Town Council Work Session Summary - February 22, 2023
Thank you to all who joined us for the Town Council Work Session on Wednesday, February 22, 2023, at 8:30 AM in Municipal Hall. The following is a summary of the meeting for those who could not attend. You may download a copy of the meeting packet for further details. Please note that this is a summary and formal minutes from this meeting will be included in the following month's meeting packet.
I. Call to Order: Mayor Carol Pritchett called the meeting to order.
II. Agenda Adoption: The meeting was adopted with the addition of a discussion of the schedule for the Rumble 2023.
III. The Rumble: Communications Director Laura Krejci explained that there is a chance of rain when the Rumble is set to take place and the Rumble coordinator has asked if the event could be shifted by one day if inclement weather occurs. Director Krejci expanded that this would mean that the event would take place on Saturday and Sunday rather than Friday and Saturday. Director Krejci noted that the Rumble coordinators plan to make a decision on Thursday at 10:00 a.m. Director Krejci asked for Council input regarding the request to shift dates if necessary and if Council would be accepting of the request. There was Council consensus of support.
IV. Fireworks Discussion: Town Manager Perkins recalled that during past discussions, the Chamber of Hickory Nut Gorge had asked that the Town take over the responsibilities the 4th of July fireworks and Council decided that the Town would not hold a fireworks event on the 4th of July because so many people are already in town and no additional traffic is needed or desired. Alternatives were discussed including the idea of using these funds to celebrate the holidays with lights and décor to build the presence of Lake Lure during these winter months when the Town was seeking additional traffic.
V. Advisory and Statutory Board Handbook: Town Clerk Olivia Stewman request that Council review the Advisory and Statutory Board Handbook and note any recommended changes. Clerk Stewman suggested adding an application deadline and an application expiration date. Council members agreed upon a two-year application expiration and it was noted that those who are not serving on a board but wish to keep an active application must re-apply after two years. Council members also reached agreement regarding a January 1st application deadline, along with January board meeting reviews. It was noted that it makes more sense to hold board elections at March board meetings when new members are seated and new member orientation takes place. It was also noted that one other issue may be a lack of consistency with attendance policies on boards. Council discussed board by laws and attendance.
VI. Rumbling Bald Concession Agreement: Director Givens explained that five years ago, the Town entered into a concession agreement with Rumbling Bald Resort regarding tour boats. Director Givens explained that the concession agreement is expiring. This year Rumbling Bald, now Rumbling Bald on Lake Lure) has become a concessionaire to the Town for selling boat permits. This should be added to a new concession agreement. Director Givens explained that Lake Lure Tours currently receives 5% of boat permit sales and the Town receives 95%. He recommended that it be the same proportion for Rumbling Bald on Lake Lure. Director Givens explained that he had met with representatives of Rumbling Bald on Lake Lure and has worked through minor changes such as the renaming, but noted that the main change in the new agreement is the addition of boat permit sales. Council expressed support for the proposed concession agreement and it was noted that it will be approved at the next Council meeting.
VII. Facility Leases:
A. Rutherford County Tourism Development Authority Lease: Town Manager Perkins noted that the Rutherford County Tourism Development Authority (TDA) lease terms had changed along with an increased notice requirement of 180 days for termination of the agreement. There was consensus from Council to not exceed a 10-year agreement. Issues were raised with the $1.00 rent amount. Town Manager Perkins noted the TDA’s cost of operations, and payment of utilities and maintenance. it was discussed that if TDA Visitor Center were to depart, it would create an increased abundance of responsibilities for the Marina. Town Manager Perkins recommended a 1-year agreement with the TDA including the 180-day notice clause. There was consensus for the TDA Visitor Center to remain in Lake Lure for the time being. Council members discussed the possibilities regarding the Chamber of Hickory Nut Gorge and the TDA sharing the location. It was noted that there had been some resistance regarding any increase in rent pay. There was Council consensus of support to enter the proposed agreement.
B. Lake Lure Flowering Bridge: Town Manager Perkins noted that there are still plans to seek a local bill from the General Assembly regarding the Lake Lure Flowering Bridge (LLFB) lease agreement for the purpose of exceeding a 10-year term without including sale of real property requirements. Finance Director Stephen Ford estimated that the Flowering Bridge will have about $1,000,000 in liability insurance. Manager Perkins explained that the liability insurance policy is for the protection of the Flowering Bridge and Town. Council members reviewed and discussed details regarding the proposed grounds lease agreement. Town Manager Perkins expressed that an agreement will be beneficial for each parties. There was a concern regarding the use of taxpayer money to support any investments for the LLFB operations but there was support for using funds for the infrastructure of the bridge. Council discussed the possibility of needing a concession agreement when the education center is completed and detailed the differences between profit and non-profit-based agreements.
