Holly Springs Town Council
Regular Meeting
March
1, 2011
MINUTES
The Holly
Springs Town Council met in regular session on Tuesday, March 1, 2011 in the
Council Chambers of Holly Springs Town Hall, 128 S. Main Street. Mayor Pro Tem Tim Sack presided, calling the
meeting to order at 7 p.m. A quorum was
established as the mayor and four council members were present as the meeting
opened.
Council
Members Present: Mayor Sears and Councilmen Tim Sack, Jimmy
Cobb, Councilman Chet VanFossen (arrived 7:02 p.m.) and Parrish Womble and
Councilwoman Linda Hunt Williams
Council
Members Absent: None.
Staff
Members Present:
Chuck Simmons, assistant town manager; John Schifano, town attorney; Joni
Powell, town clerk (recording the minutes); Linda Harper, deputy town clerk; Len
Bradley, director of parks and recreation; Jeff Wilson, information technology
director; Mark Andrews, public information officer; Stephanie Sudano, director
of engineering; and Drew Holland, finance director.
2 and 3.
The Pledge of Allegiance was recited, and the meeting opened with an
invocation by Pastor Doug Parlin, pastor of South Wake Baptist Church.
4. Agenda Adjustment:
The March. 1, 2011 meeting agenda was adopted with changes, if any, as
listed below.
Motion By:
Sack
Second By: Cobb
Vote: Unanimous
Items added to Agenda: None.
Items
removed from Consent Agenda: None.
Items
removed from the agenda: None.
Other
changes: None.
5. Public Comment:
At this time, an opportunity was provided for members of the audience
who had registered to speak to address the Council on any variety of topics not
listed on the night’s agenda. The
following input was recorded: None.
6a. Holly
Springs Food Cupboard – Mr.
Bruce Meyer addressed the Council with an overview of the Holly Springs Food
Cupboard and ways in which the community could help the agency get established.
Mr. Meyer gave the Council
information as to how the food cupboard came about, how it operates, the impact
it has on the community and where organizers envision the service to be in the
next one to three years.
The Holly Springs Food Cupboard is
run entirely by volunteers who dedicate their time to the collection and
distribution of food. Mr. Meyer, who
serves the organization as real estate chairman, said the group’s most pressing
need is a location in which to set up a base of operations. Currently, volunteers gather food collected at
a number of locations, then they drive it up to the Western Wake Crisis
Ministry in Apex where it is stored.
When it is time to distribute in Holly Springs, volunteers drive up to
Apex to bring home a load of food where it is distributed from outdoor tables
in the parking lot of the Methodist Church.
After manning the tables all day,
volunteers then must pack up any remaining food and drive it back to Apex to be
restored.
He said a local base of operations
would give the volunteers the ability to help more people more efficiently with
more variety of food.
The Cupboard seeks 2,000 square feet
with six to 10 parking spaces in a good location. Volunteers are ready, willing and able to
remodel and renovate any building space that might be provided by the community
or a local business.
The Holly Springs Food Cupboard is
in the process of getting its non-profit tax-deductible status so any
contribution of building space would soon be tax-deductible.
Mr.
Meyer asked the Council to provide encouragement and ideas as to how the Food
Cupboard could further establish itself.
6b. Parks and Recreation Advisory Committee
Report - Mr. Peter
Koutroumpis of the Parks and Recreation Advisory Committee addressed the
Council to provide the board’s annual communication to the Town Council. This presentation covered department needs,
population growth demands on the department and how the advisory committee
proposes to help in these matters.
Council members spoke in
support of the Parks and Recreation committee and department staff, and they
encouraged the committee members to keep up their good work and dedication to
the community. They agreed there are
growing needs, and there is a need for more funds in order to meet those needs.
Action: None.
7. Consent Agenda:
The Council approved a motion to approve all items on the Consent
Agenda. The motion carried following a motion by Councilman Sack, a second by Councilwoman Williams
and a unanimous vote. The following
actions were affected:
7a. Minutes – The Council approved minutes of the Council’s regular
meeting held Feb. 15, 2011.
7b. Budget Amendment, $104,755 – The
Council adopted an amendment to the FY 2010-11 budget in the amount of
$104,755 to cover costs of a telephone / network system lease. A copy of the budget amendment is incorporated
into these minutes as an addenda page.
7c. Budget Amendments, $147,000 and $30,015 – The Council adopted amendments to
the FY 2010-11 budget in the amount of $147,000 and $30,015 to cover costs of
Phase III sidewalk work. Copies of the budget amendments are incorporated
into these minutes as addenda pages.
7d. Budget Amendment, $250,000 - The Council adopted a amendment to
the FY 2010-11 budget in the amount of $250,000 to receive Community
Development Block Grant funds. A copy
of the budget amendment is incorporated into these minutes as an addendum page.
