Special
Meeting
March 19, 2009
MINUTES
The
Staff Members
Present:
2. Agenda Adjustment: All Council members were present, so changes
to the agenda are permitted. The
Motion
By: Sack
Second
By: Dickson
Vote: Unanimous
Items
added to the Agenda as New Business: 4a. Resolution
09-06.1, amended to add a project to the Town’s federal economic stimulus projects;
4b. consideration of equipment bids received for the Town’s Public Education
Government Access television cable channel; and 4c. consideration of an
amendment to the
Items removed from the agenda: None
Other changes: None
The
purpose of the meeting was to continue agenda topics from the Feb. 28, 2009
winter retreat meeting and to focus discussion on remaining Town Council
retreat projects and issues as described in the summary below.
3a. Rural Area Development Policy - Ms. Sudano said that at the Council’s 2009
retreat on Feb. 28, Council agreed by consensus that extension of utilities
outside the town limits should be done so in accordance with established Town
policies, development standards and ordinances.
Following existing Town rules, the
Council gave direction in both the
The next item on the retreat meeting
agenda was titled “Rural Development Policy,” a topic that kind of goes
hand-in-hand – but is separate from – the issue of how the Town extends utility
lines. Time was not allocated for this
topic at the retreat, and it was presented in its entirety at this meeting.
Ms. Sudano said at the 2007 Town Council
Retreat, the idea of creating a “rural development” option was first presented
and approved by the Town Council as a part of the drafting of the Comprehensive
Plan. In November 2007, Vision
Ms. Sudano said due to the current
economic situation, staff expects there may be a stronger interest in
development in the town’s “rural” areas; therefore, staff feels it is
imperative that regulations be finalize in the near future.
She said it is likely that the final
form of these development regulations will be in the form of both a new policy
statement and various Unified Development Ordinance amendments to reference the
policy statement. Since UDO amendments
are associated with this, the final policy statement and UDO amendments would
be presented to the Town Council for consideration in April or May due to the
required public hearing notification requirements for UDO amendments.
According to the Future Land Use
Plan in Vision Holly Springs, the
lands designated as Low-Density Residential should be developed in a manner so
as to “promote the conservation of desirable characteristics of the land,
preserve agriculture land, and protect rural areas from the encroachment of
scattered urban-type uses that may inhibit the overall development of the
community.” The Plan also states that
development south of
Furthermore, the Comprehensive Plan
states that in the Low-Density Residential designation that “Development in
this area may or may not be required to connect to Town utilities. For developments that have an average lot
size of one acre may only be required to connect to Town water and may be
allowed to utilize a septic system.”
Note:
The lands associated with this policy are not currently located within the
Town’s Planning Jurisdiction (Town Limits or ETJ); therefore, any development
in this area would require voluntary annexation into the Town’s corporate
limits.
The proposed Rural Development
Policy would allow for single-family residential developments that meet the
following criteria:
- Project
is located in the identified area;
- Lots
have an average lot size of 1 acre or greater;
These developments would be
permitted to develop with the following exceptions to the Town’s standard
development criteria:
- Project
will be permitted to connect to Town water without connecting to Town
sewer (project may connect to Town sewer as well, however it would not be required;) note that, as usual, all public utility
extensions to serve project are by the developer at the developer’s
expense;
- Sewer
may be supplied by septic systems and shall be permitted by
- Preliminary
designs for sewer layouts shall be developed and sewer easements dedicated
in case sewer is needed in the future;
- Because
of the average lot frontage, streets are not required to have curb and
gutter, however provision of a public sidewalk or greenway is
required; note that this may increase right of way widths for streets
depending on how they are designed.
Action: The Council approved a motion to direct staff
to finalize the UDO and Engineering Design and Construction Standards
amendments, to develop a Large Lot/Rural Development Policy and Town Code
Amendments regarding Rural Development Options and to bring the documents before
the Planning Board and Town Council for official action.
Motion
By: Sack
Second
By: DeBenedetto
Vote: Unanimous
3b. Western Wake Water Reclamation Facility
Partnership Project – Ms. Sudano updated
the Council on the status of the Western Wake Regional Reclamation Facility,
including specifics about the Town’s participation.