Viii. Discussion Regarding Permitting Issues With Rumbling Bald Facilities For Collegiate Rowing Competition: Community Development Director Michael Williams noted that his staff discovered work being done in the lake including the construction of an unpermitted bridge that posed an issue and needed permitting from the Town, North Carolina Department of Environmental Quality (NC DEQ), and the Army Corp of Engineers. Director Williams noted that he met with management from Rumbling Bald on Lake Lure as the work was on their property. He learned that this has been allowed in the past despite regulations. Director Williams reported meeting with Lee Pace with the Rutherford County Building Department who noted that the bridge did not meet codes. Director Williams explained that the bridge was for rowing sculls used by collegiate rowing organizations that are scheduled to come in for training in the coming weeks.
Director Williams explained that he and Project Manager Michael Dydula, Rumbling Bald leaders, and Rutherford County leaders came up with a solution to remove the bridge and install a temporary culvert for the sculls which does not require a permit. It was noted that DEQ and the Army Corp were informed and did not expressed any concerns.
Director Williams expanded that piers for launching the sculls will be moved as well, but others might be built in the future. Director Williams expressed that he is fine with re-locating this year, but next year Rumbling Bald will need to complete the permitting process.
IX. Contract For ABC Law Enforcement: Clerk Stewman explained that the ABC Board had a performance audit completed by the North Carolina ABC Commission and one recommendation in the audit was to enter a more up-to-date contract for ABC Law Enforcement between the ABC Board and the Town of Lake Lure Police Department. it was noted that the Town receives the 5% detailed in the contract and Director Ford will follow up but noted that the Town’s profit share had not been received for the past few years. There was a discussion about funding for ABC education and Director Ford noted that he would holistically review funds to and from the ABC Board and whether or not the Town set aside funds for ABC law enforcement education. There was Council consensus of support.
X. Infrastructure Updates: Project Manager Michael Dydula provided Council with the following updates:
1) Dam: It was noted that a work order for the 30% design is needed in order to proceed.
2) Sewer System Replacement - Phase One Sunset Cove: The 5th bring has been installed. There was a discussion regarding Public Works staffing. Project Manager Dydula indicated that it might be beneficial to have an additional person on staff for daily site inspections. Manager Perkins noted that Attorney Morgan had prepared the easements for the HDD project and that the Town would begin visiting property owners to discuss and complete easements.
3) Deep Water Access: A new contract has been completed with Stott Construction, Inc since Tim Edwards is not licensed GC. The town is proving Kim Warner (Engineer of Record) an updated agreement to make site visits and certify final construction. The contractor has attempted to make a change on site and has been put on hold. Currently working on a process for vetting/prequalifying contractors and working in a new standard form or contract to include general conditions, etc.
4) Reservoir drain (Dam Valves): A prebid meeting was held last week with 10 companies in attendance. Site visits are being scheduled. Addendum #1 was issued 2//21/23.
5) Horizontal Directional Drilling (HDD) Sudaquoeous Sewer: The bid was advertised last Friday.
6) Dredging: Received approved grant from the State. Manager Perkins expressed that he would like for dredging become less intrusive to lake operations and for maintenance to be done on a sediment base. Manager Perkins expanded that the Town should research who to maintain dredging operations differently while maintaining the current finances. Commissioner Proctor recalled the “big dig” and noted that it was done without a 12 ft. drawdown. Project Manager Dydula recommended another big dig.
There was a discussion about the status of the Tryon Bay house demolition and Project Manager Dydula advised that he held a meeting to review this and it was determined that there should be a written letter of opinion, that the structure should be removed, and the that the property should be re-evaluated after removal. It was noted that Development and Environmental Review Specialist Richard Carpenter is reviewing specifications of what work needs to be done and that this will be included in an advertised bid to remove the structure. Council asked for a removal timeline and it was estimated that removal would take place in about 30 days.
7) Waste Water Treatment Plan (WWTP): The town is working with Labella on future site locations.
8) New Public Works Relocation Site: A formal design contract is needed ASAP.
9) Asset and Inventory Assessment (AIA) Grant – Sewer: Working ith Public Works on this.
10) AIA Grant – Water: Labella Associates are still working on this grant.
11) AIA Grants – Storm: Mr. Dydula will be trying to work with Labella Associates on this in the near future.
