Gastonia City Council Regular Meeting - March 21, 2023

Mayor Pro Tem Dave Kirlin presided over the March 21, 2023 regular meeting of the Gastonia City Council; the mayor was excused. Councilman Robert Kellogg gave the invocation, and the council adopted the agenda and approved the minutes of the March 7, 2023 regular meeting. The meeting included awards and proclamations, public comments about property taxes, the consent agenda, public hearings on a street closing and two annexations, authorization of transportation bonds, the HOME-ARP allocation plan, and the Utilities Committee report.

Awards, Proclamations, and Recognitions

• Keep Gastonia Beautiful school specialist Jeffie Hardin presented the 2023 Arbor Day Poster Contest awards. Over 60 student entries in four divisions were judged at the March 9 board meeting, and winning artwork will be displayed at the Gaston County Library main branch in April. Winners came from W.A. Best, Piedmont Community Charter, Gaston Day, and Cramerton Middle schools.
• The council recognized Ford's Seed and Plants Store for over 100 years of service. Peggy Long, who became owner after Ruby Carson died in 2015, accepted the proclamation, thanked the community, and said the store is closing as she retires.
• A proclamation recognized March 20 through June 20, 2023 as the Great American Cleanup. Keep Gastonia Beautiful Administrator Juliann Lehman said city employee cleanups will occur April 17-28 and that cleanup kits are available.
• A proclamation recognized March 2023 as Developmental Disabilities Month. Sara Osborne of The Arc of Gaston County said more than 7 million Americans have developmental disabilities and over 6,000 individuals in Gaston County are affected. She highlighted a Gaston College program and Operation Santa.
• A proclamation recognized April 2023 as North Carolina 811 Safe Dig Month. Joe Albright, Public Utilities director, said NC811 has served the state for 45 years, beginning in 1978, and in 2022 received 2.4 million calls and transmitted over 13.4 million requests. He urged residents to call before digging.
• A proclamation recognized April 1-7, 2023 as the Week of the Young Child. Rosalind Richardson accepted on behalf of the Partnership for Children of Lincoln & Gaston Counties; Councilwoman Jennifer Stepp presented.
• The A.C.E. Program certificate was presented to Madison Green Townhomes, a 100-household neighborhood in Ward 5. Tyler Davis presented, and Judy Smith will serve as community liaison. Melissa Holland, the HOA communications manager, was unable to attend and sent a statement of thanks.
• A proclamation recognized April 2023 as Fair Housing Month. Daniel Caudill, Citizens Advisory Board chair, accepted; Councilwoman Donyel Barber presented.
• A proclamation recognized April 10-14, 2023 as Community Development Block Grant Week. Daniel Caudill accepted and said the CDBG program has helped people and put people in homes.

All of these recognitions and proclamations were approved by voice vote.

Public Comments & Testimony

During the public expression period, five residents spoke about property tax revaluation and the upcoming city budget. All urged the council to reduce the tax rate or keep it revenue neutral.

• Mike Sigmund, a Gastonia resident, said his taxes would more than double under the revaluation if the rate is not adjusted. He asked the council to protect retirees and not treat reappraised values as a windfall.
• Denise Huffman, a retiree who moved to Gastonia in 2018, asked the council to lower the tax rate considerably while still meeting budget needs.
• Belva Kieran, a widow on a fixed income, thanked police and first responders, said she is hurting financially, and urged the council to consider not just revenue neutrality but lowering taxes.
• Mark Sollers requested that the 2023 budget be cut, not copied from the prior year, and suggested a moratorium on city travel and new projects. He argued that some voters who approved the 67% bond measure might have voted differently if they had seen their revaluation notices before the election.
• Sean Stacy said now is not the time to raise taxes, cited an inverted yield curve and economists predicting a recession, and recommended hiring an economist, using a sliding-scale tax adjustment, and making the appraisal and appeal process more transparent. He also said Gastonia should not become like Charlotte or Mecklenburg County.
• Niles Miller was heard after the regular agenda because he signed up on a different sheet. He said he owns a half-acre at 1998 West Davidson Avenue and has filed rezoning paperwork for multi-purpose or townhome use to match nearby development.

