Lake Lure Town Council Work Session/Action Meeting Summary - Wednesday, October 25, 2023

Thank you to all who attended the Town Council Work Session/Action Meeting Summary on Wednesday, October 25, 2023.  The following is a summary of the meeting for those who could not attend.  Please note that this is a summary of the meeting and not formal minutes which will be included in the following month's Regular Town Council Meeting Packet.  

You may download the meeting packet for additional information.   

I. Call to Order: Mayor Pritchett called the meeting to order. 

II. Agenda Adoption: The meeting was adopted with a change in order to cover public comment followed by the lease of the former ABC Store. 

III. Public Comment: There were no public comments. 

XV. Continue Review of Proposals for the Lease of the Former ABC Store Property: Town Council continued the review of proposals for the lease of the building located at 2654 Memorial Highway.

• Town Manager Perkins provided a brief update on the four proposals that have been received from Mr. Wittmer, Mr. Oppliger, Mr. Venuto, and Mr. Carter.
• There was a lengthy discussion regarding the proposals. 
• Town Council had an opportunity to clarify aspects of the proposals for the two potential leasers that were present, Mr. Wittmer and Mr. Oppliger/Mr. Brock.   
• Council noted that any plans that are considered must include a parking plan.  Council also expressed a concern about not allowing the property to become "junky looking".  If docks are added at some point, they could be like the docks in Washburn Marina.
• Council clarified that all site plans would have to go through Community Development for review and approval before Town Council could approve them and this would include any decking that is proposed. 
• The proposal review will continue.

IV. Discuss Proposed Amendments to Speed Limit Ordinances: Town staff has received various questions in regard to speed limit signs.

• Town m=Manager Perkins advised that there are signs located at town entrances that instruct that the town-wide speed limit is 25 unless otherwise posted.
• He advised that this is not stated in the Town’s Code of Ordinances.
• Town staff is proposing the addition subsections B and C to Code of Ordinances Section 30- 95 (Schedule I Speed Limits) which addresses streets in town limits that are not a part of the state highway system. 
• This specifies that nothing in the section shall be interpreted to permit any person to drive a vehicle at a speed greater than is reasonable and prudent under the existing conditions.
• There was a discussion regarding this matter and this item will be considered at the next Regular Town Council Meeting.
• Following the addition of such verbiage, Town staff will work towards addressing signage. 

V. Review and Consider Taking Action on Duke Energy Power Purchase Agreement and Renewable Energy Certifications Transaction Agreement – Staff recommends taking action as the current agreement expires at the end of October*:  Town Manager Perkins reviewed the current Power Purchase Agreement (PPA) and Renewable Energy Certifications (REC) Transaction Agreement between Duke Energy and the Town of Lake Lure will be expiring at the end of October 2023.

• A new agreement will be necessary.
• At the October 10th regular meeting, Town Council reviewed the options for terms and there was consensus to opt for a 2-year term.
• Duke Energy has provided the Town with a draft PPA and REC Transaction Agreement.
• Staff recommends that Council take action on this item during the October 25th meeting due to the expiration of the current agreement on October 31st.

• Period Definitions:  For Energy Credit purposes, Summer months are defined as calendar months June through September, Winter months are defined as calendar months December through February, and Shoulder months are defined as March through May and October through November. Summer on-peak hours shall be Monday through Friday from 12:00 p.m. noon to 4:00 p.m. and 8:00 p.m. to 10:00 p.m. Winter on-peak hours shall be Monday through Friday with morning hours from 5:00 a.m. to 6:00 a.m. and 9:00 a.m. to 10:00 a.m., plus evening hours from 5:00 p.m. to 10:00 p.m. Shoulder on-peak hours shall be Monday through Friday with morning hours from 6:00 a.m. to 10:00 a.m. plus evening hours from 4:00 p.m. to 11:00 p.m. Summer premium peak hours shall be Monday through Friday from 4:00 p.m. to 8:00 p.m. Winter premium peak hours shall be Monday through Friday from 6:00 a.m. to 9:00 a.m. There are no premium peak hours for Shoulder months. All other hours, plus the following holidays, shall be offpeak: New Year’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after, and Christmas Day. When a holiday falls on a Saturday, the Friday before the holiday will be considered off-peak; when the holiday falls on a Sunday, the following Monday will be considered off-peak. Capacity Credit shall only be applicable in Summer months defined as the calendar months of July and August and Winter months defined as calendar months of December through March. Summer on-peak hours shall be 5:00 p.m. to 9:00 p.m. during all Summer days. During Winter months, the on-peak hours shall be all Winter days from 5:00 a.m. to 10:00 a.m. Capacity credits are not applicable in all other months. 

