CCTA WATCHDOG REPORT FOR NEW BERN BOARD OF ALDERMEN

CCTA WATCHDOG REPORT FOR NEW BERN BOARD OF ALDERMEN

SPECIAL BUDGET WORK SESSION OF 23 MAY 2013

This public budget work session is the final of the two budget work sessions to be held this week. Last opportunity for public participation is the regular BOA meeting of June 11, 2013 at 7pm. A public hearing regarding the budget will be held at this meeting. Then the Board's is slated to vote on approving it. Tonight's session began at 6pm by Mayor Pro Tem Bengel, with all aldermen present as well as City Manager Epperson, City Clerk Veronica Mattocks, and a substitute for City Attorney Davis. Also in attendance were the appropriate department heads and cognizant staff to discuss their particular office funding requirements and present explanation or justification. Mayor Bettis was absent by previous excuse conveyed to Mr. Epperson on May 10th. He has now missed a few (3) of the several (number as yet TBD) meetings he stated he would be absent from.

Mayor Pro Tem Bengel explained since the Tuesday night agenda had not been fully adjudicated, those items would be discussed and that meeting brought to a legal close via motions for adjourning. The Board would then open for tonight's meeting to discuss the budget items on this May 23rd agenda. I am primarily reporting discussion outside the parameters of the printed budget highlights. For those highlights as well as line item details, one may read from the city website at http://www.newbern-nc.org/Fin/2013-14RecommendedBudget.php. So, the Board began where it left off with...

e) Human Resources

i) Human Resources

* HR Director, Sonya Hayes explained to the Board her department needed to reinstate, as soon as possible, a position for $48K as well as the reasons behind that need, that being the administrative duties associated with benefits claims which will now include the new Affordable Health Care Act regulations.

* The Board chose this time to voice their concerns that this budget as it now stands is not plausible without at least a 2 to 3-cent tax increase - even without including the potential capital projects (City Hall elevator, new fire stations & their operational costs, merging the City and Police Dept IT functions). Alderman Outlaw broached the subject first, saying, "The main theme I am trying to get across that all seven elected officials should resonate is the truth that with this budget we are only putting off the tax increase one year if we do all these things. These are the type of things that should be funded based on projected good times in the future, good times that I do not see or predict for another 3-5 years from all indications".

* Reporter's Note: As Hal James mentioned in his May 23rd CCTA Watchdog Report of the County Commissioners budget workshops, the city budget has most of the similar line items that could be cut to help reign in the proposed $4.1 million increase in spending for this year: namely non-contractual Special Appropriations $100,696 (Fireman's Museum, Swiss Bear, Duffyfield Residents' Council, Craven Arts Council); Dues & Subscriptions $65,695 (does not include $14K of software subscription costs for utilities depts.): Community Development $10K; and matching dollars for grants $192,216. There's also a never-been-done-before proposed $60,000.00 loan program that is funded within the Electric Dept (our enterprise funds, again), for persons to use to make their homes more energy efficient. The city is partnering with CCA (Coastal Community Action) as it has the experience and expertise from adjudicating similar programs on its own. All the details have not been hammered out or released to the public as to the terms or qualifications to partake of this loan program. In austere years, many government entities and private industry alike cut their training & travel budgets. As training and travel were not discussed, I am not aware if those items have been pared down to the absolute essentials.

ii) Employees' Benefit Insurance Fund [OTHER FUNDS]

* Finance Director Fiaschetti stated that the city will need to address increasing unemployment compensation. The state will be passing down an unemployment compensation debt of $2.5 billion with the federal government due to the recession.

* Alderman Bucher asked if the city had looked into any changes in deductions. He said most companies have had to water down coverage - has the city looked into that? Mr. Epperson replied that the city has made significant changes as recent as last year - they are not proposing making any new benefit changes. They have aligned open season with the changing of the fiscal year which will give city staff and Board an opportunity to look at the entire picture when doing the budget from now on. Further, he reminded the Board that they did institute a wellness program which lowers health insurance costs. Alderman Bucher asked if dependents were covered. Ms. Hayes said "yes". Alderman Bucher asked as to the cost and Ms. Hayes responded $254.10 per months for a family of 4. Mr. Epperson stated that they have removed spouses who have coverage elsewhere.

* Mr. Epperson stated that the increases in this budget are due to capital catch-up such as vehicles and large industrial equipment, which causes a spike in budget. In contrast the on-going operational costs are flat. Alderman Bucher asked if we have this every year. He continued saying, it would be valuable to know the operations costs separate from the capital costs. Mr. Epperson stated that the capital costs for the replacement equipment have been delayed as long as it could. Alderman Outlaw asked for confirmation that there will be a plan for instituting the police cars on a systematic replacement plan and Mr. Epperson replied that was true - that he and Chief Summers are designing a plan. Alderman Outlaw also asked if city staff have also been trying to come up with additional wellness type programs for employees as a method for lower health insurance costs. Mr. Epperson said "yes", and they have been reviewing and discussing what else they can do to lower costs. He elaborated saying that the wellness programs require up-front costs; but with them come long-term paybacks over 3 - 5 years. One idea was to institute preventative screenings. (Note: there is a $4,974,009.00 difference between City of New Bern contributions and Employee contributions under the Employee Benefit Insurance heading in the FY2013/14 budget).

f) Parks and Recreation (6:31pm).
i) Parks and Recreation
ii) Recreation Grant [OTHER FUNDS - Grants]
g) Police
i) Police
ii) Emergency Telephone System Fund [OTHER FUNDS - E911]
iii) Police Special Revenue Fund [OTHER FUNDS]
iv) Police Grants [OTHER FUNDS - Grants]
h) Public Works
i) Public Works
ii) Public-Private Partnerships Fund [OTHER FUNDS]
i) Stormwater