She provided the Council with the
latest schedule of permitting and design activities for the regional project
and reminded member that the Town’s participation in the project is limited to
sharing in the cost of the effluent pump station and force main that will pump
treated effluent to the Cape Fear River from both the Western Wake Regional
Reclamation Facility and the Utley Creek (or Holly Springs) Wastewater
Treatment Plant facility.
Following are upcoming highlights of
the project:
- The
project Environmental Impact Statement (EIS) is going out for public
hearing this month;
- The
project Preliminary Engineering Report (
- There
will be two open house and one Public Hearing meeting on the project
during the next month at
- After
the EIS is approved, a Record of Decision (ROD) will be issued by the
State for this document;
- Construction
of the regional partners’ effluent pump station and force main to the
- After
the ROD is issued by the State, both the other regional partners and
Ongoing at the same time as these
critical steps are two important issues on which the Council was previously
briefed:
- Continued
investigation of Harris Lake as an alternative for discharge of treated
effluent from both the regional plant and the Holly Springs’ plant; I have include a recent partner summary
of the status of this regional partnership effort for your information;
- As
you are aware there may be additional Utley Creek modeling that will need
to be done in order to support our efforts to keep the Utley plant
discharge at its current location;
these efforts are being discussed at present in concert with the
partnership efforts; expect to see
more information on this in the near future;
- The
Town Manager is still waiting to hear from the Cary Town Manager to work
out the SRF funding share discrepancy that recently came to light; there
has been no further information on this matter.
Action: No action.
3c. Holly Springs Fire Station No. 3 – Mr. Dean said over
the last several months the Town has been working with Progress Energy to
assist in locating a permanent site for Fire Station No. 3. Staff, he said, has identified two (2) sites it
feels are both viable and would meet the Town’s
Mr. Dean said staff is hoping for a
long-term lease agreement with Progress Energy on one of these sites, which
would substantially reduce the cost of the project.
Also, the new federal stimulus
package includes $500,000,000 in Homeland Security funding for fire department
funding. With this site’s being located
between two (2) high-level potential homeland security targets, staff feels the
Town should have a very high probability that it would qualify for funding.
Should the Town qualify for funding,
Mr. Dean said, the Town would need to be in a position to build within 120
days.
Mr. Dean asked the Council to keep in mind
that the Town had projected construction of a new station in 2011; therefore, the
Town still is on schedule to construct the station.
Action: No action.
3d. Affordable Housing – Mr. Dean said that over the
past six months he had been working with the developers at Wood Creek to locate
an affordable housing project on approximately seven (7) acres at the end of
Heritage Meadows Lane. The property
would be separated from the main development by the I-540 right of way. The
developers have offered the Town this property, and it is Mr. Dean’s idea to
utilize Habitat for Humanity to construct affordable housing on this property.
He said utilities are very close to the property, and it would help address a
need in the community. He added that staff
would envision a partnership between SAS, Habitat and the Town, which he
believes would be a positive partnership for
Mr.
Dean said he thinks this would be beneficial for the community, and he would
like the Council’s concurrence to move forward with this project.
There was much discussion.
Consensus: The Council consensus was that staff should pursue
this option as an opportunity to provide workforce housing on this property.
3e.
The project costs originally were
estimated at $3.3 million for renovation and $4.3 million for total
reconstruction. With that information
last fall, Council opted for the slightly more expensive $4.3 million cost of a
complete replacement of the facility as the smartest investment of money.
More precise estimates were provided
later by architectural drawings. Kling
Stubbins estimates costs at approximately $6.5 million for the one-story design
version and approximately $7.5 for a two-story version featuring an indoor
elevated walking track and extra upstairs square footage.
It appeared that the over-riding
sentiment of Council members during the retreat afternoon was, “Both are nice
plans, but how are we going to pay for either of them?” Another question was, “What can we get for
the $3 million to $4 million we originally expected the project to cost?” A major point in the conversations also was
the large number of variances and waivers that might be needed for the project.
During the retreat meeting, the
Council also discussed whether to fund the project with a bond referendum or
installment financing. After discussion
about how bonds might be difficult to sell as other governmental units are
learning in a down economy with reluctant investors and about how interest
rates at banks would likely reach historic lows, Council members agreed installment
financing offers the better option for the Town.
