Lake Lure Regular Town Council Meeting Summary - March 11, 2025

Thank you to those who joined us for the Town of Lake Lure Regular Town Council Meeting on Tuesday, February 11, 2025, at 5:00 p.m. 

• The meeting was held at Legends at Rumbling Bald, 153 Mountains Blvd. Lake Lure, NC 28746. 

• The public was invited to attend the meeting. 

• This is a summary of the meeting for those who were unable to attend. These are not formal minutes which will be included in the next month's meeting packet.

I.     Call to Order 

• Mayor Carol Pritchett called the meeting to order. 
• Commissioner Jim Proctor led the Pledge of Allegiance.

II.     Agenda Adoption

The agenda was adopted as posted. 

III.     Mayor’s Communication

Mayor Pritchett thanked everyone for attending the meeting. 

IV.    Town Manager's Communication

Town Manager Olivia Stewman shared the following updates: 

• The Reservoir Drain project is coming to completion. The plan is to test the valve at the end of the week. 
• The Town of Lake Lure Fire Department has been working to begin consolidating with the Fairfield Mountains Fire Station.  This integration process will begin in April and the consolidation will become official in July 2025. 
• Please be sure to register for Everbridge to receive emergency notifications.
• Hope for NC Health and Human Services Mental Health Services are available for FREE in our community. 
• The Town has signed a contract with the Foothills Regional Commission to support our update of the Comprehensive Plan.  This process will begin in the new Fiscal Year, July of 2025.  There will be multiple ways for the public to provide Public Meetings, mail-in surveys, etc. 
• Ms. Stewman thanked the Greenville Rotary Club for inviting her to share updates on Lake Lure's Storm Recovery process.  
• For additional details, you may review the Department Head Updates on page 5 of the Meeting Packet. 

1) Council Liaison Reports and Comments

• ABC Board: Commissioner Scott Doster advised that the ABC store is staying store hours, 12:00pm-7:00pm on Monday through Saturday.  

• Board of Adjustments. New Officers are being sworn in.  There is one case under review which carried over from a year ago. 

• Parks and Recreation Board: Jim Proctor advised that the Parks and Recreation Board has not met.  The next meeting will be on April 3, 2025, at 1:30 at the Legends on Lake Lure.  There are about 64 volunteer hours recorded and possibly 100 plus hours unrecorded. He reiterated that the subsurface of the Lake is dangerous and it is a safety concern.

• Lake Advisory Board: Commissioner Dave DiOrio advised that the primary concern of the Lake Advisory Board is the health of the Lake. Over 80% of the surface debris has been removed and the quality of the water is better than expected. Sediment needs to be removed as there could be potentially harmful items that could leak into the Lake or cause safety issues. We are concerned with potential injuries or damages that could be caused and this is why the Lake is closed. On the positive, things are getting better.

• Zoning and Planning Board: The Zoning and Planning Board met February 18, 2025 where they reviewed Storm Recovery Updates. New officers will be voted on at the next meeting. The Board will be actively involved with the updates on the Comprehensive Plan.  

• Advisory Board Luncheon - Mayor Pritchett advised that there will be an Advisory Board Member Luncheon and Training Meeting on 4/3/25 at Legends at 12:00. Board members will be receiving an invitation to this lunch meeting.

VI.     Consent Agenda

A.   Approval of the February Minutes

* The consent agenda was approved. 

VII.     Unfinished Business

There was no unfinished business.

VIII.     New Business

A.  Private Property Debris Removal Program Presentation: 

A representative presented an overview of the United States Army Corp of Engineers USACE has launched a private property debris removal program. USACE has contract with Aerostar to assist with this program. Gabby Allerton with Aerostar will provide an overview of the program and will be available to answer questions. For more information, visit https://www.townoflakelure.com/community/page/storm-debris-after-helenep....

B.  Internal Controls- Policy Review and Requested Adoption: 

The Town’s acceptance of ARPA funds requires adoption and implementation of an Internal Controls Policy as of a part of Uniform Guidance guidelines. The recommended policy can be utilize as part of the Town’s overall procurement and purchasing policy.

* The following policy was approved.

The Town’s acceptance of ARPA funds requires adoption and implementation of a Conflict of Interest Policy as of a part of Uniform Guidance guidelines. The recommended policy can be utilized as part of the Town’s overall procurement and purchasing policy.

Internal Controls Policy Effective Date: March 12, 2025

1. Purpose The purpose of this Internal Controls Policy is to establish a framework for managing the operations of Town of Lake Lure in a manner that ensures the integrity, accuracy, and reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

2. Scope This policy applies to all employees, contractors, and third-party service providers involved in the financial reporting and operational activities of Town of Lake Lure.

