Monday, June 1, 2009 – 7:00 p.m.
Attendance: Mayor Larry McMahon, Mayor Pro Tem James Lilly, Commissioners Beverly Johnson, Alphonzo Rush, Henry Thompson, Sr., Harold Thompson, Town Administrator Dwight Smith, Town Clerk Pam Lisenby, Police Chief Randy Smith
Absent: Director of Field Operations Mike Thompson, Fire Chief Tim Huneycutt
The regular monthly meeting of the Norwood Town Council was held on Monday, June 1, 2009 at the Norwood Town Hall. Mayor Larry McMahon called the meeting to order at 7:01 p.m., welcomed the visitors and prayed.
No public concerns were voiced.
Mayor McMahon called for a motion to accept the Consent Agenda as follows:
1) The minutes of the May 4, 2009 regular meeting of the Norwood Town Council were approved on a motion by Commissioner Johnson, seconded by Commissioner Harold Thompson, and passed 5-0.
2) The minutes of the May 28, 2009 special meeting of the Norwood Town Council were approved on a motion by Commissioner Johnson, seconded by Commissioner Harold Thompson, and passed 5-0.
3) A budget update was accepted on a motion by Commissioner Johnson, seconded by Commissioner Harold Thompson, and passed 5-0.
4) A treasurer’s report was accepted on a motion by Commissioner Johnson, seconded by Commissioner Harold Thompson, and passed 5-0.
Mayor McMahon called for a motion to enter a public hearing. Commissioner Henry Thompson so moved, seconded by Mayor Pro Tem Lilly. The motion passed 5-0.
AGENDA ITEM
AGENDA ITEM #1 – PUBLIC HEARING – PROPOSED 2009/2010 TOWN OF NORWOOD BUDGET
Administrator Smith presented the proposed 2009/2010 Town of Norwood budget, stating that the proposed General Fund budget was $1,772,847 and the proposed Enterprise Fund budget was $924,681.
Smith stated the proposed General Fund budget included 3% salary increases for all employees, a solid waste fee increase of $1.00 per cart, a budget transfer from savings of $75,797 and no property tax increase. He added that the proposed General Fund budget did not include a new police car that needed to be added at a cost of $9,000 per year for three years.
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Smith stated there was a big reduction in General Fund revenues over the previous year due to the economy.
Smith stated that the proposed Enterprise Fund budget was greatly decreased from the previous year, adding that revenues and expenditures had been included in the 2008/2009 budget for a project that was not done. Smith said the proposed 2009/2010 budget would not include these anticipated projects up front, but that budget amendments would be done as the projects actually occurred. Smith added that the Town’s auditor agreed that this would be a good practice.
Smith stated that the proposed Enterprise Fund budget would include increased fees as follows: Inside water tap - $750; Inside gravity sewer tap - $1,000; Inside pump sewer tap - $4,000; Inside water capacity fee - $250; and Inside sewer capacity fee - $500 (all fees would be doubled for taps outside the town limits). Smith added that the Town needed a water and sewer rate increase sometime before the end of 2009.
Smith then went over the proposed 2009/2010 budget by departments and line items as follows:
GENERAL FUND
1) ADMINISTRATION
$412,500
Includes insurance, professional services, removal of abandoned houses, etc.
Insurance up because of retiree insurance
No contingency
2) POLICE
$414,947
No car payment unless one is added before final budget is adopted
Chief Smith has looked at Chevrolets—priced less than Ford with better gas mileage
Amount budgeted for gas and oil “just a guess”
3) FIRE
$98,075
A few more fire hydrants will be repaired in the current budget
Payments to Center Rural Fire Department for Berry Hill area completed
May be some room in grant for adjustment
4) STREET
$167,350
Several employees on this payroll
5) POWELL FUND
$93,000
Predicted to be “flat with a small decrease”
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6) SANITATION
$416,300
Approximately $22,000 per month for trash collection
$7,500 for street sweeper payment
7) PARKS & RECREATION
$82,700
Physical improvements at both parks - $10,000 includes concession stand work at Turner Street park, new gutters on Community Building, playground equipment at Darrell Almond Park
Reseeding at Darrell Almond Park
8) CEMETERY
$41,575
New lawn mower included
Quote of $15,000 given by local landscaper to mow and maintain cemetery
9) GARAGE
$46,400
Covers one employee, insurance and retirement
“Well worth every cent he makes”, “best idea we ever had”, “excellent service”
ENTERPRISE FUND
1) WATER PLANT
$436,631
Services contracted to United Water—Smith negotiating contract
$171,431 lease-purchase payments – interest rate decreased resulting in decrease of term years
2) WASTEWATER TREATMENT PLANT
$221,300
More drying beds needed
$100,000 included for installment loan payment—might not need
3) WATER & SEWER FIELD OPERATIONS
“Big guess” – never know what will wear out or break
Large contingency
Smith concluded by saying, “This budget was the best we could do with what we had at this time.” He stated a copy had been on public display in the Norwood Town Hall for 10-12 days.
