Commissioner's Minutes

February 12, 2002 Agenda
February 12, 2002 Minutes

ACTION AGENDA
REGULAR MEETING OF THE
EMERALD ISLE BOARD OF COMMISSIONERS
TUESDAY, FEBRUARY 12, 2002
7:00 PM – EMERALD ISLE TOWN HALL

Call to Order
Roll Call
Pledge of Allegiance
Adoption of Agenda
(Approved 5-0)
Consent Agenda
Approval of Minutes of Regular Meeting – January 8, 2002
Approval of Minutes of Special Meeting – January 14, 2002
Approval of Minutes of Special Meeting – January 25 and 28, 2002
Approval of Minutes of Special Meeting – January 28, 2002
Tax Refunds / Releases
Resolution Authorizing the Town Manager to Extend the Current Contract with Hadnot Creek Kennels
(Approved 5-0)

Public Comment

   6.1. Budget Amendment - Reduce General Fund Expenditures by $145,210.
           (Approved 5-0)
   6.2 Town Manager Participation in Beach Nourishment Bond Referendum Sessions
           (No Action)

Bogue Inlet / Pointe Erosion

Public Hearing on Proposed Amendment to the Boundaries of the Primary Benefit District to Include Properties at the Pointe and Removal of these Same Properties from the Secondary Benefit District
(No Action)
Resolution Amending the Boundaries of the Primary Benefit District to Include Properties at the Pointe and Remove these Same Properties from the Secondary Benefit District
( 3-2 Vote McElraft, Marks, Messer For / Farmer, Eckhardt Against)

Final Plat - Sunset Harbor Condominium Project – Building 4
(Unanimous Approval 5-0)
Ordinance Amending Chapter 2 (Administration of the Emerald Isle
Code of Ordinances

Adoption of “Rules of Procedures for Emerald Isle Town Council Meetings”
(Unanimous Approval 5-0)

Ordinance Amending Chapter 12 (Offenses and Miscellaneous Provisions) of
the Emerald Isle Code of Ordinances to Prohibit Shining for Deer
(Unanimous Approval 5-0)
FY 2002-2003 Budget Calendar
(Unanimous to accept 5-0)
Discussion – Use of Private Roads in New Subdivisions / Public & Private
Road Standards
(Refer to Planning Board -   3-2 Vote, Eckhardt, Farmer, Marks For / Messer, McElraft Against)
Resolution Authorizing the Town Manager to Execute the 2002 Street
Resurfacing Contract
(Unanimous Approval 5-0)
Comments from Town Clerk, Town Attorney, Town Manager
Comments from Town Board, Mayor
Adjourn

MINUTES OF REGULAR SCHEDULED MEETING
OF THE EMERALD ISLE BOARD OF COMMISSIONERS
FEBRUARY 12, 2002 – 7:00 P.M. – TOWN HALL Mayor Art Schools called the meeting to order at 7:00 P.M. Present were Mayor Schools, Commissioners McElraft, Eckhardt, Farmer, Marks and Messer. Staff members present were Town Clerk Carolyn Custy, Inspections Department Head Carol Angus, Public Works Director Robert Conrad and Police Chief Mark Wilson.

Following Roll Call, the Pledge of Allegiance was recited.

ADOPTION OF AGENDA

Resolution 02-12-02-0, General Fund Budget Amendment For the Fiscal Year Beginning July 1, 2001 and Ending June 30, 2002, was added to the Agenda as Item 6a. This Amendment is in response to the recent Governor’s Budget Issues.

Commissioner Farmer made a motion to approve the Agenda, seconded by Commissioner Marks and the Board voted unanimously with a vote of 5-0. Motion carried.

CONSENT AGENDA

a. Approval of Minutes of Regular Meeting – January 8, 2002

b. Approval of Minutes of Special Meeting – January 14, 2002

c. Approval of Minutes of Special Meeting – January 25 and 28, 2002

d. Approval of Minutes of Special Meeting – January 28, 2002

e. Tax Refunds / Releases

f. Resolution Authorizing the Town Manager to Extend the Current

Contract with Hadnot Creek Kennels

Commissioner Marks made a motion to approve the Consent Agenda which contained the above listed items, seconded by Commissioner McElraft and the Board voted with a vote of 5-0. Motion carried.

Mayor Schools asked that everyone who had general comments to please make them at this time. Public comments on specific agenda items would be allowed when a particular item is up for discussion.

PUBLIC COMMENT

Jim Slack, 402 Channel Drive, commented on one of our sister towns and their sidewalks. He encouraged the Board to follow Cedar Point’s agenda, as money will allow, and install sidewalks. Machinery is in the area from D.O.T. He felt it would enhance our Municipality greatly.

Mayor Schools informed Mr. Slack the Town has submitted a Grant Application to the Department of Transportation for sidewalks.

Charles Vinson, 7209 Ocean Drive, said that on March 5^th, the community is to have one of the most important votes to ever face the Town and it affects the future of the Town. Two “sister” communities, who held similar referendums, both held town sponsored forums in order to present the issues to their citizens. Since the Town Officials of Emerald Isle have not seen fit to provide such a forum, some private citizens have organized one to be held at Town Hall on February 26^th for the purpose of providing information to all interested voters. Mr. Vinson urged each board member to attend and commented that Mr. Frank Rush, Town Manager, is probably as well informed on this matter as anyone in the Town. Mr. Vinson asked, that for the benefit of the citizens, the Board request that Mr. Rush attend this forum, not for the purpose of prejudice or choosing sides, but for offering information for those who choose to seek it.

Mr. Vinson noted there is no doubt about how votes will be cast on March 5^th. As individuals everyone has the right to vote in secret as he or she wishes. However, it is felt that citizens deserve to hear the reasons that each Board member has in supporting or not supporting the Bond issue. Mr. Vinson made a request that Mayor Schools poll the Board as to their positions and reasoning’s on this matter.

