Information Items:
Northwest Corridor Community Development Corporation (NWCCDC) Investigation Update
Staff Resource:
Stanley Watkins, Neighborhood Development, 704-336-3796, swatkins@ci.charlotte.nc.us
This is an update on the investigation of the Northwest Corridor Community Development Corporation (NWCCDC) in response to the allegations outlined in Mr. Guerdon Stuckey's January 5, 2009 letter to the Mayor and City Council.
As outlined in the letter, Neighborhood Development and the City Attorney's office are reviewing the following allegations made by Mr. Stuckey:
Allegation 1 – Financial Mismanagement - $764,349 in Loan Defaults
Allegation 2 – Conflict of Interest - $10,000 City Loans
Allegation 3 – Conflict of Interest - $40,000 Land Purchase Contract
Allegation 4 – Conflict of Interest – Former Executive Director & Treasurer
Allegation 5 – Conflict of Interest – Former Executive Director Contract with CDC
Allegation 6 – Fiscal Irresponsibility – Inflated Revenue Projections
We are also reviewing the issue of unpaid taxes owed by NWCCDC.
The investigation was formally initiated on February 3, 2009. As of February 10, 2009, City staff has:
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Researched and investigated each allegation outlined in Mr. Stuckey's letter to determine validity;
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Reviewed board and committee minutes for the years: 2005, 2006, 2007, 2008 and January and February 2009;
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Conducted extensive interview sessions with four of the current Board members; (Note: Each Board Member interviewed was asked specific questions regarding their knowledge of and/or involvement with each allegation.)
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Examined organizational, financial and real estate documents/records (including audit documents);
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Reviewed contracts and performance reports; and
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Arranged interviews with individuals at outside agencies who may have information pertinent to the investigation.
Over the next week, City staff will be:
- Conducting interviews with one former and two current Board members.
- Meeting with current NWCCDC staff and other individuals.
- Continuing to review requested documents and financial records.
- Examining outstanding and current tax liabilities.
- Preparing findings and recommendations.
A preliminary draft of the findings and recommendations is expected by February 20, 2009. Please note that the NWCCDC Board Members and staff have been very cooperative in answering questions and providing documents and other information in a timely manner.
A copy of a letter to Stanley Watkins from Douglas Jones, Chairman of the NWCCDC, in response to Mr. Stuckey's January 5, 2009, letter is attached.
U.S. National Whitewater Center
Staff Resource:
Ron Kimble, Deputy City Manager, 704-336-4169, rkimble@ci.charlotte.nc.us
The City has received the request letter for second year funding from the U. S. National Whitewater Center for $285,714. City staff is currently reviewing the independent auditor's report, which accompanied the request letter, for verification of the results of operations for year two. We have tentatively scheduled the Whitewater Center as an agenda item at the March 2, 2009 Council Workshop and have asked them to present a report on their current financial status and measures they have recently implemented, and will soon implement, to curtail future losses. Whitewater is also a scheduled item on the February 17, 2009 County Commission meeting agenda due to their $1 million second year request of the County.
Collaborative Group Seeks Funding for Biodiesel Pilot Project
Staff Resource:
Doug Bean, Charlotte-Mecklenburg Utilities, 704-391-5070, dbean@ci.charlotte.nc.us
Charlotte-Mecklenburg Utilities is leading a collaborative, regional group to develop a sustainable and multi-faceted pilot biodiesel production system at its McDowell Creek Wastewater Treatment Plant in Huntersville. The project involves partnerships with the Centralina Council of Governments through its Centralina Clean Fuels Coalition program, UNC Charlotte, Central Piedmont Community College, Appalachian State University and Catawba County Utilities and Engineering Department.
These entities collaborated on two recent grant proposals that seek funding for planning and design of the pilot. The North Carolina Green Business Fund proposal seeks $100,000 in funding, and the Biofuels Center of North Carolina proposal seeks $200,000. The goal of the pilot is to generate biodiesel from brown grease—"trap grease" in the wastewater system that currently goes to landfills—and rapeseed and sunflower crops. Our intent is to transform brown grease from a system liability to a commodity, while providing research and green workforce development opportunities for our region. We expect to learn the outcome of these grant proposals by late March.
Water Treatment Plants Achieve Special Recognition
Staff Resource:
Doug Bean, Charlotte-Mecklenburg Utilities, 704-391-5070, dbean@ci.charlotte.nc.us
All three Charlotte-Mecklenburg Utilities water treatment facilities have been recognized by NCDENR for successfully meeting the stringent requirements set forth by the Area Wide Optimization Plan (AWOP) for 2008. AWOP is a joint program between EPA and States that began in 1998, with North Carolina participating since 2000. NCDENR works cooperatively with water systems to use existing equipment and treatment processes to improve water quality. All three plants exceeded purity goals, and research indicates that our levels achieve a tenfold lower risk of a waterborne outbreak than at the current regulatory standards. These goals are quite challenging; only about 10 percent of the surface water treatment plants in the state are achieving these goals. Our three plants have been past recipients of this special recognition, though this marks the first time all have achieved it the same year.
Additionally, the Water Treatment Division is participating in the national Partnership for Safe Water program. This is a voluntary, cooperative effort among the EPA, the American Water Works Association and other drinking water organizations to enhance drinking water quality. The program uses preventative measures and optimized plant performance to increase protection against contamination in America's drinking water supply. Local utilities are recognized for their commitment to improving water quality without regulatory control, and this provides a venue for the exchange of expertise to other community water systems. CMU is completing Phase II of a four-phase process. This further demonstrates our dedication to providing the safest, highest quality drinking water possible by optimizing treatment technologies and implementing another measure of safety and prevention where regulations do not exist.
Monthly Project Update for the NASCAR Hall of Fame
Staff Resource:
Jim Schumacher, City Manager's Office, 704-336-3656, jschumacher@ci.charlotte.nc.us
Attached is the February 2009 edition of the Project Update newsletter for the NASCAR Hall of Fame. At Council's request, this document will be provided to City Council each month through completion of the project. It includes a table of expenditures to date, key milestones completed, and a look ahead at upcoming milestones.
