shelby city council city hall council chamber regular

Shelby City Council City Hall Council Chamber Regular Meeting 300 South Washington Street August 7, 2017 at 6:00 p.m. Shelby, North Carolina

Welcome and Call to Order by Mayor O. Stanhope Anthony III

~ Invocation ~

~ Pledge of Allegiance ~

A. Approval of agenda:

Discussion and revision of the proposed agenda, including consent agenda; adoption of an agenda

1) Motion to adopt the agenda as proposed or amended

B. Special Presentation:

1) Uptown Shelby Association (USA) update – Audrey Whetten, Executive Director 1

C. Consent Agenda:

Prior to approval and adoption of the agenda, a Council Member may move an item from the Consent Agenda to the regular agenda. Items remaining on the Consent Agenda will be considered collectively through a single motion and vote.

1) Approval of the Minutes of the Regular Meeting of June 19, 2017 2

2) Approval of Special Event Permit Applications: 12

a. American Legion Walk for Veterans, requested date:

August 9, 2017 14

b. Harvest Moon 5K, requested date: September 29, 2017 20

c. Don Gibson Theatre Annual Fundraiser, requested date: November 11, 2017 26

3) Approval of a resolution approving a Lease Agreement

between the City of Shelby and Creative Sign Service, Inc. for property located at the intersection of East Marion Street and Kemper Road: Resolution No. 50-2017 32

Shelby City Council Agenda August 7, 2017

4) Approval of a resolution authorizing disbursement of travel and tourism funding for Fiscal Year 2017-2018: Resolution No. 51-2017 40

5) Approval of a resolution approving an agreement for a Community Development Block Program Economic Development Grant by the North Carolina Department of Commerce: Resolution No. 52-2017 43

6) Approval of a resolution approving an agreement for a Rural Economic Development Agreement from the Industrial Development Fund Utility Account by the North Carolina Department of Commerce: Resolution No. 53-2017 56

D. Unfinished Business:

1) Consideration of appointments to City advisory boards and commissions: 76

a. Shelby Cleveland County Regional Airport Advisory Board 79

b. Shelby Housing and Redevelopment Advisory Board 80

c. Alcoholic Beverage Control Board 81

d. Isothermal Planning and Development Commission Board 86

E. New Business: None 92

F. City Manager’s Report 92

G. Council Announcements and Remarks: 92

1) Recognition of City Clerk Bernadette A. Parduski awarded her second designation as North Carolina Certified Municipal Clerk (NCCMC) by the School of Government of the University of North Carolina at Chapel Hill and the North Carolina Association of Municipal Clerks

Shelby City Council Agenda August 7, 2017

H. Closed Session: 95

1) To approve the Minutes and General Account of the Closed Session of June 5, 2017

2) To prevent the disclosure of information that is privileged or

confidential pursuant to the law of North Carolina, not considered a public record within the meaning of Chapter 132 of the General Statutes, pursuant to General Statute 143-318.11 (a) (1)

I. Adjournment:

To adjourn a meeting of City Council, a majority of the Council members must vote for a motion to adjourn. 1) Motion to adjourn 95

City of Shelby Agenda Item Summary

August 7, 2017 City Hall Council Chamber

Agenda Item: B-1 Special Presentations

1) Uptown Shelby Association (USA) update – Audrey Whetten, Executive Director

(Comments: Mayor Stan Anthony) Summary of Available Information: No documentation provided at this time

City Manager’s Recommendation / Comments This time is scheduled on your agenda to allow Audrey Whetten, Executive Director of Uptown Shelby Association, to update the City Council. I’ve asked Ms. Whetten to update us on a quarterly basis.

1



C. Consent Agenda: Prior to approval and adoption of the agenda, a Council Member may move an item from the Consent Agenda to the regular agenda. Items remaining on the Consent Agenda will be considered collectively through a single motion, second, and vote. Agenda Item: C-1

1) Approval of the Minutes of the Regular Meeting of June 19, 2017

Consent Agenda Item: (Staff Resource, Bernadette Parduski, City Clerk) Summary of Available Information: Please read and offer changes as you deem necessary. Minutes of the Regular Meeting of June 19, 2017.

City Manager’s Recommendation / Comments Approve the minutes as presented or as amended by the Mayor and City Council via the Consent Agenda.

2

M I N U T E S Regular Meeting June 19, 2017 City Hall Council Chamber Monday, 6:00 p.m. Present: Mayor O. Stanhope Anthony III, presiding; Council Members Eric B.