Mayor Schools said if any Commissioner wanted to comment on where they stand, neutral, pro or con, they could.

Commissioner McElraft said she is not neutral on beach nourishment. She feels, as a Town Commissioner, it is very important that the economy of this town and the tax base be kept in tact and important that the beaches are restored, not just to save property but to save turtle habitats, to hopefully save the Pointe. She said these are the reasons she is for beach nourishment. Commissioner McElraft related she has an ocean front house where she does not need any sand right now and will probably get only a minimal amount of sand, but her neighbors on 1st through 30^th Streets do, neighbors at the Pointe do and this is why she is for beach nourishment.

Commissioner McElraft made a motion to add to the agenda that the Board direct Mr. Rush to attend the forum scheduled for February 26, not with any bias but with just the facts. Mr. Rush is the most knowledgeable person in Emerald Isle and in the County on beach nourishment, not with an opinion on whether beach nourishment is the right thing to do, etc., but just to give the facts.

Mayor Schools asked that she wait until all public comments had been heard to make her motion.

Thomas Smith, 10545 Wyndtree Drive, related to incidents he has witnessed where the primary dunes have been cut through like hot butter, steps he has lost and part of his walkway. When he bought his lot it was75 feet wide and 350 feet deep. He restored the walkway and stairs, started planting grass and placed sand fences. Nothing really happened until 1991 when the inland waterway was dredged and the last part of the sand was placed at 10543. Now, all of his fences are covered, steps are missing and his lot is about 850 feet deep. You cannot replace houses when septic tanks are gone. It may not necessarily claim houses but if the septic tank areas are spoiled, you cannot replace them. Mr. Smith related to the fact that when the dredge runs through the inlet and pumps out a foot of sand, there is a foot of sand that comes from somewhere else and fills the holes. Mr. Smith related to an old saying by his dad and said he hopes we are making “chicken salad”.

Jim Bair, 108 Bogue Inlet Court, emphasized some of the compelling things to correct the inlet situation. Safety was first. He commented on how the dredging was done, weaving back and forth, pumping sand. His thoughts on this were there should be a clear straight shot at the dredging. They would not be creating an enormous channel and it would save some property. He related to the problems emergency vehicles and EMS have getting out on the beach to help those in need. There is a need to think very seriously about the situation at the point.

Jim Heatherly, 8212 Woodcliffe drive, said he is confused about the numbers presented for beach nourishment. He presented numbers that he had taken from several preliminary projections.

Mr. Heatherly went on to say, as stated in the Fact Sheet, that the $ .03 and $.48 tax for special districts are not fixed, that it will be established when the Board goes to the budget meeting in June of each year. He stated he thinks Emerald Isle is being a little “Enronized”. The cost of beach nourishment has gone up, the scope is being changed and adding to it and saying that the cost will be within the original Bond Issue. He commented he has been to the Pointe, looked at the property and some of the people there have problems. He requested that the Town publish, in the newspaper, in a permanent place, the true cost of what the beach nourishment is going to be. He noted the insurance may be needed but asked that the facts be gotten out in front of the public, in one place, in one set of numbers, in a permanent way and not wait until the 26^th of February to do it. That is too late. He wants people to vote on what they are going to get and they don’t want to come back after the vote and say if contingencies come up, we didn’t know. He asked that all the facts be gotten out to all of the people so when they do vote they know what they are voting for. He noted his vote is going to be “No”.

Mayor Schools stated that he did not agree with the figures that Mr. Heatherly presented. He stated that the Island Review is coming out next week and the Fact Sheet that has been referred will be in there. The fact sheet is on the Website and will be available to all voters. The Board thinks all facts in the Fact Sheet are accurate. If anyone has any questions, they can meet with any Board member, Mr. Rush or Mayor Schools to go over it.

Harry Thompson, 1603 Ocean Drive, thinks Mr. Heatherly’s concerns are a good reason for having Mr. Rush answering questions that come up. Mr. Rush has the facts. He has all the numbers. He has them all together. Mr. Rush needs to be at the forum so he can answer the questions as they come up. Mr. Rush was invited to attend the forum.

There being no further public comments, the Public Comment period was closed.

Attorney Taylor reminded Mayor Schools that a motion is on the floor that is waiting for a second and voting and it is proper to proceed with that.

Commissioner McElraft made a motion to add an item to the agenda to make a motion that Frank Rush, Town Manager, who has all the facts and figures, be available to the citizens in a public forum or any place else if he can possibly be there, to give just the facts, no opinions.

The motion was seconded by Commissioner Messer and the Board voted unanimously with a vote of 5-0. Motion carried.

Mayor Schools added the item to the Agenda as 6b.

RESOLUTION 02-12-02-01 GENERAL FUND BUDGET AMENDMENT FOR FISCAL YEAR BEGINNING 1 JULY 2001 AND ENDING 30 JUNE 2002.

Mr. Rush told the Board that he had requested that the Department Heads go through their budget and identify potential cuts of 10%. This was in response to the workshop that was held a couple of weeks ago where it was indicated that budget cuts would be necessary this fiscal year as well as next fiscal year. The State has already indicated some additional withholding of reimbursements to the towns. In response to that action, the town has identified a total of $145,210 as budget reductions that is included in the Resolution presented for approval. These would basically make up for the loss of Franchise Tax, and Beer and Wine Tax Revenues and would allow contribution back to the Fund Balance. Cuts were made from a wide range of budget line items ranging from Capital Items, part-time salaries, etc. The one significant cut included was the elimination of a transfer to a fund for a new fire truck, which amounted to $50,000.

Commissioner Eckhardt made a motion to approve Resolution 02-12-02-01 General Fund Budget Amendment, seconded by Commissioner Marks and the board voted unanimously with a vote of 5-0. Motion carried.

