UPCOMING SCHEDULE July 26, 2021 August 09, 2021 August 23

KANNAPOLIS CITY COUNCILREVISED AGENDAMEETING AGENDAKannapolis City Hall

401 Laureate Way, Kannapolis NCJuly 12, 2021

6:00 PM

Please turn off cell phones or place on silent mode.

CALL TO ORDER AND WELCOME

MOMENT OF SILENT PRAYER AND PLEDGE OF ALLEGIANCE

ADOPTION OF AGENDA - Motion to Adopt Agenda or make revisions

APPROVAL/CORRECTION OF MINUTES

1. June 28, 2021 Regular Meeting2. Closed Session June 28, 2021

CONSENT AGENDA - Motion to Adopt Consent Agenda or make revisions

1. Budget Amendment #21-26 Appropriating Cash Reserves for Equipment Purchase(Kristin Jones, Assistant to the City Manager)

2. Award Bid for the Installment Financing of the 2021 Revenue Bonds and Refunding of the2011 and 2013 Revenue Bonds (Africa Otis, Finance Director)

3. Resolution Amending the Kannapolis Code Establishing Downtown Private Use Zones(Mike Legg, City Manager)

BUSINESS AGENDA

A. Discussion of FY 2022-2026 Financial Plan and Capital Improvement Program (MikeLegg, City Manager)

B. Discussion of Environmental Fee Increase (Mike Legg, City Manager, Kristin Jones,Assistant to the City Manager)

CITY MANAGER REPORT

CITY COUNCIL COMMENTS

CLOSED SESSION

G.S. 143-318.11 (a) (3) to consult with an attorney in order to preserve the attorney clientprivilege; G.S. 143.318.11 (a) (4) for discussing matters relating to the location or expansionof industries or businesses in the area. (Mayor Pro tem Jackson)

UPCOMING SCHEDULE

July 26, 2021 August 09, 2021 August 23, 2021

ADA Notice and Hearing Impaired ProvisionsIn accordance with the requirements of Title II of the Americans with Disabilities Act of 1990("ADA"), anyone who requires auxiliary aid or service for effective communication, or amodification of policies or procedures to participate in a program, service or activity of the Cityof Kannapolis, should contact the office of Tina H. Cline, Human Resource Director by phoneat 704-920-4302 or email at [email protected] as soon as possible, but no later thanforty-eight (48) hours before the scheduled event.

CITY OF KANNAPOLIS 1 COUNCIL MEETING MINUTES 2

June 28, 2021 3 4 A regular meeting of the City Council of the City of Kannapolis, North Carolina held on Monday, June 5 28, 2021 at 6:00 p.m., at the Kannapolis City Hall located at 401 Laureate Way, Kannapolis, NC. 6 7 CITY COUNCIL MEMBERS PRESENT: 8 Mayor: Milton D. Hinnant 9 10 Council Members: Van Rowell 11 Doug Wilson 12 Ryan Dayvault 13 Darrell Jackson 14 Dianne Berry 15 Tom Kincaid 16 17 Council Members Absent: None 18 19 City Manager: Mike Legg 20 21 Deputy City Manager: Eddie Smith 22 23 Assistant City Manager: Eric Davis 24 25 Assistant City Manager: Wilmer Melton 26 27 City Attorney: Walter M. Safrit 28 29 City Clerk: Bridgette Bell 30 31 Staff Present: Tony Eury David Jordon 32 Irene Sacks Richard Smith 33 Kristin Jones Gary Mills 34 Sherry Gordon Annette Privette-Keller 35 Alex Anderson Africa Otis 36 Daniel Wallace Michael Dodge 37 Leo Pope Terry Spry 38 39 Visitors Present: Louise Teal Terri Hosch 40 Lillie Hosch Morgan Martin 41 Kyle Lingafelt Stefan Perrine 42 Sophia Wilkinson Cheryl Dearmon 43 Eric Dearmon Robby Tatum 44 Joe Hatley Stacie Crim 45 Mark Crim Tom Taylor 46

City Council Meeting 2 June 28, 2021

Thomas Lott Chris Hill 1 Jeanne Dixon Melinda Richardson 2 Jennifer Dunbar Shelly Stein 3 Jayne Williams 4 5 CALL TO ORDER AND WELCOME: 6 Mayor Hinnant called the meeting to order and welcomed those in attendance. A moment of silent prayer 7 and the Pledge of Allegiance was led by Council Member Rowell. 8 9 Recognition – Cheryl and Eric Dearmon 10 Mayor Hinnant recognized Cheryl and Eric Dearmon as having gifted two public art sculptures, “Smiley” 11 and “Discover” to the City of Kannapolis. Both sculptures are already located in the City and were on loan 12 from the artist, Tom Risser. With their purchase, the Dearmon’s have ensured the sculptures will remain 13 in the City as permanent pieces of public art. “Smiley” is located on West Avenue and is already one of 14 the most popular sculptures in Kannapolis. His welcoming face greets everyone with its whimsical 15 expression and features. Children and adults love to hug and take selfies with him. The second sculpture 16 is located in Village Park near the fountain and embodies the City’s brand, “Discover a Healthy Life.” 17 This piece is also ten feet tall. It features symbols of peace, love, and health. 18 19 PROCLAMATIONS: 20 Mayor Hinnant proclaimed July as Parks & Recreation Month. 21

ADOPTION OF AGENDA: 22 Mayor Hinnant asked that the Consent Agenda be moved to after the Business Agenda because there were 23 Consent Items that needed to be action upon after Business Agenda items. 24 25 Council Member Wilson made a motion to adopt the revised agenda, seconded by Mayor Pro tem Jackson 26 and approved by unanimous vote. 27 28 Ceremonial Swearing in of new Police Officers (Terry Spry, Chief of Police) 29 Chief Spry introduced Bryan Crim, Nathan Feinstein, Tyler Lewis, Cody Meadows. These officers 30 recently completed Basic Law Enforcement Training. This training consists of 690 hours, covering a 31 variety of law enforcement topics and a comprehensive exam on all topic areas at the conclusion of the 32 course administrated by the State. All four are currently going through the Police Department’s 19-week 33 Field Training Program and by all reports are doing well. The City Clerk then administered the Oath of 34 Office. 35 36 APPROVAL OF MINUTES: 37 Council Member Dayvault made a motion to approve the June 08, 2021 continued meeting minutes, 38 seconded by Council Member Rowell and approved by unanimous vote. 39 40 Council Member Berry made a motion to approve the June 14 , 2021 regular meeting minutes, seconded 41 by Council Member Dayvault and approved by unanimous vote. 42


Mayor Pro tem Jackson made a motion to approve the June 14, 2021 closed session meeting minutes, 1 seconded by Council Member Kincaid and approved by unanimous vote. 2 3 BUSINESS AGENDA: 4 Public Hearing TA-2021-01 regarding the Unified Development Ordinance (UDO) to bring into 5 compliance with North Carolina updated law on local planning and development regulations, 6 Chapter 160D of the North Carolina General Statutes (Richard Smith, Planning Director and 7 Walter M. Safrit, City Attorney) (Copy included as Exhibit A) 8 The new Chapter 160D of the North Carolina General Statutes consolidates current city- and county-9 enabling statutes for development regulations (now in Chapters 153A and 160A) into a single, unified 10 chapter. Chapter 160D places these statutes into a more logical, coherent organization. While the new law 11 does not make major policy changes or shifts in the scope of authority granted to local governments, it 12 does provide many clarifying amendments and consensus reforms that will need to be incorporated into 13 local development regulations. Chapter 160D is effective now, but local governments have until July 1, 14 2021 for the development, consideration, and adoption of necessary amendments to conform local 15 ordinances to this new law. All city and county zoning, subdivision, and other development regulations, 16 including unified-development ordinances, will need to be updated by that date to conform to the new 17 law. Cities and counties that have zoning ordinances must have an up-to-date comprehensive plan or land 18 use plan by July 1, 2022. 19 20 Staff is proposing that the UDO be amended to comply with mandated North Carolina General Statutes. 21 Broadly, the recommendation is to amend the following Articles of the UDO: Article 1 (General 22 Provisions), Article 2 (Administrative Agencies), Article 3 (Zoning and Permitting Procedures), Article 4 23 (Zoning Districts and Dimensional Regulations), Article 5 (Supplemental Use Regulations), Article 6 24 (Subdivision Regulations), Article 7 (Landscaping and Buffering Standards), Article 9 (Environmental 25 Control Regulations), Article 11 (Site Design Standards), Article 12 (Sign Standards), Article 13 26 (Nonconforming Uses and Structures and Vested Rights), Article 14 (Adequate Public Facilities (APF) 27 Standards), Article 15 (Corridor and Thoroughfare Protection Overlay Districts), Table 4.6.1 (Principal 28 Uses Permitted In Zoning Districts), Appendix A (Definitions), Appendix B (Application Requirements), 29 Appendix C (Design Standards for Streets and Utilities), which are detailed in the attachments to this 30 memo and proposed to be incorporated as a part of the Kannapolis Unified Development Ordinance. 31 32 On June 15, 2021, the Planning and Zoning Commission recommended approval to City Council. The 33 proposed amendments will bring the current UDO in compliance with state statutes. By statute, these 34 amendments are required to be adopted no later than July 1, 2021. 35 36 There being no comments or questions, Mayor Hinnant opened the public hearing to those in attendance 37 for an opportunity to speak. There being no speakers, Mayor Hinnant closed the public hearing. 38 39 Council Member Wilson made a motion to approve a Resolution adopting a Statement of Consistency 40 with regard to Text Amendment TA-2021-01, seconded by Mayor Pro tem Jackson and approved by 41 unanimous vote. 42 43


Council Member Wilson made a motion to adopt an Ordinance amending the UDO to bring into 1 compliance with the NC updated law on local planning and development regulations, Chapter 160D of 2 the NCGS, seconded by Mayor Pro tem Jackson and approved by unanimous vote. 3 4 Downtown Private Use Zones (Mike Legg, City Manager) (Copy included as Exhibit B) 5 The proposed amendments to the City's Code of Ordinances establishing Private Use Zones is intended to 6 facilitate, while managing and regulating, the following private uses of public assets (sidewalks, plazas, 7 parking areas, streets, sidewalks, stages, open space, etc.) in the Downtown area. The Ordinance would 8 allow private businesses to use public sidewalks to set up tables or canopies to offer more seating and 9 expand their footprint. The reason for the fee is that the City would like to be able to control the spaces 10 downtown and prevent businesses from expanding past certain points. Additionally, with spaces such as 11 the putting green or other public spaces around downtown, this would allow the spaces to be rented for a 12 fee for an event or party rather than allowing a first-come, first serve type of situation. The goal is to 13 maintain order as best as possible. Public assets downtown would include sidewalks, plazas, parking areas, 14 streets, sidewalks, stages, and miscellaneous open space. The proposed Private Use Zone could be used 15 for: 16

• Outdoor Dining. 17 • Outdoor Display of Merchandise. 18 • Food Trucks and Mobile Food Carts/Vending Units. 19 • Reserved Private Parking. 20 • Public Accommodations (i.e., ATMs, postal drop off boxes) 21

The amendments provide for a no-fee, no license Primary Private Use Zones extending two (2) feet from 22 all downtown buildings primarily for the purpose of permitting outdoor display of merchandise and small 23 signage. The amendments provide for a fee-based, license required Secondary Private Use Zones designed 24 for facilitating outdoor dining, mobile food carts, food trucks, larger outdoor merchandise displays and 25 similar uses. 26 27 The amendments provide for Temporary Private Use Zones in areas not encumbered with an annual 28 license for the purpose of facilitating a wide range of temporary (hourly rate) uses such as sidewalk sales, 29 fashion shows, birthday parties, pre-ball game tailgating and live music. Eight of these locations are 30 available on for these temporary uses and are not available for annual licenses (e.g., the two large 31 downtown stages). The proposed amendments have been shared with the primary downtown property 32 owners/managers to obtain input. Several adjustments have been made to accommodate concerns raised. 33 34 Mr. Legg summarized a few key notes as outlined in the Staff Report. The amendments to the City’s fee 35 schedule are necessary to accompany the adoption of the Ordinance. The schedule includes two 36 components in all Secondary Private Use Zones: 1) per square foot fees ($2 for Tier 1 on West Ave and 37 $1 for Tier 2 elsewhere downtown) that would be due as part of an annual license, and 2) hourly fees for 38 all Secondary Private Use Zones (including West Avenue stages, turf area, etc.) which are not subject to 39 an annual license. As this is a first reading, the amendments must have a supermajority of City Council to 40 pass (5 votes). 41

