Board of Commissioners

TOWN OF FUQUAY-VARINA BOARD OF COMMISSIONERS REGULAR MEETING OCTOBER 17, 2017 CALL TO ORDER Mayor John W. Byrne called the regular meeting of the Fuquay-Varina Board of Commissioners to order on October 17, 2017 at 7:00 p.m. Commissioners Present: Blake Massengill (Mayor Pro-Tem) Charlie Adcock Bill Harris Jason Wunsch Marilyn Gardner Commissioners Absent: None Others Present: Town Manager Mitchell Assistant Town Manager Matthews Town Clerk Rose Rich Town Attorney James Adcock ****************************** INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Byrne offered condolence to the families, co-workers and friends of two members of Town staff that passed away today unexpected; Firefighter Chris Smith and Facility Maintenance Worker Gabriel Roldan. His comments were followed by a moment of silence in remembrance of Firefighter Smith and Mr. Roldan. Town Manager Mitchell provided the invocation and Commissioner Wunsch led the Pledge of Allegiance. ****************************** APPROVAL OF THE MINUTES The October 2, 2017, minutes of the regularly scheduled Town Board of Commissioners meeting, were presented for approval. MOTION: Commissioner Wunsch SECOND: Mayor Pro-Tem Massengill MOTION RESULT: Passed Unanimously (5-0)  ****************************** PRESENTATIONS Agenda Item No. 4.A: Recognition of Wake County Public Schools Principal of the Year - Jonathan Enns Mayor Byrne presented Fuquay-Varina High School Principal Jonathan Enns with a plaque from the Town of Fuquay-Varina recognizing him for being named the 2017- 2018 Principal of the Year, for the Wake County Public School System. Mr. Enns expressed his appreciation for the recognition and offered condolences to the family members of Firefighter Smith and Mr. Roldan. ****************************** PUBLIC COMMENTS: There were no comments from the public. ****************************** ITEMS TABLED FROM PREVIOUS MEETING: There were no items from previous meetings. ****************************** PUBLIC HEARINGS: Agenda Item No. 7.A: Voluntary Annexation Petition - BCELD Meadowbrook, LLC - 6600 and 0 S NC Highway 55 - PINs 0676150431 and 0676141446 - ANX-2017-16 Purpose – To consider an annexation ordinance extending the corporate limits of the Town of Fuquay-Varina following receipt of a petition for voluntary annexation of property owned by BCELD Meadowbrook, LLC, located at 6600 and 0 S. NC 55, PIN 0676150431 and 0676141446, containing 146.68 acres. Staff Comments – Town Manager Mitchell advised that the property contains approximately 146.68 total acres and it has road access from North Carolina Highway 55. The property also has road access from two existing street stubs to the northern property line: Ber Creek Drive and Heisser Lane. The property is contiguous to the Town's corporate limits and water and sewer is available to the property. As additional information, Town Manager Mitchell advised that the subject property is part of the proposed Meadowbrook Subdivision, which was approved by the Town Board subject to annexation into the Town's corporate limits on September 6, 2016 (due to a design that relied on access to Town water and sewer). At the October 2, 2017 Town Board meeting, the Town Board adopted a resolution setting a public hearing for October 17, 2017, and the annexation petition has been certified by the Town Clerk as being sufficient. Public Hearing – Mayor Byrne declared the public hearing open and he asked if anyone wished to speak in favor of, or in opposition to the annexation petition. No one chose to speak in favor of, or in opposition to the proposed annexation petition. Mayor Byrne declared the public hearing closed. Board Member Discussion – There was no discussion from members of the Town Board regarding this matter. Recommendation – Adopt an annexation ordinance to extend the corporate limits of the Town of Fuquay-Varina to include property owned by BCELD Meadowbrook, LLC (ANX-2017-16) as presented and recommended. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Ordinance No. N-17-38 ****************************** CONSENT AGENDA Agenda Item No. 8.A: Utility Allocation - Meadowbrook Subdivision Purpose – To consider a utility allocation request for the Meadowbrook Subdivision phases 1 and 2. Recommendation – Approve the recommended Utility Allocation for the Meadowbrook Subdivision Phases 1 and 2 only, for 33,750 gpd sewer and 33,750 gpd water, as presented. Agenda Item No. 8B: Budget Amendment - Fuquay-Varina Volunteer Firefighters Organization - $15,873.00 - (BA-2018-04) Purpose – To recognize funds from the Fuquay-Varina Volunteer Firefighter's Organization for the purchase of uniform jackets for all members of the Fire Department. Recommendation – Approve Budget Amendment (BA-2018-04) as presented and recommended. Agenda Item No. 8.C: Temporary Street Closure – Food Truck Rodeo – Downtown Development Division (Economic Development Department) – October 29, 2017 Purpose – To consider a temporary street closure for the Downtown Food Truck Rodeo event scheduled for Sunday, October 29, 2017. Recommendation – Approve a temporary street closure for the Downtown Food Truck Rodeo scheduled for Sunday, October 29, 2017 as presented. A motion was made to approve all items (A-C) on the Consent Agenda as recommended. