NEW BERN BOARD OF ALDERMEN

CCTA WATCHDOG REPORT FOR NEW BERN BOARD OF ALDERMEN

REGULAR MEETING OF 11 JUNE 2013

1. Meeting opened by Mayor Lee Wilson Bettis Jr. (yes, he returned after missing 4 BOA meetings. However, he did not say whether or not this was a one time appearance or that he will attend consistently until the end of his term.). Prayer assigned to Alderman Taylor who invited Rev. Andrew Cox to conduct the opening prayer. Pledge of Allegiance.

2. Roll Call. All members were present except for Ald White. He was excused to attend a graduation ceremony.

Agenda item 3. Request and Petition of Citizens.

For the first time since it's institution, the Mayor did not read the public admonition for speakers to limit their comments to 4 minutes, that the board members would not be responding to any public comments and that the board may/may not choose to ever give them a reply!!

a. Ms. Stevie Bennett of National Ave., asked for a list of the addresses of properties which have liens against them along with the amount of the lien; same for those which have violations assessed & their amounts. {Reporter's note: I would encourage the public to view the June 4th Planning & Zoning Board meeting on the City TV Ch 3 or on the city website @ http://www.newbern-nc.org for edification, noting the changes that Development Services Dept staff are making which will negatively affect income to the city}. She requested the sum total of spending toward the city's Branding of New Bern Campaign as well as an accounting of what the $75,000 will be spent for during its implementation phase. She gave a brief on how the city staff presented this proposal to the Board: that it was to be done in two phases, requiring $82,000. She has now discovered that in March 2013, the city diverted $10,000 from the General Administration budget of both the office supplies/materials line item and the postage line item ($5K from each), (per an email I sent to her that I received on June 4, 2013, in response to separate budget questions I posed first to the City Manager's office, then to Ald Outlaw, who forwarded it to the Accounting Dept on May 23, 2013). And now, she continued, the city asks for another $75,000 from the taxpayers. If this is granted, the total contribution toward the project is $167,000, which is $85,000 more than initially proposed to this board. She asked "how many on this board would have voted to approve this if they had know what the total costs for this effort would end up being?"

She requested the status of her previous request to have a bulletin board constructed and installed at the bottom of the steps of City Hall, to allow those citizens who could not climb those steps to be informed of public city meetings and other government body events. On the subject of the proposed capital project of constructing an elevator for City Hall, she asked why it was going to cost $60,000 for just the architectural design fee? Then she asked if it would be shelved just as the Preservation Plan was. She remarked that it had been 1 year & 8 months since that plan had been finalized yet nothing had been done to implement it. She then asked the board if this would be the same fate for the FY2014 budget line item request for the $75,000 for the implementation phase of the Branding Campaign. Ms. Bennett also asked what would be done with the current tax office space in the Dunn Bldg and it's $100,000 of budgeted monies since it is now to be under the Craven County government auspices. Her final comment was to say that she thought it ridiculous that the city's Land Use ordinance has not been rewritten/revised since 1992.

*Back-story of the City of New Bern Branding Campaign:

> First of all, from the June 26, 2012 BOA meeting minutes regarding the Branding Campaign that Ms. Bennett reminded the board of and asked the details of:

Agenda item "10.

Approve Budget Amendment for Branding Campaign.

Mike Epperson, City Manager presented a power point presentation to the board. In January 2011, the Board adopted strategic goals and objectives for the City of New Bern, one objective of which was "Market ourselves for smart development." This objective was refined during the Board retreat held earlier this year when the Board adopted the objective "Complete a branding campaign for the City of New Bern to assist with recruiting businesses, residents and tourism." Community branding is a process which, using valid research and data collection, helps a community discover its greatest assets and create a platform in order to be more competitive. A working group including representatives from the City, Tryon Palace, Swiss Bear, the Chamber of Commerce, Craven County Economic Development, the Convention Center and Coastal Carolina Regional Airport evaluated potential consulting partners and believes that North Star Destination Strategies is the best firm to help facilitate this branding process. North Star has proposed a two-phase process, and we are asking the Board to approve funding phase one at this time, at a cost of $48,000. Weyerhaeuser Land Development Company is interested in contributing $2,000 toward this effort and is willing to work with local businesses to potentially develop partners to fund phase two, at a cost of $34,000. Alderman Bucher stated the goal for branding should reflect "who we are and why would people relocate as well as bring businesses to New Bern". New Bern is not well known nationally, but only in the state of North Carolina. He has discovered this as he has traveled around the world.