RESOLUTION 02-12-02-02 FIRE EQUIPMENT FUND BUDGET AMENDMENT FOR THE FISCAL YEAR BEGINNING JULY 1, 2001 AND ENDING JUNE 30, 2002.

Commissioner Messer made a motion to approval Resolution 02-12-02-02 Fire Equipment Fund Budget Amendment for $50,000, seconded by Commissioner McElraft and the board voted unanimously with a vote of 5-0. Motion carried.

Commissioner McElraft made a motion that the Town Board direct Mr. Rush to attend the forum on February 26, 2002 for information on beach nourishment, the Town of Emerald Isle’s project, since he is the person has more facts and figures than anyone, not to give opinions, not to be on one side or the other, but just to give facts. He should be available for any other group that might like to have their own special forum if he so desires to do it. Commissioner Messer seconded the motion.

Commissioner Eckhardt commented he would like to leave this up to Mr. Rush. He did not feel the Board should be directing him. He should make up his own mind as far as what forum, rally or whatever it is called. That is up to him as far as Commissioner Eckhardt is concerned. Commissioner Eckhardt does not support the motion.

Commissioner Farmer said she wishes the board had planned an informational forum. What is being advertised February 26^th as a Community Forum or educational forum is actually a pro-renourishment meeting. That is fine because there is nothing wrong with that. What she objects to is the way it is being sold. Four of the six speakers are either ocean front property owners or are employed in business that fosters beach renourishment. Commissioner Farmer’s concern was having Mr. Rush also on the Agenda gives the appearance of a town sponsorship to this. The town is not sponsoring it. Commissioner Farmer has no problem with pro-renourishment rallys but she does have problems with them being sold as “just the facts”.

Commissioner McElraft said there are six panelists on the information forum. Since the town elected not to have a forum, there are some pro people putting this together. She went on to say they are trying to make this as fair as possible. Dr. John Wells, whom she is sure Commissioner Farmer would not have a problem with since she asked him to sample the sand that is being pumped to Pine Knoll Shores and Indian Beach. The Coastal Federation was called and asked that they bring anyone they pleased. Dr. Kana is on the panel. He makes his living in coastal engineering; he is the one who knows the most about this project, about how much sand is going on the beach, about the Point issue, how much dredging would be done there to provide the sand. He is an important factor to have on the forum. It would be nice to have Mr. Rush there but if he can’t, there will be a property owner from Pine Knoll Shores there, who is very well known in speaking on the economics of beach nourishment. He is UNC Chapel Hill Economics Professor Dr. Dick Levin. Buck Fugate, Mayor of Indian Beach will be on the panel. His purpose will be to relate to the problems Indian Beach has had with nourishment, what kind of turtle problems, the permitting system, and agencies they have had to deal with and other things. Citizens of Emerald Isle deserve to have the facts from the Town Manager. Commissioner McElraft said this was her opinion.

Commissioner Farmer added that the board had never discussed whether it should be having a forum on beach nourishment, and that she had not asked Dr. Wells to perform tests on the sand..

Mayor Schools called for a vote. Voting for Commissioner’s McElrafts motion was Commissioner Messer and Commissioner McElraft. Voting against the motion were Commissioners Eckhardt, Farmer and Marks. Motion denied.

Commissioner McElraft asked if it was OK for Mr. Rush to make up his own mind with no pressure from any board member? She asked if all the board members would agree to let him make up his own mind? Commissioner Farmer agreed. That puts him in a very uncomfortable position. Commissioner McElraft said she thinks he has already been put in an uncomfortable position. Someone noted from the audience that he thinks he is in one now. Commissioner McElraft stated that the uncomfortable position started long before tonight.

Mayor Schools said the next few weeks would be tough for everyone, since there are many strong opinions on both sides of the beach nourishment issue. He encouraged everyone to make their comments in a respectful manner.

BOGUE INLET/POINTE EROSION

A public hearing was held to receive public comments on a possible amendment to the boundaries of the Primary Benefit district. The proposed amendment would add 13 properties on Bogue Court to the Primary Benefit district and remove these same properties from the Secondary Benefit district. A Resolution of Intent to Amend the "Boundaries of the Primary Benefit Ocean Front Tax District" was made at the January board meeting. A public hearing has been scheduled to be held at this meeting to allow people who will be affected in that area to speak on this matter.

a. Primary Benefit District to Include Properties at the Pointe and

Removal of these Same Properties from the Secondary Benefit District

Commissioner Messer made a motion to open the public hearing, seconded by Commissioner McElraft and the board voted unanimously, with a vote of 5-0. Motion carried.

Mr. John Kilgore, 105 Bogue Court, stated he is in favor of being included in the primary tax district. He said, “If you are going to move the Inlet, you can double our taxes”. He presented a Petition signed by 7 registered voters on the Point. He says he does not know of anyone who would argue with it when they are in a situation of not just trying to renourish a beach but trying to protect their homes. He has personally spent over $25,000putting sandbags in front of his house and is in the process of having to pay more. He can understand why people are upset about the increase in their taxes. His house may wash away even after he has spent all that money. What he does not understand is that Emerald Isle is a very small community where everybody pretty much knows everybody; they live in this community because they like the size of this community and the situation is close to dividing the community. Two great resources here are the people who live here and the beach. Mr. Kilgore feels we need to fix our beach and we have to protect the tax base. The communities’ help is needed to fix the beach. People who are against renourishing the beach are going to come to the board one day with a problem and ask for help in fixing it. He asked for the other residents help in this issue. He also noted that “it is not me,me,me, it’s us”. He thinks it would be terrible if people were not willing to help each other. He hopes that when they go to vote, they will think of “us” not “me”.