42


The proposed amendments provide that all collected revenues will be earmarked in a special fund for 1 promoting and supporting downtown activities. 2

Council Member Dayvault assumed that everyone downtown was on board. Mr. Legg responded the fee 3 is one thing that has not been completely decided on. There is no rush and Council can certainly table. 4 Mr. Legg said the structured fee schedule is not about the money, but more of having a sense of order. 5 There has to be some kind of process so that the spaces are not abused. There have been some changes 6 since it was first sent to the downtown partners. For instance, there is some flexibility in the style and 7 development standards for outdoor dining and outdoor uses to allow those to continue. 8 9 Mr. Dayvault commented that along Cannon Baller Way beside the old bank building, he was surprised 10 the spaces are not part of this. Mr. Legg said the spaces were really small and tight but can look at it again 11 once the process is in place. 12 13 Council Member Kincaid commented that some of the street space is tight now and wondered how we 14 could take up any more of the street. Mr. Legg responded there are some areas that are no doubt tight and 15 will need to discuss on a case by case basis. 16 17 Mayor Pro tem Jackson said it is a good plan, but let’s don’t rush this process too quickly. There are a lot 18 of businesses trying to figure out the market and what will work for him. There will be different needs for 19 different merchants. 20 21 Although not a public hearing, Mayor Hinnant noted that one of the downtown merchants would like an 22 opportunity to speak. There was no objection from Council. 23 24 Kyle Lingafelt of 211 West Avenue, Co-Founder and General Manager of the Old Armor Beer Company, 25 stated he enjoys being downtown and appreciates everything the City has done. He is on board with 26 everything listed, the only issue is the price. It would cost him $5100 per year for their space and it makes 27 them wonder if they should even use that space and how much would it hurt their business. He asked that 28 Council continue the discussion on the fee schedule. 29 30 Council Member Kincaid made a motion to delay action until the July 12th Council Meeting. Seconded 31 by Council Member Berry and approved by unanimous vote. 32 Budget Ordinance for FY 2021-FY 2022 (Kristin Jones, Assistant to the City Manager) (Copy 33 included as Exhibit C) 34 City Manager Legg looked back on FY 2021, noting that we were fortunate to have weathered the 35 pandemic financial storm that could have been. Substantial changes that impacted our community was the 36 completion of the Atrium Health Ball park just in time for the opening season, only to be delayed, then 37 cancelled. With the cancellation of numerous events: Jiggy with the Piggy, all concerts and movies at 38 Village and Veteran’s Park, the annual Christmas parade, and all other holiday activities. The pandemic 39 created the closure of City Hall to the public, remote/hybrid City Council, and other public meetings. The 40 temporary loss of employment in the community, especially in certain sectors (notably restaurants and 41 hospitality-oriented businesses) which had ripple effects in rent and utility payments and 42 discretionary spending in the community. School closures or hybrid learning with likely short-term 43


(and possibly lasting) negative impacts on well-being of our school aged populations. Fortunately, 1 the City has received approximately $2.5 million in relief funding from various COVID-related 2 federal programs from the Federal Government. These funds have been used in a variety investments 3 (personal protective equipment, public safety salary subsidies, health and safety related building 4 improvements, technology improvements, conversion of in-person customer service to online 5 services, CK Rider financial support, and grants to various non-profits (most notably Cooperative 6 Christian Ministries for rent and utility relief for struggling Kannapolis residents). An additional 7 $9,352,893 has been allocated to the City as part of the American Rescue Plan (ARP). The use of 8 those funds has not been determined. The following is a summary of these funds: 9

10 ' 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

29 30 31 32 33 34 35 36 37 38 39

40

The past 12 months have been dominated by the pandemic ; even so, there are quite a few things 41 to celebrate as we transition to a new budget year. 42 43 • A fully functioning professional baseball season in Atrium Health Ballpark , including 44

restored revenue streams to both the team ownership and the City in the coming months. 45 46

• A thriving downtown far exceeding expectations in both pace, and type of local investments. 47 Continued significant growth and private sector investment City wide. 48

• The conversion of the City' s Customer Service Center to a predominately remote, online service delivery 49 model. 50

• Sale of Block 2 Downtown. 51

• Sale of Block 1 - Main Street Downtown. 52

• Sale of Swanee Theatre - renovations underway. 53

• Establishment of interim downtown parking regulations. 54

• Hiring of a number of new department heads including Police Chief, Finance Director, Customer 55 Service Director, General Services Director, and Planning Director. 56

COVID-Related Federal Funds

Source Amount CARES via Cabarrus $524,531 CARES via Rowan $184,623 FEMA Reimbursement $44,719 CARESI-CDBG $264,857 CARES II - CBDG $230,437 CARES - Transit - FY 21 $432,657 CARES - Transit - FY 22 $429,300 CARES Transit- FY 23 (estimated) $400,000 American Rescue Plan I (FY 22) $4,676,447 American Rescue Plan II (FY 23) $4,676,447 Total S11,864,017


• Gem Theatre Phase I Renovations (HVAC replacement, electrical upgrades, marquee refurbishment, new 1 first floor restrooms , flex space and secondary exit). 2

• Opening of Vida and the Vida Parking Deck. 3

• Sale of Pennant Square land and groundbreaking - construction under way. 4

• Sale of Oak Avenue (Block 7) property Downtown. 5

• Creation of the Kannapolis Youth Council. 6

• Water Treatment Plant improvements. 7

• Mooresville Road Waterline replacement. 8

• Lane Street Waterline replacement. 9

• City Council Virtual Planning Retreat. 10

• Wyrick Property under contract. 11

• Remaining 7.25- and 1.6-acre Gateway Business Park properties under contract. 12

• Development Agreement approved for Kannapolis Crossing. 13

• 1-85 Exit 65 Utility Extension Project started. 14

• Old Stadium Property Development Agreement approved. 15

• Agreement to accept Castle and Cooke Donations , including the "Horseshoe Property." 16

• Agreement to accept Dixie Youth Ballfields. 17

• Completion of the Irish Buffalo Creek Greenway and ribbon cutting. 18 • Completion of the due diligence phase of our partnership with the United States Performance Center. 19

Work continues in search of a path forward. 20 The budget goals for FY 22 are quite different than they were in FY21. While the Downtown 21 revitalization efforts will continue to be a driving force for the next several budgets, FY 22 will be the 22 beginning of an expanded set of objectives, largely based on the results of the recently completed 23 Virtual Planning Retreat. This FY 22 Budget also represents a post-COVID return to some sense of 24 normality. Economic development in general will remain a top priority but investments in quality of life 25 improvements will be important as well. Perhaps most importantly, this FY 22 Budget attempts to 26 address support for our 400+ employees in a variety of ways. 27

The proposed FY2022 budget is $85,250,848 with the majority of the City’s revenues come from two 28 sources – property taxes (58% of the budget) and sales taxes (20% of the budget). 29 30 Other notable items in the budget include: 31

• $1,000,000 for construction of a skateboard park (first phase) 32 • $675,000 for the remodeling of Fire Station #1 and #4 33


• $55,000 for a New Litter Clean-up Program. Funding for a volunteer coordinator and public 1 awareness campaign 2

• $750,000 for Phase 1 Kannapolis Parkway/Highway 3 decorative streetlights and landscaping 3 • $275,000 for Bakers Creek Park Improvements: parking lot, lighting, fixing handicap spots, ADA 4

accommodations for restrooms and concessions 5 • $275,000 for Village Park Phase IV improvements: replacement of existing playground equipment 6 • $150,000 Midway (South Main Street) Corridor Plan 7 • $100,000 Transitional Housing/Homeless Shelter Strategy 8 • $735,545 Gem Theatre Operating Expenses 9 • $130,000 Irish Buffalo Creek Greenway (Rogers Lake Rd) parking lot 10 • $300,000 Lakeshore Corporate Park Infrastructure 11 • $100,000 for street sweeper to maintain the newly constructed parking deck downtown at VIDA 12 • $575,000 for the replacement of (12) police vehicles 13 • $450,000 for the replacement of a 15-year-old Fire Self-Contained Breathing Apparatus 14 • $313,800 for the replacement of body-worn, in-car cameras and Tasers for police (first of 5 annual 15

payments to take place) 16 • 17 new positions in planning, parks and recreation, police, engineering, streets, water and sewer 17

and general services 18 • $102,000 in annual debt service for the replacement of a 26-year-old fire engine 19 • $1,045,357 in annual debt service for the newly VIDA public parking deck 20

21 A public hearing on the recommended budget for FY 2021-FY 2022 was held on June 14, 2021 in 22 accordance with North Carolina General Statute 159-12 (b). 23

Council Member Dayvault stated his only concern was the environmental fee increase, in light of the 24 pandemic, asked if this fee could be held off this fiscal year and use fund balance to cover this amount. 25 26 Mr. Legg stated that Council could adopt the Ordinance and use fund balance, but Staff would need to 27 come back with a budget amendment. He suggested to delay adopting the fee schedule until the next 28 meeting. 29 30 Mrs. Jones added that the budget ordinance would need to be amended because it contains the $2.50 fee 31 increase in the Environmental Fund. She further added that the Environmental Fund does not have the 32 capacity in the Fund Balance, so more likely it would have to be a transfer from the Water and Sewer 33 Fund for Stormwater. Mayor Hinnant added there were back to back increases so that the Environmental 34 Fund would be self-sustaining. In other words, if the increase is delayed this year, we will either be further 35 in the hole or have to double up. Mrs. Jones said because the cost of recycling is increasing, this fund is 36 not able to be self-sufficient. On the five-year plan, is a potential fee increase this year with a potential 37 increase in the next year or two. 38 39 Mr. Legg suggested that Council adopt the Budget Ordinance and fee schedule and at the next meeting 40 clean it up, if necessary. Mr. Smith asked for clarification that the Budget Ordinance be adopted as is and 41


remove the $2.50 fee. Also, to direct Staff to not adjust any utility bills to reflect the $2.50 for the month 1 of July until Council can take final action at their July 12 meeting. 2 3 Mayor Pro tem Jackson made a motion to adopt the Budget Ordinance as presented, seconded by Council 4 Member Dayvault and approved by unanimous vote. 5 6 Adoption of the FY 2021-FY 2022 Fee Schedule (Kristin Jones, Assistant to the City Manager) 7 (Copy included as Exhibit D) 8 Mr. Legg explained there are two fee schedules attached. One includes the proposed fee structure for the 9 private use zones identified in downtown and one doesn't. He recommended that Council adopt the fee 10 schedule without the Private Use Zones and to instruct Staff to not collect the environment fee until 11 Council has an opportunity to discuss at the next Council meeting. Mr. Smith clarified that would be to 12 not collect the incremental environmental fee. 13 14 Council Member Dayvault made a motion to adopt the fee schedule without the Private Use Zone fees 15 and instruct Staff to not collect the incremental environmental fee until Council can discuss at the July 16 12th meeting, seconded by Council Member Berry and approved by unanimous vote. 17 18 Agreement with Rowan Cabarrus YMCA (Eddie Smith, Deputy City Manager) (Copy included as 19 Exhibit E) 20 City Council's #2 priority following their most recent retreat is Employee Retention and Recruitment. This 21 priority complements one of the Employee Enrichment Collaboration Group's initiatives to explore ways 22 the City could help improve access to wellness and fitness programs for employees and their families. The 23 City is working to capitalize on its partnership with the Rowan-Cabarrus YMCA to provide free individual 24 memberships for each employee. Along with each individual membership, employees have the 25 opportunity to take advantage of reduced family rates. An employee survey was conducted to gauge 26 interest in this potential new benefit, with promising results: 27 28

• 285 out of 400 employees responded to the survey which is a good representative sample 29 (71% response rate; Statistically, 30% is considered a great response rate) 30

• Only 7% are current members of any YMCA. 31 • 84% indicated that they would take advantage of a free YMCA membership 32 • 47% would use the Kannapolis YMCA at least 50% of the time. China Grove/South Rowan 33

was second with 23%. 34 35 This partnership has dual purposes: (1) it provides a new employee benefit; and, (2) it provides financial 36 support for the YMCA as a health/wellness/recreation service provider for our citizens. The YMCA has 37 been a long-standing, non-profit organization in Kannapolis committed to helping improve the quality of 38 life for residents and employees with youth development (summer camps, sports, after-school care, and 39 lifesaving skills such as swimming lessons), Social Responsibility (Share The Harvest Farm, Empty 40 Stocking Fund, Scholarships), and Healthy Living (Wellness programs and fitness classes). $124,800 41 (Based on $26 per month x 400 employees x 12 months). Four Quarterly Payments of $31,000 on August 42 1st (2021), October 1st (2021), January 1st (2022), and April 1st (2022). 43 44


