April 9, 2002 Agenda
April 9, 2002 Minutes

ACTION AGENDA
REGULAR MEETING OF THE EMERALD ISLE
BOARD OF COMMISSIONERS
TUESDAY, APRIL 9, 2002
7:00 PM - EMERALD ISLE TOWN HALL

  1. Call to Order
  2. Roll Call
  3. Pledge of Allegiance
  4. Adoption of Agenda
    (Approved 5-0)
  5. Consent Agenda
    1. Minutes of Regular Meeting – March 12, 2002
    2. Tax Refunds / Releases
    3. Audit Contract with Bell and Company CPAs
      (Approved 5-0)
  6. Public Comment
  7. Presentation - Carteret County Boys and Girls Club
    (No Action Required)
  8. Consideration of Coast Guard Road Storm Water Project Land Purchase
    1. Discussion of Petition for Referendum
    2. Final Decision on Land Purchase
      (Approved 3-2 Vote - Marks, Eckhardt, Farmer For - Messer, McElraft Against)
    3. Public Hearing on Installment Financing Agreements for Land Purchase and To Refinance Existing Debts
    4. Resolution Authorizing Installment Financing Agreements
      (Approved 3-2 Vote - Eckhardt, Farmer, Marks For - Messer, McElraft Against)
  9. Resolution Authorizing the Town Manager to Submit Public Access Grant Applications
    (Approved 5-0)
  10. Emerald Isle Beach Nourishment Project
    1. Resolution Authorizing the Town Manager to Enter Into a Contract with Coastal Science and Engineering for Beach Nourishment Design Services - Eastern Reach
      (Approved 5-0)
    2. Project Budget Ordinances
      (Approved 5-0)
    3. Reimbursement Resolution
      (Approved 5-0)
  11. Revisions to Town Safety Policy
    (Approved 5-0)
  12. Ordinance Amending Chapter 19 - Zoning - of the Emerald Isle Code of Ordinances to Remove Townhouses and Condominiums from the List of Permitted Uses in the MH-1 District (2nd Reading)
    (Approved 3-2 Vote - Marks, Eckhardt, Farmer For - Messer, McElraft Against)
  13. Ordinance Amending Chapter 17 - Streets and Sidewalks – of the Emerald Isle Code of Ordinances to Adjust the Standards for Public and Private Streets
    (Approved 3-2 Vote - Marks, Eckhardt, Farmer For - Messer, McElraft Against)
  14. Ordinance Amending Chapter 18 - Subdivisions - of the Emerald Isle Code of Ordinances to Clarify the Use of Private Streets and Adjust the Standards for Intersections
    (Approved 3-2 Vote - Marks, Eckhardt, Farmer For - Messer, McElraft Against)
  15. Appointment of Members to NC 58 Corridor Committee
    (Members Appointed: Doje Marks, Emily Farmer, Pat Patteson, Ed Dowling, Ronnie Watson, Nita Hedreen, Fred Fremaux, Brad Fischer, Mark Brennesholtz, Jerry Huml, Nancy Williamson, Ed Johnson & ( 2) members of the  Revegetation Committee)
  16. Comments from Town Clerk, Town Attorney, and Town Manager
  17. Comments from Board of Commissioners and Mayor
  18. Closed Session – Attorney-Client Privilege (Holz/Howe v. Town of Emerald Isle), pursuant to NCGS 143-318.11 (a) (3)
  19. Adjourn

MINUTES OF THE REGULAR SCHEDULED MONTHLY MEETING
OF THE EMERALD ISLE BOARD OF COMMISSIONERS
APRIL 9, 2002 – 7:00 P.M. – TOWN HALL
Mayor Arthur Schools called the meeting to order.  Board members present were Mayor Schools, Commissioners Patricia McElraft, Richard Eckhardt, Emily Farmer, Dorothy “Doje” Marks and Floyd Messer.  Staff members present were Town Attorney Derek Taylor, Town Manager Frank Rush, Assistant Town Manager/Finance Officer Georgia Overman, Town Clerk Carolyn Custy, Inspections Department Head Carol Angus, Parks and Recreation Director Alesia Sanderson, Public Works Director Robert Conrad and Fire Chief William Walker.

            After Roll Call the Pledge of Allegiance was recited.

            Mayor Schools announced that Reese Musgrave, Mayor of Pine Knoll Shores passed away during the weekend and asked for a moment of silence in his honor.

ADOPTION OF AGENDA

            Mayor Schools announced a slight change to the agenda moving the Public Hearing to (a) and renumber the rest of this Item.

            Commissioner Marks made a motion to adopt the Agenda as presented.  The Board’s vote was unanimous with a vote of 5-0. Motion carried.

ADOPTION OF CONSENT AGENDA

a.      Minutes of Regular Meeting – March 12, 2002

b.      Tax Refunds / Releases

c.      Audit Contract with Bell and Company CPAs

Commissioner McElraft made a motion to approve the Consent Agenda as presented. The Board’s vote was unanimous with a vote of 5-0. Motion carried.

 

PUBLIC COMMENT

            None. 

PRESENTATION – CARTERET COUNTY BOYS AND GIRLS CLUB

Mrs. Nita Smith, Executive Director of The Carteret County Boys and Girls Club, and other representatives have requested approximately 10 minutes to make a presentation to the Board about the Boys and Girls Club’s efforts to expand their programs and services to western Carteret County. 

            Mrs. Marlene Anderson, Co-Chairman of Fund Raising, spoke about the services of the Boys and Girls Club and the fact that they have been active in Beaufort for 2 years and in that 2 years, the children’s scores in both elementary schools have increased dramatically.  People from Havelock, Swansboro, and Newport have requested that the Boys and Girls Club come to their area.  They have been approached by a benefactor in the western end of Carteret County about donating land for building a club here.  She said the representatives were here just to raise the awareness of what the Boys and Girls Club does and the impact it makes on the community.  She said with the world the way it is today, if a safer environment can be provided for the children it needs to be done. 

            Mr. Allen Leary, Board President, said that White Oak Elementary and Bogue Sound Elementary Principals have approached them about children who need help. Not just certain sections of children but all children can use the help of the club.  Some would be surprised at some of the poverty levels of the schools, the free lunches, the assistance that is needed and some of the programs actually do make a difference.

            Mr. Leary said the staff is trained where a lot of money is not put into bricks and motor but into people who do help to make a difference.  He asked that the community support the club with funds

CONSIDERATION OF COAT GUARD ROAD STORM WATER PROJECT LAND PURCHASE

BACKGROUND INFORMATION:  The Town’s deadline to make a final decision on the land purchase for the storm water project is April 10, 2002.  There are four items to be considered relative to this issue by the Board.  They are as follows:   

(1)   Discussion of Petition for Referendum

At the March meeting, the Board received a petition requesting a referendum on the proposed Coast Guard Road storm water project.  The Board decided not to discuss that issue at the March meeting, but did agree to discuss it at the April meeting. 

Town Clerk Carolyn Custy reviewed the petition, and has verified the names of 436 registered voters on the petition.  There is no legal requirement to conduct a referendum on the project in response to a petition, nor is it legal to hold a referendum simply on the merits of the project.  The only referendum authorized is a general obligation bond referendum, if the Board chooses to finance the project with General Obligation bonds.

Should the Board decide to proceed with a bond referendum, the timetable would be approximately 3 months to take all of the necessary procedural actions.  Additionally, the Town would need to consider the schedule of the upcoming national and state primary elections in setting a date.  Should the Board decide to conduct a bond referendum, the Town would cancel the existing contract and forfeit its $15,000 earnest money deposit on the property.  The Board would also risk the possibility that the seller would sell the property to another buyer or no longer be willing to deal with the Town. 

It should be noted that a referendum is not required to borrow the necessary funds for the proposed storm water project.  Many local governments choose to utilize installment-financing agreements for capital projects, and these financing mechanisms do not require voter approval and many also choose to utilize general obligation bonds for these types of projects.  The Board has the sole discretion about whether or not to proceed with the project and about how to finance it.  If the Board feels confident that there is ample public support for the project and believes that the project is a priority, it is reasonable to utilize an installment financing agreement.  If the Board is not certain of the public support for the project, a general obligation bond referendum provides the most accurate gauge of the level of public support. 

There is very little cost difference between an installment financing agreement and general obligation bonds.  Current interest rates for shorter-term installment financing agreements are actually slightly lower than some recent general obligation bond issues.  Installment financing agreements also have limited fees associated with their use, whereas general obligation bonds would result in additional expenses to hold the election and retain bond counsel. 

(2)  Final Decision on Land Purchase

A final decision on the land purchase will need to be made at the April 9 meeting.  The Town entered into the contract to purchase the land so that the Town could secure a 90-day window to evaluate the utility of the property for the storm water project and that 90-day window will end on April 10.

Moffatt & Nichol has completed the desired geotechnical investigations, and has stated that they believe the property will accommodate the necessary volume of storm water runoff for a viable flood relief project, as outlined in their initial study for the Town.  At our special meeting on March 11, the geotechnical results appeared to be well received by the various environmental agencies, and no agency has identified any “show-stoppers” for the project.  The Town does not yet have the necessary permits in hand, and will not have the permits in hand prior to closing on the property.  Based on the comments at the March 11 meeting, Moffatt & Nichol is confident that permits will be issued for a viable project. The Board will need to consider the environmental agencies’ reactions at the March 11 meeting and consider Moffatt & Nichol’s comments to determine if the Board is confident that the Town will receive the necessary permits.

If the decision is made to purchase the property, a closing date no later than May 10, 2002 will be worked toward.  If the Board should decide to delay purchase of the property at this time, a written notice canceling the contract will be hand delivered to the seller on April 10, 2002. 

(3)  Public Hearing on Installment Financing Agreements for Land Purchase and To Refinance Existing Debts

If the Board decides to purchase the property (and does not utilize general obligation bonds) for the agreed-upon net sale price of $3.28 million, the Town will need to enter into an installment financing agreement to borrow $500,000 to fully fund this purchase.  This installment financing agreement would supplement the $2.4 million Clean Water Management Trust Fund grant and a planned $380,000 contribution from the Town’s Storm Water Reserve Fund. 