Mr. George Kuhorn, 7223 Canal Drive, stated he is not one of the rich people. He has a vision of this town because people know him and he is around a lot. He is 100% in favor of moving the channel. That has to be fixed and fixed as soon as possible. His problem is that people in the town cannot get to the beach. There are some roads that have “No Parking” signs posted. You can park on the street where he lives day and night. He asked why? His feelings are those residents do not want him down in their private area, they do not want him by the beach. He noted he is getting older and he will not be able to get to the beach in time. He likes to fish the Point but he cannot fish there because there is “No Parking” everywhere he goes. Mr. Kuhorn thinks he is in trouble too. He wants to enjoy the beach. He will be more than happy to pay the taxes that are put on him but if others want help from him, he wants help from them. He will vote their way if they want to give him a break and swap out a little. The big parking areas cannot be gotten into because they are always full and he helped pay for them.

Mr. Jim Slack, 402 Channel Drive, noted something he has not heard come up. He presented a hypothetical situation – if along the whole Bogue banks, Bear Island, the whole deal, there was marsh far out, if Bogue Sound was nothing but a marsh, he asked how many would have come to Emerald Isle? He has to believe that most would not have come. Some want utopia. Emerald Isle is not utopia. Some of the attitude he sees is like a sinking ship where a fellow says “pull up the ladder boys, I am in the life boat”. “Here you are, people who want to serve this community, who have already made up your mind what it is going to be”. He asked the board if that was what they were appointed for? He said, “You stood up here to address the issues of the community”. He asked if he was wrong?

Mayor Schools said the issue that the public hearing is being held on is "whether to put the 13 properties in the primary tax district".

Mr. Slack noted he understands that but as he read it, maybe he is wrong, that vote has already been made in the minds of some of the council.

Mayor Schools reminded Mr. Slack he needed to talk to the board and not to the audience and emphasized that the issue being talked about is the primary benefit tax district itself, whether to include the 13 additional properties and remove them from the secondary benefit tax district.

Mr. Slack made a note that people on the sound may have a problem like this in the future and need some help. Beach nourishment now will probably not affect him right now one way or the other but it could. He said he would hope that the individuals who are looking at this would seriously consider in their heart every avenue of it and consider including these properties in the primary benefit tax region. It is easier to stand up and talk about it than it is sitting on the council seats.

Mrs. Nell Johnson, 119 Bogue Court, said she has been at the Point since the 1970’s. She has seen the Inlet curve and weave and houses come and go. She is encouraged by the thought of beach renourishment there. She said there were two irregularities that bother her. (1) She does not know how you can make a vote to include Bogue Court when it seems to her that the vital information that would determine if that is even a valid opportunity or not is not available now nor will it be available for some yet. (2) The map that has the orange blocks (attached at the end of these minutes), if this primary service benefit is a title, then it is consistent with the green district but if it is truly supposed to be representative of the properties that are at risk, then it does not encompass nearly the opportunities that you have or the reality of who is at risk at the Point.

Mr. Ricky Farrington, 8802 Soundview Court, commented, in reference to the $ .48 vs $ .03 tax, the value on his home has decreased 5% in the last two years. He had his home re-appraised. It is very disturbing because most of those who own homes in Emerald Isle hold these as their biggest asset on financial statements. He said the $ .48/$ .03 is not fair. Fair, in his opinion, would be an equal number for everyone. He noted that residents have been taxed $ .02 for the last two years, to help out neighbors on Coast Guard Road with storm water problems. He lives on the sound. He does not live on the ocean. He does not live on Coast Guard Road so he does not have a storm water problem. He is paying that tax and is not complaining about it because he wants to help his neighbors. He noted that 75% of the people who pay taxes in Emerald Isle can’t vote here. He feels if there are a few people who live on the ocean who bought long ago and cannot afford the $ .48, he would appreciate getting a committee to help those very few people because the brunt of the money will be coming from people who do not live in Emerald Isle. He thinks the $ .48 was what the ocean front people thought would be reasonable that they might could get this thing accepted at. It is not fair for the people on the ocean. The ocean belongs to everyone.

Mayor Schools interjected he does not disagree with Mr. Farrington’s comments but he emphasized that we talking about 13 properties that would be moved to the primary benefit service district.

Mr. Farrington said he does not think it is fair but he thinks we should do everything to help our neighbors in Emerald Isle because “we all live here and will continue to live here”.

Commissioner McElraft made a motion to close the public hearing, seconded by Commissioner Eckhardt.

Commissioner McElraft asked if 116 Bogue Court is not included in the properties and Mr. Rush answered that was correct. The property is directly at the end of the cul-de-sac of Bogue Court. Mr. Rush said if it is the board’s determination it needs to be included, that could be done. When the boundaries were first drawn it included water front properties. That one, in Mr. Rush’s judgment was not directly on the water. If the board wishes to include this property, an amendment should be made to include it. Mr. Rush noted it was a judgment call at the time of preparation. Mr. Rush said notification of this property would have to be done as well as advertising for a public hearing to include this property as well.

Attorney Taylor said the Statutes requires that the Clerk, or whoever was appointed to do the mailing of notices, inform the board that they did what they were suppose to do under the Statutes. Town Clerk Carolyn Custy stated she did mail notification to all who are in the orange section.

Mayor Schools asked Attorney Taylor if a motion is in order to add that property now?

Attorney Taylor indicated the board should act on the 13 properties as stated in the hearing notice, and have a separate public hearing for 116 Bogue Court.

Attorney Taylor went on to say there is some confusion in the Statute. It says if you have a bond referendum associated with a service district that you must have all of the voters within the district vote by a majority that they want to be included in the service district for the bond. That is they vote for the bond based on them knowing what they are going to be paying taxes on.

