kiind. IN WITNESS WHEREOF, the Parties have caused this Termination Agreement to be executed as due acts of its respective governing bodies. ~S Council Member Keziah seconded the motion, which passed unanimously with the following. votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Budget Amendment. Council Member Nash moved 'to adopt Budget Amendment BA-2008- 30: BUDGET AMENDMENT BA-2008-30 Regular City Council Meeting August 19, 2008 Page 90 1. Amendment necessary to appropriate funds from the General Fund to the Airport Fund for the purpose of purchasing the Southern Cross Hangar at Charlotte-Monroe Executive Airport. t General Fund: Revenues: Transfer from General Fund Balance $570,000 Transfer to Airport Fund ($570,000) Airport Fund: Revenues: Transfer from General Fund $570,000 Expenses: Airport Operations $570,000 Adopted this 19`"day of August, 2008. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None REGULAR AGENDA Item No. 16. Monroe Athletic League - Mr. Tim Mcl~ride. Mr. Tim McBride, President of the Monroe Athletic Booster Club, thanked Council for their past support of their programs. He stated that their midget football program was serving approximately 100 children and requested financial support from Council. He stated that with the m~one;y raised through "Pigs in the Park" last year, they were able to bring in a motivational speaker to encourage the athletes at Monroe High and Monroe Middle on how to be an "11" not only on the ball field but in the classroom and community. He advised that they were also teachin€; the children how to give back to the community. ~' Mr. McBride also extended a personal invitation to Mayor and Council to the dedication of the new stadium and athletic facility at Monroe High School on August 29. Item No. 17. Zoning Man Amendment Request by Albert Isaac for Proberty Located at 501 East Franklin Street from OT (Office Transitional) to Conditional District "Southgate/LKQ" (Fast Track Request). A. Public Ilearing. Mayor Kilgore opened the duly advertised public hearing. Senior Planner Doug Britt stated that this was a fast track zoning map amendment request by Albert Isaac for .71 . acres located at 501 East Franklin Street from OT (Office Transitional) to Conditional District "Southgate/LKQ" in order to allow low volurrle retail as an allowable use on the property. Adjacent properties are zoned OT (Office Transitional) and GB (General Business). Regulaz City Council Meeting August 19, 2008 Page 91 Mr. Britt advised that all landscaping requirements including streetscape buffers, parking lot landscaping and screening buffers will be provided in accord,~nce with the Unified Development ~1 Ordinance. Staff and Planning Board recommended approval of the request. Mr. Mark Wright with Walt Perry Realty stated that he vvas representing Mr. Albert Isaac. He stated that the tenant was LKQ and they were a $400 million publically traded organization in the automotive regional equipment manufacturing business currently located on Winchester Avenue. He stated that this new location would serve as a call center and 95% of their business would be handled by phone. There will be a small amount oil shipping from this location but the company also ships from other warehouses throughout the south. Mr. Wright advised that the southeast market would be handled from this location. He ;requested that Council approve the request. There being no other speakers, Mayor Kilgore closed the public hearing. B. Action -Zoning Map Amendment. Council Membe;r Ashcraft moved BE IT ORDANIED that this property be rezoned from OT (Office T'ran.sitional) to Conditional District "Southgate/LKQ." Council Member Nash seconded the motion, which unanimously passed with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None C. Action -Resolution of Land Develonment Plan Comnliance -Conditional District "Southgate/LK~". Council Member Ashcraft moved to adopt Resolution R-2008-84: RESOLUTION OF LAND DEVELOPMENT' PLAN COMPLIANCE CONDITIONAL DISTRICT "SOUTHGATE/LKQ" R-2008-84 WHEREAS, in accordance with the provisions of North Carolina General Statute 160A-383, the City Council does hereby find and determine that the adoption of the zoning map amendment for Conditional District "Southgate/LKQ" further described below property is consistent with the adopted Land Development Plan and that the approval of the zoning m.ap .amendment for following described property is reasonable and in the public interest due to its consistency with the Land Development Plan and, as a result, its furtherance of the goals and objectives of the Land Development Plan. