town of laurel park4e81291d-e1eb-4994... · 2017-06-15 · laurel park town council work session...

Town of Laurel Park

Town Council

Agenda Work Session June 15, 2017 - 9:30 a.m.

1. Call to Order

2. Approval of the Agenda

3. ABC Store Annual Update – Store Manager John Nall

4. Water Merger Study Report

5. Review of Summer 2017 Paving Bid – Will Buie, P.E.

6. Resolution of Intent to Close Unopened Road Orchard Drive (Rhododendron Lake Nature Park)

7. Rhododendron Lake Nature Park Update

8. CCC Wall Repair Update

9. Agenda Review for the Council Meeting scheduled for June 20, 2017 – 9:30 a.m.

10. Council Updates and Information

11. Adjournment

1. Call to Order 2. Pledge of Allegiance 3. Approval of the Agenda 4. Consent Agenda

A. Minutes from the March 24, 2017 Special Meeting B. Minutes from the May 11, 2017 Work Session C. Minutes from the May 16, 2017 Regular Meeting D. FY 2017 Audit Contract with Burleson & Earley, PA

5. Public Hearing A. Proposed Fiscal Year 2017 - 2018 Budget

6. Old Business A. None

7. New Business A. Adoption of the Fiscal Year 2017 – 2018 Budget Ordinance B. Adoption of the Fiscal Year 2017 – 2018 Fee Schedule

8. Town Manager Report 9. Department Head Reports

A. Public Works B. Police C. Administration

10. Public Comment 11. Mayor and Commissioner Comments 12. Adjournment

Laurel Park Town Council Work Session Agenda June 15, 2017

of 8

Notable Dates – 2017 June 20 Tuesday Council Regular Meeting 9:30 am June 27 Tuesday ABC Board Meeting

Meeting held at the ABC store in Laurel Park 8:30 am

June 27 Tuesday Planning Board Meeting 3:00 pm July 4 Tuesday Independence Day – Town Offices Closed All Day July 11 Tuesday Parks & Greenways Board Meeting 9:00 am July 11 Tuesday Planning Board Meeting 3:00 pm July 13 Thursday Council Work Session 9:30 am July 13 Thursday Board of Adjustment Meeting 4:00 pm July 18 Tuesday Council Regular Meeting 9:30 am July 18 Tuesday LGCCA Meeting

Historic Courthouse 3:00 pm

July 19 Wednesday Bike & Pedestrian Plan Committee 9:00 am July 25 Tuesday ABC Board Meeting


July 25 Tuesday Planning Board Meeting 3:00 pm July 26 Wednesday Land-of-Sky Open House

Land of Sky Offices – Asheville 12:00 – 3:00 pm

August 8 Tuesday Parks & Greenways Board Meeting 9:00 am August 8 Tuesday Planning Board Meeting 3:00 pm August 10 Thursday Council Work Session 9:30 am August 15 Tuesday Council Regular Meeting 9:30 am August 21 Monday Solar Eclipse 1:00 –

2:30 August 22 Tuesday ABC Board Meeting


August 22 Tuesday Planning Board Meeting 3:00 pm August 23 Wednesday Laurel Park Host Monthly Land-of-Sky Meeting

First Congregational Church 12:30 – 2:00 pm

September 4 Monday Labor Day – Town Offices Closed All Day September 12 Tuesday Parks & Greenways Board Meeting 9:00 am September 12 Tuesday Planning Board Meeting 3:00 pm September 14 Thursday Council Work Session 9:30 am September 14 Thursday Board of Adjustment Meeting 4:00 pm September 19 Tuesday Council Regular Meeting 9:30 am September 26 Tuesday ABC Board Meeting


September 26 Tuesday Planning Board Meeting 3:00 pm October 10 Tuesday Parks & Greenways Board Meeting 9:00 am October 10 Tuesday Planning Board Meeting 3:00 pm October 12 Thursday Council Work Session 9:30 am October 17 Tuesday Council Regular Meeting 9:30 am October 17 Tuesday LGCCA Meeting

Historic Courthouse 3:00 pm

October 24 Tuesday ABC Board Meeting Meeting held at the ABC store in Laurel Park

8:30 am

October 24 Tuesday Planning Board Meeting 3:00 pm


of 8

4. Water Merger Study Report

At the March retreat the Council reviewed the preliminary findings regarding the Town’s Water System and potential for selling the system to the City of Hendersonville. Since that time, Manager Alexander, Commissioner Hansen, Public Works Superintendent Griffin, and former Town Commissioner John Crook have reviewed the final report, and recommend the Council adopt the report as presented. Gene Haynes and William Nicholas of Hulsey, McCormick and Wallace will be in attendance to present the final report. If adopted, the Council may then authorize Ms. Alexander and the merger committee to proceed with additional research as needed and begin negotiations with the City of Hendersonville. Attachment(s): Laurel Park Water System Merger Report

Suggested Motion: To adopt the report as presented, and authorize the Manager and committee to proceed with research and negotiations with the City of Hendersonville.

LAUREL PARK/HENDERSONVILLE WATER SYSTEM MERGER FEASIBILITY STUDY

TOC I LAU - 001

TABLE OF CONTENTS

Executive Summary .................................................................................................................. ES-1

1.0 Assessment Of Current System......................................................................................... 1

1.1 Overview ...................................................................................................................... 1

1.2 Assets ........................................................................................................................... 1

1.3 Capital Improvement Plan .............................................................................................. 4

1.4 Financial Overview......................................................................................................... 5

1.5 Organization ................................................................................................................. 6

2.0 Option 1 - Merger ............................................................................................................... 7

2.1 Overview ...................................................................................................................... 7

2.2 Organizational Impact ................................................................................................... 7

2.3 Customer Impact .......................................................................................................... 7

2.4 Benefits to Town of Laurel Park ..................................................................................... 8

2.5 Benefits to City of Hendersonville .................................................................................. 8

2.6 Financial Analysis .......................................................................................................... 8

3.0 Option 2 -Maintain Ownership ......................................................................................... 9

3.1 Overview ...................................................................................................................... 9

3.2 Organizational Impact ................................................................................................... 9

3.3 Customer Impact .......................................................................................................... 9

3.4 Benefits to Town of Laurel Park ..................................................................................... 9

3.5 Financial Analysis .......................................................................................................... 9

4.0 Recommendations ............................................................................................................ 10


TOC II LAU - 001

APPENDICES

Appendix A ............................................................................................. Water Usage Agreement

Appendix B………………………………….……………………………… Tank Maintenance Contract

Appendix C .................................................................................................. Depreciation Expense

Appendix D ............................................................................................... Total Replacement Cost

Appendix E .................................................................................. Laurel Park Organizational Chart


ES 1 LAU - 001

Laurel Park/Hendersonville Water System Merger Feasibility Study

Prepared for Town of Laurel Park, North Carolina

EXECUTIVE SUMMARY

The Town of Laurel Park (the Town) owns and operates a municipal water system serving 819

customers within the corporate limits. The water system consists of eight water tanks, seven parcels

of land, six pump stations and approximately 23 miles of water lines. Construction of the Town’s

water system was begun in 1926 and through the ensuing years the system has been extensively

upgraded as the Town has added customers. Approximately $3 million has been spent in system

updates, add-ons, and maintenance. The Town currently purchases water from the City of

Hendersonville (the City). Over the past 12-month period, 46.6 million gallons of water were

purchased by the Town and sold to its customers.

Hulsey McCormick and Wallace, Inc. (HMW) was engaged to study the feasibility of the merger of

the Laurel Park Water Utility and the City of Hendersonville Water System. In this study, we assess

the assets of the existing system, provide estimates of system valuation, examine the ramifications of

merger versus retaining ownership, estimate future water rates for both options, and make

recommendations for the Town.

The value of the water system was estimated using two approaches. First, the total system

replacement cost (current dollars) was estimated and the historical percent depreciation was

subtracted from this cost. This estimate values the system at $4,833,000. The second method was

the book value method in which the depreciation of each system component was subtracted from

the actual cost. The book method yields an estimated value of $1,844,000. Neither method accounts

for additional value of the elevations of the existing tanks, water line right-of-ways, land available for

tank expansion, or the ongoing value of the Town’s customer base.

Under the merger option, the monthly water bill for an existing Laurel Park user should decrease as

the City currently has out-of-city rates that are lower than Laurel Park rates. The overall effect on a

monthly residential water bill (@5000 gallons/month) is shown in Figure ES-1. The gray line at the

top represents historical water bills for a Laurel Park customer with the yellow segment showing the

effect of capital improvements on future rates. The blue line on the bottom represents historical bills

for the customers that used the City water system, but are outside of the City limits. The orange

portion of the line shows the average rate of increase continuing as the City continues to implement

its existing capital Improvements plan.


ES 2 LAU - 001

Figure ES-1.

HMW recommends the merger of the Laurel Park Water System with the City of Hendersonville.

Specific terms and conditions must be negotiated with the City during the transaction. In this case,

both parties derive benefits. Based on historical City billing for outside customers, Laurel Park

customers should realize a reduction in monthly water bills and the Town may generate capital for

other needed projects. The City of Hendersonville will realize an increase in the water customer base

and be better positioned for future capital improvements through the utilization of the Town's

existing system and rights-of-way.

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

Monthly Laurel Park Residential Water Bill at 5000 gal

Hendersonville Outside Hendersonville Future (Estimated)

Laurel Park Laurel Park with CIP (Estimated)


PAGE 1 LAU - 001

1.0 ASSESSMENT OF CURRENT SYSTEM

1.1 OVERVIEW

The Town of Laurel Park (the Town) owns and operates a municipal water system serving customers

within the corporate limits (Figure 1). Currently, about 60% of the residents within Laurel Park are

served by the Town, while the remaining 40% are served directly by the City of Hendersonville. The

total customer base of Laurel Park is 819 billed water meters with 304 accounts also being served

with sewer. The Town currently purchases water from the City of Hendersonville (the City) under a

purchase agreement that is included in Appendix A. Over the past 12-month period, 46.6 million

gallons of water were purchased by the Town.

Hulsey McCormick and Wallace, Inc. (HMW) was engaged to study the feasibility of the merger of

the Laurel Park Water Utility and the City of Hendersonville Water System. In this report, we assess

the assets of the existing system, provide estimates of system valuation, examine the ramifications of

merger versus retaining ownership, estimate future water rates for both options, and make

recommendations for the Town.

1.2 ASSETS

At present, there are eight water tanks, seven parcels of land, six pump stations and about 23 miles

of water lines serving Laurel Park. The Hebron water tank is shown in Figure 2. The SCADA system

and equipment complete the asset list that is shown in Table 1. Tanks and year of construction are

listed in Table 2. Parcels for the tanks and pump houses are shown in Table 3.

Line Maintenance

Public Works performs routine system maintenance, including but not limited to leak detection and

repair, pump maintenance, valve exercising, and customer meter replacements.

Tank Maintenance

In 2012, Laurel Park contracted with Southern Corrosion Inc. (SCI) to provide water tank

maintenance. The contract is included in Appendix B. This program includes emergency service,

scheduled interior washouts, interior and exterior inspections and painting, maintenance and upkeep,

and planning for long-term maintenance needs. Over the last five years, scheduled maintenance

activities have been performed under this contract. SCI has not reported any deficiencies with the

tank interiors or exteriors. Maintenance activities that have been recently completed or are currently

in progress are summarized in Table 4.

HEBRON

BREVARD

5TH

LAUREL PARK

DAVIS MOUNTAIN

WILLOW

4TH

6TH

FINLEY COVE

WHITE PINE

BLYTHE

LAKE

PISGAH

HALL

3RD

FAIRWAY

SKY LAKE

ORLE

ANS

MT HEBRON

OAK

STEP

P

TIMBER CREEK

BRIGHTWATER

DANIE

LRANSIER

SOMERSBYINDIAN CAV

E

HAYWOOD

VALMONTTURL

EY FA

LLS

TOMS

CLAYS

PRIC

E

JORDAN

WELLS

PARK

SOLOMON

VALL

EY

BEEC

HWOOD

CAME

LLIA

CROSSVINE

7TH

RAMBLING

CANAL

PRIN

CE

ROBIN

SON

ROWLAND

ALTA

LAKE

SIDE

SKY

ORCHARD

DEER

ROBIN

ALLEN

9TH

ARMSTRONG

GATEWAY

FINLEY

BROADWAY

VANC

E

SABINE

MERGA

NS

GIBBS

WHITTEDPINE

MIAMI

ROBERTS

HILLS

IDE

SENECA

BONAIRE

COXCENTRAL

VIEW

CRES

T

TRELLIS

WESTBROOK

ASHLE

Y

GLAS

GOW

DEERWOOD

ASHBY

TUDOR

OCBWI

LD IR

IS

FINLEY BROOK

LANDIA

RED OAK

STATE

KENS

INGT

ON

KILPA

TRICK

ECHO

SILVE

R PIN

E

HEATON

MACK HILL

JAMES ESTATE

SCHOOL

JEFF

CRYSTAL SPRING

WOODBYNE

SOUT

H CA

ROLIN

A

WINDSOR

ARBUTUS

STARVIEW

IVES

EWART

ELSON

ECHO LAKES

MIDWAY

TISHA

DIXIE

OLDS

SKYWAY

CHATTOOGA

WASH CREEK

1ST

SHEEN

BUMO

NT

HOW

ELL

STONE GATE

NIMBUS

CHAR

ITON

FALLS

FICKE

R

SOUTH

APAC

HE

OLD QUA

RRY

PRIM

ROSE

SHADY OAK

SIERRA

LUGANO

CAROLIN

A

DAVIS

ROSE EVELYNEAGL

ES

OVERLOOK

BRYAN

BEAR

CAT

COY EVIE

NAVA

HO

FLEETWOOD

KINDY FOREST

PINEWOOD

MOODY

STAY

MAN

WOODRIDGE

TEANECK

LIVE OAK

OHAR

A

TAYLOR

HAMP

TON

CALH

OUN

CROSSWICK

CLIFF

CRYS

TAL

SMITH

SADDLETREE

MERR

I ACR

ES

IOWA

ELM

OAK C

REEK

BENT TREE

HAZEL

MUIR

THISTLEWYND

JERR

Y

WOODL

AND

PINECREST

OAK HILL

SKY RIDGE

ROYAL

EVERETTE

WHITMIRE

CRISP

UPLAND

SPRUCE PINE LAKEMOOR

RAVEN CLIFF

PINEY KNOLL

PERE

GRIN

E

LAKE

WOOD

SUSA

N

SOLA

R

KENTU

CKY

DELAWARE

WALT

ONCR

ESTW

OOD

FOXGLOVE

PINE BARKROSEWOOD

SILK TREE

SUGAR MAPLE

MIMOSA HEBRON

7TH

LAKESIDE

LAKE

PARK

WHITTED

µ

Figure 1 - Water Service Area

Town of Laurel Park

Laurel Park, North Carolina0 0.1 0.2 0.3 0.4 0.5 0.60.05Miles

Legend

Area within Town Limits Served by Hendersonville

Proposed System Boundary

Laurel Park Town Limits

Current Laurel Park Service Area


PAGE 3 LAU - 001

Table 1. Water System Assets Quantity Notes

Water Tanks 8 5 Pressure

Zones

Land 7 Parcels 2.68 acres

total

Water Lines 414 feet 1 inch

23,686 feet 2 inch

1,356 feet 3 inch

3,108 feet 4 inch

71,714 feet 6 inch

16,649 feet 8 inch

Pump Stations 6

SCADA System New in 2016

Equipment Tools, Truck, Compressor, etc.

Table 2. Water Tanks

Size Elevation Year Constructed Age (in 2017)

Fleetwood #1 100,000 3120 1927 90

Fleetwood #2 246,000 3120 2003 14

Sky Village 100,000 3020 1926 91

Apple #1 100,000 2820 1926 91

Apple #2 100,000 2820 1983 34

Echo 200,000 2700 1984 33

Hebron #1 100,000 2480 1993 24

Hebron #2 100,000 2480 1994 23

Table 3. Laurel Park Water System Property

Parcel ID Property Address Acres

n/a Laurel Park Pump House Site 2006 Laurel Park Hwy

9926100 Hebron Water Tank Site 2201 Hebron Rd. 0.24 9931825 Echo Pump House Site 127 Royal Dr. 0.11

0115717 Echo Water Tank Site 127 Royal Dr. 0.60 0108223 Apple Tank 3422 Laurel Park Hwy. 0.65

9931910 Sky Village Tank Site 280 Tower Circle 0.17

9927351 Fleetwood Tank Site#1/Pump House 130 Birchwood Dr. 0.31 9900636 Fleetwood tank Site #2 130 Birchwood Dr. 0.60

Total 2.68


PAGE 4 LAU - 001

Table 4. Tank Maintenance Program

Tank 2012 2013 2014 2015 2016 2017 2018

Fleetwood#1 Visual Inspection

Visual Inspection

Visual Inspection

Visual Inspection

Repaint Exterior

Visual Inspection

Repaint Interior

Fleetwood#2 Visual Inspection

Visual Inspection

Wash-out Interior

Visual Inspection

Visual Inspection

Visual Inspection

Visual Inspection

Sky Village Visual Inspection

Visual Inspection

Wash-out Interior

Visual Inspection

Repaint Exterior

Visual Inspection

Visual Inspection

Apple #1

Ladder Guard

Visual Inspection

Visual Inspection

Wash-out Interior

Visual Inspection

Repaint Exterior

Visual Inspection

Apple #2 Visual Inspection

Wash-out Interior

Visual Inspection

Visual Inspection

Repaint Exterior

Visual Inspection

Repaint Interior

Echo Ladder Guard

Repaint Interior

Visual Inspection

Visual Inspection

Repaint Exterior

Visual Inspection

Wash-out Interior

Hebron #1 Repaint Interior Ladder Guard

Visual Inspection

Repaint Exterior

Visual Inspection

Visual Inspection

Wash-out Interior

Visual Inspection

Hebron #2 Visual Inspection

Visual Inspection

Visual Inspection

Repaint Interior/Exterior

Visual Inspection

Visual Inspection

Visual Inspection

Figure 2. Hebron Water Tank

1.3 CAPITAL IMPROVEMENT PLAN

In order to estimate the effect of capital improvements on future water rates, a capital improvement

plan for Laurel Park must be developed. A conservative approach (one that would not overestimate


PAGE 5 LAU - 001

the needed improvements) was used. In this plan, water tanks that have exceeded the typical design

life and the oldest 25% of water lines could be replaced over the next 20 years. The cost of these

capital projects, if needed, was estimated and the results are included in Table 5.

Table 5. 20-Year Capital Improvement Plan Cost

Replace 25% of water lines (Oldest) $ 1,521,000

Replace Apple Tank (1926) $ 106,000

Replace Sky Tank (1926) $ 117,000

Replace Fleetwood tank (1927) $ 106,000

Total $ 1,850,000

1.4 FINANCIAL OVERVIEW

HMW was tasked with calculating the value of the water system using book value and total

replacement less depreciation. As discussed below, the two methods yield different results.