A large expense, designers said,
will be the amount of site work that will be needed. An alternative to expensive site work, the
option of purchasing level, neighboring property, was proposed by
Councilman VanFossen said he could
identify some cost-saving measures in the design of the plan.
The consensus of the Council at the
retreat was for management to gather information about financing options and
for the Council to discuss the project further on March 19.
Mr. Dean addressed details about
potential financing of the project.
He gave a brief description of the
long history of the project thus far, noting that Council had considered a
number of options and had decided that the best investment of money for the
Town was to replace the old building with a new one built behind the existing
one on the site owned by the town.
Mr. Dean highlighted the design that
has been produced for the site, showing the two-story new building with offices,
classrooms and program rooms, a fitness area, locker rooms, aerobics and a game
room on the first floor and an elevated one-twelfth mile walking track on the
second floor.
Mr. Dean reminded the Council that
it had directed at the Feb. 28 meeting that staff pursue the two-story design
and to report to the Council on financing options on March 19. The cost is estimated at $7.5 million.
Mr. Dean reported that two banks
provided him and the finance officer with some ideas of the financing
costs. As an example,
Mr. Dean said that financing a $4
million renovation project – as was originally projected for the cost to
replace the building – would have had no impact on the budget because it would
remain the same as previous debt comes off the books and is replaced with the new.
But because final design figures are now
available and extensive site work is added to the equation, the new debt load
of $7.5 million means the Town would have an additional loan burden of
approximately $209,000 the first year in 2010-11; subsequent years would have
no impact to the budget because more existing debt would come off and would be
replaced.
“We can cover the debt beginning in
Year 2,” Mr. Dean explained.
Later this summer, when the Town is
set to begin actual financing, the rates may be higher or lower, Mr. Dean
pointed out. He also said the Town could
look also at a 25-year interest rate as long as there is no pre-payment
penalty.
Mr. Holland addressed the Council to
further clarify the impact a loan for the project would have on the Town’s
budget, beginning in Fiscal Year 2010-11 when the first annual payment would
come due.
He said the Town would have in Year 1, a debt
service payment on a number of loans of about $601,000; in the same year, the
Town will have been relieved of about $391,000 in debt service, leaving a net
result impact to the budget of $209,000 that would have to be identified. In Year 2, Mr. Holland said, additional debt
comes off, and the Town would actually be in the plus column. “So, really there is only one year that we
would have to make up that difference,” he said, adding that a 25-year loan
program would provide even more cash flow.
Councilman Sack asked how doable was
identifying an additional $209,000 in the budget.
Mr. Holland said that the total budget will
be about $21 million, so percentage-wise $209,000 would not be a huge amount.
Councilman DeBenedetto asked how this project
would impact the Town’s reserve funds; he said he wanted to wait until the FY
2009-10 budget proposal was completed so that he could see a laundry list of
projects and how they would be funded; he asked what the rush was to begin the
project and why was staff telling the Council about how much financing would
cost.
Mr. Holland addressed Councilman
DeBenedetto’s questions, explaining that staff was doing as was directed by the
Town Council by unanimous vote on Feb. 28 and that was to explore financing
options for the project and to report to the Council on March 19. He also noted that the upcoming budget would
have no impact from the project because the first debt payment would not be
until the FY 2010-11 budget.
Councilman VanFossen explained that
now would be the cheaper time to build and save money because of the favorable
bidding climate.
Councilman Sack pointed out that the
Community Center was discussed at length at the Council’s Feb. 28 retreat and
that was when the Council considered all projects in the Capital Improvements
Plan and prioritized the top five General Fund and Utility Fund projects and
instructed staff to come back on March 19 with what the Town can afford. He stressed that the decision to pursue the
community center was not rushed.
Councilman Dickson agreed. He said the Council is finally talking
financing options only after eight years of discussions and focus groups. He pointed out that he felt the Town was
actually late in the process.
Councilman DeBenedetto maintained
that he would want to see the project in relationship with the FY 2009-2010 budget
and how reserves would be affected.
Mr. Holland repeated that this
project would not impact the 2009-2010 budget because the first operating
budget that would contain a debt payment for the project would be the one
presented in May 2010 for the FY 2010-2011 fiscal year. He also stressed that reserves are not
affected by this project.