Alderman Bengel made a motion to adopt the budget ordinance amendment for the branding campaign, seconded by Alderman White. Upon a roll call vote, the motion carried unanimously." "

> Per a Nov 21, 2012 interview of NB Public Information Officer Colleen Roberts by the NB Sun Journal, this is who was on the Branding Advisory Committee: "the city's aldermen and staff; representatives from the Convention and Visitors Center, Coastal Carolina Regional Airport, Tryon Palace, Swiss Bear Downtown Development Corp, NB Riverfront Convention Center, Committee of 100, and the NB Chamber of Commerce".

> From a Jan 13, 2013 NB Sun Journal article: {boldface throughout this section is reporter's emphasis} "A new phrase was coined to describe New Bern during the first phase of the city's branding process: "coastal river culture." Adam Winstead, project manager of the North Star Destination Strategies consulting firm out of Tennessee, explained the first phase of the branding concept to aldermen Tuesdaynight. The Board of Aldermen agreed in June to pay North Star $48,000 for the first phase of the study and $34,000 for the second "creative" phase. City Manager Mike Epperson said he wants a new brand that would attract visitors, residents and businesses to New Bern. Epperson, city management staff and Alderman Sabrina Bengel had a webinar conference with Winstead on Jan. 17 about the phase one study that lasted three hours because of the detail and amount of information in the plan. {Reporter's question: why only 1 alderman at this conference, who happens to be the one who motioned for this campaign to be funded?}. The first phase focused on the attributes of the city. The consulting firm did a survey of the community, receiving 283 responses, and a survey of Raleigh and Greenville, getting 223 responses, to find out more about the city, residents and businesses and what perception other cities have of New Bern.

The surveys showed the biggest selling point for New Bern is its history, Tryon Palace and the North Carolina History Center; also, its proximity to the coast, downtown New Bern and the diversity of the people, Winstead said. Other attributes include a strong manufacturing and industrial community; calm, relaxed atmosphere; and the potential for growth, he said. A "branding barometer" the consulting firm arrived at through its research showed a graph where people are very positive about living in New Bern and visiting the city. However, conducting business in New Bern was not as high on the meter, Winstead said. The city faces challenges attracting young professionals and providing jobs. {Reporter's comment: Ald White has mentioned this at many board meetings}. The perception of the community is that the city is "not very friendly" with high utilities and the lack of shopping opportunities, Winstead said. {Reporter's comment: this is news to us?}. The consulting firm recommended starting an economic development plan (which city staff is working on), adding tours of the city and a better night life. One of the best ways to attract business is by improving blighted areas in the city (which the city is also working on), he said. {Reporter's comment: since the city is already doing these things that NStar is recommending, and is aware of obstacles that NStar is pointing out, it appears we are paying $82,000 for confirmation that what we are doing is correct}.

Bengel said, "...the city has limited marketing funds and branding would help spread the word about what the city offers".

Alderman Johnnie Ray Kinsey said, "...he believes promoting the unique history of the city will give it the most for its money." "

>From a March 31, 2013 NB Sun Journal article: "New Bern is preparing to embark on the second phase of a plan to show off the city's attributes after partnering with four agencies to start the creative portion of a new community brand. Colleen Roberts, New Bern's public information officer, said the city has partnered with The Committee of 100, the New Bern Area Chamber of Commerce, Swiss Bear Downtown Development Corp. and the Tourism Development Authority to identify and establish a brand that will guide current and future marketing efforts for the greater New Bern area. {Reporter's question: what happened to participation by representatives from Coastal Carolina Regional Airport, NB Riverfront Convention Center, Tryon Palace and Convention and Visitor's Center? Are any of these organizations contributing any money; if so, how much? Any of those Ward 1 MSD funds going to be contributed?}