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Monroe approves the zoning map amendment for the property referenced as 501 East Franklin Street further identified as parcel 09-231-060. Adopted this 19`h day of August, 2008. Council Member Nash seconded the motion, which unanimously passed with the following votes: Regulaz City Council Meeting August 19, 2008 Page 92 AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, a.nd Mayor Kilgore ~1 NAYS: None Item No. 18. Solid Waste Fuel Recovery Fee. Mr. Jimmie Jones, General Manager of Allied Waste Services, stated that Allied was requesting an increase in the fuel recovery fee. He advised that Allied was currently receiving a flat rate of 3.3°/a; however, in recent months, Allied along with others has experienced tremendous increases in the cost of diesel fuel, and the price was at a point that Allied needed to ask for relief with the increase. Mr. Jones stated that in the contract between Allied and the City, there was a section that allowed Allied to renegotiate an increase in the fee if the price of diesel fuel increased above $3 per gallon. He advised that when Allied signed the contact in October 2007, diesel fuel was approximately $2.80. He advised that immediately after A,llie;d signed the contract, the rate went up to $3 per gallon and in the subsequent months thereaflrer, it has escalated continuously. Mr. Jones advised that Allied was taking many measures within their organization to control the consumption of fuel. Mr. Jones stated that Allied was originally asking fora 5.4% increase; however, they were requesting that the City grant Allied a fuel increase based on the fluctuating price of the fuel. Council Member Ashcraft asked if Allied had discussed a cap on the monthly adjustments. Mr. Jones advised that Allied had not discussed a cap but they would consider the concept of a cap. He advised that with fuel being volatile and them having no control over the cost, they feel that $4.50 to $5 a gallon for fuel is expensive now. He felt that if Allied put a cap in place, they would want to be able to come back to Council and renegotiate if the cost of fuel escalated off in some absorbent manner. Council Member Ashcraft stated that the City currently absorbed this cost and he was looking at it from a concern that the City :had people on a fixed income that might not be able to handle some of the price fluctuations. Council Member Jordan stated that this was not an item that staff had just started working on. He stated that he had discussions with the City Manager prior to the adoption of the budget and the City Manager had provided a figure of approximately $60,000+ as to what the fuel recovery fee would be if the City went with the current contract with Allied Waste. Council Member Jordan stated that the City Manager further advised that if' that were the case, there were monies that would absorb this cost so that there would not need to be an adjustment of rates to the customers. Council Member Jordan stated that the City Manager had 1•equested that he bring this matter before the Environment and Water Resources Committee f'or discussion; however, he advised the City Manager that this was not something the Committee had the ability to do anything with at this level. Council Member Jordan stated that the City was udder contract with Allied Waste and anything that had to be done with regard to some type; of adjustment had to be a contract negotiation between City Council and Allied Waste. He stated that Allied had made their presentation and he was of the impression that there were monies that would take care of the contract obligations before the budget was adopted. However, the numbers that were being Regular City Council Meeting August 19, 2008 Page 93 presented now are not numbers that he was aware of and per]'naps the City should have looked at these numbers prior to adopting the budget. He stated that the City was in the same position as Allied because once the budget has been set, that is the amount of money the City has to operate on. Council Member Jordan stated that the City had the :money to cover the 3.3% but anything over that, the City was going to have to find the funding. City Manager Meadows stated that the Solid Waste Fund had been set up as an enterprise fund and was no longer part of the General Funds. Staff has discussed reviewing the performance of the Solid Waste Fund on a quarterly basis to see how the revenues are tracking against expenditures. He advised that if at any period in time it appeared that there was going to be a significant deficit in the funding for the year, there are a couple of options. One would be to look at rates; the other option, because the fund was broken from the General Fund this past year, there were several years prior to this year where the revenues from solid waste fees exceeded the expenditures so staff could ,go back to the General Fund .and. appropriate a portion of money to move to the Solid Waste Fund to balance it for that year. He stated that this was a short term answer. To address it long term, if fuel prices continue at this level, rates will eventually need to be reviewed. Council Member Smith stated that he was inclined to go with the monthly rate, but he also felt that was some validity to having a cap. He felt this needed to be decided prior to making a decision on what the rates are going to be. Council Member Jordan asked City Manager Meadows v~~hat his recommendation would be for amending the contract at this time. City Manager Meadows stated that of this point, Allied was not necessarily asking for an amendment to the contact. lie felt Allied was basically seeking to increase the fuel recovery rate. Council Member Jordan felt that this was an amendment. Mr. David