12) Underground Storage Tanks: Recently asked to assist ith this issue.
13) Firefly Cove Water Wells: Labella is still working with Public Works on this and the project manager will be assisting. Discussed the importance of settling the Fire Fly Cove (FFC) initiative quickly because it is linked to updating the Chimney Rock Village water agreement. The Town is aware that it can operate as a stand-alone, so the FFC redundancy is important.
14) Chimney Rock Water/Sewer Agreement: Working with the Town Manager on this.
15) Chimney Rock/Lake Lure River Walk/ Streetscape: Had initial meeting with key stakeholders recently and will be getting more involved soon.
16) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant – NCDOT: Will be working with Town Manager on this. Have upcoming meetings planned with the design firm.
There was a discussion about the sewer system project and acknowledgment that the project is progressing slowly. The town needs to establish a drawdown schedule policy and inform the public. The town must support the existing sewer while the new system is being built. The town needs to ensure that the Wastewater Treatment Plant (WWTP) is supported in the meantime as well. It was noted that the Town must keep WWTP numbers level and refurbish the existing WWTP including cleaning out basin and obtaining a centrifuge or belt press. Manager Perkins noted that since the American Rescue Plan Act (ARPA) funding determination had been made and the Town did not receive additional funding, it may be beneficial to operate manual removal with a belt press because a centrifuge costs millions of dollars. Manager Perkins also noted that the Town must be aware in regard to spending the ARPA funds before the 2026 deadline.
It was noted that the town was reimbursed for past engineering which has been refunded to the Water/Sewer fund and that it needs to be reviewed in the upcoming budget cycle to possibly go towards funding the maintenance of the WWTP. Manager Perkins explained that he had spoken with the Policy Group and they are working towards merit to get the Town a funding/finance bill from the state. There was a discussion that the big picture is that the Town has $16 million for the drain valve and design and sufficient dam funding for the next 3-5 years, but the sewer replacement funds will deplete quickly. Project Manager Dydula noted that WWTP is a little more lenient, and that he is prioritizing sewer replacement with LaBella. Council discussed relations and operations with Ruby-Collins. Concerns were expressed regarding Ruby-Collins progress with the Sunset Cove project and it was suggested that relations be re-evaluated after the current drawdown. Council members discussed project complexities.
Regarding the cell tower, Director Williams explained that the project is progressing. Director Williams expanded that the consulting firm for AT&T’s contractor is working on the State Historic Preservation requirements, which is the final requirements before issuing permits. Director Williams expressed that he will continue to follow up.
Council and staff discussed the future development in Chimney Rock Village and it was discussed that Chimney Rock and the developer must be aware of the approval requirements for sewer by DEQ and the Town. There could be a point where the Town must decide what developments can be approved.
XI. Financial, Budget, and Audit Updates: Director Ford reviewed his financial, budget, and audit update presentation. Director Ford explained that County re-appraisals took place this year and that the re-appraisal notices will be sent out Friday, followed by an appeal period. Director Ford reviewed re-appraisal estimates. Commissioner DiOrio asked where the County is targeting the mill rate and it was noted that it will be known later, but Director Ford is hoping to have an estimate soon. Commissioner DiOrio advised that if a property owner appeals, their property value could actually increase or decrease. It was noted that the Town will can not determine tax rates until the County mill rate is determined and Director Ford estimated that the Town should have an estimate by March.
Director Ford reported healthy funds and good financial operations, especially since the Town is receiving reimbursements from the state. Director Ford reviewed reimbursements and Council asked for details regarding upcoming reimbursement requests and Director Ford answered that the Town is asking for reimbursement for barge, pusher boat, LaBella bills, Ruby-Collins bills, and possibly more. Council asked how Director Ford is determining which bills are being paid by ARPA funds and it noted that any bills that are eligible for ARPA reimbursements are being paid through the ARPA funds. Council asked if the Town is paying any principal on the State Revolving Fund (SRF) and it was answered that the Town is not required to make payments until the project is completed. It was noted that there are different rules for each fund and that the Town needs to keep good records to send to the legislature.
Director Ford reviewed overall financials. Manager Perkins noted that the end of March is the deadline to finish the audit. Director Ford reported that there should be no concerns, and that the auditors should be meet the March deadline. Council expressed concern regarding huge dynamic with appraisals and noted that if the Town does not have timely information it will be hard to plan for the future. Director Ford reviewed operational information and processes and noted that the Town had not received money from the ABC Board for a couple of years and agreed that he will follow up.
XII. Adjournment: The meeting was adjourned at 11:07 AM