The city hired North Star Destination Strategies of Nashville, Tenn., last summer to undertake the branding initiative. Branding initiatives typically encompass two phases: research, and then creative development and implementation, Roberts said in a statement. {Reporter's question: If implementation is included, why must the taxpayer's fork over this newly requested $75,000 in the FY2013-2014 budget for what City Mgr Epperson states is for implementation?}. The contract for phase one of the community brand was $48,000. The phase two contract is $34,000. Phase two will encompass all of the artwork, imagination and creative design that will be used to implement the brand. The phase two contract has been signed and should begin later this month, Roberts said. According to North Star, phase two is most successful when the community participates. The five agencies included in the partnership will receive a standard set of logo options, color palette, stationery design, business cards, and PowerPoint templates, slogan development and recommendations for a community-wide portal, Roberts said. The partners also have the option to have North Star create custom items for their agencies, such as design of environmental/outdoor applications, signage, economic development packages, marketing materials, a new website, mobile applications, social media design, etc., Roberts said. {Reporter's questions: What becomes of the Wayfinding Sign program that the city & Swiss Bear had already begun working on, as reported in July 17, 2012 BOA Work Session minutes, which is funded in part by City of NB with in-kind services estimated to be $60,000? Did we just waste the taxpayers state contributions of $100,000, since this project was funded by the DOT grant; or the as yet to be published promised contribution of an unknown amount from the Tourism Development Authority? Is the city needing the $75K for an options package vice implementation? Why can't the city's Public Information/IT Dept handle much of the items in the options package, or even New Bern print and sign companies? Especially as we are currently paying at least $20K for an out-of-town Raleigh NC attorney to litigate the suit former alderman Raynor brought against the city, have paid $20K to 2 Raleigh lobbyists and a Washington DC firm of attorneys & economists $343K to litigate the intervention against the merger of Duke-Progress, and are currently paying the Nashville TN North Star Destination $92K? Is both our county and our town so incompetent, inept, incapable and/or unprofessional that we can't support our own? Perhaps not using our own resources is part of our problem?}. Mike Epperson, city manager, said community branding in New Bern is going to happen. "And we're excited to have the community's support in this important process," he said in a prepared statement. "This partnership represents a promise. A promise that in everything we do, every story we tell, every effort we make to increase residents, visitors, and businesses...we will speak in one community voice."

For phase two, a representative from each organization will participate as part of a design review team that will work closely with North Star. Phase two is expected to last approximately three months, and then the partner agencies will move forward with implementation of New Bern's new community brand, Roberts said.

Susan Moffat-Thomas, executive director of Swiss Bear, said the idea of branding started several years ago when representatives of different nonprofit agencies met monthly to discuss what they were doing and their future plans. The group also talked about branding and how it could be a positive asset for New Bern, she said. But the group did not have the financing to go after a branding campaign, Moffat-Thomas said. When the city hired Epperson as city manager, the idea was pursued again and presented to him and Alderman Sabrina Bengel, who both thought branding had positive attributes for the city.So the city decided to fund the first phase, Moffat-Thomas said. "It will provide an opportunity to market the city and county, in general, for new businesses and put our city on the map, attracting visitors," Thomas said. "Everything is so competitive now you have to work at marketing a city. I really hope this will do that. I'm looking forward to what the outcome will be." " {Reporter's comment: NStar has stated that this is NOT a marketing plan. The city is financing non-profit org's ideas as well as granting them tens of thousands of dollars of special appropriations taxpayer money on a recurring annual basis. Recall from the May 23rd budget workshop that the city will find the need to raise taxes 2 to 3 cents and increase utilities rates by 2015. The city presented a budget for approval with appx 175 items asking to be funded. Not only did it show no cuts to the public, but it added $10,000 to the advocacy/lobbying activities line item for Allies for Cherry Point's Tomorrow. ACT used to be under special appropriations until this budget}.

> Reporter's Note: The Tourism Development Authority (TDA) is a Craven County government agency. The Committee of 100 is a county organization concerned with fostering economic development within the entirety of Craven County. The only money contributed from Craven County for this Branding Campaign that I have been able to track down is a $2,500.00 contribution from the Committee of 100 that City Mgr Epperson announced during the BOA meeting of 15 Sep 2012. I don't know the funding source for this contribution. At this BOA meeting of June 11, Mayor Bettis reappointed Ward 1 Alderman/mayor pro tem Bengel to the CCTDA.