Lawson, Operations Manager for Allied, advised that this would be an addendum to the contract and could be in the form of a letter of consent. City Manager Meadows stated that this would be Council's call. Council Member Jordan asked if the City was trying to agree to a specific number and, if so, what were the dollar consequences of that number. Council Member Ashcraft stated that he felt Allied and City staff should look at the percentages anti a cap and bring the matter back to Council r Ms. Linda Ashendorf from Allied Waste did not feel that this would require an addendum or an amendment to the contract. She stated that the current contract stated that if and when the fuel price reaches $3 that Allied had the right to come to Council and renegotiate the fuel recovery fee. City Attorney Sholar stated that once an agreement was reached then it had to be memorialized with some type of an addendum. Council Member Smith made a motion that staff renegotiate the contract with Allied Waste and bring back the recommendation to Council for approval. Council Member Ashcraft seconded the motion, which passed unanimously with the following votes: Regular City Council Meeting August 19, 2008 Page 94 AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 19. Recommendation of Appointments from Citiizens Appointment Committee. A. ABC Board. Council Member Nash moved to reappoint Steve Lowder to a full term on the ABC Board. Mr. Lowder's term will expire on October 1, 2011. Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None B. Board of Adiustment. Council Member Nash moved to reappoint Brownie Irving and George Miller to full terms on the Board of Adjustment. Their terms will expire on July 1, 2011. Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None C. Community Appearance Commission. Council Member Nash moved to reappoint DiAnn Harrison, Sue Ratliff (Chair), and Jan Stegall-Herr to full terms on the Community Appearance Commission. Their terms will expire on June 1, 2012. Council Member Smith seconded the motion, which passed unanimously with the following voters: AYES: Council Members Ashcraft, Jordan, Keziah, Nash,. Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None D. Fireman Relief Fund Board of Trustees. Council Member Nash moved to appoint Charles Sturgis to a full term on the Fireman Relief Fund Boarci o:F Trustees. Mr. Sturgis' term will expire on August 19, 2009. Council Member Smith secronded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None E. Monroe Housing Authority. Council Member P1as:h advised that Carolyn Wheeling Griffin's term expired June 3, 2008. She requested that Mayor Kilgore reappoint Ms. Griffin to Regular City Council Meeting August 19, 2008 Page 95 a full term on the Monroe Housing Authority. Mayor Kilgore appointed Mrs. Griffin to a full term on the Monroe Housing Authority: CERTIFICATE OF REAPPOINTMENT OF COMMISSIONER OF THE MONROE HOUSING AUTHORITY WHEREAS, the City Council of the City of Monroe, North Carolina, held a duly authorized regular meeting on the 19` day of August, 2008; and, WHEREAS, at said meeting it was noted that Carolyn ~'Vheeling Griffin's term expired June 3, 2008. NOW, THEREFORE, pursuant to the provisions of the "Housing Authorities Law" of the State of North Carolina, and by virtue of my office as Mayor, 1: hereby reappoint Carolyn Wheeling Griffin to serve as Commissioner of the Monroe Housing Authority for a term beginning June 3, 2008, and ending June 3, 2013. IN WITNESS WHEREOF, I have hereunto signed my name as Mayor of the City of Monroe, North Carolina, and caused the official corporate seal of said City of Monroe to be attached hereunto, this the 19`h day of August, 2008. /s/Bobby G. Kilgore, Mayor E. Planning Board. Council Member Nash moved to reappoint the following persons to the Planning Board: Russ Asti with a term expiration date of July 1, 2010; Vickie L. Brooks with a term expiration date of July 1, 2012; Margaret Desio with a tf;rm expiration date of July 1, 2010; Arnold Helms with a term expiration date of July 1, 2011; Eric Hill with a term expiration date of July 1, 2012; and, Mary Ann Rasberry with a term expiration date of July 1, 2011. Council Member Smith seconded the motion, which passed unanirrlously with the following votes: AYES:. Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None F. Public Safety Committee. Council Member Nash mowed to appoint Jerry Ammons to a full term on the Public Safety Committee. Mr. Ammons' term will expire on August 19, 2010. Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Ashcraft, Jordan, Keziah, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 20. Public Comment Period. A. Mr. Donald Polk. Mr. Donald Polk stated that in 1992, he and his wife purchased a duplex at the corner of West Hudson Street and Hayne Street. H.e advised that at that time, the duplex was inhabited by two families. He stated that he and his wife made the investment in order to Regular City Council Meeting August 19, 2008 Page 96 have some income for their retirement years. Mr. Polk stated that families have moved in and out of the duplex and sometimes there was only one family living there. He stated that they were ~1 careful to rent to only those who would help to maintain the integrity of the neighborhood. He stated that he and his wife are diligent in doing criminal lbackground checks, credit checks, and other checks on the past behavior of the prospective renters. Mr. Polk stated that several years ago; there was a period when the duplex was unoccupied and they were unable to find any suitable tenantsbecause of their past histories. During this time, Mr. Polk advised that they had several "For Rent" signs removed from this rental property without their knowledge. Mr. Polk stated that he eventually found two suitable tenants to rent the duplex; however, when he came to the City to have the utilities turned on, he was advised that he could only rent one of the units because of an ordinance regarding duplexes. He stated neither he nor his wife were aware of any Ordinance that stated that any rental duplex that had been vacant for six months or more could no longer be rented as a duplex, but must be rented as asingle-family unit. He stated that his duplex was not suitable for converting to asingle-family unit. Mr. Polk stated that he should not be expected to follow the: rules of an ordinance to which he had no knowledge. He felt this was unfair to him. He stated that he and his wife were having financial difficulties and are using their retirement money for mortgage payments, upkeep on the property, insurance, and taxes for the unit. Mr. Polk advised that one unit was being rented but this was not enough income to take care of the needs of the building. He requested that Council vote to allow him to rent his property in full. B. Mr. Harry Sherwood. Mr. Harry Sherwood stated that the new Hospice building had become more difficult and expensive than was anticipated. He stated that the City had been very generous to Hospice over the past years and requested that; Council continue their generosity and waives the utility connection fees for Hospice up through this date. C. Mr. Keith Merritt. Mr. Keith Merritt, representing; Boggs Properties, stated that Boggs Properties had entered into a letter of intent to purchase the hangar that is currently owned by Southern Cross Ranch at the Charlotte-Monroe Executive Airport. He advised that on or about July 29, Southern Cross sent a letter to the City informing the City of the sale and requesting that the City consent to the assignment of the ground lease between Southern and the City. Attorney Merritt advised that on July 31, the City replied that the City did not have any intention of approving any extension of the lease held by Southern Cross Ranch or accept a transfer or assignment of the interest on the property to another private owner. He advised that the letter went on to state that the City would like to purchase the hangar for the purpose of owning additional hangars at the airport. Attorney Merritt stated that this was a little confusing with respect to the fact that the City has never before refused to consent to the assignment of a lease at the airport. He stated that with this particular ground lease, the City previously consented to the assignment when it went from Storm Enterprises to Southern Cross. He advised that the City had also consented to the assignment of other ground leases at the airport. He reported that on July 22, 2002, the City Regular City Council Meeting August 19, 2008 Page 97 consented to the assignment of a lease from A&M Aviation to Aviation Drive X, LLC and in 2004 Aviation Drive X, LLC sold its interests to Cress Horne Investments. Attorney Merritt stated that he had not been able to locate a consent to that assignment; however, he assumed that there was one within the records of the City. Attorney Merritt stated that the City has never refused to consent to an assignment of a ground lease. He stated that what the lease actually said was that the City has the right to consent but that consent cannot be unreasonably withheld. Attorney Merritt stated that his clients believed that the City had unreasonably withheld its consent to the assignment of the ground lease from Southern to Boggs Properties. He advised that the reason this was believed was because of the reasonableness of this requirement that is contained within the lease and the stated fact is that the City is acquiring this property basically to increase revemue at the airport because the City believes it can make more money by leasing the hangar out to other parties. Attorney Merritt stated that the case law stated that the factors that could be applied with respect to reasonableness are the financial responsibility of the person who was going to be taking over the lease, the suitability to use for the particular property, the legality of the proposed use, the need for alteration of the premises, or nature of the occupancy. He advised that the case law stated that you could not deny consent on the basis of personal taste, convenience, or sensibility. He advised that it specifically said that the lessor's desire for a better bargain than the existing contract has nothing to do with the permissible purpose of the restraint on alienation to protect the lessor's interest in the preservation of the. property