Hendrick, David W. White, David Causby, Dennis C. Bailey, Dicky Amaya; City Manager Rick Howell, City Clerk Bernadette A. Parduski, NCCMC, MMC, City Attorney Robert W. (Bob) Yelton, Director of Finance Justin S. Merritt, MPA, Assistant Director of Finance Elizabeth B. (Beth) Beam, CPA, Director of Human Resources Deborah C. (Deb) Jolly, Director of Energy Services Julie R. McMurry, Civil Engineer/Stormwater Coordinator Layne Owen, PE, Police Chief Jeffrey H. (Jeff) Ledford, Fire Chief William P. Hunt, MPA, EFO, Assistant Fire Chief – Logistics and Enforcement Services Todd McMurry, Assistant Fire Chief – Operations and Personnel David Vanhoy, Director of Parks and Recreation Charlie Holtzclaw, and Director of Planning and Development Services Walter (Walt) Scharer, AICP; and Director of Cable Programming Greg Tillman of Cleveland Community College and The Video Factory

Absent: Council Member Ben Kittrell Mayor Anthony called the meeting to order at 6:00 p.m. and welcomed all who were in attendance. The Mayor gave the invocation and Mr. Bailey led the Pledge of Allegiance. A. Approval of agenda:

1) Motion to adopt the proposed agenda

ACTION TAKEN: Upon a motion made by Mr. Amaya, City Council voted unanimously to approve the agenda as presented.

B. Special Presentations:

1) Certified Entrepreneurial Community Program update – Stephen H. Padgett, Director, Small Business Center, Cleveland Community College

Mr. Padgett began his presentation by defining the term entrepreneur and stating the Certified Entrepreneurial Community (CEC) Program signifies Shelby and Cleveland County have become entrepreneur-ready and a place

3

where entrepreneurs can succeed. He provided photographs depicting the North Carolina Department of Transportation installation of road signs with the official CEC designation at four Cleveland County borders: NC Highway 18 North and South and US 74 Bypass East and West. Mr. Padgett stated the Cleveland County Certified Entrepreneurial Community website is up and running at www.ClevelandCountyCEC.com. He highlighted the website theme: “In Cleveland County, great ideas can take you anywhere. We’ll make sure of it.” Mr. Padgett displayed a screenshot from the online Resource Guide and demonstrated the use of the City of Shelby links.

Mr. Padgett concluded by expressing his appreciation to the City of Shelby for its investment and support of the CEC Program and acknowledged the participation of all 15 municipalities in Cleveland County as well. Mayor Anthony then expressed the City’s appreciation to Mr. Padgett for his dedication and excellent work overseeing the CEC Program. Council received the information and took no action.

2) Recognition of Raymond S. Beck on the occasion of his retirement from

employment with the City of Shelby: Resolution No. 41-2017 Mayor Anthony called upon Mr. Beck who recognized his Fire and Rescue Department family in attendance. The Mayor formally read and presented framed Resolution No. 41-2017 to Mr. Beck. He then presented the key to the City, a City lapel pin, and plaque to Mr. Beck in honor of and with heartfelt appreciation for 29 years of dedicated service to the City of Shelby in both the Police and Fire and Rescue Departments. Humbled by the recognition, Mr. Beck expressed his appreciation to all, urging City Council to take care of their employees. 3) Cleveland County Economic Development Partnership (CCEDP) update –

Kristin H. Reese, Executive Director

Mrs. Reese introduced her presentation entitled, “The Times They Are A-changing”, by stating as America reacts in response to world changes so does the economic development model.

Mrs. Reese summarized the successful utilization of the traditional economic development model in Cleveland County from 2006 through 2017. The cumulative results led to $6 billion in new capital investment and 4,000 new jobs. Ultimately, Shelby was ranked fourth on the 2016 Top Micropolitans listed by Site Selection Magazine.

4

Next, Mrs. Reese discussed the top factors driving site location decisions over the last ten years:

Labor costs Cost of doing business Infrastructure Real estate Location Financial incentives Transportation network

Mrs. Reese stated currently the top factors driving site location decisions include quality of life and place and human capital. This new approach was the theme of the Next Gen Talks Site Location Consultant Conference held in Austin, Texas which Mrs. Reese attended in May 2017. She stressed that companies and people choose communities that want to invest in themselves. With regard to site location decisions made today versus in the past, Mrs. Reese elaborated as to the following:

Evolving algorithm – companies are digging deeper at the local level; consultants are utilizing sophisticated analytics behind the scenes to evaluate communities before they are contacted

Quality of life and labor – consultants now consider quality of life and available labor as the two most important decision drivers

Workforce development – consultants agree that economic

development consultants should be the primary facilitators of these efforts as they are engaging in analytics that allow them to examine the available labor pool of communities before they begin to look at real estate

Mrs. Reese stated the CCEDP is in the process of developing a creative strategy including the hiring of dci, a firm specializing in economic development and tourism marketing, and Little Red Bird (lrb), an advertising agency from Charlotte, North Carolina. The premise is to teach local companies how to think like direct marketers instead of manufacturers. Mrs. Reese stated the CCEDP is also in the process of developing a microsite which will focus on a talent acquisition strategy. The objective of a microsite with strong visual images is to introduce place and its amenities and to connect people with career opportunities through job search portals. The

5

microsite is intended to feature video production, marketing collaterals, and social media. Once the microsite is on-line, the advertising campaign will include strategically placed billboards for announcements.

