Board of Commissioners

TOWN OF FUQUAY-VARINA BOARD OF COMMISSIONERS REGULAR MEETING NOVEMBER 6, 2017 CALL TO ORDER Mayor John W. Byrne called the regular meeting of the Fuquay-Varina Board of Commissioners to order on November 6, 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 Mark Cumalander ****************************** INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Pro-Tem Blake Massengill provided the invocation and Ed Shift of Boy Scout Troop #316 led the Pledge of Allegiance. ****************************** APPROVAL OF THE MINUTES The October 17, 2017, minutes of the regularly scheduled Town Board of Commissioners meeting, were presented for approval. MOTION: Commissioner Adcock SECOND: Commissioner Harris MOTION RESULT: Passed Unanimously (5-0) The Economic Development Committee Minutes of the November 1, 2017 meeting, were presented for approval. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULT: Passed Unanimously (5-0)  ****************************** PRESENTATIONS Agenda Item No. 4.A: Comprehensive Annual Financial Report (CAFR) – Fiscal Year Ending June 30, 2017 Town Manager Mitchell introduced April Adams of Cherry Bekaert, LLP, who presented findings from the Town’s financial audit for 2016-2017. Ms. Adams recognized members of her staff that performed the actual audit, Eddie Burke, LeAnn Bagasala and Alex Harris, and she thanked Finance Director Carla Morgan and her staff for their assistance during the audit process. Ms. Adams advised that the role of the external auditor is to plan & perform procedures, obtain reasonable assurance, express opinions, and required communications. In summary, the Town audit was clean in opinion, no journal entries, good internal controls, no significant deficiencies identified and full cooperation with management. Town Manager Mitchell recapped a few of the highlights as follows: • Unassigned Fund Balance fell by two percent from $17.8 million to $17.4 and that was due to a mid-year appropriation to the Arts Center which was planned. He stated that if the appropriation had not been made that fund balance would have grown by $2.5 million dollars. He stated that the FY 16-17 budget called for reducing fund balance by $3.5 million in the fiscal year but only about $500k was actually used. Town Manager Mitchell summarized that the Town’s financial position as it pertains to Unassigned Fund Balance was better off during the fiscal year than what was planned. • Revenue in the General Fund was $1.95 million more than what was budgeted in revenues and ad valorem taxes was $111,000 more than was budgeted. • Sales tax was up 7 percent from what was budgeted as were increases in budgeted revenues in a lot of different categories. • Expenditures were $2.9 million less than budgeted but $1.8 million of those dollars were carried over as a budget amendment into this current fiscal year for projects that were planned but not able to be finished in the previous fiscal year. • Four outstanding capital projects were closed in 2017. Town Manager Mitchell stated that previous year’s The Comprehensive Annual Financial Report did receive another Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. He stated that he was very proud of the audit that was presented and the work from the Finance Department. He then recommended that the Town Board accept the FY 2016-2017 Audit as presented. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULT: Passed Unanimously (5-0) ****************************** PUBLIC COMMENTS: There were no comments from the public. ****************************** ITEMS TABLED FROM PREVIOUS MEETING: Agenda Item No. 6.A: Zoning Map Amendment - Don Wellons - 6130 S NC 55 - PIN 0676195209 - REZ-2017-25 Purpose – The purpose of this agenda item is to continue a public hearing and consider a requested zoning map amendment for a total of 25.425 acres, located at 6130 S NC 55 Highway, from the Residential Medium Density (RMD) Zoning District (7.365 acres), Research Light Industrial (RLI) Zoning District (12.915 acres), and General Commercial (GC) Zoning District (5.145 acres) to the Residential Medium Density (RMD) Zoning District (9.478 acres), Research Light Industrial (RLI) Zoning District (11.584 acres), and General Commercial (GC) Zoning District (4.364 acres ). The subject property is also known as Wake County PIN 0676195209. Staff Comments – Town Manager Mitchell advised that the subject property is currently split-zoned, within three of the Town's Zoning Districts: Residential Medium Density (RMD) Zoning District; Research Light Industrial (RLI) Zoning District; and General Commercial (GC) Zoning District. The subject property is within the Town's corporate limits and is currently vacant. He then provided the following additional information: ZONING: The zoning map amendment petition requests approval to modify the existing zoning district boundaries within the subject property. The proposed boundaries will eliminate small, land-locked areas created by existing water features so that the zoning boundary lines follow the boundaries of the water features. SURROUNDING USE: Surrounding properties to the west are within the Lakestone Village subdivision and within Willow Creek subdivision to the south. A storage facility and a vacant lot is to the north of the subject property. The property to the east is comprised of mobile homes. LAND USE PLAN: The 2035 Community Vision Land Use Plan (LUP) calls for a Mixed- Use Neighborhood, which is intended to provide a mixture of residential and commercial uses. This development is typically walkable, provides a transition to surrounding land uses, and must be at least four (4) dwelling units per acre. UTILITIES: Public water and sewer lines run along S NC 55 Hwy and are available with future development of the subject property. TRANSPORTATION: The subject property has access onto S NC 55 Highway, which is classified by the 2035 Community Transportation Plan (CTP) as four (4) lane, median divided cross-section within a 120 foot right-of-way. The subject property also includes extension of existing Old Bramble Lane as a collector street with future development. NEIGHBORHOOD MEETING INFORMATION: A neighborhood meeting was held by the petitioner at the property, on Old Bramble Lane in the Lakestone Subdivision. The meeting occurred on Wednesday, August 16, 2017 from 6:00 PM until 6:30 PM. At the request of the Planning Board, the petitioner conducted a second neighborhood meeting on Wednesday, October 4, 2017 from 6:00 PM until 6:45 PM. Both meeting reports are attached and Town Manager Mitchell advised that the petitioner was available to provide additional information related to either neighborhood meeting. RECOMMENDATION: Staff recommends approval of the proposed zoning map amendment. It is reasonable and in the best interest of the public for the following reasons: 1) The requested zoning map amendment is consistent with the 2035 Community Vision Land Use Plan designations of Light Industrial and Mixed-Use Neighborhood., providing a variety of potential uses on the subject property in consistency with the intent of the district. 