and the performance of the lease covenants. He advised that the clause was for the protection of the landlord in its ownership and operation of particular property, not for its general economic i~.nterest. Attorney Merritt stated that in other case law, "Other jurisdictions of which we axe aware that have addressed these similar questions have all concluded that a landlord may not for economic motives reasonable refuse consent to a sublease that fully protects the landlord's bargain under the prime lease. No reasonable basis exists for withholding consent where a landlord will receive every benefit of each provision of the prime lease."' He stated that in this particular situation, the assignment from Southern to Boggs would protect every interest that the City has in its current lease; however, what case law says you cannot do is say we can get a better deal if we refuse consent, and he felt this was what the City had done. He stated that the City staff report stated that "it is the opinion of staff that the termination of the Southern Cross Ranch lease and acquisition of the assets represent the highest source of potential future revenue for the airport." He stated that this was not a valid reason to refuse a~nsent. Attorney Merritt stated that there was a similar situation with an apartment building that was a corporate apartment that was being leased out. He stated that this had very similar provisions that said it could not be reasonably withheld to an assignment. He advised that the person occupying the property went to the corporation and said he; wanted to assign it to someone else to come in and live in the apartment. Attorney Merritt advised that the corporation came back and said they did not want that done because they wanted to use the apartment for themselves. He advised that the Court said that was not a valid reason to refuse to consent to an assignment of a ~''1 lease. He stated that this was the most analogous case that he had been able to find. He stated that this was what the City had done in this case. Attorney Merritt stated that they believed that Regular City Council Meeting August 19, 2008 Page 98 the assignment should be accepted by the City rather ~thall using $552,000 to purchase this hangar. He stated that the City was just arguing about finding funds to buy additional fuel yet ~1 the City is spending $552,000 to attempt to buy a hangar ~~vhen you have someone who is willing to lease it and pay money. Attorney Merritt stated that the other concern was that v~rhen federal funds are accepted for an airport, you agree to certain grant assurances. He advised that one grant assurance was that the City agreed to treat everyone at the airport in the same manner. He stated that it was their belief that what the City had done by this is that the City has selectively said it has approved all of the requests for assignment up to this point and time; however, the City is not going to allow this one. Attorney Merritt stated that if that was the precedent that Council wanted to set, it needed to be understood that every time in the future that somebody at the airport wants to transfer a lease, the Council set a precedent that you are going to have to buy that hangar to comply with ~ the FAA requirements because you have to treat everybody the same. He stated that they did not believe that the City had done so and they felt that the City would be in violation of the FAA grant assurances through the action taken by Council. This could put the City's federal funding in jeopardy with respect to a Part 16 complaint that could be lodged with the FAA. If the FAA agreed, they would come in and say change the project, chhange what you have done or they can refuse either further funding or pull funding that has already been provided. Attorney Merritt stated that they believe the action Council and the City should take is to approve the transfer of the assignment of the ground lease from Southern Cross to Boggs rather than to try and negotiate a different deal with Southern Crc-ss. Lastly, Attorney Merritt stated that with the issue regarding taxes on the personal property, the City taxes for 2007 have been paid. With respect to the County taxes, he advised that the 2008 taxes have already been paid. He advised that the 2008 City tax bill will not come out until September and when the bill comes out, it will be paid. Attorney Merritt stated that they did not agree with the action taken by Council on its Consent Agenda. and believe that this required more discussion than simply being placed on a Consent Agenda because it is not a simple issue and was one that was not non-controversial. There being no further business, the Regular City Council Meeting of August 19, 2008 adjourned at 8:20 p.m. Attest: J obby i ore, Mayor Regulaz City Council Meeting August 19, 2008 Page 99 i~.i r ;r. E- NORTH CAROLINA MUNICIPAL POWER AGENCY NUMBER 1 RENEWABLE ENERGY DEVELOPMENT AND SERVICE AGREEMENT Witness this Agreement, dated as of the 19thday of Attgust , 2008, by North Carolina Municipal Power Agency Number 1, a joint agency organized and existing under the provisions of Chapter 159B of the General Statutes of North Carolina ("Power