• See the Duke Power Purchase Agreement in the meeting packet beginning on page 8 through page 72. 
• Town Council approved the new agreement as recommended with the two-year option. 

VI. Continue Discussions Regarding Lake Lure Tours Off-Season Beach Hours: During the October 10th regular Council meeting, a motion was made to table discussions regarding Lake Lure Tours (LLT) off-season beach hours prior to making a decision.

• Council continued discussions on LLT off-season beach hours request.
• The off-season beach hours request from LLT is as follows:
  • 1. The beach remain closed from the day following Labor Day Weekend until and through the day following commencement of lake drawdown.
  • 2. The beach be re-opened the day following commencement of drawdown for complimentary, unsupervised, “no swimming” public access until the day following commencement of lake refilling or until the lake is returned to full pond, whichever comes first.
  • 3. At the day of commencement of refilling, the beach then be re-closed until reopened by LLT for the year’s season, beginning Memorial Day Weekend. 
  • Police staff have reported various incidents since re-opening the beach for unsupervised access.
  • Staff recommends that if approved by Council, the requested hours should remain in place for more than a one-year period.
  • Town Council approved the request from Lake Lure Tours.
  • A separate action will be forwarded to amend the contract in future years. 

VII. Review Job Description for the Hydro Utilities Technician Position:  Town Manager Perkins explained that the former Hydro Utilities Technician recently filled the vacant Public Works Supervisor position.

• The Hydro Utilities Technician position is now vacant and staff has revised the job description to better fit the needs of the Public Services Department. 
• There was a brief discussion regarding the position.
• Primary Reason Why Classification Exists: To assist in operating and maintaining the Hydro Electric plant, Drinking Water System, Waste Water Treatment Plant, and Collections System.
• Distinguishing Features of the Class: Employees in this class perform duties involving maintaining, operating and repairing the hydro plant, Drinking Water system, Collections, and WWTP. Work is performed during normal daily work hours, emergencies, and weekend shifts. Sound judgment, initiative and courtesy is required in performance of duties. Work is performed independently and under the direction of the Hydro Utilities Supervisor.
• This matter will be reviewed and considered at the next Regular Town Council Meeting.

VIII. Review Proposed Schnabel Work Order No. 12, Proposal for Professional Engineering Services for Dam and Spillway Gate Inspections: Schnabel had submitted a proposal for Work Order No. 12 for professional engineering services for dam and spillway gate inspections at the Lake Lure Dam.

• Schnabel has proposed a fee of $26,217 for the inspection of the dam and $73,813 for the inspection of the spillway gate.
• The total cost associated with proposed Work Order No. 12 is $100,030. 
• Every 5 years the dam and spillway will be conducted.
• New seals are needed for maintenance of the dam. 
• Town Council questioned the amount and asked for a more detailed proposal that further clarifies exactly what is included. 
• Town Council will consider the updated proposal and review it at a future meeting. 
• Mr. Perkins noted that a budget amendment would be needed for this item as well if the proposal is approved.

IX. Discuss Capital Reserve for Buildings, Land, and Parks: Town Manager Perkins advised that Town staff has proposed the creation of a capital reserve fund for the planning and funding of future building, development, and other land improvements.