Attorney Taylor’s concern was before a consult was had with the bond council, problems may have been caused for the bond referendum and he did not want that to happen. He suggested this to be put on the agenda tonight to take care of that. He said that he and bond council agree that the best path is letting those folks that may be paying $ .48 in tax know before they vote on the bond issue. If the bond referendum does not pass, no one will be paying anything. This way they know what they are getting into. It is not in Attorney Taylor and bond council’s opinion legally necessary. Attorney Taylor said there has been a lot of publicity about whether they are or not going to be in the higher district, and they probably know that they are going to be in the $ .48 district if there is a way to make it work out. He also said that a service district must reflect a “service”. If nothing can be done for them, you cannot include them and you cannot tax them. That is clear in the Statutes. You can put them in and take them out later or you can put them in later when you know that you can put them in the district. It is entirely up to the board.

b. Resolution Amending the Boundaries of the Primary Benefit District to

Include Properties at the Pointe and Remove these Same Properties from

the Secondary Benefit District

Commissioner McElraft made a motion to adopt a Resolution Amending the Boundaries of the Primary Benefit District to include the 13 properties at the Pointe and remove these same properties from the Secondary Benefit District. Commissioner Messer seconded the motion.

Commissioner Marks said the original beach nourishment vote was on nourishing the beach. CSE came up with the proposal that sand could be taken from the Inlet in the process of moving the inlet and use that as part of the sand source to nourish the western portions of beach nourishment. All of this is contingent upon an Environmental Impact Study that says we can use this sand. It is her understanding that the March 5^th vote says we approve bonds to nourish the beach. After that vote, if that vote is for nourishing the beach, then we will allow an Environmental Impact Study to be done that will tell us whether or not the sand in the channel can be used. Everything hinges on the March vote. She had the understanding that when this started the board said they did not want to include the people on Bogue Court at this time because an Environmental Impact Study has not been done. She was concerned about promising something that they could not necessarily complete. Until there is a beach nourishment project test, they would not be included in anything including moving of the channel. This is not something that will happen right now. If the nourishment happens, the only portion of the town that is going to be nourished is the eastern end. That is the only thing permission has been given to do.

Commissioner Farmer remarked that the town has a permit that allows us to do the eastern and western regions of Emerald Isle. The EIS has been done. A permit was granted. We have no permit allowing us to do anything with the inlet at all. The areas where we can get sand according to the permit are offshore in the ocean. Before we can do anything with the inlet at all we have to go through an Environmental Impact Study. That is a year long process. It is not a quick process. Happily or unhappily for the people at the Point, we have the time because the Point would not have anything done to it, the channel would not be moved until 2003-2004. I hate to be putting people on Bogue Court into this primary benefit district now before we know if whether we can even use the Inlet as a borrow area for re-nourishing the western reach is premature. However, we did promise at the last Board meeting, we committed to doing the EIS on the channel, which I think was about $180,000, we did commit to going ahead, if the referendum passes, and getting that EIS underway. That will tell us if there is enough sand where we are going to be putting the channel, which will be moved 3,000 yards away from the Point.

Commissioner Farmer remarked the EIS would tell what is to be found in the channel. If there is good beach quality sand and not muck, where the new channel will be, then it can be used to renourish the western reach of the project. Unfortunately, if it turns out there is not enough good quality beach sand in there; we cannot afford to move the channel. Without using it as a borrow source for the western portion of the renourishment project, it will cost an additional $6,000,000 to move the channel. There is a need to be able to use what is dredged from the channel to renourish the western portion. Until it is known if that can be done or not, Commissioner Farmer doesn’t feel someone should be put into a higher tax bracket.

Mayor Schools said the point of the whole discussion is that whichever way this comes out, if the bond referendum passes, the EIS will be done. This is to him the most critical part.

Commissioner McElraft asked if the permit that has been done is for the eastern end? Mr. Rush said the town has a permit for the entire 9.7 miles of beach in Emerald Isle but it is permitted for the sand to come from an off-shore borrow. If the board decides not to incorporate the point or if the EIS is not favorable, then the sand for the western part of Emerald Isle will be from an offshore borrow area. If the Point is incorporated, then the sand will be taken from Bogue Inlet for the western part of town, the sand for the eastern part of town will still come from the offshore borrow area.

Commissioner McElraft commented she knows that after several borings, the sand looks very compatible according to Dr. Tim Kana. I hope that we, with the Resolution that was passed, for those who were not here the last Board meeting, there was a Resolution of Intent to include that in the nourishment, the current nourishment project, if the Environmental Impact Statement proves to be compatible. She addressed Attorney Taylor; saying when she looks at his notes that say it is easier to take someone out of a tax district than to put them in. Her concern for the seven voters who are the only registered voters of the 13 properties, who presented the Petition tonight, that we don’t give them the right back. What if in the end, we do, hopefully it will happen, we can fix the Point for free when we nourish the western end of the beach if the referendum happens, and then go back and charge those people. The Town Attorney and bond attorney both have said that it would be easier to take someone out the $ .48 tax district and put them in a $ .03 than it would be to do the reverse. Those seven residents have already requested to be put in the $ .48 so she does not understand why the board would not do that.

Commissioner McElraft asked if this has to happen in this district, how is that going to come out? Are they actually part of the district and they help the vote?

Attorney Taylor said we have a Statute and no case law. What we are having to do is go on instinct here and in discussing the matter through Mr. Rush with the Bond Council, the interpretation most attorneys seem to have on this is they are both going to be in a district and this wording is general enough that they will be voting. The $.03 district and the $.48 district is not looked at, we look at all districts and the majority of vote of all districts have to pass it regardless of which one of the specific districts they are in. This is the interpretation of bond council. He said that in tallying the vote, they do not look at a $ .48 district and a $ .03 district. They look at all districts and the majority voters of all districts have to pass it regardless of which one of the specific districts they are in. That is the interpretation of the bond council. It will not matter which specific district they are in

Commissioner McElraft said she was under the impression that it had to be passed in each district. Attorney Taylor said that was his original interpretation but he was convinced to the contrary. Commissioner McElraft said she thinks this is the fair way to do this and the legal way to do it but she was under the impression that there was a choice and someone decided it would go into two tax districts and it had to pass separately.