2) The requested zoning map amendment provides for slight adjustments to each of the three (3) zoning districts existing on the subject property so that the zoning boundaries correlate with the logical termination of future development within each of the districts. ADDITIONAL INFORMATION: At the September 18, 2017 regular meeting, the Planning Board unanimously voted to continue the public hearing to their October 16, 2017 meeting to allow for further dialogue between the petitioner and neighboring community. A potential discrepancy was identified between information provided during the petitioner's neighborhood meeting and the Town's 2035 Community Transportation Plan. Town staff discussed the requirements associated with future development of the property with the developer so that further dialogue between the petitioner and neighboring community could be productive. In addition to the zoning petition under consideration, the developer also has a site plan in review for the portion of the property included in the industrial zoning. That site plan was submitted prior to the adoption of the 2035 Community Transportation Plan (CTP), which means that the requirements of the CTP are not applicable to development of the portion of subject property within the Research Light Industrial (RLI) Zoning District. This is likely to result in a "gap" in the required collector street identified in the 2035 CTP, should the site plan be approved. Contrary to what was stated in the September 21, 2017 letter sent by the petitioner to property owners, the extension of Old Bramble Lane to Highway 55 is currently reflected on the 2035 CTP map, and was correctly reflected at the September 18, 2017 Planning Board Meeting. In the future when the portion of area included in the residential zoning is developed, it will have to meet whatever ordinances and plans are in place at that time. Currently, the CTP does show that collector street, but any development of the residential zoning would necessitate extension of Old Bramble Ln in one manner or another. Because the intervening industrial site development will not be providing extension of the street, assuming it is built according to the submitted site plan, it is unlikely that any extension of Old Bramble Lane would ever continue to NC Hwy 55. It is more likely that the extension of Old Bramble Lane would connect to additional residential development. If this connection is found to be no longer of public benefit in the future, it is possible the CTP collector network map may be revisited. Town Manager Mitchell advised that due to newspaper advertisement deadlines, the Town Board's October 2, 2017 public hearing was advertised prior to action being taken to table and continue the public hearing and consideration by the Planning Board. The public hearing was opened and continued by the Town Board to the November 6, 2017 Town Board meeting. Public Hearing – Mayor Byrne declared the public hearing open and he asked if anyone wished to speak in favor/opposition of the zoning map amendment. Board Member Discussion – Commissioner Adcock inquired about the extension of Old Bramble Lane with respect to the submitted site plan. Town Manager Mitchell advised that the site plan assumes approval of the proposed zoning map amendment. Commissioner Adcock stated that he didn’t feel comfortable voting on the item tonight and requested more information from planning staff to help be more comfortable with forming his position. Mayor Pro-Tem Massengill agreed that he too needed more information to assist with forming a position. Recommendation – Approve REZ-2017-25, a zoning map amendment at 6130 S NC 55 Highway, from the Residential Medium Density (RMD) Zoning District (7.365 acres), Research Light Industrial (RLI) Zoning District (12.915 acres), and General Commercial (GC) Zoning District (5.145 acres) to the Residential Medium Density (RMD) Zoning District (9.478 acres), Research Light Industrial (RLI) Zoning District (11.584 acres), and General Commercial (GC) Zoning District (4.364 acres ) The proposed zoning map amendment is consistent with the 2035 Community Vision Land Use Plan and is reasonable and in the best interest of the public for the reasons identified by staff. Mayor Pro-Tem Massengill motioned to table the agenda item to the November 21, 2018 regular meeting of the Town Board. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Adcock MOTION RESULTS: Passed Unanimously (5-0) ****************************** PUBLIC HEARINGS: Agenda Item No. 7.A: Economic Development Incentive Agreement and Budget Amendment - Aviator Brewing Company, Inc. - Manufacturing and Distribution Facility Expansion Project - $203,250 - BA-2018-06 Purpose – To consider the approval of budget amendment (BA-2018-06) and the Economic Development Incentive Agreement in an amount up to $203,250 for the Aviator Brewing Company, Inc. Manufacturing and Distribution Project (609 North Street). Staff Comments – Town Manager Mitchell advised that the Aviator Brewing Company, Inc. is considering relocating and expanding its Fuquay-Varina manufacturing and distribution operations located at 609 North Street, Fuquay-Varina. The proposed expansion project will consist of the relocation of the Company's current craft beer manufacturing and distribution operations facility located at 209 Technology Park Lane, Fuquay-Varina to the Company's vacant warehouse facility, 