Morganton council approves storm-recovery contracts, budget amendments and $75,000 CDBG loan for Town Tap

The Morganton City Council on Feb. 3 approved a package of storm-recovery measures that included a $75,000 Community Development Block Grant (CDBG) small-business loan for Town Tap, contracts for underwater assessment at municipal water and wastewater facilities, and several budget amendments to fund Hurricane Helene restoration work.

Council members voted to enter into a $75,000 CDBG loan agreement with L and D Restaurant Group of Boone LLC (doing business as Town Tap) to support restoration of the restaurant at 315 Sanford Drive, a property damaged in the storm. City staff said the loan includes a requirement that the project create at least 10 jobs, with 51% of those positions held by low- to moderate-income workers. The motion passed after a second and the council voiced unanimous assent.

The council also approved a contract with Charles R. Underwood, Inc., for diving services to inspect and remove sediment from intake structures and submerged equipment at the city’s water treatment and wastewater treatment plants. The contract totals (not to exceed) $34,512.50 for the water plant and $39,933.50 for the wastewater plant. Public works staff described extensive sediment and debris that entered intake structures during the flood and said divers will assess impeller shafts, clear silt and inspect for abrasion damage before longer-term repairs proceed.

Council approved multiple storm-related budget amendments and project fund increases during the meeting. The city authorized appropriations of $120,000 from the cable/Compass fund and $250,000 from the electric fund for Helene-related expenditures; council later voted to increase the Helene project fund by $370,000 to continue ongoing recovery work. City staff said those appropriations cover replenishing supplies, assessing damaged transformers and additional restoration costs. Separately, the council approved accepting an insurance reimbursement of $144,449 for public safety vehicle and fire station damage.

City staff and council members also reported on silt-removal work in the Greenway and along the river. Staff said initial contracts for removal were increased as field conditions exceeded early estimates; crews have already moved roughly 1,200 tons of material and staff now estimate final quantities in the 2,000–2,500 ton range before completion. The council previously authorized staff to continue work under staff monitoring to avoid repeated return approvals.

Sally Sandy, the city manager, told the council that the water and wastewater projects are large, remain in assessment mode and are proceeding through FEMA grant processes. Brad Boris (staff member) described photos of submerged electrical panels and pumps, showing water lines marked by blue paint and heavy sediment in lower pump and intake areas. Boris said sediment abrasion on impellers can cause vibrations and further damage; the diving contract is intended to let contractors evaluate and remove sediment so staff can determine whether pumps need repair or replacement.

As part of broader recovery planning, staff said demolition bids for a boardwalk behind the River Village center will likely be brought to council in March; the city expects the demolition to require crane work and specialized contractors beyond in-house crews. Staff also reported that the first tenant in the affected shopping center is set to reopen the day after the meeting and that work continues to prepare other spaces for reopening.

The consent agenda, approved earlier in the meeting, included routine items: approval of minutes from prior meetings; appointment of Jessica Lohman as assistant city clerk; adoption of the 2025 downtown calendar of events and the enabling ordinance for temporary street closures needed for those events; and acceptance of a $500 donation from the Morganton High School Alumni Association. All consent items passed by voice vote.

Councilors completed other routine business: reappointing Reverend Thomas Bland to the Morganton Housing Authority (term to expire Feb. 1, 2030) and accepting county appointments to the Board of Adjustment. The meeting closed after council members offered thanks to staff and volunteers involved in recovery efforts.

The council’s actions on Feb. 3 were procedural approvals and funding authorizations; staff indicated additional, future council actions will be required as engineering assessments and FEMA processes advance.