In order to utilize an installment financing agreement, the Board must first hold a public hearing.  As required by NCGS 160A-20, a public hearing has been scheduled for the April 9 meeting.  A copy of the advertisement for the public hearing is attached.  The Board should note that the scope of the proposed borrowing also includes the refinancing of 3 currently outstanding debts.  The public hearing has been advertised with language to alert the public of this possibility and advise them that they can also comment on this issue at the April 9 meeting.

(4)  Resolution Authorizing Installment Financing Agreements

Following the public hearing, the Board must approve the attached resolution to authorize the installment financing agreements for the storm water land purchase and the refinancing of the 3 currently outstanding debts.

The Town solicited proposals from 3 private lending institutions to finance the $500,000 for the storm water land purchase.  BB&T offered the lowest rate over the 2-year term that the Town requested – 3.47 percent.  The annual payment on this installment financing agreement will be approximately $259,000 per year for two years, which is slightly less than the amount generated by the 2 cents earmarked for the storm water project (approximately $270,000 estimated for next year). 

After the Town received BB&T’s proposal, I approached BB&T about the possibility of refinancing 3 currently outstanding debts that have a higher interest rate.  BB&T offered a 3.92 percent rate to refinance up to $550,000 over a 3-year term.  The currently outstanding debts that would be refinanced are 1) the remaining balance on the 1999 installment financing agreement for the purchase of the Western Ocean Regional Access land (4.7% rate), 2) the remaining balance on the 1998 installment financing agreement for the ladder fire truck (4.85% rate), and 3) the remaining balance on the 2001 installment financing agreement for the purchase of several town vehicles (3.996% rate).  Under the current schedules, the first two debts indicated above will be fully retired in 4 years, while the third debt will be fully retired in 2 years.  The combination of these 3 debts into one will enable the Town to enjoy slight savings in total interest charges over the term of the debts, enable the Town to eliminate the fourth year of remaining payments on the ocean access and fire ladder truck, and will also enable the Town to keep its annual debt service payments approximately equal for the next couple of years. 

The refinancing would enable the Town to utilize the Western Ocean Regional Access land as collateral for all four debts, and greatly simplifies the financing process with BB&T and the Clean Water Management Trust Fund grant.  The use of the storm water land as collateral would have required an amendment to the Clean Water Management Trust Fund grant agreement.

Next Steps

Should the Board approve the purchase, and the installment financing agreement, the necessary actions to close on the property within the next 30 days would be taken.  After the property purchase has been completed, solicitation of a proposal from Moffatt & Nichol to begin detailed design work and the official permit process later this summer would be requested.

For planning purposes, it has been assumed that the Town would fully retire the 2-year debt on the land purchase before incurring any additional debt for the construction of the related infrastructure for the storm water project.  It has also been assumed that the Town would finance the related infrastructure over a 10-year term, with payments timed to begin immediately after the land debt is retired.  This approach will enable the Town to keep annual debt service expenditures within the proceeds generated by the 2 cents earmarked for the storm water project.  This approach would provide the Town with ample time to complete detailed design and secure the necessary permits.  Construction would begin in approximately 18 months.

If the decision is made to pursue general obligation bonds for the entire project, the financing of the land purchase and related infrastructure could either be combined into one debt issue or the Board could still choose to finance the land with an installment financing agreement.  Regardless of the debt instrument(s) utilized, the debt could be structured to remain within the proceeds generated by the 2 cents earmarked for the storm water project.  The use of general obligation bonds would likely allow for a similar project schedule to that outlined above, with a few months delay in initiating the detailed design and permitting process. 

 

 

 

RESOLUTION AUTHORIZING INSTALLMENT FINANCING AGREEMENTS

 

Whereas, the Town of Emerald Isle (Town) has decided to undertake a project for the acquisition of 40 acres of land for a storm water project, and the Finance Officer has now presented a proposal for the financing of such project, and

Whereas, the Town also desires to refinance three currently outstanding debts to obtain a lower interest rate, equalize annual debt service payments, and retire two significant debts one year early,

Now, therefore be it resolved as follows:

 

  1. The Town hereby determines to finance the land for the storm water project through Branch Banking and Trust Company (BB&T), in accordance with the proposal dated March 22, 2002.  The amount financed shall not exceed $500,000, the annual interest rate (in the absence of default or change in the tax status) shall not exceed 3.47%, and the financing term shall not exceed 2 years from the closing date.
  2. The Town hereby determines to refinance three currently outstanding debts for land for a public beach access, a fire ladder truck, and several town vehicles through BB&T, in accordance with the proposal dated April 3, 2002.  The amount financed shall not exceed $550,000, the annual interest rate (in the absence of default or change in the tax status) shall not exceed 3.92%, and the financing term shall not exceed 3 years from the closing date.
  3. All financing contracts and all related documents for the closing of the financing (the financing documents) shall be consistent with the foregoing terms.  All officers and employees of the Town are hereby authorized and directed to execute and deliver any financing documents, and to take all such further action as they may consider necessary or desirable, to carry out the financing outlined above as contemplated by the proposals and this resolution.  The financing documents shall include a Financing Agreement and Deed of Trust and an Escrow Agreement as BB&T may request.
  4. The Finance Officer is hereby directed and authorized to hold executed copies of the financing documents until the conditions for the delivery of the financing documents have been completed to such officer’s satisfaction.  The Finance Officer is authorized to approve changes to any financing documents previously signed by Town officers or employees, provided that such changes shall not substantially alter the intent of such documents or certificates from the intent expressed in the forms executed by such officers.  The financing documents shall be in such final forms, as the Finance Officer shall approve, with the Finance Officer’s release of any financing document for delivery constituting conclusive evidence of such officer’s final approval of the document’s final form.
  5. The Town shall not take or omit to take any action the taking or omission of which will cause its interest payments on this financing to be includable in the gross income for federal income tax purposes of the registered owners of the interest payment obligations.  The Town hereby designates its obligations to make principal and interest payments under the financing documents as “qualified tax-exempt obligations” for the purpose of Internal Revenue Code Section 265 (b)(3).
  6. All prior actions of Town officers in furtherance of the purposes of this resolution are hereby ratified, approved, and confirmed.  All other resolutions (or parts thereof) in conflict with this resolution are hereby repealed, to the extent of the conflict.  This resolution shall take effect immediately.
 

Adopted this _______ day of _________________ , 2002.

 

                                                                        _______________________________

                                                                        Arthur B. Schools, Jr., Mayor

 

 

Attest:

 

__________________________

Carolyn Custy, Certified Municipal Clerk

 

PUBLIC HEARING:  Commissioner Farmer made a motion to open the public hearing on consideration of Coast Guard Road Storm Water Project Land Purchase.  The Board’s vote was unanimous with a vote of 5-0. Motion carried.

            Mr. John Wootten, 103 Eagles Nest, commented he presented, at last months Board Meeting, a Petition signed by some 450 registered voters expressing the desire that the Board of Commissioners delay the purchase of the land on Coast Guard Road and bring a proposed storm water project to a referendum by Emerald Isle voters.  He continued that “Tonight I bring you almost 200 additional signatures on the same Petition for a total of more than 600 signatures. Six hundred (600) plus voters are asking for the right to decide about the use of their tax dollars.  I remind you that 600 plus is almost 50 percent of the voters who voted in our last election.  Just last month the engineering firm of Moffatt and Nichol and Tim Reid that the town hired with storm water reserves, determined that the property in question can be used adequately for collection of water.  Now you know the plan will work.  Now is the time to develop a financing plan, publish a financing plan and ask for voter approval.  I fully recognize that some feel that this request is late in the process but you did not know the project would work until last month.  You could have hardly asked for voter approval until the engineering studies were complete.  I also recognize the town will lose $15,000 earnest money that is tied to the option contract as it exists right now.  I submit to you that $15,000 is minute when you consider the level of expense the town will incur with this project.  A referendum, best estimate, would take 90 to 120 days.  There is very little risk of losing property or Clean Water Management Trust Fund money in that time.  I think it is very unfortunate that in a recent mail out that the majority of the Board avoided the basic point of the Petition dismissing the signatures of 600 plus voters as simply “lively politics”.  This majority even attacked my personal integrity as almost the cause of this Petition.  Let me express my past record on this issue.  As a Commissioner, I did agree to raise taxes for $.02 and put the surplus into a storm water reserve.  I even did the simple math that said it would take about 10 years at the $.02 level to pay for the project.  I agreed to a tax increase in the reserve because we needed earnest money in order to determine if the project was feasible.  There were other cheaper, less viable solutions at the time but we needed to move forward and spend some money to find out if this was feasible.  At the time we did not know that the property would hold sufficient amounts of water. But my actions there are not the financing point.  In the mail out the majority of the Board states that there is no tax increase involved here.  Well, excuse me!  Two cents for one year to determine the feasibility is roughly $260,000.  Two cents for 11 more years is $2.9 million dollars.  Is that not a tax increase?  The mail out also states that two cents for 12 years is not an unusual financing process for Emerald Isle.  It cites the action of the previous Board in establishing the one-cent per year beach nourishment reserve, which is now going to be used for town expenses.  But that fund is being put to use and will be continued after a voter referendum.  That process is exactly what this Petition is asking you to do.  Please remember here that the sole issue addressed in this Petition is request for voter approval for the expenditure for $2.9 million dollars for the project plus about $600,000 of interest expense.  The issue is not, it is not the viability or benefits of the project nor is the issue the type of financing or interest expenses.  It is simply the level of expense and result in the tax load on our taxpayers.  Remember the cost of beach nourishment for non-ocean front residents, 95 to 96 percent of residents, the costs to those folks is $2.9 million dollars, almost the exact amount of the storm water project.  If we ask for voter approval for beach nourishment at $2.9 million dollars, why not ask for approval for the storm water project at $2.9 million dollars.  Same numbers.  We did it for one; we should be doing it for the other.  What is the difference between three cents per hundred for 8 years or 2 cents per hundred for 12 years.  There is none”.

            Mr. Wootten indicated he would deliver the additional Petition signatures to Town Clerk Carolyn Custy.