Commissioner Harold Thompson asked if the proposed 2009/2010 budget reflected the proposed salary changes discussed by the Board previously. Smith said it did not and this would need to be discussed in closed session.
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There was no public comment on the proposed 2009/2010 Town of Norwood budget.
Mayor McMahon called for a motion to close the public hearing and re-enter regular session. Commissioner Henry Thompson so moved, seconded by Commissioner Rush. The motion passed 5-0.
AGENDA ITEMS
AGENDA ITEM #2 – LAKE SHORE PUMP STATION
Administrator Smith stated that Ritchie Construction Co., Inc. of Mt. Pleasant, NC had submitted the low bid for the Lake Shore pump station project of $184,137.96. Smith added that the bid could not be awarded until the financing was completed—no sooner than July 12 when the Local Government Commission met.
Smith added that Stephen Chambers, the Town’s engineer, had thought the bid would come in at $175,000.
Commissioner Johnson asked why most of the bids submitted were over $200,000. Administrator Smith explained that most of the higher bids came from out-of-town companies who would have more expenses.
Commissioner Harold Thompson asked how soon the work would begin after the bid was awarded. Administrator Smith said, “immediately”, adding that Norwood would have until July 18 to award the bid and that Ritchie Construction said they would fit that time frame into their schedule and be ready to begin.
AGENDA ITEM #3 – SEWER LINE FROM EDGEWATER
Administrator Smith stated that Norwood had applied for an express permit from North Carolina Department of Environment and Natural Resources, Division of Water Quality, for the sewer line from Edgewater, but it was not awarded and would require another meeting in two to three weeks.
Smith added that four of the Edgewater sewer line easements had been acquired, but those from three property owners had not been secured. Smith stated that Progress Energy’s easements would have some conditions attached.
Commissioner Johnson asked if it was normal for Progress Energy to attach conditions to easements. Administrator Smith said that it was normal for them.
Administrator Smith said, “Things are moving slowly and Mr. Stephens is in a hurry.”
AGENDA ITEM #4 – ADD OFFICE AT MUSEUM
Administrator Smith stated that the Norwood Museum would like to replace a removed platform in the back and make a 6’ x 8’ office for the Museum (at the expense of the Museum). Smith said the platform would be 4.5 feet above the floor and the Fire Department would not lose any storage.
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Mayor Pro Tem Lilly asked if the Museum was running out of room, to which Commissioner Johnson answered, “Yes”. Commissioner Johnson added that the Museum needed a place to store records and lock up equipment, adding that Les Young left his computer there.
Commissioner Harold Thompson asked if the fire trucks would still be able to get in and out. Mayor McMahon explained that the platform would not affect the fire truck area.
It was the consensus of the Board to approve this project.
AGENDA ITEM #5 – LIEN ON PROPERTY
Administrator Smith presented an Order of Lien issued on 9/1/2000 against the property at 313 North Kendall Street, Norwood in the amount of $8,231. Smith stated that this property had belonged to Oscar Knox (now deceased) and was passed on to Leslie Knox. Smith said Leslie Knox came to visit him, stating that the amount owed on the property had now grown to almost $13,000 with the addition of interest and taxes and that Stanly County was getting ready to foreclose on the property. Knox stated the attorney had not made him aware of this lien when he accepted the property from his father.
Smith stated that Knox would like to make arrangements to pay the $8,231 to Norwood over a period of time with no interest, adding that Knox would also have to pay the taxes.
Commissioner Rush asked if Knox had specified how long a period of time. Administrator Smith said Knox would like to pay $100 per month. Smith added that, if foreclosure happened, the lot would not bring $8,231.
Commissioner Rush asked if Norwood would be assured of full payment if the property was sold. Administrator Smith said the County would get their part first and the lien would come next.
Commissioner Rush asked if the buyer would be responsible for the lien if purchased at public auction. It was stated that it would depend on how the public auction notice was worded.