b. John Serumgard announced the Elks Lodge #764 will be conducting a Flag Day Ceremony at the Union Point Park gazeebo on Sat., June 15 @ 11am. He highlighted that the 2nd MAW Band, the Young Marines, and the Jr. NROTC color guard from New Bern High School would be performing.

c. Heather French spoke her opinions that the board/city should have ALL the facts and carefully consider whether the Pole Dancing Competition was appropriate to be held in our town and whether pole dance classes should be offered in the city's gymnastics or dance studios that cater to young people. She described the events at the competition, which was held at the Riverfront Convention Center and which she attended, as being sexually provacative. Ms. French also challenged the Sun Journal newspaper's portrayal of this event as family-friendly and called it misleading. She rhetorically asked if the pole dancing was to be considered as a family-friendly gymnastics event and athletic competition, why weren't the contestants wearing the traditional leotards and performing under full lighting vice the dim spots and suggestive rock music? She also observed dancers from two Havelock "gentlemen clubs" roaming the halls of the convention center and handing out cards to be redeemed for free lap dances. Her primary objection is that these type activities too easily influence young girls into pursuing a harmful lifestyle of working in strip clubs and sliding into drug addiction.

Agenda item 4. Conduct Public Hearing and Adopt Budget Ordinance for FY2013-14 Budget.

"The required public hearing for the proposed budget for FY2013-14 needs to be held, after which the Board is requested to adopt the annual budget ordinance." City Mgr Epperson said before the public hearing begins he would like to tell of 2 changes that had occurred to the Governing Board's budget category since Mayor Bettis had last seen the budget: the Allies for Cherry Point's Tomorrow (ACT) budget had been increased by $10K andOnly one person spoke, Edwin Vargas, who is a candidate for mayor; and, the consolidated line item of merging the volunteer firefighters with the city Fire Dept budget. Mayor Bettis then stopped Mr. Epperson because he has been made aware that there were 3 (vice 2) petitions of citizens requests and he sees Stevie Bennett's hand waving in the audience to draw his attention to Ms. Mary Randolph, who wishes to present her petition.

Ms. Randolph asks for somebody from City Hall and/or Public Works to come out to her house and notice that her property is sinking, she is still being flooded by a nearby canal and she had to pay to get her property cleaned up recently while her neighbors surround her with their unkempt properties. She will refuse to pay her taxes if the city does not help her with these issues.

Mr. Epperson continues and restates the two budget additions. Finance Dept Dir Fiaschetti steps up to the podium and says that some debt service with utilities has come down. One is a reduction in the MSD funded Streetscape project due to receiving a lower interest rate.

Mayor Bettis asks Mr. Fiaschetti to confirm that there is now 80 days cash on hand in all utilities funds. Mr. Fiaschetti clarifies that the Water Fund has 81 days, the Electric Fund has 50 days, and the Sewer Fund has 81 days. He continues by reminding that the goal was 90 days, but emphasizes that the current status is a significant improvement over the past.

The public hearing was begun at 7:30pm. The only citizen to speak was mayoral candidate Edwin Vargas, 230 Attmore Drive. He presented an 8-minute power-point on the last 5 years of the city's budgets. He showed that there had been significant increases between fiscal years and considered and presented data where capital expenditures were both included and excluded. He asked where and what are the significant budget cuts to this budget to preclude raising taxes for the citizens to see? He noted that both Havelock and Craven County had made cuts in their budgets, with the county reducing taxes one-quarter cent, prompting him to ask the board, "where have the cuts been made for the city of New Bern budget" or taxes reduced? He recommended the city task the departments to present their General Fund equipment list by prioritizing these items as "need to have, must have, and like to have". He also said the city should avoid funding large expenditure items such as the Emergency Ops Center - Ald Bengel & Outlaw voted no to this expenditure. Also, the Duke-Progress merger intervention litigation, which was appx $363, and for which the citizens have received no board briefing as to what they can look forward to in the way of lower electric bills or what other benefits were gained for this large expenditure which was funded via more than 20 closed sessions) during the budget year. Another suggestion from him was to cut special appropriations amounts by 10%. He believes the data shows that if his recommendations were acted upon and these savings made in the current FY2013 budget, fees would have been reduced or eliminated beginning

July 1, 2013 for leaf & limb, garbage, city pool daily use, convenience fees for on-line payment services, cemetary charges for weekends & holidays, or services from the Development Services Dept.