            Mr. Jack Seikman, 218 Sandfiddler, said this is a complex project and hardly one that can be addressed in 5 minutes.  It looks to him that it is rapidly approaching $5 million dollars.  He said he would like to deal with the technical aspect of some of these questions.  His credentials include being a professional engineer and he has spent the last 5 years being very much involved with flood control so he thinks we are dealing with some facts that he is familiar with.  Mr. Seikman said a request by Mr. Tom Colvin and he has been made several times for a chance to sit down with Moffatt and Nichol to discuss this issue.  It is not the type of issue you can ask a question and get an answer and come with anything. He said he has been unsuccessful in being able to sit down with anyone from the technical area or anyone in the town to discuss this thing.  Mr. Seikman said he and Mr. Colvin were invited to Raleigh to sit down with the Assistant Secretary of DENR, the Executive Director of the Clean Water Trust Fund, the Acting Director of Clean Water Quality and several other people and discuss the issue.  Mr. Seikman found it interesting that Mr. Bill Hollman, the Executive Director of the Clean Water Trust Fund was quite clear about the fact that as far as he was concerned, the $2.4 million grant that will be used to purchase the land with was not for hurricane related heavy rain water.  It was for heavy rain only.  Not related to hurricanes.  As a result of that, Mr. Seikman obtained a copy of the grant and he quoted from the grant. He pointed out the Moffatt and Nichols’ estimate for the water was 5.7 million cubic feet. of water that would be handled in the system. Page 16 of the grant from the Clean Water Trust Fund says the objectives are, and I quote, “ Collect and treat up to 2.4 million cubic feet of storm water runoff in the town with a constructed wetlands and sand filter system”.

Mr. Seikman said his point is that the grant is for $2.4 million dollars, 50 percent of a $4.8 million dollar system.  The system is rapidly approaching $6 million dollars.  There seems to be a serious question as to whether the grant is related to the project.  It seems there are some questions that have to be settled with the Clean Water Trust Fund before their funds of $2.4 million dollars is used.  Mr. Seikman pointed out that if their $2.4 million dollars is used, the town has to go ahead with the whole $6 million dollar project.  There is no other option unless the town wants to give the Clean Water Management Trust Fund money back to them.  Mr. Seikman continued that it is anybody’s guess what this will cost.  He is guessing that it will be well over $6 million because there are several things that are not included in the Moffatt and Nichol study.  We don’t have a quote from anyone yet and there is no permit to do this.  Mr. Seikman said he thinks that purchase of the land at this stage of the game is premature.

 Mr. Jerry Stockdale, 8521 Ocean View Drive, said he was both offended and alarmed by what he saw coming from three Commissioners Eckhardt, Farmer and Marks. Mr. Stockdale said, “It seems to me that the disregard of half of the electors for the people to vote on this issue is one of the most arrogant things that I can remember seeing in the town’s politics and I think that you should take that into consideration.  For one thing, you only received 30 or 35 percent of the votes that were casts and now we are having half the people say lets have a referendum about this issue and I think that if you truly lived up to some of your commitments when you ran for office, you would represent the wishes of the people.  You would go ahead and cancel the purchase of this land right now and go for a referendum like the voters of this town want”.

Mr. Ronnie Watson, 9102 Coast Guard Road, said, “I swore I would stay out of this stuff and try not to come to these meetings, but you know when you see things happening in the town that you love, it really upsets me, the things that are happening here.  I have never seen the wasteful spending that we are doing right now.  Never seen it.  I have been here 42 years and have never seen the wasteful spending we are doing right now.  We have a “runaway train” here in my opinion and we need to buy that piece of land like I need to fly to the moon tomorrow!  We need to think about what we are doing.  We are talking about taxing the people more.  I understand that we are talking about a $.05 increase in taxes this year.  We cannot afford it.  You are talking about borrowing the money to buy the piece of property.  It does not make sense to me.  We have had our flooding problems but nobody has died from it.  It has been a little bit of inconvenience, yes we have had that and for how many years?  In thirty-five years we never had a hurricane, but we will have another one and another one but who knows when that will be?  We are talking about spending $6 million dollars?  It does not end there.  Then we are talking about a grant for a park?  I love parks and nature.  We are talking about getting another grant for $250,000 more matching funds from the town?  Where does that money come from?  It comes from us, the taxpayers.  The State has problems, the County has problems, we have problems and every time you turn around what are we going to do?  We don’t have the federal government to bail us out like New York City did.  It is going to be the taxpayers.  That is exactly where you are heading.  You might not think you are but that is where you are heading.  I am smart enough to know that.  I am not too smart but if I ran my business the way this town spends money, I would be broke in 6 months.  Another issue is if the Coastal Federation, and I understand they are behind this, if they want to buy the land – fine – let them buy it.  Don’t let the taxpayers buy it.  If the Coastal Federation wants it that is fine.  Let them buy it. If they don’t want to see it developed that is fine too.  If any of you are directly involved with the Coastal Federation, I would be very careful.  I think you have a direct conflict of interest. I think that is a legal question.  We don’t really need a Public Hearing because the decision has already been made.  There it is right there in black and white that was sent out to all the voters of Emerald Isle”. (Mr. Watson referred to the letter from Eckhardt, Farmer and Marks attached at the end of these Minutes). “Why even have the meeting.  The decision has already been made.  What are you afraid of?  Are you afraid of letting it come to a voter referendum?  What are you afraid of?  Let the voters, if they want to see it fine and good.  That is just the way it fell.  I don’t want two or three of you up there saying you are going to obligate this town to this kind of money as hard as a lot of us work in this town to make things work and you are talking about doing something else again to us to raise our taxes.  We cannot afford it.  We had better start taking care of what we have got here first instead of starting wasting money”

Attorney Richard Stanley, said he is representing some of the citizens that are seeking a referendum on merits of borrowing one half million dollars to purchase 41 acres.  Mr. Stanley said, “Let me say to you at the beginning that I do not know any responsible person that would buy property for a dedicated purpose that you are talking about that did not have permits in hand and I am surprised that Commissioner Farmer would knowledge that she has environmental regulations would even start such a thing at this particular time.  You may end up tomorrow buying this property and paying your $3.8 million dollars for it and find you cannot even use the property because you cannot get permits.  I don’t understand why there is such a rush to judgment on this at this particular time.  Your borrowing the $550,000 for this is just the tip of the iceberg.  You are going to have to spend about $3 million dollars of the town’s money, the voters’ money, the landowners, in order to complete this project and once you buy this land and make your commitment tomorrow, you are forever committed to spending not less than $2.4 million on this in order to get back the Clean Water Grants”.

“Now let’s talk about why the voters should have a referendum for just a few minutes.  Your voters just passed the beach nourishment referendum that is going to result in at least, not less than a $ .03 increase on the non-ocean front owners.  Your management has already recommended and has gone on record as proposing an additional $ .05 for the new budget year.  That amounts to $ .08 or a 44% increase of the tax rate at this particular time and you are trying to add, with this project, another $ .02 that is going to increase your taxes over 55% in one year. I hope folks out here are aware of this because over 600 property owners and voters have petitioned for a referendum.  I would like to examine for just a minute, the apparent reasons of three of the Commissioners for not turning to a referendum on this.  By the way, I think the three need to be very careful with the Open Meeting Laws because it is obvious three of you are getting together to discuss.  The news letter is from all three.  It is obvious that the news letter is being prepared with a joint discussion and consent of that and I am simply saying that I would be very careful about what you are saying in that.  You say that you will lose the purchase contract and the $15,000.  Well I agree with Mr. Wootten “so what”?  $15,000 when you are looking at a $3 million proposal?  The town has the power of condemnation of imminent domain. After the vote is affirmative for this you can always go back and condemn the property and it is obvious the sellers would like to have the $3 million dollars because they are in agreement on the purchase price.  Why not wait for the results of the referendum?  Secondly, according to the newsletter, it says there is a three-year requirement to complete it.  Ninety days is certainly going to kill a thirty-six month project.  If you are really concerned about the project and you want it done, then you must be pretty scared about what the referendum is going to do because it appears that you are going to forego that and go ahead and proceed with it.  I hope that is not true.  My understanding is you have to go to the Local Government Commissioner to get approval of this installment financing.  If you decide not to delay this tonight and to go ahead and vote to purchase the property and to do installment financing, I can assure you my group is going to go to the Local Government Commission and oppose this.  We are also going to point out that the tax burden is getting extremely high on the owners and businesses here and they cannot handle the additional tax burden.  I also want you to consider the fact that down the road, if this becomes a burden, they could withhold the $ .02 or that portion represented by the $ .02, from their tax payments and it is going to leave the town in quite a mess.  Now I hope you will reverse your situation and decide to hold a referendum but if you don’t, I ask specifically that my comments be placed in the record of this meeting and that it be given to BB&T and your other lenders that are apparently interested in making this loan and that it also be given to the Local Government Commission”.

Mr. Clint Routsen, 9721 Green Glen Drive, representing the sellers of the property said he would like to go through a list he has prepared in relation to the reasons why the town should proceed with the contract and also the reasons why the town should not move to a non-binding referendum.

Mr. Routsen said, “$2.4 million of the $3.28 million dollar purchase price is being paid by the Clean Water Trust Fund Grant.  That leaves the land cost to the town of approximately $900,000 for 41 acres of prime sound front property.  That equates to approximately $22,000 an acre.  I am sure there is not anyone who has been up to the podium who would not pay $22,000 per acre for a piece of prime water front property. If the town does not accept the $2.4 million grant it is not going to come back to our coiffeur.  It is going to be spent by somebody else.  It is not going to be us, but it is going to be spent by somebody else.  With the current and future budget shortfalls that are anticipated at the State level, the likelihood of this funding coming back around is questionable.  The subject property is the only viable alternative for this project.  If the town passes up the current site, it may not be available in the future.  Increasing regulations are going to force the property owners to develop that property because of the loss of value.  Unlike mainland communities, we cannot simply go outside and expand our borders and pull other property in.  This is the last site.  The sellers have worked with the town on this project since 1999 with the exact understanding that the town would have to have outside funding to make the project feasible.  We worked in good faith with the town.  We worked with prior boards and with this board.  This board approved the current contract.  The contract inspection period was given to the town to allow the town to examine the property to see if it would do what everyone wanted it to do.  Engineers have said it will.  It is better than anticipated.  This property provides the town the opportunity to take action to address the storm water problem, to provide a public park for the town residents and visitors that could not be established anywhere else in town and provide public sound access for canoeing and kayaking that is not available anywhere else in town.  For those reasons, we support, and I support as a citizen, proceeding with the contract and not terminating it. With respect of the proposal to have a non-binding referendum, and it is important that you understand that we are talking about a non-binding referendum, non-binding referendums are not the way to go.  The Institute of Government takes the position they are illegal and the town’s own attorney has indicated to you that he does not support them.  If the town was going to have a referendum in this matter it should have been before the town spent $60,000 on the project – not now – not after we entered into the contract.  The town board was elected to represent the town and to do what is in the best interest of the town and all of its citizens.  That may or may not be what 51% of the voters at a referendum would do.  If you put this issue to a referendum and the majority of the people approve of the project, then nothing is changed and the board has wasted the money.  If you put it to a referendum and it is disapproved – nothing is changed and the decision is still the boards’ to do what is best for the citizens of this town.  If the board put this issue to a referendum, I want to know what’s the next issue we are going to be addressing?  Is it going to be hiring of town employees, is it going to be the towns budget process, is it going to be the trash collectors?  When are we going to decide that we should stop that?  As a citizen of Emerald Isle, I hope that the board will consider the future of the Island and what is best for the interest of the current and future citizens of Emerald Isle especially before we give away $2.4 million dollars and we change the way our government works in Emerald Isle”.

