Town Council Work Session/Action Meeting Summary from February 28, 2024 and Recessed Until March 4, 2024

Thank you to those who joined us for the Town Council Work Session/Action Meeting on Wednesday, February 28, 2024 at 8:30 AM. The meeting was held in the Lake Lure Municipal Center at 2948 Memorial Highway, Lake Lure, NC 28746. The following is a summary of the meeting.  Note that these are not formal minutes which will be included in the following month's meeting packet.  You may download the meeting packet for additional information.

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

II. Agenda Adoption: The meeting agenda was adopted as written.

III. Public Comment: There were no public comments.

IV. Update from the Lake Lure Flowering Bridge in regard to the Education Center: 

Kathy Tanner, Chairperson for the Lake Lure Flowering Bridge (LLFB) Board provided Council with an update regarding the future education center. Charlie Ellis, Volunteer working with the LLFB Board joined the discussion and provided additional detailed information related to DEQ permitting for allowing a connection to the Town’s sewer system will also be included. They are looking for a copy of the easement for the line they plan to tap into and then hope to receive a prescriptive easement to allow the Flowering Bridge to tie in.  They will keep the Town Council advised of their progress. 

V. Dredging Presentation – Sandra Haynes, PE, LaBella Associates & Keith Gray, Integrated Lakes Management (ILM)

• Project Manager Mike Dydula provided an overview of the history of dredging including the scope, strategy, funding, permitting, engineering, and construction activities.
• There was a detailed discussion regarding dredging. 
• Sandra Haynes, PE, with LaBella Associates gave a presentation that detailed the engineering aspects for permitting, strategy, and design.
• Keith Gray with Integrated Lakes Management (ILM) discussed dredging operations and management and presented considerations.
• There was a lengthy discussion of possibilities and direction to develop the scope of areas of work to be performed to maintain the lake. 
• There was a consensus for the need for ongoing maintenance dredging to address the silt coming into the Lake from the Broad River while working toward a more significant dredging project with an expanded focus.   
• The next step is writing an RFQ to find an engineer to address the dredging needs for the Town. 

VI. Discuss Pool Creek Park Fence

• Parks, Recreation, and Trails Coordinator Dana Bradley advised that if the Pool Creek Park Fence remains in place, there will need to be necessary repairs made to keep it functioning. 
• However, staff recommended the removal of the fence altogether.
• This item was approved and the fence will be removed. 

VII. Discuss Youngs Mountain Trail: 

• Conserving Carolina is getting close to completing a parking lot and trail expansion project located on Youngs Mountain Trail.
• The trail is about 2.2 miles long.
• The non-profit organization has expressed willingness to donate the property the trail is on, once the trail is completed, to the Town.
• There was a brief discussion about taking ownership of property.
• Town Council approved moving forward with the plan to take ownership of the Youngs Mountain Trail. 

View from the top of Youngs Mountain Trail by Rose Lane

VIII. Update on the Boys Camp Road Parks and Recreation Trust Fund (PARTF) Repayment Process: 

• Town Manager Hank Perkins advised that the appraisal process for the repayment of the Parks and Recreation Trust Fund (PARTF) Grant for Boys Camp Road has been completed.
• The property value at the time of purchase exceeds the current property value, so the Town will need to repay the larger amount which is the original cost of $223,125.
• Repayment will come out of the General Fund this fiscal year.   
• Parks, Recreation, and Trails Coordinator Dana Bradley explained that the next step in the process is to announce a 30-day comment period followed by a public meeting and a resolution. 
• Mayor Pritchett noted that this needs to be advertised as soon as possible.
• The Town Clerk Olivia Stewman will speak with the Daily Courier to see when this can be advertised and the information will be shared broadly.

IX. Discuss Timeline for Hiring a Parks, Recreation, and Lake Director upon Dean Givens’ Retirement in July: 

• Parks, Recreation, and Lake Director Dean Givens will be retiring in July of 2024.
• Town Manager Hank Perkins presented an updated draft of the job announcement. 
• There was a discussion regarding the requirements and the timeline for recruitment and hiring of this position upon vacancy. 
• The goal is to have someone in the position in June 2024. 
• Town Council was supportive of the job description with the recommended refinements. 

X. Update on Chimney Rock Village Agreement to Operate Water System: 

• Mr. Perkins provided an overview of the Agreement to Operate Water System between the Town of Lake Lure and Chimney Rock Village. 
• It is set to expire on June 30, 2024.
• Chimney Rock Village has expressed their intent to not enter into a new agreement with the Town beyond this date.
• Instead, the Village will be working with a private firm to operate their water system.
• However, both the Town of Lake Lure and Chimney Rock Village would like to enter into a mutual aid agreement for the water systems moving forward.
• This draft Emergency Water agreement was included in the meeting packet for Town Council Review prior to the next Regular Town Council Meeting.