3. Adjourn, then procedure to convene tonight's meeting.

May 23, 2013

1. (7:25pm) Discussions with City Manager and Management Team on Recommended FY 2013-14 Budget, in the following order:

a) Water [WATER FUND]

b) Sewer [SEWER FUND]
* Down $400,000.00 due to lower consumption by customers.
* Majority of Water & Sewer Funds budget is capital expenditures for equipment replacement due to end of life.

c) Electric [ELECTRIC FUND] (7:54pm)

i) Department of Public Utilities and Finance Department Sections
* Electric Dept Dir Jon Rynne stated that "revenues are down by $200,000.00 due to weather patterns as well as the economy which slows down consumption". Alderman Outlaw asked if the Electric Dept had obtained a security consultation in light of the upward trend of copper thefts. Mr. Rynne said "yes", and the City had employed the advised new security measures to include alarms, lighting and cameras.
*Under Electric Dept Distribution O&M, Mr. Rynne noted the $110,000.00 to spend for GIS mapping for underground and connectivity. This allows the department to more quickly respond and more accurately pinpoint where repairs need to be performed.
* $60,000.00 Under the Power Production Division for a new loan program for persons to use to make their homes more energy efficient.
* Under the divisions of Utility Billing, Customer Service and Utility Billing, supervised by Mr. Steve Anderson, there has been a combined $4,200.00 decrease in spending.

ii) Rate Stabilization Fund [OTHER FUNDS]
* The rate stabilization fund is the transfer from the electric enterprise fund to this rate stabilization fund. The city is anticipating an overall electric rate increase to the City of 3%. The $1,451,930.00 that has been transferred to this new fund from the Electric Fund will be used to absorb any rate increase coming down.

d) Capital Reserve funds (OTHER FUNDS)

i) Sewer

ii) Water

Recap of the 2 days of Budget Work Sessions (8:50pm)

City Manager Epperson began by stating that staff needed Board direction tonight on the funding amount for ACT a (Allies for Cherry Point's Tomorrow) and what to do about the Fire volunteers. The Board decided to add $10K to the $4,123.00 (So ACT will receive $14,123) and to consolidate the Volunteer Firefighters budget with the Fire Dept budget. For the regular BOA meeting on May 28th, Mr. Epperson stated he would be presenting the ordinance to update the city fees schedule. The Board would need to vote on adopting it prior to the June 11th meeting for approval of the FY2013/14 Budget. Those fee changes can be found at this link: http://www.newbernnc.org/C_Hall/documents/OrdAmendingScheduleofFees.pd.

Mr. Epperson clarified that as yet, none of the capital projects discussed at the May 21st session are in the budget. Were the Board to approve any or all each would be financed. The new Fire Dept station would be a different animal as the budget would need to take on the station's operating costs. The city would need to generate significantly more revenue. However, he did not think that would result in a tax increase next year because the first year in implementing the project would only require architect/design costs. The actual project with its larger costs would follow the year after that. The city will move forward with the capital projects unless the Board says not to. In doing so, we will only incur those minor costs like the architect fees. At that point and before moving along any further, we'll bring you a budget. Mayor Pro Tem Bengel suggested first taking care of this FY2013/14 budget, then having a July work session to discuss the capital projects.

2. Opportunity for public to make comments on above sections. (9:03pm)

* Mayoral candidate Edwin Vargas spoke to the Board about the $4.1 million budget increase from last year to this year. Mr. Vargas had plugged in the city's figures for the entirety of this administration and constructed a spreadsheet. Drawing upon the data, he noted that the budget increased an average of $1,442,000.00 for each year of this administration. Therefore, he suggested the Board should make decisions to prioritize expenditures for the big ticket items like vehicles, equipment and employee benefits. He also thanked Alderman Bucher for serving on the ACT committee as well as lauded the Board for financially supporting the ACT, especially in light of the hardship that sequestration was putting on the citizens and therefore, the city economy.

* City Manager Epperson offered that post-employee benefits funding needed some work and said that other towns are modifying those benefits. He will put discussion of this subject on the July work session agenda.

* Last opportunity for public comment on the FY 2013/14 budget is June 11, 2013 at 7pm. That is also the date scheduled for the BOA to vote on adopting this budget.

3. Adjourn at 9:09 pm

Rhonda Taylor
CCTA Watchdog Reporter New Bern Board of Aldermen
Ward 6, New Bern, NC

New Bern Alderman Meeting, May 13, 2013

CCTA WATCHDOG REPORT FOR NEW BERN BOARD OF ALDERMEN

REGULAR MEETING OF 13 MAY 2013

Mayor pro tem Sabrina Bengel opened the meeting and gave the prayer.

All were present except for Mayor Bettis, who had notified the City Mgr of his absence on 5-10-13.

Prior to embarking on the agenda, Mayor pro tem Bengel said she would make some comments. She hoped all would keep Mayor Bettis and his family in their thoughts and prayers. She stated she was aware of the work ahead and she and the Board were ready to roll up their sleeves and tackle the work to be done. She said the Board would move forward in its work with the knowledge that we had a good city staff and the leadership of the other aldermen. As a result of the events of the past week, she said that she understood Alderman Outlaw had made a request to add an item to tonight's agenda to discuss the Mayor and his recent controversies as well as his resignation. Mayor pro tem Bengel allowed Alderman Outlaw to make that motion and Alderman Taylor seconded. She asked for any discussion. There being none, she called for the roll call vote. The vote to add the agenda item for discussing the recent controversies surrounding Mayor Bettis as well as his resignation was: Alderman Bucher, Mayor pro tem Bengel, Alderman Kinsey, and Alderman White voted "No"; Alderman Taylor and Alderman Outlaw voted "Yes". Therefore, the motion failed and the Mayor pro tem moved on to the next agenda item.

**Reporters Notes: Salary per year for Mayor = $12,039

                                            Mayor Pro Tem = $ 8,976

Alderman = $ 8,099

(Confirmed to me by HR Dir. Sonya Hayes on 5-15-13)

Additionally, according to City Clerk Veronica Mattocks, in my phone call to her on 5-15-13, each elected official is allocated a discretionary sum of $1,000 p/yr.