The book value approach is typically used to value sewer or water utilities that have significant fixed

assets. In this approach, the total of the actual system depreciation is subtracted from the total

system cost (neither figure is corrected for the current year). This approach takes into consideration

the initial capital cost of infrastructure, the expected design life of the assets, and the depreciation

of the assets. The data used in the depreciation calculations are included in Appendix C. Using this

approach, the value of the water system is estimated at $1,844,000.

The second valuation calculation that was performed utilized the total replacement cost less

depreciation approach. HMW estimated the total replacement cost (for new construction) based on

the quantities listed in Table 1. The detailed cost estimate includes the cost of materials, equipment,

and labor for the construction of the system and is included as Appendix D. Most of the value of the

fixed assets is contained in the distribution system due to the high cost of excavation for water line

installation. The total replacement cost of the fixed assets of the system is $8,332,000 (Table 6). The

depreciation of the system is 42%. Thus, the replacement cost less depreciation is $4,833,000. Table

7 summarizes the valuation of the water system. Although the book value approach may be

most applicable to a water utility, the true value of the system is the value that is ultimately

negotiated between the buyer and the seller.

Table 7. System Valuation Summary

Book Value $1,844,000

Replacement Cost - %Depreciation $4,833,000 Total Replacement $8,332,000

Table 6. Fixed Asset Replacement Costs

Item REPLACEMENT COST

Apple House Distribution $1,328,000

Apple House Pumps and Tanks $ 338,000


PAGE 6 LAU - 001

Echo Distribution $ 846,000

Echo Pumps and Tank $ 391,000 Fleetwood Distribution $1,975,000

Fleetwood Pumps and Tanks $ 416,000

Fleetwood Hydro Tank $ 198,000 Hebron Distribution $ 345,000

Hebron Pumps and Tanks $ 440,000 Laurel Park Pump Station $ 219,000

Sky Village Distribution $1,591,000 Sky Village Pumps and Tank $ 245,000

Total $8,332,000

Additional Considerations

Not included in the valuations above are the following: the Town’s current right-of-way and

easements used for the distribution system, the elevation of the current tanks, the land available to

expand on existing tank sites, and the ongoing value of the Town’s customer base.

1.5 ORGANIZATION

The Laurel Park Water System is managed by the Public Works Superintendent. The Superintendent

reports to the Town Manager. Maintenance technicians report to the Superintendent through the

Public Works crew leader. The maintenance technicians provide support for the water utility. In

addition, administrative support for billing and customer support for both water and sewer customers

are provided through the office of the Town Clerk. This organizational structure is depicted in

Appendix E.


PAGE 7 LAU - 001

2.0 OPTION 1 - MERGER

2.1 OVERVIEW

In this option, the Town of Laurel Park would sell the water system to the City of Hendersonville and

the City would bill customers directly. Capital improvements, maintenance, and operational cost

would be the responsibility of the City. Administrative costs for water billing would also be shifted to

the City, which would merge Town customers with its Outside Customer base. With the merger, the

Town envisions establishing a System Boundary Area, and new users of the water system within the

area could petition Laurel Park for annexation.

2.2 ORGANIZATIONAL IMPACT

Currently, Town administrative personnel maintain consistent customer service via phone and walk-

in traffic, and maintain the Town’s financial systems. With a merger, the Town would no longer

have administrative costs for water billing, collection, and customer support. Operational and

maintenance costs of the utility would be eliminated. Legacy labor costs would be absorbed by the

General Fund.

2.3 CUSTOMER IMPACT

If merged, the monthly water bill for a current Laurel Park user should decrease as the City’s rate

structure for out-of-city customers is lower than Laurel Park rates. The overall effect on a monthly

residential water bill (@5000 gallons/month) is shown in Figure 3. The blue line on the bottom

represents historical bills for the customers that used the City water system, but are outside of the

City limits. The orange portion of the line shows the average rate of increase continuing as the City

continues to implement its existing capital Improvements plan. Current out-of-City bills are about

$30 / month and are projected to increase to about $34 / month by FY 22. Current Laurel Park water

bills are about $42 / month and are projected to increase to about $52 / month by FY22.


PAGE 8 LAU - 001

Figure 3. Historical and Projected Monthly Residential Water Bill

2.4 BENEFITS TO TOWN OF LAUREL PARK

With the merger, the Town realizes several benefits. First, the town no longer is responsible for

capital improvements or other expenses associated with the water system. Second, the Town will

receive payment from the City for the negotiated value of the system. Current customers should see

little difference in the water service provided as Hendersonville has a good reputation for customer

response.

2.5 BENEFITS TO CITY OF HENDERSONVILLE

Under the merger, the City of Hendersonville receives several advantages. First, there is an immediate

increase in customer base that allows distribution of cost for capital improvements as well as

operations and maintenance. A jointly prepared, detailed match of the Town facilities with the City’s

Capital Improvement Plan (CIP) is required to reach an understanding of potential value of the Town’s

system to the overall City CIP.

2.6 FINANCIAL ANALYSIS

The effects of the merger on water rates are depicted in Figure 3 as discussed above. It is anticipated

that monthly residential water bills would be reduced under this option. The balance of monies

remaining in the Water Fund may be retained by Laurel Park at the time of the merger. Legal advice

may be required if the funds are used for purposes other than utility system expenses.

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

Monthly Laurel Park Residential Water Bill at 5000 gal

Hendersonville Outside Hendersonville Future (Estimated)

Laurel Park Laurel Park with CIP (Estimated)


PAGE 9 LAU - 001

3.0 OPTION 2 - MAINTAIN OWNERSHIP

3.1 OVERVIEW

With this option, the Town of Laurel Park will continue to own and operate the water utility and pay

the City of Hendersonville for water under the existing agreement. The primary challenge for the

Town would be to control water rate increases needed to fund capital improvements and increasing

maintenance and operational costs as the existing water system infrastructure continues to age.

3.2 ORGANIZATIONAL IMPACT

There would be no change to the organizational structure.

3.3 CUSTOMER IMPACT

In order to project future rate increases, a capital improvements plan for the water system is needed.

These estimated costs, presented as the cost of total replacement, are shown in Table 3. If the total

cost were distributed over existing water system users, the monthly residential water bill would have

to increase over the 20-year period. The yellow segment of the line in Figure 3 depicts the effect of

capital improvements on estimated future rates. Additionally, a full rate study is required to determine

actual rates after the specific capital needs are determined.

3.4 BENEFITS TO TOWN OF LAUREL PARK

The main benefit to the Town under this option is continuing to control the timing and magnitude

of water rate increases

3.5 FINANCIAL ANALYSIS

The Town will continue to operate as it is currently, pending the development of a Capital

Improvement Plan. Under this option, its anticipated increases in residential water rates will continue.


PAGE 10 LAU - 001

4.0 RECOMMENDATIONS

HMW recommends the merger of the Laurel Park Water System with the City of Hendersonville. In

this case, both parties derive benefits. Laurel Park customers could realize a reduction in monthly

water bills and the City of Hendersonville will realize an increase in water customer base.

The next steps required for the merger would be to jointly match the Town’s facilities with the City’s

CIP, followed by the drafting of an agreement with the City for sale of the water system at a

negotiated price. Specific terms and conditions for rate increases should also be negotiated between

the parties.

APPENDIX A

WATER USAGE AGREEMENT

WATER USAGE AGREEMENT

STATE OF NORTH CAROLINACOUNTY OF HENDERSON

THIS AGREEMENT, Made and entered into this 4 day of Oc,tolrrlv- ,2007,by and between the CITY OF HENDERSONVILLB, a municipal corporation and apolitical subdivision of the State of North Carolin a, party of the first part, hereinafterrefened to as "Seller", and the TOWIT{ OF LAUREL PARK a municipal corporationand a political subdivision of the State of North Carolinq party of the second part,hereinafter referred to as "Purchaser".

WITNESSTII:

WHEREAS, Purchaser, as a municipal corporation, has as one of its specified purposesthe construction, operation, and maintenance of a water supply distribution systemserving water users within the area described in plans now on file in the office of thePurchaser; and

WIIERBAS, to accomplish this municipal purpose it is necessary, and the Purchaser willrequire, a supply of treated water; and

WHEREAS, Seller, incidental to its municipal existence and as one of the servicesextended to persons within and without its corporate limits, owns and operates a watsrsupply dishibution system with a capacity currently capable of serving the presentcustomers of Seller's system, as well as the estimated number of water users to be servedby Purchaser; and

WHEREAS, the parties to this instnrment have maintained a historical relationship, thepurpose of which was to furnish to the Purchaser, from the production capacity of theSeller, sufficient potable water to meet the demands and requirements of its various users;and

WHEREAS, such relationship has been satisfactorily and appropriately maintained andperformed, in its entirety, by both of the parties to this agreanent; and

WIIEREAS, such satisfaction has been mutually agreed upon by the parties of thisagreement and, as a result therof, the parties desire to formalize the relationship as acontractual relationship established by this agreement and in conformance with the termshereof;and

WHEREAS, by resolution of the City Council of the City of Hendersonville, adopted onthe day of ,2007, the sale of water to Purchaser in accordance with theprovisions of the said resolution (which said resolution provisions are reflected in theterms and conditions of this agreonent) was approved and the execution of this contractcarrying was duly authorized; and

WHEREAS, by resolution of Town Council of Town of Laurel Park, as adopted on theday of Septernber 18,2007 , the purchase of water from Seller in accordance with theterms set forth in said resolution (which said conditions are in conformance with theterms of this agreement) was approved and the execution of this contract was dulvauthorized.

NOW' THEREFORE, in consideration of the foregoing and the covenants hereinafterset forth, the parties agree as follows:

A. Seller Agrees:

1. To furnish to Purchaser at the point of delivery hereinafter specified, during theterm of this contract or during any renewal or extension thereof, potable, treatedwater meeting applicable purity standards of the North Carolina Department ofEnvironment and Natural Resources, or comparable agency, in such quantity asmay be needed by Purchaser not to exceed 7,000,000 gallons per month.

2. That water will be furnished at a reasonably constant pressure from the existingmain supply at the Purchaser's side of the metering equipment located in themeter vault in front of the Purchaser's pump station # 1,2006 Laurel ParkHighway. If a greater pressure than normally available at the point of delivery isrequired by Purchaser, the cost ofproviding such greater pressure shall be borneby Purchaser. Emergency failures of pressure or supply due to main line breaks,power failure, flood, fire and the use of water to fight fire, earthquake, or othercatastrophe shall excuse Seller from this provision for such reasonable period oftime as may be necessary to restore services.

3. To operate and maintain at the point of delivery the necessary meteringequipment, including a meter building or vault, for properly measuring thequantity of water delivered to the Purchaser. The installation and maintenance ofsuch equipment shall be Seller's expense. Seller shall calibrate, or havecalibrated, such metering equipment once every 12-months and provide thePurchaser the results of said calibration testing. A meter registering 97.5% to142.5% shall be considered acceptable. The previous readings of any meterdisclosed by test to be inaccurate shall be corrected for the two months prior tosuch test in accordance with the percentage of inaccuracy found by such test,unless Seller and Purchaser shall agree upon a different amount. If any meterfails to register for any period, the amount of water delivered in the correspondingperiod immediately prior to the failure will be used as a measurement for theperiod, unless Seller and Purchaser shall agree upon a different amount. Themeter shall be read once each calendar month. Purchaser shall have reasonableaccess to the meter for the pu{pose of verifring its readings.

4. To provide Purchaser with an iternized statement of the amount of water furnishedthe Purshaser during any givar month. Such statement shall be providedPurchaser not later than ten calendar days after meter(s) is read as per paragraph 3above.

B.

l .

The Purchaser Agrees:

To pay Seller, not later than the 2l-days after the date of the statement for eachmonth, for water delivered in accordance with the current schedule of rates formunicipal water sales, as such rates or schedules shall be constituted as of the dateof the execution of this agreonent, 6r as the same shall be hereinafter amended.

To operate and maintain Purchaser's water distribution system, including allboostsr pumping station and storage tanks, in an efficient manner and to;uitablvcurtail, control, eliminate, and otherwise inhibit or allow the waste of water.

It Is Further Mutually Agreed Between the Seller and Purchaser as Follows:

That this contract shall extend for a term of lO-years from the date of execution ofthe same, and thereafter may be renewed or extended for such term or terms asmay be agreed upon by Seller and Purchaser.

That Seller will, at all times, operate, maintain its system in an efficient mannerand will take such actions as may be necessary to furnish purchaser withquantities of water required by Purchaser. Temporary or partial failures to deliverwater shall be rernedied with all possible dispatch. In the event of an extendedshortage of water, or in the supply of water available to Seller is otheirvisediminished ov€r an extended period of time, the supply of water to Purchaser'sconsumers shall be diminished or reduced in the same ratio or proportion as itssupply to Seller's consumers is reduced or diminished. If Seller implements itswater shortage ordinance (as the same is presently constituted, or may hereafterbe amended or changed) conditions concerning conservation of water, Purchasershall implernent water use restrictions of at least the same degree of severity,restriction and compliance for the duration of the Seller's water shortagecondition.

The provisions of this contract may be modified or altered by mutual agreernentof the parties hereto, but the same shall be of no force and effect until they shallhave been reduced to writing in form complimentary to the contents of thisagreement.

That this confract is subject to such rules, regulation or laws as may be applicableto similar agreements in the State of North Carolin4 and Seller and Purchaser willcollaborate in obtaining such permits, certificates or the like as may be required tocomply herewith.

2.

c.

l .

2.

3.

4.

D. Duties of the Seller:

The Seller shall at all times operate and maintain its systern in a good state ofrepair so that Purchaser may rely upon the delivery of a dependable source ofwater for redistribution to its customers, normal service intemrptions excepted.

Duties of the Purchaser:

The Purchaser shall install and maintain, at its sole expanse, all necessarybackflow devices as required by the Seller in the adopied water policies, asamended. The Seller reserves the right to inspect andto require the purchaser totest, repair, and replace these backflow devices as required with suchreplacements and/or repairs being charged to and paid by the purchaser.

The Purchaser shall be held liable for any detrimental backflow occurrence intothe Seller's water systern and the Purchaser shall indemniff the Seller for all costsassociated with a backflow occurrence resulting from the Purchaser's negligentactions.

General Provisions:

Any changes in applicable Federal or State laws or regulations requiring morereshictive changes in the operation of the purchaser's water syston shailautomaticallybecome a part of this Agreernent, and the Seller shall notiff thePurchaser within a reasonable length of time of any such changes. The purchaseragrees to conform thereto.

The Seller hereby acknowledges that Purchaser is purchasing this water for resaleto its customers. The Seller implies no warranty or responsibility for water qualityor quantity beyond Purchaser's metered connections listed previously.

The Purchaser shall provide the Seller a minimum advance written notice of 180days prior to activating any new water supply source or new purchased watersource.

The Purchaser shall indemniS and hold harmless the Seller, its officers,ernployees, and agents, from and against any damages, liabilities, judgments, fees(including reasonable attorney's fees and expert witness fees) or costs causedsolely by the negligence or willful misconduct of purchaser, its employees, oragents in connection with this Agreerneirt. The Seller shall indemnifi and holdharmless the Purchaser, its officers, ernployees and agants, from and against anydamages, liabilities, judgments, fees (including reasonable attorney's fees andexp€rt witness fees) or costs caused solely by the negligence or willfulmisconduct of the seller, its employees or agents in connection with thisAgreement.

E.

l .

2.

F.

1.

2.

3 .

4.

5.

6.

This Agreement is not to be construed as creating any third panybeneficiaries and may only be enforced by the parties herein.

This Agreement shall not be construed as a purchase of capacity in the watertreatment works owned and operated by the Seller nor shall this Agreernent bedeemed to be a dedication of capacity within such water works .ol"ly to or for thebenefit ofthe Purchaser nor shall the Purchaser be expected to pay any portion ofthe operation and maintenance costs of the Seller's treatment works and/ordistribution systern other than the payment of the purchase price of the watersupplied under this Agreernent.

This Agreement is between the Seller and purchaser and shall not beconstrued as creating a contractual relationship between the Seller and anyparticular customer of Purchaser nor shall any customer of purchaser haveany right or cause of action directly against the seller because of thisAgreemort. This Agreernent contains the entire agreement between theparties; and there are no representations, warranties, covenants, orundertakings other than those expressed and set forth herein.

This Agreement shall be constnred in accordance with the laws of NorthCarolina.

For purposes of providing notice in this agreement, the following contactpercons and addresses shall control unless changed in writing: the Sellercontact will be city of Hendersonville utilities Director, city ofHendersonville, Po Box 1760,305 williams street, Hendersonville, NC28793-1760. The Purchaser contact will be Town Manager, Town of LaurelPark,44l White Pine Drive, Laurel park, NC 28739-O9lO.

7.

8.

9.

IN wITNEss WHEREOF, The parties hereto, acting under authority of their respectivegoverning bodies, have caused this contract to be dulylxecuted in rour.ouni"rparts, eachof which shall constitute an original.

ACCEPTED BY THE CITY OF HENDERSONVILLE

By:

' Ttw.*^'1*tt-z DF-LQ--ANEST:

Tammie Drake, City Clerk

STATE OF NORTII CAROLINACOUNTY OF HENDERSON

WITNESS, my and notarial seal, this /J day of

"*rir" tr,, ^lu*,

I, a Notary Public in and for the State and lguntr aforesaid, do hereby certifu that Chriscarter, personally appgared before me, and_b_eing duly rr rorn, says that he is cityManager for the city of Hendersonville, and further that Tammie Ic Drake appearedbefore me, and being duly sworn? says that she is city clerl for the city of -'r'

Hendersonville, the corporation described in and which executed the foregoinginstrument; that she know the common leal of said City of HendersonvillJ; tholt the ,ealaffixed to the foregoing instrument is said common seJl, and that the nameof the city ofHendersonville was subscribed thereto by said City Manager, and that the said CityYgugtt and city clerk subscribed their names thereto, and said common seal wasaffixed, all by order of the city council of said city of iiendersonville, and that the saidinstrument is the act and deed of the said city of Hendersonville.

2007. My commission

Chris Carter, City Manager

Notary Public

ACCEPTED BY THE TOWN OF LAUREL PARK

(sEAL)

STATE OF NORTH CAROLINACOI]NTY OF HENDERSON

I, a Notary Public in and for the State and county aforesaid, do hereby certi$/ that Jamesw. Ball, Jr. personally appeared before T9, -d being duly sworn, says that he is TownManager of the Town of Laurel Park, and further that-Kimledy B. Hensley personallyappeared before me, and being duly sworn, says that she is Town clerk for the Town ofLaurel Park, the corporation described in and which executed the foregoing instrument;that she knows the common seal of said Town of Laurel park; that the seal affixed to theforegoing insfiument is said common seal, and that the name of the Town of Laurel parkwas subscribed thereto by said Town Manager, and that the said Town Manag?andTown clerk subscribed their names thereto, and said common seal was affixed, all byorder of the Town council of said Town of Laurel Park, ani that the said instrument isthe act and deed of the said Town of Laurel park.