To conclude, Mrs. Reese was appreciative of the City’s investment in the CCEDP which is crucial to their operations and the launch of this new strategy. She added the cost of rolling out the endeavor is estimated at $140,000. Mrs. Reese anticipated the new microsite would be up and running sometime between October and December 2017 with a launch party to be held in January 2018. Council received the information and took no action.

C. Public Comment: None

D. Consent Agenda:

ACTION TAKEN: Mayor Anthony presented the consent agenda. Mr. White made a motion to approve the consent agenda. The consent agenda and following items were unanimously approved:

1) Approval of the Minutes of the Regular Meeting of June 5, 2017

2) Approval of Special Event Permit Applications:

a. Mt. Calvary Baptist Church “Community Explosion”, requested date:

July 15, 2017

b. Host City Welcome, requested date: August 9, 2017

c. Walk for Hope 2017, requested date: September 23, 2017

d. 8th Annual Rhythm & Roots Run & Walk, 5K and 10K, requested date: October 14, 2017

3) Adoption of Fiscal Year (FY) 2016-2017 Budget Ordinance Amendment No. 19: Ordinance No. 46-2017

4) Approval of a Notice of Cancellation in the Regular Meeting Schedule of Shelby City Council for July 3, 2017

5) Approval of a Notice of Cancellation in the Regular Meeting Schedule of Shelby City Council for July 17, 2017

6

END CONSENT AGENDA

E. Unfinished Business:

1) Proposed Fiscal Year (FY) 2017-2018 Annual Operating Budget for the City of Shelby a. Consideration of Fiscal Year (FY) 2017-2018 Budget Ordinance:

Ordinance No. 41-2017

Mayor Anthony introduced the City’s proposed FY 2017-2018 budget ordinance and supplemental budget ordinance for Council’s consideration. The Mayor summed up that the budget is balanced and meets all the applicable requirements of the North Carolina Local Government Budget and Fiscal Control Act as previously presented by Mr. Howell. Also as required, the public hearing was scheduled and held on June 5, 2017. Mr. Bailey requested a change in the City’s approach to pay increases in the proposed budget. He expressed his concern over the widening of the turnover gap in public safety positions, particularly in the Fire and Rescue Department. Mr. Bailey suggested positions with a turnover rate under 10 percent be excluded from pay increases this year in order to attack and fix the turnover problem in the areas with a much higher rate reaching 20 percent. Pay increases for positions with less turnover can resume at some point in the future. Mr. Howell responded there is some validity to Mr. Bailey’s suggestion. However, the three-tiered employee pay increase, as proposed, takes into account both turnover and the current labor market. Employees will receive a 2 percent, 3.5 percent, or 4.5 percent increase based on these factors. Mr. Howell further stated the 2 percent increase applies to approximately 12 positions. The vast majority, which are mostly public safety positions, will receive 3.5 and 4.5 percent increases. This recommendation is in anticipation of the completion of the Pay and Classification Study currently in progress by Springsted and due to be completed by late summer. The study was planned to be completed mid-year in order to give Council adequate time to comprehend the data and findings and address the anticipated market differential next fiscal year. Mr. Bailey expressed his further concerns, stating the market is speaking to us now. He considers a 20 percent turnover rate an emergency situation and is not comfortable with how that works when employees with five years of experience are in top positions.

7

Mr. Howell addressed the high turnover rate experienced last year as an aberration due to retirements and separations to much larger municipalities. The typical turnover rate ranges between 7 and 8 percent. Mr. Howell cautioned against viewing the turnover rate as an emergency although the sentiment is appreciated. He explained the tiered employee pay increases this year are a measured approach to reward those positions that are furthest behind market and had the greatest turnover with as much as the City could afford in this budget. It was a well thought out plan to send a message to the remaining employees that the City was serious about raising their salaries to market rate. With regard to the completion of the pay and classification study, Mr. Howell is hopeful to come up with a funding plan that Council can live with, can be fair to employees, and can ultimately provide employee stability for the City. Next, Mr. Bailey requested confirmation as to the fund balance in the Natural Gas Fund. Mr. Howell responded the fund balance in the Natural Gas Fund is approximately $5 million. ACTION TAKEN: Upon a motion made by Mr. Amaya, City Council voted 4 (Hendrick, White, Causby, and Amaya) to 1 (Bailey) to approve and adopt Ordinance No. 41-2017 entitled, “FISCAL YEAR (FY) 2017-2018 BUDGET ORDINANCE”.

b. Consideration of Fiscal Year (FY) 2017-2018 Supplemental Budget Ordinance: Ordinance No. 42-2017

ACTION TAKEN: Upon a motion made by Mr. Amaya, City Council voted unanimously to approve and adopt Ordinance No. 42-2017 entitled, “FISCAL YEAR (FY) 2017-2018 SUPPLEMENTAL BUDGET ORDINANCE”.