The taxpayers pay Verizon for cell phone services for Aldermen Taylor, White, and  Kinsey, and for Mayor Bettis a sum that varies per month and is based on usage, NTE (hopefully) $7,500. The taxpayers also fund internet service for Aldermen Taylor, White and Bucher at rate of $74.95 per month.

Per the FY2012/13 approved budget, that is posted to the City website under the Finance Dept heading, the Mayor is allotted $4,104 of taxpayer funds for yearly travel and the aldermen are allotted $3,000 each for travel . Under the "Governing Board" designation, the taxpayers also pay for a Travel/Training budget of $2K for each elected official, a Food & Provisions budget (includes Clerk) of $2,500 and a Dues/Subscriptions budget of $38,851 (excludes Clerk) for the 7 elected officials.

Agenda Item 3. Request and Petition of Citizens.

This section of the Agenda is titled Requests and Petitions of Citizens. This is an opportunity for public comment, limited to 4 minutes. "Comments will be directed to the full board, not to an individual board member or staff member. Although the board is interested in hearing your comments, speakers should not expect any comments, action or deliberation from the board on any issue raised during the public comment period. In the board's discretion, it may refer issues to the appropriate city officials or staff for further investigation. If an organized group is present to speak on a common issue, please designate one person to present the group's comment, which shall be limited to a maximum of 4 minutes".

a. Stevie Bennett of National Ave made a suggestion for the City to erect a bulletin board in front of the City Hall steps to enable those who are not able to climb those steps to read the public notices that announce the Board meetings. On another subject of the City not executing appropriate or timely adjudications of HPC issues, she suggested the City hire additional part-time personnel to dedicate to the dispensation of those issues. She believes if the Board can handle appropriating $82,000 for a branding campaign, then it should be able to dedicate the same significant funding to resolving these HPC issues because tourism and interest in the charm of the NB historic districts are the biggest industry. Further, Ms. Bennett stated that the City should use newly hired persons and create new positions only after current and overdue workload is attended to. She also asked after the status of the branding campaign and for City staff to brief on what the MPO plan is. She wanted to know if the public transportation services within this MPO plan were for the City or others outside of it and whether there were to be charges for services. (This item was partially addressed in agenda item #5).

b. Tracy Spellman of the Climbers Club eloquently spoke on the history of the club, which is the oldest pubic service club for women of color, having been organized in 1895. She announced and invited all to the open house for the Charlotte Roane Cultural Center on Tues., May 21st from 10am - 1pm and again at5 - 7pm. Location is 608 West St. in historic Dryborough.

Agenda Item 4. Adopt Resolution Authorizing City to be a Co-Applicant with New Bern Housing Authority in the Choice Neighborhood Planning Grant and Authorizing City Manager to Sign Memorandum of Understanding.

"(Ward 1) The New Bern Housing Authority has requested the City partner with them on a Choice Neighborhood Planning Grant. The grant assists with plans for modernization of public housing as well as overall improvements in the surrounding community. The grant will require a dollar-for-dollar cash match over the next two years of an amount not to exceed $30,000. The Resolution authorizes the City to join the Housing Authority as a co-applicant and authorizes the City Manager to sign a Memorandum of Understanding and to approve the expenditures up to $30,000 for the required match." City Manager Epperson stated the maximum grant award is $500,000. He said the primary reason for the City to provide this match and to sign the MOU is to ensure the maximum success in earning the most points toward receiving the grant award. The MOU will be terminated if the grant is not received. The five elements of the HA/City collaboration are as follows: (a) coordinate planning in regard to Housing and Neighborhood improvements elements of the Choice Neighborhoods Initiative transformation planning; (b) work together to align resources to the extent practicable; (c) support the HA's leadership of the planning process and committ to participation throughout the entirety of the Choice Neighborhood Initiatives planning process; (d) participate in the "Housing" and "Neighborhood" planning committees, and will concentrate on plans for the redevelopment of the Greater Five Points area; and (e) The HA will manage and direct the work under an HUD grant funding obtained in connection with this Planning grant, and HA with the City will coordinate in regard to any other funding raised for theses planning purposes (e.g., funds raised for purchasing distressed properties through the Greater Five Points area. This agreement will become effective upon the awarding of this grant. For more information of what this grant consists of, please refer to the Gateway Renaissance Plan on the city website and the BOA minutes of 2-12-12, agenda Item #6.

Ald Taylor spoke out strongly against the MOU and the grant itself. He stated he did not like how this was presented to the Trent Court residents last year and he claimed that "there was lots of underhanded stuff going on with it last year". He continued, saying, "I'm against it, I do not stand for it. Give them something written in a language the residents can understand. I didn't like it last year - don't like it this year. Until the residents of Craven Terrace and Trent Court are happy with it, I'm not in agreement with it". A small audience contingency applauded after he was finished. Ald White asked Mr. Epperson to clarify that "the Board did vote to be co-applicants last year, right?" Mr. Epperson said "yes" and that last year, the first time, the City was the lead applicant. Ald Kinsey asked if New Bern will be going through a similar procedure to what the Wilson Housing Authority outlined to this Board that Wilson went through when it visited WIlson's HA program. Mr. Epperson said 'yes'. He elaborated on his response to Ald Taylor's comments saying there was a bit of misinterpretation and miscommunication when the City embarked on procuring the HUD Choice Neighborhoods Grant. He differentiated between the two types of grants explaining this grant was a planning grant, while last year's grant was an implementation grant. Ald White asked if it was correct that without a plan the HA cannot go forward. Mr. Epperson replied "yes, they can, but they will be more successful if they approach it this way". (Reporter's note: I interviewed NBHA Dir Julian Marsh on 4-11-13 on the topics of both the HUD planning grant and the implement grant. The information within that interview corroborates the information given by Mr. Epperson at this meeting).