Mayor Pro Tem Lilly stated, “We don’t need that property”, adding there was an old abandoned well on the property that had never been property filled up.
Mayor McMahon asked, “What can we lose if he pays $100 per month?”
Administrator Smith stated a contract would need to be signed between Knox and the town.
Mayor Pro Tem Lilly asked if this could be handled at the special meeting on Wednesday evening, June 3. Administrator Smith said it could not be discussed because it had not been advertised as being on the agenda.
Administrator Smith said Knox had asked for an answer by July 1.
Smith said if the County sold the property, permission would have to be given to remove the lien or list it as a condition, and an attorney would need to be hired to do this.
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Mayor McMahon, Mayor Pro Tem Lilly and Commissioner Rush were in favor of setting up payments for Mr. Knox in the amount of $100 per month. Administrator Smith said he would have a contract prepared.
Commissioner Harold Thompson said he would first like to know the amount of taxes owed on the property. Administrator Smith will get this information.
AGENDA ITEM #6 – CLOSING NORWOOD MEMORIAL PARK
Administrator Smith stated there had been some damage and disturbances at Norwood Memorial Park late at night, adding that some new street lights would be installed. Smith suggested closing the park at 9 p.m. when there was no organized activity.
Police Chief Randy Smith said the police officers kept running away 8-15 teens from Norwood Memorial park every night, and that the teens had moved to the Baptist Church on Anson Avenue. Chief Smith suggested getting new signs to put up as the present ones were faded out. Chief Smith said the police department could then enforce the rules.
Mayor McMahon asked if Norwood had a curfew for minors and was told it was 11:00 p.m. for anyone under 18. It was stated this information needed to be on the Norwood website.
Mayor McMahon said the teens at the park were wearing black headbands like a gang and were harassing a woman and baby walking down the street. He added that the neighbors were intimidated by these individuals and afraid of retaliation.
Commissioner Rush asked what was printed on the existing signs. Chief Smith said the signs told that the park closed at 11 p.m. Administrator Smith said this should be changed to 9 p.m.
Commissioner Harold Thompson asked if the new lights being installed were street lights. Administrator Smith said these were different lights—much like those at the Post Office that gave tremendously more light.
Mayor McMahon stated that the police needed to enforce the park closing times.
Commissioner Johnson stated there needed to be more scheduled activity at Norwood Memorial Park and this would discourage groups from hanging around, adding the groups gathered because no one was there.
Administrator Smith said Norwood Memorial Park had a great area for a walking trail, but it would require some lights.
Commissioner Johnson asked how police would actually close the park as people could still get in.
Mayor McMahon stated the signs should say the park was closed at 9 p.m., and the police would have the authority to ban any violator from the park for one year.
Commissioner Harold Thompson said this would be really hard for the police to enforce as they
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could not stay at the park all the time. He suggested a community watch program where park neighbors could notify the police department when violators were at the park. Commissioner Thompson added that the neighbors might not be receptive to this idea as they were already feeling intimidated by the teens.
Commissioner Johnson asked if 9 p.m. was a little early to close the parks. Commissioner Harold Thompson said the original opening time was 30 minutes before sunrise and closing was 30 minutes after sunset.
Mayor Pro Tem Lilly asked if both parks could be opened and closed at the same time.
Commissioner Harold Thompson agreed that it would be good for the police department to check both parks but vary their schedule.
Commissioner Johnson said the Town curfew ought to take care of this problem.
Commissioner Johnson made a motion to erect signs stating that both parks close at 9 p.m. and authorize the Norwood Police Department to enforce. Commissioner Rush seconded the motion and it passed 5-0.
Commissioner Rush stated that the curfew time needed to be listed in the newsletter and on the website.
Commissioner Johnson asked if a notice could be sent to the schools. The Board concurred that the violating students would not get these notices to their parents.
Administrator Smith said it would be impressive for the Police Chief to go to the schools and make a five-minute talk to the students. Mayor McMahon asked Police Chief Smith to make arrangements to do this and report back to the Board.
AGENDA ITEM #7 – CONFLICT OF INTEREST LETTER
Administrator Smith presented a letter from Town Attorney Mike Taylor to Bank of Stanly and Town of Norwood clearing his firm of a conflict of interest regarding the loan Norwood is seeking for the Lake Shore pump station project. Smith added that since Taylor had also represented Bank of Stanly, he had asked both parties to sign this letter.