2) City of Shelby Natural Gas System – US 74 Shelby Bypass Section C

Natural Gas Lines Relocation Project

Mr. Howell introduced Ordinance No. 47-2017 and Resolution No. 49-2017 for Council’s consideration. If approved, Ordinance No. 47-2017 would amend Ordinance 63-2016 which originally established a budget for this project. However, the original budget ordinance only authorized spending on the engineering and design phases. The amendment would appropriate $672,864 from the Natural Gas fund balance for construction purposes. In addition, Mr. Howell stated Resolution No. 49-2017, if approved, would formally award the bid for construction of natural gas line relocations directed by the North Carolina Department of Transportation (NCDOT) as a result of the construction of the new US Highway 74 Bypass, C Section to

8

Appling Boring Company, Inc. of Forest City, North Carolina. Mr. Howell explained that NCDOT has determined that because this project was funded prior to the change in State law affecting municipal utility relocations, the City must pay 100 percent of the cost. He is attempting to receive final determination from NCDOT as to whether future, unfunded sections of the new US Highway 74 Bypass will be handled in the same way. He added fortunately for the City the remaining areas affected by the new bypass construction have very little infrastructure owned by the City.

a. Consideration of a budget ordinance amendment for the City of

Shelby’s Highway 74 Bypass Section C Gas Lines Relocation Project: Ordinance No. 47-2017

ACTION TAKEN: Upon a motion made by Mr. White, City Council voted unanimously to approve and adopt Ordinance No. 47-2017 entitled, “A BUDGET ORDINANCE AMENDMENT FOR THE CITY OF SHELBY’S HIGHWAY 74 BYPASS SECTION C GAS LINES RELOCATION PROJECT”.

b. Consideration of a resolution awarding the bid for the Natural Gas

Lines Relocation in Section C of the Highway 74 Bypass Project: Resolution No. 49-2017

ACTION TAKEN: Upon a motion made by Mr. Bailey, City Council voted unanimously to approve and adopt Resolution No. 49-2017 entitled, “A RESOLUTION AWARDING THE BID FOR THE NATURAL GAS LINES RELOCATION IN SECTION C OF THE HIGHWAY 74 BYPASS PROJECT”.

F. New Business:

1) Consideration of an ordinance amending the Code of Ordinances, City of Shelby, North Carolina, by amending Section 18-1(d), by adding an exception to the ordinance regulating land clearing: Ordinance No. 48-2017

Mr. Howell introduced Ordinance No. 48-2017 for Council’s consideration. He explained the City’s Code of Ordinances outlines fire prevention and protection measures in the City of Shelby. Under those provisions set forth in the current Code, open burning for the purpose of land clearing and debris removal is prohibited in the City limits. Over time, the City has grown to include areas which are rural in nature consisting of large tracts of undeveloped land. As interest in these locations become attractive for commercial development, land clearing and debris removal to prepare the property for development becomes a significant issue from a cost standpoint.

9

With this limitation, a landowner, business, or developer must haul all debris from a site, which greatly increases the cost of developing the property. As a business-friendly decision and to provide an opportunity to apply, Mr. Howell recommended an amendment to the City’s Code by adding an exception that permits open burning under certain defined circumstances as approved by the Fire Chief. Both Mr. Howell and Chief Hunt discussed the specifics of the provision which are limited to areas in the corporate limits of the City that are significantly rural or undeveloped, and where it is determined that such activity will not endanger life, property, or pose an undue nuisance. The open burning will be limited in scope to land clearing and debris removal. Further discussion followed and included the authority and discretion relating to an appeal process, the permitting process to include the Division of Air Quality, and open burning permissible in Cleveland County. ACTION TAKEN: Upon a motion made by Mr. White, City Council voted unanimously to approve and adopt Ordinance No. 48-2017 entitled, “AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CITY OF SHELBY, NORTH CAROLINA, BY AMENDING SECTION 18-1(D), BY ADDING AN EXCEPTION TO THE ORDINANCE REGULATING LAND CLEARING”.

G. City Manager’s Report:

1) Mr. Howell reported that testing and flushing of all fire hydrants on the City’s water system has commenced. A weekly schedule of areas to be tested and flushed will be posted on the City’s website, the City’s Facebook page, and through other public notices. Testing hydrants is necessary to ensure that water quality, adequate flow, and pressure is available.