Mayor pro tem Bengel wanted to clear up some things for the public so she asked, "so there's no building anything, removing anything, it's just a plan, right?" "Yes" says Mr. Epperson. "There's more success if the City enters into a applicant-co applicant relationship; and it's not just about the housing, but also access to education, pubic health and public transportation resources". Ald Taylor made reference to the HA attendance of HA Dir Julian Marsh to make the presentation at the 4-9-13 BOA meeting. Then he asked as to why an HA spokesperson was not in attendance tonight. He also asked, "why is this grant - is everybody targeting Trent Court?. Craven Terrace is worse". He said the reason he previously remarked that handling of last year's grant activities was underhanded was because a person was taken off the board that was helping with the application for the grant and told the reason for that was because there was no more room on this board. However, the very next day another person was appointed. The motion passed 5 - 1, Ald Taylor voted "no".

Agenda Item 5. Presentation of Fiscal Year 2013-2014 Budget Overview.
City Manager Epperson presented the budget highlight for Fiscal Year 2013-2014.

The great news first: NO TAX INCREASE! But...solid waste collection fee is increasing $3.75 from a current charge of $8.

He stated this fiscal year's budget is a status quo budget, rather flat. There is $100,000 more in this year's budget compared to last year.

>Some highlights:

* Personnel: will add 2. (1) fill an HR position that has been vacant since Oct 2010. WIll dedicate it administrative needs, for one to address the changes stemming from Obamacare implementation. (2) hire a MPO administrator (decribed in agenda item #16).

*Branding campaign: There's been 75% completion of phase 2 (creative phase). Will need another $75,000, which will make the total tax dollars spent on this venture to be $157,000. However, at the public BOA meeting of 6-12-12, the Board unanimously approved a budget amendment for Phase 1 in the amount of $48,000 and Phase 2 in the amount of $34,000, with Weyerhauser Land Development Co., contributing $2,000 for a total of $82,000 asked of the taxpayers. At that meeting, the board minutes read, "Ald Bucher stated the goal for branding should reflect 'who we are and why would people relocate as well as bring business to New Bern'. New Bern is not well known nationally he has discovered this as he has travelled around the world". This implementation of the additional $75K will allow development of economic development materials, marketing materials, web videos, to name a few.

*Technology improvement: to replace outdated data backup system and unsupported data backup system. $65,000 to go to asset managment and a work order system for Public Works Dept.

*Public Safety: $750,000 to purchase a Quint Fire Truck which is a pump truck/ladder truck combo (takes place of 2 separate vehicles). Also purchase 10 new police cruisers to replace an aging fleet.

*General Fund Revenues: Interfund transfers will increase (he admitted & we could see the charts on this were very faint. It will appear on the city website for public view). City Mgr Epperson stated that as the CIty has begun to use revenue bonds it will need to ensure there are adequate reserves so the revenue bonds will get LGC (Local Gov't Commission) approval. Solid waste collection fees will increase to include leaf & limb and cover the appx $1 million in Gen Fund subsidizing that has thus far been ocurring and to pay for CPI and tipping fee increases. Ald Taylor needed to ask what the current rate is and was told $8.00 residential. The residential rates for all of our neighbor comparison cities are in the $14 - $24 range.

*Although there is no ad valorem tax increase, City Mgr Epperson said it was worth talking about. New Bern's 41 cents p/$100 rate is significantly lower than our neighboring comparison cities (Greenville, Goldsboro, Kinston, wilmington, Havelock, Washington, Wilson).

*June 11, 2013: the budget will be presented to the Board for adoption. Prior to that, there are the 2 additional workshops on May 21st and 23rd @ 6pm. Mr. Epperson said the emphasis of discussion will be on, and it will be the most important for the Board to feel comfortable about, allocations to the enterprise funds and the item of solid waste fees. Lastly he remarked that the budget increases were largely due to the capital expenditures in the Public Safety category.

Agenda Item 6. Adoption Resolution Calling for Public Hearing to Receive Comment on Close Out of 2009 CDBG Community Revitalization Grant Program.

"(Ward 2) The City was awarded a 2009 CDBG Community Revitalization grant in the amount of $1,000,000. The project area is Third Avenue between Broad and Elm Streets. The grant program closes on June 17, 2013, and the CDBG program requires a public hearing be conducted to receive public comment on close out of the grant. The public hearing date was scheduled for May 28, 2013 and passed by a unanimous vote."

Agenda Item 7. Adopt Resolution Approving Lease with Area Day Reporting Center for Youth at 500 Fort Totten Drive.

(Ward 1) The Area Day Reporting Program for Youth, which is a nonprofit corporation, has requested renewal of the lease agreement for the property located at 500 Fort Totten Drive. The lease term begins on May 14, 2013 and ends on June 30, 2014. The financial terms requires a rental fee of $1.00 be paid to the city as the Area Day reporting Program for Youth will pay no more than $2,500 for the CIty to provide the required hazard and liability insurances; or it may opt to carry coverage independently. If that choice is made, that coverage must be for no less than $500K, and must name the City as a named insured. The Center is also responsible for paying the utility bills and all damages incurred to the property. Passed with a unanimous vote.

Agenda Item 8. Adopt Resolution Approving Interlocal Tax Collection Agreement.

It is recommended the County and City tax offices be consolidated under the jurisdiction of the County effective July 1, 2013. This will result in improved efficiency and lower costs to the City. As a further result of the merger, staffing levels in the tax office will reduce from three positions to one. This reduction will not result in any employee losing their job. During the Retreat and the following Board meeting, both Ald Bengel and Ald White were both very concerned about this consolidation. Tonight Mayor Pro Tem Bengel explained that the City is always looking for ways to partner with the County to retain costs while still providing appropriate level of services and approving this item will satisfy both desires. However, Ald White disagreed and felt it was tantamount to contracting-out not only city services but most important to him, the city personnel/positions that went with them. He said we had a person for this job and we should have gotten our own person to refill that job. When Finance Dir Fiaschetti informed the Board that this consolidation would save the City $59,000, Ald White did not change his mind. Item passed with a 5 - 1 vote, Ald White voted "no".