WITNESS, my and notarial seal, this I f,4 ay of Sef.lemlv r ,2007. My commission"*Otr"r .

Karen W. Wills

ames W. Ball, Jr., Town Manager

, Town C

APPENDIX B

TANK MAINTENANCE CONTRACT

APPENDIX C

DEPRECIATION EXPENSE

S Description Life Bus./ Inv. %

Hebron - Water 50.0000 1,673.00 100.0000 0.00 0.00 1,673.00Hebron - Water 50.0000 3,443.00 100.0000 0.00 0.00 3,443.00Hebron - Water 50.0000 1,500.00 100.0000 0.00 30.00 1,500.00Hebron - Water 50.0000 416.00 100.0000 0.00 8.32 368.64Hebron - Water 50.0000 2,522.00 100.0000 0.00 50.44 2,250.88Hebron - Water 50.0000 514.00 100.0000 0.00 10.28 440.56Hebron - Water 50.0000 13,334.00 100.0000 0.00 266.68 11,480.36Hebron - Water 50.0000 7,810.00 100.0000 0.00 156.20 6,552.40Hebron - Line 50.0000 3,315.00 100.0000 0.00 66.30 1,122.60Echo - Water 50.0000 7,225.00 100.0000 0.00 144.50 6,089.00Echo - Water 50.0000 8,197.00 100.0000 0.00 163.94 6,559.88Echo - Water 50.0000 3,835.00 100.0000 0.00 76.70 3,002.40Echo - Water 50.0000 18,996.00 100.0000 0.00 379.92 14,439.84Echo - Water 50.0000 1,153.00 100.0000 0.00 23.06 736.12Echo - LPH 50.0000 27,076.00 100.0000 0.00 541.52 11,923.04Echo - Line 50.0000 12,472.00 100.0000 0.00 249.44 4,233.88Echo - Water 50.0000 113,305.00 100.0000 0.00 2,266.10 31,724.20Echo - Water 50.0000 166,138.00 100.0000 0.00 3,322.76 46,521.52Echo - Water 50.0000 66,189.00 100.0000 0.00 1,323.78 18,535.56Apple - Water 50.0000 1,153.00 100.0000 0.00 23.06 736.12Apple - Water 50.0000 38,459.00 100.0000 0.00 769.18 23,839.36Apple - Water 50.0000 63,221.00 100.0000 0.00 1,264.42 17,696.84Apple - Water 50.0000 188,669.00 100.0000 0.00 3,773.38 52,822.76


Apple - Water 50.0000 84,937.00 100.0000 0.00 1,698.74 23,785.48Sky Village - 50.0000 37,299.00 100.0000 0.00 745.98 22,379.96Sky Village - 50.0000 30,031.00 100.0000 0.00 600.62 12,620.24Sky Village - 50.0000 112,055.00 100.0000 0.00 2,241.10 31,374.20Sky Village - 50.0000 86,610.00 100.0000 0.00 1,732.20 24,248.40Sky Village - 50.0000 40,511.00 100.0000 0.00 810.22 11,340.44Sky Village - 50.0000 59,652.00 100.0000 0.00 1,193.04 16,702.08Sky Village - 50.0000 184,935.00 100.0000 0.00 3,698.70 51,785.40Sky Village - 50.0000 100,112.00 100.0000 0.00 2,002.24 20,020.48Fleetwood - 50.0000 28,130.00 100.0000 0.00 562.60 16,326.20Fleetwood - 50.0000 12,708.00 100.0000 0.00 254.16 5,842.32Fleetwood - 50.0000 572.00 100.0000 0.00 11.44 242.88Fleetwood - Line 50.0000 3,352.00 100.0000 0.00 67.04 1,139.08Fleetwood - 50.0000 35,359.00 100.0000 0.00 707.18 9,898.36Fleetwood - 50.0000 77,296.00 100.0000 0.00 1,545.92 21,643.84Fleetwood - 50.0000 22,000.00 100.0000 0.00 440.00 4,840.00

Cost / Other Basis Sec. 179/

Bonus

Salvage/ Basis

Adj.

56-6003436

System No.

Proprietary

Distribution System

63 7/1/1928 SL / N/A 0.00 1,673.00

Town of Laurel Park [Laurel Park]

Beg. Accum.

Depreciation

Current

Depreciation

Total

Depreciation

990, Pg 10 #1 - Form 990, Page 10

Sorted: General - tax link Federal07/01/2015 - 06/30/2016

9/27/201607/01/2015 - 06/30/2016 Depreciation Expense 2:52:52 PM

Date In

Service

Method / Conv.

64 7/1/1955 SL / N/A 0.00 3,443.0065 7/1/1966 SL / N/A 0.00 1,470.0066 7/1/1970 SL / N/A 0.00 360.3267 7/1/1971 SL / N/A 0.00 2,200.4468 7/1/1972 SL / N/A 0.00 430.2869 7/1/1973 SL / N/A 0.00 11,213.6870 7/1/1974 SL / N/A 0.00 6,396.2071 7/1/1999 SL / N/A 0.00 1,056.3072 7/1/1974 SL / N/A 0.00 5,944.5073 7/1/1976 SL / N/A 0.00 6,395.9474 7/1/1977 SL / N/A 0.00 2,925.7075 7/1/1978 SL / N/A 0.00 14,059.9276 7/1/1984 SL / N/A 0.00 713.0678 7/1/1994 SL / N/A 0.00 11,381.5279 7/1/1999 SL / N/A 0.00 3,984.4480 7/1/2002 SL / N/A 0.00 29,458.1081 7/1/2002 SL / N/A 0.00 43,198.7682 7/1/2002 SL / N/A 0.00 17,211.7883 7/1/1984 SL / N/A 0.00 713.0684 7/1/1985 SL / N/A 0.00 23,070.18

Page 4 of 756-6003436 Town of Laurel Park [Laurel Park] 9/27/201607/01/2015 - 06/30/2016 Depreciation Expense 2:52:52 PM

85 7/1/2002 SL / N/A 0.00 16,432.4286 7/1/2002 SL / N/A 0.00 49,049.38

Sorted: General - tax link Federal07/01/2015 - 06/30/2016

System No. Date In

Service

Method / Conv. Cost / Other Basis Sec. 179/

Bonus

Salvage/ Basis

Adj.

Distribution System

87 7/1/2002 SL / N/A 0.00 22,086.74

Beg. Accum.

Depreciation

Current

Depreciation

Total

Depreciation

990, Pg 10 #1 - Form 990, Page 10

Proprietary

88 7/1/1986 SL / N/A 0.00 21,633.9889 7/1/1995 SL / N/A 0.00 12,019.6290 7/1/2002 SL / N/A 0.00 29,133.1091 7/1/2002 SL / N/A 0.00 22,516.2092 7/1/2002 SL / N/A 0.00 10,530.2293 7/1/2002 SL / N/A 0.00 15,509.0494 7/1/2002 SL / N/A 0.00 48,086.7095 7/1/2006 SL / N/A 0.00 18,018.2496 7/1/1987 SL / N/A 0.00 15,763.6097 7/1/1993 SL / N/A 0.00 5,588.1698 7/1/1994 SL / N/A 0.00 231.4499 7/1/1999 SL / N/A 0.00 1,072.04100 7/1/2002 SL / N/A 0.00 9,191.18101 7/1/2002 SL / N/A 0.00 20,097.92102 7/1/2005 SL / N/A 0.00 4,400.00

Fleetwood - 50.0000 71,396.00 100.0000 0.00 1,427.92 12,851.84Waterline - Orr 50.0000 171,200.00 100.0000 0.00 3,424.00 30,816.00

1,908,770.00 0.00 38,073.08 585,549.16

0.00 0.00 0.00 0.001,908,770.00 0.00 38,073.08 585,549.16

Piercing Tool 10.0000 5,634.00 100.0000 0.00 0.00 5,624.00Phase Loss 10.0000 2,008.00 100.0000 0.00 0.00 2,008.00Pumps for 10.0000 3,495.00 100.0000 0.00 0.00 3,495.00Pumps for 10.0000 6,000.00 100.0000 0.00 0.00 6,000.00Pump for Echo 10.0000 1,310.00 100.0000 0.00 0.00 1,310.00

D Aquascope Leak 5.0000 1,625.00 100.0000 0.00 0.00 1,625.00Value Locator 5.0000 550.00 100.0000 0.00 0.00 550.00Safety 5.0000 4,117.00 100.0000 0.00 0.00 4,117.00Radio at Town 5.0000 1,750.00 100.0000 0.00 0.00 1,750.00Pump Station 10.0000 9,987.00 100.0000 0.00 0.00 9,987.00Hand Held Meter 10.0000 3,614.00 100.0000 0.00 0.00 3,614.00Sky Village 10.0000 1,010.00 100.0000 0.00 0.00 1,010.00Logics - 10.0000 3,880.00 100.0000 0.00 0.00 3,880.00Logics - 10.0000 6,297.00 100.0000 0.00 0.00 6,297.00Air Compressor 10.0000 10,164.00 100.0000 0.00 0.00 10,164.00Hand Held Meter 10.0000 8,245.00 100.0000 0.00 0.00 8,245.00Generac 15 KW - 10.0000 4,500.00 100.0000 0.00 0.00 4,500.00Ford Ranger 7.0000 18,712.00 100.0000 0.00 0.00 18,712.00L-Mic detection 7.0000 2,975.00 100.0000 0.00 425.00 672.92Echo pump 2 7.0000 3,970.00 100.0000 0.00 567.14 850.71Sky Village 7.0000 1,234.00 100.0000 0.00 176.29 264.44Pavement saw 5.0000 2,246.00 100.0000 0.00 187.17 187.17

103,323.00 0.00 1,355.60 94,863.24

1,625.00 0.00 0.00 1,625.00


101,698.00 0.00 1,355.60 93,238.24

4600.02 4600.02 4600.02

Computer equip to 4600.02 8,245.00 0.00 8,245.00

Comp software to 4600.01 10,177.00 0.00 10,177.00

Hebron Tank 0.0000 300.00 100.0000 0.00 0.00 0.00Hebron Tank 0.0000 100.00 100.0000 0.00 0.00 0.00Echo Tank Site 0.0000 1,100.00 100.0000 0.00 0.00 0.00Echo Tank Site 0.0000 2,727.00 100.0000 0.00 0.00 0.00Apple Tank Site 0.0000 5,000.00 100.0000 0.00 0.00 0.00Apple Tank Site 0.0000 6,000.00 100.0000 0.00 0.00 0.00Sky Village Tank 0.0000 1,500.00 100.0000 0.00 0.00 0.00Fleetwood Tank 0.0000 0.00 100.0000 0.00 0.00 0.00Fleetwood Tank 0.0000 29,474.00 100.0000 0.00 0.00 0.00

46,201.00 0.00 0.00 0.00

0.00 0.00 0.00 0.0046,201.00 0.00 0.00 0.00

104 7/1/2007 SL / N/A 0.00 27,392.00Subtotal: Distribution System 0.00 547,476.08

103 7/1/2007 SL / N/A 0.00 11,423.92

Equipment

10 7/1/1983 SL / N/A 0.00 5,624.00

Less dispositions and exchanges: 0.00 0.00Net for: Distribution System 0.00 547,476.08

11 7/1/1983 SL / N/A 0.00 2,008.0012 7/1/1986 SL / N/A 0.00 3,495.0013 7/1/1988 SL / N/A 0.00 6,000.0014 7/1/1991 SL / N/A 0.00 1,310.0015 7/1/1991 SL / N/A 0.00 1,625.0016 7/1/1991 SL / N/A 0.00 550.0017 7/1/1991 SL / N/A 0.00 4,117.0018 7/1/1992 SL / N/A 0.00 1,750.0019 7/1/1994 SL / N/A 0.00 9,987.0020 7/1/1996 SL / N/A 0.00 3,614.0021 7/1/1996 SL / N/A 0.00 1,010.0022 7/1/2002 SL / N/A 0.00 3,880.0023 7/1/2003 SL / N/A 0.00 6,297.0024 7/1/2003 SL / N/A 0.00 10,164.0025 7/1/2004 SL / N/A 0.00 8,245.0026 7/1/2005 SL / N/A 0.00 4,500.0027 7/1/2007 SL / N/A 0.00 18,712.00238 12/3/2014 SL / N/A 0.00 247.92

249 2/5/2016 SL / N/A 0.00 0.00Subtotal: Equipment 0.00 93,507.64

239 12/31/2014 SL / N/A 0.00 283.57240 12/31/2014 SL / N/A 0.00 88.15

07/01/2015 - 06/30/2016 Depreciation Expense 2:52:52 PMSorted: General - tax link Federal

07/01/2015 - 06/30/2016

Less dispositions and exchanges: 0.00 1,625.00

Page 5 of 756-6003436 Town of Laurel Park [Laurel Park] 9/27/2016

System No. Date In

Service


Bonus

Salvage/ Basis

Adj.

Beg. Accum.

Depreciation

Current

Depreciation

Total

Depreciation

Land

1 7/1/1946 No Calc / N/A 0.00 0.00

990, Pg 10 #1 - Form 990, Page 10

Proprietary

Net for: Equipment 0.00 91,882.64

2 7/1/1994 No Calc / N/A 0.00 0.003 7/1/1987 No Calc / N/A 0.00 0.004 7/1/1983 No Calc / N/A 0.00 0.005 7/1/1985 No Calc / N/A 0.00 0.006 7/1/1985 No Calc / N/A 0.00 0.007 7/1/1987 No Calc / N/A 0.00 0.00

Subtotal: Land 0.00 0.00

Less dispositions and exchanges: 0.00 0.00

8 7/1/1988 No Calc / N/A 0.00 0.009 7/1/2001 No Calc / N/A 0.00 0.00

Net for: Land 0.00 0.00

Laurel Park 50.0000 10,140.00 100.0000 0.00 202.80 7,104.60Laurel Park 50.0000 5,656.00 100.0000 0.00 0.00 5,656.00Laurel Park 50.0000 5,656.00 100.0000 0.00 0.00 5,656.00Laurel Park 50.0000 6,465.00 100.0000 0.00 0.00 6,465.00Laurel Park 50.0000 4,578.00 100.0000 0.00 91.56 3,403.12Replace Doors 50.0000 2,171.00 100.0000 0.00 43.42 1,032.84Laurel Park 50.0000 4,302.00 100.0000 0.00 86.04 3,010.08Sky Village - 50.0000 15,596.00 100.0000 0.00 311.92 3,119.84LPH-Replace 10.0000 2,469.00 100.0000 0.00 246.90 1,975.80Hebron-Replace 10.0000 3,900.00 100.0000 0.00 390.00 3,120.00Echo - upgrade 10.0000 3,800.00 100.0000 0.00 380.00 3,040.00LPH - Replace 10.0000 3,021.00 100.0000 0.00 302.10 2,416.20Fleetwood - 10.0000 2,984.00 100.0000 0.00 298.40 2,086.80Apple House - re- 10.0000 7,180.00 100.0000 0.00 718.00 3,590.00Hebron House - 10.0000 8,370.00 100.0000 0.00 837.00 2,511.00

86,288.00 0.00 3,908.14 54,187.28

0.00 0.00 0.00 0.0086,288.00 0.00 3,908.14 54,187.28

D Partial SCADA 50.0000 17,175.00 100.0000 0.00 314.88 8,570.38D Partial SCADA 50.0000 99,925.00 100.0000 0.00 1,831.96 47,808.46D SCADA 10.0000 4,574.00 100.0000 0.00 0.00 4,574.00D SCADA 10.0000 15,750.00 100.0000 0.00 0.00 15,750.00D SCADA 10.0000 9,315.00 100.0000 0.00 0.00 9,315.00

Miscellaneous 10.0000 1,962.00 100.0000 0.00 0.00 1,962.00SCADA system 10.0000 90,870.00 100.0000 0.00 757.25 757.25

239,571.00 0.00 2,904.09 88,737.09

146,739.00 0.00 0.00 86,017.8492,832.00 0.00 2,904.09 2,719.25

4600.07c 27,245.00 227.04 227.04 to 4600.0Computer equipment


Hebron Tank #1 50.0000 118,858.00 100.0000 0.00 2,377.16 54,671.32Hebron Tank #2 50.0000 83,601.00 100.0000 0.00 1,672.02 36,784.04Echo Tank #2 50.0000 133,364.00 100.0000 0.00 2,667.28 88,011.56Refurbish Echo 15.0000 37,460.00 100.0000 0.00 0.00 37,460.00Apple Tank #1 50.0000 28,500.00 100.0000 0.00 0.00 28,500.00Refurbish Apple 15.0000 19,000.00 100.0000 0.00 0.00 19,000.00Apple Tank #2 50.0000 68,702.00 100.0000 0.00 1,374.04 45,342.08Refurbish Apple 15.0000 67,567.00 100.0000 0.00 0.00 67,567.00Sky Village Tank 50.0000 28,500.00 100.0000 0.00 0.00 28,500.00Refurbish Sky 15.0000 41,560.00 100.0000 0.00 0.00 41,560.00Fleetwood Tank 50.0000 28,107.00 100.0000 0.00 0.00 28,107.00Refurbish 15.0000 43,114.00 100.0000 0.00 0.00 43,114.00Fleetwood Tank 50.0000 227,570.00 100.0000 0.00 4,551.40 63,714.80Fleetwood #2 10.0000 13,940.00 100.0000 0.00 0.00 13,940.00

Pump Houses

39 7/1/1980 SL / N/A 0.00 6,901.8043 7/1/1927 SL / N/A 0.00 5,656.0044 7/1/1927 SL / N/A 0.00 5,656.0045 7/1/1957 SL / N/A 0.00 6,465.0046 7/1/1979 SL / N/A 0.00 3,311.5647 7/1/1992 SL / N/A 0.00 989.4248 7/1/1981 SL / N/A 0.00 2,924.0449 7/1/2006 SL / N/A 0.00 2,807.9250 7/1/2008 SL / N/A 0.00 1,728.9051 7/1/2008 SL / N/A 0.00 2,730.0052 7/1/2008 SL / N/A 0.00 2,660.0053 7/1/2008 SL / N/A 0.00 2,114.1054 7/1/2009 SL / N/A 0.00 1,788.40

Subtotal: Pump Houses 0.00 50,279.14

Less dispositions and exchanges: 0.00 0.00

55 7/1/2011 SL / N/A 0.00 2,872.0056 7/1/2013 SL / N/A 0.00 1,674.00

Net for: Pump Houses 0.00 50,279.14

SCADA

57 7/1/1991 SL / N/A 0.00 8,255.5058 7/1/1992 SL / N/A 0.00 45,976.5059 7/1/1995 SL / N/A 0.00 4,574.0060 7/1/1999 SL / N/A 0.00 15,750.0061 7/1/2002 SL / N/A 0.00 9,315.00

Subtotal: SCADA 0.00 85,833.00


62 7/1/2002 SL / N/A 0.00 1,962.00250 6/1/2016 SL / N/A 0.00 0.00

07/01/2015 - 06/30/2016 Depreciation Expense 2:52:52 PMSorted: General - tax link Federal

07/01/2015 - 06/30/2016

Net for: SCADA 0.00 1,962.00

Page 6 of 756-6003436 Town of Laurel Park [Laurel Park] 9/27/2016

<<<<included in asset 250>>>>>>>>>

System No. Date In

Service


Bonus

Salvage/ Basis

Adj.