2) With regard to the East Gateway Enhancement Project at East Marion Street and East Dixon Boulevard, Mr. Howell reported the drainage and concrete work will begin in mid-July 2017 and the signal work will begin in the August-September 2017 timeframe. The contract date is September 14, 2017.

3) Mr. Howell updated Council on the Runway Overlay Project at the Shelby- Cleveland County Regional Airport, stating the Division of Aviation State Aid to Airports Program grant award will be based on the bids received on July 27, 2017.

4) Mr. Howell requested the Mayor and Council consider a date to schedule a

10

groundbreaking ceremony at the Hanna property for the Multi-purpose Recreation Complex Project.

H. Council Announcements and Remarks:

1) Mr. Hendrick expressed his appreciation to Fire Chief Hunt and Assistant Fire Chief McMurry for their time and effort in explaining their department’s need for the purchase of a new rescue truck.

I. Adjournment:

1) Motion to adjourn ACTION TAKEN: Upon a motion made by Mr. White, City Council voted unanimously to adjourn the meeting at 7:17 p.m.

Respectfully submitted, Bernadette A. Parduski, NCCMC, MMC City Clerk

O. Stanhope Anthony III Mayor

Minutes of June 19, 2017

11



Agenda Item: C-2

2) Approval of Special Event Permit Applications:

a. American Legion Walk for Veterans, requested date: August 9, 2017

b. Harvest Moon 5K, requested date: September 29, 2017

c. Don Gibson Theatre Annual Fundraiser, requested date: November 11, 2017

Consent Agenda Item: (Staff Resource, Bernadette Parduski, City Clerk) Summary of Available Information: Please read and offer changes as you deem necessary. Memorandum dated July 31, 2017 from Bernadette A. Parduski, City Clerk to Rick

Howell, City Manager Memorandums from Bernadette A. Parduski, City Clerk to Police Chief Jeff

Ledford, Fire Chief William Hunt, Assistant Fire Chief Todd McMurry, Parks and Recreation Director Charlie Holtzclaw, Public Works Director Danny Darst, Assistant Director Public Works Scott Black, Planning and Development Services Director Walt Scharer, and Director of Engineering Services Ben Yarboro

Special Event Permit Applications City Manager’s Recommendation / Comments

These events are in keeping with special event practices of the City. It is my recommendation that this item be approved by City Council at this time via the Consent Agenda.

12



Agenda Item: C-3

3) Approval of a resolution approving a Lease Agreement between the City of Shelby

and Creative Sign Service, Inc. for property located at the intersection of East Marion and Kemper Road: Resolution No. 50-2017

Consent Agenda Item: (Staff Resource, Bob Yelton, City Attorney and Rick Howell, City Manager) Summary of Available Information: Lease Agreement Survey Resolution No. 50-2017

City Manager’s Recommendation / Comments Resolution No. 50-2017 is presented for City Council consideration at this time via the Consent Agenda. If approved this resolution would approve a lease agreement between the City of Shelby and Creative Sign Service, Inc. allowing an existing billboard to remain on the City East Water Tank property at the intersection of East Marion Street and Kemper Road. This property was acquired by the City from Cleveland County several years ago for the purpose of constructing a water tank. It has recently come to light that the existing billboard is on the City property. I contacted Creative Sign Service and indicated to them that they would need a lease agreement with the City if the sign were to remain. The term of the lease is 10 years with a Consumer Price Index lease rate escalation every two years and 2 five year renewal options. It is my recommendation Resolution No. 50-2017 be adopted and approved by City Council at this time via the Consent Agenda.

32

RESOLUTION NO. 50-2017

A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF SHELBY AND CREATIVE SIGN SERVICE, INC.

FOR PROPERTY LOCATED AT THE INTERSECTION OF EAST MARION STREET AND KEMPER ROAD

WHEREAS, the City Manager along with the City Attorney was authorized to and has developed an agreement which sets forth the agreed upon terms and conditions for the lease of the property at the intersection of East Marion Street and Kemper Road to Creative Sign Service, Inc.; and, WHEREAS, City Council now desires to formally concur with and approve said Lease Agreement as described herein and attached to as ATTACHMENT A and made a part of this resolution by incorporation. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHELBY, NORTH CAROLINA: Section 1: The Lease Agreement for the denoted property at the intersection of East Marion Street and Kemper Road as prepared by the City Attorney is hereby approved. Section 2: The City Manager and City Clerk of the City of Shelby are hereby authorized and directed to execute said agreement on behalf of the City. Section 3: This resolution shall become effective upon it adoption and approval. Adopted and approved this the 7th day of August 2017. _________________________________ O. Stanhope Anthony III Mayor ATTEST: ___________________________________________ Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