7e. Budget Amendment, $12,360 – The Council adopted a
amendment to the FY 2010-11 budget in the amount of $12,360 to receive
insurance proceeds for damaged police vehicle.
A copy of the budget amendment is incorporated into these minutes as an
addendum page.
7f. Reclaimed water Program Ordinance 11-02 – The Council adopted amendments to
the Town’s reclaimed water program ordinance.
A copy of Ordinance 11-02 is
incorporated into these minutes as addenda pages.
7g. Friendship Road Utility Project – The Council adopted an amendment to
the Friendship Road utility project engineering contract.
7h.
Hunt Center Furniture Bid
– The Council approved to award a bid to MacThrift Office Supply in the amount
of $61,479.62 for furniture, fixtures and equipment in the new Hunt
Center.
7i. Hunt Center Fitness Room Equipment Bid – The Council approved to award a bid
to LifeFitness in the amount of $156,017 for furniture, fixtures and equipment,
including delivery and sales tax, in the new Hunt Center fitness room.
7j. 2011 Street
Improvement Project Bid – The Council approved to award a bid to Rustin Paving Company in the amount of
$165,551.92, inclusive of 5% contingency, for the 2011 Street Improvement
Project.
7k. NCDOT Sidewalk Project Contract Amendment – The Council approved an amendment
to the NCDOT sidewalk project agreement to extend the completion date.
8a. Contract Approval Threshold Policy – Mr. Simmons
said that in the course
of a year, the Town operates under a number of contracts related to projects
and operations. Under current policy,
each contract should be reviewed by and approved by the Town Council, usually
via the Consent Agenda.
He said that staff requests the
Council to consider a policy in which some routine contracts could be approved
administratively in a limited way without the added delay, paperwork, cost and
effort of preparing the contracts for an appearance on the Consent Agenda.
He said the proposed policy would
allow the town manager to approve contracts amounting to $15,000 or less,
provided the contracts already have been approved by Council through adoption
of the town budget; that the town attorney reviews the contracts before
execution; and a report is provided to the Town Council of the contracts so
approved.
An original draft stated that
department heads would be able to approve small routine contracts; however, the
Council directed that the draft be amended to limit the authority to sign
contracts amounting to $15,000 or less only to the town manager.
Action: The
Council approved a motion to adopt Policy Statement P-037, Contract Approval
Threshold, allowing town manager approval for contracts amounting to $15,000 or
less in budgeted funds.
Motion
By: VanFossen
Second
By: Womble
Vote: Unanimous
8b. Fire Truck Financing - Mr. Holland said the Town requested financing proposals in February from seven
banks for the purchase of a 2010 Pierce Contender six-man custom cab fire
truck. He said the Town was anticipating
financing $365,000 for either a three-, four- or five-year term.
He
said the Town received seven bank proposals on Friday, Feb. 25. Of the proposals, the most beneficial for the
Town was the rate offered by RBC Centura Bank, which offered a 1.740% interest
rate over three years. Annual payments
would be $125,925, and the Town would pay a total of $12,775 in interest over
the life of the loan.
Mr.
Holland reviewed the bids with the Council and recommend an to award to RBC
Centura Bank for financing the amount of $365,000 with an annual interest rate
of 1.740% over a three-year term.
Action: The
Council approved a motion to adopt Resolution 11-04.
Mayor
Pro Tem Sack introduced the following resolution which was read into the
minutes:
A RESOLUTION OF THE
HOLLY SPRINGS TOWN COUNCIL
AUTHORIZING THE
EXECUTION AND DELIVERY OF AN INSTALLMENT fINANCING CONTRACT IN THE AMOUNT OF $365,000 WITH RBC CENTURA BANK (USA) TO
FINANCE THE ACQUISITION OF CERTAIN EQUIPMENT FOR USE BY THE TOWN OF HOLLY SPRINGS; AUTHORIZING THE EXECUTION AND
DELIVERY OF RELATED INSTRUMENTS; AND DETERMINING OTHER MATTERS IN CONNECTION
THEREWITH
BE IT RESOLVED by the governing
body for the Town of Holly Springs,
North Carolina (the “Unit”):
Section
1. The governing body of the Unit does hereby
find and determine:
a)
The
Town of Holly Springs proposes the acquisition of certain
equipment, which may include fixtures as more fully described in the
hereinafter mentioned Contract (collectively, the “Equipment”);
b)
After
consideration, the governing body of the Unit has determined that the most
advantageous manner of financing thereof is by an installment contract pursuant
to Section 160A-20 of the General Statutes of North Carolina, as amended;
c)
Pursuant
to Section 160A-20, the Unit is authorized to finance the acquisition of
personal property, including fixtures, by installment contracts that create a
security interest in the property financed to secure repayment of the
financing; and
d)
RBC
Bank (USA) has proposed that RBC Bank (USA) enter into an Installment Financing
Contract with the Unit to finance the Equipment pursuant to which RBC Bank
(USA) will lend the Unit the amount of $365,000 (the “Contract”) and a related Escrow
Agreement between the Unit and RBC Bank (USA) (the “Escrow Agreement”).