Beg. Accum.

Depreciation

Current

Depreciation

Total

Depreciation

990, Pg 10 #1 - Form 990, Page 10

Proprietary

Water Tanks

28 7/1/1993 SL / N/A 0.00 52,294.1629 7/1/1994 SL / N/A 0.00 35,112.0230 7/1/1983 SL / N/A 0.00 85,344.2831 7/1/1998 SL / N/A 0.00 37,460.0032 7/1/1926 SL / N/A 0.00 28,500.0033 7/1/1997 SL / N/A 0.00 19,000.0034 7/1/1983 SL / N/A 0.00 43,968.0435 7/1/1997 SL / N/A 0.00 67,567.0036 7/1/1926 SL / N/A 0.00 28,500.0037 7/1/1998 SL / N/A 0.00 41,560.0038 7/1/1926 SL / N/A 0.00 28,107.0040 7/1/1997 SL / N/A 0.00 43,114.0041 7/1/2002 SL / N/A 0.00 59,163.4042 7/1/2002 SL / N/A 0.00 13,940.00

939,843.00 0.00 12,641.90 596,271.80

0.00 0.00 0.00 0.00939,843.00 0.00 12,641.90 596,271.80

3,323,996.00 0.00 58,882.81 1,419,608.57

148,364.00 0.00 0.00 87,642.84

Equipment (101,698.00) (1,355.60) (93,238.24) Plant and distirbution 3,073,934.00 57,527.21 1,238,727.49

4600.02

Less dispositions and exchanges: 0.00 0.00Net for: Water Tanks 0.00 583,629.90

Subtotal: Water Tanks 0.00 583,629.90

1,331,965.73Net for: Proprietary 3,175,632.00 0.00 0.00 1,275,229.76 58,882.81

Subtotal: Proprietary 0.00 1,360,725.76


APPENDIX D

TOTAL REPLACEMENT COST

PROJECT: Apple House Zone

Subcontractor Equipment Material Labor Cost for

Description Quanity unit unit exten. unit exten. unit exten. unit exten. Bare Cost Distribution Total Cost- - - - -

Distribution Lines - - - - - - - - - - - - - -

2" PVC Waterline 9,046 LF 20.00 180,920.00 - - - 180,920.00 31,299.16 212,219.16 - - - - - - -

6" DIP Waterline 18,709 LF 36.00 673,524.00 - - - 673,524.00 116,519.65 790,043.65 - - - - - - -

8" DIP Waterline 5,787 LF 48.00 277,776.00 - - - 277,776.00 48,055.25 325,831.25 - - - - - - - - - - - - - -

Pump Stations and Storage Tanks - - - - - - - - - - - - - -

Pump House Structure 22' x 28' 618 SF 150.00 92,700.00 - - - 92,700.00 16,037.10 108,737.10 - - - - - - -

Booster Pumps 2 EA - - 13,500.00 27,000.00 750.00 1,500.00 30,840.00 5,335.32 36,175.32 - - - - - - -

Interior Piping & Valves LS 10,000.00 - - - 10,000.00 1,730.00 11,730.00 - - - - - - -

Site Piping 360 LF 48.00 17,280.00 - - - 17,280.00 2,989.44 20,269.44 - - - - - - -

100,000 gal. Storage Tanks 2 EA 90,000.00 180,000.00 - - - 180,000.00 31,140.00 211,140.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 1,432,200.00 - 27,000.00 1,500.00 1,463,040.00

Subcontractor 1,432,200

Contractor Equipment - -

Rented Equipment -

Material 27,000 Material Sales Tax 7% 1,890

Labor 1,500 Labor Burden 30% 450

Bond & Insurance 2.0% 29,261 29,261

Cost 1,492,301

OMP 15.0% 223,845 223,845

Total Project Cost: $1,716,146 Costs to be Distributed: $253,106 $1,716,146

PROJECT: Echo Zone



Distribution Lines - - - - - - - - - - - - - -

1" PVC Waterline 68 LF 15.00 1,020.00 - - - 1,020.00 176.46 1,196.46 - - - - - - -

2" PVC Waterline 4,402 LF 20.00 88,040.00 - - - 88,040.00 15,230.92 103,270.92 - - - - - - -

6" DIP Waterline 10,900 LF 36.00 392,400.00 - - - 392,400.00 67,885.20 460,285.20 - - - - - - -

8" DIP Waterline 5,004 LF 48.00 240,192.00 - - - 240,192.00 41,553.22 281,745.22 - - - - - - - - - - - - - -



Booster Pumps 2 EA - - 13,500.00 27,000.00 750.00 1,500.00 30,840.00 5,335.32 36,175.32 - - - - - - -


Site Piping 570 LF 48.00 27,360.00 - - - 27,360.00 4,733.28 32,093.28 - - - - - - -

210,000 gal. Storage Tanks 1 EA 190,000.00 190,000.00 - - - 190,000.00 32,870.00 222,870.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 1,024,012.00 - 27,000.00 1,500.00 1,054,852.00



Rented Equipment -



Bond & Insurance 2.0% 21,097 21,097

Cost 1,075,949

OMP 15.0% 161,392 161,392


PROJECT: Fleetwood Tank Zone

Subcontractor Equipment Material Labor Cost forDescription Quanity unit unit exten. unit exten. unit exten. unit exten. Bare Cost Distribution Total Cost

- - - - - Distribution Lines - - - - - - -

- - - - - - - 1" PVC Waterline 346 LF 15.00 5,190.00 - - - 5,190.00 897.87 6,087.87

- - - - - - - 2" PVC Waterline 3,481 LF 20.00 69,620.00 - - - 69,620.00 12,044.26 81,664.26

- - - - - - - 4" DIP Waterline 3,108 LF 30.00 93,240.00 - - - 93,240.00 16,130.52 109,370.52

- - - - - - - 6" DIP Waterline 42,106 LF 36.00 1,515,816.00 - - - 1,515,816.00 262,236.17 1,778,052.17

- - - - - - - - - - - - - -


Site Piping 560 LF 48.00 26,880.00 - - - 26,880.00 4,650.24 31,530.24 - - - - - - -

100,000 gal. Storage Tanks 1 EA 90,000.00 90,000.00 - - - 90,000.00 15,570.00 105,570.00 - - - - - - -

264,000 gal. Storage Tanks 1 EA 238,000.00 238,000.00 - - - 238,000.00 41,174.00 279,174.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 2,038,746.00 - - - 2,038,746.00



Rented Equipment -

Material - Material Sales Tax 7% -

Labor - Labor Burden 30% -

Bond & Insurance 2.0% 40,775 40,775

Cost 2,079,521

OMP 15.0% 311,928 311,928


PROJECT: Fleetwood Hydro Tank Station


Description Quanity unit unit exten. unit exten. unit exten. unit exten. Bare Cost Distribution Total Cost- - - - - - - - - - - -



Booster Pumps 2 EA - - 5,000.00 10,000.00 750.00 1,500.00 12,650.00 2,188.45 14,838.45 - - - - - - -


Site Piping 240 LF 48.00 11,520.00 - - - 11,520.00 1,992.96 13,512.96 - - - - - - -

3,000 gal Pressure Tank 1 EA 40,000.00 40,000.00 - - - 40,000.00 6,920.00 46,920.00 - - - - - - -

15 kW Generator 1 EA 25,000.00 25,000.00 - - - 25,000.00 4,325.00 29,325.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 156,520.00 - 10,000.00 1,500.00 169,170.00

Subcontractor 156,520


Rented Equipment -

Material 10,000 Material Sales Tax 7% 700


Bond & Insurance 2.0% 3,383 3,383

Cost 172,553

OMP 15.0% 25,883 25,883

Total Project Cost: $198,436 Costs to be Distributed: $29,266 $198,436

PROJECT: Hebron Tank Zone



- - - - - - - 2" PVC Waterline 1,611 LF 20.00 32,220.00 - - - 32,220.00 5,574.06 37,794.06

- - - - - - - 6" DIP Waterline 3,425 LF 36.00 123,300.00 - - - 123,300.00 21,330.90 144,630.90

- - - - - - - 8" DIP Waterline 2,885 LF 48.00 138,480.00 - - - 138,480.00 23,957.04 162,437.04

- - - - - - - - - - - - - -



Booster Pumps 2 EA - - 36,000.00 72,000.00 5,000.00 10,000.00 90,040.00 15,576.92 105,616.92 - - - - - - -


Site Piping 390 LF 50.00 19,500.00 - - - 19,500.00 3,373.50 22,873.50 - - - - - - -

100,000 gal. Storage Tanks 2 EA 90,000.00 180,000.00 - - - 180,000.00 31,140.00 211,140.00 - - - - - - -

PRV Valve and Vault 1 EA 10,000.00 10,000.00 - - - 10,000.00 1,730.00 11,730.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 578,700.00 - 72,000.00 10,000.00 668,740.00



Rented Equipment -


Labor 10,000 Labor Burden 30% 3,000

Bond & Insurance 2.0% 13,375 13,375

Cost 682,115

OMP 15.0% 102,317 102,317


PROJECT: Sky Village Tank



- - - - - - - 2" PVC Waterline 5,146 LF 20.00 102,920.00 - - - 102,920.00 17,805.16 120,725.16

- - - - - - - 3" PVC Waterline 1,356 LF 27.50 37,290.00 - - - 37,290.00 6,451.17 43,741.17

- - - - - - - 6" DIP Waterline 29,821 LF 36.00 1,073,556.00 - - - 1,073,556.00 185,725.19 1,259,281.19

- - - - - - - 8" DIP Waterline 2,973 LF 48.00 142,704.00 - - - 142,704.00 24,687.79 167,391.79

- - - - - - - - - - - - - -


Site Piping 70 LF 50.00 3,500.00 - - - 3,500.00 605.50 4,105.50 - - - - - - -

100,000 gal. Storage Tanks 1 EA 100,000.00 100,000.00 - - - 100,000.00 17,300.00 117,300.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 1,459,970.00 - - - 1,459,970.00



Rented Equipment -

Material - Material Sales Tax 7% -

Labor - Labor Burden 30% -

Bond & Insurance 2.0% 29,199 29,199

Cost 1,489,169

OMP 15.0% 223,375 223,375


PROJECT: Sky Village Pump Station





Booster Pumps 2 EA - - 13,500.00 27,000.00 750.00 1,500.00 30,840.00 5,335.32 36,175.32 - - - - - - -


Site Piping 50 LF 55.00 2,750.00 - - - 2,750.00 475.75 3,225.75 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 74,350.00 - 27,000.00 1,500.00 105,190.00



Rented Equipment -



Bond & Insurance 2.0% 2,104 2,104

Cost 107,294

OMP 15.0% 16,094 16,094


PROJECT: Laurel Park Pump Station


Description Quanity unit unit exten. unit exten. unit exten. unit exten. Bare Cost Distribution Total Cost- - - - - - - - - - - -



Booster Pumps 2 EA - - 22,500.00 45,000.00 1,500.00 3,000.00 52,050.00 9,004.65 61,054.65 - - - - - - -


Site Piping 180 LF 60.00 10,800.00 - - - 10,800.00 1,868.40 12,668.40 - - - - - - -

Flow Meter and Vault 1 EA 18,000.00 18,000.00 - - - 18,000.00 3,114.00 21,114.00 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Item Totals 134,300.00 - 45,000.00 3,000.00 186,350.00



Rented Equipment -



Bond & Insurance 2.0% 3,727 3,727

Cost 190,077

OMP 15.0% 28,512 28,512


APPENDIX E

LAUREL PARK ORGANIZATIONAL CHART


Page 4 of 8

5. Review of Summer 2017 Paving Bid – Will Buie

The responses to the paving bid package were due on Friday, June 2, 2017, and the Town received responses from three (3) companies, Tarheel Paving, JLS, and the Rogers Group. Engineer Will Buie has reviewed the submittals, and he and Town Manager Alexander will have a recommendation. In the proposed FY 2018 budget, the Town has $235,000 for road paving, and an additional $6,500 is budgeted to purchase the materials necessary for the Town patching. The proposed FY 2018 budget also contains $55,000 for storm drainage repairs. Attachment(s): bid tabulation

Suggested Motion: None.


Page 5 of 8

6. Resolution of Intent to Close Unopened Road Orchard Drive (Rhododendron Lake

Nature Park)

In April the Town completed the tax foreclosure process on parcel 9568061771 (REID 9906168), known as the Primrose property/Suhrie property, which borders Rhododendron Lake Nature Park. The Council may now close the unopened portion of the 30’ road previously named Orchard Drive, which borders this property and the current Rhododendron Lake Nature Park. This aids in the Council goal of combining all of the parcels which make up Rhododendron Lake Nature Park. North Carolina General Statute 160A-299, outlines a process for abandonment that applies to both open (active) streets and unopened streets. In this situation the Town is the applicant. If the Council chooses to adopt the resolution outlined below in Step 2, the public hearing will be scheduled for the July 18, 2017 Council Meeting, and the Council may vote to adopt an order closing the street at the same meeting. The Process

1. The Town must receive a written request from a property owner adjacent to the street as well as a map, survey, or drawing detailed enough to describe the street. Applicants may include additional information that may be of help in considering the request.

2. At a regularly scheduled meeting, the Town Council may adopt a resolution of intent to close the street, and call for a public hearing.

3. The resolution must be published for four (4) successive weeks in the newspaper, and mailed to adjoining property owners.

4. The Council will conduct the public hearing at a regularly scheduled meeting. Anyone may speak and advocate a position at the public hearing.

5. At that same meeting, the Council may vote to adopt an order closing the street. If passed, the order is recorded with the Register of Deeds, and the street is closed. The ROW is evenly divided between the adjacent properties.

Attachment(s): Aerial View from GIS Resolution 2017-2

Suggested Motion: To Adopt Resolution 2017-2, and Call for a Public Hearing at 9:30 a.m. on July 18, 2017.

Orchard Drive (Primrose Property)

Sources: Esri, HERE, DeLorme, USGS, Intermap, INCREMENT P, NRCan, EsriJapan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), MapmyIndia,NGCC, © OpenStreetMap contributors, and the GIS User Community

June 13, 2017

2017

0 0.03 0.060.015 mi

0 0.045 0.090.0225 km

1:1,807

:

alison

Highlight

Res. 2017-2

RESOLUTION OF INTENT TO CLOSE THE UNOPENED ROAD ORCHARD DRIVE

WHEREAS, the Town of Laurel Park received a petition to close the dedicated unopened road,

originally named Orchard Drive; and, WHEREAS, G.S. 160A-299 provides procedures for municipalities to permanently close streets

and alleys; and, WHEREAS, the Laurel Park Town Council considers it advisable to conduct a public hearing for

the purpose of giving consideration to the closing of the dedicated unopened road, Orchard Drive.

NOW, THEREFORE, BE IT RESOLVED by the Laurel Park Town Council that: (1) A public hearing will be held at 9:30 a.m. on the 18th day of July 2017 in the Laurel Park

Town Hall to receive public comment on closing the dedicated unopened road, Orchard Drive.

(2) The Town Clerk is hereby directed to publish this Resolution of Intent once a week for four

successive weeks in the Hendersonville Lightning, or other newspaper of general circulation in the area.

(3) The Town Clerk is further directed to transmit by registered or certified mail a copy of this

Resolution of Intent to each owner of property adjoining that portion of said street.

(4) The Town Clerk is further directed to cause adequate notices of this Resolution of Intent and the scheduled public hearing to be posted along said street, as required by G.S. 160A-299.

Adopted this 15th day of June 2017.

J. Carey O’Cain, Mayor ATTEST:

Kimberly B. Hensley, CMC Town Clerk


Page 6 of 8

7. Rhododendron Lake Nature Park Update

The Town contracted with Summit Marketing to prepare a fundraising campaign for Rhododendron Lake Nature Park. Commissioner Hansen has been working to finalize the donor recognition pavers in Rhododendron Lake Nature Park, and he and Manager Alexander have been working with Summit Marketing on the fundraising campaign. To date the Town has new commitments of $11,500 for Phase 3 of RLNP. After extensive research, a company has been identified to construct and install the pedestrian bridge at Rhododendron Lake Nature Park within the project budget. Attachment(s): Fundraising Flyer

Suggested Motion: None.

Town of Laurel Park

Town Council Annual Planning Retreat Minutes

March 24, 2017 – 9:00 a.m. The Laurel Park Town Council held its Annual Planning Retreat at the Hendersonville Country Club on March 24, 2017 at 9:00 a.m. Members present: Mayor J. Carey O’Cain, Commissioners: A. Paul Hansen, Dona M. Mennella, Robert O. Vickery, and George W. Banta. Staff present: Town Manager Alison Melnikova, Town Clerk Kim Hensley, Public Works Superintendent Andrew Griffin, and Police Chief Bobbie Trotter. Also present: Facilitator Erica Anderson, Land-of-Sky Regional Council, and Laurel Park Resident John Crook. Mayor O’Cain called the meeting to order at 9:00 a.m. Mrs. Anderson said the purpose of the meeting is to first review the current state of the Town and then set the Council’s goals for Fiscal Year 2018.

RESIGNATION OF COMMISSIONER MENNELLA

Commissioner Mennella said she has to resign from the Town Council due to health considerations. Her resignation will be effective at 5:00 p.m. on Friday, March 24, 2017. She said she thoroughly enjoyed her 16 years on the Council, and plans to continue to attend meetings when possible.

Commissioner Banta moved to accept Commissioner Mennella’s resignation. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

Mayor O’Cain said Commissioner Mennella served as the Town’s representative to Land-of-Sky and as the Town’s Finance Officer, and the Council must appoint someone to fill both roles. Mayor O’Cain said he would serve as the Town’s delegate to Land-of-Sky. Mrs. Melnikova said a Town Commissioner serves as the Finance Officer due to the size of the Town’s staff, and recommended internal controls. She spoke with the staff at the Local Government Commission, and they recommend the Town continue this practice rather than appoint the Town Manager or Town Clerk as Finance Officer. Commissioner Banta said he is willing to serve as the Town’s Finance Officer.

