The Bessemer City Council met in regular session on August 9, 2010 at 7:00 PM in the Council Chambers of City Hall.

Members Present
Mayor Bob Hovis; Council Members: Dan Boling, Joe Will, Melanie Colvin, Becky Smith and Donnie Griffin.  Council Member Kay McCathen was absent.  City Manager Allan Farris and Attorney David Smith were also present.

Call to Order, Prayer, Pledge of Allegiance
Mayor Hovis called the meeting to order and opened with prayer.  He then led in the Pledge of Allegiance.

Adjustment & Approval of August Agenda
Upon motion by Becky Smith and unanimous vote, the August Agenda was approved with the following amendment:  Amendment to the Boy and Girls Club Lease Agreement.

Special Presentations

• American Red Cross Awards: Cynthia Stitt of the American Red Cross was assisted by Mayor Hovis in presenting a Life Saving Award to Bessemer City Lifeguard Matthew Carpenter and Certificates of Recognition to Joseph Franklin and Deborah Inman.  These awards were presented for life saving efforts performed at the Bessemer City Pool on June 6, 2010 for three year old Na’yasha Corry of Bessemer City.   Perry Miller could not be present and a Certificate of Recognition will also be presented to him at a later date.
• Small Business Week Proclamation: At the request of the Bessemer City Area Chamber of Commerce and by motion of Dan Boling, the City Council unanimously adopted a proclamation declaring the week of August 30-September 3, 2010 as Small Business Week in Gaston County.  (Copy on file in Proclamation Book at City Hall).

Approval of Minutes
The minutes of the July 12, 2010 meeting were unanimously approved by motion of Becky Smith.

Consent Agenda
The following “Consent Agenda” items were unanimously approved by motion of Melanie Colvin:

• Request for Sound Amplification Permit: Approved Sound Amplification Permit for Jaymie Dameron, 1375 Ramseur Road, Bessemer City.  Ms. Dameron requested to use sound amplification equipment at a fund raiser to be held at Kevin Millwood Park on August 28, 2010 from 5:00 PM – 10:00 PM.
• Resolution of Appreciation: Approved a Resolution of Appreciation to honor Mrs. Sarah Jane Boyd as she retires after thirty years service with the Gaston County Library System.
• Drug Free Workplace Policy: Approved the City’s Drug Free Workplace Policy.
• Appoint ABC Board Chairman: Approved Curtis Williams, Jr. as Chairman of the ABC Board as recommended by the ABC Board.

Changes to Governmental Accounting Standards Board (GASB) Reporting
Donna Lumsden, Finance Director, reported that GASB Statement No. 54 requires a change in the City’s Financial Statements Reporting.  To simplify the reporting, accounting for the  City’s Capital Reserve Fund should be restructured to a Capital Projects Fund.  In the past, the City has accumulated sales tax revenue from Articles 40, 42 & 44 in the Capital Reserve Fund.  Privilege Fees also accumulated in the fund.  Since Fiscal Year 2000, no funds have been transferred into the fund from other funds.  Receipts have been routinely transferred out to the General Fund for debt service (pool) and the Water/Sewer Fund for debt service and construction.

It is now recommended that the accumulation of funds be maintained in the General Fund with a transfer out to the Water/Sewer Fund for the debt service and to a Capital Projects Fund as Council chooses to budget for specific projects.  Multiple projects may be maintained in one multi-year project fund.  However, there must be specific funds allocated to specific projects such as City Hall Roof, Water Line Construction, Remodel Recreation Building, etc.  Ms. Lumsden went on to advise that there is approximately $800,000 in fund balance for the capital reserve fund.  She will have a specific amount after receipt of the August distribution of sales taxes.  Seventy-five thousand was transferred into the fund for FY09-10 for the new gas dept building.  The rest is undesignated.  Statement No. 54 says it needs to be assigned.  Ms. Lumsden also stated that a capital project plan should to be prepared and used to determine allocation of the current fund balance to specific projects.  Since the exact amount was not available by the August Council Meeting, Ms. Lumsden stated it would be better to allocate the amount by percentages.  Once that is done, each year a specific dollar amount should be budgeted from each fund/department to transfer for a specific capital project.