XI. Discuss Wastewater Treatment Plant (WWTP) Replacement Financing: 

• Town Manager Hank Perkins and Finance Director Stephen Ford led a discussion on options for financing the future wastewater treatment plant.
• The cost is estimated to be at least $30 million.
• There was a discussion regarding financing this project through a revenue bond, but an analysis and rate studies must be completed to determine if sewer rates will cover the bond for the LGC approval. 
• Mr. Ford provided an overview of the revenue bond process and there was a discussion regarding various options.
• Mr. Perkins recommended that a revenue bond is the best option for funding it at this point.
• He will be talking with financial advisors and rate-setting specialist on how they can help us in the future.
• There was a discussion about the possibility of a tourism/recreational-based fee (bed tax) to help as well though a tourism tax would require discussions with the general assembly.
• Town Council was in agreement with pursuing various options discussed.

XII. Review Zoning and Planning Board Recommendations for Lake Structure Accessory Storage Closets and Amendment to 36-64 (f) (5): 

• At their February 20th meeting, the Zoning and Planning Board made two recommendations to be reviewed by Council.
• The first recommendation is related to lake structure accessory storage closets, which are not current addressed in the regulations.
• The Board’s first recommendation is as follows:
• To add “Accessory storage closet means an exterior located, enclosed space on a dock, pier, or covered boat slip, used for permanent or temporary storage” to Section 6-48 (“Definitions”); and to add a new subsection 8 to Section 6-51 (“Design and Construction Standards”) to state “Accessory storage closets shall not exceed 50% of the area of a dock, pier, or covered boat slip or 144 square feet, whichever is less; shall have no utilities other than electrical that is inspected and approved by the county building inspector, shall not be rooftop located and shall not be used as living space” and to renumber the remaining subsections accordingly.
• The second recommendation is amend Zoning Ordinances Section 36-46 (“CG Commercial General District”), Subsection (f) (“Front, Year, and Side Yard Requirements” subsubsection (5) as follows:
• (5) Where the lot abuts upon property used zoned for residential purposes, a buffer strip shall be provided along the side and/or rear lot line of such abutting residential use zone. If a fence or wall is used, such fence or wall shall be opaque and not less than eight feet in height. If a planted buffer is used, such buffer strip shall be not less than eight feet in width and shall be composed of evergreen trees or shrubs which at planting will be at least four feet high and at maturity will be not less than eight feet high. This requirement may be modified by the board of adjustment where sufficient natural buffering exists.
• There was consensus for support.

XIII. Discuss Lake Structure Condemnation: 

• Development and Environmental Review Specialist Rick Carpenter advised that a lake structure within Quail Cove was recently thrown by wind approximately 50 ft. from its anchorage and struck at least two other structures before landing on a pontoon boat.
• The Rumbling Bald on Lake Lure Security Staff alerted him to the issues.
• Due to lack of followed regulations or oversight, it was determined that the boat slips that were intended to secure the structure were not in compliance with various regulations.
• There are a number of ordinances that relate to the issue, which are detailed within the full Department Memo.
• Upon analysis of the evidence in the field, it was determined that a larger problem existed and all of the Quail Cove cluster moorings are out of compliance and are a clear hazard.
• Staff feels that immediate action should be taken by Town Council.
• Property owners attended the meeting and participated in the discussion.
• It is the staff’s opinion that these non-engineered and non-conforming structures may pose an imminent risk to life and/or property.
• Staff recommends the two slips that appear to have been destroyed by the wind event and a third that is warped to be condemned by the council and removed from the waters of Lake Lure.
• As for the remainder of the non-conforming metal slips with covers, staff recommends the Council require property owners to obtain engineered letters stating they are code-compliant and safe regarding wind loads or be removed from the lake.
• Town Council recommends condemning the three damaged structures and sending a letter to the owners of the remaining structures requiring property owners to obtain engineered letters stating they are code-compliant and safe regarding wind loads or be removed from the lake.
• Mike McPhearson is the president of the Homeowners Association and explained that he has resided at the property for 21 years and he advised that he has never been told that the structures were out of compliance. 
• Owners will have 90 days to remove, 30 days to appeal with documentation on why you should be allowed to maintain it, or with certified by an architect, or third - replace every piece without a cover.
• Owners of the remaining structures will have 6 months to get an engineered letter attesting to the safety of the structures, ensuring the wind load is safe to be in the lake.
• Community Development Mike Williams explained that the covers are not permitted however these were actually grandfathered in when he arrived.  