Agenda Item 9. Adopt Ordinance for the Demolition of the Dwelling Located at 711 Bern Street.

"(Ward 1) The owner of the property at 711 Bern Street was first notified of an issue with the structure in June of 2000. On September 24, 2009, owners of the property were properly served with the City's minimum housing violation. On June 10, 2010, building permits were issued to bring the property into compliance. However, to date no progress has been made and all active permits have now expired." Passed by unanimous vote.

10. Adopt Ordinance for the Demolition of the Dwelling Located at 1816-1818 Greensboro Street.

"(Ward 5) The owner of the property at 1816-1818 Greensboro Street was first notified of an issue in October 1997. In July of 2010, the property was sold to Craven Rental Property LLC. In August 2010, the new owner was notified via certified mail that the property was in violation of minimum housing standards. City staff attempted to work with the owner on bringing the structure into compliance until July 2012. No building permits were ever applied for, and on April 3, 2013 the property was referred to the City attorney for final action to demolish." Passed by unanimous vote.

11. Adopt Ordinance for the Demolition of the Dwelling Located at 723 Cedar Street.

"(Ward 1) The owner of the property at 723 Cedar Street was first notified of an issue in October 1998. The property was brought into compliance in September 2001. The property again fell into a state of dilapidation in March of 2009, and the owner was notified via certified mail. In July 2010, the property was sold to Craven Rental Properties LLC, and the new owner was notified of the minimum housing violations in August 2010. To date, no building permits have been issued to bring the property into compliance. On April 3, 2013 the property was referred to the City attorney for final action to demolish." Passed by unanimous vote.

12. Approve Subdivision Final Plan for Hardee Farms, Phase One, Section D.

"(Ward 3) NAD Development, LLC is requesting subdivision final plan approval for Hardee Farms, Phase One, Section D. This is a 28-lot residential planned unit development. The developer has submitted a cash bond for $46,500 to cover the cost of incomplete improvements. City staff has reviewed the proposed subdivision plan and finds all technical and legal requirements have been satisfied and recommends approval of the final plan." Passed by unanimous vote.

Agenda Item 13. Adopt Resolution Approving Application with NCDOT for Elizabeth Avenue Safe Routes to School Program, Phase II.

"(Ward 4) In 2011, the City was awarded a $99,900 Safe Routes to School grant from the NC Department of Transportation for improvement of pedestrian access to H. J. McDonald School for the neighborhoods east of Racetrack Road. This project was completed in April 2013. As an extension of the work completed, the City proposed to the NC Department of Transportation a second phase that will involve improving access for neighborhoods west of Racetrack Road, and DOT has concurred and awarded the City a $120,000 Safe Routes to School grant. This requires no local match, but the City will be providing all engineering and construction administration services for the project. To proceed with the project, City staff is requesting the Board approve execution of an agreement with NCDOT for phase II of the project."

Ald Kinsey announced that the ribbon cutting ceremony for the original project will be held Wed., May 15, 2013 @ 9am at H.J. MacDonald Middle School. This original grant, under the "Safe Routes to School Program, was approved to be drawn up & submitted by the BOA in 10-26-10. These sidewalks provided for by this grant were installed in the southern right of way of Elizabeth Ave. On 4-12-11, the BOA approved the City to authorize the Mayor and City Finance Dir to sign the agreement with DOT for the actual grant award of $99,900.

Agenda Item 14. Adopt Resolution Approving Financing Terms

"At its February 26, 2013 meeting, the Board of Aldermen authorized proceeding further with reference to the Advanced Metering Project (AMI/DSM) and the Highway 17 south Sewer Improvements project. The Board authorized filing of an application with the Local Government Commission (LGC) for approval of the borrowing and issuance of the Series 2013 Bond. The total new money amount to be borrowed is not to exceed $1,400,000. Requests for proposals were sent to six institutions, and STI Institutional & Governmental submitted a proposal with the lowest overall financing costs at an interest rate of 1.56% for a 10-year term."

"In addition, requests for proposals were forwarded to the same six institutions for refinancing four debt contracts totaling $15,960,528.92. STI again submitted the proposal with the lowest overall financing costs with the financing structure requested, at an interest rate of 1.56%. Refinancing these loans will remove liens from the utility systems and result in a net savings of approximately $1.5 million. Financing for both of the above (2013 revenue bond 2013 refunding bond) will be consolidated into one loan not to exceed $18,000,000 with a 10-year term bearing a fixed interest rate of 1.56%. As revenue bonds are involved, the borrowing will have to be approved by the LGC. It is anticipated this approval can be obtained at the LGC's June 4, 2013 meeting, and closing will take place shortly thereafter."

In response to a question by Ald Bucher, Finance Dept Dir Fiaschetti stated there are no downsides to this action. Ald Outlaw wanted to know if Mr. Fiaschetti has inquired as to whether there were any pre-payment penalties and Mr. Fiaschetti stated there were none. Passed by a unanimous vote.

Agenda Item 15. Adopt FY2012-13 Budget Ordinance Amendment for Electric Fund.

"A team of six lineworkers from the City assisted the Long Island Power Authority (LIPA) in restoring electric service to the areas affected by Hurricane Sandy. The City has recently received full payment from LIPA for the labor, equipment, travel and overhead related to the lineworkers' response. LIPA reimbursed the City at a higher rate for the labor portion than the typical mutual aid agreement dictates. Jon Rynne, Director of Utilties, has requested that the additional amount the City was reimbursed for labor be paid to the workers who responded. To facilitate this, a budget amendment must be approved." Passed by unanimous vote.

Agenda Item 16. Adopt Resolution to Amend Classification Pay Plan for Fiscal Year 2012-2013.

It is requested a new position be created for an MPO Administrator. The position will be part of the Development Services department and will administer the day-to-day functions of the New Bern Area Metropolitan Transportation Organization. Funding for the position and required capital costs will be provided through an 80% match from the Federal Department of Transportation and a 20% match from local member jurisdictions.