Upon Council’s recommendation, Ms. Lumsden said a budget amendment would be prepared for the September Council meeting.  Mayor Hovis recommended using the amounts budgeted in recent years as a guideline for allocating the funds.  Ms. Lumsden stated that she had already begun researching that same solution.  By motion of Becky Smith, the Finance Director was unanimously authorized to proceed with the necessary changes.

Bessemer City Pool Report
Jo D. Franklin, Recreation Director, was present to review a mid-season pool report with the Mayor and City Council.  In his review, Mr. Franklin compared revenues and expenditures for the 2009 and 2010 years.  He reported a decrease in attendance and concession sales in 2010 (school was out a week earlier in 2009), but an increase in private parties.  Mr. Franklin pointed out that expenditures were up due to the installation of a new regulation drain and one additional staff person.  He plans to keep the pool open week days through August 24 and on weekends through Labor Day Weekend.  Mayor Hovis suggested, for expense purposes, that future reports reflect the pool’s opening and closing dates.

Recycling Contract
City Council voted at the July meeting to add recycling to the City’s current contract with Waste Management until the contract’s expiration date in 2012.  An Amendment reinstating recycling was prepared by the Attorney for Waste Management and submitted to Attorney David Smith.  During review of the Amendment, Mayor Hovis raised a question regarding disposal of unmarketable or contaminated materials being the responsibility of the City.  He felt that a definition of contaminated materials should be added to the amendment language prior to approval.  A definition would help in educating the public and also let the City know its liability.   It was the consensus of Council that clarification of contaminated recyclables was necessary.  By motion of Dan Boling and unanimous vote the Amendment will be sent back to Waste Management for clarification and placed on the September agenda.

Purchase of Property
The City Manager reported at the July 12, 2010 meeting that Mr. Andy Herring had approached him regarding a lot (.33 acres) that he (Premier Real Estate & Development) owned on Cleveland Avenue near S. 14th Street.  Mr. Herring advised that the lot had a sewer line running through it and was unusable.  The Manager felt that the cost to purchase the property would be less than the cost of rerouting the sewer line.  City Council authorized the Manager to negotiate a purchase price with the owner not to exceed $4,000.  The City Manager reported that he had talked with Mr. Herring and he indicated that he will not accept less than $4,000 for the property.  In review, Attorney David Smith stated that the City does have a sewer line across Mr. Herring’s property and it appears that there is no written easement for the right-of-way.  The Attorney then reviewed the legal options of Mr. Herring and the City.   Following discussion regarding plugging the line, setting a precedent and the value of the lot, motion was made by Becky Smith to take no action.  Voting in favor were Becky Smith, Donnie Griffin, Melanie Colvin and Joe Will.  Dan Boling voted in opposition.

Boys & Girls Club Lease Amendment
At the request of staff, the Attorney prepared an amendment to the Boys and Girls Club Lease that defined additional areas (Central Gym and baseball fields) occupied by the club.  After review of the amendment, Mayor Hovis asked if the club would be responsible for payment of utilities on these additional areas as specified in the original lease for use of the cottage.  City Planner Kevin Krouse advised that it was not the City’s intent for the club to be responsible for utilities in the new areas.  During discussion the City Manager advised that the Boys and Girls Club were responsible for maintenance and repair of the cottage and that a Certificate of Insurance was on file.  The Attorney stated he and the City Planner would discuss the amendment and he would have it ready for approval at the September meeting.

Council General Discussion
Prostitutes migrating from West Gastonia to Bessemer City; request change in Tuesday garbage route on Edgewood Road (due to rush hour traffic); dirt pile at Cleveland & 14th Street; continuing the Dash Program with Bessemer City High School;  congratulations to Jim Long who is running in the 43rd Senate District; clean off creek that runs through City cemetery (City has plans to pipe the creek); update City website (school information incorrect); place NCLM Green Challenge Resolution on September Agenda.

Request for Children Playing Sign
At the July meeting, Mr. Mike Meeks of 812 W. Virginia Avenue requested a “Children Playing” sign be posted in the W. Virginia Avenue area.  The City Manager advised that a petition signed by the majority of the area residents is required prior to the placement of the non-regulatory sign; however, City Council had the authority to waive the petition requirement.  The petition was unanimously waived by motion of Dan Boling.

Adjourn

With no further business, the meeting was adjourned at 8:03 PM by motion of Becky Smith and unanimous vote.

Janice M. Costner, City Clerk
William R. Hovis, Mayor