XIV. Discuss the Comprehensive Plan: Discussed during the Recessed Meeting on 3/5/24.

• Town Council was recently provided with copies of the 2007-2027 Comprehensive Plan and tasked with reviewing the plan in order to identify necessary changes or updates.
• Council discussed their findings and recommended steps towards updating the plan and preparing for the future Comprehensive Plan, as the current plan comes to an end in three years.
• It was recommended that the 2015 Update to the Comprehensive Plan will be reviewed at the same time. 
• The Boards will be asked to review their respective sections of the Comprehensive Plan. 
• Town Council considered calling a special work group meeting or will begin at the next work session, if time permits. 

XV. Update on Audit Bidding Process: 

Finance Director Stephen Ford provided an update on the audit bidding process. There are currently two interested parties. The current audit is going well. 

XVI. Discuss Amendment to Lake Lure Tours Concession Agreement: 

• There have been previous discussions in regard to removing the Lake Lure Tours (LLT) Concession Agreement provision to open the beach following Labor Day for unsupervised access.
• Town staff and LLT recommended the following amendment to Section 3 (“Hours of Operation”) of the Concession Agreement:
• 3. Hours of Operation LLT shall, with the approval of the Town, establish its hours of operation. The Marina shall be open and staffed during all times that the boat tours are operating, with the exception of "after hours" special tour boat events such as Dinner, Sunset, and Special Event cruises. The established hours of public admission use of the beach shall be from 10 a.m. through 6 p.m. daily, Memorial Day through Labor Day. The Beach will be opened daily from 9 a.m. to 5 p.m., from two weeks after Labor Day until one week prior to annual lake draw-down, and remain closed onward until Memorial Day without admission fee.
• Unless otherwise approved in advance by the Town, all Facilities will be closed from 11 p.m. to 6 a.m.
• Following the closing of the beach during normal business and off-season hours, the pavilion and a portion of the beach will be available for rent by individuals, groups and organizations. Scheduling and arrangements for rental of the pavilion and a portion of the beach will be reserved and coordinated through LLT.
• This change is encouraged by local police.
• The amendment was approved.

XVII. Discuss Town Water SCADA System: 

• Public Services Director Dean Lindsey reported that he recommends adding a Supervisory Control and Data Acquisition System for remote control and monitoring of the Town’s water supply system.
• This platform will be expanded in the future for controlling and monitoring the sewer systems also.
• A budget amendment will be required at a later date for $180,000.

XVIII. Discuss Water System Consolidation: 

• Mr. Lindsey advised that he is working to cross-connect the 80 Well system to the downtown water system, and consolidate the Lake Lure water system with the Fire Fly Cove water system into 1 permitted system.
• Mr. Lindsey confirmed that SCADA will help with monitoring water usage and estimates a cost of about $150,000.
• A budget amendment may be required at a later date.

XIX. LaBella AIA Project Adjustments to Proposal for Engineering Services: 

• Mr. Perkins advised that in October 2022, Town Council approved LaBella Associates’ proposal for preliminary scope of the Asset Inventory and Assessment (AIA) Project.
• This scope included overall project management and field observation, data review, analysis, and condition assessment, preparation of the final report, bathymetric survey, and GIS license for the Town.
• The total lump sum for these items was $124,300. In addition, the T&M phase included CCTV inspection and smoke testing for $75,700 total.
• After the adoption of Resolution No. 23-02-14B Accepting American Rescue Plan Funding for Subaqueous Sanitary Sewer AIA in February 2023, LaBella was authorize to act on proposed services.
• Since then, the Town chose to conduct a portion of the previously-scoped LaBella effort, while LaBella’s efforts have been focused on GIS development and support, and completion of the bathymetric survey.
• In recent discussions, it was determined that a portion of the grant funding accepted under Resolution No. 23-02- 14B will be unused unless reallocated to additional tasks not previously scoped.
• LaBella anticipates invoicing only portions of scope items 1 and 2 (Project Management and Data Review / Analysis), and not invoicing scope item 5 or the T&M scope items at all.
• As a result, the following scope items are therefore proposed to be added:
• The Town will spend $20,000 (10% - the maximum portion of the grant allowable) on software and/or equipment.
• LaBella will send a GIS technician to the Town to work with and train the Town’s field personnel to collect land-based manhole and sewer data for one full week.
• LaBella will perform the necessary research to determine if easements exist for the land-based sewers.
• Town Council expressed support for the project. 
• Mr. Perkins explained that we did a 200,000 AIA grant with NC which is going under-utilized if we do not change the scope because there were efficiencies identified.
• The change order is net zero as we learned that we did get AIA for the water system and the $1 million forgivable loan for lead service line with an October deadline.
• This will come to the next Regular Town Council Meeting for review. 