Bill Reist, 8520 Woodcliff Drive, said he has been attending board meetings now for years and has also been attending meetings regarding storm water.  He recalls even taking a tour down, looking at the properties at the lower end of the trough and a lot of the people who are speaking he does not know.  He does not recall ever seeing any of them attend these meetings.  As he tried to recall what transpired in all of these meetings, he never once recalled Mr. Wootten and Mr. Murphy talking about referendum.  This never came up.  He took the time to go through the Minutes of the Board Meeting for the past two years to try to see whether this issue was brought up.  He could not find anything.  Maybe there is something he missed but he could not find a thing discussing referendum.  Again, he cannot understand why this issue that was so urgent and so important to Mr. Wootten and those who want to put this up to referendum, why this was never brought up before.  It seems as though this is an effort, a last ditch effort, to try to scuttle this or maybe what we are dealing with is some damaged egos.  Mr. Reist is not sure. 

Commissioner McElraft interjected that “this will not be allowed.  You cannot talk about other citizens like that”. 

Mr. Reist said, “OK, in any case I find it interesting too that people who, I can’t definitely say this, but it was builders and developers who were chasing the bucks, that never took any interest in the storm water issue to begin with and that is why we have the problem.  Now we see some of these, and again I am not sure whether these are the individuals, I am talking in generalities here, but people representing building and developing interest who are fighting this and yet this was all part of the problem because no one took any time or care to look at the properties to see if you fill in a wetland you are going to have water.  So now, we are faced with the situation where it has to be corrected.  Now it is interesting that the builders and developers are interested in this piece of property.  I cannot say, and I am not accusing anyone of anything, but I wonder if they have an interest in this property.  Is this scheduled, in their mind, for condos?  I don’t know but I think anyone thinking about this would wonder why all of a sudden would they come out of the woodwork to fight this thing unless there is some financial interest?  I don’t know.  I am just speculating.  In any case, I think the gentleman who spoke last was right on target.  You have to make decisions.  You were voted to make decisions.  Make the decision!  Let the injured egos fall where they may.  It is just amazing to me that all of a sudden, at the last minute, this is brought up and people are trying to scuffle it at this point in time. I would encourage you to bite the bullet, show your guts, stand up and do what you have to do and I think the town will benefit.

Mr. Harry Thompson, 1603 Ocean Drive, related to the gentleman who told about this being prime waterfront and said it looks like to him (Mr. Thompson) there are a lot of wetlands on the map and he cannot understand what is so prime about that.  You cannot do much with it.  Take all of the wetland out would drive the price per acre up but it will not be 41 acres of prime.

Commissioner Eckhardt made a motion to close the Public Hearing. The board voted unanimously, with a vote of 5-0.  Motion carried.

            Commissioner McElraft made a motion that the board allow the referendum to happen.

            Attorney Taylor said he would like to get clear on what Commissioner McElraft means on referendum.  He said two things were presented to the board tonight.  One of them is a General Obligation Bond.

            Commissioner McElraft said “a General Obligation Bond”.

            Commissioner McElraft said 600 plus, approximately 630, people signed that Petition.  She did not know we had 630 developers in this town.  She knows that Commissioner Farmer has worked diligently on this.  Commissioner McElraft said, “In fact I was in the Mayor’s office and overhead a conversation, not eavesdropping, but she was talking to the Town Manager that she has worked 5 years for this, even before the Moffatt and Nichol study.  She has worked very hard and I understand and appreciate all of the hours she has put into it.  I look at Commissioner Farmer as a friend and then I look at 630 people, citizens of this town, taxpayers and voters, who have signed this petition and I have to say that we have to let them speak.  I will absolutely go with whatever they decide.  A General Obligation Bond is the only way we can do this legally and is not the kind of referendum that Mr. Routsen was talking about.  This is a General Obligation Bond we are requesting and it is legal in the State of North Carolina.  Saying that this is the only property available – when I went to the permitting meeting that was held recently, we are only using about 10% - 15% of that property for storm water and I am not sure that this is the only property that is available after this study has been done.   The Geotechnical work was done during droght times and there were even some questions by the permitting agencies about it being a drought time when they were doing the water tables and there might be a few little adjustments.  I am not against this project per se’.  I am saying I want to help my neighbors with their storm water problems and that is why I voted for the $ .02 tax increase in the last budget.  I did not vote for that tax increase for 14 years and obligate the citizens.  I voted to study this further with the $ .02 that we are collecting and to try to find some holding ponds.  I know we have been offered property at the corner of Coast Guard Road and Highway 58 that we could put a holding pond on and take away a commercial building there.  There are other options out there.  I am truly not against helping my fellow citizens because I know there are storm water problems we need to deal with but I do believe that there may be some alternatives that we need to look at.  I don’t think this is going to interfere with the grant that we have and if it does, we can go back next year and ask for another grant. Half of the money from the Clean Water Trust was eliminated this year.  I am not sure that that money was not needed someplace in the Neuse River or someplace else this year so I am for whatever the citizens want in this.  When you have 630 people sign this petition, and half of the people that are affected by the storm water are on that petition, they are saying take this to a vote then we have absolutely turned our backs on the citizens if we don’t let this go to referendum”.

            Commissioner Marks commented that “Approximately 10 years ago, a group of people brought a petition with 417 signatures on it to the town board meeting and was told at that time, by then Town Attorney Richard Stanley, that it was not admissable. It is not a popularity contest and that the board had no reason to accept it.  Everyone attending that meeting that was on the petition who wanted to be heard at the meeting, they could testify but otherwise the town could not accept the petition.  Now Mr. Stanley is turning around and saying we should accept these petitions.  I am having a real problem with this.  I understand we are not looking for a General Obligation Bond.  We are looking for financing for this property.  We would be using another town property as collateral.  The cost and interest rates are comparable and possibly even lower when acquired at local banks.

            Commissioner Farmer commented that in case people did not understand why the board was talking about the legality of going to a referendum, the petition that most citizens signed, called for a referendum similar to the “Horse” referendum.  According to David Lawrence, at the Institute of Government, town boards do not have the authority to hold referendums except under very few specific situations.  The board does not have the legal authority to call for an advisory referendum, which is what this would be.  The IOG said that in fact the “Horse” referendum was illegal.  Commissioner Farmer went on to say “While there are obviously a lot of people, one-third to half of the voters, that would like us to have a referendum on this, we can’t.  We could have sent out a survey to gauge community support and in fact we did.  In the 2000 town survey, we asked if tax money should be set aside to purchase land for storm water retention and open space.  566 responded and said, “Yes”.  159 said “No”, 167 were neutral.  It is that course the previous board was following.  We set aside $240,000 in fiscal year 2000-2001 in general funds for a storm water account and raised the taxes $ .02 to fund that project.  Discussed at that board workshop was the fact that the $ .02 would go on for seven years.  It is now being suggested that instead we go the Bond route.  The bottom line is it is too late to change the financing plans without torpedoing the project.  The contract with the property owner was contingent upon favorable Geotechnical studies showing that the land was suitable for storm water.  We have gotten those results and they were more than favorable.   Ed Beck said at that meeting, when someone said it had been a drought, he thought we would have no, or very little impact on the amount of water the parcel would hold. If we break that contract now, we run the real risk of losing the only parcel that will provide the only solution to the flooding the engineers defined and we lose the $2.4 million grant.  I appreciate Commissioner McElraft’s comments but frankly this is not about me and the work I have done for every how many years, this is about what is in the best interest of the town. I am not willing to risk this”.

            Commissioner Messer commented he is not against the storm water project.  He is not in favor of this storm water project.  He said, “First of all being in the Real Estate Business a ling time I cannot recommend anybody buy a piece of property without the proper permits for them to do what they want to.  We are not getting a Warranty Deed for this property, which bothers me.  Another thing that bothers me is that we are paying $80,000 an acre for a lot of wetland.  Moffatt and Nichol, the way I understand it, says it will handle storm water.  It will not handle hurricanes.  I have been here 15 years and I have seen a major problem twice and that was with the hurricanes.  The park project, development of the park bothers me.  I would like to ask Frank Rush do we need Local Government Commission approval to borrow this money”?

Mr. Rush answered that Local Government Commission approval was not needed to borrow the money for the land purchase, the $500,000.  The reason for that is it is less than a 59-month obligation.  We talked about financing it over 2 years.  Local Government Commission approval is not needed for that.  We will need Local Government Commission approval for a 10-year installment financing agreement to do the pumps and piping. The plan that he outlined in the packets is a plan to finance the land for 2 years and then in 2 years from come back and do the 10-year installment financing agreement that would need Local Government Commissioner approval at that time. 

Attorney Taylor interjected, “Just for an update because I do not think the Commissioners knew this, Mr. Routsen and I have discussed our purchase agreement.  The grant people require a Warranty Deed and Mr. Routsen has indicated that a General Warranty Deed will be provided.