609 North Street (formally known as the Gold Leaf Warehouse). In addition to the facility relocation, the project will include the purchase of new machinery/equipment, retention of 65 employees and creation of 75 new full and part-time employee positions over a five- year period. Upon successfully relocating their operations to the 609 North Street location, the Company intends to use their 209 Technology Park Lane facility to support their restaurant and catering operations. The proposed expansion project will result in $4,065,000 in new capital investments. The Company will hire 75 new full and part-time employees as a result. Capital improvements, the purchase of machinery & equipment, prior acquisition of the warehouse facility and costs associated with hiring 75 new employees will result in a total overall project cost and investment of $5,000,000 in the Fuquay-Varina community. Town Manager Mitchell advised that his and staff's recommendation, with concurrence by the Town Board, of $203,250 in economic development incentive assistance is equal to 5% of the total capital investment proposed by the Aviator Brewing Company, Inc. The recommended funding assistance is consistent with the Town's economic development incentive policy, where the Town may participate in an expansion of local manufacturing facilities up to 5% of an expansion project capital investment. Town Manager Mitchell further advised that the Aviator Brewing Company, Inc. manufacturing and distribution facility expansion project is consistent with the Town's Economic Development Strategy 2015-2025 that meets the Town's objective to assist in the expansion of local Fuquay-Varina manufacturing facilities that create significant new capital investment and the creation of new jobs. The Town's participation in this expansion project has helped secure the company's commitment to invest these project funds in their Fuquay-Varina facility vs. investing in a facility out of the community. Town Manager Mitchell stated that he and Economic Development Director Seymour recommend and support the proposed economic development incentive funding request and believe the expansion of one of the Town's most notable manufacturing facilities will continue to demonstrate the Town's commitment to fostering public- private partnerships with its local industry leaders that provide significant tax base and employment opportunities for the citizens of Fuquay-Varina. Public Hearing – Mayor Byrne declared the public hearing open and he asked if anyone wished to speak in favor of the incentive agreement. Mark Doble with Aviator Brewing Company, Inc. thanked the Mayor, Economic Development Director Seymour and Town Manager Mitchell for this opportunity to expand in the Town. He stated that Aviator started in Fuquay-Varina about nine years ago and now they are ranked in North Carolina as number six in sales. The growth they have received has been amazing and within the next six weeks looks like they will be ranked at number three in the state. Board Member Discussion – Mayor Byrne thanked Mark Doble for locating his business in Fuquay-Varina and stated that he is proud of Aviator Brewing Company. This is the second incentive that the Town has done since adopting its comprehensive incentive policy; Bob Barker Company was the first to receive a Town incentive. He also thanked Economic Development Director Seymour and Town Manager Mitchell for their work on this incentive. Mayor Pro-Tem Massengill stated that he is very proud of the brand and likes that it is in other states. He wants to see Aviator to continue to grow and be successful. Mayor Pro-Tem Massengill stated that he hopes to see the business be ranked number one in the state before long. Commissioner Wunsch stated that his parents were traveling through Europe and they were very excited to find the Aviator brand throughout Europe. Commissioner Adcock stated using this incentive helps our home-grown businesses and helps to make sure that we are not overlooking them. He went on to say that Aviator Brewing Company is probably the best economic development tool we have. He then thanked Economic Development Director Seymour for bringing this to the Town Board. Commissioner Adcock concluded by stating that so much of our growth has been residential and that he is glad we are using this incentive to help a local business like Aviator continue to expand. Commissioner Harris stated he is excited about identifying opportunities to assist local manufacturing businesses grow and expand. Commissioner Gardner stated that Aviator has made an impact on our businesses and especially in the Varina District. She acknowledged that Mark Doble was also named the NC Main Street Champion at the annual Main Street conference this year. Shen then thanked Mr. Doble for serving on the Downtown Development Committee. Recommendation – Approve Budget Amendment (BA-2018-06) and Authorize the Town Manager to execute and administer an Economic Development Incentive Agreement in an amount up to $203,250 for the proposed Aviator Brewing Company, Inc. Manufacturing and Distribution Facility Expansion Project as presented and recommended. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) ****************************** CONSENT AGENDA Agenda Item No. 8.A: Budget Amendment - Police Department - Police Explorer Fundraisers - $3,300 - (BA-2018-05) Purpose – To consider the adoption of a budget amendment that recognizes the funds from recent Fuquay-Varina Police Department Police Explorer fundraising activities and from a donation from St. Augusta Missionary Baptist Church. Recommendation – Approve Budget Amendment (BA-2018-05) as presented. Agenda Item No. 8B: Budget Amendment - United Arts Council - Arts for Municipalities Grant - $1,252.00 - BA-2018-07 Purpose – To recognize the receipt of $1,252.00 from the United Arts Council - Arts for Municipalities Grant Program. This award initiates the first of three installments this fiscal year totaling $3,756.00. Recommendation – Approve Budget Amendment BA-2018-07 as presented and recommended. Agenda Item No. 8.C: Utility Allocation - Bent Tree Subdivision - Phase 1 Purpose – To consider a Utility Allocation request for the Bent Tree Subdivision, Phase 1. Recommendation – Approve