After the closing of the public hearing, Ald Bucher moved to adopt the budget but received no second. After a long pause, Mayor Bettis asked "can I second stuff?" City Atty Davis said no. Ald Bengel made an alternate motion to table the vote until the next regularly scheduled meeting. Her motion received no second either. Ald Outlaw said he would like to enter a substitute motion to schedule another budget workshop before the next meeting, but that he was not indicating that he disapproved of the entire budget. Ald Bengel said she had additional questions on a couple things, which is why she wanted to table the vote until next week. Mayor Bettis asked Mr. Davis for direction; he replies there are not motions on the floor, prompting Mayor Bettis to exclaim "Hey, let's have a workshop!" He asked Ald Outlaw if he has a list of concerns? It would be a great idea if the board members who have questions/concerns to write them down so staff has time to prepare their responses. Ald Bengel then motions for a special called meeting to conduct a budget workshop next Tuesday night at 6 pm. Ald Outlaw seconded. Then Ald Bucher says, "Some of us have other things to do in our lives. Next Tuesday at 6:30pm is a National Night Out meeting at the Police substation in the Mall that I was planning on attending". Ald Bengel asks if Monday the 17th is preferrable? Mr. Davis states the board must give 10 days notice to conduct another budget hearing, which is required prior to adoption of a budget. Changes to the staff would need to be given the 14th. Now, no one is available on Wednesday nights except Mayor Bettis and Mr. Epperson says he will be out of town on Thursday and Friday. There were a couple of alternatives thrown out. Mr. Epperson suggested the board discuss their concerns tonight so they don't "get bogged down with seven different ideas at the next meeting" for this budget. The board decided to discuss their concerns, which amounted to being over continued using of the utility enterprise funds (Outlaw) and the merging of the volunteer firefighters with the city Fire Dept (Bengel & Outlaw).

Ald Outlaw said he had recently talked with the NC Dept of Insurance about the threat of raising fire insurance rates as a result of the city's number of fire stations and response times. His main concern is about water, sewer, and electric funds and especially water and sewer funds and all the transfers to the General Fund. He claims that with a new fire station or stations, those water and sewer rates could go higher. His second concern is with mutual aid calls out of Thurman Rd, how much equipment do we really need? If the money is not there already, the city will have to raid the water and sewer funds. The volunteer firefighters always save the city money; therefore, we would be remiss in not discussing as to how the volunteers are treated regarding their benefits and the possibility of terminating them by merging them with the city's Fire Dept. He would prefer to discuss a plan B regarding building any new fire stations and sticking the new board with a 2 to 3-cent tax increase.

Mayor Bettis asks, "So you want an inspector from the Insurance Bureau" at this workshop? Ald Outlaw replies that he can answer most of the questions, based on his conversations with that department. Ald Bengel has concerns about the merging of the budgets of the volunteers with the city Fire Dept. She said she did not necessarily need a workshop but she did need questions answered. Mr. Epperson calls Fire Chief Bobby Aster to the podium and they have a lengthy discussion about the budgets merging. Afterward, Ald Bengel says her second concern is about Finance Dir Fiaschetti's presentation tonight on utilities budgets changes and savings. She needs time to digest that information and understand the debt and funds transfers - that she doesn't necessarily need a workshop now. Mayor Bettis asks each board member if they have additional questions or are ready to vote. Ald Taylor is ready to vote. Ald Bucher says, "I made the motion. We spent many hours during May in budget workshops. All of us had an opportunity to digest and understand. I don't need a another workshop". Ald Kinsey says Ald Outlaw covered the things he had in mind. He does want to make sure that the info and numbers are accurate from Epperson and Fiaschetti. Ald Outlaw says he's concerned about the timetable concerning the capital improvements projects. Mr. Epperson reminds him that they talked about having a July workshop focusing on those.