Funds will be applied to individual employee memberships. The balance of any funds remaining may be 1 used for other operational needs such as summer camps, after-school activities, scholarships, Empty 2 Stocking Fund, etc. City employees desiring to add a spouse, children or family to the membership may 3 do so by paying the difference. ($12 additional for spouse, $12 for children, $24 for family/month) 4 5 Mayor Pro tem Jackson asked if the funds are allocated just for Kannapolis. Mr. Smith responded they all 6 stay in Kannapolis 7 8 Council Member Berry made a motion to approve the agreement between the Rowan-Cabarrus YMCA, 9 seconded by Council Member Dayvault and approved by unanimous vote. 10 11 Appointment to the Rowan-Kannapolis ABC Board (Mike Legg, City Manager) (Copy included as 12 Exhibit F) 13 The Rowan - Kannapolis ABC Board consists of three members with each of the three seats appointed by 14 Rowan County, the City of Kannapolis, and the City of Salisbury. The ABC Board retains authority to set 15 policy and adopt rules in conformity with ABC laws and commission rules. As the terms of the initial 16 board members expire, their successors shall be appointed for three-year terms. At City Council's April 9, 17 2018 meeting, appointed Mike Price to a three-year term ending June 30, 2020. Due in part to the 18 preoccupation with the COVID-19 pandemic, this board appointment was overlooked. Mr. Price has 19 continued to serve during this time. 20 21 If Council appointed Mr. Price to a three-year term beginning June 30, 2021 and ending June 30, 2024, 22 the ABC board members terms would not be on staggered terms. It is recommended that Council appoint 23 Mike Price to serve the remaining two years of the three-year term expiring on June 30, 2023. 24 25 Council Member Kincaid made a motion to appoint Mike Price, term expiring June 30, 2023, seconded 26 by Council Member Dayvault and approved by unanimous vote. 27

Appointment of Parks & Recreation Commission Members (Gary Mills, Parks and Recreation 28 Director) 29 The Parks and Recreation Commission has four seats to fill this year. It is recommended that Council 30 appoint Jeff Ashbaugh and Richard Chaney to new three-year term expiring June 30, 2024. Cindy Griggs 31 has served the allowed 3 three-year consecutive terms and in accordance with the Boards and 32 Commissions Policy would like to be reappointed for a fourth term. Mr. Mills explained that Rick Webster 33 was initially selected by the Parks and Recreation Commission; however, Mr. Webster has informed him 34 that he will be moving out of the state. Mr. Mills recommended E.B. Lentz. Mr. Lentz would be filling 35 the unexpired term of Antoine Nelson, serving through June 30, 2022. 36 37 Council Member Wilson made a motion to appoint Jeff Ashbaugh and Richard Chaney to a three-year 38 term expiring June 30, 2024; appoint Cindy Griggs term expiring June 30, 2024 and appoint E.B. Lentz 39 to fill an unexpired term expiring June 30, 2022, seconded by Council Member Dayvault and approved 40 by unanimous vote. 41 42


Appointment of Community Improvement Commission Members (Sherry Gordon, Community 1 Development Program Administrator) 2 The Community Improvement Commission has three seats to fill this year. It is recommended that Council 3 appoint current Commission Members Teresa Dalsing and Patricia Ware to a three-year term expiring 4 June 30, 2024. Veleria Levy will not be able to continue to serve and it is the recommendation to appoint 5 Debbie Wilkinson, term expiring June 30, 2024. 6 7 Mayor Pro tem Jackson made a motion to appoint current Teresa Dalsing, Patricia Ware and Debbie 8 Wilkinson to a three-year term expiring June 30, 2024, seconded by Council Member Kincaid and 9 approved by unanimous vote. 10 11 Appointment of Planning and Zoning Commission Members (Richard Smith, Planning Director) 12 The Planning and Zoning Commission has three seats to fill this year. It is recommended to appoint Jeff 13 Parker and Larry Ensley to a three-year term expiring June 30, 2024. Also recommends Danielle Martini 14 to fill the vacancy of Alan Overcash. Mayor Pro tem Jackson feels that James Litaker would be a perfect 15 candidate to serve. Mr. Smith was asked to contact Mr. Litaker to see if he would be willing to serve on 16 the Planning and Zoning Commission and contact Danielle Martini to see if she would be willing to serve 17 as an Alternate on the Board of Adjustment. 18 19 Mayor Pro tem Jackson made a motion to appoint Jeff Parker and Larry Ensley to a three-year term 20 expiring June 30, 2024. Appoint James Litaker to a three-year term expiring June 30, 2024 and Danielle 21 Martini as an Alternate on the Board of Adjustment contingent upon their willing to serve, seconded by 22 Council Member Dayvault and approved by unanimous vote. 23 24 Appointment of Board of Adjustment Members (Richard Smith, Planning Director) 25 The Board of Adjustment has five seats to fill this year; one reappointment, vacancy left by the expired 26 terms of both Colby Meadows and James Palmer and to fill the unexpired term of Jonathan Farmer. It is 27 recommended that Council appoint Ryan French to a three-year term expiring June 30, 2024. Move Daisy 28 Malit from an alternate member to a regular member to fill the vacancy of Colby Meadows, term expiring 29 June 30, 2024. After reviewing the applications on file, appoint Cyrus Rattler to fill the vacancy of James 30 Palmer, term expiring June 30, 2024 and Holden Sides to fill the unexpired term of Jonathan Farmer, term 31 expiring June 30, 2023. Also, Danielle Martini appointed as an Alternate on the Board of Adjustment. 32 33 Motion was made by Council Member Kincaid to appoint Ryan French to a three-year term expiring June 34 30, 2024; move Daisy Malit from an Alternate to a Regular member; appoint Holden Sides to fill the 35 unexpired term of Jonathan Farmer, term expiring June 30, 2023. Cyrus Rattler to a three-year term 36 expiring June 30, 2024 and Danielle Martini as an Alternate, seconded by Council Member Dayvault and 37 approved by unanimous vote. 38 39 CONSENT AGENDA: 40 Council Member Kincaid made a motion to approve the Consent Agenda, seconded by Mayor Pro tem 41 Jackson and approved by unanimous vote. 42 43


Axon Taser/Body Worn Camera/Fleet Camera Package (Kristin Jones, Assistant to the City Manager, 1 Terry Spry, Chief of Police) (Copy included as Exhibit G) 2

Amend Personnel Policy 400.01 - Classification Schedule (Tina Cline, HR Director) (Copy included as 3 Exhibit H) 4

Amend Personnel Policy 500.08 - Continuation of Insurance Coverage at Retirement (Tina Cline, HR 5 Director) (Copy included as Exhibit I) 6

Budget Ordinance Amendment for Fiscal Year End 2021 (Kristin Jones, Assistant to the City Manager) 7 (Copy included as Exhibit J) 8

Resolution on the Administration of Small Underpayments and Overpayments of Ad Valorem Taxes 9 (Kristin Jones, Assistant to the City Manager) (Copy included as Exhibit K) 10

Traffic Reconstructionist Incentive Pay Policy 400.26 (Kristin Jones, Assistant to the City Manager, 11 Terry Spry, Chief of Police, Tina Cline, Human Resources Director) (Copy included as Exhibit L) 12

Resolution directing the application to the Local Government Commission for approval of Water and 13 Sewer System Revenue Bonds and refunding the 2011 and 2013 bonds (Africa Otis, Finance Director) 14 (Copy included as Exhibit M) 15

CITY MANAGER REPORT: Mr. Legg directed Council’s attention to the Calendar of Events. 16 17 CITY COUNCIL COMMENTS: None 18 19 SPEAKERS FROM THE FLOOR: 20 Robby Tatum of 301 Larry Drive spoke on the renaming of East First Street to Martin Luther King, Jr. 21 Avenue. He spoke on how the information was disseminated and questioned if there was a better way to 22 communicate to the public. No one that he knew of, knew anything about the change. He wondered if 23 there was a way to put issues like this on a ballot and put to a vote by the citizens. Mayor Hinnant thanked 24 Mr. Tatum for his comments. 25 26 Tom Zimmerman of 411 Walker Street stated he is the father of Alex Zimmerman, owner of Peel Scooters. 27 He thanked Mr. Legg for his prompt response to their request on scooters downtown, but felt they were 28 not given enough of an opportunity to develop and present their plan. He knows of no City Ordinance that 29 does not allow scooters. He further stated that he would like for Council to take a formal vote on the matter 30 and he would like to know how each individual Council member voted. Mayor Hinnant thanked Mr. 31 Zimmerman for his comments. 32 33 CLOSED SESSION: 34 Mayor Pro tem Jackson made motion to go into Closed Session pursuant to G.S. 143-318.11 (a) (3) to 35 consult with an attorney in order to preserve the attorney client privilege; G.S. 143.318.11 (a) (4) for 36 discussing matters and relating to the location or expansion of industries or businesses in the area. The 37 motion was seconded by Council Member Kincaid and approved by unanimous vote. 38 39


Council went into closed session at 7:30 PM. 1 2 Council Member Dayvault made a motion to come out of closed session, seconded by Mayor Pro tem 3 Jackson and approved by unanimous vote. 4 5 Council resumed regular session at 8:20 PM. 6 7 There being no further business, Council Member Wilson made a motion to adjourn, seconded by and 8 approved by unanimous vote. 9 10 The meeting adjourned at 8:55 PM on Monday June 28, 2021. 11 12 13 ___________________________ 14 Milton D. Hinnant, Mayor 15 16 ____________________________ 17 Bridgette Bell, MMC, NCCMC 18 City Clerk 19

City of Kannapolis

City Council MeetingJuly 12, 2021Staff Report

TO: Mayor and City Council FROM: Kristin Jones, Assistant to the City Manager

TITLE Budget Amendment #21-26 Appropriating CashReserves for Equipment Purchase

A. Action Requested by City CouncilMotion to adopt budget amendment #21-26.

B. Required Votes to Pass Required ActionMajority present at meeting

C. BackgroundOne significant component of the FY 22 Budget is a Cash-Focused Funding Plan which will bea rather unique financial management tool that will be repeated at varying degrees over the nextfive fiscal years. Kannapolis is in a different place than most municipalities and certainly in adifferent place when compared to our previous City budgets. The significant cash infusion fromactive economic and land development activities over the past number of years is going to be asignificant driver of the City’s financial administration for the foreseeable future. Cash (coupledwith some additional debt) will be the method that funds the majority of City Council priorities andcertain operating capital. Some of this cash will also be used to bridge a gap in a few lean yearsbefore significant revenue increases are projected to materialize in FY 26. From a budget structure standpoint, it is proposed that the implementation of this cash will followthese principles: • These funds will not be added to the initial proposed annual operating budget as a fundbalance transfer. Doing so with such a large amount of funds early in the process is more of aneducated guess which is not a very effective way to administer this type of funding plan. • City Council will be asked to approve budget amendments throughout the FY 22 budget year toimplement its priority projects and initiatives (as well as some operating capital requests bydepartment heads).

• The budget amendments will be based on specific budget estimates (in most cases, firmquotes). • Proceeding with implementing incremental budget amendments allows staff and City Councilto monitor both the operating budget but more importantly, the one-time revenue cash flow. Since so much of this plan is based on land proceeds it is prudent to not budget the expenditureuntil the revenue is confirmed.

D. Fiscal ConsiderationsAn appropriation of fund balance in the General Fund to fund the Street's Department purchaseof a Bobcat 85. This is a replacement of a Hyundai wheeled excavator that is no longeroperable.

E. Policy Issues

F. Legal Issues

G. Alternative Courses of Action and Recommendation1. Motion to adopt the budget amendment (Recommended). 2. Do not adopt the budget amendment. 3. Table to a future meeting.