the recommended Utility Allocation for the Bent Tree Subdivision, Phase 1 as presented and recommended. Agenda Item No. 8D: Abandonment of Public Right-of-Way – Resolution of Intent to Close a Portion of East Spring Street (~615 linear feet) and Schedule a Public Hearing for December 19, 2017 – SC- 2017-01 Purpose – To consider an application submitted by Wayne Mauldin, on behalf of owners Charles L. Parker, James J. Parker and Gerald B. Parker, requesting to close a portion street right-of-way along East Spring Street, approximately 615 linear feet, from E. Vance Street to the west property line of the Parker property. Recommendation – Adopt the Resolution of Intent to close a portion of E. Spring Street and Schedule a Public Hearing for December 19, 2017 as presented and recommended. Agenda Item No. 8E: Temporary Street Closure - Christmas Parade - Fuquay- Varina Chamber of Commerce - December 3, 2017 Purpose – To consider a temporary street closure for the Fuquay-Varina Chamber of Commerce Christmas Parade scheduled for Sunday, December 3, 2017. Recommendation – Approve a temporary street closure for the 2017 Fuquay-Varina Chamber of Commerce Christmas Parade scheduled for Sunday, December 3, 2017 as presented and recommended. Agenda Item No. 8F: Budget Amendment - Insurance Proceeds From Hail Damage - Police ($28,285.00), Public Works ($33,427.08) - General Fund (BA-2018-08) Purpose – To consider approval of a budget amendment (BA-2018-08) that recognizes funds from insurance proceeds due to hail damage that occurred on 9-1-2017, which included vehicles and structures in multiple departments. Recommendation – Approve Budget Amendment BA-2018-08, recognizing funds from The NC League of Municipalities for storm hail damage, as presented and recommended. Agenda Item No. 8G: Budget Amendment - Insurance Proceeds From Hail Damage - Public Utilities - $19,006.78 - Enterprise Fund - (BA 2018- 09) Purpose – To consider recognizing funds from insurance proceeds due to storm hail damage that occurred on 9-1-2017 that damaged vehicles in Public Utilities Department. Recommendation – Approve Budget Amendment BA-2018-09, recognizing funds from The NC League of Municipalities for storm hail damage as presented and recommended. A motion was made to approve all items (A-G) on the Consent Agenda as recommended. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Gardner MOTION RESULTS: Passed Unanimously (5-0) ****************************** ADMINISTRATIVE REPORTS Agenda Item No. 10.A: Downtown Police Department - Limited Use Take Home Fleet Policy Purpose – To consider expanding the Fuquay-Varina Police Department Limited Use Take Home Fleet Policy to allow police officers that live within 10 miles of the corporate limits of the Town of Fuquay-Varina to drive vehicles to their residences. Staff Comments – Town Manager Mitchell advised that in 2012, the Town Board approved a Fuquay-Varina Police Department Limited Use Take Home Fleet Policy. Currently, the Town allows Fuquay-Varina police officers that reside within the corporate limits of Fuquay-Varina to drive police vehicles home with the following exceptions: (1) Command Staff (Chief, Captains and Lieutenants) may drive police vehicles home provided they live within 5 miles of the corporate limits and (2) Investigators/Specialty Assignment Officers, may drive police vehicles home as long as they live within 5 miles of the corporate limit or are in an on-call status (the 2012 Limited Use Take Home Fleet Policy was provided for reference). Town Manager Mitchell advised that the goals of the 2012 fleet policy are as follows: promote the security of the citizens and deter crime through increased visibility and presence of police vehicles on jurisdictional streets and highways, increase police/community relations through increased personal contacts and services performed, enhance response times to certain types of calls (involving on call personnel) which increases the likelihood of apprehending criminals, improve response time for off-duty personnel who may be called in for an emergency or unexpected staffing shortage, increase vehicle life, manage maintenance costs, encourage officers to take better care of vehicles assigned directly to them, improve officer morale, and encourage officers to live within Town. Town Manager Mitchell reported that recently, the Police Department reviewed other take home police fleet policies of law enforcement agencies within Wake County as a market comparison given recruitment and retention challenges. From the market comparison, most agencies allowed officers to live within at least 15 miles from their town limits (Holly Springs, Garner, Clayton, Rolesville, and Zebulon) with only Wendell allowing 5 miles outside town limits and Knightdale allowing 8 miles outside of town limits (and are currently reviewing expanding the mileage). Morrisville allows 30 miles outside town limits; Apex allows 25 miles outside of town limits and Wake Forest allows 20 miles outside of town limits. Fuquay-Varina is the only agency that requires officers to live within the town limits with a few exceptions as noted. Town Manager Mitchell noted that Cary does not have a take home fleet plan for all officers given the number of officers within the agency (over 180). Raleigh also does not have a take home fleet policy for all officers given the number of officers within the agency (over 800). Currently Garner, Holly Springs, Apex, Raleigh, Angier, Wake County, Morrisville, Harnett County and NCSHP law enforcement agencies have officers living in Fuquay- Varina and driving police vehicles home. Town Manager Mitchell advised that given this market study, the need to update and expand the limited use take home fleet policy is necessary to remain competitive in today's market. Town Manager Mitchell went on to state that given feedback at recent job fairs, recruitment events, and by exit interviews with police employees as well as feedback from current personnel, take home vehicle policies are an issue for consideration when reviewing benefits for police officers, the agency and the community. Town Manager Mitchell and Chief Fahnestock reported that from an implementation perspective, currently the Fuquay-Varina Police Department has 33 vehicles