Commissioner McElraft asked Attorney Taylor if the board could pursue this as a General Obligation Bond Referendum?  Attorney Taylor’s answer was “Certainly you could”.  Commissioner McElraft asked, “Then why is it illegal?  It is absolutely not illegal.  It was requested by Mr. Wootten, the first time he brought this up at the last meeting, that it was a General Obligation Bond he was requesting.  Another thing that Mr. Routsen mentioned was because of new regulations we have on this he is going to probably start developing that property.  I would probably say that the property is not worth as much as it was last month after we came in with our new storm water ordinance.  That property probably depreciated at least $15,000.  If we go back after we get voter approval and renegotiate that property, we could probably save that $15,000.  I believe that $15,000 was also part of doing that study to see if it is worth the money we are going to spend on it.  The contract also did not call just for the Geotechnical work approval and then the contract approval.  It said this had to be suitable for our needs.  We don’t know that it is suitable because we do not have the permits for it.  I think we have to step back from this, take a breather, listen to the voters and then go forward if that is what the public wants.  Absolutely!  If we don’t we are denying their right in the town.  It is not just a few citizens; it is not 200 and some people who signed the Horse Referendum.  Six hundred and thirty (630) of your citizens, more than at least three members of this board were voted in on.  Almost more than I was.  I had 45 more votes.  None of us really have any reason to go against this petition at all.  These are people who really feel strongly that this thing really needs to go to the citizens.  Whichever way it comes out, it does not mean we are not going to continue to help our friends.  We absolutely are. The $ .02 was not put in and that was not the vote for 10 years.  That $ .02 was in there to get some studies done and to try to look at some options but we never said that $ .02 was obligated for 10 years.  I would have never voted for that. In fact, I made a comment to Mr. Seikman when he said why are you doing this $ .02 before you know that the property is compatible or that it is going to be permitted and I said because citizens do need help with the storm water.  We may have to buy a holding pond or retention pond somewhere and do some more studies or whatever.  That is what the $ .02 is for.  Not for a 10-year commitment and a 14-year commitment to buy property that citizens may or may not want to buy.  If we ignore those voices we have done a disservice to citizens of this town.

Commissioner Farmer said she would like to direct the Town Manager to put on the town website the Minutes from the Budget Workshop of June 22, 2001.  In that the financing was laid out and it is indeed talking about this specific project and it is over 10 years.

Commissioner McElraft said, “Would you please put my comments to Mr. Seikman and what I said to him.  We need a little money to take care of the storm water in this town but this is not necessarily for this project.  That comment was definitely made in those Minutes also”.

Commissioner Marks commented she wanted to go back into history a little.  She said, “This is part of the letter that I wrote to Mr. Wootten back in October 2000, long before I even dreamed of running for Commissioner and I said to him, “Storm water problems in Emerald Isle go back a long way.  In April 1998, the following quote was printed in the Tideland News and it noted that 15 years ago,(which would have been 1983), a section of Emerald Isle property on Coast Guard Road, Blocks 45, 46 and 47 has severe drainage problems Jim Caldwell ( and I assume he was the Building Inspector) told the town commissioners.  He said the commissioners need to consider both short and long term solutions for the storm water problems”

Commissioner Marks related to another article printed in the Jacksonville Daily News on September 11, 1990 noted that Emerald Isle was having drainage problems and severe flooding on two streets. It quoted Commissioner Gordon McAdams as saying “It may take more than $1.2 million dollars to pay for solutions to those problems”.  Those problems they were talking about then was Deer Horn Dunes, not all of Coast Guard Road.  Now, in October 2000, 9 years later, we are still talking about a solution costing $ 3 to 5 million dollars because the problems were not addressed by previous boards.  In fact over the years, the town boards ignored town ordinances and allowed wholesale clearing of new lots, creating new storm water problems in Lands End, Spinnakers Reach and Dolphin Ridge Subdivisions.  The Corps of Engineers exacerbated the situation by allowing developers to fill wetlands and also allowing individual lot owners having less than an acre to fill wetlands without a permit.  The problem with storm water is not going to go away.  We need to address it now before this price tag doubles or triples again.  If we applied for grants to help purchase the land or develop a project, we need to submit it where it will stand a good chance of being accepted”.  Now that we have received the grant and we have a project in hand, let’s not turn our back on this again.  The price tag is going no place but up.  The other real great idea for this project it that we a get a sound front park which we do not have now.  We have a small park at the end of Cedar Street that will park maybe 4 cars.  This project will allow for canoeing area, parking, kayaking area, hiking trails and picnic shelters and I don’t see how we can turn it down.

Commissioner Eckhardt said when he campaigned last year he supported this project as far as it had been laid out by the previous board.  He quoted one thing that was in the paper on Sunday that one of the previous board members who now feels he should hold things up said.  “I think it is the best solution we have”.  Commissioner Eckhardt said he still thinks it is the best solution we have.  He campaigned on that.  All 14 candidates campaigned on this issue and said it is the best solution we have.  There was only one caveat and that was that the Geotech studies some back positive.  They came back better than positive.  I cannot imagine picking up what we have done in the last two or three years and trashing it at this point.  I just can’t, go against I think this is the best solution we have and I support it”.

Commissioner McElraft said Mr. Wootten just stated he is for this project too but Mr. Wootten nor the Board is paying the total tax bill. The citizens will be paying it.  You have citizens giving input that they want to let you know whether they want to pay this tax bill or not.  Commissioner McElraft said, “It’s kind of funny because Commissioner Marks was quoting part of the Harmony group who were talking about taking $ 1 million dollars to a General Obligation Bond Referendum and we have $ 3 million dollars and we are not even going to let the people speak.  That is sad!

Commissioner McElraft made a motion that the board call for a General Obligation Bond Referendum on the funds for the Coast Guard Storm Water Project.  The board voted, with a split vote of 3-2, against the motion.  Voting for the Motion was Commissioner Messer and McElraft.  Voting against the Motion was Commissioners Farmer, Eckhardt and Marks.  Motion denied.

   Mr. Rush commented that a lot of this has been covered in the comments by the public and board.  The only thing he would point out is that the bottom line cost of the project, without the park costs, is $ 5,135,846.  The park project talked about at the last meeting was an additional $ 432,000. where 50% would be funded by a grant so that would bring the cost up to roughly $ 5.6 million dollars.

Commissioner Farmer asked Town Manager Rush to talk about the grant that  Ms. Sanderson presented at the last board meetingto get permission from the board to make application to the Division of Water and Conversation Fund for $ 492,000 park project, requesting $246,000 from the LWCF in grant funds.

             The deadline for the application was April 2, 2002.  We did not submit that application because after the March meeting we learned there were some very stringent application requirements we were unable to meet in time for the April 2 deadline.  If the board wants to pursue another LWCF grant, the next one will be April 2003.  There is also a Parks and Recreation Trust Fund that will come up in January 2003 which is also a 50/50 grant.  One other item that will come up later for approval tonight is a CAMA Grant to do just a portion of the park from the conceptual plans.

            Commissioner Eckhardt asked for clarification from Mr. Rush that this just deals with the application.  Mr. Rush confirmed it was.  It would give Mr. Rush the authority to make application.

            Mayor Schools asked for a motion to move forward with the land purchase.

            Commissioner Eckhardt made a motion to move forward with the land purchasing Contract.

            Commissioner McElraft asked Attorney Taylor about the approval that is needed from the Local Government Commission, if the citizens went to that Commissioner after the town purchases the land and take the $ .02 away and fight this, how would the town pay for it?  She is very uncomfortable here.

            Attorney Taylor said, “There are several facets here.  As to the issue of tonights immediate action, I agree with Mr. Rush.  I don’t think it will require us to get approval because all we are doing is purchasing the property.  When we go to step 2, which is installing the pumps, and making improvements to the property, then we do have to go to the Local Government Commission.  It depends on which part of that question you want to answer and I guess I have answered both by giving you that.  And yes, obviously they can go to the Local Government Commission and express their issues.  It is a determination that is to be made by that group as to whether or not this town is exceeding what it should exceed in terms of debt and whether you would be hurting your ratings.  We don’t know what they would say until it has actually been sent to them.  It is hard to know what we would do if that were to take place.  If there are some other means of financing that would be required then we would have to address them at that time.  But for purchasing the property, which is what we are talking about tonight – you, would proceed. The things you would have hanging over you is we have got to match that money somewhere down the road.  So this is an issue somewhere down the road but not immediately.

            Commissioner McElraft said, if we cannot borrow that money, then we are in a “mess financially”.  Attorney Taylor said he was not going to make those determinations for the board.  The board has to make those determinations but if we cannot do the improvements to the property, the obviously the town would have to give some consideration to selling and disposing of it.  That would be an option.  I am not giving you any issues as to whether it is good, bad or indifferent.  I am just giving you options.

            Mr. Rush interjected that one option that would be available, if by chance the Local Government denied that debt, the town could certainly proceed with “pay as you go” to implement this project.  One caveat with that is that you have to get permission from the Clean Water Management Trust Fund to extend the deadline for getting the project completed which at this point is June 30, 2005.  That would be another option but there would be an additional step in there to make that happen.

            Commissioner McElraft said again that she is not against helping her neighbor.  She absolutely thinks that if someone has storm water problems the town needs to help them fix that.  She went on to say “I know that we have raised some roads and ditching the sides and has helped a lot.  There is a citizen that is willing to donate some property at the Point area, free, to pump there.  We could buy a small piece of property for a holding pond.  There are some other options out there but to take this debt on this town without even knowing whether we are going to get the permits or not, without even knowing if the Local Government Commission will allow us to even finish out our Clean Water Trust Fund grant match, then I think we are doing a disservice to this town.  Absolutely!  I am very very frustrated that we could not wait 90 days to see if it would pass a referendum”.

            Commissioner Marks commented she would be very frustrated if the board does not pass this.  It has been an on-going problem.  The board has talked about storm water problems solutions as pumping the water to the beach.  We have been told that is not a solution.  The town has looked into the area of the Point and has found that there is not a large enough area to hold the amount of storm water being talked about.  This is the only tract of land off of Coast Guard Road that will handle adequately the amount of storm water that is generated in that area.  We cannot do it with little holding ponds and culverts.  We have to do it with a drainage project.

            Commissioner Farmer asked if Mr. Tim Reid of Moffatt and Nichol if he could talk about what he thought came out of the meeting relative to permitting problems. 