Mr. Rush said back in July and September, he went on the impression that it would have to pass in each district separately. There is probably a case to be made that it really needs to be passed in the combination of the two districts but the combination of the two districts is the whole town and really does not tell you anything. It was made very clear in the beginning that it had to pass in both districts separately. He added that Pine Knoll Shores and Indian Beach was under the same threshold of passing in each district. He still stands by that method.

Commissioner McElraft feels the board will have put itself in jeopardy if the position is taken to have it pass in two different districts, then putting these people in one district or the other is very important. Attorney Taylor commented that is why he made the initial concept. He would rather see the people that are going to be paying $ .48 placed into the district for determining voting of the bond. He has never had a case yet that he has had to take to court when someone’s taxes were decreased by

$ .45. He has had many opportunities to defend increases in taxes by $ .45. Attorney Taylor stated he believes the board is free, under the law, to act in either direction. There are reasons for both. Attorney Taylor understands both situations but it is up to the board to make the decision.

Commissioner McElraft suggested opening it up as the whole town and asked if it could be changed at this point? Mr. Rush indicated it could be done but his feelings are it would be subject to a legal challenge since there is no case law.

Commissioner McElraft said she thinks there is a problem. She said if we have two different tax districts and these people need to be put into the tax district they possibly will have to pay more money in, then they should feel the vote in their pocketbooks. Attorney Taylor said what would be done for the vote count it whatever district they are in they will be accounted in that district for the majority. Commissioner McElraft asked what if they are in the other district? That is not fair. Attorney Taylor said they are going to vote in whatever district you have them in at the time the referendum comes up for a vote. Commissioner McElraft said she would like to see it opened up for the whole town and asked if it could be changed at this point?

Mr. Rush said you certainly could change that but I think you are subject to a legal challenge because as Attorney Taylor mentioned, there is no case law. The initial determination was made to act separately. That is the safe way. But the bond attorney felt like there was a case to be made by having it pass on combining two districts, doesn’t really tell you anything. That is the whole town.

Commissioner McElraft said she thinks there is a problem. She thinks if the people is put in the $ .48 tax district and they vote $ .48 then that could sway the bond one way or the other. If they are put in the $ .03, that could also jeopardize if they have to pay $ .48 and they didn’t get to vote for $ .48.

Commissioner Marks said on March 5^th, if the referendum passes, we can start nourishing next year on the eastern end of town. We can start the EIS. We do not know how that EIS is going to come out. When do we start collecting taxes at that rate? And if so, we don’t know any studies that say yes or no they can be included in this, are we going to start collecting on them if we put them in the district? Mr. Rush related according to the financial plan that has been put into place, taxes would be levied in September of this year and would be included in next years budget. Commissioner Marks said “so, we put them in a $ .48 district now, they will start in September when we don’t have an EIS yet? Commissioner Marks has a problem with this because the Environmental Impact Study will not have been completed.

Commissioner Farmer said since the seven registered voters at the Point have presented a Petition, she does not feel it would be a surprise to them if later the results of the EIS and it is favorable, that they would be bumped into a higher rate. She feels by putting them in a higher district now, it would be assuring them something is being done that it is not known if it can be done. She is not comfortable at all with this arrangement.

Commissioner Eckhardt commented based on what has been heard tonight, he thinks the board has gone along with the property owners at the Point to say that once the EIS has been completed and is favorable, based on the fact that the bond referendum is passed, we are going to go ahead with it. He thinks the town is getting ahead of themselves if they are committing to, in other words, going to be doing this. He thinks enough lip service has been given to the people at the Point already. He does not think they need to be given anymore. He indicated he would favor holding off until the EIS. Once the bond referendum is passed, if it does pass, the town will then immediately spend $180,000on an EIS, and let the EIS decide if these people will be put into this district.

Commissioner Messer commented that these people have asked to be put into the higher district and when he made the motion on the same issue, after Mr. Isenhour spoke for the people at the Point, it is easier to be taken out than it is to be put back in. These people have asked to be put in so they can express their view at the referendum and he supports that.

Commissioner Farmer agrees with Commissioner McElraft that the board does not want it to look like they are putting someone into a $ .03 tax district only to have the EIS come back favorably and then say “guess what we have changed the table on you”. She asked Attorney Taylor if there was someway to get some type of notice to them that they are currently in the $ .03 tax district but they might in fact be put into the $ .48? Attorney Taylor said at the meeting tonight and everything that has led up to this meeting tonight has done so but it is not the statutory official notice which would require mailing to them, another public hearing, etc. These are the kind of things that are going to have to be done. Mr. Rush and he had a little off-line discussion a minute ago about whether or not we would have to have a public hearing for the other folks who came here and spoke tonight already. There is some period in time where new facts might require you to have another public hearing for the 13 properties as well as 116 Bogue Court in the future. He suggested for purposes of being careful, if you have it for one, have it for all of them.

Commissioner Farmer asked about sending a registered or certified letter to these 13 property owners that may be in the $ .48 district saying you are currently in a $ .03 district. If the referendum passes, and the EIS that would have to be done and are favorable, the intention is to move the channel at which time you would be put into higher tax district. That way we would be sure that people understand.

Attorney Taylor said that could be done. Obviously the board is not making a commitment to do that, you are just expressing your intention.

Commissioner Farmer is not comfortable telling people something is going to be done without knowing if it is indeed going to be done. She feels the information needed to make that move is not available at this time.

Commissioner Messer noted that the seven people who have signed a petition, that are willing to levy a tax upon themselves, would understand what the consequences are.