in the Department fleet with 19 assigned as take home fleet vehicles. There are 10 shared vehicles (2 officers per vehicle), 3 investigator vehicles and 1 van. They stated that the Town will be adding 6 vehicles in the FY 18 budget which includes 1 grant vehicle. Given this information and reviewing current officer residency, they advised that they can implement a 5 mile take home fleet policy by the end of this budget year and will be able to implement a 10 mile plan by the end of FY 19 by review of current officer residency and through resources as requested in the Five Year Plan. This plan will be dependent upon resource availability, funding and officer seniority. Town Manager Mitchell advised that the implementation of the policy change would not require a property tax increase to make it work. Town Manager Mitchell summarized that he and the Police Chief are recommending to expand the Police Department's Limited Take Home Fleet Policy to within 10 miles of the corporate limits of the Town of Fuquay-Varina, beginning with a 5 mile plan in FY 18 and then 10 mile plan in FY 19. Board Discussion – Commissioner Adcock asked what percentage of our police officers live within the Town limits and have we looked at what other Towns are doing. Town Manager Mitchell stated that it could have an impact of the police officers living in the corporate limits. He thinks that take home vehicles would be an incentive but they also look at quality life when deciding to live in the Town limits. Commissioner Adcock stated that there is value to community policing and he does not want that to be ignored. Town Manager stated that we are at a disadvantage right now for recruiting top police officers. During the research, some towns are offering signing bonuses or a midcareer bonus if the officer chooses to live in Town versus out of Town. Town Manager Mitchell stated that at some point he might propose this incentive as we evaluate what communities around us are doing so that we are competitive in the market place. Mayor Byrne stated that for us to get top police officers we need to have the full package. Mayor Pro-Tem Massengill stated that he could see that there would be more efficiencies in having them take home vehicles. Police Chief Fahnestock stated that we have 45 sworn officers, 5 vacancies and 15 officers that live in the Town limits. Commissioner Adcock stated that he does not want to lose sight of having top officers and need to have some incentive for the officers to live within the Town limits. Town Manager Mitchell stated he didn’t know that if in 5 years that the take home vehicle would be the incentive that would make a difference in hiring top notch officers but thinks that since 2012 it has helped. He is recommending that 5 and 10 miles take home policy be implemented over a two-year period. He further stated that he would also look at other incentives and encourage in-town residency and bring back a proposal for that at a later time. Commissioner Adcock stated that the Chief is extremely passionate about this and he really appreciates that. Mayor Pro-Tem Massengill stated that he supports this plan and he would like to see that all staff live in Town and have an incentive for them as well. Commissioner Gardner stated that there is a low inventory for real estate now and was wondering if affordable housing and employment for spouses are not driving them out of Town. Commissioner Wunsch stated the reaction time is very important as we have seen throughout our country lately. Commissioner Harris asked for a new officer under the proposed plan if they would have a take home vehicle during their probation. Town Manager Mitchell stated that they would not. Chief Fahnestock stated they would have to complete their training, probationary period and have an excellent evaluation to be able to qualify for a take home a vehicle. Commissioner Adcock asked how often are the cars being used. Chief Fahnestock stated that we have 15 take home cars now. She stated that there are about 10 cars that are being used on a regular basis but the 15 take home cars would not be used as much because it would be assigned to that one officer. By having this plan, it gives accountability to the officers, the equipment is better taken care of, and there is less wear and tear on the car. Recommendation – Approve the policy change as recommended. MOTION: Commissioner Adcock SECOND: Mayor Pro-Tem Massengill MOTION RESULTS: Passed Unanimously (5-0) Agenda Item No. 10.B: Contract Award - Fred Smith Company- NE Judd Parkway Intersection Project - $3,812,813.00 Purpose – To consider approval of a project ordinance amendment for the US 401/NE Judd Parkway Intersection Project and award a construction contract for U-5927A - NE Judd Parkway Intersection Project in the amount of $3,812,813.00 Staff Comments – Town Manager Mitchell advised on October 13, 2017, Town Staff opened bids for the first of the 2015 voter approved bond projects, U5927A-NE Judd Intersection project. Fred Smith Company was the low bidder with a bid of $3,812,813.00. Town Manager Mitchell stated that this represents a significant increase in construction cost since the project was initially scoped. As the project has proceeded through development, the complexity of the commercial corridor, the level of current traffic, and the significant increase in the amount of heavy construction projects in the area have contributed to this increase. This is not inconsistent with other projects in other municipalities. The Town received three bids. Town staff along with Kimley-Horn and NCDOT worked to make sure the project information was widely advertised. Only having three bids was just another reflection of how tight the current construction market is proving to be. Town staff consulted with NCDOT and Kimley- Horn and do not believe that a re-bid of the project would result in better bid prices and might even have negative results on bid price. Town staff would normally have negotiated with the low bidder to bring the price down, however, the use of Federal funds on the project will not allow the price to be negotiated. Fred Smith Company is well known in the area, is very familiar with NCDOT contracts, and is more than capable of completing this project. As