Agency"), and the municipality of the State of North Carolina which has executed this Agreement (the Municipality"). WHEREAS, Power Agency, pursuant to that certain Supplemental Power Sales Agreement between Power Agency and the Municipality, dated as of the 151 day of May, 1978, provides All Requirements Bulk Power Supply (as that term is defined in the Supplemental Power Sales Agreement) to the Municipality; and WHEREAS, also pursuant to the Supplemental Power Sales Agreement, Power Agency, ~` for purposes of carrying out its rights and obligations under the Supplemental Power Sales Agreement, has been designated and appointed by the Municipality as the Municipality's sole agent to fullest legal extent that such agency may be established for such purposes; and WHEREAS, in 2007, the North Carolina General Assembly adopted legislation in the form of Senate Bill 3 (codified in N.C.G.S. as §62-133.8 et. seq., and referred to herein as the "Legislation") which, among other things, requires all "electric power suppliers" (as that term is defined in the Legislation) in the State of North Carolina, including, among others, municipalities that sell electric power to retail electric customers, to meet certain Renewable Energy and Energy Efficiency PortfoliooStandards ("REPS") set forth in the Legislation; and WHEREAS, Power Agency believes that the least cost method for all municipalities to whom Power Agency provides All Requirements Bulk Power Supply to comply with the REPS can be accomplished through a program developed and coordinated by Power Agency, together with the input and cooperation of all of such municipalities; and WHEREAS, the REPS require, among other things, that certain specified percentages of municipalities' retail sales of electric power be supplied, beginning in 2010, in accordance with the provisions of the Legislation, which provisions include, among others, that such electric power be supplied from renewable energy resources (including, but not limited to, wind, solar, animal waste, landfill gas and hydro), from the purchase of renewable energy .certificates, or from energy savings through demand-side management and energy efficiency measures; and Regular City Council Meeting August ] 9, 2008 Exhibit A Page 1 of 5 L 5' J y WHEREAS, the Legislation also sets forth certain maximum per-account annual charges that electric power suppliers are permitted to charge their respective retail customers for compliance with the REPS, and further provides that the electric power supplier shall be deemed to be in compliance with REPS if the aggregate of the maximum per-account annual amounts is expended by the electric power supplier in a given calendar year; and WHEREAS, Power Agency is willing to undertake the development, coordination and administration of a REPS compliance program on behalf of each of the municipalities in accordance with the terms and conditions set forth in this Agreement (the "REPS Compliance Program"). NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, and such other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, IT IS AGREED: 1. Power Aeency Undertakings. Power Agency shall: i) assist the Municipality in determining, developing, coordinating and administering a REPS Compliance Program for the Municipality; ii) obtain, to the extent deemed appropriate by the Board of Directors Power Agency, supply-side renewable resources, the output of which would be 11{ available for sale at wholesale to the Municipality as part of its All Requirements Bulk Power Supply; iii) coordinate, administer and, to the extent necessary, develop demand-side management and energy efficiency measures; iv) coordinate renewable resources and demand side management and energy efficiency measures owned, operated or undertaken by the Municipality with and into the REPS Compliance Program for the Municipality and for other municipalities entering into a Renewable Energy Development and Service Agreement, to the extent deemed feasible and appropriate by Power Agency; v) account for and document the Municipality's compliance with the REPS; vi) prepare and file annual Compliance Plans and Reports, on behalf of the Municipality, required to be filed with North Carolina Utilities Commission (the "NCUC") pursuant to the rules and regulations . promulgated by the NCUC pursuant to the Legislation; and vii) impose and collect a monthly fee, to the extent adopted by the Board of Directors, in the form of a billing rider (the "REPS Rider") to carry out its undertakings herein and the Municipality's obligations under the Legislation. Regular City Council Meeting August 19, 2008 Exhibit A Page 2 of 5 i.;4 ~~ ~ 1. ;' ~` 2. Municiuality's Undertakint?s. The Municipality shall: i) participate in all or a part of the REPS Compliance Program to comply with REPS; ii) permit Power Agency to coordinate, and assist Power Agency in its coordination of, renewable resources and demand side management and energy efficiency measures owned, operated or undertaken by the Municipality with and into the REPS Compliance Program for the Municipality and other municipalities entering into a Renewable Energy Development and Service Agreement; iii) permit