Commissioner Vickery moved to appoint Mayor O’Cain as the Town’s delegate to Land-of-Sky, and Commissioner Banta as Finance Officer. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

COUNCIL VACANCY

Mayor O’Cain asked for nominees to serve the remainder of Commissioner Mennella’s term, which ends December 14, 2017. There was discussion of the need to appoint someone interested in filing to run for a full four (4) year term. Commissioner Hansen suggested Nancy McKinley, who is currently serving on the Town’s Parks & Greenways Board.

Town Council Annual Planning Retreat Minutes March 24, 2017

Page 2

Commissioner Vickery moved to appoint Nancy McKinley to serve in the Town Council vacancy left by the resignation of Commissioner Mennella. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

FY 2017 BUDGET REVIEW

Mrs. Melnikova reviewed the General Fund through February 28, 2017 and projections for revenues and expenditures through June 30, 2017. She said revenues are at or above budget, but reminded the Council the final revenue figures, particularly sales tax, are not received until after the end of the Fiscal Year. The ABC Store stabilized its wholesale customer base, and revenues have returned to historical levels. Mrs. Melnikova said she is now projecting the use of $117,000 from Fund Balance rather than the $168,900 currently budgeted.

GENERAL FUND Estimated Revenues

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Property & MV Taxes 1,585,100 1,533,571 1,586,700 1,600 97% Sales and Use Taxes 576,000 272,635 576,000 0 47% Powell Bill 99,000 98,326 98,400 (600) 99% Utility Franchise & Sales Tax 135,000 65,792 135,000 0 49% ABC Funds 20,000 34,365 35,000 15,000 172% Other Revenue 77,600 29,945 71,800 (5,800) 39% Grant Proceeds 52,000 0 52,000 0 0% Revenue Subtotal $ 2,544,700 $ 2,034,634 $ 2,554,900 $ 10,200 80% Fund Balance Appropriation $ 168,900 $ - $ 117,000 $ (51,900) 0% TOTAL Estimated Revenues $ 2,713,600 $ 2,034,634 $ 2,671,900 $ (41,700) 75%

Property Tax – Budgeted 98% collection rate; will meet budget Sales Tax & Utility Sales Tax – 6 months of distributions received ABC Store Funds – Has returned to more historical levels Other Revenue – Reduced due to trade-in of old back-hoe

GENERAL FUND Appropriations

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Governing Body 35,600 22,433 34,600 (1,000) 63% Administration 440,300 252,604 427,600 (12,700) 57% Admin Capital Outlay 33,800 28,500 33,800 0 84% Public Safety 532,850 329,336 513,950 (18,900) 62% Police Capital Outlay 44,450 2,045 44,450 0 5% Public Works 1,020,600 656,616 1,016,500 (4,100) 64% Public Works Capital Outlay 100,000 98,718 99,000 (1,000) 99% Sanitation 160,000 89,839 156,000 (4,000) 56% Fire Protection 345,000 172,500 345,000 0 50% Transfer to Sewer Fund 1,000 0 1,000 0 0% TOTAL Appropriations $ 2,713,600 $ 1,652,591 $ 2,671,900 $ (41,700) 61%

All Departments – CY 2017 medical insurance increase was 6.7% instead of 8% Police & Public Works – Lower fuel and vehicle maintenance costs Public Works - Underspent in various line items. Increase in Storm Drainage Repairs to

$60,000 for contracted repair work on Timber Creek and Echo

FY 2017 Water Fund Council Goals:

Unaccounted Water Loss Rate – 15% – Not Met, but progress is being made.


Page 3

Begin Repayment of SCADA System Loan - Fully Met at approved repayment amount

WATER FUND Estimated Revenues

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Water Sales 345,000 238,974 345,000 - 69% Other Revenues 6,200 12,941 13,400 7,200 209% Revenue Subtotal $ 351,200 $ 251,915 $ 358,400 $ 7,200 72% Enterprise Fund Appropriation - - - - TOTAL Estimated Revenues $ 351,200 $ 251,915 $ 358,400 $ 7,200 72%

Other Revenues – Increased due to payment for water line (matching expenditure) Enterprise Fund Balance Appropriation – None required.

WATER FUND Appropriations

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Water Operations 176,300 74,419 183,500 $ 7,200 42% Water Purchases 129,000 69,840 129,000 $ - 54% Water Operations Capital Outlay 6,000 773 6,000 $ - 13% Water Administration 39,900 24,715 39,900 $ - 62% TOTAL Appropriations $ 351,200 $ 169,747 $ 358,400 $ 7,200 48%

Operations – Expenditure for water line extension offset by property owner payment. Water Purchases – Eight (8) months of bulk purchases Water Administration - Anticipated to meet budget

Mrs. Melnikova reviewed the Sewer Fund with Council. She said the Council set one (1) goal for the Sewer Fund in FY 2017: to begin to replenish the Fund Balance used for the SCADA System loan, and it’s been fully met.

SEWER Estimated Revenues

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Sewer Sales 79,000 49,174 79,000 - 62% Other Revenues 500 577 500 - 115% Transfer From General Fund 1,000 - 1,000 - 0% Transfer From Water Fund 4,000 - 4,000 - 0% Revenue Subtotal $ 84,500 $ 49,751 $ 84,500 $ - 59% Enterprise Fund Appropriation $ - $ - $ - $ - TOTAL Estimated Revenues $ 84,500 $ 49,751 $ 84,500 $ - $ 1

Enterprise Fund Balance Appropriation – Budgeted to return $7,500 to Fund Balance: $4,000 from Water Fund for SCADA loan and additional $3,500 from rate increase. As budgeted, the Town will have $403,000 in the Sewer Fund at the end of FY 2017.

SEWER Appropriations

FY 2017 AMEND. # 1

ACTUAL 2.28.17

Estimated Final

Est - Budget

% as of 2.28.17

Sewer Purchases 75,500 34,371 75,500 - 46% Professional Services 1,000 - 1,000 - 0% Miscellaneous 500 - 500 - 0% Transfer to Fund Balance 7,500 - 7,500 - 0% TOTAL Appropriations $ 84,500 $ 34,371 $ 84,500 $ - 41%

Sewer Purchases – Overpayment to Hendersonville corrected in February.


Page 4

Previous Budget Goals Mrs. Melnikova reviewed the previous budget goals with Council. It was the consensus of Council to update the list for use in the FY 2018 budget, with planned discussion later in the day.

1. Financial A. Fund Balance - Stay above $1 million to maintain Town’s ability to respond to a natural

disaster. – Fully Met B. Tax Rate – No change in rate for three (3) years - Fully Met C. Employee Benefits

Maintain 401(k) contribution of 5% for Police and 4.5% for all other employees – Fully Met

No additional changes to employee medical insurance due to mid-year insurer change – Fully Met

Implement Merit Pay again as a combination of base pay and one-time bonus – Fully Met

2. Infrastructure A. Streets – Continue with the second year of three (3) to use all Powell Bill funds and 3-

cents in property tax revenue towards street resurfacing and stormwater maintenance. – Fully Met

B. Walking Path/ Sidewalks – Request updated cost to install a sidewalk between White Pine and Primrose to connect Laurel Green and Rhododendron Lake Park – Fully Met

3. Services A. Police – Maintain same service level – Fully Met B. Fire – Continue to request a voting member on the Valley Hill Board – Not Met C. Sanitation

Assume the County will implement solid waste flow control, which will increase the Town’s cost – Fully Met

Successfully lobbied against flow control ordinance Increased public education to increase recycling rate. – Not Met

D. Yard Waste - Maintain once a year brush collection service in April. – Fully Met E. Capital Expenditures – Consider equipment leases when practical. – Partially Met –

Lease evaluated, but not used. 4. Facilities

B. Commissioner Vickery volunteered to conduct a space needs analysis at Town Hall and Public Works. - Partially Met – Analysis complete, but no consensus on action with Public Works.

C. Town Hall Any efforts at Town Hall should include the addition of a public restroom with

exterior access so park users (both Laurel Green and Rhododendron Lake Nature Park) will have access on the weekends.

No consensus on whether the goal should be a renovation of the existing building or new construction. All agreed the location of Town Hall at the corner of Laurel Park Highway and White Pine Drive is ideal. – Not Met – but, Public Works was prioritized by Council.

D. Public Works Enhance physical security and potentially cameras. – Not Met


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Funding will continue for maintenance – Fully Met 5. Amenities

A. Parks Fund and complete Phase 3 of Rhododendron Lake Nature Park to encourage full use

of the Park. Maximize the use of grants and donations to accomplish. – Partially Met – funding in place, project will extend into FY 18

Increase maintenance of Laurel Green as needed. - Partially Met – Ongoing; Continue kudzu removal at Rhododendron Lake and other Town properties. – Partially Met – Ongoing

B. Wayfinding/ Signage – Request an update from the TDA on the County-wide wayfinding project - Partially Met – funded in FY 17 budget; awaiting final information from TDA; Continue to fund two (2) historical markers a year with the LPCA Partially Met – funded, but new markers not complete

C. Contributions to other organizations Consider as they are received – no set budget percentage or cap amount. – Fully Met The Ecusta Trail remains a top priority. – Fully Met

Fund Balance History & Projections Mrs. Melnikova said the FY 2017 Budget currently has $168,900 in Fund Balance Appropriated, and she currently estimates the Town to use $117,000. As a result, the Town will have a fund balance of $1,303,073, or 49% on June 30, 2017. Mrs. Melnikova cautioned another recession or significant weather event could negatively impact actual figures.

REVIEW COMPREHENSIVE PLAN GOALS AND MULTI-YEAR COMMITMENTS

1. US 64 Corridor A. NCDOT Widening - Mrs. Melnikova and Mayor O’Cain reported on their meeting with

NCDOT representatives. DOT said they will perform additional traffic counts, particularly at the Blythe Street intersection, to confirm their projections regarding the feasibility of roundabouts. The selected option should be announced in early fall 2017. Mrs. Melnikova said the Town will have to fund 20% of the cost of the sidewalk in Laurel Park, and will need to need to speak with the City and County regarding the sidewalk in the unincorporated areas along US 64.

B. Town Re-zonings - Mrs. Melnikova said the Planning Board was progressing slowly on the

first of the two (2) new zoning districts along US 64. This is partially because the new district regulations are an attempt to address some weaknesses within the Town’s overall Zoning Ordinance. After talking with Kristy Carter of JM Teague Engineering, the Planning Board will start over with a review of the entire Zoning Ordinance, and then add the new districts.

2. Future NCDOT Projects Commissioner Banta said NCDOT is performing a new prioritization process, and as the Town’s representative to the French Broad Metropolitan Planning Organization (MPO) he’s been asked to provide Laurel Park’s priorities. After discussion it was the consensus of the Council to include improvements, including sidewalks, along White Pine Drive, the continued widening of


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US 64 West to the 88-acre parcel, and remind DOT of the potential for another connection between White Pine Drive and Brevard Road. Commissioner Hansen moved to request NCDOT lower the speed limit on White Pine Drive through Laurel Park from the current 35 MPH to 25 MPH. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. Mrs. Melnikova said she would submit the request to NCDOT and let the Council know the process and timeline when received. 3. Facilities

A. Public Works – Commissioner Vickery said he wants to see progress on both Public Works and the Town Hall facilities within the next year. He said he knows a firm which can provide a construction estimate for the Public Works office/bunkhouse building as designed. It was the consensus of the Council to order the facility estimate. Mayor O’Cain and Commissioner Vickery said they would get quotes on modular buildings for comparison.

B. Town Hall – Mrs. Melnikova said there are several immediate needs for maintenance and

functionality at Town Hall. She received quotes to replace the single-paned windows, install security gates at the front counter, and replace the carpet. There was discussion on the need for a restroom to serve Laurel Green. Mrs. Anderson said she had some information regarding pre-fab restroom buildings she will share so the Council will be able to compare the cost of a stand-alone facility with a Town Hall addition.

C. Parks – There was a wide-ranging discussion of the maintenance and capital needs of the Town parks, including routine maintenance and invasive plant removal on Town properties. Rhododendron Lake Nature Park - Mayor O’Cain said Rhododendron Lake Nature Park’s Phase 3 will be complete in Fiscal Year 2018, and the donation efforts need to be re-energized. Commissioner Hansen said he discussed a fundraising campaign with Chris Burns of Summit Marketing, and will begin working on it again. He said he will have a donor recognition proposal within the next month for review. Laurel Green - Commissioner Hansen said he’d like to see some of the landscaping at Laurel Green refurbished, and the plant identification markers re-instated. Mrs. Melnikova said the Town will need plant identification assistance for the markers. Jump Off Rock – It was the consensus of the Council to continue with tree removal for view maintenance every other year, and there is little need for additional improvements at the time. Commissioner Hansen said he’s discussed decorative lighting with the Laurel Park Civic Association, and may have a proposal soon for the Council to consider.

D. Other Properties – Mrs. Melnikova said she was approached by a property owner who

wanted to know if the Town might be interested in purchasing several of his lots for a Park. She said he did not give her a cost during their conversation, as he said he first wanted to


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know if the Town was at all interested. It was the consensus of the Council that Mrs. Melnikova let him know of its interest in reviewing a cost proposal.

WATER SYSTEM

Water System Performance Update Mr. Griffin reviewed Public Works Activities from December 2016 – March 2017: Checked: 44 valves, 151 meters, and 89 hydrants. As a result the Department found: 5 leaking meters; 1 2-inch main break; 1 non registering faulty meter; and 1 leaking hydrant. They also replaced 86 meters (avg 18 yrs old), a Faulty RTU; installed 4 soft starters at 2 pump houses, and ordered 3 1-inch meters to replace aged meters in Country Ridge (19 yrs old). Mr. Griffin also requested outside assistance from NC Rural Water Association twice, in January & March. Mrs. Melnikova conducted an AWWA review, which recommended 5 years of data for accurate measurement of leak detection efforts. As a result of the above efforts, March 2016 – February 2017 (prior 12 months) had 23% unaccounted water. The Town purchased 111,000, or 0.2% less water than the same period in 2016. Customer usage (billed) was up 753,100 or 2.2% for the same period. Mrs. Melnikova said the same period of March 2015 – Feb 2016 was 25.3%, so the Town had a 9% reduction in our unaccounted water rate. She said if the Town purchased the same volume, but had a 15% unaccounted rate, purchase cost would have been $19,791, or an avoided cost of $10,493. On Track to Meet 20%: Have billed 66% of goal and purchased 62% Actual

To-Date Cost Goal (gal) Cost

($2,830/ mil gal) Purchased 27,680,300 $ 78,335 45,000,000 $ 127,350

Sold 23,160,400 $ 65,312 35,000,000 $ 98,700 Operations Usage 302,100 $ 852 1,050,000 $ 2,961 Net Unaccounted 4,217,800 $ 11,936 8,950,000 $ 25,329

Mrs. Melnikova and Mr. Griffin reviewed the activities planned for April – September 2017:

A. Continue leak detection and data monitoring; Monthly night detection B. Identify next 10% of meters for replacement C. Install additional soft starters from FY 17 budget D. Utilize RWA for additional assistance as needed E. In May provide an updated rolling 12-month comparison. F. Continue leak detection and data monitoring; Monthly night detection G. Install next 10% of meters for replacement H. Install soft starters from FY 18 budget I. July & September - provide an updated rolling 12-month comparison

Water Merger Study Preliminary Report Gene Haynes and William Nicholas of Hulsey, McCormick and Wallace were in attendance to present their preliminary recommendations regarding the Town’s Water System and potential for selling the system to the City of Hendersonville. The presentation is included via reference. (A copy of the presentation is attached to these minutes and incorporated herein by reference).


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Commissioner Hansen asked if there was a way to actually see the interior condition of a pipe without digging it up. Mr. Nicholas said not visually, but you will see increased pumping costs because the line size is reduced due to scale and corrosion. Mr. Crook said when the Town replaced the iron ductile pipe in the 1990’s it had very little corrosion and deposits.

There was a discussion of the methodologies used to value the system. Mr. Nicholas said the requested Net Revenue calculation is not one commonly used for utilities, and he recommends removing it from consideration.

Mr. Haynes said the Total Book Value is the most defensible valuation, and is most commonly used for water and sewer systems. There are items within the Town’s system which are fully depreciated, but operational, so they have zero book value. He said in his experience a system should be planning to replace an 89-year-old water tank, and the Town currently doesn’t have a plan to methodically save funds for capital items. Mr. Haynes said the Total Replacement, less depreciation, shows the system is approximately 42% depreciated.

Based on their examination, the value of the system is between $1.8 and $4.6 million. Mr. Haynes said the true value of the system will be determined by negotiations, and this figure is the value of the hard assets only. There was a discussion of how the Laurel Park system may be of value to the Hendersonville Water Master Plan. Mayor O’Cain asked Mr. Haynes and Mr. Nicholas to refine the impact of the Town system on the City, and provide a value of the Town’s customer base to the City. Mr. Nicholas said he can further examine the City’s master plan to see how the Town’s system may impact the City’s capital improvement plan.

FY 2018 BUDGET PRIORITIZATION

Review of Preliminary Budget – Mrs. Melnikova said due to the later timing of the Council Retreat, she has received most revenue estimates for FY 18, and departmental requests, allowing her to draft a budget for the Council to review the differences between the FY 17 and FY 18 budgets. She said she made some assumptions regarding Council priorities, and will make adjustments based off of today’s feedback and Council’s goals prior to the scheduled budget review at the April Work Session.

General Fund – Revenues

Property values flat. Motor Vehicles increase 5% - 98% Collection rate Maintain tax rate of $0.43/$100 in value. Net to the Town is $0.335/$100, or $1,240,000.

$0.095 is a pass through to Valley Hill Fire & Rescue. Sales Tax - 1.5% increase over FY 2017 Estimated Final Budget ABC Store Funds 7% decrease over FY 2017 Estimated Final All other revenue flat Utilities Sales Tax - No change from FY 2017 Estimated Final Grant Proceeds – PARTF $40,000 for Rhododendron Lake Nature Park Fund Balance Appropriation – Proposed budget would use $197,800, which will leave a

final FBA of $1,098,930 (40%). Additional $229,000 (8%) reserved by state statute.