XX. Update on Fiscal Year 2024 Rehabilitation of High Hazard Potential Dams Funding Opportunity: 

• Communications Director Laura Krejci advised that on February 7, 2024 the NC Department of Environmental Quality's Dam Safety Office invited the Town of Lake Lure to apply for the Fiscal Year 2024 Rehabilitation of High Hazard Potential Dams (HHPD) Grant.
• These grants require a 35% match.
• Mrs. Krejci consulted with Schnabel Engineering and submitted an application package to the NC Dam Safety Office on February 22, 2024 for a Detailed Design for the replacement dam.
• BACKGROUND: The Town was invited to submit an application for the FY24 FEMA High Hazard Potential Dam (HHPD) Grant by the NC Dam Safety Office on 2/8/24.
• The Town of Lake Lure submitted an application package for the detailed design phase (Work Order 10B) for the replacement for the Lake Lure Dam on 2/22/24.
• The total cost of this project is ($3,500,000).
• The Town of Lake Lure’s match for this grant opportunity is 35% match, ($1,225,000).
• The Town has applied for the remaining 65% ($2,275,000) in grant funding.
• The FEMA HHPD Grant Process requires recipient to pay for the project upfront.
• When the project is complete, all invoices will be submitted to the NC Dam Safety Office through a prescriptive process.
• Once approved, the Town will be reimbursed for amount of the grant funding that is approved.
• The cost will be over three years as follows. Year 1: $2,050,000 Year 2: $1,050,000 Year 3: $400,00

XXI. Fire Apparatus Appropriation Request to the General Assembly: 

• Mr. Perkins and Fire Chief Dustin Waycaster explained that at a previous work session and action meeting, Town Council met with The Policy Group and it was determined that the Town would like to request an appropriation for either a fire apparatus or a future fire facility during the 2024 short legislative session.
• Chief Waycaster has a draft letter prepared with the help of The Policy Group to send to legislators Jake Johnson and Tim Moffitt.
• It has been determined that the best course of action is to request an appropriation of $925,000 for the fire apparatus during the upcoming short session.
• The plan also includes a future request to the general assembly next year for consideration of assistance with the future public safety facility.
• It was noted that a Capital Improvement Fund has been established for the Fire Department.
• He is also working on a grant for $30,000 for fire equipment.  The grant requires a 50% match.  
• Town Council was supportive of sending the letter and the grant request forward. 

XXII. Project Manager Updates: Discussed at the Recessed Meeting on 3/5/24.

1. Reservoir Drain: Project manager Mike Dydula explained that the project is largely on schedule, however, the Navy Defense Priorities Allocations System (DPAS) is holding up a project. The President of Steel Fabricator in Massachusetts reached out and advised that our valve will be built to maritime standards.  This is for the jet flow valve. The goal is for the project to be completed by 9/20/24. 
2. Inspection of the Tainter Gates at the Dam: Schnabel Engineering is conducting an inspection of the Tainter Gates at the Dam, as shown below. 

Tainter Gate Inspection at the Lake Lure Dam March 2024

     3. Sewer System: Mr. Dydula advised that he was working to set up a meeting with Ruby Collins to establish the next steps and details by April 1, 2024.  Two things they need to focus on are the deep water access and improving the laydown area. He noted that the laydown area needs improvement. Town Council expressed their need to participate in a meeting with Ruby Collins.  A tentative date was set for 3/19/24 at 1:00. 

         There was a discussion about the use of the Freeman Ramp but Mr. Dydula explained that this was not adequate.  He had hoped there was a way to add deep water access on the other side of the dam to avoid having to drive over the bridge with a heavy load.  

          There was a conversation about the Guaranteed Maximum Price (GMP) contract the Town has with Ruby Collins. Town Council expressed dissatisfaction with the fact that Ruby Collins was paid under a GMP contract to complete installation of the casings on North side of Sunset Cove and they were not completing that work this drawdown season.  Mr. Dydula explained his previous discussion with Town Council where it was explained that Ruby Collins was not able to complete the work while the Lake levels shifted to accommodate the work of Morgan Company on the Reservoir Drain Project.  He clarified that the work they had been paid was for the materials associated with the project. There was a lengthy discussion and Town Council expressed their dissatisfaction with the situation. 