39



Agenda Item: C-4

4) Approval of a resolution authorizing disbursement of travel and tourism funding for

Fiscal Year 2017-2018: Resolution No. 51-2017 Consent Agenda Item: (Staff Resource, Rick Howell, City Manager) Summary of Available Information: Resolution No. 51-2017

City Manager’s Recommendation / Comments I have reviewed the applications submitted by the eligible organizations for travel and tourism grant funding. Each year past grant recipients and other organizations that have expressed an interest are eligible to submit grant applications for these funds generated through the 3% room occupancy tax levied by City Council. Each is reviewed to determine if the purpose for use of funds is eligible under the statutes and city policy, the economic impact of the event(s), past use of funds, success of past events, financial participation by the entity, as well as other relevant criteria. Resolution No. 51-2017 is presented for consideration at this time. As you all know these funds are limited and the competition is significant. I have tried to balance requests for funding within the provisions of adopted City policy to ensure the greatest benefit is realized as set forth within the applicable NC General Statute. This revenue has grown some over the past few years with a 5 year average around $182,000 per year. Receipts for fiscal year 2017-2018 were budgeted at approximately $200,000. It has been City Council policy maintain a balance in reserve equal to the 5 year average of annual receipts in order to provide Council with flexibility to address needs for funding in this area as they arise. We do not at this point have that amount ($182,000) in reserve. The balance no stands at $145.000 and should increase to close to that amount by year end if estimates bear out. Nonetheless, it is safely anticipated that the recommendations in Resolution 51-2017 can be funded within the approved budget. It is my recommendation Resolution No. 51-2017 be adopted and approved by City Council at this time via the Consent Agenda.

40


A RESOLUTION AUTHORIZING DISBURSEMENT OF TRAVEL AND TOURISM FUNDING FOR FISCAL YEAR 2017-2018

WHEREAS, the City of Shelby through the adoption of the 2005 Strategic Growth Plan

recognizes the need to promote economic development efforts throughout the City; and

WHEREAS, City of Shelby currently levies a 3% occupancy tax in accordance with

Resolution 69-97 and NC Session Law 1997-361 for the purpose of generating revenue for the

promotion of travel and tourism within the City; and

WHEREAS, said occupancy tax proceeds are restricted for use by the noted resolution

and session law for travel and tourism promotion and tourism related expenditures; and

WHEREAS, the City Manager has determined that sufficient funding has been

appropriated by Council for the fiscal year beginning July 1, 2017; and

WHEREAS, the following organizations have submitted applications and requests to the

City Manager and it is his determination that each is eligible under the city policy and the

applicable general statute and therefore recommends that the following amounts be awarded:

1. American Legion World Series Committee $50,000.

Marketing and Event Support

2. Earl Scruggs Center $30,000.

Marketing and Exhibit / Event Support

3. Don Gibson Theatre $30,000.

Marketing and Concert Sponsorship

4. Cleveland County Travel and Tourism $15,000.

Marketing

5. Foothills Merry Go Round Festival $15,000.


41

Resolution No. 51-2017 August 7, 2017 Page 2

6. Cleveland County Arts Council – Art of Sound Festival $15,000.


7. Uptown Shelby Association $15,000.

Uptown Public Sculpture Project

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY

OF SHELBY, NORTH CAROLINA as follows:

1) City Council authorizes disbursement of local occupancy tax funds for the preceding

organizations.

2) Authorizes the City Manager to obtain activity reports from each funded organization

detailing the use of said funds. The same shall be reported to City Council following

the close of the fiscal year ending June 30, 2018.

This Resolution shall become effective upon its adoption and approval.

Adopted and approved this the 7th day of August 2017.

____________________________________ O. Stanhope Anthony, III Mayor ATTEST: _________________________________________ Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

42



Agenda Item: C-5

5) Approval of a resolution approving an agreement for a Community Development Block Program Economic Development Grant by the North Carolina Department of Commerce: Resolution No. 52-2017

Consent Agenda Item: (Staff Resource, Justin Merritt, Finance Director) Summary of Available Information: Memorandum dated July 31, 2017 from Justin Merritt, Finance Director to Rick

Howell, City Manager Letter dated July 6, 2017 from NC Dept. of Commerce Grant Agreement Resolution No. 52-2017

City Manager’s Recommendation / Comments Resolution No. 52-2017 is presented for City Council consideration and approval at this time via the Consent Agenda. This agreement sets forth the terms and conditions which the City must follow in order to access this money. This $3,000,000 grant is part of the approved funding stream for the Westside Sewer Improvement Project that will serve the new Clearwater Paper facility on Washburn Switch Road. This $9,000,000 project is funded with a mix of grant and City($3,000,000), Golden Leaf Foundation($2,000,000), NC Commerce IDF Fund($1,000,000) in addition to the CDBG($3,000,000) covered in this agreement. I do wish to note that a copy of the agreement and associated documents are included and I encourage you to look at them. There are numerous requirements that the City staff must ensure are met and are held accountable for by the State of NC. It is my recommendation Resolution No. 52-2017 be adopted and approved by City Council at this time.