such, Town staff recommends award of the project. A bid tabulation is attached for reference. Town Manager Mitchell then advised the Town Board that they previously established a project ordinance to support this project. The initial project ordinance was set at $1,325,000 to cover the design and environmental documentation as well as Right of Way Acquisition. The project ordinance was subsequently amended to include the remainder of the construction budget of $2,810,000. These project budget items were funded by fund balance ($1,325,000), debt service reserves ($1,124,000), and Locally Administered Projects Program (LAPP) Grants ($1,686,000). Additional ROW, Railroad, and Utility costs led to a third amendment of $1,090,000. The construction bid amount of $3,812,813 necessitates a fourth project ordinance amendment of $1,850,000 to fully fund the project including construction administration. This is based on current expenditures and expected remaining expenditures. Town Staff recommends the use of funds from the 2015 bond funding program to cover the overage. Town Staff will explore grant opportunities for other bond projects and additional funding from CAMPO on this project to help mitigate the overage. The CAMPO executive board may approve funding as they have available to help cover overages. This money is usually distributed as a 50/50 matching reimbursement. Town staff is currently initiating the process of pursuing CAMPO's assistance on the additional funding. A budget summary and the project plans were attached for reference. Board Discussion – There was no discussion from members of the Town Board regarding this matter other than by consensus to agree that this project is critical to the future of the community and must move forward. Recommendation – Amend the US 401/NE Judd Parkway Intersection Project Ordinance and approve award of a contract to Fred Smith Company for U-5927A - NE Judd Parkway Intersection Project in the amount of $3,812,813.00 as presented and recommended. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Ordinance No. N-17-40 Agenda Item No. 10.C: Resolution - Authorizing Upset Bid Process - 416 Cherry Street and 323 West Jones Street Purpose – To consider a resolution authorizing an upset bid process for sale of properties owned by the Town of Fuquay-Varina to Gala Construction, LLC. Staff Comments – Town Manager Mitchell advised that Jason Galarneau, managing member of home builder Gala Construction, LLC, has expressed to the Town an interest to purchase two Town owned properties located at 416 Cherry Street (0.34 acres) and 323 West Jones Street (0.12 acres), both zoned Residential Medium Density (RMD) Zoning District. Both Town owned properties consist of abandoned wells formerly used by the Town's Public Utilities Department for the Town's original water distribution system. The Town has not used either property for many years, however the Town has continued to perform basic mowing and land maintenance on the properties. Gala Construction, LLC represents that upon acquisition of the Town property they intend to develop the properties as infill residential lots. Gala Construction has already built a number of infill homes in the Lincoln Heights area of Town. Town Manager Mitchell advised that this area is identified as Town Center Residential (TCR) in the Town's 2035 Community Vision Land Use Plan, which encourages infill development inside of Judd Parkway to complement and support the two Downtown districts. The properties could support residential development under the current RMD zoning, or alternatively under TCR subject to a zoning process. Gala Construction has submitted separate offers to purchase the two properties, at $20,000 per lot. Town Manager Mitchell advised that if agreed to by the Town Board, the offer to purchase for each property will be considered, advertised, and go through the upset bid process independently, consistent with North Carolina General Statute. Proposed resolutions were presented that are pursuant to N.C.G.S. §160A-269 where a city may receive, solicit, or negotiate an offer to purchase property and advertise it for upset bids. When an offer is made and the council proposes to accept it, the council shall require the offeror to deposit five percent (5%) of his bid with the city clerk, and shall publish a notice of the offer. The notice shall contain a general description of the property, the amount and terms of the offer, and a notice that within 10 days any person may raise the bid by not less than ten percent (10%) of the first one thousand dollars ($1,000) and five percent (5%) of the remainder. When a bid is raised, the bidder shall deposit with the city clerk five percent (5%) of the increased bid, and the clerk shall re-advertise the offer at the increased bid. This procedure shall be repeated until no further qualifying upset bids are received, at which time the council may accept the offer and sell the property to the highest bidder. The Town shall have the right to reject the offer by Gala Construction, LLC or any upset bidder to purchase the Town property at any time prior to the final acceptance of the offer pursuant to statute and the Agreement shall be null and void upon such rejection, all deposits shall be returned, and the parties shall have no further obligations. Board Discussion – The consensus of the Board through general discussion was to proceed with the upset bid process and thanked staff for working with the offeror to bring this matter forward to the Board and at a price that the Board felt was comfortable with to proceed. Recommendation – Adopt the proposed resolutions as presented and authorize the Town Manager to execute the sale of Town owned property upon the completion of the upset bid period pursuant to N.C. Gen. Stat. 160A-269. The resolution has been reviewed by the Town Attorney as to form and content and is in the interest of the public. MOTION: Commissioner Gardner SECOND: Commissioner Adcock MOTION RESULTS: Passed Unanimously (5-0) Agenda Item No. 10.D: Preliminary Subdivision Plat - Broadwell Trace - SUB-PR- 2017-17 Purpose – To consider a preliminary subdivision plat submitted by ESP Associates, P.A. called Broadwell Trace, located at 721 Coley Farm Road. Staff Comments – Town