     4. Dredging: Town Council expressed frustration that no dredging had taken place this year.  They asked if some mechanical dredging could be conducted this year. There was a lengthy discussion about the possibilities and the requirements. Town Council made it clear that maintaining navigable channels was critical and dredging in the marina and Fire Fly Cove were important.

    5. Slope Issues with Home Demolition in Tryon Bay:  Mr. Dydula explained that slope issues had emerged since the demolition last year.  There was a discussion about how best to address the situation to stabilize the property before it was sold.  Mr. Dydula estimated it would cost a couple of thousand dollars to fix the issues that were thought to be the result of erosion from rain and the weather, not from the home demolition.  Attorney William Morgan stated that if removing the house caused the conditions to worsen, it would need to be proven with compelling evidence for the town to be liable, but it seems clear that a rain event caused it.  Mr. Morgan noted that he has not heard from the tax foreclosure attorneys lately and he will give him a call to see where they are in the foreclosure process.

If someone bought the property, they would have to fix it in order to construct a new structure.  The purchaser would buy with that understanding. The town does not own the property, the county does, but the town owes taxes on it.   Mr. Morgan noted that the Town needs to do something quick, if they are going to do anything else to it while we have the lean against the property. It is not listed for sale – as soon as the town removed it – the county almost immediately started the tax foreclosure – they did not want to do it while the house was still there. Mr. Morgan will try to expedite the foreclosure attorneys. After they are done, there will be an auction.

    6. Lake Structure Demolitions: Mr. Dydula noted that a lot of properties have safety concerns with the dam marina being one.  He advised that he and the engineers rode on the lake and noted that there were a couple dozen of houses that were in very bad condition. Mr. Carpenter noted that Community Development has a list of these properties. There was a discussion about how best to address these situations.  It was noted that the building code is not helping, but state statute does. Building code does work with asbestos, but abstains with enforcement of removal.

      Mr. Carpenter stated that he has it worked out with the state and federal offices.  He noted that he got a call that a structure had collapsed in Yacht Island.  He has been working on this case for a while and the owner was supposed to get it repaired.  He explained that our ordinance would not let him do it the way he wanted, so he said he would do it in thirds. He said that an engineer needs to determine that it is safe and stable during this first phase.  He noted that there is a list of structures for condemnation that will be coming to Town Council soon.

Town Council directed the attorney authority to seek injunctive relief for abatement as he sees fit. 

XXIII. Town Manager Updates: Discussed at the Recessed Meeting on 3/5/24.

1. Lake Lure and Chimney Rock Village (CRV) Connect. Mr. Perkin explained that this project with Foothills Regional Commission is a feasibility study of the crosswalk between Lake Lure and CRV. This is not the Riverwalk, discussed previously which will never be funded by the state because it could not be affordably ADA compliant. There was a discussion about what CRV does beyond the crosswalk beyond CRV was their responsibility.  It was noted that CRV has gotten designs for extending the river walk, but these two things are mutually exclusive. Part of the study will determine the best location for the connection.

2. Master Planning.  Mr. Perkins advised that he was continuing to work on a process for master planning for the Green Space now that the location for the future Public Safety Building. He mentioned that the plan is still in place for stream restoration with Equinox when the timing is right. The Master Plan for the green space will include a buffer for the stream. He noted that the Morse Park Phase I Improvements remain a priority and he hopes to have worked through the issues with the NC Water Resource Division so we could begin applying for grants again. 

3. Lease agreement. Mr. Perkins advised that Attorney Morgan was finalizing the language in the lease for repairs. Dean Lindsey is assessing the current appliances. Council discussed that the landlord should have some responsibilities. Mr. Morgan added that this is common for maintenance is typical in commercial leases. Mr. Perkins advised that this will be sent back to the future tenants and he hopes to get the revised lease back to Town Council for review.  There was a discussion regarding other requests, including the deck.  He said the Town has to give notice for the lease at a regular meeting at least 30 days prior.  Mr. Perkins will be working closely with Attorney Morgan and the leasees to finalize the draft lease. 

4. Workforce housing. Mr. Perkins provided an update on the site visits that he, Mike Williams, and Neil Gurney made to identify property for a future workforce housing model home. He advised that they were looking at Boys Camp, Washburn, the corner of Island Creek Road and Highway 9 for a site for the model home.   

XXIV. Closed Session

In accordance with G.S. 143-318.11 (a) (5) for the purpose of discussing property acquisition and G.S. 143-218.11 (a) (3) for attorney-client privilege.

XXV. Adjournment