43

To: Rick Howell, City Manager

From: Justin Merritt, Finance Director

Date: July 31, 2017

Subject: NCDOC CDBG Clearwater Paper Company Sewer Project Grant

Background:

As you know, the City of Shelby has applied for several grants to assist with the

extension of water and sewer infrastructure to the site of the Clearwater Paper expansion

project, previously known as Project Grizzly. One such application was to the North

Carolina Department of Commerce Community Development Block Grant Program for

Economic Development, in the amount of $3,000,000. These funds have now been

awarded and I have attached a resolution that will accept the funds and allow for proper

execution of the grant agreements.

Recommendation:

The recommendation from staff is to approve the attached resolution.

44


A RESOLUTION APPROVING AN AGREEMENT FOR A COMMUNITY DEVELOPMENT BLOCK PROGRAM ECONOMIC DEVELOPMENT GRANT BY

THE NORTH CAROLINA DEPARTMENT OF COMMERCE

WHEREAS, The North Carolina General Assembly has determined that it is the policy of the state to stimulate economic activity and to create new jobs for the citizens of the State by affording grants to local governmental units for infrastructure for existing or new or proposed buildings, subject to N.C.G.S. 143-B-437.01, 143B-472.127, 143B.143.128 AND NCAC 01I.0101;and WHEREAS, the North Carolina Rural Infrastructure Authority will administer the Community Development Block Grant assistance under Title I of the Housing and Community Development Act of 1974, as amended (P.L. 93-383) authorized by Department of Commerce ; and, WHEREAS, the City of Shelby has submitted such a grant application to the North Carolina Department of Commerce and has been awarded a $3,000,000 grant; and, WHEREAS, it is the desire of the Shelby City Council to accept and execute this grantee acknowledgement and agreement, in the amount of $3,000,000 for the Clearwater Paper Company Sewer Project, Grant number CDBG-16-E-2909, and is approved for submission to the grant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHELBY, NORTH CAROLINA:

Section 1. The Community Development Block Grant Program-Economic Development grant agreement and award, in the amount of $3,000,000 for the Clearwater Paper Company Sewer Project is approved for submission to said grant agency.

Section 2. The Mayor of the City of Shelby or the City Manager of the City of Shelby, or his designee, and successors so titled, is hereby authorized and directed to furnish such information as the appropriate State agency may request in connection with the project, to make the assurances as contained above, and to execute such other documents as may be required in connection with the agreement. Adopted and approved this the 7th day of August 2017. ____________________________________


ATTEST: _________________________________________ Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

55



Agenda Item: C-6

6) Approval of a resolution approving an agreement for a Rural Economic Development Agreement from the Industrial Development Fund Utility Account by the North Carolina Department of Commerce: Resolution No. 53-2017

Consent Agenda Item: (Staff Resource, Justin Merritt, Finance Director) Summary of Available Information: Memorandum dated July 31, 2017 from Justin Merritt, Finance Director to Rick

Howell, City Manager Letter dated July 12, 2017 from NC Dept. of Commerce Rural Economic Development Grant Agreement Resolution No. 53-2017

City Manager’s Recommendation / Comments Resolution No. 53-2017 is presented for City Council consideration and approval at this time via the Consent Agenda. This agreement sets forth the terms and conditions which the City must follow in order to access this money. This $1,000,000 grant is part of the approved funding stream for the Westside Sewer Improvement Project that will serve the new Clearwater Paper facility on Washburn Switch Road. This $9,000,000 project is funded with a mix of grant and City($3,000,000), Golden Leaf Foundation($2,000,000), CDBG($3,000,000) in addition to the NC Commerce IDF Fund($1,000,000) covered in this agreement. I do wish to note that a copy of the agreement and associated documents are included and I encourage you to look at them. There are numerous requirements that the City staff must ensure are met and are held accountable for by the State of NC. These requirements are primarily tied to the creation of 180 new jobs by Clearwater Paper. It is my recommendation Resolution No. 53-2017 be adopted and approved by City Council at this time.