Consent Calendar

The council approved the consent agenda, which included:

• Resolution approving Stormwater Systems, Inc. as sole source vendor.
• Resolution to accept for maintenance a portion of Stagecoach Station Phase 2 Map 1 subdivision.
• Award of the FY2023 audit contract to Martin Starnes & Associates, CPAs, P.A.
• Resolution awarding the 2023 GO Bond Resurfacing contract; the city manager later reported the accepted bids totaled $11 million.
• Resolution approving an agreement with the Town of Cramerton to exchange real property for the relocation of the Big Lakewood Sanitary Sewer Pump Station.
• Resolution to accept for maintenance a portion of Nolen Farm Phase 3 Map 1 subdivision.
• Resolution to surplus 23 Dell laptops and transfer them to Gaston College at no cost.

Public Hearings and Regular Agenda

H1 - Sinclair Street Closure

City Attorney L. Ashley Smith opened the hearing on a petition to close a portion of Sinclair Street, an unopened street near Remount Road. Applicant representative David Smith said Lewis Eiford, president of United Oil Company, owns the tract and is in discussions with national retailers about development. The unopened street stub interferes with setbacks. City staff had no objection, and utility rights would be addressed when a future site plan is submitted. The council closed the hearing and adopted the resolution to close the street portion.

H2/H3 - Delta Drive Annexation and Zoning

The council heard H2 and H3 together: voluntary annexation of 41.12 acres on Delta Drive, owned by JEJ Liability Limited Partnership 3 and TCA Delta Drive Phase 1 LLC, and assignment of City of Gastonia I-2 General Industrial zoning. The property is north of I-85 and was previously Gaston County I-2. Planning Director Jason Thompson said the Planning Commission unanimously recommended approval and staff also recommended approval. Developer representative Ian Shorty of Trinity Capital confirmed ownership of the mapped parcels. The council approved the annexation and zoning assignment.

H4/H5 - Apple Creek Parkway Annexation and Zoning

The council heard H4 and H5 together: voluntary annexation of 26.83 acres on Apple Creek Parkway, owned by Hans Kissle Company LLC, and assignment of City I-2 zoning. It was a satellite annexation not contiguous to existing city limits. Staff noted the 2025 comprehensive plan shows residential for the location but recommended I-2 because of the surrounding industrial park. Hans Kissle representative Celestino Martinez said the company makes deli-fresh prepared foods, construction began in November 2022, completion is expected in Q3 2023, and production is expected at the end of 2023. The company plans to hire 200-250 new full-time employees and expects to serve customers including BJ's, Dunkin', and Panera. The council approved the annexation and zoning assignment.

H6 - General Obligation Transportation Bonds

Crystal Certain, Director of Financial Services, presented the resolution to issue not to exceed $37,500,000 in General Obligation Transportation Bonds, Series 2023. She explained that voters authorized up to $75 million in November 2022 for transportation projects and that this resolution covers the first half. The bonds will be sold through a competitive sale by the Local Government Commission. Councilman Jim Gallagher recused himself because Wells Fargo is involved in the bond work. The council approved the resolution.

H7 - HOME-ARP Allocation Plan

Danette Dye, Director of Housing and Community Engagement, presented the HOME-American Rescue Plan allocation plan of $2,850,111 for submission to HUD. Qualifying populations include homeless individuals, people at risk of homelessness, domestic violence survivors, veterans, and extremely low-income people at 30% and below income. Eligible activities include affordable housing, tenant-based rental assistance, non-congregate shelter, support services, administration, and nonprofit capacity building or operating costs. A community survey in January drew 412 responses; 52% ranked homeless individuals as the highest priority population, followed by those at greatest risk. Preservation of affordable housing ranked highest among eligible activities, homeless prevention ranked highest among services, and more than 60% supported including nonprofit capacity building and operating costs. The plan allocates $200,000 to supportive services, $2.2 million to acquisition and development of a non-congregate shelter, and smaller amounts to nonprofit capacity, operating costs, and administration. Councilwoman Donyel Barber noted 77% of funds are directed to the non-congregate shelter; Dye clarified that this would acquire, construct, or rehabilitate a facility rather than pay for hotel rooms. Councilman Jim Gallagher asked about services to help homeless individuals transition out of homelessness; Dye said success will require nonprofit management and additional community funding. Councilman Robert Kellogg expressed strong support for the non-congregate shelter as the missing piece for serving people experiencing homelessness in Gaston County. Councilwoman Jennifer Stepp asked about long-term maintenance and ownership; Dye said the facility could be deeded to a nonprofit and the city would oversee affordability requirements. A public comment period ran February 22 through March 10, including a virtual public hearing on March 9. Dye said the plan will be submitted by the March 31 HUD deadline and the funds must be expended by 2030. The council approved the HOME-ARP allocation plan.