3. Objectives The primary objectives of internal controls at Town of Lake Lure are to:

• Safeguard company assets and resources.
• Ensure the accuracy and reliability of financial records and reporting.
• Promote compliance with applicable laws, regulations, and company policies.
• Promote operational efficiency and effectiveness.
• Prevent and detect fraud, errors, and irregularities.

4. Key Components of Internal Controls To achieve these objectives, Town of Lake Lure has established a set of internal control components, including:

a. Control Environment

• Establish a culture of integrity and ethical behavior.
• Clearly define roles and responsibilities.
• Ensure appropriate oversight and governance.

b. Risk Assessment

• Identify and assess risks that could affect the achievement of objectives.
• Continuously evaluate the internal and external risks impacting the organization.

c. Control Activities

• Establish policies and procedures to mitigate identified risks.
• Ensure proper authorization and approval of transactions.
• Segregate duties to prevent conflicts of interest and errors.

d. Information and Communication

• Ensure timely and accurate reporting of financial and operational information.
• Maintain open communication channels to ensure employees are informed of control procedures. e. Monitoring Activities
• Regularly evaluate the effectiveness of internal controls through audits, reviews, and ongoing monitoring.
• Take corrective actions as necessary to improve control processes.

5. Control Responsibilities

• Management: Responsible for designing and implementing internal controls, evaluating risks, and ensuring compliance with this policy.
• Employees: Responsible for adhering to internal control procedures, reporting irregularities, and participating in training programs.
• Internal Audit: Responsible for evaluating the effectiveness of internal controls and providing recommendations for improvements.

6. Control Procedures To ensure effective internal controls, Town of Lake Lure follows these key procedures:

• Segregation of Duties: Duties are separated among different individuals to reduce the risk of errors or fraudulent activities.
• Authorization and Approval: All transactions must be authorized by the designated individuals before execution
• Access Control: Limit access to financial systems and sensitive data to authorized personnel only.
• Reconciliation: Regular reconciliation of financial records to identify discrepancies and ensure accuracy.
• Documentation and Record Keeping: Maintain detailed and accurate records of all financial transactions and business operations.
• Employee Training: Regular training sessions will be conducted to ensure employees understand and follow internal control procedures.

7. Compliance and Enforcement All employees are required to comply with this policy. Violations of this policy may result in disciplinary actions, including termination of employment, depending on the severity of the violation.

B. Review and Updates This policy will be reviewed annually by the management team and updated as necessary to reflect changes in regulations, business processes, or risk assessments.

C. Conflict of Interest- Policy Review and Requested Adoption: 

The Town’s acceptance of ARPA funds requires adoption and implementation of a Conflict of Interest Policy as of a part of Uniform Guidance guidelines. The recommended policy can be utilize as part of the Town’s overall procurement and purchasing policy.

* The policy on pages 73-95 of the meeting packet was approved.

D. Resolution 25-03-11 for Revenue Replacement Loan

The NC State Treasurer has offered a revenue replacement loan allowing the Town to obtain funds to be used for revenue replacement.  

PURPOSE: For good and valuable consideration, the adequacy of which is hereby acknowledged, this loan agreement (“Agreement”) is hereby entered into by and between the State of North Carolina, by and through the North Carolina Department of State Treasurer (“NCDST”), and the Town of Lake Lure, North Carolina (“RECIPIENT”) (referred to individually as Party and collectively as “Parties”) to provide NCDST cashflow loans for disaster response activities to local governments, in accordance with Section 4E.5. of North Carolina Session Law 2024-53, as modified by Section 1F.1 of North Carolina Session Law 2024-57 (together, as amended, the “Authorizing Act”).

. EFFECTIVE TERM: This Agreement shall be effective as of the latest date of signature below (“Effective Date”) and, subject to Section 15, shall terminate upon full repayment of the loan proceeds to NCDST, unless earlier terminated pursuant to Section 9.

2. NCDST’S DUTIES & PAYMENT PROVISIONS: NCDST shall loan RECIPIENT a total of $3,423,122.89 to pay for RECIPIENT’S disaster response activities as set forth in FEMA Public Assistance Worksheets. This principal-only loan does not carry interest charges or administrative fees. Upon signature of this Agreement by the Parties, the funds will promptly be transferred to RECIPIENT via wire/ACH transfer to the RECIPIENT’S account, pursuant to the written bank wiring instructions that RECIPIENT must submit to the NCDST as provided in Section 3.a. below.

