Town Council Special Meeting and Work Session Meeting Summary - Wednesday, September 27, 2023

Thank you to all who attended the Lake Lure Town Council Special Meeting followed by a Work Session Meeting on Wednesday, September 27, 2023.  The public was invited to attend.  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 formal meeting minutes will be included in the following month's Regular Town Council meeting packet.  

You may download the meeting packet for the Special Meeting here.    

You may download the meeting packet for the Work Session Meeting here.   

Town Council Special Meeting Agenda Items

I. Call to Order:  Mayor Carol Pritchett called the meeting to order.  She thanked everyone for attending the meeting.  

II. Review and Consider Approval of Indemnification Clause between the Town of Lake Lure and Morgan Corporation:  

• Project Manager Mike Dydula explained that Morgan Corporation is set to begin installing the Reservoir Drain Valve within upcoming months.
• The Town has obtained verbal permission to be on the properties of two private property owners for purposes of accessing the Dam, staging of equipment and supplies, and other purposes consistent with the installation of the Reservoir Drain.
• Town Manager Hank Perkins and Town Attorney William Morgan advised that the Town was in the process of obtaining written Temporary Construction Easements from the necessary property owners.
• Morgan Corporation may need to be on the properties in order to begin its work prior to the execution of written Temporary Construction Easements so as not to delay the project.
• Thus, Town staff recommends agreeing to indemnify, defend, and hold Morgan Corporation harmless from any claims of the property owners grounded in Trespass or for damage to real property and related causes of action.
• Town Attorney William Morgan drafted an Indemnification clause that would solidify that the Town will indemnify, defend and hold Morgan Corporation and its officers, agents, employees and subcontractors harmless and assume any and all liability for any trespass claim or action for damage to real property or relating to potential easement issues that may arise in the performance of the Lake Lure Reservoir Drain project by Morgan Corporation.
• Attorney Morgan clarified that approval and execution of the Indemnification clause shall survive completion of the Reservoir Drain project remaining in full force and effect until any applicable statutes of limitation have expired. 
• There was a discussion regarding the matter and Town Council approved the indemnification clause with Morgan Corporation.

III. Consider Adoption of Resolution No. 23-09-27 Authorizing Temporary Construction Easement for the Reservoir Drain Valve Installation Project: 

• In conjunction with the Indemnification Clause, Town Attorney William Morgan has drafted the Temporary Construction Easement for the Reservoir Drain Valve Installation Project.
• The Temporary Construction Easement is between the Town and the property owners of the John Jackson Hunt Estate (Parcel Id. 226751).
• The purpose of the easement is to establish “lay down areas” along the access road to the base of the dam where the installation of the reservoir drain will occur and such lay down area is where various components of the reservoir drain will be stored and assembled, as well as equipment needed for the same. Resolution No. 23-09-27 authorizes the Temporary Construction Easement.
• The resolution was adopted.

IV. Adjournment: The Special Meeting was adjourned and was followed by the Work Session. 

Town Council Work Session  Agenda Items

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

II. Agenda Adoption: The meeting was approved as written.

III. Review Zoning and Planning Board Recommendation for Soil and Erosion Control Ordinance: 

• Community Development Director Mike Williams advised that the Town is required to include language in the Code of Ordinances based on North Carolina’s model ordinance for soil erosion and sedimentation control.
• The Zoning and Planning Board reviewed requirements at their August 15th meeting and recommended that Town Council adopt the November 2021 NC Department of Environmental Quality’s sample Erosion and Sedimentation Control ordinance, with the addition of the Town’s existing and higher thresholds for the minimum area of disturbance requiring an approved plan and permit, as the Town’s new Chapter 22 Erosion and Sedimentation Control ordinance.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

IV. Finance Presentation for Vehicle Insurance Savings: 

• Mr. Perkins advised that Town Staff recently discovered that various Town vehicles had remained on the Town’s insurance policy despite being sold and no longer under the Town’s ownership.
• Since this discovery, Finance Director Steve Ford advised that the Finance Department has worked towards removing all former Town vehicles from the Town’s insurance policy.
• Finance Director Stephen Ford presented a synopsis of the cost savings for vehicle insurance.

V. Discuss Advertising a Request for Qualifications (RFQ) for Audit Contract: 

• Finance Director Ford discussed the possibility of advertising for RFQs for the auditing contract in the future.
• The Town has worked with Martin and Starnes Associates for an abundance of years and it is standard procedure to change audit firms periodically to ensure a variety of practical insights.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

VI. Discuss Chimney Rock Village (CRV) Water Agreement: 

• Mr. Perkins explained that the Town is in a holding pattern this year with the current agreement with CRV.
• After approving a previous extension of the Agreement to Operate the Water System between the Town and Chimney Rock Village, the Agreement will officially expire on December 31, 2023.
• Town staff has been working on drafting a new water agreement that will begin in 2024.
• The new draft includes various amendments to the original agreement, as well as updated cost estimates.
• Mr. Perkins has been in contact with CTV Administrator Stephen Duncan and has provided him with the Town’s latest proposed draft agreement and cost estimates.
• There was a discussion regarding the cost involved in the agreement.
• The Town will generate a temporary rate that will be charged each month but at the end of the Fiscal Year.
• The Town will work with the auditing firms to provide an audited figure of the actual costs to the Town to administer the program.
• Based on this calculation, the Town will either credit CRV or bill for the difference that has been paid. 
• It is anticipated that the new agreement will begin 7/1/24, the beginning of the next Fiscal Year.