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) ****************************** ADMINISTRATIVE REPORTS Agenda Item No. 10.A: Downtown Mixed-Use Development Project – Preferred Developer Selection Purpose – To consider selecting a "preferred developer" for the Town's mixed-used development project in the Downtown Fuquay District and for Town staff to exclusively negotiate a Memorandum of Understanding for the Town Board to consider. Staff Comments – Town Manager Mitchell advised that in 2014, the Town adopted an economic development strategy that included an initiative to leverage private mixed- use development projects to its downtown community to include residential, commercial and retail uses. In 2015, with assistance from UNC School of Government’s Development Finance Initiative (DFI), the Town conducted a market analysis downtown to determine the feasibility of building a mixed-use project downtown. The results of the market study concluded that downtown Fuquay-Varina is capable of undertaking a mixed-use project consisting of 250 market rate apartments and up to 25,000 square feet of new commercial/retail space. To create a walkable district with residential and commercial space, the Town of Fuquay-Varina recently acquired site control of 10 parcels totaling 3.7 acres along N Main Street, in the heart of its downtown Fuquay District. To aid in its vision of creating new vibrant downtown development, the Town engaged DFI to provide pre- development services for this N. Main Street site. The Town is committed to partnering with a private developer through a public-private partnership. Town Manager Mitchell reported that in 2016, the Town completed a significant portion of the site predevelopment process and began the step of identifying potential development partners for the N. Main Street project. The Town has analyzed multiple iterations of the N. Main Street project to identify a development program that will be absorbed by the market, financially feasible, and achieves the desired downtown revitalization objectives of the Town. The Town/DFI worked to create a public-private partnership structure that makes clear the roles of the private developer, DFI and the Town in executing a successful project for all involved. Town Manager Mitchell advised that the details of the development plan and public-private partnership structure will be laid out in a memorandum of understanding and eventually a development agreement. Town Manager Mitchell then went on to advise the Board that in June 2017, the Town/DFI issued a request for Solicitation for Development Partners (SDP) to present development concepts for review and consideration by the Town and DFI. On September 15, the solicitation documents were due and the Town received three responses from development firms capable of undertaking the downtown project. Upon review of the three SDP's, Town/DFI conducted interviews with the development teams seeking further clarification to each development team's commitment to undertaking the project. The evaluation of developers responding to the solicitation was conducted to select a development partner and plan that is viable, will best serve public interests, and can be completed in a reasonable time frame. The following evaluation criteria was used to make that selection: Developer Qualifications: - Experience with mixed use projects - Experience with public-private partnerships - Financial capacity of firm Other Factors: - Integration of guiding public interests - Ability to execute quickly - Willing to extend existing purchase contracts Town Manager Mitchell then announced that Armada Hoffler Properties, LLC meets all of the evaluation criteria used to determine a "Preferred Developer" to recommend to the Town Board for endorsement. Other submittals met at least half or more of the evaluation criteria, however Armada Hoffler was the only submittal that met all criteria used for evaluation. An endorsement by the Board is not final approval, but it will trigger an exclusive period of negotiation between the Town and developer for a development services agreement for a downtown development project pursuant to North Carolina General Statute 160A-458.3. Town Manager Mitchell stated that upon comprehensive review of all the proposals submitted, Town Staff is recommending Armada Hoffler Properties, LLC of Virginia Beach, VA as the selected developer to undertake the Town's downtown mixed-use project. Armada Hoffler has been involved in dense urban mixed-use developments for nearly two decades and