After Ald Outlaw and Ald Bengel begin discussing their concerns over the volunteers firefighters' benefits and funds, Chief Aster is called up again to discuss the various funds. After some time on this, Ald Bengel motions to rescind her motion for a special called meeting on the budget. At 8:15pm, Ald Bucher motions to adopt the budget with Ald Kinsey seconding. During discussion, Ald Outlaw interjects a substitute motion to discuss the budget and for approval to be at the next meeting in June. Ald Bengel says she wants to spend some time with Keith (Fiaschetti) over the next day or 2 talking over her concerns. The vote on Ald Bucher's motion is Bengel, Taylor & Outlaw voting "No", Bucher, Bettis and Kinsey "Yes". So there is a tie, motion is defeated. Ald Outlaw motions to discuss and approve the budget at the June 25 meeting, Ald Bengel seconds. Voice vote passes it.

Agenda item 5. Adopt Ordinance to Amend Grant Project and Close Out Brownsfield Assessment and Cleanup Grant.

"A special revenue project fund was established for the Brownfields Assessment and Cleanup Grant, which was funded entirely with a $400,000 grant from the US Environmental Protection Agency. The City has fulfilled its obligation, all accounting is complete, and the project has been closed by the grantor. The final cost of the project was $38,904.16 less than was originally anticipated. The amendment will close the project fund and adjust the budgets to the final activity totals." Passed by unanimous vote.

Agenda item 6. Adopt FY2012-13 Budget Ordinance Amendment for General, Water, Sewer and Electric Funds.

"The City's practice of the Utility Funds reimbursing the General Fund for administrative expenses and shared service costs is a normal course of business with municipalities and is an accepted practice. However, the City does not use an objective measurement process to determine that these costs are reasonably allocable to the Utility Funds. Therefore, to ensure the material correctness of individual funds, the City is required to develop a documented cost-allocation plan for implementation in the current fiscal year budget and future budgets. This new plan has been incorporated into the FY2013-14 recommended budget. To incorporate it in the current year's budget for FY2012-13, budget amendments are required as reflected on the proposed budget amendment."

Ald Outlaw directs his questions/comments to Mr. Fiaschetti: in other words you're turning right around and increasing transfers, doing some creative accounting and expensing some things to the water and sewer funds that really shouldn't be in order to not touch the electric fund, and for which you should not be doing in the first place? Now you've got a decrease of $375K in the water fund, so you're taking out $873K out of the sewer fund and increasing the General Fund? Mr. Fiaschetti responds that the electric system has a cap of 3%...{Reporter's comment: They go back and forth like this about 3 times. Mr. Fiaschetti would never give Ald Outlaw the simple "yes" or "no" answer, preferring instead to repeat his justification behind the data}. Ald Outlaw cuts him short, saying you're taking $4.2 million more out of water and sewer so you won't use electric. Mr. Epperson interjects by explaining that the city was required to come up with an objective formula for cost allocation. He continues, "none of us who were not involved with the previous methodology didn't have a problem understanding this. We used input and received a blessing from staff, Local Government Commission, local auditors. If we didn't fix this we knew we were promised problems next year with our auditors. We did this under a constrained timeframe. I'm not sure that it's sustainable over time. If the Board doesn't want this, give staff direction on what you want us to do."

Increased transfers to the general fund from the water and sewer divisions will be $2,259,957, leaving operating costs at $473,783 for water and $537,486 for sewer.

Ald Outlaw states he wants the fund balance to stay stable. He then asked, "if we had a 1 1/2% rate increase, how long can you offset a rate increase using rate stabilization?" Ald Bucher asks, "why weren't these questions asked in the workshops?" {Reporter's comment: my response would be because Mayor Pro Tem Bengel ran a tight agenda and allotted only 3 hours for each workshop. As it was, the board only got through half of the items on the first workshop agenda. This left the second workshop needing to cover half of the previous meeting's line items and all of the utilities items, plus summation and decision rendering. The management of the utilities funds have created much concern with the public. It is not known if the various departments had already culled their wish lists before final presentation to the board. If they had not - perhaps if they had been - this would have saved considerable time. It is never easy for a local politician to present his/her constituents with a tax increase or utility increase and is usually avoided or at least subtantially justified at all costs - which is what I feel is happening in this meeting and noting that this is an election year}. Mayor Bettis suggests they put Ald Outlaw's questions on the July workshop agenda as they were good questions.

Agenda item 7. Adopt FY2012-13 Budget Ordinance Amendment for Sewer Fund.