Section 2. The governing body of the Unit hereby
authorizes and directs the Finance Director to execute, acknowledge and deliver
the Contract and Escrow Agreement on behalf of the Unit in such form and
substance as the person executing and delivering such instruments on behalf of
the Unit shall find acceptable. The
Clerk is hereby authorized to affix the official seal of the Town of Holly Springs to the Contract and the Escrow
Agreement and attest the same.
Section 3. The proper officers of the Unit are
authorized and directed to execute and deliver any and all papers, instruments,
opinions, certificates, affidavits and other documents and to do or cause to be
done any and all other acts and things necessary or proper for carrying out
this Resolution and the Contract and the Escrow Agreement.
Section 4. Notwithstanding any provision of the Contract
or the Escrow Agreement, no deficiency judgment may be rendered against the
Unit in any action for breach of a contractual obligation under the Contract or
the Escrow Agreement and the taxing power of the Unit is not and may not be
pledged directly or indirectly to secure any moneys due under the Contract, the
security provided under the Contract being the sole security for RBC Bank (USA)
in such instance.
Section 5. The Unit covenants that, to the extent
permitted by the Constitution and laws of the State of North Carolina, it will
comply with the requirements of the Internal Revenue Code of 1986, as amended
(the “Code”) as required so that interest on the Unit’s obligations under the
Contract will not be included in the gross income of RBC Bank (USA).
Section 6. The Unit hereby represents that it reasonably
expects that it, all subordinate entities thereof and all entities issuing
obligations on behalf of the Unit will issue in the aggregate more than
$10,000,000 of tax-exempt obligations, including the Contract (not counting
private-activity bonds except for qualified 501(c)(3) bonds as defined in the
Code) during calendar year 2011. In
addition, the Unit hereby designates the Contract and its obligations under the
Contract as a “non-bank qualified tax-exempt obligation” for the purposes of
the Code.
Section
7. This Resolution shall take effect immediately
upon its passage.
Upon motion of Councilman Parrish Womble and a second by
Councilwoman Williams, the foregoing resolution entitled “A RESOLUTION OF THE HOLLY SPRINGS TOWN COUNCIL
AUTHORIZING
THE EXECUTION AND DELIVERY OF AN INSTALLMENT fINANCING CONTRACT IN THE AMOUNT
OF $365,000 WITH RBC CENTURA BANK (USA) TO
FINANCE THE ACQUISITION OF CERTAIN EQUIPMENT FOR USE BY THE TOWN OF HOLLY SPRINGS; AUTHORIZING THE EXECUTION AND
DELIVERY OF RELATED INSTRUMENTS; AND DETERMINING OTHER MATTERS IN CONNECTION
THEREWITH” was adopted by the following
vote: Ayes: 5 Nays: 0
PASSED
9. Other Business: Councilman Womble asked if the pot hole in the turn
of Main Street onto G.B. Alford Highway could be filled with asphalt. It is filled with crushed stone and
continually erodes. He also said some
bushes need trimming on Third Street at Main Street.
Councilman
Sack noted the online bike plan survey.
10. Manager’s Report:
Mr. Simmons introduced the Town’s system administrator Glen Lamb. He reminded the Council
of its annual retreat, to convene at 5 p.m. Friday, March 4 and adjourn Sunday
morning March 6, 2011 at River Landing in Wallace, NC.
11.
Closed Session: The Council approved a motion to enter into
Closed Session, pursuant to NCGS 143-318.11(a)(5), to discuss with the Town
Attorney matters regarding the potential acquisition of property near Bass Lake
Park.
Motion
By: Sack
Second
By: VanFossen
Vote: Unanimous.
General Account Closed Session – March
1, 2011
In Closed Session, the Council
discussed with the Town Attorney acquisition of land. Potential terms were
discussed, and the Council provided direction for negotiations.
Action: The Council approved a motion to purchase the
property owned by the late Tate Sanders at Bass Lake for the appraised value of
$220,000 for 1.7 acres with funds pulled from the Town’s Fund Balance.
Motion
By: Sack
Second
By: Cobb
Vote: Unanimous
-- End of the General
Account
No further action was taken in Closed Session
other than the motion to return to Open Session.
Councilman
Sack made a motion to return to Open Session, and it was seconded by Councilman
Cobb. The vote was unanimous in favor of
the motion.
12.
Adjournment: There being no further business for
the evening, the March 1, 2011 meeting of the Holly Springs Town Council was adjourned following a motion by Councilman Sack, a
second by Councilman Cobb and a unanimous vote.
Respectfully Submitted on Tuesday,
March 15, 2011.
_________________________________
Joni Powell,
MMC, Town Clerk
Addendum pages as referenced in these minutes follow and are a part of the official record.