General Fund – Expenditure Highlights Administration: Branding effort - $6,000; Ordinance codification - $10,000; Election - $3,000


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Administration Capital: Parking lot repairs - $ 20,000; building repairs & improvements windows, carpet, counters - $ 26,400; 2 desktop computers - $ 4,400 Police: Animal control immunizations & equipment - $ 9,000; body worn cameras - $ 5,500; installment payment (3 of 3) for 2015 patrol vehicle - $ 11,600 Police – Capital: One patrol vehicle - $36,500; vest replacements, 3 computers, and 6 mobile printers - $ 6,500 Public Works: Road and stormwater repairs - $ 290,000; installment payment (3 of 3) for 2015 truck/snow plow - $ 14,200; pavement condition study - $ 6,000; GIS mapping of Town infrastructure - $ 10,000; Rhododendron Lake Nature Park Phase 3 - $ 80,000 Public Works – Capital: Replace tractor - $ 68,000; Replace 2004 truck & dump bed on existing truck - $ 47,000 What’s not in this budget: Funding for a new Public Works facility - cost to be determined.

Water Fund – Revenues

Anticipate 2% increase in bulk and retail rates from Hendersonville & 2% increase to Town’s usage rate only.

Net impact is $600. Assumes Town purchases 45,000,000 gallons, with an additional cost of $2,500, and sells 34,500,000 gallons, with revenue of $ 3,100.

Town resident rate impact of 2% rate increase is $0.09 increase for every 1,000 gallons. o FY 2017: $4.58 / 1,000 gallons o FY 2018: $4.67 / 1,000 gallons

No change to Fixed charge of $19.00 / month No change in tap and impact fees No use or addition to Fund Balance. Maintains Water Fund Balance of $181,200 (51%)

Water Fund – Expenditure Highlights Water Purchases - $131,000; utilities - $ 29,000 Water Operations - Tank maintenance contract - $ 35,000; Materials for System Repairs - $ 24,500; 2016 SCADA loan repayment to Sewer Fund (year 2 of 10) - $ 4,000; Soft Starters - $ 8,000; Pump House maintenance - $ 2,200

Water Administration - No significant changes

Sewer Fund - Revenues

SCADA Loan Repayment from Water Fund - $4,000 Same budgeted sales revenue as FY 2017 budget Annual General Fund Transfer of $1,000 Interest income increased from $500 to $800 Anticipate 2% increase in bulk and retail rates from Hendersonville & 2% increase to

Town’s usage rate only. Net impact is $100 revenue. Assumes treatment of 10,300,000 gallons, with an

additional cost of $1,365, and Town revenue of an additional $1,465.


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Town resident rate impact of 2% rate increase is $0.14 increase for every 1,000 gallons. o FY 2017: $7.18 / 1,000 gallons o FY 2018: $7.32 / 1,000 gallons

No change to Fixed charge of $1.00 / month

Sewer Fund – Expenditure Highlights

Transfer of entire loan repayment back to Fund Balance

Personnel (Impacts General Fund and Water Fund) FY 2018 personnel costs are projected to be $26,100 less than FY 2016, due to the change in medical insurance provider in FY 2016.

Employer Retirement Contributions Year 3 of 3 of the 401(k) Parity plan. Increase from 4.5% to 5% for Administration and

Public Works personnel. Police already receive 5%. Cost of increase is $2,900. Year 2 of 5 of increase of LGE Retirement System Contribution rate by .25% for

non-LEO and LEO. Additional annual .25% increases scheduled through 2021. Total impact, if assume 2% increase in total payroll each year, is $9,300: $5,800 for General Employees, and $3,500 for Law Enforcement.

Salary & Wages

1.0% COLA for all employees 2.0% Merit Pool – combination of base pay addition and one-time bonuses for specific

trainings and certifications.

Health Insurance 8% Medical premium increase on January 1, 2017 Same Plans - Medical with the State Health Plan and Vision, Dental and Life through

NCLM Eligible employees with Town contributions for dependent coverage will contribute 22%

of the premium, the same percentage since FY 2014.

FY 2018 COUNCIL BUDGET & SERVICE GOALS

After discussion, the Council established the goals below for FY 2018:

1. Financial A. Fund Balance

Stay above $1 million to maintain Town’s ability to respond to a natural disaster. B. Tax Rate

No change in rate C. Employee Benefits

401(k) contribution of 5% for all employees No additional changes to employee medical insurance Continue Merit Pay as a combination of base pay and one-time bonuses

2. Infrastructure


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A. Streets Continue to use all Powell Bill funds and 3-cents in property tax revenue towards

street resurfacing and stormwater maintenance. Plan and begin to address shoulder/drainage issues in Town

B. Walking Path/ Sidewalks Pursue purchase/donation of property to Town in strategic locations

3. Services A. Administration

Pursue broadband internet access for business and residential use Investigate paperless agenda process

B. Police Provide officers with required animal control immunizations Pursue all available grant funding to add a full-time Police officer position in FY 19 Maintain same service level

C. Fire Continue to request a voting member on the Valley Hill Board

D. Sanitation Public education campaign to increase recycling rate.

E. Yard Waste Add a fall brush collection prior to leaf pickup. Increase the cost of mulch to $50 a load

F. Capital Expenditures Consider equipment leases when practical.

4. Facilities A. Town Hall

Any efforts at Town Hall should include the addition of a public restroom with exterior access so park users (both Laurel Green and Rhododendron Lake Park) will have access on the weekends.

No consensus on whether the goal should be a renovation of the existing building or new construction. All agreed the location of Town Hall at the corner of Laurel Park Highway and White Pine Drive is ideal.

B. Public Works Construct the office/bunkhouse Cost estimates of security, including physical security and potentially cameras. Continue funding building maintenance

5. Amenities A. Parks

Fund and complete Phase 3 of Rhododendron Lake Nature Park to encourage full use of the Park. Maximize the use of grants and donations to accomplish.

Increase maintenance of Laurel Green as needed. Continue kudzu removal at Rhododendron Lake and other Town properties.


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B. Wayfinding/ Signage Request an update from the TDA on the County-wide wayfinding project Continue to fund two (2) historical markers a year with the LPCA

C. Contributions to other organizations Continue to consider as they are received – no set budget percentage or cap amount. The Ecusta Trail remains a top priority.

CLOSING REMARKS

Mrs. Anderson thanked the Council for all of its discussion and input. Mrs. Melnikova said the budgetary goals would be included in her draft budget for Fiscal Year 2018, which the Council will review at the April Work Session.

ADJOURNMENT

Commissioner Hansen moved to adjourn at 2:59 p.m. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. ATTEST:

J. Carey O’Cain, Mayor

Kimberly B. Hensley, CMC Date Town Clerk

Town of Laurel Park

Town Council

Agenda Work Session Minutes May 11, 2017 - 9:30 a.m.

The Laurel Park Town Council held an Agenda Work Session in Town Hall on May 11, 2017 at 9:30 a.m. Members present: Mayor J. Carey O’Cain, Mayor-Pro-Tempore Robert O. Vickery, and Commissioners A. Paul Hansen, George W. Banta, and Nancy P. McKinley. Staff present: Town Manager Alison Alexander. Mayor O’Cain called the meeting to order at 9:30 a.m.

Award of Rhododendron Lake Nature Park Phase 3 Ms. Alexander reported the Town received three (3) bids for Phase 3 of Rhododendron Lake Nature Park on April 21st.

Allison Contractors Southwinds Landscapes Trace & Co. Total Base Bid $173,103.00 $137,770.25 $231,079.50

She and Hunter Marks, Public Works Superintendent Griffin, Mayor O’Cain, and Commissioner Banta reviewed the bids, and requested clarification from the apparent low bidder, Southwinds Landscaping on several items. As a result, Mr. Marks recommended the Town make the following award to Southwinds Landscaping:

Base Bid of $136,589; the addition of the construction of a boardwalk on the existing “island” on the east side of the lake in the amount of $5,780; and an allowance for the Primrose pedestrian bridge, with a separate contract and potentially separate vendor in the amount of $30,000, for a construction total of $172,369.

Mr. Marks’ recommendation letter states, “the approved PARTF project cost estimate dated April 19, 2016 totaled $154,727 before contingencies and fees. The recommended total bid of $172,369 exceeds this number by $17,642.” Ms. Alexander said she recommends Council award Rhododendron Lake Nature Park (RLNP) Phase 3 as presented. The Town will appropriate $76,000 in Fund Balance for FY 2018 for Rhododendron Lake Nature Park, out of a total fund balance appropriation of $130,800, leaving a Fund Balance Available of $1,192,614. The amount of fund balance used can be reduced by increased fundraising. Commissioner Hansen moved to award the bid for Rhododendron Lake Nature Park Phase 3 to Southwinds Landscapes, as presented. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

Approval of Pavers for Donor Recognition at Rhododendron Lake Nature Park Commissioner Hansen said he recommends the Town utilize pavers at Rhododendron Lake Nature Park to recognize the donors at the lake overlook area. It’s the most cost effective method he’s found to recognize the current 82 donors, and will more easily allow the Town to add future

Town Council Work Session Minutes May 11, 2017

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donors. If approved, the Town will order several pallets of brick to have engraved and laid by Southwinds. The Town will maintain a supply of extra bricks for future donations. The plaza will contain 900 bricks, and the goal is to sell a total of 235 bricks. Commissioner Hansen presented mock-ups of the type of messages that could be placed on a brick, and said the Town will need to contact existing donors to find out exactly what they want engraved, within the space allowed. Commissioner Banta reported the Parks & Greenways Board reviewed and approved the plan at its May meeting. Mr. Marks said he had a pattern for laying the bricks. Commissioner Hansen asked for Council approval before proceeding with a notification/information request to current donors, and a campaign with Summit Marketing to solicit additional donations. Commissioner Banta moved to approve the use of bricks for donor recognition at Rhododendron Lake Nature Park and the companion marking campaign, as presented. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

Fleetwood Drive ROW Closure Request – Modified from Prior Request Ms. Alexander recapped the April Work Session discussion in which the Council reviewed a request to close the unopened 40’ ROW for Fleetwood Drive from Michael and Virginia Erwin, who are purchasing the lot located at 178 Deerwood Lane (PIN 9558-06-1435). At that time the Council declined to further consider the request. After considering the Council’s decision to maintain the ROW for a possible walking trail, the Erwins requested time on the agenda to request Council to close half of the ROW that abuts their property. She said the Erwins have concurrently submitted a variance application for the setback requirements, which will be reviewed by the Board of Adjustment at its meeting at 4:00 p.m. on May 11th. The Erwins, their architect Brian Price, and builder Eli Anthony were in attendance and presented their request for a partial closure of the ROW. The request is being made due to the slope of the lot and the drainage from Fleetwood Plaza which discharges onto the property. There was discussion between the attendees and Council about various methods to site a house on the property. Mayor O’Cain said the Council’s discussion had no bearing on the case to be presented to the Board of Adjustment. He asked if the Erwins had discussed the narrowing of the ROW with the other properties which abut the ROW, and they said no. It was the consensus of the Council that the Erwins discuss the closure request with their neighbors, and determine, after the Board of Adjustment case, whether the request is needed.

Unnamed ROW Closure Request Ms. Alexander said Tim Ertzberger requested the Town close the unopened right-of-way (ROW) for an unnamed road which divides parcel 9558577229 (REID 9926114). The parcel is bordered by three (3) roads: Laurel Park Highway, Elm Lane, and Sabine Drive, and is located within the R-30 Zoning District, which has a minimum lot size of 30,000 square feet, or .689 acres. Mr. Ertzberger said he’s interested in subdividing the lot into two (2), possibly three (3) parcels, but the triangular piece created by the ROW is a challenge due to the setback requirements. Mr. John Crook said this particular ROW was not identified for future use for a sewer line. Commissioner Banta asked if he would be interested in trading a similar amount of land at the intersection of Elm and Sabine for use as a future pocket park, which was an arrangement used


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by the Council in 2016 for another ROW closure. Mayor O’Cain asked Mr. Ertzberger to draw up a plan giving the Town an amount of property equal to the area of the unopened ROW. Mr. Ertzberger said he’d return for the May Regular Meeting with a modified drawing.

Laurel Park Civic Association (LPCA)/Friends of Laurel Park (FLP) Dinner Update Ms. Alexander said in April the LPCA and FLP asked the Town to be the primary sponsor of a community dinner event on June 22, 2017 at Hendersonville Country Club. The Council requested the two (2) organizations review the need for the Town sponsorship, and if the need remains, devise a plan in which participants may hear the Mayor present the “State of the Town” without having to purchase a meal. Friends of Laurel Park President Mindy Collins reviewed the following plan with Council: Residents may arrive at 5:30 p.m., the Mayor speak at 6:00 p.m., and dinner (for those who pre-registered) will begin at 6:30 p.m. No one will be required to purchase dinner or be a member of the LPCA or FLP in order to hear the Mayor speak.

Commissioner Banta moved to approve the Town of Laurel Park as the primary sponsor of a community event on June 22, 2017. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

Jump Off Rock Improvements, Phase 2 Don McIntyre, member of the Parks & Greenway Board and former LPCA President, said at the May 9, 2017 Parks & Greenways Board meeting the Board, at his request, asked Town Council further discuss Phase 2 of improvements at Jump Off Rock. Ms. Alexander said the last Council discussion regarding Jump Off Rock improvements was on May 17, 2016, when two (2) representatives from the LPCA attended the Council Meeting, and the Council did not take any action. Mr. McIntyre said he believes the LPCA raised funds which were intended to be used only for Jump Off Rock improvements, and there are funds remaining after the successful completion of Phase 1. Mr. McIntyre said Commissioner Hansen attended the January 2017 LPCA meeting and said the Town wasn’t interested in doing additional work at Jump Off Rock. Commissioner Hansen asked if this was reflected in the LPCA meeting minutes and Mr. McIntyre said he didn’t know. Ms. Mindy Collins said she was also at the January LPCA meeting, and the Board determined at the time no promises were made to sponsors regarding the location at which funds would be used. Mayor O’Cain said Mr. McIntyre’s item is one (1) he may want to discuss with the LPCA. Commissioner Banta said the Council’s priority park for capital improvements is Rhododendron Lake Nature Park. Mayor O’Cain said the Town is working with the LPCA on the repairs to the CCC walls along Laurel Park Highway, and Commissioner Hansen said he is working with LPCA President Mark Morse on lighting for Jump Off Rock from GE. Mayor O’Cain said the Town is constantly working to maintain and improve all Town properties.

Response from NCDOT on White Pine Drive Speed Limit Request Ms. Alexander reported after the Council request in March for NCDOT to lower the speed limit on White Pine Drive from 35 MPH to 25 MPH, she contacted Doyle Ward, Division 14 Assistant Traffic Engineer, who conducted a traffic study. Based on the study results, NCDOT does not recommend lowering the speed limit.


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Parks & Greenways Board Vacancy Mayor O’Cain said the Council needs to decide who to appoint to the vacancy on the Parks & Greenways Board, to serve the remainder of a term ending December 31, 2018. The Town has received applications from Jim Tinkler and Gary Anderson within the past year, and Council may choose to appoint one (1) of these individuals, or call for more applications. Commissioner Hansen moved to appoint Gary Anderson to the Parks and Greenway Board, to a term ending December 31, 2018. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

AGENDA REVIEW FOR THE MAY 16, 2017 COUNCIL MEETING 1. Call to Order 2. Pledge of Allegiance 3. Approval of the Agenda 4. Consent Agenda

A. Minutes from the April 13, 2017 Work Session B. Minutes from the April 18, 2017 Regular Meeting C. Proclamation – Clerks Week, May 7th – 13th D. Proclamation – Police Week, May 14th – 20th E. Proclamation – Public Works Week, May 21st – 27th F. Approval of the Annual Audit Contract

5. Public Hearing A. None

6. Old Business A. Parks & Greenways Board Vacancy

7. New Business A. Budget Amendment #2 for Fiscal Year 2016 – 2017 Budget B. Presentation of the Proposed Fiscal Year 2017 – 2018 Budget C. Call for a Public Hearing on the Proposed FY 2018 Budget at 9:30 a.m. on June 20, 2017

8. Town Manager Report 9. Department Head Reports

A. Public Works B. Police C. Administration

10. Public Comment 11. Mayor and Commissioner Comments 12. Adjournment

Item 7.A. - Budget Amendment #2 for Fiscal Year 2016 – 2017 Budget Ms. Alexander said since the adoption of the current budget in June 2016, one (1) budget amendment has been required to maintain a balanced budget, and reallocate funds where needed. Budget Amendment #2 finalizes the budgetary changes necessary to continue operating through June 30, 2017, while maintaining a balanced budget. She said the budget notebooks for the Fiscal Year 2018 Proposed budget will be available Monday afternoon.


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COUNCIL UPDATES AND INFORMATION Jump Off Rock Property Survey – Ms. Alexander said she was contacted by the attorney for an adjoining property owner, whose recent property survey showed the parking area for Jump Off Rock encroaches on her parcel. She asked the attorney to ask his client if she would be interested in selling the parcel to the Town, and if so, provide a cost. After discussion, it was the consensus of the Council to postpone the survey and combination of the Town’s Jump Off Rock parcels, which is currently underway. Mayor O’Cain suggested the Town ask attorney Gordon Langer to instead combine the parcels at Rhododendron Lake Nature Park and return to Jump Off Rock at a future time. Water Merger Study – Ms. Alexander reported she had provided comments to Hulsey, McCormick and Wallace, and expects to receive a second draft of the water merger study within the next week. WXZ Property – Ms. Alexander said the developer will be in Town for several meetings with Town staff and consultants. Josh Freeman, planning consultant with JM Teague, will be attending the June Council Work Session to review the Residential Planned Unit Development (RPUD) process with Council in anticipation of a project submittal this summer.

ADJOURNMENT There being no further business, Commissioner Hansen moved to adjourn the meeting at 11:36 a.m. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. ATTEST:

J. Carey O’Cain, Mayor


Town of Laurel Park

Town Council

Regular Meeting Minutes May 16, 2017 - 9:30 a.m.

The Laurel Park Town Council held its Regular Meeting in Town Hall on May 16, 2017 at 9:30 a.m. The following members were present: Mayor O’Cain, Mayor Pro-Tempore Robert O. Vickery, Commissioners A. Paul Hansen and Nancy McKinley. Commissioner George W. Banta was absent. Staff present: Town Manager Alison Alexander, Town Clerk Kim Hensley, Police Chief Bobbie Trotter, Deputy Town Clerk Heather McGaha, Public Works Superintendent Andrew Griffin, and Town Attorney Monica Gillett-Stallings. Mayor O’Cain opened the regular meeting and led the Pledge of Allegiance. APPROVAL OF AGENDA Commissioner Vickery moved to approve the Agenda. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. APPROVAL OF THE CONSENT AGENDA A. Minutes from the April 13, 2017 Work Session B. Minutes from the April 18, 2017 Regular Meeting C. Proclamation – Clerks Week, May 7th – 13th D. Proclamation – Police Week, May 14th – 20th E. Proclamation – Public Works Week, May 21st – 27th Commissioner Hansen moved to approve the Consent Agenda. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. PUBLIC HEARING There was none. OLD BUSINESS Unnamed ROW Closure Request - Tim Ertzberger Mayor O’Cain said at the Work Session on May 11th, the Council reviewed a request from Tim Ertzberger to close the unopened right-of-way (ROW) for an unnamed road which divides parcel 9558577229 (REID 9926114). The parcel is bordered by three (3) roads: Laurel Park Highway, Elm Lane, and Sabine Drive. It’s located within the R-30 Zoning District, which has a minimum lot size of 30,000 square feet, or .689 acres. Council asked Mr. Ertzberger if he could reconfigure the lot to achieve both his goal of having a minimum of two (2) buildable lots and the Town’s goal of maintaining the same amount of property for public use.