Craven County Commissioner Steve Tyson heads the Transportation Advisory Council, and New Bern Alderman Johnnie Ray Kinsey serves as vice chairman of the MPO. There has been one meeting to date. The only North Carolina city to be designated for an MPO in the last Census, New Bern's metropolitan area now includes annexed areas east of New Bern such as Taberna and Carolina Colours as well as communities like James City, Grantham and others in that area. Bridgeton, Trent Woods and River Bend and some unincorporated areas near them are also in the planning group. Members of the MPO will meet once a month on the third Thursday at New Bern City Hall.

New Bern Director of Development Services Jeff Ruggieri and Craven County Assistant Manager Gene Hodges head theTechnical Coordinating Committee. MPO members include New Bern's director of development services, MPO coordinator, city engineer; Craven County's planning director and operations and facilities director; town managers from Trent Woods, Bridgeton and River Bend; CARTS; Coastal Carolina Regional Airport Authority; New Bern Area Chamber of Commerce; and federal, state and local transportation officials

Ald Outlaw asked City Mgr Epperson if the 80% match was permanent and what was New Bern's part. He answered "yes" it was permanent and that the City's portion was $20,000. In response to another question from Ald Outlaw on what the City receives from the MPO, Mr. Epperson replied, working on/resolving regional transportation issues w/MTA and securing direct funding from state and federal Departments of Transportation. Ald White asked if our being in this MPO would get our financial rating bumped up? Mr. Epperson answered that factor was one of the puzle pieces. Passed by unanimous vote.

Agena Item 17. Adopt Resolution to Close 1500 block of Rhem Avenue for the Rhem Avenue Block Party on Sunday, May 26, 2013, with a Rain Date ofMonday, May 27, 2013.

"(Ward 1) Residents of Rhem Avenue have requested the 1500 block of Rhem Avenue between Third Street and Fourth Street be closed from 2 p.m. to 7 p.m. on May 26, 2013 for the Rhem Avenue Block Party. A rain date of May 27, 2013 has been selected." Pased by unanimous vote.

Agenda Item 18. Adopt Resolution Closing Streets in Union Point Park on May 19, 2013 from 6 a.m. to 8:30 p.m.

'(Ward 1) To facilitate a Community Band Concert, it is requested the streets in Union Point Park be closed to vehicular traffic on May 19, 2013 from 6 a.m. to 8:30 p.m. Exceptions will be made for vehicles operated by police, fire, emergency and designated program support staff." Passed by unanimous vote.

Agenda Item 19. The minutes from the April 9, 2013 Board Meeting, April 16, 2013 Work Session and April 23, 2013 Board Meeting were approved by unanimous vote.

Agenda Item 20. Appointment(s).

"Alderman Bucher recommends Peter J. Walker be appointed to the Board of Adjustment to serve out John Reichenbach's term, which will expire on June 30, 2013. He also motioned for Mr. Walker to serve an additional 3-year term.

Alderman Bengal is requested to make an appointment to replace Phil Urick on the Board of Adjustment, who has resigned due to health reasons. Mr. Urick's term is scheduled to expire on June 30, 2014.

Mayor Pro Tem Bengel then stated the Mayor has a reappointment for Ms. Stevie Bennet to the Planning and Zoning Board. All motions were passed by unanimous vote.

There were no Attorney or City Manager Reports.

A Closed Session was motioned to discuss a possible settlement to a pending claim.

Meeting adjourned at 8:36pm


Rhonda Taylor
CCTA Watchdog Reporter for New Bern Board of Aldermen

CCTA Watchdog Report -New Bern Board of Alderman Meeting 26 March 2013

All Board members and the Mayor were present as well as the City Attorney and City Clerk for this regular 7:00 pm BOA meeting. City Manager Epperson was absent; Mr. Bobby Aster, NBFD Chief assumed his position.

After the meeting's opening procedures, the first item of business, Agenda Item 3, was to Conduct the Public Hearing and Adopt the Ordinance to Amend Article II Definitions "Family" of Appendix. A "Land Use" of the NB Code of Ordinances. 3 citizens who reside within the downtown Historic District spoke and asked questions: (1) how does the city enforce the ordinance violations? (2) concerns were raised regarding what the citizens felt were too strict of a definition of the word "family". They stated this definition and any enforcement activities reminded them of "big brother" type government and they were opposed to such. The Development Services Dept Dir Mr. Jeff Ruggieri and City Attorney Scott Davis stated that this ordinance relied on a complaint driven system.

Citizens who notice zoning irregularities such as several meters installed on one single-family home or several staircases being built from outside doorways or unusual occupant traffic should report their concerns to the Zoning & Inspections Dept. Mr. Davis further explained that city staff does not conduct home by home inspections to check on who is living at a dwelling nor how many people exactly are living there ascertain how the residents may be related.

The citizens who spoke seemed reassured by that. Mayor Bettis further explained that this ordinance amendment was more of a restriction on builders and dwelling owners. Mr. Davis said most towns have put into law a cap of the number of dwelling occupants. This amendment would bring the legal description of what constitutes a "family" for zoning and land use purposes to be in line with the zoning requirements of any particular neighborhood land use designation (e.g., single family, multi family). Alderman White asked what happens to residents who are currently out of compliance should this amendment pass? Can they be grandfathered in? City attorney says no grandfathering clauses in this instance. The vote was taken and the ordinance amendment passed 6 to 1, Alderman White having voted "no". Point of contact for the types of complaints that fall under this ordinance is Mr. Greg McCoy, (252)639-7585 or email GREG MCCORY Complaints may be made anonymously.


Agenda Item 4 Approve Amendment to Subdivision Final Plan of Elizabeth Downs Phase I and Item 5 Approve Police Civil Service Board Register in order to add a candidate upon successful completion of medical, psychological and truth-verification examinations passed unanimously and without discussion.