Mr. Reid said in the meeting with the permitting agencies, the Fish and Wildlife Service, Corps of Engineers, CAMA, Division of Water Quality all received the project.  They all had good comments about it.  It addressed all of their concerns they had from the first meeting where they were asked for input.  Those concerns were addressed and they came back and are doing some things with nationwide permits.  They are not going to treat this as a storm water project because it is only going to be used intermittently when there is flooding.  It is not a constructed impoundment so it is not going to be permitted under that particular permit which is basically for constructed wetlands.  This is basically going to be used as a holding pond.  After the meeting, discussion of this was held with all of the individuals.  The next step, which is getting the permits issued and taking the reports that have already been done and define those into a more concise document to be addressed.

Commissioner Farmer said the agencies understand that the town is between a rock and a hard place.  There are storm water problems and no place to put the storm water.  It cannot be put on the beach until the flooding is just miserable for the people who are living in this trough so they are trying to work with the town.

Commissioner McElraft said she has just heard that we have input from Fish and Wildlife, we have input from the Coastal Federation, we have input from DWQ and she asked, “Did we get input from the citizens”?

No further comments were forthcoming on this subject. 

Mayor Schools said there is a Motion on the floor to go forward with the purchase of the land and he called for a vote.

The board voted, with a split vote of 3-2 to approve the Land Purchase Contract and move forward with it. Voting for approval of the motion were Commissioners Farmer, Eckhardt and Marks.  Voting Against the Motion was Commissioners McElraft and Messer.  Motion carried.

Mr. Rush reminded the Board that the Resolution Authorizing the Installment Financing Agreement does two things.  It authorizes an Installment Finance Agreement of up to $ 550,000. for the purchase of the land over a 2 year term and it also refinances three existing debts the town has into a 3 year term would result in an amount of savings anywhere between $2,500 and $10,000 over the life of the loan.  That is also part of the resolution that is being considered.

Commissioner Eckhardt made a motion to approve the Resolution Authorizing the Installment Financing Agreement.

Commissioner Farmer complimented Mr. Rush on how he has put all of this together.

The board voted, with a split vote of 3-2, to approve the Resolution Authorizing the Installment Financing Agreement.  Voting for the motion was Commissioners Farmer, Eckhardt and Marks.  Voting again the motion was Commissioners McElraft and Messer.  Motion carried.

 

RESOLUTION AUTHORIZING THE TOWN MANGER TO SUBMIT PUBLIC ACCESS GRANT APPLICATIONS

BACKGROUND INFORMATION:  Approval of the attached resolution authorizing three grant applications to the NC Division of Coastal Management (CAMA) for public water access projects is being requested.  The total amount requested is $155,707.  A total local match of $51,903 is required if these grants are awarded to the Town. 

The Town has historically utilized CAMA public access grant funds to expand, enhance, and maintain public access points in Emerald Isle.  Due to the diligent work of Town staff, the Town has been fortunate to receive several CAMA grants in recent years.  Recent projects funded with CAMA grant funds include the Western Ocean Regional Access (WORA) purchase, construction of visitor amenities at the WORA, the replacement of the Wyndtree Drive ocean walkway, and others.   

Deadline for 2002 CAMA grant applications is later this month.  If the Board concurs, staff will prepare three grant applications for the following projects:

  1. Lee Street Walkway Replacement – The existing walkway at Lee Street is approximately 20 years old.  This walkway, along with Seagull Drive, has been identified by Parks and Recreation staff as the highest priority for the replacement of existing walkways.  The total grant request is $10,987, which would be matched with $3,663 in the FY 02-03 General Fund budget.
  1. Seagull Road Walkway Replacement – The existing walkway at Seagull Road is approximately 15 years old, and along with Lee Street, is the Parks and Recreation Department’s top priority for walkway replacement.  The total grant request is $14,325, which would be matched with $4,775 in the FY 02-03 General Fund budget.
  1. Coast Guard Road Storm Water Site Public Sound Access – This grant application requests funding for the construction of a dock, canoe / kayak launch area, parking, and access road at the 40.7 acre tract planned for the storm water project.  This grant application requests funding for some of the same items in the conceptual plan for the park that was discussed at the Board’s March meeting.  As communicated in previous correspondence to the Board, we did not apply for the Land and Water Conservation Fund (LWCF) grant that was authorized at the March meeting due to difficulty in completing some of the application requirements in time for their April 2 deadline.  The CAMA grant proposed now would fund some of the items included in the conceptual plan for the park, and the Town could seek LWCF funds, or other grant funds, for the remainder of the park in 2003.  The cost-share for the CAMA grant is actually more favorable (25% local match) than the cost-share for the LWCF grant (50% local match), so the Town could accomplish the project at a lower cost if a portion is funded by CAMA grant funds.  As noted at the March 12 meeting, I believe that the additional cost to develop a park at the 40.7 acre tract can be accommodated within the existing 2 cents on the tax rate that is allocated for the storm water project.
 

RESOLUTION AUTHORIZING THE TOWN MANAGER
TO SUBMIT PUBLIC ACCESS GRANT APPLICATIONS

WHEREAS, the North Carolina Division of Coastal Management provides annual grant funding to expand, enhance, and maintain public water access in North Carolina’s coastal counties, and

WHEREAS, the Town of Emerald Isle has historically utilized grant funds from this program for ocean and sound access points, and

WHEREAS, there is a need to replace existing walkways at existing ocean access points at Lee Street and Seagull Road, and

WHEREAS, the development of a public sound access, with canoe / kayak launching facilities, at the proposed Coast Guard Road storm water project site would enhance the recreational opportunities for Emerald Isle residents and visitors,

NOW, THEREFORE BE IS RESOLVED by the Town Board of the Town of Emerald Isle, North Carolina that:

(1)    The Town Manager is authorized to submit a grant application to the NC Division of Coastal Management for $10,987 to replace the existing wooden walkway at the Lee Street public ocean access.  This grant, if awarded, will be matched with a $3,663 appropriation in the Town’s FY 02-03 General Fund budget. 

(2)    The Town Manager is authorized to submit a grant application to the NC Division of Coastal Management for $14,325 to replace the existing wooden walkway at the Seagull Road public ocean access.  This grant, if awarded, will be matched with a $4,775 appropriation in the Town’s FY 02-03 General Fund budget. 

(3)    The Town Manager is authorized to submit a grant application to the NC Division of Coastal Management for $130,395 to develop a public sound access, a canoe / kayak launch area, parking, and access road at the proposed Coast Guard Road storm water project site.  This grant, if awarded, will be matched with a $43,465 appropriation in the project budget for the Coast Guard Road Storm Water Project

(4)    The Town Manager is authorized to complete all required applications and make necessary assurances to the NC Division of Coastal Management relative to theses grant applications.

 

 

Adopted this ___ day of ___________ , 2002.

 

 

                                                                        __________________________

Arthur B. Schools, Jr., Mayor

 

 

ATTEST:

 

______________________

Carolyn K. Custy, Certified Municipal Clerk

 

Alesia Sanderson, Parks and Recreation Director, presented the board with three (3) preliminary applications she has prepared for CAMA Funding and explained that CAMA is a two-part application process being that there is a preliminary application.  Favorable projects are then asked to submit final applications.  As of last year CAMA started rebuilding or reconstruction of deteriorating walkways.  Wyndtree Drive is one grant that has been received in the first years of funding.  Ms. Sanderson would like to see two additional walkways presented for this funding cycle and those are Lee Street and Sea Gull.  Both of those are approximately 20 years old.  The Lee Street walkway is the total project cost for removal and reconstruction of a handicapped accessible walkway with one handicapped parking space would be $14,650.  The CAMA funding aspect of that would be $10,987. with the towns $3, 663.  The Sea Gull walkway is a little more expensive because it is a little longer and there is room for two parking spaces with a total cost of $19,100. with $14,320. coming from CAMA and $ 4, 775. coming from the town. 

The improvements to the Coast Guard Road storm water site to include things that are fundable under CAMA funding which CAMA provides funding for water access.  Ms. Sanderson presented the scaled down project that includes creating or building Amberjack Drive to a parking area that provides parking and an 8’ walkway to the sound with an observation deck and a canoe and kayak launching area.  Total cost of that project is $173,860. with CAMA funding requesting $130,395. and the town financing $43,465. which is significantly down from the $242,000. originally requested.  This is a preliminary grant due April 26 and she asked the board’s permission to proceed with obtaining $3.00 on the $1.00 for the Town of Emerald Isle.

Commissioner Messer made a motion to approve the Resolution Authorizing the Town Manager to submit Public Access Grant Applications.

Commissioner Messer asked how the accesses were at the Point?  Ms. Sanderson said on the two that could be opened, the walkway would have to be build on those in order to make it accessible and that is due to the lay of the land and that is a decision the board will have to make because precedence has been set by the town that the town would not build the walkway, the community would build it and then the town would take it over and maintain it and replace it in the event it were destroyed.  The Wyndtree walkway will be reconstructed within the next 5 to 6 weeks.

Ms. Sanderson said these have to be three separate applications.  This is not one application.  If the final stage is reached, there would have to be a Resolution from the board on each one, not all three.

The board voted unanimously to approve the Resolution Authorizing the Town Manager to submit Public Access Grant Applications with a vote of 5-0.

EMERALD ISLE BEACH NOURISHMENT PROJECT

BACKGROUND INFORMATION: The Board of Commissioners is scheduled to consider three items pertaining to the Eastern Phase of the Emerald Isle beach nourishment project at this meeting. 

Resolution Authorizing the Town Manager Enter into a Contract with Coastal Science and Engineering for Beach Nourishment Design Services – Eastern Reach

Coastal Science and Engineering has submitted the attached technical proposal and cost proposal to the Town for various tasks associated with the nourishment of the eastern reach of Emerald Isle, which is scheduled to begin in November 2002.  CSE’s technical proposal outlines the scope of work and the cost proposal establishes an estimated budget for each task to be completed.  Dr. Tim Kana, CSE, is in attendance at this meeting to explain their proposals. 

The contract document will establish a maximum amount equal to the costs outlined in CSE’s cost proposal.  The attached resolution authorizes the Town Manager to execute a contract with CSE for this work.  (The Town Attorney will review the language in the contract prior to execution.)  The Board should note that the total estimated cost presented by CSE is $497,220, and this cost covers all design work, bid process coordination, construction administration, pre- and post- project surveys, and the preparation of a final report on the project.  The Board should note that the attached resolution authorizes a contract with a maximum amount of only $274,104 at this time.  This amount will cover tasks 1-7 in CSE’s proposal, which represents all pre-construction activities.  I will present a subsequent resolution to the Board of Commissioners later this year for all construction phase and post-construction phase activities (construction administration, etc.). 