Manager Mitchell stated that the submitted preliminary subdivision, Broadwell Trace, is located at 721 Coley Farm Road on 55.7 acres in the Residential Medium Density Conditional Zoning District (RMD-CZD) with the condition being no duplexes. He then provided the following additional information. SUBDIVISION INFORMATION: The preliminary subdivision plat proposes 120 residential lots meeting the standards for open space developments following the 25% open space dedication option. The minimum lot size permitted is 5,000 square feet. The minimum lot size provided is 6,240 square feet, with the average lot size being 8,242 square feet. Following the 25% open space dedication option, a minimum of 13.9 acres of overall open space with 2.78 acres of common green area is required. There are 19.5 acres of overall open space with 3.4 acres of common green area provided. TRANSPORTATION: Vehicular access to the project area is provided via Coley Farm Road, classified as a parkway as this will become a portion of Fuquay-Varina Parkway. The Town's 2006 Community Transportation Plan (CTP), which this project was submitted under, requires reservation of right-of-way along Coley Farm Road and the developer is offering dedication of this right-of-way for future Fuquay-Varina Parkway. As a result of the required traffic impact analysis (TIA), improved access into the development is being provided. UTILITIES: Public water and sewer are available to serve the subject property and will be installed by the developer. Town Manager Mitchell advised that the proposed preliminary subdivision plat meets all Town requirements, as such management and staff recommend approval. At the October 16, 2017 regular meeting the Planning Board also unanimously recommended approval. Board Discussion – Commissioner Adcock inquired about the buffer along the northern property line. Planning Director Smith stated that they are required to have a 10-foot buffer. She further advised that it is an opaque buffer and goes from type A to type B. Mayor Byrne asked how the property was accessing Town sewer. Town Manager Mitchell stated that sewer will be accessed off Coley Farm Road and up to Wilbon Road. Recommendation – Approve the Broadwell Trace preliminary subdivision plat, SUB- PR-2017-17, located at 721 Coley Farm Road as presented and recommended. MOTION: Commissioner Adcock SECOND: Commissioner Gardner MOTION RESULTS: Passed Unanimously (5-0) Agenda Item No. 10.E: Preliminary Subdivision Plat - Avery Crossing - SUB-PR- 2017-20 Purpose – To consider a preliminary subdivision plat submitted by Nau Company, PLLC called Avery Crossing, located at 1301 Phelps West Road. Staff Comments – Town Manager Mitchell stated that the submitted preliminary subdivision, Avery Crossing, is located at 1301 Phelps West Road on 19.393 acres in the Residential Medium Density - Conditional Zoning District. He then provided the following additional information. SUBDIVISION INFORMATION: The preliminary subdivision plat proposes 56 residential lots meeting the standards for open space developments following the 25% open space dedication option. The minimum lot size permitted is 5,000 square feet. The minimum lot size provided is 5,687 square feet, with the average lot size being 7,066 square feet. Following the 25% open space dedication option, a minimum of 4.028 acres of overall open space with 0.806 acres of common green area is required. There are 4.339 acres of overall open space with 0.972 acres of common green area provided. ADDITIONAL INFORMATION: A preliminary subdivision plat under the same name was submitted for the subject property in August 2016. This plat was recommended for approval by the Planning Board and approved by the Town Board. This subdivision plan was since revised and submitted under the regulations contained in the Land Development Ordinance (LDO). TRANSPORTATION: Vehicular access to the project is provided via a public street entrance onto Phelps West Road, classified as a 60 foot right-of-way, minor thoroughfare by the Town's 2006 Community Transportation Plan (CTP), under, which this plan was submitted. The project includes dedication of half of the right-of-way, lane of widening curb and gutter, and a five (5) foot sidewalk. This project also includes 120' ROW dedication for the future Fuquay-Varina Parkway. UTILITIES: Public water and sewer are available to serve the subject property and will be installed by the developer. Town Manager Mitchell advised that the proposed preliminary subdivision plat meets all Town requirements, as such management and staff recommend approval. At the October 16, 2017 regular meeting, the Planning Board also unanimously recommended approval. Board Discussion – There was no discussion from members of the Town Board regarding this matter. Recommendation – Approve the Avery Crossing preliminary subdivision plat, SUB-PR- 2017-20, located at 1301 Phelps West Road as presented and recommended. MOTION: Commissioner Wunsch SECOND: Commissioner Harris MOTION RESULTS: Passed Unanimously (5-0) Agenda Item No. 10.F: Preliminary Subdivision Plat - Theys Mill - SUB-PR-2017- 21 Purpose – To consider a preliminary subdivision plat submitted by Curry Engineering called Theys Mill, located at 1240 Kenneth Branch Road. Staff Comments – Town Manager Mitchell stated that the submitted preliminary subdivision, Theys Mill, is located at 1240 Kenneth Branch Road on 26.40 acres in the Residential Medium Density-Conditional Zoning District (RMD-CZD), with the conditions being single family homes only - no duplexes. He then provided the following additional information. SUBDIVISION INFORMATION: The preliminary subdivision plat proposes 76 residential lots meeting the standards for open space developments following the 18% open space dedication option. The minimum lot size permitted is 7,000 square feet. The minimum lot size provided is 7,491 square feet, with the average lot size being 8,394 square feet. Following the 18% open space dedication option, a minimum of 4.75 acres of overall open space with 0.95 acres of common green area is required. There are 6.68 acres of overall open space with 1.37 acres of common green area provided. TRANSPORTATION: Vehicular access to the project area is provided via a public street