Committee Reports - Utilities Committee

Councilman Charles Odom, committee chair, presented the Utilities Committee report. The action item was the Anthony Creek Watershed Management Initiative, which the committee unanimously recommended and the council approved.

Joe Albright described the initiative as covering about 500 acres, including 37 acres of surface water, 508 residential units or stormwater ERUs, 29 businesses, and about 1.5 miles of shoreline around Robinwood Lake. The initiative targets stormwater runoff, sediment, nutrients, litter, and bacteria/pathogens. It includes past and planned projects such as channel stabilization along Raleigh Court, a StormX litter device planned for the Fonda outfall, Heatherlock dredging and sedimentation bays, and a proposed water quality monitoring partnership.

Other Utilities Committee updates included:

• Credit card processing: the city is on track to save about $100,000 by passing part of credit card fees to utility customers, but still pays about $400,000 annually. The utility budgets include $210,000 for water/sewer and $210,000 for electric credit card fees.
• The Advanced Metering Infrastructure project is on schedule.
• The water model upgrade is replacing a 20-plus-year-old model and is on schedule and budget.
• The Long Creek outfall evaluation and rehabilitation project is still being studied; no action was needed.
• The Apple Creek sewer outfall capacity project is about a $4.5 million parallel-line project for the Apple Creek Corporate Park. The city is seeking funding from sources including the Golden Leaf Foundation and the Department of Commerce, and is beginning design procurement.
• The Mountain Island Lake raw water infrastructure report identified a segment built in the 1970s with defective pipe that is in worse condition than the 1954 line; funding options are being pursued.
• A watershed protection opportunity at Mountain Island Lake was presented as an update only.
• The utility project, policy, regulatory, and rate study update was provided; no action was needed.

City Manager's Report, Council Reports, and Announcements

City Attorney L. Ashley Smith gave no report.

City Manager Michael C. Peoples said the water and sewer projects in the council packet total about $130 million. Staff are pursuing state and federal grants and working with the North Carolina General Assembly delegation. He reported two rating calls with Moody's and Fitch, and said the council budget work session is scheduled for March 28. He also said the approved resurfacing bids total $11 million, with the goal of completing those projects by Halloween. He attended an ElectriCities annual rate committee meeting and said more information would follow in April.

In council reports, Councilman Robert Kellogg gave updates on arts and community meetings and also responded to public comments about revaluation. He acknowledged that residents have been contacting council members, noted that the county conducted the revaluation and the council does not have individual appraisal data, and said the council is listening and working on the budget.

Councilman Jim Gallagher shared that his niece died of a drug overdose and spoke about the opioid epidemic in Gaston County. He urged empathy, education, understanding of addiction as a disease, and a community-wide response.

Mayor's announcements were read by Councilman Gallagher because Mayor Pro Tem Kirlin was losing his voice. Announcements included Free Excess Trash Week March 20-24; a Gastonia Tourism Development Authority meeting March 22; Gaston M.A.X. Multicultural Arts Experiment on March 25 from 11 a.m. to 3 p.m. at Rotary Pavilion; Gotha's 30th anniversary celebration at the Schiele Museum on March 25; a Sister Cities presentation on March 26; the City Council budget work session on March 28; the Community Foundation run on April 1; the Municipal Citizens Academy public works session on April 3; an Amtrak Station ribbon cutting on April 4; the regular City Council meeting on April 4; a Transportation Committee meeting on April 5; and the Planning Commission meeting on April 6.

Key Outcomes

• Approved the March 7, 2023 regular meeting minutes and the consent agenda.
• Approved all awards, recognitions, and proclamations presented during the meeting.
• Adopted the resolution closing a portion of Sinclair Street.
• Approved voluntary annexation and I-2 zoning for 41.12 acres on Delta Drive.
• Approved voluntary annexation and I-2 zoning for 26.83 acres on Apple Creek Parkway.
• Authorized the sale and issuance of not more than $37,500,000 in General Obligation Transportation Bonds, Series 2023, with Councilman Gallagher recused.
• Approved the $2,850,111 HOME-ARP Allocation Plan for submission to HUD by March 31.
• Approved the Anthony Creek Watershed Management Initiative resolution.
• Next steps include the March 28 budget work session, submission of the HOME-ARP plan by March 31, and completion of the $11 million resurfacing program by Halloween.