Commissioner Henry Thompson made a motion to authorize Mayor McMahon to sign the conflict of interest letter. Commissioner Johnson seconded the motion and it passed 5-0. A copy of the letter is attached to these minutes and made a part thereof.
AGENDA ITEM #8 – LETTER OF CREDIT FROM LAKE TILLERY PARTNERS
Administrator Smith stated that the current letter of credit from Lake Tillery Partners for $2,326,400 expired on 5/29/09 and he had obtained an amendment to the letter that would be good for 60 days. He added that the amendment reduced the amount of the letter of credit to $562,500 and would expire on 8/2/09. Smith said he felt the project would be completed in 60 days (Phase I).
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Commissioner Johnson made a motion to give Mayor McMahon authority to sign the Amendment to Irrevocable Standby Letter of Credit. Commissioner Henry Thompson seconded the motion and it passed 5-0. A copy of the said Amendment is attached to these minutes and made a part thereof.
AGENDA ITEM #9 -2008/2009 AUDIT REPORT
Administrator Smith presented a Contract to Audit Accounts from Sam K. Turner, Jr., C.P.A. to audit the 2008/2009 Town of Norwood records.
Smith stated that the audit letter from the Local Government Commission regarding the 2007/2008 audit stated the audit had not been filed in a timely manner. Smith explained this was because of Turner’s sickness and there were no repercussions from the late filing of the audit. Smith said he had sent a letter to LGC explaining the delay. Smith recommended allowing Turner to perform the 2008/2009 audit.
Commissioner Henry Thompson made a motion to authorize Mayor McMahon to sign the Contract to Audit Accounts. Mayor Pro Tem Lilly seconded the motion and it passed 5-0. A copy of the Contract to Audit Accounts is attached to these minutes and made a part thereof.
AGENDA ITEM #10 – PAYMENT FOR SEWER OVERFLOWS
Administrator Smith stated the sewer system had backed up into the house of a Price Street residence, damaging mainly the bathroom, and that the house had a history of sewer back-ups. Smith added a contractor had estimated the cost of repairs to be $700 and that the resident might settle for half the estimated cost.
Smith said a pipe going into the Town’s sewer system was stopped up and had been that way for a period of time, adding that the resident felt the Town might be partially liable. Smith said that Mike Thompson, Norwood’s Director of Field Operations, said “part of it could be the Town’s fault”.
Commissioner Rush stated that a previous owner who lived in the residence for 30 years said there was never a sewer back-up when he lived there.
Commissioner Harold Thompson asked what the Town did to contribute to the sewer back-up.
Administrator Smith said there was some obstruction and repeated that Mike Thompson said it could have been the Town’s fault.
Commissioner Harold Thompson asked if others on the line should not have been affected if Norwood’s line was stopped up.
Administrator Smith said a new clean-out had been installed.
Commissioner Harold Thompson asked how much Norwood had already spent on this, to which Administrator Smith answered, “$600 to $700”. Thompson then stated, “I think we’ve already done our part”.
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Commissioner Rush stated he also thought Norwood had already done its part.
Commissioner Harold Thompson stated if the house had been empty for a year, that could have contributed to the stoppage, but that it was not the Town’s problem.
Mayor Pro Tem Lilly stated that the resident would settle for one-half the estimated repair charges.
Commissioner Harold Thompson asked if a backflow preventer had been installed. Administrator Smith said this was not needed as the house was elevated and the sewer would not backflow into the house.
Commissioner Johnson made a motion that Norwood not pay anything regarding this request because Norwood had already fulfilled their obligation. Commissioner Rush seconded the motion and it passed 5-0.
AGENDA ITEM #11 – USE OF PARK FOR PROFIT ORGANIZATION
Administrator Smith reminded Board members that this agenda item had been on last month’s agenda, and he (Smith) had been instructed to see if the State would permit charging for events at the park since it was built with grant money. Smith said he spoke with Lindsey Dunevant and was told Norwood would need to establish a policy.
Administrator Smith said he had not heard recently from the individual requesting to use the park for a profit event, but he knew he would hear from him soon.
Smith said Charles Gardner was receptive to the idea of allowing profit events outside the old Norwood Yarn Sales building on North Main Street, but the Board would need to approve each event.
BOARD CONCERNS
Commissioner Rush stated a sign making drivers aware of the speed limit on Price Street had still not been posted.
Administrator Smith stated that potholes in town streets had not been forgotten. He added these would be done by NCDOT because the cost was less than private companies, but the recent heavy rains had held them up.