• Initial funding would be appropriated through fund balance transfers equal to unexpended amounts approved in capital budget line items that were not expended during the last fiscal year.
• Mr. Perkins explained that the recommendation was to create this capital reserve which would result in an advantage for formal method to save funds for future capital expenditures.
• There was a discussion regarding the process. 
• Town Council will review this further and consider it at an upcoming meeting. 

X. Review Recommended Personnel Policy Changes: Town Manager Perkins advised that the Town has been in the process of reviewing the Personnel Policy and drafting recommended changes.

• He advised that there are three major changes that need to be addressed: retiree health insurance benefits, overtime compensation, and transfer of sick time.
• Town staff has proposed the creation of a capital reserve fund for the planning and funding of future building, development, and other land improvements.
• Initial funding would be appropriated through fund balance transfers equal to unexpended amounts approved in capital budget line items that were not expended during the last fiscal year.
• It is staff’s opinion that creating this capital reserve is would result in an advantage for formal method to save funds for future capital expenditures.
• The current policy states that the employee must be eligible for the NC Retirement System to be considered for this benefit.
• The employee must meet the minimum age and longevity. The youngest age for retirement is 50 but the benefits are reduced the younger they are. 
• An alternate carrier is needed since the state plan is no longer an option. 
• An updated Personnel Policy is needed to address this matter. 
• Compensatory time represents a liability on the time books. 
• Employees can accumulate 480, 320, or 240 for various positions.
• Revisions will be refined and considered at a future Town Council Meeting.

XI. Continue Discussions Regarding Boys Camp Road/Parks and Recreation Trust Fund (PARTF): As discussed at previous meetings, Town Manager Perkins summarized that cell towers are prohibited by Parks and Recreation Trust Fund (PARTF) guidelines for land acquisition.

• He explained that the Town received a PARTF grant for an acquisition project for Boys Camp Road in 2019.
• At the time of award, the Town had no plans to place a cell tower on the property, but it is now a priority that the Town have the cell tower constructed on the property to increase public safety.
• Town Council and staff previously discussed the Town’s options which include converting a different property that is not currently owned by the town and must be appraised at the same value as the Boys Camp Property per today’s value or paying back the funds.
• Council discussed options to determine the best course of action to regain compliance with PARTF.
• Mr. Perkins explained that the fastest strategy to resolve this issue was the pay out the portion of the property on Boys Camp Road where the cell tower will be placed. 
• This was discussed in detail and will come forward for consideration at a future meeting. 

XII. Review Maintenance Agreement for New Electric Vehicle Chargers and Discuss Charging for use of Chargers to Cover Town Costs: The Town’s electric vehicle (EV) charging stations recently stopped functioning properly.

• Town staff is recommending that the EV charging stations be replaced with NovaCHARGE stations.
• NovaCHARGE has provided the Town with a proposed maintenance agreement that includes a term of three years and would automatically renew unless otherwise notified.
• Furthermore, Town staff is recommending the pass-through of the electric charge and Town costs to the users of the chargers through a minimal charging fee.
• This was discussed in detail and will come forward for consideration at a future meeting. 

XIII. Review the Zoning and Planning Board’s Recommendation Regarding Chickens and Chapter 4 (“Animals”) of the Code of Ordinances:  Town Council previously requested that the Zoning and Planning Board provide recommendations in regard to a citizen’s request to amend Code of Ordinances Chapter 4 (“Animals”) to allow chickens within town limits.