has successfully developed and constructed 26 public- private partnership projects. As a publicly-traded real estate investment trust, Armada Hoffler brings nearly four decades of experience coupled with the financial strength that comes with access to capital markets and experienced construction services. Town Manager Mitchell shared that if approved as the preferred developer, Town Staff will begin negotiations with Armada Hoffler to enter into a Memorandum of Understanding that will be used to structure a public-private partnership agreement to be finalized during exclusive negotiations over the next 4-6 months as the developer conducts detailed predevelopment analysis including design and cost estimating for the project. Upon completion of additional predevelopment services, the Town intends to enter into a formal development services agreement with the developer that outlines the project’s design, financial model, construction timeline and management of the final mixed-use project. Board Discussion – Commissioner Adcock asked the Town Manager to elaborate on the public participation for this project. Town Manager Mitchell stated that throughout the process the developer will be working on plans to present defined renderings of the project that will come back to the Town Board for approval. Also during this process there will be meetings scheduled to gather public input on the types of businesses that will blend in with the character of the community. Mayor Byrne reminisced about the times when it was only a thought of having a mixed-use development in our downtown area and he stated that this will be a great project for our town. He also thanked Economic Development Director Jim Seymour and DFI for their efforts on this project. Recommendation – Select Armada Hoffler Properties, LLC as the "Preferred Developer" for the downtown mixed-use development project and for the Town to exclusively negotiate and prepared a Memorandum of Understanding for the Town Board's consideration as presented and recommended. MOTION: Commissioner Gardner SECOND: Mayor Pro-Tem Massengill MOTION RESULTS: Passed Unanimously (5-0) Agenda Item No. 10.B: E-35 Elementary School - Interlocal Agreement Amendment and Project Ordinance Purpose – To consider a project ordinance, interlocal agreement amendment, and provide feedback on a proposed concept plan for the E-35 Elementary School and adjacent Town park site located at the intersection of Old Honeycutt Road and future Fuquay-Varina Parkway. Staff Comments – Town Manager Mitchell stated that just today, the Wake County School Board officially approved the name of the E-35 school project as South Lakes Elementary School. He further advised that in 2012, the Town and Wake County Public School System began planning for a future elementary school and Town park site, and purchased property from South Lakes Investors from the South Lakes PUD on Old Honeycutt Road. The elementary school has been identified as E-35 as part of the Wake County Public School System (WCPSS) capital program. At that time, a preliminary master plan design was used to develop the present boundaries of the 20.47-acre school site and 10.25-acre Town park site. Town Manager Mitchell stated that since 2012, Town staff have worked closely with WCPSS staff on long term planning initiatives, new schools, and opportunities for collaborative planning of collocated school and park facilities. Town and School staff have had dialogue in recent months on the need to revisit the original property configuration based on changes in local and state development regulations, as well potential changes in Town and School programmatic needs. Both staffs agreed that this site presented an opportunity for collaboration on a cohesive overall design without respect to the shared property boundary, as both staffs indicated willingness to work in good faith to swap acreage and adjust boundary lines as needed to support an overall configuration that is mutually beneficial. Town Manager Mitchell reported that Town staff have worked closely with school staff in recent months to jointly master plan a school and municipal park, with the goal of yielding improved cohesive design and savings to County and Town taxpayers through the efficiencies of a single designer and potentially single construction mobilization. The Town has concurrently applied for but not yet received approval of $250,000 in matching community school park funding from Wake County, which is reflected in the adopted Five-Year Plan. Mayor Byrne has personally spoken with County Commissioners about the unique Town and school partnership opportunity at this site, planning efforts of both staffs, and the importance of County funding to the Town, school, and Wake County. Town Manager Mitchell recommended, at this point, to allocate Town funding to continue moving forward with master planning and preliminary design for this project (so as not to create delays in the school opening scheduled for 2020). He advised that the Town's Five-Year Plan does not support moving forward with construction of the Park without County participation. Town Manager Mitchell further stated that an amendment to the 2012 ILA is recommended, and was recently approved by the Board of Education, to support joint planning of both properties and cost allocation of design fees. Since WCPSS is utilizing multiple vendors and responsible for overall project management, the ILA amendment provides for a reimbursement structure whereby the Town would reimburse WCPSS for the cost of certain agreed upon design-related services attributable to the Town. The proposed project ordinance includes funding for the master planning phase. A future project ordinance would be required to support full design, construction documents, and construction, which management and staff believe should include $250,000 in County participation and $250,000 in Town participation. In addition to approval of the project ordinance and ILA amendment, Town Manager Mitchell said that he and staff are seeking feedback on a recommended concept plan to be developed into a master plan. The concept plan, which was shown to the Board, provides space for two multipurpose fields, a future community center or similar recreational facility, as well as parking on Town park property. These components could be phased in over time. In addition, the plan would provide for joint use of a play field, playground, and additional parking areas. The overall site design separates bus and car drop off traffic, and provides for approximately 2,000 feet of on-site stacking for car drop off. If the Town Board is supportive of this concept plan, Town staff will work with WCPSS to refine into a full master plan as school design progresses. In addition, the Town and WCPSS would work towards a property "swap" to align Town and WCPSS property boundaries to reflect the new plan. Staff anticipates the final property boundary would include road frontage for both properties, however access would be provided via shared driveways with cross- access easements. Town Manager Mitchell concluded his introduction of the agenda item by stating that he and staff support the proposed concept plan, ILA amendment, and project ordinance, and are seeking feedback on and concurrence with the concept plan, as well as approval of both the ILA amendment and project ordinance. Assistant Town Manager Matthews stated that there will be an opportunity to do a number of bid alternates to identify amenities that will be constructed on day one, and to identify amenities to include in a masterplan and constructed in a later phase. He stated that staff may come up with an arrangement with the school for joint use of their restroom facility. Board Discussion – Commissioner Adcock asked about road frontage for the park site. Assistant Town Manager Matthews stated that there will be access to the park project via Fuquay-Varina Parkway and via Old Honeycutt Road. Mayor Pro-Tem Massengill stated that it’s a wonderful opportunity to partner with the school for this project. He recommended that Town staff discuss plans to partner with Wake County Schools for funding of a future restroom facility. Commissioner Adcock asked Town staff if we anticipate the placement of a stop light on Old Honeycutt. Town Manager Mitchell advised that there are presently no plans for a stop light to be added. Assistant Town Manager Mitchell stated that there are two possible triggers that NCDOT may consider for a stop light, those being when the school opens and the development of South Lakes SF-8 occurs that would drive additional traffic on to Fuquay-Varina Parkway. The Town Board overall concurred with the concept plan presented for the joint use of property for the future South Lakes Elementary School and the Town of Fuquay- Varina park. Recommendation – Approve a project ordinance for the E35 School Park project (South Lakes Elementary School) and the first amendment to the interlocal agreement for development of school and park facilities in Fuquay-Varina, subject to Town Attorney review as to form. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Ordinance No. N-17-39 ****************************** OTHER BUSINESS A. Manager’s Report  Town Manager Mitchell stated that it has been a stellar year in terms of residential and non-residential building permits and referenced the provided quarterly report.  Recognized an article in the Business North Carolina publication on October 4, 2017 that highlights local downtown businesses in Fuquay- Varina.  Acknowledged Planning Department’s role in interacting with CAMPO  Acknowledge Recreation & Parks Director Jonathan Cox who will is attending the School of Government’s Municipal Administration course this year.   