Commissioner Johnson stated that a dedication of the new room at the Museum would be held on July 12 from 2-4 p.m. and the community would be invited.
Commissioner Johnson asked if the Community Building could be used by senior groups to do quilting, crafts, etc. Administrator Smith said he had tried to “push” the seniors toward the old water plant for events such as this. He said the quilting group stayed about six weeks and moved out. Smith added that the old water plant is a beautiful building and needed to be used.
Commissioner Harold Thompson asked if Administrator Smith had spoken with Mr. Thomas about coordinating Arbor Day. Smith said Thomas would be here next week and had said he
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could “float the whole thing” with local vendors and big entertainment.
Commissioner Harold Thompson asked if anything had been done to improve the water situation at Melba Isenhour’s house on East Andrews Street. Administrator Smith said the problem had now stretched out to Lloyd Whitley’s house on Glen Haven Street and that testing was being done by David McKew of United Water. Smith said Mike Thompson will make a piece of equipment that goes on the end of a fire hydrant, attach a ¾” hose and leave it running all the time. Smith said a new chemical will also be introduced at the Water Plant that should help.
Commissioner Harold Thompson asked if a note could be sent to Ms. Isenhour and the area residents telling them what was being done. Thompson then asked how long the hose would be left running. Administrator Smith said it would stay on “forever”.
Commissioner Johnson stated there was mud coming off the hill from the subdivision close to her house on Harbor Road and stopping up the ditch.
Mayor McMahon stated he came through town today as the school buses were leaving Norwood School and there was no police officer there. McMahon asked Police Chief Smith why no one was there. Smith answered that Officer Hyatt was supposed to be there.
ADMINISTRATOR’S UPDATE
Administrator Smith presented the following items to the Board:
1) STANLY NEWS & PRESS will soon print a new Norwood magazine and contacted Administrator Smith about a $1,200 ad on the inside front cover. Commissioner Harold Thompson said to tell SNAP to sell enough ads to others to give Norwood their ad. Commissioner Thompson asked if Matt Irvin was going to do another Norwood magazine. Smith said Matt had been busy with his father’s health issues, and he (Smith) felt Norwood did not need two magazines as there was a lot of duplication in the two issues last year.
Commissioner Harold Thompson suggested that Administrator Smith call Matt Irvin and find out if he was planning to do a Norwood magazine, adding that Norwood did not need two magazines. Thompson said if Irvin was not going to do a magazine, Norwood should buy the ad in the SNAP magazine.
Commissioner Johnson made a motion to give Administrator Smith discretion regarding this. Commissioner Rush seconded the motion and it passed 5-0.
2) Fines have been levied at the Eastover pump station of $3,900.
3) Regarding the bridge on the sidewalk to Mary Branch Road, Administrator Smith stated that a decision needed to be made.
Commissioner Harold Thompson stated he had gone over and measured and that Norwood would have to go down Candelon Road at least 75 feet to place a bridge over the creek and stay on Town property. He added that the Town would have to pay for at
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least 100-110 feet of sidewalk. Commissioner Thompson also said it was 9 feet from the corner of the C&A pump station building to the guard rail.
Commissioner Thompson asked how much it would cost to build a 150 ft. sidewalk. Administrator Smith said he would get an estimate.
It was the consensus of the Board to get prices.
4) Regarding the Harbor Road subdivision, Administrator Smith has been trying to get in touch with their engineer (Seago) in Rockingham to “sign off” so the project can be closed out with NCDENR-DWQ. Smith added the subdivision was not connected to the town’s water and sewer systems yet and there was some run-off of mud and other things that needed to be corrected.
Mayor Pro Tem Lilly asked why no one from the Norwood Fire Department attended the Board meetings. Administrator Smith stated the Board needed one more work session and the theme would be the fire department.
Administrator Smith reminded Board members of the special meeting on Wednesday, June 3 at 7:00 p.m., the special meeting on Saturday, June 13 at 12:00 Noon, and the special meeting on Monday, June 15 at 12:00 Noon (work session and budget adoption).
With no further business to discuss, Mayor McMahon called for a motion to close the meeting at 8:50 p.m. Mayor Pro Tem Lilly so moved, seconded by Commissioner Henry Thompson. The motion passed 5-0.
The next regular meeting of the Norwood Town Council will be on Monday, July 6, 2009 at 7:00 p.m. at the Norwood Town Hall.
LARRY McMAHON, Mayor
PAM LISENBY, Clerk