• Community Development Director Mike Williams advised that the Zoning and Planning Board held their initial discussion on the matter during their September 19th regular meeting but they could not come to consensus on this matter.  
• Town staff was asked to provide the Board with a recommendation based on the conversations at that meeting.
• Staff recommended changes to Chapter 4 (“Animals”) were as follows:
  • Sec. 4-1. Definitions.
    • The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
    • Dog having dangerous or destructive propensities means a dog which constitutes a physical threat to humans or other animals, or a dog which habitually turns over garbage receptacles, habitually destroys shrubs, flowers, grass, and other plant growth, habitually kills other animals, habitually attacks or attempts to attack persons, or habitually performs other similar acts.
    • Chicken coop means a protective indoor space where chicken hens are kept.
    • Chicken run means a fully enclosed area where chicken hens may move freely in the open.
    • Free range means permitting livestock to graze, forage for food or otherwise roam freely outdoors as opposed to being confined within an enclosure.
    • Hen means a female chicken.
    • Proper enclosure when used in reference to dogs means a building or other structure from which a dog cannot escape, or an outside area enclosed by a fence at least six feet in height secured to the ground in a manner so that a dog cannot escape.
• There was a discussion regarding this issue and the revised changes.
• It was recommended that other resort town ordinances on this topic be reviewed to identify existing strong practices.
• This will be done and this issue will continue to be reviewed and considered. 

XIV. Review the Zoning and Planning Board’s Recommendation Regarding Alcohol Sales in Lake Lure:  Community Development Director Williams advised that the Zoning and Planning Board has been in the process of reviewing Town Ordinances in relation to the sale of alcohol in town limits.

• Based on discussions held during the review, Town staff provided the Board with recommended amendments at their October 17th regular meeting.
• Staff’s recommendations were as follows:
  • 1. Rescind previous recommendation made on July 18 on bars and definitions.
  • 2. Recommend amending the zoning ordinance as follows:
  • a. Add/revise TOLL definitions per NC General Statues18B for the following: - Hotels and motels – staff recommends revising existing TOLL Section 36-5: Hotels and Motels.1)
  • The term “hotels and motels” means a building or group of buildings occupied as at temporary abiding place for individuals where rooms are usually occupied singularly for hire and in which rooms no provision for cooking area made.
  • A hotel or motel may include a restaurant and/or on premise consumption of alcohol, including spirituous liquors with a valid NC ABC license.
  • Subsections 2-4 shall remain. - Restaurant – staff recommends adding definition: Restaurant means an establishment substantially engaged in the business of preparing and serving meals, and shall have a kitchen and inside dining area with seating for at least ten (10) people.
  • A restaurant may include on premise consumption of alcohol, including spirituous liquors with a valid NC ABC license.
  • Mobile Food Vendors and/or food trucks shall not be considered as a restaurant.
  • Mobile Food Vendor – means a readily movable trailer or motorized wheeled vehicle, with a valid DMV license tag, equipped to serve food.  It shall not be considered as a restaurant.
  • Private Club – staff unclear of purpose or necessity. 
  • Community Theatre – staff unclear of purpose or necessity
  • Convention Center – staff unclear of purpose or necessity b. Delete 36-65(C)(2): “Bars, taverns, private clubs, or sale of alcoholic beverages for on premise consumption”.
  • Staff notes that ABC Commission defines “Bars” as serving spirituous liquors.
  • c. Correct micro-brewery definition error in ordinance to read: Microbrewery means an independently owned facility that brews craft beer, ale, porter of other fermented malt beverages in quantities up to 15,000 barrels per year with at least 75 percent of its product sold onsite. (See “nano-brewery” & “brew-pub” definitions.)
  • d. In 36-62(B) (1) delete:” alcoholic beverages for off-premises consumption”. (Retail stores are permitted use with no limitations of ABC-permitted alcohol sales.)
  • Following review of staff’s recommendations, the Board motioned to make the following recommendation to Council were made: To recommend the amendment of the Zoning Ordinances to revise definitions to fit the North Carolina General Statute 18B definitions for hotel/motel, restaurants, mobile food vendor, private club, community theatre, and convention center; to remove Section 36-65(C) (2); to correct the “micro-brewery” definition error to reflect that the products sold must be at least 75 percent on-site; and to remove “alcoholic beverages for off-premises consumption” from Section 36-62(B) (1). This motion carried 5-0.
• There was a detailed discussion regarding this item and Council will review this and consider it at an upcoming meeting.