"Lift station #33 is in need of repair due years of deterioration from corrosion resulting from hydrogen sulfide gases that have compromised the structural integrity. In addition to rehabilitating the structure, mechanical equipment will be replaced and larger pumps will be put in service to increase the capacity. A transfer from the sewer capital reserve fund in the amount of $100,000 is necessary to facilitate the repair and equipment replacement. After this transfer, approximately $379,000 will remain in reserves." Passed by unanimous vote.

Agenda item 8. Adopt FY2012-13 Budget Ordinance Amendment for Grants Fund.

"The FY2012-13 budget for the Fire Department's NC Urban Search and Rescue Task Force Grant was based on estimated spending and revenue projections for the previous fiscal year. It is necessary to amend the budget to reduce revenue in the amount of $10,000 based on actual receipts in FY2011-12.

The FY2012-13 budget for the Police Department's 2009 ERIC Fusion Grant and 2011 Bullet Proof Vest Grant were also based on estimated spending projections from the previous fiscal year. It is necessary to amend the budget to reduce appropriations and revenue for the ERIC Fusion Grant in the amount of $42,000, and reduce appropriations for the Bullet Proof Vest Grant by $4,262 and reduce revenue by $4,009.

Additionally, the Police Department received $9,900 from the 2012 Bullet Proof Vest Grant, which required a 50% match. The match was included in the Police Department's FY2012-13 budget. A budget amendment is necessary to acknowledge the grant funds received." Passed by unanimous vote.

**Agenda item 9. Adopt Resolution to Establish the Electric Rate Stabilization Fund.

"The NC Eastern Municipal Power Agency (NCEMPA) is predicting an increase in power supply costs to its members beginning in January 2015. In consideration of this anticipated increase, there is a need to establish an Electric Rate Stabilization Fund to assist with mitigating future increases as excess funds are available. This fund would be funded through operating transfers from the Electric system as excess funds are available. Excess funds are defined as those that exceed the 90 days cash on hand level" (Reporter's note: Finance Dir Fiaschetti stated previously in this meeting that there are 50 days at this date}. Passed by unanimous vote.

Agenda item 10. Adopt Resolution Accepting 2012 CDBG Talent Enhancement Capacity Building Grant Program and Authorizing the Mayor to Sign Documents Associated with the Grant.

"The City has been selected to receive a 2012 CDBG Talent Enhancement Capacity Building Grant in the amount of $50,000. The grant will assist local governments and nonprofits in partnership with local governments to develop appropriate and competitive CDBG grants, administer the grants, etc. The City applied for the grant in partnership with NRCDC, and the funds will be used to provide the NRCDC staff with training needed to develop and administer future CDBG grants." Ald Taylor asks, "is this to be at ECU and is there several sessions or is it ongoing, because this is alot of money?" A city staff person says there will be 2 people from the Neuse River Community Development Council attending at ECU once per month during August 2013 through June 2014. Passed by unanimous vote.

Agenda item 11. Adopt Ordinance to Establish a CDBG Talent Enhancement Capacity Building Grant Project Fund.

"As discussed in the previous item, the City has been chosen to receive a 2012 CDBG Talent Enhancement Capacity Building Grant in the amount of $50,000 with no match required. This ordinance will establish the project fund." Passed by unanimous vote.

Agenda item 12. Adopt Ordinance Amendments to the Union Station Train Depot Restoration Project.

"(Ward 1) Restoration of the Union Station Train Depot will not be completed byJune 30, 2013, which is the end of the grant period. All parties have agreed to an extension. The Ordinance amendment will extend the project until it is finished and will also increase appropriations in the amount of $11,824 to account for architectural services to be funded with revenue received from the NC Railroad Company." Passed by unanimous vote.

Agenda item 13. Adopt Resolution Granting Easement to MCNC.

"(Ward 3) On July 26, 2011, the Board adopted a Resolution to permit MCNC to locate a portion of new fiber optic cable through Lawson Creek Park so it may bore under and across the Trent River. As part of the agreement with MCNC, the City agreed to grant a nonexclusive easement for the benefit of MCNC. The fiber has now been laid, and an ordinance needs to be adopted to grant the easement." Passed by unanimous vote.

Agenda item 14. Adopt Resolution to Sell Property Owned Jointly by the City of New Bern and Craven County Located at 613 Ruth Avenue.