ATTACHMENTS:File NameCash_Reserves_BA_.pdf

ORDINANCE AMENDING BUDGET FOR THE CITY OF KANNAPOLIS, NORTH CAROLINA

FOR THE FISCAL YEAR BEGINNING JULY 1, 2021 AND ENDING JUNE 30, 2022

Amendment # 21-26 BE IT ORDAINED by the City Council of the City of Kannapolis, North Carolina meeting in open session this 12th day of July 2021, that the following amendment to the Budget Ordinance for the City of Kannapolis, North Carolina for the Fiscal Year beginning July 1, 2021 and ending June 30, 2022 is hereby adopted:

SECTION I– GENERAL FUND

Revenues: Increase – Appropriated Fund Balance

Revenue: 19900-39900 $83,000

Expenditure: Increase – Capital Machinery and Equipment

Expenditure: 13500-59500 $83,000

This ordinance is approved and adopted this 12th day of July 2021. _________________________ Milton D. Hinnant, Mayor ATTEST: ___________________________ Bridgette Bell, MMC, NCCMC City Clerk

City of Kannapolis


TO: Mayor and City Council FROM: Africa Otis, Finance Director

TITLE Award Bid for the Installment Financing of the2021 Revenue Bonds and Refunding of the 2011and 2013 Revenue Bonds

A. Action Requested by City CouncilApprove Truist Bank as Lender for the 2021 Revenue Bonds and the Refunding of the 2011and 2013 Revenue Bonds


C. BackgroundCity Council is considering issuing Water and Sewer System Revenue Bonds for the purpose of (1) financing the costs of extensions, additions and capital improvements to, extend Utilityinfrastructure to service Kannapolis Crossing; a mixed use development located off the I-85corridor (2) refinance the outstanding amount of the City’s Water and Sewer System RevenueRefunding Bond, Series 2011 and Water and Sewer System Revenue Bonds, Series 2013 and(3) pay the costs of issuing the 2021 Bonds.

D. Fiscal ConsiderationsNot to exceed debt issuance in the amount of $31,795,000, with anticipated annual debt serviceof approximately 705K. New money debt issuance 11.4M for 20 years. Anticipated savings ofapproximately 157K annually from refunding of 2011 and 2013 Revenue Bonds.

E. Policy IssuesNone

F. Legal IssuesNone

G. Alternative Courses of Action and Recommendation1. Approve Truist Bank as lender for the Installment Financing of the 2021 Revenue

Bonds and the Refunding of the 2011 and 2013 Revenue (Recommended) 2. Do not approve Truist Bank as lender for the Installment Financing of the 2021 Revenue

Bonds and the Refunding of the 2011 and 2013 Revenue.3. Defer action to a future meeting

ATTACHMENTS:File NameCity_of_Kannapolis_NC_2021_Revenue_Bond_RFP_Summary_Memo.pdf

Member NYSE | FINRA | SIPC Page 1

To City of Kannapolis, North Carolina

From Davenport & Company LLC

Date July 12, 2021

Subject 2021 Revenue Bond RFP Summary

Background Davenport & Company LLC (“Davenport”), on behalf of the City of Kannapolis, NC (the “City”), distributed a Request for Proposals (“RFP”) to secure a commitment for a direct bank loan evidenced by a Revenue Bond to finance water and sewer lines and a water tank (“New Money”) and refinance some or all of the City’s outstanding 2011 Water & Sewer Revenue Bond and 2013 Water & Sewer Revenue Bonds, as well as to pay for Costs of Issuance. The RFP was distributed to over 60 National, Regional, and Local lending institutions. After the initial distribution, Davenport reached out to the potential bidders to assess their interest in the financing and address any questions they had. As part of the RFP process, responding institutions were asked to provide interest rates for the following:

a. 20-Year Tax-Exempt Interest Rate for the New Money projects; b. 4-Year Tax-Exempt Interest Rate to refinance the existing 2011 Revenue Bond; c. 17-Year Taxable Interest Rate to refinance the existing 2013 Revenue Bonds, with the option to convert to

a specified Tax-Exempt Interest Rate in the future.

RFP Responses Through this process, the City was able to secure six responses to the RFP, including:

1. JPMorgan Chase Bank, N.A. (“Chase”); 2. PNC Bank, N.A. (“PNC”); 3. Signature Public Funding Corp. (“Signature”); 4. Sterling National Bank (“Sterling Bank”); 5. Truist Bank (“Truist”); 6. Wells Fargo Bank, N.A. (“Wells Fargo”).

The following pages contain a summary of the key terms and conditions for the responses received.

Davenport Public Finance

Independence Center 101 N. Tryon Street Ste. 1220 Charlotte, NC 28246

July 12, 2021


Summary of Interest Rate Proposals

A summary of the interest rates proposed by the six bidders is outlined in table 1 below. Based upon the proposals received, Truist provided the lowest interest rates for each Option. The remainder of this memo will focus on the Truist proposal.

Table 1: Summary of Interest Rates Received

A B C D20-Year Tax-Exempt 4-Year Tax-Exempt 17-Year Taxable / Tax-Exempt1

New MoneyRefinancing of 2011 W&S Revenue Bond

Refinancing of 2013W&S Revenue Bonds

1 Taxable Rate in place for the life of the loan. Can be converted to Tax-Exempt Rate on 4/1/2023 if certain conditions are met.2 Rate shown subject to a Make Whole Call. Lender proposed a rate of 0.99% for the loan to be callable at par on or after February 1, 2023.3 Rates shown subject to a Make Whole Call. Lender proposed alternative interest rates for a 7-Year or 10-Year Par Call Option. The Par Call Option interest rates were higher than the Make Whole Call provision interest rates provided.

1 JPMorgan Chase Bank, N.A.2 - -

2 PNC Bank, N.A. - 1.08%

0.950%

2.42% -

-

3 Signature Public Funding Corp. - 1.218% -

-

Purpose

6 Wells Fargo Bank, N.A. - 0.92%

-

5 Truist Bank3 1.93% 0.610% 2.30% / 1.82%

4 Sterling National Bank

July 12, 2021


Estimated New Money Project Debt Service

A summary of the estimated debt service structure for the Truist New Money Option outlined previously is shown in table 2 below. The preliminary estimated debt service shown accounts for estimated costs of issuance.

Table 2: Summary of Estimated New Money Debt Service

A B C D

Fiscal Year Principal Interest Total

2022 -$ 101,368$ 101,368$ 2023 481,000 223,880 704,880 2024 490,000 214,597 704,597 2025 500,000 205,140 705,140 2026 509,000 195,490 704,490 2027 519,000 185,666 704,666 2028 529,000 175,649 704,649 2029 539,000 165,440 704,440 2030 550,000 155,037 705,037 2031 560,000 144,422 704,422 2032 571,000 133,614 704,614 2033 582,000 122,594 704,594 2034 593,000 111,361 704,361 2035 605,000 99,916 704,916 2036 616,000 88,240 704,240 2037 628,000 76,351 704,351 2038 641,000 64,230 705,230 2039 653,000 51,859 704,859 2040 665,000 39,256 704,256 2041 678,000 26,422 704,422 2042 691,000 13,336 704,336 Total 11,600,000$ 2,593,866$ 14,193,866$ Note: Preliminary and subject to change.

July 12, 2021


Summary of Potential Refunding Opportunities A summary of the estimated refunding results for the Truist proposal is shown in table 3 below. The preliminary results shown account for estimated costs of issuance. Additional details related to the existing bonds will need to be confirmed in order to fully evaluate the viability of these refinancings. Table 3: Summary of Refunding Results

Recommendation Based upon our review of the proposals, related analyses, and discussions with City Staff and Bond Counsel, Davenport recommends that the City select the Truist make-whole call proposal options. The Truist proposal provides the lowest annual and total debt service for the New Money and highest savings for the Refinancings. As these financings would be subject to a make-whole call provision, future refinancings for debt service savings are unlikely to occur. Next Steps

Date Action July 12th City Council Meeting – City Council considers selecting a winning bidder. August 3rd LGC considers approval of the financing. August 10th City Council Meeting – City Council considers adopting a Bond Order and

Bond Resolution authorizing the issuance of the Revenue Bond. By August 18th Close on financing.

A B C D

Series Refunded2011 Water & Sewer

Revenue Bond1

2013 Water & Sewer Revenue Bonds2 Grand Total

Refunding Tax Status Tax-Exempt Taxable / Tax-Exempt

1 Summary of Bonds Refunded:2 Amount $ 5,445,200 $ 13,315,000 $ 18,760,2003 Average Coupon of Refunded Bonds 2.850% 4.466% 4.348%4 Final Maturity 2/1/2025 4/1/2038 4/1/20385

6 Summary of Refunding Bonds7 Amount 5,573,000$ 14,524,000$ 20,097,000$ 8 Interest Rate 0.610% 2.300% / 1.82% 1.805%9 Final Maturity 2/1/2025 2/1/2038 2/1/2038

10

11 Summary of Refunding Results12 Gross Savings 120,847$ 2,553,729$ 2,674,576$ 13 NPV Savings ($)* 117,880$ 2,105,516$ 2,223,396$ 14 NPV Savings (% of Refunded Par) 2.165% 15.813% 11.852%15 Average Annual Savings ($) 30,212$ 150,219$ 157,328$

Note: Preliminary and subject to change.1 Subject to Truist waiving the requirement that the Refunded Bond must be refunded on an interest payment date.2 Assumes that the Taxable to Tax-Exempt conversion occurs on 4/1/2023. If for any reason the conversion doesn't occur, the gross savings would be approximately $1,999,172.

July 12, 2021


The U.S. Securities and Exchange Commission (the “SEC”) has clarified that a broker, dealer or municipal securities dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of municipal securities should be subject to municipal advisor registration. Davenport & Company LLC (“Davenport”) has registered as a municipal advisor with the SEC. As a registered municipal advisor Davenport may provide advice to a municipal entity or obligated person. An obligated person is an entity other than a municipal entity, such as a not for profit corporation, that has commenced an application or negotiation with an entity to issue municipal securities on its behalf and for which it will provide support. If and when an issuer engages Davenport to provide financial advisory or consultant services with respect to the issuance of municipal securities, Davenport is obligated to evidence such a financial advisory relationship with a written agreement.

When acting as a registered municipal advisor Davenport is a fiduciary required by federal law to act in the best interest of a municipal entity without regard to its own financial or other interests. Davenport is not a fiduciary when it acts as a registered investment advisor, when advising an obligated person, or when acting as an underwriter, though it is required to deal fairly with such persons. This material was prepared by public finance, or other non-research personnel of Davenport. This material was not produced by a research analyst, although it may refer to a Davenport research analyst or research report. Unless otherwise indicated, these views (if any) are the author’s and may differ from those of the Davenport fixed income or research department or others in the firm. Davenport may perform or seek to perform financial advisory services for the issuers of the securities and instruments mentioned herein. This material has been prepared for information purposes only and is not a solicitation of any offer to buy or sell any security/instrument or to participate in any trading strategy. Any such offer would be made only after a prospective participant had completed its own independent investigation of the securities, instruments or transactions and received all information it required to make its own investment decision, including, where applicable, a review of any offering circular or memorandum describing such security or instrument. That information would contain material information not contained herein and to which prospective participants are referred. This material is based on public information as of the specified date, and may be stale thereafter. We have no obligation to tell you when information herein may change. We make no representation or warranty with respect to the completeness of this material. Davenport has no obligation to continue to publish information on the securities/instruments mentioned herein. Recipients are required to comply with any legal or contractual restrictions on their purchase, holding, sale, exercise of rights or performance of obligations under any securities/instruments transaction. The securities/instruments discussed in this material may not be suitable for all investors or issuers. Recipients should seek independent financial advice prior to making any investment decision based on this material. This material does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of the transaction. You should consider this material as only a single factor in making an investment decision. The value of and income from investments and the cost of borrowing may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions or companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance and estimates of future performance are based on assumptions that may not be realized. Actual events may differ from those assumed and changes to any assumptions may have a material impact on any projections or estimates. Other events not taken into account may occur and may significantly affect the projections or estimates. Certain assumptions may have been made for modeling purposes or to simplify the presentation and/or calculation of any projections or estimates, and Davenport does not represent that any such assumptions will reflect actual future events. Accordingly, there can be no assurance that estimated returns or projections will be realized or that actual returns or performance results will not materially differ from those estimated herein. This material may not be sold or redistributed without the prior written consent of Davenport. Version 01.13.14 | CC MB TC

City of Kannapolis


TO: Mayor and City Council FROM: Mike Legg, City Manager

TITLE Resolution Amending the Kannapolis CodeEstablishing a Private Use Zone

A. Action Requested by City CouncilMotion to table action on this agenda item until the July 26, 2021 City Council meeting.


C. BackgroundAt the June 28th City Council meeting, action on the establishment of Private Use Zones wastabled until the July 12th meeting to allow time for continued discussion with the downtownproperty owners regarding the proposed fee included as part of the ordinance changes. Thosediscussions are underway but have not concluded. It is recommended that this item be tabled again until July 26th to allow those discussions toconclude.