XVI. SRF Loan Updates:  Town Manager Perkins explained that Town staff received an email containing an attached letter for an amended offer and acceptance for SRF 10/16/23.

• Originally, the Town was offered an additional $7 million which was recently accepted by Council.
• In the amended letter, it is detailed that there was a clerical error in the initial offer letter and $80,261 was inadvertently omitted.
• The amended offer letter is corrected to reflect that the Town is being offered an additional $7,080,261 loan.
• The loan would still be 0% interest and have a term of 30 years.
• During future meetings, Council will be asked to adopt a new resolution, which will replace Resolution No. 23-10-10B Accepting a SRF Loan of $7 Million.
• In addition, the Capital Project Ordinance for the sewer replacement project will require an amendment to accurately reflect this change.
• Staff is working towards completing all additional requirements for accepting the loan, as updated.
• This will come to Town Council for approval at the following Regular Town Council meeting.

XVII. Discuss Internships: Town Manager Perkins advised that staff is interested in the possibility of hosting two interns from local universities in the future.

• One intern would work with Town Hall staff to complete tasks associated with utilities and administrative actions.
• The other intern would work with Community Development on zoning and Geographic Information System (GIS) operations.
• Staff feels that internship opportunities would help advance future local government employees while interns would offer valuable support to the Town.
• Town Manager Hank Perkins has been in contact with faculty at Appalachian State University in regard to questions about hosting an intern in the near future.
• Town Council was receptive to participating in the internship programs.

XVIII. Discuss Nelon Garbage Services Agreement: Town Manager Perkins explained that there is a necessity to enter into a new agreement with Nelon Garbage Services.

• Town staff recommends that the new agreement span from the date of approval until the end of June 2025.
• The Town currently pays Nelon $17,600.00 per month for garbage pickup and disposal services.
• Prior to the end of the term, staff recommends advertising for bids for solid waste services in order to evaluate future options.
• Staff will be developing an agreement with Nelon for Council consideration at the regular November meeting.

XIX. Project Manager Updates: Project Manager Mike Dydula Presented the following Updates.

• Sewer: One thing that has come up is related to land boundaries. During the 2025 lake drawdown period, we will need to have an erosion control permit. There was a discussion regarding the fact that the Town has rights to go to 995 for any maintenance that is needed. The consensus was that the Town has a construction easement to 995.  The deed is what is needed to go to the state to demonstrate Town rights for maintenance. 
• Horizontal Drilling (HDD): HDD will not likely happen this drawdown period. This may be pushed to the following drawdown period.
• Future Proposals: LaBella is now working on the following year's work plan.
• Future Lake Drawdowns: 5 months of a drawdown is going to make it tough. Mr. Dydula would like Town Council to consider a more lengthy drawdown period.  
• 7) Dam: Ruby Collins and LaBella would like to avoid working on the dam. They will work through Schnabel engineering. 
• 8) Performance Bonds: Never secured performance bonds for the sewer project but will start getting these moving forward as a part of their design/build contracts.  
• Waste Water Treamtent Plant (WWTP): Have a tentative draft of the new TP and a presentation will be planned in the near future. 
• Reservoir Drain Project: A lot of work is taking place on this project.
• Change Order: $102,000 sewer change order for a valve that must be replaced.  This amount may go up $5,000-$10,000. It is a gate valve.  An 8-inch replacement valve has been ordered and will serve as a by-pass valve.
• NCDOT: Awaiting all staff comments.
• John Moore Property: Continued efforts to obtain an easement.
• Dredging: Will be submitting an extension letter to move forward on dredging.  Landon Davis is moving on with DEQ.  He is our Water Quality POC.

XX. Town Manager Updates:  Most items were previously discussed. 

XXI. Adjournment: The meeting was adjourned.