Agenda Item 6, Adopt Resolution Authorizing Filing of Application with LGC (Local Government Commission) for Approval of Financing of South Front Street Streetscape Improvements Project. At the March 12, 2013 meeting, the Board authorized the Municipal Service District (MSD) Funds in the amount of $50k toward this project. The remaining $465,315 will be secured via purchase installment contract. Since this project involves improvements to real property this financing is mandated by NC law to need the LGC approval. The resolution passed unanimously.

Agenda Item 7 called for adopting a resolution calling for a public hearing on the financing arrangements for Item 6, above. It passed unanimously. The public hearing is set for April 9, 2013.

Agenda Item 8 also was an offshoot of Item 6. This asked the Board to Adopt FY2012-13 Budget Ordinance Amendment for Electric Fund and MSD Fund. this budget amendment was needed to (1) establish a $50k appropriation in transfers out to be funded with a reduction of budget in the future capital expenditures line item account in the MSD Fund. (2) Additionally the Dir of Utilities has requested $15,900 to purchase a replacement vehicle for a City vehicle which was totaled in a wreck. This vehicle purchase will be funded with insurance proceeds. Motion passed unanimously.

Agenda Item 9 asked the Board to Adopt a Resolution Approving Audit Contract for Fiscal Year ending 30 June 2013 for the firm McGladrey, LLP to perform the City's annual audit at a cost of $34,800, in accordance with NCGS 159-34. Ald Bengel questioned the $800 increase over last year's audit. It was explained this increase was due to normal cost-push measures and new pronouncements that are time consuming to implement as compared to last year's requirements. Alderman Bengel also asked if the City should expect to have to budget an increase every year hence and was told yes. The increase is estimated to be 2% per year. Board voted unanimous approval.

Agenda Items 10 thru 12 dealt with various street closings associated with MumFest (Oct 11 - 13, 2013, New Bern High School Prom (eve of Apr 20, 2013 til midnight of Apr 21, 2013) and the Annual Festival of Fun (morn of Apr 12 til eve of Apr 13, 2013). During Board discussion of this item, Alderman Bengel requested the City Manager to include in the agenda item description exactly which streets/blocks are to be closed. The reason is because most citizens don't read the agenda item backup info so it gives the appearance that downtown is frequently closed off. She said that the downtown merchants would appreciate that also because street closings tend to discourage business.

The topic afforded the most discussion was Agenda Item 13 Approve Minutes for the Feb 12, 2013 regular meeting, Feb 16, 2013 Retreat, and the Feb 26, 2013 regular meeting. Alderman White expressed his desire to offer the motion to approve minutes for Feb 12 and 26, but that he wanted to discuss the Feb 16 retreat minutes before motioning for their approval. Alderman Outlaw seconded. Mayor Bettis quickly announced the next agenda item; however several alderman voiced that not all the minutes had been offered for approval and that

Mr. White asked for discussion on Feb 16 minutes. Mr. White's concern was over the positions of City Tax Collector position realigned to be under the County, and the City Clerk & City Finance Director being realigned under different supervision under the City Manager. Alderman Bengel says she also has a concern about the tax collector position. Then Alderman Outlaw interjected a submotion regarding the Retreat Agenda Item 4c, an amendment to the city manager position to receive the $10k p/yr bonus. He would like to have it clarified in the minutes that the formal vote for this bonus was to take place during the next regular Board Tuesday evening meeting (Feb 26, 2013). Alderman Taylor quickly seconds. Ald Outlaw continues stating he also has concerns about making policy decisions at any Retreat involving subjects like city ownership of the marina. His reason is he feels Retreats are for planning purposes and not inking city policy. Mayor Bettis asks other aldermen to state their recollections surrounding the bonus amendment.

Alderman Bucher recounts that he was given direction by all the aldermen to pursue drafting the bonus amendment and bring it to the Retreat work session. He did so in consult with the City Attorney. Mr. Bucher further stated that all the aldermen had a chance to look at it during the Retreat meeting. He described that Alderman Bengel motioned to approve the bonus amendment and he (Ald Bucher) seconded and they all voted 'yes'. He said the board further directed him to bring it to the next Board of Aldermen meeting "so the public could hear what we had done". Mr. Bucher continued saying that Alderman Outlaw had asked 'are y'all okay with voting on this here?' and that "all the Board members said 'yes', including you, Mr. Outlaw". Ald Bucher stated that the "recent Board members' actions had created embarrassment for the City Manager and his family". "Some aldermen may not have gotten out of Craven County lately but" this is how it's done in the rest of the world, people don't stay in the same jobs as long as they used to and move away in order to move up. He also said "the way the Board handled the situation was an embarrassment to this board and if it wasn't a vote then there would not have been recorded a motion and a second".

The City Attorney interjects that he understands the submotion is to approve the Feb 16 minutes with the subject change and then asks "so what's the change?" Then Alderman Outlaw questions whether minutes of any Retreat have been done, then states that at least two past Retreats and a couple of meetings do not have approved minutes either; therefore, "empirical data suggests that retreats are for planning, not making policy, purchasing marinas or granting bonuses". Alderman Outlaw asks again, where are the minutes for Morgan's and other retreats? Mayor Bettis tells Alderman Outlaw to figure it out on his own. City Attorney Davis pleads, "could someone just repeat and give me the motion?" Alderman Outlaw says, "give me a second and I'll write it down". He also says he's talked with other Board members about resolving this... Mayor Bettis cuts him off in mid sentence and directs Alderman Outlaw to hand him his written submotion.

Alderman Outlaw wishes the Feb 16 Retreat minutes to state in reference to the 2nd page, paragraph 4c, 2nd sentence, 'An addendum to the city manager's employment contract was discussed and the issue is to proceed to a Tuesday night vote. Alderman Bengel made a motion and Ald Bucher seconded. He moves to strike 'the Board approves the agreement'. Alderman Bengel says 'in doing that doesn't that disregard the reality that the Retreat motions were made?' She then requests that someone read the whole paragraph that is in question.