D. Fiscal ConsiderationsNone.

E. Policy IssuesNone.

F. Legal IssuesNone.

G. Alternative Courses of Action and RecommendationMotion to table action on this agenda item until the July 26, 2021 City Council meeting.

ATTACHMENTS:File Name

No Attachments Available

City of Kannapolis


TO: Mayor and City Council FROM: Mike Legg, City Manager

TITLE Discussion of FY 2022-2026 Financial Plan andCapital Improvement Program

A. Action Requested by City CouncilNone. Discussion only.

B. Required Votes to Pass Required ActionPresentation Only, no action required

C. BackgroundIn March and April 2021 City Council participated in a COVID-friendly Virtual Planning Retreatwhich set City Council project and initiative priorities for the next five years. The following wasthe starting point for the priority setting and the overall implementation plan:

58 projects/initiatives with an estimated capital cost $189.8 million and $9.5 million inannual recurring cost. The proposed 2022-26 funding implementation plan addresses 22of these projects and initiatives28 studies/plans with an estimated $1 million in initial estimated study costs (figure doesnot include implementation costs). The proposed 2022-26 funding implementation planaddresses 9 studies and plans, and in some cases includes initial implementation fundingto jump-start the projects upon completion of the plan or study.10 small projects/initiatives with an estimated $648,000 in capital cost and $406,000annual recurring cost. The proposed 2022-26 funding implementation plan addresses 5 ofthese small projects/initiatives.

This City Council process was part of the foundation for developing a recommended 5-yearGeneral Fund Financial Plan which has been presented to City Council previously. Since thattime there have been some changing conditions and outside influences that have resulted in aslight pause in the formal implementation of the plan.

At this City Council meeting an update on this plan will be provided by Staff. An additionalreview of planned Water and Sewer Fund projects will be facilitated as well. The overarching purpose of this meeting is to keep City Council updated on the path forward onnumerous capital projects as well as to provide an opportunity for any suggested to changes tobe collectively discussed as the final plan is developed over the next 30-60 days. No formal action will be requested of City Council at this time.

D. Fiscal ConsiderationsTo be discussed at the meeting.

E. Policy IssuesNone.

F. Legal IssuesNone.

G. Alternative Courses of Action and RecommendationNone. Discussion only.



City of Kannapolis


TO: Mayor and City Council

FROM: Mike Legg, City Manager Kristin Jones, Assistantto the City Manager

TITLE Discussion of Environmental Fee Increase

A. Action Requested by City CouncilProvide staff with a suitable alternative to balancing the Environmental Fund if the $2.50Environmental Fee increase isn't approved.


C. BackgroundAs part of the FY 22 Adopted Budget that was approved on June 28th, further discussion isneeded regarding the planned $2.50/month Environmental Fee increase. This fee increase isprojected to generate an additional $563,400 based off of the city's 18,780 customers at $2.50/month. This would result in the fee going from $15.60/month to $18.10/month (an annualincrease of $30 for residents). As a reminder, this fee increase was slated to occur in FY 21 as part of the City's long rangefinancial plan in an effort to make this fund self-sufficient. Due to the COVID-19 pandemic, staffrecommended and City Council approved a delay in the fee increase in FY 21, thereforepushing it out one year. The reason behind the fee increase is two-fold: 1. An effort to reduce the substantial transfers from other funds to supplement the EnvironmentalFund. The FY 22 budget includes a $495,700 transfer from the Water and Sewer Fund (sameas FY 21) and a $85,542 transfer from the General Fund (a reduction of $64,458 from FY 21).FY 21 also appropriated fund balance in the Stormwater Fund by $400,000 to then transfer tothe Environmental Fund since the fee increase was delayed. There is no fund balanceappropriation or transfer from the Stormwater Fund for FY 22 (but this assumes theEnvironmental Fee implementation).

2. Increased costs in recycling. The City's current waste disposal rate is $40.90 per ton (up$1.20 from FY 21) and recycling disposal rate is $105.00 per ton (up $10.00 per ton in FY 21).The City currently pays Mecklenburg County around $380,000 annually based on 3,640/tons fordisposal and Waste Management around $500,000 annually for collection. This doesn't includecontamination surcharges which occur and also drive up the cost of recycling.

D. Fiscal ConsiderationsOptions: 1. Begin collecting the $2.50 Environmental fee increase as planned to reduce thetransfers from the General Fund and Water and Sewer/re-enforcing the City's long rangefinancial plan as well as to offset increased recycling costs (Recommended). If the fee increase isn't adopted to balance the Environmental Fund and generate a projected$563,400 annually, then the following are options to cover this revenue shortfall: 2. General Fund Fund Balance Appropriation, which would then get transferred to theEnvironmental Fund. This option is not ideal since it uses a one-time revenue source (cashreserves) to offset recurring expenditures which is outside the boundaries of the City's internalcash management/reserve policy. Should the decision to not implement the Environmental Fee continue beyond one year, thisoption of using fund balance could impact the proposed retreat implementation plan, which reliesheavily on cash reserves to fund City Council retreat initiatives and one-time projects. Theseprojects could be impacted or delayed if cash reserves are utilized. 3. Cut the recycling program. This is projected to save around $500,000 annually, but therewill be an increase in garbage collection with the addition of more carts and obviousenvironmental impacts. Some North Carolina communities that have suspended their recyclingprograms due to costs are: Gastonia, China Grove, Landis, Ranlo, Rockwell, Sparta andStedman. 4. Reduction in General Fund Expansion and/or Water and Sewer Expansion requests,therefore supplementing a larger transfer to the Environmental Fund. General Fund:

$456,093 in Board Contingency (one-time)$285,351 for 1.5% Cost of Living (COLA) (recurring)$482,719 based on 2.5% merit increase (recurring)$200,000 for additional 1% match to employees 401k (brings local match to 3%)(recurring)$168,000 for additional $420 in flex spending dollar program (recurring)$124,800 for employee members to YMCA (recurring)$576,441 in personnel costs (recurring) and $131,000 capital outlay costs (one- time) toreduce 14 new positions and 1 reclassification (recurring)

Water and Sewer:$81,400 in contracted services for deferred maintenance (recurring)$232,000 in capital outlay as part of routine replacement (one-time)$46,301 in contracted services for SCADA improvements and upgrades (one-time)

E. Policy IssuesIf option #2 is chosen, this will not adhere to the internal cash management/reserve policies iffund balance is appropriated to cover a recurring expense. The current City of Kannapolis Reserve Policy: "The City will establish an emergency reserve to pay for needs caused by unforeseenemergencies, including unanticipated expenditures of a nonrecurring nature or to meetunexpected small increases in service delivery costs." An appropriation of fund balance to cover the revenue shortfall for a one-year period will keep usin compliance with the City of Kannapolis Reserve Policy that states: "Available fund balance atthe close of each fiscal year should be within a range of at least 25% and no more than 33% (13to 17 weeks) of the Total Annual Operating Budget." If fund balance continues to be utilized insubsequent years to cover this revenue shortfall, we may fall below the minimum fund balancetarget of 25%.

F. Legal IssuesG.S. 143C-1-3 (6) The Environmental Fund is set up as an Enterprise Fund, which by GeneralStatute is defined to account for any activity for which a fee is charged to external users forgoods or services. Activities are required to be reported as enterprise funds if any one of thefollowing criteria is met. Each of these criteria should be applied in the context of the activity'sprincipal revenue sources: a. The activity is financed with debt that is secured solely by a pledge of net revenues from feesand charges of the activity. b. Laws or regulations require that the activity's cost of providing services, including capitalcosts, be recovered with fees and charges rather than with taxes or similar revenues. c. The pricing policies of the activity establish fees and charges designed to recover its cost,including capital costs.

G. Alternative Courses of Action and RecommendationMotion to direct staff to begin collecting the $2.50 Environmental Fee increase.(Recommended). 2a. Motion to amend the fee schedule without the $2.50 Environmental Fee increase forFY 22.2b. Motion to adopt the budget amendment which appropriates General Fund fund balancethat transfers corresponding funding to the Environmental Fund. 3. Table to a futuremeeting.

ATTACHMENTS:File Name2022__Fee_Schedule_without_Env_Fee_Increase.pdf

BA_for_GF_FB_for_Fee_Inc_Alternative.pdf

1

Proposed Fiscal Year 2022

Fee Schedule Adopted June 22nd, 2020

Revised May 10th, 2021

Proposed May 24, 2021

2

Table of Contents

Admin …………………………………………………………pg. 3

HR ………………………………………………………………...pg. 3

Police………………………………………………………………pg. 3

Downtown Parking……………………..………………………...pg. 4

Planning & Zoning……………………………………………….pg. 4

Fire ………………………………………………………………..pg. 5

Parks……………………………………………………………....pg. 11

Water & Sewer……………………………………………………pg. 14

Environmental …………………………………………………...pg. 19

Stormwater……………………………………………………….pg. 19

Event Space Rentals……………………………………………..pg. 20

3

Admin

Public Records Fee

Copies of Documents (per sheet) 10 cents

Copies of Ordinances (each) $10

Thumb Drive with Data $ 5

Legal Notices Fee

Legal Advertisements & Newspaper Ads. $300 or actual cost,

Whichever is greater.

HR

Employee Notices Fee

Wage Garnishment Notice (each) $14.35

Employee ID Badge replacement $10.00

Police

Police Permits and Services Fee

Fingerprinting In-Town Residents $15.00

Out-of-Town Residents $25.00

Sound Permits $25.00

Pawn Brokers Permits $275.00

Transportation Fee Vehicle license fee $30.00 (annually)

4

Downtown Parking

1st Vehicle 2nd Vehicle 3rd Vehicle

Guaranteed Parking Permit (Vida Deck) Vida Issued $30.00

(monthly)

$60.00

(monthly)

Non-Guaranteed Parking Permit (Surface

Lots Only)

Vida Issued $15.00

(monthly)

$30.00

(monthly)

Lost Permit Replacement Fee $5.00

(each)

$5.00

(each)

$5.00

(each)

Planning and Zoning

Fee

Zoning Map Amendment: *plus applicable Legal Ad & Mailed notification fees

$500.00

Conditional Zoning Map Amendment: *plus applicable Legal Ad & Mailed notification fees

$600.00

UDO Text Amendment:

$400.00

Special Use Permit: *plus applicable Mailed notification fees

$600.00

Variance, Appeal, Nonconformity Adjustment: *plus applicable Mailed notification fees

$300.00

Mailed Notification Fees:

1-20:

21-50:

50-100:

Over 100:

$25.00

$75.00

$175.00

$300.00

Grading Permit (without Site Plan): *plus $25 per additional acre

$50.00

Driveway Permit:

$25.00

Zoning Clearance Permit (Fees are for each item separately, even if combined

in a single zoning clearance permit application) Residential 1F:

Residential 2F:

Multi-family (5 units or less):

Multi-family (more than 5 units & whichever is greater):

Accessory (Residential and Non-Residential)

Non-Residential

Temporary Use

$25.00

$25.00

$250.00

$300.00 or $.04/SF

$25.00

$30.00

$50.00

5

Temporary Construction Trailer

Home Occupation

Signs

Certification Letter *Zoning, Watershed, Floodplain, etc.

$50.00

$50.00

$40.00

$25.00

Site Plan Review (Multi-family Residential & Non-Residential): *plus $100 per additional acre

$200.00

Subdivision Fees

Plat Exception:

Minor Subdivision Plat Review:

Minor Subdivision Plat Revision:

No Charge

$50.00

$40.00

Preliminary Major Subdivision Plat Review $400.00 (plus $30 per lot)

Preliminary Major Subdivision Revision $50.00 (Minor Amendment)

Final Subdivision Plat Review $200.00

Final Subdivision Plat Revision $40.00

PUBLICATION FEES.

Land Use Plan $25.00

Unified Development Ordinance $50.00

Zoning Map $20.00

** All fees established are due and payable at the time of product delivery or upon initial submittal

of any item or items to be reviewed, processed or approved. All fees are non-refundable with the

following exception: 75% of processing and notification fees for map amendments listed in Part 1

of this ordinance may be refunded if an application is withdrawn within seven (7) days following a

pre-hearing neighborhood meeting.