It is proposed to split CSE’s proposal into two segments in order to avoid formal obligation of Town funds before they are actually needed.  The total nourishment project cost, including design, construction, and other associated phases, will be financed with general obligation bond proceeds.  Because the Town will not actually sell the bonds until later this year, it must “up-front” the money for any project expenses incurred prior to the sale of the bonds.  The Town’s Beach Nourishment Fund currently has a balance of approximately $285,000, and It is proposed to utilize this cash on hand to fund the first segment of CSE’s proposal.

Project Budget Ordinances

The below attached project budget ordinances formally establish the budgets for each phase of the overall nourishment project.  All expenditures associated with the various phases of the overall project will be charged to these project budgets, which are separate from the Town’s General Fund and the Beach Nourishment Fund.  The project budget ordinances are multi-year ordinances that will remain in effect until the overall project is completed, and are not subject to the fiscal year calendar that the General Fund follows.

The Board should note that these project budget ordinances are nearly identical to the budget estimate submitted by CSE in January 2002.  However, some adjustments have been made to the budget line items to 1) reflect some additional costs associated with the design of the eastern reach, 2) eliminate the need to budget for turtle monitoring, as this expense will be covered by the Carteret County Beach Commission, 3) allocate the entire contingency, plus a small additional amount, to the western reach due to the fact that there is more uncertainty surrounding this phase, and 4) slightly reduce the construction budget for the eastern reach to shift additional contingency to the western phase. 

These budget amounts represent the bottom lines for each phase of the project.  As noted above, there is some contingency allocated for the western phase.  There is no contingency allocated for the eastern reach, and any cost overruns in any line item will ultimately result in a smaller volume of sand placed on the beach.  It will be extremely important for the Town and CSE to keep the costs of this project in line with the budget amounts.

The Board should also note that this project budget ordinance is established for the accounting of direct capital project revenues (bond proceeds) and expenditures only.  A separate Capital Reserve Fund will be established to account for the receipt of special district taxes, room occupancy taxes, etc. and the debt service payments, etc. when the annual budget is adopted by the Board in June.

Reimbursement Resolution

The attached reimbursement resolution is merely a procedural resolution that the Board must approve in order for the Town to reimburse itself (with bond proceeds) for any project expenditures that are incurred prior to the sale of the bonds.  This will enable the Town to replenish any reserve funds or fund balance that is used prior to the sale of the bonds.

 

TOWN OF EMERALD ISLE
CAPITAL PROJECT BUDGET ORDINANCE
BEACH NOURISHMENT – EASTERN PHASE

 

Be it ordained by the Board of Commissioners of the Town of Emerald Isle that, pursuant to NCGS 159-13.2, the following appropriations are made to the Capital Projects Fund and that the following revenues are anticipated to be available to meet these appropriations:

Revenues

General Obligation Bond Proceeds  $   10,165,000

TOTAL      $   10,165,000

 

Expenditures

Engineering / Design / Permitting $       275,000

Legal and Miscellaneous        65,000

Dredge Mobilization    1,400,000

Construction    8,000,000

Construction Administration     225,000

Turtle Trawling       150,000

Tire Recovery          50,000

TOTAL       $  10,165,000

 

Copies of this ordinance shall be filed with the Finance Officer, Budget Officer, and Town Clerk, to be kept on file by them for their direction in the disbursement of Town funds for this project.

 

Adopted this ______ day of _____________ , 2002.

 

                        ___________________________

                        Arthur B. Schools, Jr., Mayor

Attest:

 

 

________________________

TOWN OF EMERALD ISLE
CAPITAL PROJECT BUDGET ORDINANCE
BEACH NOURISHMENT PROJECT MONITORING - EASTERN AND WESTERN PHASES

 

Be it ordained by the Board of Commissioners of the Town of Emerald Isle that, pursuant to NCGS 159-13.2, the following appropriations are made to the Capital Projects Fund and that the following revenues are anticipated to be available to meet these appropriations:

Revenues

General Obligation Bond Proceeds $    450,000 

TOTAL     $    450,000  

 

Expenditures

Environmental Monitoring    $    250,000

Beach / Sediment Surveys       200,000

TOTAL     $    450,000

   

Copies of this ordinance shall be filed with the Finance Officer, Budget Officer, and Town Clerk, to be kept on file by them for their direction in the disbursement of Town funds for this project.

 

Adopted this ______ day of _____________ , 2002.

 

                        ___________________________

                        Arthur B. Schools, Jr., Mayor

 

Attest:

 

 

_____________________________

Carolyn Custy, Certified Municipal Clerk


 

TOWN OF EMERALD ISLE
CAPITAL PROJECT BUDGET ORDINANCE
BEACH NOURISHMENT – WESTERN PHASE

 

Be it ordained by the Board of Commissioners of the Town of Emerald Isle that, pursuant to NCGS 159-13.2, the following appropriations are made to the Capital Projects Fund and that the following revenues are anticipated to be available to meet these appropriations:  

Revenues

General Obligation Bond Proceeds $     6,385,000

TOTAL    $     6,385,000

Expenditures

Environmental Studies / Permitting $       180,000

Engineering / Design            245,000

Legal and Miscellaneous        65,000

Dredge Mobilization    1,200,000

Construction    4,140,000

Construction Administration        75,000

Contingency       480,000

 

TOTAL       $  6,385,000

 

Copies of this ordinance shall be filed with the Finance Officer, Budget Officer, and Town Clerk, to be kept on file by them for their direction in the disbursement of Town funds for this project.

 

Adopted this ______ day of _____________ , 2002.

 

                        ___________________________

                        Arthur B. Schools, Jr., Mayor

 

Attest:

 

 

_____________________________

Carolyn Custy, Certified Municipal Clerk

 

 

            Mr. Rush explained that the total amount to be authorized tonight is  $274,104.  At this point in time the town will have to upfront the money to meet the obligation of the bonds until they are sold in the fall from the beach nourishment fund and cash on hand.  The actual total is $497,000 that includes construction and administration fees of the project.  Additional authorizations will be asked for later on in the summer for additional funds.

            There are three-project budget ordinances to be approved by the board to establish separate budgets for the eastern phase, the western phase and also the post project monitoring.  Again, this is all financed by the bond proceeds.

            A Reimbursement Resolution is also included for approval that will allow for the upfront monies the town has to lay out prior to the sale of the bonds.     

            Mr. Tim Kana discussed a technical proposal for what comes next and a cost proposal.  The format of the technical proposal follows very closely the format for Pine Knoll Shores and Indian Beach.

            As the technical outline shows there are 9 tasks to be performed.  Seven is what the board is being asked to authorize.  Number 8 is construction administration and number 9 is the project close-out and final report and recommendation for acceptance.

            Task 1 – Initial surveys which are required as part of the normal work for Emerald Isle. Many surveys have already been done for Pine Knoll Shores , Indian Beach and the County, but the borrow area has not been fully defined for the stretch that goes along Emerald Isle.  By plan, two years ago, they anticipated doing additional borings.  Sixty (60) additional borings in the existing borrow area to better define what is there now and also to go deeper than years before.  The purpose of that is to look at possible options and modify the borrow areas possibly to get more cost effective and better quality material.

            Mr. Kana said one of the issues they are charged with is to address certain environmental impacts.  The particular question that they are trying to address is what is the turbidity at the borrow site and what is the level of the turbidity at the beach.  If the type of dredge is changed, maybe using a cutter dredge instead of a hopper dredge, that may impact the turbidity on the shore.

            Mr. Kana suggested that the board and Mr. Rush set aside some time to go through the scope of the detail because of lot of little technical issues that they have to make sure they are going in the direction the board wants them to go in.

            Task 2 -  Coastal Process Analysis and Modeling.  This is just an analysis and is pretty straight forward.

            Task 3 – Engineering Design Report, which is a document that sums up what is done, why is it done and outlines the various options and the engineering rationale.  This document becomes important after the fact if there is a big storm and FEMA comes in.  There may be some reimbursement of a portion of the project damaged by that particular major storm.

            Task 4 – Permit Coordination.  We have a permit in hand but there is no permit to dig deeper or modify the borrow area that may be better for Emerald Isle. Mr. Kana said they wanted to learn from the experiences at Pine Knoll Shores and Indian Beach so they could attempt to do things better or differently to be more efficiently and to give more sand for the money and hopefully to do it without killing more turtles as was unfortunately done in Pine Knoll Shores.

            Task 5 – Final Design Survey and Environmental Monitoring Coordination.  Mr. Kana said just before they go to the street with the plan, there has to be a survey of the condition of the beach.  Sort of a base line but much more detailed than anything that has been done off-shore.  That survey needs to be completed by June at the latest.  Some requirements for environmental monitoring were issues.  Mr. Kana said they are required, under the permits, to do environmental monitoring on a periodic basis so there is some position and for follow up environmental monitoring coordination.

            Task 6 – Final Plans, Specifications, Contract Documents for the project.  These have to be prepared and make sure that they meet all State procurement regulations, local ordinances that are on the books and plans have to be clear and as detailed as possible.  You want to give the perspective contractors as much information as possible so they do not come back with questions. Questions from contractors usually come back at a higher cost.

            Task 7 – Contract Bid Coordination.  This is interviewing contractors, bringing them to the site so they can see it.  The more liaison there is between the contractor, the town and the engineers, the more likelihood there will be an opportunity to get  fairly good results. 

            Mr. Kana presented the below listed Time Line which is critical if this project is to be done in the next environmental window between late November and early April of next year and particularly if we are going to try to shrink the environmental window, perhaps postponing it until December 1st instead of 16 November.  The plans are going to have to be gotten onto the street. 

            Mr. Kana said that all States have severe environmental restrictions for dredging in the summer time. There are only 20 Hopper dredges in the U.S. that sit idle in the summer months because of environmental concerns.  As a result, a lot of the projects come due in the early fall. The more the rush can be beat, the more chance there is for getting a contractor. If the bids are put out in late July and get the bids back in late August, that will give the contractor up to three months to plan his disposition and that translates to savings.  

            The time Line is:

 

§         April 02 – Initial Final Design

§         May 02 – Supplement Offshore Borrow Survey

§         April–May – Supplemental Coastal Process Survey and Analysis

§         June 02 –             Submit Requests for minor modifications of the permits if applicable.