After hearing the reread of Alderman Outlaw's submotion, Alderman Bengel asks if this is to be a voice vote or a roll call vote. The Board then discusses what a 'yes' vote means: does it mean the bonus was discussed and agreed in principle to bring up for Tuesday night approval? Alderman Bengel asks Alderman Outlaw, 'did we discuss it?' Alderman Outlaw ays 'yes'. Alderman Bengel asks Alderman Outlaw, 'did we hear motions?'. Alderman Outlaw says he 'questions whether the Board stuck to the definition of what a Retreat's purpose is'. Alderman Bengel asks Alderman Outlaw, 'did we have a unanimous agreement?' Alderman Outlaw says, 'no one had a problem with what was written on the paper (in reference to the actual content of the bonus amendment), but I have a problem with the notes that were made by Ald Bengel and City Mgr Epperson being approved as the minutes of what actually happened'. Alderman Kinsey says, 'we voted at the meeting but the agreement was we would bring it to the Board meeting on Tuesday night so everyone, the people, would know what we did'. Alderman Outlaw and Alderman Kinsey discuss what the vote meant saying that, 'everyone voted to unanimously bring it (the bonus amendment) before the next Board meeting, it was not a unanimous vote to approve the actual bonus'. Alderman Bengel says, 'I thought what we did was - the notes say we discussed, voted unanimously, and put on the agenda for the next Board meeting to inform the public'. Alderman Outlaw asserts that 'the Retreat was misused to make policy instead of conducting a Retreat in the true sense of the definition which is to make plans'. Alderman Taylor emphatically interjects, "I agree with everything he said (meaning Outlaw)".

At various times during the above discussion, Mayor Bettis is interjecting pleas to calm down or trying to get one alderman at a time to speak and to regain focus on understanding exactly what the meeting procedures should be and what exactly are the motions or submotions that they are to be voting on. The Mayor calls for a vote: 4 (Taylor, Kinsey, White & Outlaw) vote 'yes' to Alderman Outlaw's submotion (which strikes the sentence stating the Board's unanimous vote of approval of the bonus at the Retreat was a formal vote of approval). Suddenly, Alderman Kinsey cries, "wait" and says he's 'confused about the voting part'. Mayor Bettis calls for a 10 minute recess, City Attorney Davis reminds him that there must be a motion and a second for that recess; Alderman Taylor makes the motion to recess (and I did not hear a second or a vote on this motion). Mayor Bettis states that Ald Outlaw is to write down his submotion, prompting Alderman Outlaw to say "I already wrote it down". Recessed at 8:09 pm.

Meeting resumes at 8:23pm. Mayor Bettis states that the 10 minute recess took a little longer but they reduced the submotion to writing, so he will read the amendment to Alderman Outlaw's submotion. A roll call vote was taken: Voting 'yes' was Taylor, Kinsey (who made a statement before casting his 'yes' vote), White and Outlaw. Alderman Kinsey's statement was, "I want to make a statement first. We all agreed to make this happen at a Retreat and bring it before the Board on Tuesday night at the regular meeting". Voting 'no' was Alderman Bengel, Alderman Bucher and Mayor Bettis. Mayor Bettis says 'alright, the motion carries. Moving on to Appointments'.. So, the minutes for the Feb 16, 2013 BOA Retreat should state in effect, 'An amendment to the submotion per Alderman Outlaw should strike paragraph 4c of the minutes and read: During the February 16, 2013 retreat, a motion was made by Alderman Bengel to approve Amendment No. 1 to Employment Agreement with the City Manager to include a $10,000 payment in January 2014, 2015, and 2016, seconded by Alderman Bucher and granted by unanimous vote a conditional approval to be formally and finally approved by a Board vote at the Tuesday, February 26, 2013 regular Board of Aldermen meeting'.

There were no appointments or reports from the City Attorney or City Manager.

Several aldermen had Announcements as follows:

Alderman Outlaw: expresses desire for Board to come together to develop minutes for the past two retreats and the Sep 24, 2012 meeting at Morgan's, which discussed the city manager evaluation.

Mayor Bettis: said, 'I would like to change the 'minutes' to 'hours' and chuckled.

Alderman White: Announced the meetings for the MLK Outreach Committee and the Voters' League. He also made the statement: "Equal rights and justice - I don't seem to see it. Give me or liberty or give me death".

Alderman Kinsey had no announcements.

Alderman Bucher reminded the public that the Christian Holy Week had begun saying "I wish all Christians a blessed Resurrection Day on Sunday".

Alderman Taylor said "when we were elected we said we would work together." He requested that when a concerned citizen contacts an alderman and that concern is not within their ward to please pass the citizen complaint to the appropriate ward and its alderman. He also expressed his displeasure over discovering it was taking the City a good month to deliver the aldermen's emails within their city account to them. He also announced, and specifically noted that he wanted the Sun Journal and the people who write the tax party's newsletter (did he mean CCTA?) to know, he would not be at the April 9th BOA meeting due to a pre-scheduled surgery appointment with the VA.

Alderman Bengel had no announcements.

The closed session was deemed unnecessary and the meeting adjourned at 8:32pm.

**To watch for: (1) upon public release of the Feb 16, 2013 Retreat minutes, focus your attention on what will be happening with the Marina; another project requiring use of our electric enterprise funds ( stipulated as PILOT funding; derived from City of NB power customer bill payments) that cannot be accomplished without them; how NB will be administering & collecting taxes; changes to funding organizations previously funded under the budget category of special appropriations; what will be done with city-owned property on Kale Rd. and the Dunn Bldg., as well as some vacant city lots; and, (2) Continue to read about the Gateway Renaissance program CLICK HERE and be aware of these projects coming before the various city boards for discussion and possible approval, noting the use of federal grants and city matches as well as oportunities for public comment.

Rhonda Taylor
Ward 6
New Bern, NC 28562