"(Ward 5) The City of New Bern and Craven County have received an offer from Carmen G. Burgos in the amount of $2,000 to purchase the property identified as 613 Ruth Avenue. The offer was advertised as required by statute and no upset bids were received. The Resolution accepts the offer and approves the sale of the property." Ald Bengel asks to confirm that there is just land and no house is involved and is told she is correct. Prior to making this motion, Ward 2 Alderman Victor Taylor asked whether Ward 5 Alderman Bernard White had been notified of this item and if he agreed to this resolution. Mayor Bettis answered that Mr. White had given him a "yes" answer when he talked with him this morning (June 11, 2013). (This reporter wonders if Mayor Bettis informed Ald White or any other alderman that he would be at tonight's meeting. Ald Outlaw has told me that he was not aware nor informed that Mayor Bettis would be at tonight's meeting.) Passed by unanimous vote.

Agenda item 15. Adopt Resolution Closing Streets at Union Point Park on June 15, 2013 from 6 a.m. to 2 p.m. for Elks Flag Day Ceremony.

"(Ward 1) A Flag Day Ceremony will be held in Union Point Park on June 15, 2013, and it is requested streets in the park are closed to vehicular traffic from 6 a.m. to 2 p.m. on that date." Passed by unanimous vote.

Agenda item 16. Approve Minutes.

Minutes from the May 14, 2013 Board Meeting, May 21, 2013 Budget Work Session and May 23, 2013 Budget Work session are attached for review and were approved.

Agenda item 17. Appointment(s).

The following appointments to the Historic Preservation Commission were made:

a) The Mayor reappointed David Griffith.
b) Alderman Bengel is requested to nominate a new appointment to fill Peter Adolph's seat, which ended on May 15, 2013; he will be allowed to serve until a new appointment is made.
c) Alderman Bucher is requested to nominate a new appointment to fill Chairman Rich Frye's seat which ended on May 15, 2013;
d) Alderman Outlaw is requested to nominate a new appointment to fill the seat opened by Janet Giordano's resignation;
Mayor Bettis reappointed Alderman Bengel to the Craven County Tourism Development Authority.

Agenda item 20. Announcements.

a) Mayor Bettis calls Jordan Hughes, City Engineer, up to the podium to tell of the successes of the Stormwater Management Plan and the Jack Smith Creek project during T.S. Andrea. Ald Bengel asked Mr. Hughes if the Biddle St pond worked out? Mr. Hughes answered "yes". Ald Bucher asked for the start date for the Jack Smith Creek project. Mr. Hughes replied, it probably began with the old Public Works Director previous to me and coordinating with NC State Univ in 2003/2004. Ald Kinsey asked how many gallons of stormwater are pumped per minute. Mr. Hughes said appx 21,000 gallons or akin to a filled residential swimming pool going through every minute.

b) Ald Outlaw announced that Trent Road was being resurfaced and would be done by this Thursday (June 13).

c) Ald Bucher reminded the folks about this Saturday's Flag Day ceremony (June 15).

d) Ald Kinsey reminded of the National Night Out meeting on Tuesday evening (June 18).

e) Ald Taylor wished a Happy Birthday to Mr. James Brown who will be 102 years young and still drives! (Mayor Bettis remarked "that is 3 years younger than Mr. Bucher!" and the room erupted in laughter). He congratulated all the area seniors on completing their education. He reminded that Wed., June 12th is the 50th anniversary of Medgar Evers' death. He concluded by twice repeating the statement: "It is always right to do the right thing".

f) Ald Bengel thanked all the staff for their hard work and diligence on the FY2013/14 budget. She explained that the board members' many questions were due to the fact that "they had to live with it in the public eye". She congratulated the graduating class of 2013 and encouraged them to stay safe and stay engaged, especially over the summer. She described her recent honor to attend the ceremony and present the Purple Heart for Vonzaro Gross (sp?) service in Afghanistan.

g) Mayor Bettis declared that "the recession was over and the real estate market was coming back" as he had heard such from several area realtors. He pronounced that "the budget and the enterprise funds have never been better, we've never had a stronger city" government, fiscally speaking. He directed that "we should focus on how great a town this is, put a good face on what's going on with the city, and encourage people to remember that this is a paradise".

Meeting adjourned at 9:07pm.

Rhonda Taylor
CCTA Watchdog for NB Bd of Aldermen
New Bern