Commissioner McElraft asked if the EIS results were not positive, would they get a refund. Attorney Taylor said he would bet that if the people who live at the Point did not get some benefit from the program they would demand a refund. He also noted there is no real precedence. He does not have any real answers. He can only give opinions. He believes the taxes could be refunded and would probably be required to do so under special use district.

Commissioner McElraft said she really thinks people have a special right in this country and it is a right to vote. They may say something in a Petition but when they get behind that ballot box, they want to vote their pocketbooks. If they are going to put in the $ .48 tax district instead of the $ .03, she thinks that is fine. If they are going to be in the $ .48 and they are given back money, she feels that would be OK with all of them and feels that is the way it should go.

Commissioner McElraft said it is her understanding that the owner has moved his residency vote to Florida, but she still feels we should let him know. She does think it is only fair that he be added in but is not sure if this can be done before the referendum.

Mayor Schools called for a vote. Commissioners Messer, Marks and McElraft voted for and Commissioners Farmer and Eckhardt voted against adding the 13 additional properties to the Primary Service District. Motion carried.

Mr. Rush asked if it is the intent of the board to initiate proceedings to include the property at 116 Bogue Court in the Primary Benefit District and asked the boards pleasure on doing that. Commissioner McElraft said she understands that this property owner has moved his residency vote to Florida, but she still feels the town should let him know. She thinks we could add him later since he will not vote on it anyway. She doesn’t know. She does think it is only fair that he be added in though. She does not know what the timing is and if it can be done before the referendum. Commissioner Messer asked if he was not added in because he appears to be sound front and not having any frontage on the ocean side? Mr. Rush replied that was his rationale in preparing the original map. Mr. Rush said there is not enough time to incorporate that person into the Primary Benefit District prior to the referendum. He suggested that if the board wished to initiate that process , that the board make a motion to approve a Resolution of Intent to add this property to the Primary Benefit District. After the Resolution of Intent is approved it will be advertised and a notice sent to the owner.

Commissioner Farmer made a motion to declare the board's intention to include 116 Bogue Court in the Primary Benefit Service District and consequently remove it from the Secondary Benefit District, seconded by Commissioner McElraft. The board voted unanimously, with a vote of 5-0. Motion carried.

FINAL PLAT – SUNSET HARBOR CONDOMINIUM PROJECT – BUILDING 4

The Planning Board has reviewed the final plat for Sunset Harbor Building 4 at their December 18 and January 21, 2002 meetings. They have unanimously recommended approval to the Town Board. There were no concerns of the Planning Board and everything was in order.

Commissioner Messer made a motion to approve the final plat for Sunset Harbor Building 4, seconded by Commissioner Marks and the Board voted unanimously with a vote of 5-0. Motion carried.

ORDINANCE AMENDING CHAPTER 2 (ADMINISTRATION) OF THE EMERALD ISLE CODE OF ORDINANCES

This Ordinance Amendment is updated to include a reference to the new “Rules of Procedure for Emerald Isle Council Meetings” and also makes several “housekeeping” amendments to Chapter 2. A copy of the Amendment is attached at the end of these minutes.

a. Adoption of “Rules of Procedures for Emerald Isle Town

Council Meetings”

Minor changes to the Rules of Procedures were made. One is that a motion will not require a second. There were several minor changes. A copy of the Rules of Procedures for Emerald Isle Town Council Meetings is attached at the end of these minutes.

A question was asked about rules for conflict of interest. Attorney Taylor said if there is conflict of interest, the board member states what the conflict of interest is and the board votes to excuse that member until after the item it taken care of.

Commissioner Marks made a motion to approve the Rules of Procedure for Emerald Isle council Meetings, seconded by Commissioner Messer and the board voted unanimously, with a vote of 5-0. Motion carried.

Commissioner Eckhardt made a motion to approve the Ordinance Amending Chapter 2 (Administration) of the Emerald Isle Code of Ordinances providing comprehensive revision of Chapter 2, seconded by Commissioner McElraft and the board voted unanimously with a vote of 5-0. Motion carried.

Commissioner Farmer commented on Section 2- 88 Tax collector; duties – number (5) – she suggested removing the word “they” in paragraph 2 of that Section and replace it with “as he may require”. All agreed with this wording.

ORDINANCE AMENDING CHAPTER 12 (OFFENSES AND MISCELLANEOUS PROVISIONS) OF THE EMERALD ISLE CODE OF ORDINANCES TO PROHIBIT SHINING FOR DEER

An Ordinance Amendment to Chapter 12 (Offenses and Miscellaneous Provisions) of the Emerald Isle Code of Ordinance to Prohibit Shining for Deer makes this practice a misdemeanor offense. The ordinance is presented in response to concerns raised by residents at the January 8 regular Board Meeting. A copy of the Ordinance Amendment is attached at the end of these minutes.

Commissioner Farmer made a motion to adopt the alternative Amendment to Chapter 12 Shining For Deer, and the board voted unanimously with a vote of 5-0. Motion carried.

Mrs. Anna Neldon, 10501 Island Circle, thanked the board for doing something to correct the problems the residents had regarding shining for deer.

Commissioner McElraft related she has chased people in her bare feet and held them until the Police got there. The Police told her to never do that again in regard to her safety.

FY 2002-2003 BUDGET CALENDAR

The Budget calendar calls for the Town Manager to submit the Recommended Budget to the Mayor and Town Board on May 14 for a needed adoption by the Board by June 30^th, 2002.

Town Manager Rush went over the Budget Calendar, that is starting with a meeting with Department Heads. These will be due back March 15^th. April 22^nd will be a regular monthly workshop meeting and there will be a review of the Budget as it stands at that time. Mr. Rush will formally submit the budget to the Board at their regular meeting on May 14^th. A Public Hearing on the budget would be publicized for June 11^th. A Special Meeting may be necessary to adopt the budget in June. By law it is required that the board adopt a budget by June 30^th. A copy of the calendar is attached at the end of these minutes.