Town Council Meeting May 16, 2017

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Mr. Ertzberger presented his map of the reconfigured lot and explained how it benefited the Town and himself. He said his goal was to give the Town land that is functional. Mayor O’Cain and Commissioner Hansen agreed the reconfigured lot did not benefit the Town. After brief discussion of possible revisions, it was decided between Council and Mr. Ertzberger should meet with Mayor O’Cain and Ms. Alexander to discuss a new layout before the June Council Meeting. Fleetwood Drive ROW Closure Request – Michael & Virginia Erwin Mayor O’Cain said in April the Council received a request to close the unopened 40’ ROW for Fleetwood Drive from Michael and Virginia Erwin, who are purchasing the lot located at 178 Deerwood Lane (PIN 9558-06-1435). At the Work Session Council declined to further consider the request. The Erwins attended the May Work Session to request Council close a portion of the ROW. Eli Anthony, the Erwins’ contractor, presented a drawing of the lot and informed Council of the variance granted by The Board of Adjustment to allow a 10’setback from the unopened ROW for Fleetwood Drive. Mr. Anthony asked Council to further consider the request for a portion of the ROW to be closed. Council voiced concern for several reasons including adjoining property owners. Mrs. Erwin presented several options to Council including selling a portion of her property to the Town in exchange for the portion of the ROW being closed. Commissioner Hansen recommended a meeting with the Erwins and neighboring property owners to discuss options that could work for the Town. Mr. and Mrs. Erwin expressed they are open to ideas and would work with the Town to find a solution. Mayor O’Cain, Commissioner Hansen, and property owners affected will meet with the Erwins. NEW BUSINESS Budget Amendment #2 for Fiscal Year 2016 – 2017 Budget Town Manager Alexander said since the adoption of the current budget in June 2016, one (1) budget amendment has been required to maintain a balanced budget, and reallocate funds where needed. Budget Amendment #2 finalizes the budgetary changes necessary to continue operating through June 30, 2017, while maintaining a balanced budget.


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Commissioner Hansen moved to adopt Amendment #2 to the Fiscal Year 2016-2017 Budget Ordinance, as presented. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. Presentation of the Proposed Fiscal Year 2017 – 2018 Budget Ms. Alexander presented the following 2017-2018 Budget Message: Presented herein is the proposed Town of Laurel Park budget for Fiscal Year 2017 – 2018. The budget was prepared in accordance with the North Carolina Local Government Budget and Fiscal Control Act and represents the Town Manager’s recommended budget, as prepared with your direction and guidance from the budget workshops. The budget is balanced and identifies all revenue and expenditure estimates for the fiscal year.


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As you work through this document and move toward adoption on June 20th my role is to ensure that you and the residents have the information needed to understand and support the Town’s budget, whether as proposed or as modified by Council. The budget contained herein represents the long-range goals of the Council to maintain Laurel Park as a fiscally sound and desirable community, one that provides tangible benefits and services to all residents by maintaining services at their current levels, and improving the Town’s infrastructure, particularly roads and the water system.

General Fund $ 2,732,300 Water Fund $ 350,400 Sewer Fund $ 84,800 Total All Funds $ 3,167,500

This budget achieves a number of Council policy goals:

Completion of Rhododendron Lake Nature Park – first conceived by residents in 1984 Dedicated funding to road and stormwater improvements Routine replacement of critical vehicles and equipment Return of a second brush pickup service Continued implementation of 2026 Comprehensive Plan:

o Creation of two (2) new Zoning Districts o Development of a Branding Plan for the Town

Economic Environment The economic outlook for the county and the state as a whole remains positive. After the property tax, sales tax is the second largest revenue source for the Town. As a primarily residential community, Laurel Park is dependent on the commercial and industrial growth outside of our own borders to sustain non-property tax revenue sources such as sales tax. This budget reflects a stable organization, service level, and economy. Tax Rate In 2016 the Town’s property tax base grew 0.125% to $ 345,822,400. The proposed 2018 budget maintains the current property tax rate of $0.43 per $100 valuation. Each penny of the tax rate generates approximately $37,500 in revenue.

9.5 Cents Paid to Valley Hill Fire & Rescue Department for fire protection services.

33.5 Cents Retained by the Town for General Fund services.

Laurel Park is one (1) of five (5) municipalities in Henderson County, and is one (1) of three (3) to offer a full slate of municipal services. Of the three (3), Laurel Park has the lowest tax base, middle tax rate, and maintains the highest number of miles of road per capita.


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Tax

Rate 1 Tax Base (Real)2 Pop. 3 Police Fire Streets4 Parks Garbage Water

Hendersonville 0.46

1,485,304,999

13,824 65.75 separate fee

Laurel Park 0.43

345,742,850

2,239 32.95 in tax rate

Fletcher 0.34

760,661,181

7,698 23.05 in tax rate

Mills River 0.18

808,866,234

7,222 partial

Flat Rock 0.11

839,764,328

3,275

1 FY 2017 Adopted Budgets 3 FY 2016 State Demographer Est 2 HC FY 2018 05.04.17 Total Projected Value 4 Powell Bill eligible street mileage

Fund Balance The Local Government Commission (LGC) of North Carolina requires municipalities maintain a General Fund Balance of 8% of expenditures, which equals one-month’s average expenditures. The Town will retain $227,600 as restricted Fund Balance. The actual Fund Balance of any municipality is influenced year-to-year by the variability of cash flows within the budget year, economic conditions, debt owed or contemplated, future capital needs, natural disasters, and more. The Town has budgeted the use of Fund Balance in nine (9) of the ten (10) prior fiscal years (2008 – 2017), but has only twice required its use – in FY 2009 and 2010 during the height of the recession and the ice storm. In every other year the Town returned money to Fund Balance. The Town’s available Fund Balance is projected to be at 48% at the end of fiscal year 2017. The FY 2018 budget uses Fund Balance to assist with one-time expenditures. With the implementation of this budget, the Town’s estimated unrestricted Fund Balance for June 30, 2018 is approximately 44%, or $1,195,000.

Although not always tied to a specific item, for FY 2018 the use of $128,500 in Fund Balance is for specific budgetary items:


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$40,000 Rhododendron Lake Nature Park (RLNP) Phase 3 Construction

$18,000 RLNP Phase 3 Design and Construction Contingency

$18,000 RLNP Phase 3 actual bids versus grant cost estimates. These funds are budgeted, but the actual need may be reduced through public donations.

$44,500 Police vehicle & equipment

$ 8,000 Town Hall sign area


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General Fund The General Fund includes the services that most residents see on a daily basis – police and fire protection, garbage collection, street and stormwater maintenance, snow removal, park maintenance, and the Town’s administrative and finance department functions.

Estimated Revenues

FY 2017 AMEND. #

2

FY 2018 Proposed

Difference (FY 18 - FY

17) Percentage

Change Property Taxes 1,599,200 1,605,100 5,900 0% Sales and Use Taxes 610,000 617,000 7,000 1% Powell Bill (road maintenance) 98,300 97,300 (1,000) -1% Utility Franchise & Sales Tax 135,000 135,000 - 0% ABC Funds 39,000 42,500 3,500 9% Other Revenue 65,800 66,900 1,100 2% Grant Proceeds 92,000 40,000 (52,000) -57% Revenue Subtotal $ 2,639,300 $ 2,603,800 $ (35,500) -1% Fund Balance Appropriation 91,600 128,500 36,900 40% TOTAL Estimated Revenues $ 2,730,900 $ 2,732,300 $ 1,400 0%

(See Section 3 of the Budget notebook for a more detailed explanation of each revenue)


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General Fund Appropriations

FY 2017 AMEND. # 2

FY 2018 Proposed


17) Percentage

Change Governing Body 34,600 39,600 5,000 14%

Administration 472,200 440,400 (31,800) -7% Admin Capital Outlay 56,200 22,400 (33,800) -60%

Police 511,950 542,650 30,700 6% Police Capital Outlay 44,450 45,250 800 2%

Public Works 1,007,500 1,023,000 15,500 2% Public Works Capital Outlay 102,000 112,000 10,000 10%

Sanitation 156,000 157,000 1,000 1% Fire Protection 345,000 349,000 4,000 1%

Transfer to Sewer Fund 1,000 1,000 - 0% TOTAL Appropriations $ 2,730,900 $ 2,732,300 $ 1,400 0%


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Capital Expenditures In order to repair roads, maintain parks, and respond to police calls, employees need reliable equipment and facilities. Capital items are those that cost more than $1,000 and which have a lifespan of more than one (1) year. The Town will spend $187,650 on capital items:

Administration Computer x2 $ 4,400 Parking Lot Repairs $ 10,000 Sign Enhancements $ 8,000

GRAND TOTAL ADMINISTRATION $22,400 Police

Vehicles Ford Explorer (vehicle & radio) $ 36,500

Equipment Vests $1,500 Computer $2,000 Laptops & Printers $5,250

GRAND TOTAL POLICE $45,250 Public Works

Vehicles Truck with Plow & Dump Bed $44,000

Equipment Tractor $ 68,000

GRAND TOTAL PUBLIC WORKS $112,000 Public Works Facility Improvements The proposed budget does not contain funds for the construction/purchase of a new Public Works office and bunkhouse. By creating a separate office/training room/bunkroom building, we will be able to utilize a full bay in the existing mechanics building for equipment and vehicle storage, moving items currently stored outside. The Council may choose to proceed with the building after cost estimates are received in June 2017, or after receiving the FY 2017 audit report in October. In either case, a budget amendment to utilize fund balance will be required. Of Note: Rhododendron Lake Nature Park In 2016, the Town received a NC Parks & Recreation Trust Fund grant to construct Phase 3 of Rhododendron Lake Nature Park. Combined, the FY 2017 and 2018 Budgets contain an expenditure of $200,000 on Rhododendron Lake Nature Park, partially offset with $70,000 in PARTF grant funds and $15,000 in public donations. The more funds raised in donations, the less will be required from the Town. With the completion of Phase 3 in the summer of 2018, the significant work at the park will be complete, and future budgets will reflect routine maintenance and incremental improvements.


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Road Repairs and Maintenance – included within Public Works Budget This budget commits $290,000 to road and stormwater repairs, or 10.6% of the total General Fund. $235,000 is for contracted paving work to take place this summer. The paving work is currently out to bid, with the Council scheduled to award in June 2017. An additional $55,000 is budgeted for stormwater repairs. Sanitation (Trash Collection) The $157,000 expense for trash collection is composed of two (2) distinct costs: 1) A flat monthly collection fee based on the number of households, and 2) A tipping fee, or the charge per ton to dispose of the waste at a landfill. Residents are not charged a separate fee for trash collection.

Household Collection Increase The contract with Republic Services is subject to an annual adjustment, as tied to a specific Consumer Price Index (CPI). A 1.5% increase in the collection in the charge per household increases the monthly cost from $8.28 to $8.40. The total cost of trash collection for 1220 households is $121,250.

Employee Compensation Municipal services are labor-intensive, and any changes to personnel costs have an impact on the entire budget. I am proud of our employees and their work, and believe they, like everyone, deserve fair compensation. This budget includes a 1.0% cost-of-living-adjustment (COLA) for all employees, and a merit pool of 2.0% to provide evaluation-based merit and certification increases ranging from 0.0% - 2.0% for all employees. Additionally, this budget includes a 5% employer contribution to the NC401(k) plan for all employees. The Town already contributes a mandated 5% to the 401(k) plan for Police officers, and this budget represents equity among all employees. Many of the items above were possible only due to significant changes to the Town’s Health Insurance coverage in FY 2016. This included a change to eligibility for spousal coverage, and most significantly, a change in the Town’s employee Health Insurance provider. In FY 18 the Town will spend $172,000 on all employee health insurance. For comparison, in FY 2015 the Town spent $300,000. Health Insurance The Town purchases employee Dental, Vision, and Life Insurance through the NC League of Municipalities Municipal Insurance Trust (MIT) . As a result of General Assembly action in 2015, the Town joined the State Health Plan in March 2016. An increase of 8% for Medical Insurance is budgeted to begin on January 1, 2018. Vision, Dental, and Life are still with MIT. Dental will increase by 5.4% on July 1, 2017; no change to Vision.


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The Town will continue to pay 100% of the premium for all employees. Additionally, the Town will continue to pay 78% of the premium for dependent coverage for those employees hired prior to January 1, 2012. Water Fund The Town provides direct water service to the majority of our residents, 815 households, with the remaining residents and businesses served directly by the City of Hendersonville. The Water Fund is an enterprise fund, which means it should be self-sustaining and not receive assistance from the General Fund to operate. In reality, there remains significant overlap between the two (2) funds, with the General Fund purchasing equipment and providing unreimbursed personnel support to enable the water system to function. The total amount can vary between $70,000 and $100,000, depending on the equipment or vehicle needs of the Water Fund. Public Works continues with leak detection and repair efforts. For FY 2017 the Town is on track to meet a 21% unaccounted water loss rate, down significantly from the 26% rate in FY 2016. The Water Fund maintains a separate fund balance from the General Fund. Fund were deliberately used in FY 2014 for equipment expenditures. In FY 2016 the Town returned $11,500 to the Water Fund Balance, an amount comparable to prior years, and critical to maintaining funds for system repairs and maintenance.

Estimated Revenues

FY 2017 AMEND. # 2

FY 2018 Proposed


17) Percentage

Change Water Sales 345,000 347,000 2,000 1% Other Revenues 13,300 3,400 (9,900) -74% Revenue Subtotal 358,300 350,400 (7,900) -2% Enterprise Fund Appropriation 0 0 0 TOTAL Estimated Revenues $ 358,300 $ 350,400 $ (7,900) -2%

$202,767 $209,949 $220,302

$236,573 $226,186

$169,678 $181,262 $181,262 $181,262

78% 79% 85% 82% 72% 47% 54% 52% 52% $-

$50,000

$100,000

$150,000

$200,000

$250,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 -Proposed

Water Fund Total Equity By Fiscal Year


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Water Revenue reflects all the fees paid by customers – usage and a fixed charge. Hendersonville has proposed a water rate increase for FY 2018 of 1.5% for municipal and outside water customers. Laurel Park Water usage rates are proposed to increase by 1.5%. For the average customer, this increase is 25-cents a month, or 50-cents per billing cycle. Water sales are budgeted at $160,000. No change is proposed to the Fixed Charge of $19/month. Fixed Charge Revenue is budgeted at $185,000. Due to a 2016 NC Supreme Court case, Quality Built Homes, Inc. v. Town of Carthage, the NC General Assembly is expected to clarify municipal authority to charge capacity fees for new utility connections. This budget and accompanying fee schedule eliminates capacity fees until the Town again has clear authority. Many municipalities, including neighboring Hendersonville, have suspended these fees until resolved by the General Assembly. The Council may amend the fee schedule and budget when and if the legislation is passed. Capacity fees amount to $2,000 - $3,000 annually.

Water Appropriations FY 2017 AMEND. # 2

FY 2018 Proposed


17)

Percentage

Change Water Operations 183,400 169,800 (13,600) -7% Water Purchases 129,000 131,000 2,000 2% Water Operations Capital Outlay 6,000 8,000 2,000 33% Water Administration 39,900 41,600 1,700 4% TOTAL Appropriations $ 358,300 $ 350,400 $ (7,900) -2%

Expenditures for the Water Fund are kept as minimal as possible while still allowing basic cost recovery and system maintenance. Water Purchases The increase in Water Purchases reflects the 1.5% rate increase from Hendersonville to the Town. Water Operations Excluding water purchases, 38% of the Operations Budget is the direct charge for Public Work’s personnel time spent on the water system. $35,000 or 20% is for water tank maintenance contract, and 18% is for the system’s pump house utility and maintenance costs. Funds for Equipment, Supplies, and Repairs to the System total $24,500. These expenditures are necessary to continue with leak detection and repair efforts, and maintaining an efficient water system. This year $8,000, or 4.5%, is included as a capital expenditure to continue the installation of pump soft starters. $4,000, or 2%, is included for the SCADA loan repayment to the Sewer Fund (year 2 of 10). Water Administration Over 93% of this budget is used to pay for the creation, acceptance and tracking of customer account and billing data: Administrative personnel time, the utility billing

https://appellate.nccourts.org/opinions/?c=2&pdf=35099


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software, bill printing, and postage. 7% is for the property insurance premiums for the water system. Sewer Fund The Sewer Fund is an enterprise fund, with 304 customers. The Town doesn’t own the sewer collection system, but bills for and collects for sewer service used by Town residents who receive water service from the Town. Annually the Town contributes a nominal amount to the Sewer Fund reserve from the General Fund for the future of expansion of sewer in Town. The proposed FY 2018 budget maintains this $1,000 transfer, and includes a $4,000 payment from the Water Fund for the SCADA System loan in FY 2016.

Estimated Revenues

FY 2017 AMEND. #

2

FY 2018 Proposed


17) Percentage Change

Sewer Sales 79,000 79,000 - 0% Other Revenues 500 800 300 60% Transfer From General Fund 1,000 1,000 - 0% Transfer From Water Fund 4,000 4,000 - 0% TOTAL Estimated Revenues $ 84,500 $ 84,800 $300 60%

Town sewer usage rates are proposed to increase by 1.5%, or 11-cents for every 1,000 gallons treated. For the average customer, this increase is less than 40-cents/month, or 80-cents per billing cycle. The net impact to the Town is $85. Sewer sales are budgeted at $75,500. No change is proposed to the Fixed Charge of $1/month. Fixed Charge Revenue is budgeted at $3,500.

$464,423 $468,376 $474,082 $479,204 $482,302 $485,841

$396,164 $403,664 $411,164

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 -Proposed

Sewer Fund Total Equity By Fiscal Year


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Sewer Appropriations FY 2017

AMEND. # 2

FY 2018 Proposed


17)

Percentage

Change Sewer Purchases 75,500 75,500 - 0% Professional Services 1,000 1,300 300 30% Miscellaneous 500 500 - 0% Transfer to Fund Balance 7,500 7,500 300 0% TOTAL Appropriations $75,500 $ 75,500 $- 0%

Sewer expenditures are primarily for the payment of the Sewer collection and treatment services by the City of Hendersonville. The budget increases the Sewer Fund Balance by $7,500, $4,000 of which is the transfer from the Water Fund for the SCADA loan repayment. Thanks and Acknowledgements I would also like to thank the Mayor and Council, all of whom have been patient and thoughtful as we reviewed numerous projections, spreadsheets, and scenarios. This budget would not have been possible without three (3) invaluable people: Town Clerk Kim Hensley, Public Works Superintendent Andrew Griffin, and Police Chief Bobbie Trotter. The Department Heads have been unfailingly open and thorough in reviewing their departmental needs, all while continuing to provide high levels of service to our residents.