Mr. Dean summarized for the Council a
number of points. He said, firstly, no
debt is paid from reserves. Debt is the
first obligation included in the budget from general revenues and all other
spending is secondary.
He also reported that financial
institutions are saying that bids are coming in for projects are at 10- to 15-percent
lower than estimates because of the sagging economy. If that is the case, the Town may be able to
save between $750,000 and $1 million on the project and may not even have to
worry about the Year 1 debt payment.
Lastly, Mr. Dean reminded the
Council that staff and the Council have spent considerable time prioritizing
capital improvement projects and that direction was given on Feb. 28 to pursue
this project as a top priority for citizens.
Action: The Council approved a motion to move forward
with the community center project and to have the architects and engineers
prepare construction documents for formal bidding.
Motion
By: VanFossen
Mr. Dean explained that staff had discussed
the possibilities of doing a formal special election, informational meetings
and an informal non-binding referendum. If
the Council directs to move forward with the project, the Town would need to do
whatever it can over the course of the project to make sure people knew about
it.
Councilman Sack said he thinks a new
community center is a No. 1 priority for the community, based on his contacts
with citizens. He said he constantly
hears about the condition of the current facility and is questioned when it
will be improved. He said he also is
concerned about the employees who have to work in what he described as deplorable
conditions.
He said everyone would probably prefer to do
the larger, grander downtown community center plan with a bond referendum that
originally had been proposed in better economic times; however, with the economy
as it is, this project at this price would serve the Town with a first-class
facility for the time being and for a number of years in the future.
Council asked and Mr. Bradley responded that approximately
10,000 visits a month are recorded at the center, indicating that there is very
large percentage of the Town’s population who would benefit from the project.
Second
By: Dickson
Mr. Dean asked if the motion
included any stipulations about purchasing additional property. The Council came to a consensus that Mr.
Councilman DeBenedetto asked for
clarification that the motion was simply to direct that documents be prepared
for bidding and that costs would be presented later.
Mr. Dean outlined the process for
the Council. He said the first step is
to bid the project for construction; after bids are received and the Town knows
the actual cost, then the Town will approach financial institutions for bids on
financing the project. All the financing
information will be brought to the Council for public hearing and action.
After that, Mr. Holland, said, the
financing and the project will have to be taken to the Local Government
Commission for review, adding another 30 to 60 days to the process.
Council members asked how long would
it be before bidding is conducted. Mr.
Joe Wynn of Kling Stubbins estimated that construction documents and
preliminary permitting could be completed by early summer and that bidding
could be in by late summer.
Council DeBenedetto asked about the
project’s going to bond referendum. He
said he understood the $27,000 cost of a special election but he asked if the
bond referendum were held in November during the municipal election, would there
be no cost.
Ms. J. Powell explained that there
would be a slight reduction in the cost down to $23,000 because the Town pays
for the municipal election, too, but is able to share the cost with other
municipalities.
Council members assured him that
there was consensus that the Town would explore those possibilities, but that
it should be a separate project and not tied to construction of this building.
Vote: Unanimous
Note: There was a Council consensus
to direct Mr. Lee to find out how much it would cost the Town to purchase
property adjoining the community center site.
4a. Economic Stimulus Project – Mr. Dean asked the
Council to adopt Resolution 09-06.1, an amended version of Resolution 09-06, to
add a project to the Town’s list of economic stimulus projects.
Action: The Council approved a motion to adopt
Resolution 09.06.01 an amendment to Resolution 09-06, adding a project to the Town’s
list of economic stimulus projects.
Motion
By: Dickson
Second
By: Womble
Vote: Unanimous
A copy of Resolution
09-06.01 is incorporated into these minutes as an addendum page.
4b.
Action: The Council approved a motion to approve to
enter a contract with The Whitlock to purchase equipment for the
Motion
By: Sack
Second
By: Womble
Vote: Unanimous
4c.
Action: The Council approved a motion to amend a
professional service agreement for the Holly Springs Business Park Pump Station
project.
Motion
By: Sack
Second
By: Dickson
Vote: Unanimous
A copy of the amended
professional services agreement is incorporated into these minutes as addendum
pages.
5. Adjournment:
There
being no further business for the evening, the
Respectfully
Submitted on
_________________________________
Addendum pages as
referenced in these minutes follow and are a part of the official record.