** There will be a $25.00 returned check fee for any check received by the City.

Fire

REQUIRED CERTIFICATE OF COMPLIANCE Fee

Certificate of Compliance

1-1,000 SF $20.00

1,001-20,000 SF $50.00

20,000-50,000 SF $100.00

50,000-70,000 SF $200.00

Every 20,000 SF over 70,000 SF is an additional $50.00

Certificate of Compliance Re-inspections $ 50.00

Plan Review

6

Construction $50.00+ .025/sf

Up-Fit $50.00+ .025/sf

Site Plan $50.00

Re-review fee $50.00

* applied on third submittal & each re-submittal thereafter

Hydrant flow test (fee per hydrant) $150.00

Temporary Power Inspection $50.00

Load Merchandise Inspection $50.00

(1) For multi-tenant building, fees are per tenant.

(2) For multiple building owned by the same owner(s), fees are per building as defined by the NC

Building Code, Vol. 1.

(3) Individuals or companies that have not secured permits or Certificates of Compliance prior to

beginning work or occupying the structure shall be charged double the listed amount.

(4) Re-inspections of the sprinkler system, fire alarm system, or building for Certificate of

Compliance will result in an additional fee per inspection.

REQUIRED CONSTRUCTION PERMITS

Permit Fee Test Fee

Automatic Fire Extinguishing Systems (Ansul/Sprinkler) $150.00 $150.00**

Compressed Gases $150.00 $150.00

Fire Alarm & Detection Systems $150.00 $150.00**

Fire Pumps $150.00 $150.00

Flammable & Combustible liquids $150.00 $150.00

Hazardous Materials $150.00 $150.00

Industrial Ovens $150.00 $150.00

Spraying or Dipping Operations $150.00 $150.00

Standpipe Systems $150.00 $150.00

NOTE: Any system installation prior to plan review and/or a permit being issues will incur a double

fee.

Any structure over 70,000 SF x .002 + $150 **

(DOES NOT INCLUDE HOOD SYSTEM/ANSUL)

REQUIRED OPERATION PERMITS Fee

Amusement Buildings $150.00

Carnivals and Fairs $300.00

Covered Mall Buildings $150.00

Exhibits and Trade Shows $2,500/yr or $150.00/event

Explosives (blasting) $100/1-day or $300/90-days

Liquids Use, Dispensing, Storage, Transportation $150.00

UGST/AGST Install, Alter, Remove, Abandon $250.00/site

Change in Liquid in Tanks $150.00

Liquid Dispensing – AGST/UGST to Vehicles $150.00

Liquid Dispensing – Tanker to Vehicles $150.00

7

Pyrotechnic Special Effects Material (Fireworks) $300.00/day & site

Spraying or Dipping $150.00

Tents & Canopies $50.00/tent

REQUIRED OTHER CHARGES/FEES

Fee

Environmental Site Assessment Research $25.00 per hour (one hour minimum)

Fire Flow request/Special Request (fee per hydrant) $150.00/hydrant

Stand-by firefighters $20.00/hr per firefighter

* when required by fire official or requested by occupant

After Hours Inspection – Special Request $35.00/hr (minimum of 2 hours)

After Hour Plan Review – Special Request $150.00/submittal

Other inspections by request $100.00

Knox/Lock Box Maintenance (Found with incorrect key) $100.00

Re-inspections (third visit or additional inspections) $50.00

State License Inspection Fee (ABC, State Bar, etc.) $100.00

Daycare & Nursing Home License Inspection Fee $ 75.00

Group Home License Inspection Fee (annually) $75.00

Foster License Inspection Fee (annually) $20.00 (second visit $50.00)

Fire Incident Report Copy(s) $1.00 (per report)

Fire Extinguisher Recharge use for class Current Market Rate per Ext.

Fire Extinguisher Program (Training Class) $ 50.00/On-site (Fire Station/City

Hall)

Fire Extinguisher Program (Training Class) $75.00/Off-site at Requested Business

ANNUAL FIRE INSPECTION PROGRAM

Fee

First Inspection (initial) $0.00

Second Visit Re-inspection $0.00

Third Visit Re-inspection $50.00

Fourth Visit Re-inspection $100.00

Additional Re-inspections will increase at $50 per inspection until violations are corrected.

HAZARDOUS MATERIALS FEES:

Fee

Solids (lbs) Liquids (gals) Gases (SCF)

< 501 < 56 < 201 $50.00

501 – 5,000 56 – 550 201 - 2000 $150.00

5,001 – 25,000 551 – 2,750 2,001 – 10,000 $200.00

25,001 – 50,000 2751 – 5500 10,001 – 20,000 $250.00

50,001 – 75,000 5501 – 10,000 20,001 – 40,000 $300.00

>75,000 > 10,000 >40,000 $300.00

pound **(plus .01/per gallon//scf in excess of listed amount)

NOTE: Excluding LPG/Medical gases

LPG (Excludes LPG used ONLY for heating and cooking) $150.00/tank

8

Medical Gasses $150.00/tank

Radioactive Materials any amount $125.00

STAND-BY PERSONNEL/EQUIPMENT

Fee(work hrs.) Fee(Overtime)

Ladder/Hazmat $125.00/$95.00

Engine/Tanker $95.00

Crash Truck/ Heavy Rescue $95.00

Rescue Units $95.00

Mobile Command Unit/Bus $30.00

USAR $28.00

Light Vehicles (Cars/Pick-ups) $17.00/$27.00

Trailers $10.25

Mules/ATV $8.00

Assistant Chief/Division Chief $35.87 $53.81

Battalion Chief $23.39 $35.08

Fire Captain $21.21 $31.82

Engineer $17.45 $26.18

Firefighter $15.07 $22.61

Risk Reduction Personnel $25.49 $38.24

Based on Stand-by per quarter hour, minimum 2 hours.

HAZMAT SUPPLIES

Item Rate

Level “A” (enclosed, splash, and vapor protection)

Large-XLarge 1775.00

2XLarge 1975.00

Level “A” Suits (Flash protection)

Large – Xlarge 2495.00

XXLarge 2695.00

Level B Suits (Splash protection)

S- XLarge 170.50

2XL to 4XL 207.00

Tyvek Disposable Coveralls 17.00

Butyl Gloves 76.25 pair

Silver Shield Gloves 10.95 pair

Nitrile Gloves 5.30 pair

Rain fair Latex Nuke Boots (yellow over boots) 6.00 pair

Chem-Tape (for sealing gaps in suits at sleeve, ankle, hood and storm flap) 42.00

Pipettes 1.00 ea

Boom 8 x 10 72.64

Boom 3 x 10 10.77

Boom 3 x 4 6.40

Absorbent 15.00/bag

Absorbent pads 17”x19” (Universal, oil only and Haz-Mat) .75 ea

Absorbent Pillows 16” 5.07 each

9

Item Rate

Absorbent Padding Roll (Universal) 30”x150’ 105.00 roll

Pail of Acid Neutralizer 40 lb. 132.95

Pail of Base Neutralizer 40 lb. 360.00

Soda Ash 50lb. bag 45.25

55 gallon drums 99.00

Overpack Drum 189.00

20 gallon containment Pool 82.00




Drain seal/inlet guard 78.40

3’x2’ Magnet Drain Cover 95.60

2’x2’ Magnet Drain Cover 63.80

Large Wooden Cone Plug 10.00

Small Wooden Cone Plug 5.00

Plug N Dike 28.00

Flow Stop Football 88.00

Flow Stop Golfball 46.00

Foam Class B (Thuderstorm) 37.00/gallon

Foam Class A 12.75/gallon

Drager CMS Chips

Acetic Acid 2 -50 ppm 77.95

Acetone 40-600 ppm 81.25

Ammonia 2-50 ppm 55.31

Ammonia 10-150 ppm 55.31

Benzene 10-250 ppm 147.91

Benzene 0.2-10 ppm 144.65

Carbon Dioxide 200-3000ppm 55.52

Carbon Dioxide 1000-25000ppm 55.52

Carbon Monoxide 5-150ppm 53.70

Chlorine 0.2-10 ppm 55.31

Formaldehyde 0.2-5 ppm 75.85

Hydrochloric Acid 1-25 ppm 70.17

Hydrogen Peroxide .2-2 ppm 79.49

Hydrogen Sulfide 2-50 ppm 55.31

Methanol 20-500 ppm 89.20

Nitrogen Dioxide .5-25 ppm 55.24

Nitrous Fumes (NO + NO2) 0.5-15ppm 53.70

Perchloroetheylene 5-500 ppm 64.74

Petroleum Hydrocarbons 100 – 3000ppm 78.53

Petroleum Hydrocarbons 20-500ppm 79.42

Phosgene .05-2.0ppm 89.20

Phosphine 1-25 ppm 66.91

10

Item Rate

Sulfur Dioxide 0.4-10 ppm 55.24

Trichloroethylene 5 – 100 ppm 64.00

Vinyl Chloride 0.3-10 ppm 70.87

Drager and GasTec Detector Tubes

Acetaldehyde 100-1000ppm 66.71

Acetic Acid 5-80ppm 62.81

Ammonia 5-700ppm 55.75

Carbon Dioxide 0.5-20% Vol 88.30

Chlorine 0.3 – 5ppm 66.03

Chlorine 50-500ppm 63.97

Chlorobenzene 5-200ppm 63.97

Clan Lab Simultaneous Test Set 75.92

Cyanogen Chloride .25-5ppm 85.03

Haz-Mat Simultaneous Test Set 1 (inorganic) 127.16

Haz-Mat Simultaneous Test Set 2 (inorganic) 127.16

Haz-Mat Simultaneous Test Set 3 (organic) 127.16

Hydrocyanic Acid 2-150ppm 58.26

Hydrogen Cyanide 0.36-120 ppm 78.51

Hydrogen Flouride .5-90ppm 67.44

Nitrogen Dioxide 0.1-30ppm 80.12

Nitrogen Dioxide 0.5-125 ppm 52.97

Organic Arsenic Qualitative 80.26

Organic Basic Nitrogen Comp 1mg/ m3 85.73

Phenol 0.4-187 ppm 80.97

Phosphoric Acids Esters Up to .05ppm 104.94

Thioether 1mg/ m3 86.08

Vinyl Chloride 0.25-54 ppm 80.26

Decon Pools/Burms 360.00 ea

Chemical Classifiers Strips 10.00 ea

PH Papers 10.00 roll

Chemical Agent Detection Paper/Tape 50.00 ea

35 gallon trash can 30.00

Drum Sampler Tube 7.00 ea

Decon Solution 88.00/gallon

Tarp 57.00 ea

Mercury Spill Kit 24.00 ea

1 lb of 8p nails 3.47

1 lb of 16p nails 4.20

1 lb of 3” deck screws 9.94

4’ x 8’ 7/16” OSB Sheathing 7.25

4” x 6” x 12’ Lumber 22.00

4” x 4” x 16’ Lumber 21.00

2” x 4” x 16’ Lumber 7.00

11

Parks

VILLAGE PARK SHELTERS

½ Day Rental Full Day Rental

Shelter A

Resident $25 $40

Non-Resident $32 $55

Shelter B

Resident $45 $80


Shelter C

Resident $25 $40


Shelter C- Saturdays - 2 hour rental

Resident $15

Non-Resident $20

Shelter D

Resident $35 $60


Shelter E

Resident $25 $40


Rental of all 4 shelters

Resident $110 $144


Descriptions of Shelter Areas: Village Park Shelter A – use by reservation only

Shelters A & C hold approximately 36 people and have 6 picnic tables. These shelters offer power receptacles

and grills. They are located close to the splash pad, carousel, train and playground. Cost for a resident to

reserve Shelter A is $25 for a half day (9 – 2:30pm or 3 – 8:30pm). Cost for a full day (9 – 8:30pm) is $40.

Half day reservations may be made on-line; to make a full-day reservation, please call our office at 704-920-

4343.

Village Park Shelter B – use by reservation only

Shelter B holds approximately 96 people and has 16 picnic tables. Shelter B offers power receptacles and a

grill. This shelter is close to the splash pad, carousel, train and playground. Cost for a resident to reserve

Shelter B is $45 for a half day (9 – 2:30pm or 3 – 8:30pm). Cost for a full day (9 – 8:30pm) is $80. Half day

reservations may be made on-line; to make a full-day reservation, please call our office at 704-920-4343.

Village Park Shelter C – use by reservation only

Shelters A & C hold approximately 36 people and have 6 picnic tables. These shelters offer power receptacles

and grills. They are located close to the splash pad, carousel, train and playground. Cost for a resident to

reserve Shelter C is $25 for a half day (9 – 2:30pm or 3 – 8:30pm). Cost for a full day (9 – 8:30pm) is $40.

