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Morganton council approves Hurricane Helene recovery contracts, Vine Arden waterline, CDBG loan and insurance allocations

2085328 · January 7, 2025
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Summary

At its Jan. 6 meeting the Morganton City Council approved multiple contracts and budget amendments to advance Hurricane Helene recovery, authorized a Vine Arden Road waterline upgrade with Western Piedmont Community College cost-sharing, approved a $75,000 CDBG loan for a downtown restaurant, and accepted a $2 million insurance cash advance.

MORGANTON, N.C. — The Morganton City Council on Jan. 6 approved a package of contracts, budget amendments and appointments intended to accelerate recovery from Hurricane Helene and to advance several infrastructure and economic development projects.

The actions, taken by voice vote and described by City Manager Sally Sandy as part of continuing Helene-related work, include contracts for park cleanup, additional design work on a wastewater pump station, a waterline upgrade shared with Western Piedmont Community College (WPCC), a small-business Community Development Block Grant (CDBG) loan, and acceptance and allocation of an insurance cash advance.

The council adopted each motion by voice vote with the meeting record stating “All in favor, say aye” for each item.

The most significant items voted on include:

- A contract award to Mobile Services Inc. of Morganton for up to $62,530 to demolish and remediate flood-damaged buildings (bathrooms, storage and similar structures) at Catawba Meadows, Shuey Park and the Catawba River Soccer Complex. The work is intended to be reimbursed through FEMA as part of the city’s disaster grant process. The motion to award the contract passed.

- Authorization of the Vine Arden Road 12-inch waterline project contract with Buckeye Bridge LLC of Canton, N.C., for a base bid of $703,741 and council approval of a $35,000 contingency to be managed by staff as needed. Western Piedmont Community College will reimburse the city for 80 percent of the project; the city’s share is 20 percent. The council also approved a budget amendment to accept WPCC’s reimbursement of $590,993 and approved a memorandum of understanding with WPCC enabling the project to proceed.

- Approval of additional design and permitting services for the Silver Creek pump station from High Fuel Infrastructure Engineering, P.C., not to exceed $122,800. The extra work is intended to raise and harden electrical service and other systems to increase flood resilience. The council approved a corresponding budget amendment authorizing the wastewater fund to transfer retained earnings of $122,800 to fund the redesign.

- Approval to enter into a $75,000 CDBG small-business loan agreement to assist the new restaurant (referred to in meeting materials as the Madness) at 133 West Union Street. Staff said the business expects to create at least 10 full-time jobs, six of which the applicant indicated would be filled by low- to moderate-income workers; the loan will be secured through standard loan-collateral procedures.

- Acceptance of a $2,000,000 cash advance from the North Carolina League of Municipalities Insurance Risk Pool toward storm-related facility claims. City staff proposed and the council approved distributing the advance among funds: $750,000 to the water fund, $750,000 to the wastewater fund and $500,000 to the general fund. Council members and staff noted any FEMA reimbursements later approved will reduce insurance recoverable amounts so the city will not receive duplicate recovery for the same costs.

- A budget amendment moving $500,000 from the electric fund to the Helene project fund to pay ongoing electric distribution restoration costs.

Other routine approvals included consent-agenda items (December 2 minutes, small tax releases totaling $138.82, a $21,000 reimbursement to the water fund for commercial taps, project closeout funding for the Greenway Connector project, and an easement with Duke Energy at 2232 Magnolia Place), reappointments to the Firemen’s Relief Fund Board (Mark Bradshaw and David Ferber through Jan. 15, 2027), and an appointment of Lewis P. Carswell to the Foothills Regional Airport Authority to complete a vacated term.

Why it matters: The votes move multiple repair and resilience projects from planning to contracting and provide near-term cash flow to pay for emergency repairs while the city pursues FEMA and insurance recoveries. The Vine Arden waterline project is a capital upgrade that county and college officials have said will serve educational and city needs; the CDBG loan is part of downtown economic-recovery efforts.

Votes at a glance (motions from the Jan. 6 meeting):

- Adopt resolution honoring Willard D. Lackey on his retirement — approved (voice vote). - Proclaim Jan. 20, 2025, Martin Luther King Day of Service — approved (voice vote). - Adopt resolution opposing changes to North Carolina Senate Bill 382 regarding local zoning authority — approved (voice vote). - Award contract to Mobile Services Inc., not to exceed $62,530, for park building demolition and remediation at Catawba Meadows, Shuey Park and Catawba River Soccer Complex — approved (voice vote). - Award Vine Arden Road 12-inch waterline contract to Buckeye Bridge LLC, base bid $703,741; approve $35,000 contingency; accept WPCC reimbursement of $590,993; approve MOU with WPCC — all approved (voice votes). - Contract with High Fuel Infrastructure Engineering, P.C., not to exceed $122,800 for Silver Creek pump station redesign; approve corresponding budget amendments — approved (voice votes). - Enter into $75,000 CDBG loan agreement for the Madness restaurant at 133 West Union Street — approved (voice vote). - Approve budget amendment to accept $2,000,000 insurance cash advance and appropriate funds across water, wastewater and general funds — approved (voice vote). - Approve budget amendment to appropriate $500,000 from the electric fund to the Helene project fund — approved (voice vote). - Reappoint Mark Bradshaw and David Ferber to Firemen’s Relief Fund Board — approved (voice vote). - Appoint Lewis P. Carswell to Foothills Regional Airport Authority to complete a term — approved (voice vote).

What council members said: Council discussion on these items was brief and procedural. City Manager Sally Sandy described the contracts and funding sources, noting the city will pursue FEMA reimbursement where appropriate and will not seek duplicate recovery for the same costs. Council members asked clarifying questions about which parts of projects were covered (for example, the cleanup contract covers damaged buildings, not sports fields) and about the public benefit of the Vine Arden waterline upsize, which staff said will improve service to the surrounding area as well as serve the college.

What’s next: Staff will execute contracts and proceed with procurement oversight, administer the CDBG loan through the city’s loan-review process, post related public information and links on the city website, and continue FEMA and insurance claims work.

Ending: The council adjourned after routine appointments and community recognitions. The city clerk recorded the approvals; staff said details and contract documents would be posted as they are finalized.