Power Agency to allocate the Municipality's contract SEPA output in the manner deemed most efficient by Power Agency in connection with Power Agency's administration of the least cost REPS compliance on behalf of the Municipality and other municipalities entering into a Renewable Energy Development and Service Agreement; iv) timely pay to Power Agency the monthly REPS Rider adopted by the Board of Directors; v) report to the Power Agency the number of its residential, commercial and industrial retail electric customer accounts that the Municipality reported to the Energy Information Administration for the previous calendar year not later than April 30 of each year during the term of this Agreement; and vi) keep and maintain accurate records of, among other things, its annual retail sales of electric power (in MWhs), its number of residential, commercial and industrial electric customer accounts per year, and the savings (in MWhs) achieved by the Municipality as a result of its use of demand-side management and energy efficiency measures.; vii) account for and keep and maintain accurate records of all costs associated with the Municipalities efforts to comply with REPS, including, but not limited to, labor, materials, overhead, expenses and other miscellaneous costs; and viii) provide Power Agency with any and all information reasonably requested by Power Agency in connection with Power Agency's obligation to prepare and file the annual Compliance Plans and Reports. 3. Pov~ver A~ency is the Municipality's Agent. The Municipality hereby appoints the Power Agency as its agent, to the fullest extent permitted by law, to develop, coordinate and administer a REPS Compliance Plan and to take all acts, on behalf of the Municipality, as are necessary to develop and implement a REPS Compliance Plan that will enable the Municipality to meet the REPS. Regular City Council Meeting August 19, 2008 Exhibit A Page 3 of 5 =L~ ` ~ dJ 4. Modification and Uniformity of Agreements ~' This Agreement shall not be amended, modified or otherwise changed, or rescinded, except by agreement of the parties hereto. If any other Renewable Energy Development and Service Agreement is amended or replaced so that it contains terms and conditions different from those contained in the Agreement, Power Agency shall notify the Municipality and, upon timely request by the Municipality, shall amend this Agreement to include such similar terms and conditions. 5. Term. /'~ The term of this Agreement shall be coterminous with the term of the Supplemental - -~ Power Sales Agreement, and the rights of the Municipality and the Power Agency to terminate this Agreement shall be the same as the rights to terminate set forth in the Supplemental Power Sales Agreement. 6. Applicable Lawi Construction. This Agreement is made under and shall be governed by the law of the State of North Carolina. Headings herein are for convenience only and shall not influence the construction hereof. 7. Severahility. If any section, paragraph, clause or provisions of this Agreement shall be finally adjudicated by a court having jurisdiction over the parties hereto and the subject matter to be invalid, the remainder of this Agreement shall be unaffected by such adjudication and all of the remaining provisions of this Agreement shall remain in full force and effect as though such section, paragraph, clause or provision, or any part thereof so adjudicated to be invalid, had not been included herein. hz the event of any such invalidity, the parties hereto shall promptly negotiate in good faith valid and new provisions, if necessary, to restore the agreement to its original intent and effect. 8. Assignment of Agreement. This Agreement shall inure to the benefit of, and shall be binding upon, the respective successors and assigns of the parties to this Agreement; provided, however, that neither this Agreement nor any interest herein shall be assigned or transferred or sold by the Municipality without the written consent of Power Agency. 9. Entire Agreement. This Agreement shall constitute the entire understanding of the parties hereto. I superseding any and all previous undertakings, oral or written, pertaining to the subject ~" ~ matter contained herein. No party hereto has relied, or will rely, upon any oral or written Regular City Council Meeting August 19, 2008 Exhibit A Page 4 of 5 U' . ,j „/// f2 ' representations or oral or written information made or given to such party by any /~, representative of the other party or anyone on its behalf. t IN WITNESS WHEREOF, the parties hereto have executed this Renewable Energy Development and Service Agreement all by authority of their respective governing bodies duly given. ~. Executed the 19th day of August ~ 2008 ~~''~. ^~~ City (Town) of Monroe ^~~' ~- ~ /'~~` ,. s ATTEST.~~, bby G. K'1 ore, Mayor ~7ir 1.'v(rfy x o Gi v1.S Oyt ''. • ~ tty~(Tctwn) G~Ierk ~ j 1 r ~ . Executed the a~ day of ~it,.~, ~` r ATT~ `ELI W Assistant Secretary-Treasurer ~„ .'~~~ `,f`j~ t.~ y~ . f +•".10 ~. J ~ \~ ~~ J.. ti J ~ 7~~ ,I ~ ~,/•.'''~ ~ lam/ NORTH CAROLINA MUNICIPAL POWE NCY 1 By~ Regular City Council Meeting ROCKYMOUNT/437716v5 AUgUSt 19, 2008 ~ Exhibit A • Page 5 of 5