BIRTHDAY PARTY TIME BLOCKS: On Saturdays, Shelter C may be reserved in 2-hour time blocks. (9:30

– 11:30, 12:00 – 2:00, 2:30 – 4:30, 5:00 – 7:00). Cost for residents to reserve a 2-hour time block is $15.00.

12

Two Hour time blocks and half day reservations may be made on-line; to make a full-day reservation, please

call our office at 704-920-4343.

Village Park Shelter D – use by reservation only

Shelter D holds approximately 60 people and has 10 picnic tables. Shelter D offers power receptacles and a

grill. This shelter is close to the splash pad, carousel, train and playground. Cost for a resident to reserve

Shelter D is $35 for a half day (9 – 2:30pm or 3 – 8:30pm). Cost for a full day (9 – 8:30pm) is $60. Half day

reservations may be made on-line; to make a full-day reservation, please call our office at 704-920-4343.

Village Park Shelter E – use by reservation only

Shelter E holds approximately 24 people and has 4 picnic tables. Shelter E offers power receptacles and a grill.

This shelter is located adjacent to the playground and close to the splash pad, carousel and train. Cost for a

resident to reserve Shelter E is $25 for a half day (9 – 2:30pm or 3 – 8:30pm). Cost for a full day (9 – 8:30pm)

is $40. Half day reservations may be made on-line; to make a full-day reservation, please call our office at 704-

920-4343.

BAKERS CREEK PARK SHELTERS


Shelters 1, 2 &3

Resident $40 $65


Shelter 4

Resident $25 $45


Shelter (930 West 8th Street) $50

Individual Picnic Sites:

Site A (3 tables, 1 grill, seats 20 - 24) $15 $30


Site B (2 tables, 1 grill, seats 12 - 15) $10 $20

Site C (2 tables, 1 grill, seats 12 - 15) $10 $20

Site D (1 table, 1 grill, seats 8-10) $5 $10

Descriptions of Shelter Areas: Bakers Creek Park Large Picnic Shelters – use by reservation only

Shelters 1 & 2 hold up to 90 people and Shelter 3 holds up to 125 people. These large picnic shelters

offer water, lights, receptacles, grills and horseshoe pits.

Bakers Creek Small Shelter Picnic Site (Shelter #4) – use by reservation only

This one covered picnic site is available that holds up to 30 people. Four large picnic tables and a

grill are included. No power, water or horseshoe pits are available. Located adjacent to playground.

Mountain Street Park (Bakers Creek Park Expansion) Shelter – use by reservation only

The Expansion Park, located at the corner of 930 West 8th St. and Mountain St., offers four picnic

tables, a grill, playground, two sand volleyball courts, horseshoe pits and restrooms. Limited parking

is available. Good for small groups under 30 people. For use only daily, no half-day rentals.

13

OTHER FEES

• Excessive Cleaning (see policy): $30/hr.

• Police Officer: If required, rate will be provided during application submission

HOURS

• Business Hours: 8:00AM – 5:00PM (Mon – Fri)

• After Business Hours: Nights and Weekends

• Holidays: Any designated City holiday

VILLAGE PARK AMPHITHEATER

Refundable Security Deposit: $500

Resident for-profit: $550

Resident non-profit: $350

Non-Resident for-profit: $1,050

Non-Resident non-profit: $800

Staffing (2 staff required): $25/per hour (3hr minimum)

Parking: $12/per hour per person

EXTRA FEES

Set-up $200

Clean-up $300

Sound $250

* each additional hour after 5 hours is $50/hour

SPLASH PAD $1.50/per person per day

children 1 year of age and under are free

TRAIN $1.50/per person per ride

children 1 year of age and under are free

CAROUSEL $1.50/per person per ride

children 12 months of age and under are

free

PUNCH CARDS

Punch Card of 12 $15.00

FAST PASS $5.00

SENIOR TRIPS Variable

YOUTH ATHLETICS $40 Residential

14

$60 Non- Residential

GYM RENTALS (KMS city schools)

• $30/ per hour Residential

• $40/per hour Non-Residential

CEMETERY FEES

• Transfer of burial rights within a family: $25.00

• Transfer of burial rights outside of immediate family members: $200.00/per plot

• Transfer of vacant plots to the City: No Charge

• Burial Fee (must be paid prior to burial): $150.00/per plot

• Security deposit to ensure marker (must be paid prior to burial): $250.00 (was $175)

Kannapolis Based Organization

(Resident)

Non-Kannapolis Based

Organization (Non-Resident)

Softball field without lights $10.00 per hour per field $15.00 per hour per field

Softball field with lights $20.00 per hour per field $30.00 per hour per field

*There will also be a $15.00 per field/per time that fields are lined and dragged.

Soccer field without lights $15.00 per hour per field $20.00 per hour per field

Soccer field with lights $26.00 per hour per field $35.00 per hour per field

Fields available for reservations:

Fence distance

Field size

Base distance

options

Pitching distance

options

Bakers Creek Park softball field (1

available)

285 ft 65’ 50’

Safrit Park softball fields (2 available)

1415 Bethpage Road

300 ft 60’, 65’, or 90’ 46’ or 54’

Safrit Park soccer field (1 available)

1415 Bethpage Road

225 x 360 N/A N/A

Kannapolis Middle School (baseball field)

1445 Oakwood Avenue

305 ft 90’ mound

Kannapolis Middle School (softball field)

1445 Oakwood Avenue

225 ft 65’

Kannapolis Middle School (football &

soccer field) 1445 Oakwood Avenue

Rainout Hotline & Program Information number: 704-920-4344

In cases of inclement weather, the Kannapolis Parks and Recreation Department reserves the right to

close any athletic field for safety or maintenance concerns. The hotline will be updated at 4:00 p.m. on

each questionable day. Please call the number above to see if your games are being played or not.

15

Rate Lining Turface Additional Fees Lights Deposit

$150/day per

field

one free lining

then $15/prep $12/bag

$75 gate, 100%

concession

$15/hr. per

field $100

Tournament Cancellations:

A tournament that is cancelled after 5:00 PM on Wednesday (non-weather related) will be charged $100 for

the first cancellation, $100 for a second cancellation and $100 for a third cancellation. Aside from the $100

cancellation fee, all remaining tournaments will be removed if the user has canceled a tournament for a

third time.

A tournament that is cancelled after 5:00 PM on Wednesday (weather-related) will be credited with the

rental fee for a future date. Please note all weather-related cancellation will be subject to approval.

If the tournament is cancelled by the Parks and Recreation department due to weather after it has begun, the

following format will be used to determine the amount of credit for future field rentals:

Less than ½ of the tournament has been played, 100% of remaining tournament fees will be credited

More than ½ of the tournament has been played, 50 % of remaining tournament fees will be credited

Kannapolis Based Organization

(Resident)

Non-Kannapolis Based

Organization (Non-Resident)

Tennis court $3.00 per hour per court $5.00 per hour per court

Tennis court lights $4.00 per hour $4.00 per hour

*Light fee covers all lights at tennis complex.

Special Event Fees

Police: The Special Events Committee, in consultation with the Kannapolis Police Department,

shall determine the number of police officers required to appropriately manage street closures and

for internal security, as well as the time when such services shall commence and end. Applicants

will be invoiced before the event at the rate of $35.00 per hour per police officer assigned to the

event. These fees are due one (1) week before the event.

Fire and EMS: The Special Events Committee, in consultation with the Kannapolis Fire

Department will determine the number of Emergency Medical Personnel required as well as the

time when such services shall commence and end. Applicants will be invoiced before the event at

the rate of $35.00 per hour per firefighter/EMS assigned to the event. These fees are due one (1)

week before the event.

Street Closure Equipment: The Special Events Committee, in consultation with the Kannapolis

Public Works Department, shall determine the need for traffic control equipment to appropriately

manage street closures. Applicants will be notified of the recommended controls. The applicant

may rent the equipment at the rate of $175.00 per event. These fees are due one (1) week before

the event.

Greenway Event Usage: For events held on a Kannapolis Parks and Recreation maintained

Greenway usage must be pre-approved by the Special Events Committee.

16

Insurance: If an event requires a street or sidewalk closure then Comprehensive General Public

Liability Insurance is required: $1, 000,000 per person per occurrence with a $2,000,000 aggregate

naming the City of Kannapolis as additionally insured. **Certificate should be specifically

worded: “The City of Kannapolis, its officers, employees, and agents are additionally insured”. If

alcohol is being served at the event, Liquor Liability is required to be included in the Certificate of

Insurance. Proof of insurance is required at least 30-days before the event.

Current Special Events Permit Fee Schedule: Fees for special events and neighborhood block

parties will utilize the below fee schedule.

Permit fees are non-refundable and are subject to change.

Parade, Walk, or Run: $125

Festival/Exhibition Shows:

Non-Profit without Sales $100

For- Profit Organizations $200

Neighborhood Block Parties: $50

Fees are not applicable if the event is contained to private property and requires no City

resources.

17

Water and Sewer Fees WATER

RATES

Inside

City

Outside

City

Individual Water Service: (less than 2 inch) (Note 1)

• Tier 1 per 1,000 gallons (0-7,000 gals)

• Tier 2 per 1,000 gallons (over 7,000 gals)

• Irrigation per 1,000 gallons

$ 6.80

$ 7.09

$ 7.09

$ 7.95

$ 8.30

$ 8.30

* Base monthly charge (Note 2) $ 6.95 $ 8.15

* monthly rate for unmetered service – residential only (Note 3) $ 47.60 $ 55.65

Private Water Systems (more than one user):




$ 6.80

$ 7.09

$ 7.09

$ 7.95

$ 8.30

$ 8.30

* base monthly charge per user as determined by number of

dwelling units or commercial spaces on site, occupied or vacant $ 6.95 $ 8.15

Commercial Water Service




*base monthly charge

$ 6.80

$ 6.80

$ 7.09

$ 6.95

$ 7.95

$ 7.95

$ 8.30

$ 8.15

Fire Line Service: (proposed incremental charge based on size

of line)

monthly service rate (4 inch or less) *no increase $ 47.60 $ 55.65

monthly service rate (6 inch) $16 increase $ 63.60 $ 71.65




SEWER

RATES

Inside

City

Outside

City

Individual Sewer Service:

* per 1,000 gallons water used $ 6.70 $ 6.70

* base monthly charge $ 3.80 $ 3.80

* monthly rate for unmetered service – residential only $ 46.90 $ 46.90

Private Sewer Systems (more than one user):

18

* per 1,000 gallons based on master meter $ 6.70 $ 6.70

* base monthly charge per user as determined by number

of dwelling units or commercial spaces on site, occupied

or vacant (Note 2) $ 3.80 $ 3.80

(Note 1) Water rates for customers with 2 inch meter or larger shall pay inside City rates.

(Note 2) All City customers will pay the base charge in addition to the per 1,000 gallon charge. Master metered

customers will pay the base charge times the number of units served in addition to the per 1,000 gallon charge.

Residential water customers using metered service for irrigation purposes only, shall not (during periods when

level II or higher water restrictions are in effect) be billed a minimum bill for zero (-0-) usage.

(Note 3) Unmetered service is based upon an average bill of 7,000 gallons usage within a given month.

WATER TAP AND

CONNECTION FEES

Inside

City

Outside

City

Individual Water Tap Fees:

* 3/4" service (installation by City) $ 1,300.00 * $ 1,300.00

*

* 1" service (installation by City) $ 1,500.00 * $ 1,500.00

*

* 1-1/2" service (installation by City) $ 1,800.00 * $ 1,800.00

*

* 2" service (installation by City) $ 2,100.00 * $ 2,100.00

*

* Larger than 2" (installation by customer or City) All Cost Borne

By Customer

All Cost Borne

By Customer

Fire Line Service Tap:

* All sizes (installation by the customer) All Cost Borne

By Customer

All Cost Borne

By Customer

Tap on of New Water Main to Existing:

* All sizes (installation by the customer) All Cost Borne

By Customer

All Cost Borne

By Customer

Individual Water connection fees: These fees were derived from meter factors as developed in the

American Water Works Association Standards Manual. (See Note A)

Water meter Size

* 3/4" service $ 1,350.00 $ 1,350.00

*1” service $ 3,000.00 $ 3,000.00

* 1-1/2” service $ 6,000.00 $ 6,000.00

* 2” service $ 9,600.00 $ 9,600.00

* 3” service $ 18,000.00 $ 18,000.00

19

* 4” service $ 30,000.00 $ 30,000.00

* 6” service $ 60,000.00 $ 60,000.00

* 8” service $ 96,000.00 $ 96,000.00

* 10" service $ 138,000.00 $ 138,000.00

(Note A) (1) Tap fee and connection fee shall be per lot or per unit to be served. Commercial Customers shall be all cost borne by

customer and the tap fee is waived.