VII. Discuss Emergency Communications: Mr. Perkins advised that historically the Town has been somewhat conservative in sending Everbridge Emergency Notifications. We have discussed this following the recent sewer line break when the lake had to be lowered.  The Town has consensus moving forward that Everbridge will be utilized to send out notifications when the lake has to be lowered, during power outages, road blockages, and other emergencies.

VIII. Review Proposed Electric Vehicle Ordinance Amendment: 

• Police Chief Sean Humphries explained that signage for the Town’s electric vehicle (EV) charging station specifies a limit of two hours of parking and charging station usage.
• Code of Ordinance Section 30-62 details regulations regarding parking and use of electric vehicle charging stations, but does not include the specified time limit displayed on signage.
• In order to make such time limit enforceable, Town staff is recommending the addition of the specified time limit under Section 30-62 (e) of the Code of Ordinances.
• Furthermore, staff is recommending that the time limit be increased from two hours to four hours.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

IX. Discuss Recusals:

• Mr. Perkins and Town Attorney William Morgan led a discussion regarding rules and procedures for recusals from voting. 
• There are very few instances which people can be recused and Mr. Perkins wanted the Town Council to be aware of the requirements and procedures for recusal. 
• It was recommended that this information be reviewed with the Advisory Board Members.

X. Discuss Additional SRF Loan: 

• Mr. Perkins advised that the Town received a letter from the State Water Infrastructure Authority (SWIA) regarding the approval of the Subaqueous Sanitary Sewer Replacement (SASS) Project as eligible to receive a total funding increase of $7,000,000 from the Clean Water State Revolving Fund (SRF) loan.
• The loan is repayable at 0.00% interest and there is a loan fee of 2% that will be invoiced after bids have been received.
• The Town previously received an SRF loan for the SASS project in the amount of $12,500,000 with a 0.00% interest and a loan term of 30 years.
• In order to accept the additional loan, the Town will need to submit various forms including a resolution adopted by Council.
• A contact from DEQ, Logan Kluttz, is in the process of determining how to best proceed with extending the additional loan from a term of 20 years to 30 years, and where or not the term should be extending before or after the Town’s acceptance.

XI. Discuss Off-Season Beach Schedule Request from Lake Lure Tours: 

• Mr. Perkins explained that for the past two years, Lake Lure Tours (LLT) has requested changes to the off-season beach schedule and the changes were approved by Council both years.
• Lake Lure Tours is operating in accordance with the latest Concession Agreement terms at this time, but has submitted the following request for the 2023 off-season beach schedule:

1. The beach remain closed from the day following Labor Day Weekend until and through the day following the commencement of lake drawdown.
2. The beach be re-opened the day following the commencement of drawdown for complimentary, unsupervised, “no swimming” public access until the day following the commencement of lake refilling or until the lake is returned to full pond, whichever comes first.
3. At the day of the commencement of refilling, the beach then be re-closed until reopened by LLT for the year’s season, beginning Memorial Day Weekend.

• Town staff requests Council input regarding off-season beach hours and the 2023 request from Lake Lure Tours and that this will be honored in future years prior to the drawdown period vs specific dates since the lake drawdown periods vary from year-to-year.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

XII. Review Proposals for the Lease of the Former ABC Store: 

• Town Council continued the review of the proposals for the lease of the former ABC Store building located at 2654 Memorial Highway.
• Mr. Perkins explained that he had received two updated proposals from Mr. Wittmer and Mr. Venuto.  
• He advised that a third revised proposal was submitted late 9/26/23 from Mr. Opplinger. 
• There was a discussion regarding the proposals.
• Town Council confirmed that they prefer to remove any portion of Pool Creek Picnic Park in any proposals.
• Town Council also confirmed that the Lakeside Chapel Services will continue without any interference as has been previously stated.  
• Town Council confirmed that the Police Doc and Boat House would remain indefinitely. 
• Parks, Recreation, and Lake Director Dean Givens recommended any future structures that were built, be owned by the Town.
• Mr. Dydula recommended that anyone submitting proposals include a summary of the due diligence they had performed for permitting and a site feasibility study.  Any questions can be submitted to Community Development Director Mike Williams. 
• The following proposals were highlighted.

1. Lake Lure Tours Outdoor Outfitters - George Wittmer

• It was recommended that Pool Creek Picnic Park be removed from the proposal.

2. The Cove at Lake Lure Restaurant - John Venuto

• Town Council confirmed that the Town would not invest in any fixtures in the building.

3. WNC Outdoor Collective - Lake Lure Rowing Club - Wade Oppliger 

• It needs to be clarified what the building would actually be used for.
• Mr. Oppliger explained that he would be working with WNC Outdoor Collective and they would help coordinate outdoor activities within the building. 
• There was a discussion about some of Mr. Oppliger's plans and visions for the business.