-end of Budget Message-

Call for a Public Hearing on the Proposed FY 2018 Budget at 9:30 a.m. on June 20, 2017 Mayor O’Cain stated North Carolina General Statute 159 provides the timeline for the development and adoption of local budgets. The proposed budget, together with the budget message, must be provided to the governing board no later than June 1st of each year. If necessary, the Council may elect to hold additional meetings to review and finalize the proposed budget prior to the June 20th Regular Council Meeting. The public has the right to review the proposed budget, attend any and all Council meetings, and speak at the public hearing on the budget at the June 20th meeting.

Commissioner McKinley moved to call for a public hearing to accept comments on the proposed fiscal year 2018 budget, at 9:30 a.m. on June 20, 2017. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion. TOWN MANGER'S REPORT Town Manager Alexander said she spoke with the contractor for the sidewalk project and if he does not begin the job by next Tuesday the Town will revoke the reward of the bid. The installation of new windows, carpet, and a counter at Town Hall will begin in June. She reported demolition will begin for the failing retaining wall at Lakeshore Apartment within the current week. Josh Freeman of J.M. Teague Engineering, who replaced Kristy Carter, will be in attendance for the June Council Meeting to present a Residential Planned Unit Development


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Process refresher. Ms. Alexander reminded Council of the Jump Off Rock Music Festival on Saturday, May 27, 2017, and the Lung Buster Time Trial Bike Race on Sunday, May 28, 2017. DEPARTMENT HEAD REPORTS PUBLIC WORKS Public Works Superintendent Griffin reported the following Public Works items for the prior month: A soft starter was installed at both Apple House and Sky Village; mulch deliveries, brush collection, and FY 17 meter replacements were complete as well as the Somersby water line extension. The Public Works Department will begin the second phase of street sign replacement in June. POLICE Police Chief Trotter reported there were 3,575 events in April. Officers focused on reminding citizens to be mindful of leaving valuables in their vehicles as this time of year break-ins are high. In-service training is complete for all officers and firearms will take place in July. Chief Trotter informed Council of a new Reserve Officer, John Pace, a retired ALE officer. Chief Trotter attended meetings in April with several Latino groups and plans to continue attending these meetings to build a bridge between law enforcement and immigration. Ron Kaufmann with the Stand Tall Group donated two (2) bicycles to the Department. Chief Trotter will begin bike patrol with those officers who are certified while officers who are not will ride them in parks only. ADMINISTRATION

Mrs. Hensley said she is working with the tax software company to resolve the tax software issues. Delinquent Tax Advertisement Letters will be mailed in May and delinquencies advertised in the newspaper in mind-late June. She reported she recorded the deed for the Suhrie property and the Town now owns it. OTHER ITEMS TO BE BROUGHT BEFORE TOWN COUNCIL – Town Attorney Monica Gillett-Stallings reported she will be absent from the June Town Council Meeting. MAYOR AND COMMISSIONER'S COMMENTS MAYOR O’CAIN – Mayor O’Cain said while the Town was having the parcels at Jump Off Rock surveyed in order to combine the parcels, the Town was contacted by a resident to notify the Town that the Jump Off Rock parking area is located primarily on her property. The Town Manager and the resident’s attorney are discussing the possibility of the Town purchasing the parcel. Mayor O’Cain also mentioned the idea of asking the developer of a restaurant across the railroad tracks on Fifth Avenue to donate a sign post, which he believed to date back to when the tracks were installed; the sign holder would be used at Town Hall for displaying banners. Mayor O’Cain then reported he and Commissioner McKinley met with a local Eagle Scout candidate to


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review potential projects; he proposed to clean out the underbrush at the edge of the conservation easement within Rhododendron Lake Nature Park. MAYOR PRO-TEMPORE ROBERT O. VICKERY – Mayor Pro-Tempore Vickery said he, Mayor O’Cain, and Mr. Griffin will meet with the modular manufacturing company on May 16 to discuss the Public Works facility. He also thanked Manager Alexander and Department Heads for their work on the budget as well as for bringing back the fall brush pickup. COMMISSIONER MCKINLEY – Commissioner McKinley had no comments. COMMISSIONER HANSEN – Commissioner Hansen had no comments. COMMISSIONER BANTA – Commissioner Banta was absent. There being no further business, Commissioner Vickery moved to adjourn the meeting at 10:52 a.m. Mayor O’Cain asked for discussion; there was none. The vote was unanimous in favor of the motion.

J. Carey O’Cain, Mayor ATTEST:


LGC-205 (Rev. 2017) CONTRACT TO AUDIT ACCOUNTS

Of ______________________________________________________________________________________________ Primary Governmental Unit

________________________________________________________________________________________________Discretely Presented Component Unit (DPCU) if applicable

On this ____________________ day of ____________________________, ___________,

Auditor: _______________________________________ Auditor Mailing Address: __________________________

__________________________________________________________________ Hereinafter referred to as The Auditor

and ______________________________________ (Governing Board(s)) of___________________________________ (Primary Government)

and _____________________________________ : hereinafter referred to as the Governmental Unit(s), agree as follows:(Discretely Presented Component Unit)

1. The Auditor shall audit all statements and disclosures required by generally accepted accounting principles (GAAP)and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit (s)for the period beginning _________________, _________, and ending ___________________, _________. Thenon-major combining, and individual fund statements and schedules shall be subjected to the auditing proceduresapplied in the audit of the basic financial statements and an opinion will be rendered in relation to (as applicable) thegovernmental activities, the business-type activities, the aggregate DPCUs, each major governmental and enterprisefund, and the aggregate remaining fund information (non-major government and enterprise funds, the internalservice fund type, and the fiduciary fund types).

2. At a minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with generallyaccepted auditing standards. The Auditor shall perform the audit in accordance with Government Auditing Standardsif required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB UniformAdministration Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance)and the State Single Audit Implementation Act, the Auditor shall perform a Single Audit. This audit and allassociated audit documentation may be subject to review by Federal and State agencies in accordance with Federaland State laws, including the staffs of the Office of State Auditor (OSA) and the Local Government Commission(LGC). If the audit and auditor communication are found in this review to be substandard, the results of the reviewmay be forwarded to the North Carolina State Board of CPA Examiners (NC CPA Board).

County and Multi-County Health Departments: The Office of State Auditor will designate certain programs thathave eligibility requirements to be considered major programs in accordance with OMB Uniform Guidance for theState of North Carolina. The LGC will notify the auditor and the County and Multi-Health Department of theseprograms. A County or a Multi-County Health Department may be selected to audit any of these programs as major.

3. If an entity is determined to be a component of another government as defined by the group audit standards - theentity’s auditor will make a good faith effort to comply in a timely manner with the requests of the group auditor inaccordance with AU-6 §600.41 - §600.42.

4. This contract contemplates an unqualified opinion being rendered. The audit shall include such tests of theaccounting records and such other auditing procedures as are considered by the Auditor to be necessary in thecircumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully explainedin an attachment to this contract.

5. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2011revisions, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditorwarrants that he has met the requirements for a peer review and continuing education as specified in Government

30th May 2017

Burleson & Earley, PA 902 Sand Hill Road

Asheville, NC 28806

Town Council Town of Laurel Park

July 1 2016 June 30 2017

Town of Laurel Park

BURLESON & EARLEY, P.A. CERTIFIED PUBLIC ACCOUNTANT

ALG-CL-1.3

May 10, 2017 To Alison Alexander, Town Manager Kim Hensley, Town Clerk and To The Honorable Mayor and Members of the Governing Council Town of Laurel Park 441 White Pine Drive Laurel Park, NC 28739-0910 We are pleased to confirm our understanding of the services we are to provide the Town of Laurel Park for the year ended June 30, 2017. We will audit the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the Town of Laurel Park as of and for the year ended June 30, 2017. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the Town of Laurel Park’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the Town of Laurel Park’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Management’s Discussion and Analysis. 2) Schedule of the Town’s Proportionate Share of Net Pension Liability (Asset) – Local Government Employees’

Retirement System 3) Schedule of the Town’s Contributions – Local Government Employee’s Retirement System 4) Schedule of Funding Progress, Schedule of Employer Contributions and Notes to the Required Schedules for

the Law Enforcement Officers’ Special Separation Allowance We have also been engaged to report on supplementary information other than RSI that accompanies the Town of Laurel Park’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor’s report on the financial statements: 1) Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 2) Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) – Water Fund 3) Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) – Sewer Fund 4) Schedule of Ad Valorem Taxes Receivable 5) Analysis of Current Tax Levy

POST OFFICE BOX 2125 ♦ CANDLER, NC 28715 902 SAND HILL ROAD ♦ ASHEVILLE, NC 28806 TELEPHONE: (828) 251-2846 ♦ FAX: (828) 251-1144

Audit Objectives

The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, and will include tests of the accounting records of the Town of Laurel Park and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the Town of Laurel Park’s financial statements. Our report will be addressed to the Honorable Mayor and Members of the Governing Council of the Town of Laurel Park. We will make reference to Carland & Andersen, Inc.’s audit of the Town of Laurel Park ABC Board in our report on your financial statements. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the Town of Laurel Park is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Audit Procedures—General

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of group management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of group management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion

of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures—Internal Control

Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to group management and those charged with governance of the group internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures—Compliance

As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Town of Laurel Park’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Other Services

We will also assist in preparing the financial statements and related notes of the Town of Laurel Park in conformity with U.S. generally accepted accounting principles based on information provided by you. We will also assist you in the preparation of the Annual Financial Information Report (AFIR). These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement and AFIR preparation services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Management Responsibilities

Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. You are also responsible for providing us access (or arrangements to facilitate access) to component information, instructions issued by group management to components related to the consolidation process, persons at components (including management and those charged with governance), or component auditors. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report. You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to [include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other

We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. We will provide copies of our reports to the Town; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Burleson & Earley, P.A. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to the Local Government Commission or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Burleson & Earley, P.A. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the Local Government Commission. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

We expect to begin our audit on approximately July 1, 2017 and to issue our reports no later than October 31, 2017. Bronwyn S. Burleson, CPA is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. Our fee for these services will be at our standard hourly rates except that we agree that our gross fee, including expenses, will not exceed $14,250. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. You have requested that we provide you with a copy of our most recent external peer review report and any subsequent reports received during the contract period. Accordingly, our 2014 peer review report accompanies this letter. We appreciate the opportunity to be of service to the Town of Laurel Park and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours,

Burleson & Earley, P.A. Certified Public Accountants RESPONSE: This letter correctly sets forth the understanding of the Town of Laurel Park. Management signature: Title: Date: Governance signature: Title: Date:

Agenda Review for Meeting on June 20, 2017


Page 7 of 8

5. A. Public Hearing – Proposed Fiscal Year 2017 – 2018 Budget Ordinance

NC General Statute §159-12 requires local governments hold a public hearing and receive comment on the proposed annual budget. A copy of the budget has been available for public inspection at Town Hall since May 16, 2017, and a notice of the public hearing and proposed budget ordinance was published in the Hendersonville Lightning on May 24, 2017. The proposed budget includes incremental improvements to current services and operations, which were discussed in-depth at the Council Budget Workshops on March 24th and April 13th. The proposed tax rate is unchanged at $0.43 (43 cents) per $100 valuation. Of the taxes collected by the Town, $0.095 (9.5 cents) is in turn paid to Valley Hill Fire & Rescue for service. Attachment(s):

Fiscal Year 2017 – 2018 Budget Ordinance

Suggested Action:

Open the Public Hearing Request Public Comment Close the Public Hearing

Ord. 2017-04

FISCAL YEAR 2018 BUDGET ORDINANCE

WHEREAS, the Town of Laurel Park is required to adopt an annual balanced budget as set forth by the Local Governmental Budget and Fiscal Control Act of North Carolina (NCGS §159-8);

NOW BE IT ORDAINED by the Laurel Park Town Council that the following budget be adopted for the 2018 Fiscal Year:

GENERAL FUND Estimated Revenues Taxes $ 1,605,100 Sales and Use Taxes $ 617,000 Powell Bill $ 97,300 NC Utilities Franchise Tax $ 135,000 ABC Funds $ 42,500 Other Revenue $ 106,900 Fund Balance Appropriation $ 128,500 TOTAL Estimated Revenues $ 2,732,300 Appropriations Governing Body $ 39,600 Administration $ 462,800 Public Works $ 1,135,000 Public Safety $ 587,900 Sanitation $ 157,000 Fire Protection $ 349,000 Transfer to Sewer Fund $ 1,000 TOTAL Appropriations $ 2,732,300 WATER FUND

Estimated Revenues Water Sales $ 347,000 Other Revenues $ 3,400 TOTAL Estimated Revenues $ 350,400 Appropriations Water Operations $ 308,800

Water Administration $ 41,600 TOTAL Appropriations $ 350,400 SEWER FUND

Estimated Revenues Sewer Sales $ 79,000

Other Revenues $ 800 Transfer From General Fund $ 1,000 Transfer From Water Fund $ 4,000 TOTAL Estimated Revenues $ 84,800 Appropriations Sewer Purchases $ 75,500 Professional Services $ 1,300 Miscellaneous $ 500 Transfer to Water Fund $ 7,500 TOTAL Appropriations $ 84,800

AD VALOREM TAX RATE: $0.43 per $100.00 valuation of taxable property. The Budget Officer is authorized to reallocate departmental appropriations among the various expenditures within each department.

The Budget Officer is authorized to make interdepartmental transfers of minor budget amendments not to exceed 10% (ten percent) of the appropriated funds for the department's allocation that is being used.

Notification of all such transfers or amendments shall be made to the Town Council at the next regular meeting of that body following the transfers.

Inter-fund transfers of moneys shall be accomplished only by authorization from the Town Council.

The utilization of any contingency appropriation, in any amount, shall be accomplished only by authorization from the Town Council. Approval of a contingency appropriation, which transfers funds from the contingency appropriation to the appropriate object of expenditure, shall be deemed a budget amendment.

Adopted this 20th day of June 2017.

J. Carey O’Cain ATTEST: Mayor

Kimberly B. Hensley, CMC Town Clerk

Agenda Review for Meeting on June 20, 2017


Page 8 of 8

7.A. Adoption of the Fiscal Year 2017 – 2018 Budget Ordinance After the public hearing, the Council may choose to adopt the Budget Ordinance.

Attachment(s): FY 2018 Budget Ordinance

Suggested Motion: To adopt the Fiscal Year 2017 - 2018 Budget Ordinance, as presented.

7.B. Adoption of the Fiscal Year 2017 – 2018 Fee Schedule The Town charges fees for a number of services; some set by ordinance, and others determined as part of the annual budgeting process. Changes to the Fee Schedule are:

1. Water Usage Rate increase of 1.5%, or $0.07 for every 1,000 gallons of water used. For the average customer, the increase is 25 cents a month.

2. Sewer Usage Rate increase of 1.5%, or $0.11 per 1,000 gallons treated. For the average customer, the increase is less than 40 cents a month.

The Fixed Charges for water and sewer remain unchanged. The water and sewer rates will be effective with the August 2017 water reading. 3. Mulch Loads – increased by $10 to $50/load. $30 fee for mulch orders cancelled or

changed after the payment is processed.

Attachment(s): FY 2018 Fee Schedule

Suggested Motion: To adopt the Fiscal Year 2017 - 2018 Fee Schedule, as presented.

ver. 05.16.17 Page 1 of 2

Returned Check or Electronic Item Fee $25.00

Copies, per pageno charge for first 2 pages,

then $0.10 pp

Mulch/composted leaves, per load (includes delivery) $50.00

Wedding Ceremony in Town Park $100.00Wedding Ceremony Officiant (Mayor) $150.00

Police Report no chargeFingerprinting no chargeOff Duty Security (4 hour minimum) $25.00 per hour

Certificate of Zoning Compliancefee + any direct costs incurred by Town

Single Family Residential $50.00Medical, Institutional, Cultural, Commercial, & Industrial $80.00 + costs

Planned Unit Development $80.00 + costsSub-Division Request $80.00 + costs

Addition, extension, other not listed $30.00Deck $30.00

Fence $30.00Interior Remodeling no charge

SignsNew Permit $30.00

Replacement Permit $30.00

Conditional Use Permit $80.00 + costsLand Disturbing Permit no chargeVoluntary Annexation no charge

Board of Adjustmentfee + any direct costs incurred by Town

Rezoning Request $80.00 + costsVariance Request $80.00 + costs

Town of Laurel Park 2017 - 2018 Fee Schedule

Police Department

Additional fees/penalties/charges may be found in the Town of Laurel Park Ordinances

Effective July 1, 2017- June 30, 2018 unless otherwise noted

Parks (fee is non-refundable. Designated for park improvements)

Mulch is available for purchase and delivery to locations within the corporate limits only. Limit five (5) loads per address, per sale. Loads are approximately 8 cubic yards. Orders cancelled or reduced after payment is processed will be charged a $30.00 refund processing fee.

GENERAL FUND

Public Works

PLANNING & ZONING

Miscellaneous

ver. 05.16.17 Page 2 of 2

Retail Sales Fixed (Base) Charge $38.00 / bi-monthly

Usage (per 1,000 gallons) $4.65Returned Check or Electronic Item Fee $25.00Late Payment Penalty $10.00Disconnect Due to Non-Payment $40.00Temporary Meter Turn-Off

First request (each fiscal year) $0.00Each additional $15.00

Deposit (tenant-occupied accounts only) $75.00

3/4" $1,100.001" $1,400.00

1 1/2" Cost + 10%2" Cost + 10%

Retail SalesFixed (Base) Charge $2.00 / bi-monthly

Usage (per 1,000 gallons) $7.29

The Town reads and bills for water and sewer services on a bi-monthly basis, with a cycle ending in February, April, June, August, October, & December of each year.

SEWER FUNDSewer Rates (Based on water consumption)

The Town reads and bills for water and sewer services on a bi-monthly basis, with a cycle ending in February, April, June, August, October, & December of each year.

WATER FUNDWater Rates

Deposits available at termination of service are applied to unpaid utility balances and any excess deposit is refunded to customer.

Effective August 2017 Billing

Effective August 2017 Billing

More detail on Water/Sewer Billing policies and procedures can be found in Chapter 9, Article 2 of the Town of Laurel Park Ordinances

Water Tap - Meter Size

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