56

To: Rick Howell, City Manager

From: Justin Merritt, Finance Director

Date: July 31, 2017

Subject: NCDOC Clearwater Paper Company Sewer Project Grant

Background:

As you know, the City of Shelby has applied for several grants to assist with the

extension of water and sewer infrastructure to the site of the Clearwater Paper expansion

project, previously known as Project Grizzly. One such application was to the North

Carolina Department of Commerce Rural Infrastructure Authority’s Industrial

Development Fund, in the amount of $1,000,000. These funds have now been awarded

and I have attached a resolution that will accept the funds and allow for proper execution

of the grant agreements.

Recommendation:

The recommendation from staff is to approve the attached resolution.

57


A RESOLUTION APPROVING AN AGREEMENT FOR A RURAL ECONOMIC DEVELOPMENT AGREEMENT FROM THE INDUSTRIAL DEVELOPMENT FUND

UTILITY ACCOUNT BY THE NORTH CAROLINA DEPARTMENT OF COMMERCE

WHEREAS, The North Carolina General Assembly has determined that it is the policy of the state to stimulate economic activity and to create new jobs for the citizens of the State by affording grants to local governmental units for infrastructure for existing or new or proposed buildings, subject to N.C.G.S. 143-B-437.01, 143B-472.127, 143B.143.128 AND NCAC 01I.0101;and WHEREAS, the North Carolina General Assembly has empowered the North Carolina Rural Infrastructure Authority to review applications for and, where appropriate, authorize such Utility Account grants and, under N.C.G.S. 143B-472.126 and .127, the General Assembly authorized Commerce to administer such grants; and, WHEREAS, the City of Shelby has submitted such a grant application to the North Carolina Rural Infrastructure Authority and has been awarded a $1,000,000 grant; and, WHEREAS, it is the desire of the Shelby City Council to accept and execute this grantee acknowledgement and agreement, in the amount of $1,000,000 for the Clearwater Paper Company Sewer Project, Grant number U-476, and is approved for submission to the grant agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHELBY, NORTH CAROLINA:

Section 1. The Rural Economic Development Grant Agreement-Industrial Development Fund Utility Account, in the amount of $1,000,000 for the Clearwater Paper Company Sewer Project is approved for submission to said grant agency.

Section 2. The Mayor of the City of Shelby or the City Manager of the City of Shelby, or his designee, and successors so titled, is hereby authorized and directed to furnish such information as the appropriate State agency may request in connection with the project, to make the assurances as contained above, and to execute such other documents as may be required in connection with the agreement. Adopted and approved this the 7th day of August 2017. ____________________________________


ATTEST: _________________________________________ Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

75



Agenda Item: D-1 Unfinished Business:

1) Consideration of appointments to City advisory boards and commissions:

a. Shelby Cleveland County Regional Airport Advisory Board

b. Shelby Housing and Redevelopment Advisory Board

c. Alcoholic Beverage Control Board

d. Isothermal Planning and Development Commission Board Unfinished Business Item: (Staff Resource, Bernadette A. Parduski, City Clerk) Summary of Available Information: Memorandum dated July 31, 2017 from Bernadette A. Parduski, City Clerk to Rick

Howell, City Manager Shelby Cleveland County Regional Airport Advisory Board 2017 Shelby Housing and Redevelopment Advisory Board 2017 Alcoholic Beverage Control Board 2017 Applications for Jim Martin and Sallie Craig Copy of letter to Mayor Stan Anthony from the Isothermal Planning and

Development Commission City Manager’s Recommendation / Comments Volunteers are an essential part of the work the City performs each year. As always this is just a reminder that we all should work to recruit qualified and quality people to serve whenever possible. Solicitation of both qualified and interested citizens to serve on these important advisory boards remains a priority for 2017. I would challenge each of you to recruit viable candidates that possess the knowledge and willingness to serve during the coming months. I cannot emphasize enough the importance of appointing quality people to these very important citizen boards and commissions. It is incumbent upon Council as the appointing authority to ensure members are responsible members of the community who will make decisions that reflect the established and recognized values of the City. These appointees after all reflect upon Council as the appointing authority as well as the City as they conduct business month to month.

76



Agenda Item: E New Business None Agenda Item: F City Manager’s Report

Agenda Item: G Council Announcements and Remarks

1) Recognition of City Clerk Bernadette A. Parduski awarded her second designation as North Carolina Certified Municipal Clerk (NCCMC) by the School of Government of the University of North Carolina at Chapel Hill and the North Carolina Association of Municipal Clerks

92



H. Closed Session:

1) To approve the Minutes and General Account of the Closed Session of June 5, 2017

2) To prevent the disclosure of information that is privileged or confidential pursuant to the law of North Carolina, not considered a public record within the meaning of Chapter132 of the General Statutes, pursuant to General Statute 143-318.11 (a) (1)

I. Adjournment:

To adjourn a meeting of City Council, a majority of the Council members must vote for a motion to adjourn.

1) Motion to adjourn

95

shelby city council city hall council chamber regular

Documents