Town Council will continue to review and consider the proposals between now and the next Regular Town Council Meeting. 

XIII. Discuss Taking Action at Work Session Meetings: 

• Mr. Perkins advised that Town Council may want to consider whether or not to begin taking action at work session meetings to prevent the Town from needing to schedule additional Special Meetings to address those items that are time-sensitive and require action. 
• This will become more prevalent with the ongoing infrastructure projects that are underway such as the sewer system replacement and the dam replacement projects. 
• If Council desires to do this at the Work Session Meetings, staff recommends including actions taken on the regular meeting agendas.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

XIV. Discuss Public Works Laydown Area:  

• Mr. Perkins introduced this topic to use space behind the Parks, Recreation, and Lake Building for equipment to support Public Works and the replacement projects.
• Project Manager Michael Dydula led a discussion regarding the future area which is a rectangular space, out of view from the roadway. 
• The area may need to be graded and screened from Charlotte Drive to protect the view.
• It will be tucked up against the trees with a wooden fence.
• The timeline on a Public Works Building in this area might include a proposal for the building within the next 6 months. 

XV. Discuss Lake Level for Reservoir Drain Installation: 

• Project Manager Michael Dydula led a discussion regarding lake levels related to the Reservoir Drain Installation.
• There was a lengthy discussion regarding the possible need for an additional lake drawdown to keep the project moving forward in the event of rain delays.  
• If a significant rain event occurs, the generator can be used to proactively lower the lake. 
• The Tainter gates can also be used to proactively lower the lake to accommodate the additional influx of water.  
• When the generator or Tainter Gates are used, the installation would be required to stop. 
• Town Council felt that it was too late to change the lake drawdown schedule as everyone had already been notified of the dates and they did not feel the delays caused by rain would significantly impact the ability for the project to proceed. 

XVI. Discuss Change Order Procedures: 

• Mr. Perkins advised that various infrastructure projects are underway and the Town should expect occasional change orders.
• Town staff is requesting input on how policies related to change orders to allow approval without delaying the work.  
• Specifically, Town Council discussed a threshold amount for approving change orders and allowing designated staff to approve them.
• There was a discussion regarding this topic with the Project manager, Finance Director, Schnabel Engineering, and Morgan Corporation.
• Town Council will consider this request and plan to review it at the next Regular Town Council Meeting. 

XVII. Discuss Policies Relating to Subaqueous Sanitary Sewer System (SASS) Installation: 

• Mr. Perkins explained that following the recent meeting with the residents of Sunset Cove, it was determined that there are various questions that will likely continue to occur throughout the Subaqueous Sanitary Sewer System (SASS) installation.
• Staff is recommending discussions regarding policies as it relates to the SASS installation.
• Common questions that may need to be addressed through policies include boat removals during drawdowns, lateral install costs, and the potential for an assessment resolution.
• Prior to disbanding, the Utility Advisory Board (UAB) crafted a sewer policy, sewer policy framework presentation, and communications materials that may be helpful regarding certain policies and these policies were reviewed. 
• There was a discussion regarding assessment fees referenced in this draft policy.
• Once the sewer system becomes available, the Town plans to require the property owner to hook up or to pay a fee if they choose not to hook up as soon as the sewer system is made available to the property.  
• Town Council reviewed the information in the draft policies and when the timing is right, this information will be codified in the Ordinance.
• Mr. Perkins confirmed that no one in Sunset Cove will have to remove their boats from boat houses in the 2024 drawdown.
• In future drawdowns, some boats may have to be removed from their boat houses some property owners may have to remove their boats from their boat houses. 
• If this is required, the property owner is responsible for this expense. If boat removal is required a second time, the Town will cover that expense. 
• There was a discussion regarding the lateral placement in Sunset Cove.
• The engineers have identified a tentative location for the laterals but will work with property owners to discuss alternative locations. 

XVIII. Review PANGAEA Proposal: 

• Mr. Perkins explained that we do not have extension of services to the Waste Water Treatment Plant (WWTP) and a temporary trailer that will be located on the property for Morgan Corporation.
• Pangaea has been consulted and there would be a one-time extension fee of $3,000 for this extension.
• In exchange, Pangaea is proposing an additional five years to their agreement term, which would extend the agreement term until 2032.
• Staff would like to ask for additional sites to be serviced, but will not be discussed with Pangaea until a later date.
• There was a brief discussion on this and Town Council will consider this recommendation and plan to review it at the next Regular Town Council Meeting. 

XIX. Project Manager Updates

1. Dredging: that a team has developed a plan and they are working to obtain an extension of the current grant.

2. Tryon Demolition: Mr. Dydula advised that this project has been completed and the Town has a $108,000 in lean on the property.  According to Attorney Morgan there will be an auction on the property and when it sells the Town will be paid the lean. 

3. Engineering Software: Mr. Dydula advised that he had obtained a proposal for this software and is reviewing this. 

XX. Town Manager Updates: 

• Speed Limit Signs: Mr. Perkins advised that he is looking into speed limit signs on Town Roads.  He will provide an update when he has additional information.

XXI. Adjournment: The meeting was adjourned.