3. RECIPIENT’S DUTIES AND REPRESENTATIONS:

• a. As soon as reasonably practicable following its receipt of this Agreement, RECIPIENT shall provide each of the following to NCDST:
  • (a) a certified copy of a resolution authoring execution of the Agreement and Promissory Note in the form set forth in Attachment A;
  • (b) an executed copy of this Agreement;
  • (c) an executed Promissory Note in the form set forth in Attachment B; and
  • (d) the completed NCDST Hurricane Helene Cashflow Loan Program Wire Form enclosed as Attachment C, signed and certified by the appropriate official of RECIPIENT.
• b. Before and during the term of this Agreement, RECIPIENT will use or has used loan proceeds to cover expenditures for disaster response activities, which may be expenditures that are eligible for reimbursement by the Federal Emergency Management Agency (FEMA) Public Assistance Program, National Flood Insurance Program , or other federal reimbursement program.
• c. Both NCDST and RECIPIENT agree that this Agreement shall be interpreted as to not diminish or impair RECIPIENT’s eligibility to secure FEMA or related recovery funding support.
• d. RECIPIENT shall make every reasonable effort to seek reimbursement from the federal government for expenditures that will be temporarily covered by loan proceeds under this Agreement.
• e. Notwithstanding the Repayment Terms as stated on Page 1 of this Agreement, if RECIPIENT receives funding support from the federal government for expenditures covered under the FEMA Public Assistance Worksheets used as the basis for this Agreement, RECIPIENT shall repay NCDST the equivalent amount of loan proceeds within five (5) business days of receipt of the federal funding support.
• f. RECIPIENT agrees that loan proceeds received through this Agreement shall be accounted for in a separate fund and accounting structure within RECIPIENT’s central accounting system. RECIPIENT agrees to manage all accounts payable disbursements, check register disbursements, and related transactions in a detailed manner that supports fully transparent accounting of all financial transactions associated with loan funding allocations described in Section 2 of this Agreement. RECIPIENT understands and acknowledges the total direct loan funding level available under this Agreement is $3,423,122.89.

* The resolution was approved. 

E. Notice of Violation Appeal NOV2024046 

Development and Environmental Review Specialist Richard Carpenter issued a notice of violation on February 3rd, 2025.

• This NOV was issued after the applicant failed to bring their site into compliance following multiple violations.
• Per the applicant, the majority of the violations were not a result of Hurricane Helene but were the result of poor site management by a subcontractor.
• The most recent citation was issued for failure to maintain erosion control, and deviation from the approved plans.
• The deviation was deemed significant by staff and the site is still out of compliance.
• The applicant was first warned on non-compliance on 10/4/2024 but failed to act even though construction is ongoing at the site.
• Per town ordinance and Article 4 of the Sedimentation and Pollution Control Act of 1973:  Sec. 22-31.
  • Responsibility for maintenance. During the development of a site, the person conducting the land disturbing activity shall install and maintain all temporary and permanent erosion and sedimentation control measures as required by the approved plan or any provision of this article or the Act or any order adopted pursuant to this chapter or the Act.
  • After site development, the landowner or person in possession or control of the land shall install and/or maintain all necessary permanent erosion and sediment control measures, except those measures installed within a road or street right-of-way or easement accepted for maintenance by a governmental agency. (Code 1989, § 96.13; Ord. of 6-12-2007) 
  • Sec. 22-32. Additional measures. Whenever the erosion control officer determines that significant sedimentation is occurring as a result of land disturbing activity, despite application and maintenance of protective practices, the person conducting the land disturbing activity will be required to and shall take additional protective action.
    The erosion control officer shall have the authority to suspend the land disturbance permit and any certificate of zoning compliance until such protective action is taken. (Code 1989, § 96.14)

The property owner presented his case. There was a lengthy discussion.  Discussed an extension for 30 days.

* Town Council suspended the notice of violation to 4/3/25. 

F. Storm Recovery Updates: 

1) West end sewer system project: This project impacts 20 customers beyond the Memorial Bridge, began this week.  The project is expected to take up to four months. Some customers may be able to get connected sooner. 

2) FEMA projects: The Town has been advised that two projects have been approved by FEMA and we estimate we will receive $1.5 million in reimbursements. Once this information has been made official the details will be shared. 

3) Proctor Road Repairs: Estimates for repairs have been received from contractors.

IX.     Public Comment

The public was invited to speak. Please keep comments limited to three minutes or less.  Comments may also be submitted in writing to the town clerk, kmartin@townoflakelure.com at least one hour prior to the meeting.

• Bob Mitchell (332 Snug Harbor Circle): Mr. Mitchell that he was impressed with the work that has already been done. Although there has been some minor damage to properties, he hopes that more attention will be given to the sewer lines.  He added that that property owners could possibly help by moving debris from their property.He was concerned as he thought he did not have enough time and was confused by the letter he received. Community Development Director Mike Williams spoke with him and apologized for any confusion with the letter.  He advised that they could meet so he could clarify the options he had regarding free demolition of his lake structure.   

Mayor Carol C. Pritchett thanked everyone for their comments! Advised that next month Town Council would be meeting downstairs on the terrace.

X.      Adjournment

The meeting was adjourned.