Commissioner Farmer encouraged the public to come to the budget meetings because it is a budget for all citizens and it is going to be a tight year.

Commissioner Farmer made a motion to adopt the Budget Calendar as presented and the board voted unanimously, with a vote of 5-0. Motion carried.

DISCUSSION – USE OF PRIVATE ROADS IN NEW SUBDIVISONS/PUBLIC & PRIVATE ROAD STANDARDS

A request was made to place this item on the February 12 meeting agenda after the Joint Planning Board/Town Board meeting on January 28, 2002. Two issues to be considered are (1) whether or not it is appropriate to allow private roads in new subdivisions, and if so, in which types of subdivisions, and (2) whether or not the Town’s current standards for public and private streets are adequate or need adjustment.

Commissioner Farmer made a motion to send this to the Planning Board to look at.

Commissioner McElraft stated she thought private roads should be allowed in commercial developments. She stated that it costs more to maintain commercial roads than is received from Powell Bill monies. She does not feel the public needs to be maintaining roads in a private subdivision. She does not think that the town, with all the other problems presenting at this time, need to start paying for private roads. Commissioner McElraft is not willing to spend any more town funds for streets than is necessary.

Commissioner Marks disagreed with Commissioner McElraft. Police have very little jurisdiction on private roads. One of the most dangerous places we have is at Food Lion. There are two STOP signs, one on the west and one on the east. Police have no authority if people do not obey those STOP signs.

Commissioner Farmer agreed with Commissioner Marks. She does not object to private roads in residential areas but with more vehicle traffic and more pedestrian traffic in commercial areas, she feels we should make sure that we are maintaining our grounds for safety and to make sure that laws are enforced and there is a handle on visibility as far as drivers and pedestrians are concerned. Commissioner Farmer thought there was another issue that was the town road standards. Private roads allow a 40-foot right-of-way, public roads allow a 50-foot right-of-way. That 40-foot right-of-way is insufficient to allow for the ditches that town standards call for. She asked that the Planning Board also look at possibly changing the right-of-way on private roads.

Commissioner Eckhardt did not understand the argument that he heard under the old board. He said there does not seem to be any precedence. He thinks the thing that moved him the most was that when he swings down into the Emerald Plantation parking lot, and he thinks he has the right-of-way because there is no STOP sign there, he no longer swings in there as comfident as he did before because he knows he is not protected. He does not feel this is right in a public subdivision which is what a commercial subdivision is. He would like the Planning Board to take a look at this and consider this not only from a safety issue but also from a precedence issue. It seems that the only precedence that was mentioned was that we now have a private road in Emerald Plantation and he found out the way that came about was that we now have really a commercial subdivision on a private road. The private road was there first.

Mayor Schools called for a vote. The Board’s vote was 3-2 with Commissioners Farmer, Eckhardt and Marks voting for, Commissioners Messer and McElraft voting against, sending the issue of private roads to the Planning Board. Motion carried.

RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE THE 2002 STREET RESURFACING CONTRACT

This Resolution authorizes the Town Manager to execute a contract with Barrus Construction Company, Kinston, N.C. for the 2002 street resurfacing package. The Resolution specifies a not-to-exceed amount for the contract of $145,000. The contract provides for resurfacing of approximately 2.31 miles of public streets.

Commissioner Eckhardt made a motion to approve the Resolution Authorizing the Town Manager to Execute the 2002 Street Resurfacing Contract. The Board voted unanimously with a vote of 5-0. Motion carried.

COMMENTS FROM TOWN CLERK, TOWN ATTORNEY, TOWN MANAGER

There were no comments from the Town Clerk or Town Attorney.

Town Manager Rush commented he had some difficulties scheduling the public forum on the Storm water Ordinance. He has asked for comments from our Town Attorney and from an attorney at the Institute of Government and will prepare a summary of their comments and incorporate them into the draft of the storm water ordinance. The Board had previously expressed that they wanted to have a special public meeting to allow citizens to comment on this. Mr. Rush suggested Thursday, February 28 at 7:00 P.M. Commissioner Farmer suggested putting this on the March Agenda if we can. Discussion took place on different dates. The final date agreed upon was Wednesday, February 27, 2002 at 7:00 P.M.

Mr. Rush also reminded the board and public that a meeting is being held on February 20, 2002 at 10:00 A.M. where the Presidents of various homeowners associations have been invited to attend. The purpose of this meeting is to give them a briefing regarding the storm water project in the Coast Guard Road area.

Mr. Rush also reported that word was received from the Clean Water Management Trust Fund that theEmerald Isle request for a grant did survive. Emerald Isle’s grant request was there on time and was the last one to get in before the deadline.

The field work has been completed and a geotechnical report is expected from Moffatt & Nichol by the end of February and a meeting will be set up with all the environmental agencies for mid March which would still leave the town approximately 4 weeks to make a final decision. The drop dead date on the offer to purchase is April 11, 2002.

COMMENTS FROM TOWN BOARD AND MAYOR

No comments were made by Commissioner Farmer, Eckhardt, McElraft or Marks.

Commissioner Messer commented he was happy with what happened at the meeting tonight except for one thing. He thinks it is a bad thing, when the citizens of Emerald Isle, either pro or con to beach re-nourishment, do not have the opportunity to ask questions and get qualified answers from Mr. Rush.

Mayor Schools commented that there are only three weeks until the March 5th vote on beach nourishment. He encouraged the residents to vote on March 5^th, and encouraged everyone to stick to the facts.

ADJOURN

Commissioner McElraft made a motion to adjourn the meeting and the board voted unanimously, with a vote of 5-0. Motion carried.

The meeting was adjourned at 9:30 P.M.

Respectfully submitted,

Carolyn K. Custy, CMC