Recognized Police Captain Bob Adams who was accepted in the School of Government’s Leadership/Fellowship Program that is sponsored by the Local Government Credit Union. B. Quarterly Report – 1st Quarter FY 2018 C. Communication Award - State of the Town - International Economic Developers Conference Economic Development Director Jim Seymour reported on an award given by the International Economic Development Council. Mr. Seymour stated that the Town won the Silver Excellence In Economics Award for the “2016 State of the Town” video that was produced by Amazing Studios. D. CAMPO Projects Update Engineering Director Tracy Stephenson stated that he had good feedback from NCDOT on a pilot program where they are considering delegating more authority to municipalities. He also stated that for the previously submitted LAPP transportation projects, the Town has all our funding obligated in the appropriate amount of time and is the only member of CAMPO to do so. E. Haunted Trail - Carroll Howard Johnson Environmental Education Park - Saturday, October 21, 2017 - Family Fright 5:00-6:00 PM and Full Fright 7:00-9:00 PM F. Downtown Food Truck Rodeo – Sunday, October 29, 2017 – 1:00 – 4:00 pm – 405 Broad Street G. Economic Development Committee Meeting – Wednesday, November 1, 2017 – 8:30 – 10:00 am H. Town Code Amendment – Clarifying Specific Development Criteria – CTA- 2017-04 – (Mitchell/Smith) ****************************** TOWN BOARD MEMBER COMMENTS Mayor Pro-Tem Massengill expressed his sadness for the Fire Department over their loss of Firefighter Chris Smith. He also stated that the Fire Department Open House was a tremendous success. Commissioner Adcock stated that he appreciates the Mayor recognizing Fuquay- Varina High School Principal Enns and he stated that our schools are great economic development tools. Commissioner Harris stated that the Downtown Mixed-Use Project is going to be a monumental change that will make a positive impact for the Town. Commissioner Wunsch stated that all the recent events this year were very well attended and the citizens and visitors seem to really enjoy themselves. The Fire Department Open House was well attended with so many young families having a wonderful time. He also thanked everyone involved in the Downtown Mix-Use Project and it will be a very exciting project, and stated that the sun shines brighter in Fuquay-Varina. Commissioner Gardner echoed everyone comments and she was excited to see that the Fire Department Open House event was well attended. She also stated that she was excited about the downtown merchant’s “First Friday” events. Mayor Byrne stated that the last two weeks have been busy with the Fire Department Open House and the concert with the Embers, and informed the Town Board of meetings that be attending over the next few days. ****************************** CLOSED SESSION – Pursuant to N.C.G.S. 143-318.11 (a) (3) - Attorney Client Privilege, N.C.G.S. 143-318.11 (a) (4) - Economic Development, and N.C.G.S. 143- 318.11 (a) (5) Property Acquisition A motion was made to enter into a closed session meeting at 8:47 p.m. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) ****************************** OPEN SESSION – There was nothing to report out from the Closed Session meeting. Town Manager Mitchell advised the Board that on this past Friday, the Town opened bids for the N.E. Judd Parkway/Main Street Improvements Project. He stated that after expending funds for major and minor ancillary costs, there was $2.2 million left for the project. He stated that three bids were received and the low bid for the project came in at $3.8 million from Fred Smith Construction. He recommends not to rebid the project, and to try to negotiate down the delta and to make a request to CAMPO for project overrun funds in which the Town could potentially qualify for 50%. Town Manager Mitchell recommended that the Town issue bonds on the remaining 50% ($900,000) from the bonds that we were going to be issued on the second phase of the Sunset Lake/Purfoy and Main Street Intersection Improvements project, to cover the shortfall on the N.E. Judd Parkway/Main Street Improvements Project. He advised that by the time the Town is ready to bid the Sunset Lake/Purfoy and Main Street Intersection project that there are likely a number of scenarios for which the Town could make up the $900,000 to $1.8-million that would be applied to the N.E. Judd Parkway Project now. He described some of those scenarios as additional revenue generated from community growth, a LAPP grant, and perhaps a more favorable bid environment. By unanimous general consensus, the Board concurred with Town Manager Mitchell’s recommendation. ****************************** ADJOURN A motion was made to adjourn the meeting at 9:48 p.m. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Adopted this the 6th day of November 2017 in Fuquay-Varina, North Carolina. FUQUAY-VARINA, NORTH CAROLINA John W. Byrne, Mayor ATTEST: (TOWN SEAL) Rose H. Rich, Town Clerk