entrance onto Bowling Road, classified as a minor thoroughfare and also by a stub connection to Ryan Place Subdivision via Theys Mill Drive and a stub to the north via London Meadow Way. The Town's 2006 Community Transportation Plan (CTP), which this project was submitted under, requires the installation of curb and gutter and sidewalk where the property fronts Bowling Road. While not required to comply with the 2035 Community Transportation Plan, the plan includes the collector street shown on the staff map, as required by the 2035 CTP. UTILITIES: Public water and sewer are available to serve the subject property and will be installed by the developer. Town Manager Mitchell advised that the proposed preliminary subdivision plat meets all Town requirements, as such management and staff recommend approval. At the October 16, 2017 regular meeting, the Planning Board also unanimously recommended approval. Board Discussion – Commissioner Adcock asked what is the plan for improvements for Kenneth Branch Road. Town Manager Mitchell stated that there are other interested parties evaluating properties adjacent to the road and the Town is in discussion with those parties with respect to the future of Kenneth Branch Road, however nothing has been finalized to this point. Mayor Byrne asked if Wake County Public School had acquired property in this area. Town Manager Mitchell stated that they have acquired property. Commissioner Adcock asked if the road name had been changed and who would be responsible for that road. Planning Director Smith stated that the road name had been changed to Kenneth Branch Road and that the Town would look to whomever develops property adjacent or on the private road to make future improvements. Recommendation – Approve the Theys Mill preliminary subdivision plat, SUB-PR-2017- 21, located at 1240 Kenneth Branch Road as presented and recommended. MOTION: Commissioner Harris SECOND: Commissioner Gardner MOTION RESULTS: Passed Unanimously (5-0) ****************************** OTHER BUSINESS A. Manager’s Report • Town Manager Mitchell reported that Single Family Permits through the month of October are at 538. He stated that last year at this time the Town was at 529. He summarized that the Town is having another strong year. B. Project Status Report – (November 2017) C. Financial Quarterly Report – 3rd Quarter 2017 D. Coffee with a Cop – The Corner Biergarten – 1625 N. Main Street – Wednesday, November 8, 2017 – 11:00 am – 1:00 pm Mayor Byrne then addressed the Board and stated that he is making an appointment to the Planning Board to fill an in-Town vacancy. Mayor Byrne introduced Brett Hennington and his wife Kelsey. He informed the Board that Brett is a resident and has been involved in many of the Town’s planning efforts over the past few years including the Land Use Plan process, the Transportation Plan process, and providing input to the Town’s Downtown Mixed Use Development planning efforts. Mayor Byrne advised that Brett was being recommended by the Planning Director and that he and the Manager had spent time with Brett to discuss his appointment and the vision of the Town Board. Brett thanked the Mayor for the opportunity to serve and said that he is excited about the work of the Planning Board. Mayor Byrne advised that Brett’s term will end December 31, 2020. He is filling an unexpired term that is set to expire on December 31, 2017. The Mayor asked the Board to ratify the appointment. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Mayor Byrne then stated that he, Mayor Pro-Tem Massengill, Commissioner Wunsch, and Town Manager Mitchell attended the Wake County Board of Commissioners meeting earlier that afternoon, where the County Commissioners were considering moving forward with the South Wake Regional Park project at Crooked Creek. Mayor Byrne advised that he addressed the County Commissioners letting them know that the Town supports the County moving forward with the park venture and that he thinks it will fill a void for a County Park in the southern region of the County. Mayor Byrne reported that his remarks were received favorably by the County Commissioners and those in attendance at the meeting. Commissioner Wunsch then advised that social media is reporting that the County Commissioners approved moving forward with the South Wake Regional Park project by a 4 to 3 vote. Town Manager Mitchell also confirmed that was the same information they were hearing from County staff. ****************************** TOWN BOARD MEMBER COMMENTS Mayor Pro-Tem Massengill – No additional comments. Commissioner Adcock – stated that he hopes everyone in the community will get out and vote tomorrow. Commissioner Harris - wished Mayor Byrne, Mayor Pro-Tem Massengill, and Commissioner Wunsch the best at tomorrow’s election. Commissioner Wunsch – stated that it has been a pleasure to serve and wishes everyone up for re-election tomorrow the best of luck. Commissioner Gardner – stated that she enjoyed the Food Truck Rodeo event. She also stated that there was a very successful fund-raising event for Guess Who was Coming to Dinner hosted by the United Arts Council and held at Rock Harbor Grill. She said that one of the entertainers was one of the Town’s own, Chuck Ragsdale. He was the grandson of the 1st mayor. She concluded by stating that she will be attending her first National League of Cities conferences next week in Charlotte. Mayor Byrne – stated that he attended the United Arts Council event as well and it was excellent. He apologized for being out of Town for the Food Truck Rodeo but understands that it was a very successful event despite the weather. He then wished everyone on the Board that is running for re-election the best of luck tomorrow and acknowledged that everyone has worked hard. Mayor Byrne stated that this is the best Town Board he has served with. ****************************** 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 a closed session meeting at 9:22 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. ADJOURN A motion was made to adjourn the meeting at 10:05 p.m. MOTION: Mayor Pro-Tem Massengill SECOND: Commissioner Wunsch MOTION RESULTS: Passed Unanimously (5-0) Adopted this the 21st 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