(2) Master metered developments shall pay a connection fee for each lot or individual unit served or fee for meter size

whichever is greater.

(3) Connection fee due from residential developers shall be paid before issuance of the zoning clearance permit. (Tap fees

are waived where developer has installed water systems in accordance with City Ordinance.)

(4) Connection fee is due from commercial and industrial developers before zoning permits can be issued by the City.

(5) Connection fee for residential customers where a tap fee is also due shall be paid before tap is installed by the City.

(6) Residential and commercial developers who have preliminary plats approved by the City before December 18, 2000

shall be exempt from paying the connection fee.

(7) Commercial and industrial developers who are not required to obtain plat approval shall be exempt from paying the

connection fee if zoning permits have been issued by the City prior to December 18, 2000. (Manufactured home parks

and multi-family apartment complexes are included as commercial developers).

(8) All applicable fees must be paid before receiving City water service.

SEWER TAP AND

CONNECTION FEES

Inside

City

Outside

City

Individual Sewer Service Tap Fees:

* 4" service (installation by the City) $ 1,700.00

$ 1,700.00

(includes any size pumped by customer)

* 6" or larger or where utility encasement may be required All Cost

Borne

By Customer

All Cost

Borne

By Customer

(installation by customer or City)

Tap on of New Sewer Line to Existing:

* All sizes (installation by the customer)

All Cost

Borne

By Customer

All Cost

Borne

By Customer

Individual Sewer Connection Fees: These fees were derived from meter factors as developed in the American

Water Works Association Standards Manual. (See Note B)

Water meter Size

* 3/4" service $ 1,000.00 $ 1,000.00

*1” service $ 1,625.00 $ 1,625.00

* 1-1/2” service $ 3,250.00 $ 3,250.00

20

* 2” service $ 5,200.00 $ 5,200.00

* 3” service $ 9,750.00 $ 9,750.00

* 4” service $ 16,250.00 $ 16,250.00

* 6” service $ 32,500.00 $ 32,500.00

* 8” service $ 52,000.00 $ 52,000.00

* 10" service $ 74,750.00 $ 74,750.00

(Note B) (1) Tap fee and connection fee shall be per lot or per unit to be served. Commercial Customers shall be all cost borne by

customer and the tap fee is waived.

(2) Master metered developments shall pay a connection fee for each lot or individual unit served or fee for meter size

whichever is greater.

(3) Connection fee due from residential developers shall be paid before issuance of the zoning clearance permit. (Tap fees

are waived where developer has installed sewer systems in accordance with City Ordinance.)

(4) Connection fee is due from commercial and industrial developers at the time of application for service.

(5) Connection fee for residential customers where a tap fee is also due shall be paid before tap is installed by the City.

(6) Residential and commercial developers who have preliminary plats approved by the City before December 18, 2000

shall be exempt from paying the connection fee.

(7) Commercial and industrial developers who are not required to obtain plat approval shall be exempt from paying the

connection fee if zoning permits have been issued by the City prior to December 18, 2000. (Manufactured home parks

and multi-family apartment complexes are included as commercial developers).

(8) All applicable fees must be paid before receiving City sewer service.

SERVICE FEES AND DEPOSITS Inside City Outside City

Service Disconnect / Administrative Fee $ 30.00 $ 30.00

Service Deposit (Non-Property Owners)

$ 75.00

$ 225.00

$ 75.00

$ 225.00

* Water or sewer; water and sewer – secured

* Water or sewer; water and sewer – unsecured

Returned Payment Item $ 25.00

$ 25.00

* Each

HYDRANT METER FEES Inside City Outside City

Construction Hydrant Meter (refundable) $ 750.00 $ 750.00

Fire Hydrant Use Account (refundable) $ 250.00 $ 250.00

Annual Hydrant Use Permit Fee * Per vehicle $ 25.00 $ 25.00

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NORTHWEST CABARRUS SERVICE AREA

CAPITAL COST RECOVERY FEES

Water meter Size Water Sewer

* 3/4" service $ 450.00 $ 967.00

*1” service $ 1,125.00 $ 2,418.00

*1.5” service $ 2,250.00 $ 4,835.00

* 2” service $ 3,600.00 $ 7,736.00

* 3” service $ 6,750.00 $ 14,505.00

* 4” service $ 11,250.00 $ 24,175.00

* 6” service $ 22,500.00 $ 48,350.00

* 8” service $ 36,000.00 $ 77,360.00

* 10" service $ 51,750.00 $ 111,205.00

*The above fees are in addition to the normal capital cost recovery fees (also known as “connection fees”)

currently charged by the City of Kannapolis for service connection. In the case of new development, the

current fees are due at the time of zoning clearance permit issuance. Conversely, the capital cost recovery

fees described above for the Northwest Cabarrus Services Areas shall be paid in full to the City of

Kannapolis prior to obtaining individual zoning clearance permits. These fees may be modified by City

Council at any time without prior notification.

WATER & SEWER SYSTEM

ADMINISTRATIVE FEES

Non-payment administrative service disconnect fee $ 30.00

Re-connection Fee (after normal business hours) $100.00

Physical notification of non-payment bill $ 0.00

Unauthorized / illegal connection or re-connection $300.00

Locking Devices cut or damaged $300.00

Meter Yokes damaged $300.00

Tampering, altering, removing, or replacing meter $400.00

Water meter bypass $300.00

Re-read / No Error $ 50.00

Meter Test Fee $100.00

WATER & SEWER SYSTEM

ADMINISTRATIVE FEES

Repeat trip fee (starting with trip #3) $ 50.00

MUNICIPAL WATER AND SEWER RATES

City of Concord (Water and Sewer Services) Per Contract

City of Landis (Water Rate per 1,000 gallons) Per Contract

WATER AND SEWER SERVICE RELOCATION AND DAMAGE

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Any relocation of service and/or apparatus, adjustment of grade or elevation, and/or damage to

City equipment or infrastructure shall be performed at cost (All Cost Borne By Customer). This

will include the cost of labor, equipment, and materials.

Stormwater

STORMWATER RATE TIER SCHEDULE

Impervious Area Size (per Equivalent Residential Unit) Fee

Tier 1 – < 1,200 square feet $5.75

Tier 2 – 1,200 – 3,250 square feet $7.25

Tier 3 - > 3,250 square feet $8.75

Commercial – Per 3,250 square feet $7.25

Environmental

Residential Environmental Fees (per occupied dwelling) Fee

Recycling/ Solid Waste (doesn’t include proposed $2.50 fee increase) $15.60

Additional Trash Bin Fee $2.50

Additional Recycle Cart $2.50

Garbage Ordinance Violation $50.00

Commercial Environmental Fees

Container Size

(City Bulk

Pickup)

1X per Wk 2X per Wk 3X per Wk 4X per Wk 5X per Wk

4 Yd $49.37 $98.75 $148.12 $197.50 $246.87

6 Yd $74.45 $148.91 $223.35 $297.81 $372.27

8 Yd $99.39 $198.78 $298.17 $397.57 $496.97

Container Size

(Business)

1X per Wk 2X per Wk 3X per Wk 4X per Wk 5X per Wk

4 Yd $97.94 $185.64 $277.82 $371.23 $452.60

6 Yd $116.69 $223.54 $336.52 $449.53 $561.29

8 Yd $130.93 $261.85 $392.78 $523.69 $654.63

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Container Size

(Recycle)

1X per Wk

4 Yd $97.94

6 Yd $116.69

8 Yd $130.93

Event Space Rentals

• A $100.00 security deposit is required for all meetings

• A $250.00 security deposit for all parties, receptions, and banquets

Rate Table

RATES ARE PER HOUR Reservation

Deposit %

Business Hours

Rate

After Hours

Rate

Security Fee

Refundable

CITY HALL & POLICE HEADQUARTERS

Laureate Center – Section A 25 % $ 75 $ 85 $ 100 ‐ $ 250

Laureate Center – Section B 25 % $ 75 $ 85 $ 100 ‐ $ 250

Laureate Center – Section C 25 % $ 75 $ 85 $ 100 ‐ $ 250

Laureate Center – Section A & B 25 % $ 150 $ 175 $ 100 ‐ $ 250

Laureate Center – Section B & C 25 % $ 150 $ 175 $ 100 ‐ $ 250

Laureate Center – Section A, B, & C 25 % $ 200 $ 225 $ 100 ‐ $ 250

Kitchen 25 % $ 25 $ 35 $ 100 ‐ $ 250

Council Conference 25 % $ 50 $ 60 $ 100 ‐ $ 250

The Gallery* 25 % $ 25 $ 35 $ 100 ‐ $ 250

Shell Space 25 % $ 15 $ 20 $ 100 ‐ $ 250

Terrace – Section A** 25 % $ 20 $ 25 $ 100 ‐ $ 250

Terrace – Section B** 25 % $ 20 $ 25 $ 100 ‐ $ 250

Terrace – Sections A & B** 25 % $ 30 $ 40 $ 100 ‐ $ 250

ADDITIONAL FACILITIES

Cabarrus Bank Building 25 % $ 60 $ 65 $ 100 ‐ $ 250

Train Station – Conference A 25 % $ 55 $ 60 $ 100 ‐ $ 250

Village Park Multi‐Purpose 25 % $ 50 $ 55 $ 100 ‐ $ 250

Village Park Patio 25 % $ 15 $ 20 $ 100 ‐ $ 250

Public Works Training Room 25 % $ 45 n/a $ 100 ‐ $ 250

Veterans Park Gazebo 25 % $ 25 $ 30 $ 100 ‐ $ 250

Dale Earnhardt Plaza 25 % $ 20 $ 25 $ 100 ‐ $ 250

* Gallery areas cannot be rented unless space in the Laureate Center is rented.

** Outside Terrace Areas cannot be rented unless inside space is rented.

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• Extended Time Rental – 15% discount when any room or combinations of rooms

are rented for 12+ hours during a single booking

• Multi-Space Rentals – 20% discount when all first floor spaces at City Hall and

Police Headquarters are rented. (Includes: Laureate Center Sections A, B and C,

Kitchen, Council Conference Room, The Gallery, Shell Space and Terrance A and

B)

• Permanent Tenant Rate – 20% discount when any room or combinations of rooms

are rented monthly for a time span of two (2) or more hours each month and an

annual agreement with twelve (12) monthly meetings scheduled.

• Dance Floor: $450

• Stage: $50 per 3’x6’ section; ($450 for complete unit)

ORDINANCE AMENDING BUDGET FOR THE

CITY OF KANNAPOLIS, NORTH CAROLINA

FOR THE FISCAL YEAR BEGINNING JULY 1, 2021

AND ENDING JUNE 30, 2022

Amendment # 21-25

BE IT ORDAINED by the City Council of the City of Kannapolis, North Carolina meeting in open session this

12th day of July 2021, that the following amendment to the Budget Ordinance for the City of Kannapolis, North

Carolina for the Fiscal Year beginning July 1, 2021 and ending June 30, 2022 is hereby adopted:

SECTION I– GENERAL FUND

Revenues:

Increase – Appropriated Fund Balance

Revenue: 19900-39900 $563,400

Expenditure:

Increase – Transfer to Environmental Fund

Expenditure: 19000-57400 $563,400

SECTION II– ENVIRONMENTAL FUND

Revenues:

Increase – Transfers from General Fund

Revenue: 59000-39200 $563,400

Revenue:

Decrease – Charges and Fees

Revenue: 50000-36000 $563,400

This ordinance is approved and adopted this 12th day of July 2021.

_________________________

Milton D. Hinnant, Mayor

ATTEST:

___________________________

Bridgette Bell, MMC, NCCMC

City Clerk

City of Kannapolis


TO: Mayor and City Council FROM: Mike Legg, City ManagerTITLE Closed Session

A. Action Requested by City CouncilG.S. 143-318.11 (a) (3) to consult with an attorney in order to preserve the attorney clientprivilege; G.S. 143.318.11 (a) (4) for discussing matters relating to the location or expansion ofindustries or businesses in the area. (Mayor Pro tem Jackson)

B. Required Votes to Pass Required Action

C. Background

D. Fiscal Considerations

E. Policy Issues

F. Legal Issues

G. Alternative Courses of Action and Recommendation