§         April – July – Final Design Analysis

§         June 02 – Base Line Survey of Emerald Isle for Final Plan

§         July 02 – Prepare plans and specs and contract documents

§         August 02 – Bid Documents to Contractors

§         Sept. 02 – Construction Bids Due

§         Nov. 02 – Fourth Environmental Survey

§         Dec 02 – March 03 -  Construction

§         April 03 – Contingency Construction period

§         May 03 – Recommendation for acceptance

 

            A critical decision to be made is to whether to proceed doing the project the same way as in Pine Knoll Shores and Indian Beach with no modifications or do you want to interject the possibility of getting sand from a deeper section of the borrow area so that a savings of substantial money might be accomplished.

            Commissioner Eckhardt said he likes the idea of cheaper sand because that means hopefully good sand at a cheaper price.  He is surprised that the cutter head dredge would be thrown in at this time because it seems to him it could jeopardize the project in some way.  He asked Mr. Kana to comment on why that was not considered at Pine Knoll Shores and Indian Beach.

            Mr. Kana said it was considered but the reason they switched to the Hopper dredge was the permitting agencies were encouraging them to do shallow cuts.  You cannot do a shallow cut with a cutter head dredge.  You have to have at least a 5 or 6 foot section so there are certain operational constraints.  There was a 5% chance with that scheme that a circle dust pan dredge ( like the cutter head dredge but it is rigged up to cut a shallow cut) was a possibility. That would be a direct pump to the beach. That was abandoned when they started mixing the borrow areas A & B, having to exchange back and forth, so that basically precluded a single dredge coming in and just cutting a path through.  Now it is looking like there is an opportunity possibly to do a swat because A actually runs into B.  Your situation is a little different and there is a little bit more flexibility. 

            Commissioner Eckhardt said as long as it does not jeopardize the project it is something we should look at. 

            Commissioner Marks asked what the effect would be on the shore from the storms if the borrow is deepened?  Mr. Kana said the analysis was done from 4 different cuts and the environmental impact statement for this permit, the calculations are in there for those deeper cuts and they fulfill the same requirements as the shallower cuts do.   The agencies were objecting to the deeper cuts and saying why don’t you do shallow cuts because they were not sure of the biological impact.  They were thinking it would recover biologically if the shallower cuts were done.

            Mr. Kana said the complications are shown in the EIS and they show the same results as the shallower cuts. 

            Mr. Harry Thompson questioned the possibility of delaying the project.  He does not understand why that would be done.  Mr. Kana answered one of the charges from the board, as he understands it, was to see if there are other ways to have better or more environmental protection. One of the ways of doing that is to do the project in the coldest month of the year.  The further it is postponed, the colder the water gets to avoid the turtles.  They are around all year but when the temperatures drop to 57 degrees, the incident of turtles is way done.

            Another question was asked about how much down time for the dredge has been allowed?  Mr. Kana indicated down time has already been factored into the project.

            Commissioner Farmer said the idea of starting late, even by a day, makes her very nervous because you just don’t know what is coming.  She would rather start working on November 16.

            Mayor Schools commented there is a need to look at the option of starting late.

            John Kilgore, 106 Bogue Court, said he does not see why you would want to start late.  Why is it being considered to put the town in that situation?  He said, we would be crammed into a window and could probably do nothing until next year.  We would have to pump as much sand as you could on a permit during that window. 

     Commissioner Farmer said this is exactly how she feels.   

            The question was asked of how down time for the dredge has been allowed?  There is a very short window.  Mr. Kana replied the work could be done from November 16th to the 15th of April.  The only exception would be if there was a little bit left to do and then they would go to April 30.  The down time has been factored into the schedule.

            Mr. Kana said he has 4 months for construction, December through March.  The permits give two weeks on both ends so there are actually 5 months.  He agreed that as much time as possible is desirable however, he is also responding from comments from the board that asks if there is anyway to lessen the potential for an adverse environmental impact, being turtles.

            Commissioner Farmer felt that Mr. Kana was being put into the position that he was actually encouraging doing this and that is not true.  It is for an option. Mr. Kana said, they are restrained by permits, regardless of what they want to do.       

            The question was asked about how far west is the Phase I supposed to go?

            Mr. Kana said this question has to be answered in his part of the work.  The short answer is “whatever is left over in Phase III has to be able to be done from the Inlet shoals if a permit can be obtained for that and there are limitations that you don’t want to pump more than 25,000 to 30,000 feet from where the dredge is to the end of the pipeline.    

            Mr. Rush said the boundary they are working on now calls for about 23,000 linear feet for Phase II, the eastern phase, that will get to around Mile Marker 15 ½ on Emerald Isle but there is some possibility that the boundary could be extended further westward, perhaps around Mile Marker 15 to 18.  This needs to be refined in the design process by the board.  Mr. Rush noted it would be past where the old Emerald Isle Pier was.  Mile Marker 15 ½ is somewhere around Cedar Tree Lane but it could be moved further west.

            Mayor Schools noted that RFQs have been requested for the Inlet Relocation/Nourishment phase of the project.

            Commissioner McElraft suggested having a workshop with Mr. Kana and others to discuss concerns.

            Commissioner Farmer said there is a concern about the sand quality.  Commissioner Marks said she and Commissioner Farmer walked the beach this past weekend in Pine Knoll Shores and the sand quality was not better at all. 

            Mr. Kana explained that with the exception of a 3,000 foot reach right around the Iron Steamer Pier, and a little to the west, there is a lot of rhymetic topography and so you have a concentration of shells.  He also noted that most of the sand that is in the trough on the outer bar is .2mm fine sand. Samples are collected on a daily basis where a lot of information is obtained. Mr. Kana said with the use of a Hopper it would slice up a shallow cutting where you might get the better sand but with the next cut it would be shells.  If the Cutterhead is used, it would all be mixed right through the process. He said they use a Hopper.  The advantage of the Cutterhead is that everything in the borrow area has to load to the beach including mud.

            Commissioner Marks asked if one dredge would have a higher impact on turtles than the other?  Mr. Kana said Hopper’s are definitely more likely to get turtles without question.

            Mr. Lee Lipsitz commented he has had the opportunity to visit one of the dredges and he feels it should be mandatory for the commissioners to take the same trip. It would help them so much.  They would not focus on visual aspects of it in the beginning.  Commissioner Marks interjected; it is not about what the beach looks like.  It is not about the color of the sand, but the quality.  She said she does not need to go on a dredge to see what is coming out on the beach.  Mr. Lipsitz said she needed to go to understand the sophistication of the whole thing. 

            Commissioner Eckhardt said he thinks a work session is really important.  He has questions that need to be addressed.  He asked that two things be brought to the work session (1) How can we handle, the best way to handle, quality assurance and quality control?  Either Mr. Kana’s group or an outside group, whom ever handles that, he wants to be assured that this is taken into consideration.  If the core samples that were given to the Corps would show that the first two miles were shaky and after that you have good sand.  That is the sand we want.

            Commissioner Eckhardt continued that the other thing he would like is to look at the redundancies in the physical survey work that will be done.  He attended a meeting where Chris Freeman went over the three-dimensional profiling he does.  He sounded very reasonably priced and very effective.  Commissioner Eckhardt asked that Mr. Kana come to that meeting knowing that this board does not want that redundancy.  It would like to save money by addressing that through the surveys and what is being done in the Beach Commission.

            Commissioner Farmer made a motion to approve the Resolution Authorizing the Town Manager to enter into a contract with Coastal Science and Engineering and the approve the three Capital Project Budget Ordinances for the overall beach nourishment and to approve the Reimbursement Resolution.  The board voted unanimous, with a vote of 5-0 for approval.  Motion carried.    

REVISIONS TO TOWN SAFETY POLICY

              It is asked that the Board of Commissioners approve the revisions to the Town’s Safety Policy.  The Safety Policy is comprised of five separate policies, and a copy of the updated versions of each of the five policies is attached at the end of these minutes. 

            The revisions were drafted by the Town’s Safety Committee, under the leadership of Fire Chief/Safety Officer Bill Walker after a recent voluntary inspection by OSHA.  The Town received high marks from this inspection; however, there was a need for several improvements to better insure the safety of our employees.  The revisions of these policies should satisfactorily address OSHA’s expressed concerns.

            A summarization of the changes to the safety policies is:

 

OSHA Standard 1903:

 

·        Mandates all required OSHA posters to be displayed in each department

·        Changes the times OSHA form 300-A is to be displayed

o       Used to be displayed during month of February only.

o       Now must be displayed Feb. 1 through April 30th each year.

o       This form must now be certified each year by the Town Manager

 

OSHA Standard 1904:

 

·        Revised to meet OSHA’s new Recordkeeping rules.  Eliminates OSHA forms 100 and 200.  Implements OSHA form 300 and 300a (new forms).

·        Mandates a new form “Town of Emerald Isle Supplement to Form 19” be filled out with form 19 with each reported injury.

 

Safety & Health Policy:

·        Mandates each Department Head is responsible for maintaining their departments required training each year.

·        Safety Committee to review all accidents and injuries each quarter, Make recommendations back to department heads to prevent further injuries.  Department Heads then must forward back to the safety committee documentation that these changes have been implemented for the safety committee to follow up on.

·        Wrote out each departments Annual Required OSHA Classes

·        Changed personal names to Job Descriptions

Hazard Communications Policy:

·        Mandates each Department Head is responsible for maintaining their departments:

o       MSDS’s, keeping them updated and maintaining a master list in the front of the book while forwarding one to the Fire Chief.

o       Required training each year

·        Changed personal names to Job Descriptions

 

Exposure Control Policy:

·        Added to the policy, the procedures for an employee who has become exposed to bodily fluids, where and when to go to be tested at no expense to the employee.

Commissioner McElraft made a motion to approve the revised Policies of the Towns Safety Policy.  The board voted unanimous, with a vote of 5-0.  Motion carried.

ORDINANCE AMENDING CHAPTER 19 – ZONING – OF THE EMERALD ISLE CODE OF ORDINANCES TO REMOVE TOWNHOUSES AND CONDOMINIUMS FROM THE LIST OF PERMITTED USES IN THE MH-1 DISTRICT  (2ND READING)

The Board of Commissioners is being asked to consider the attached ordinance for the second time.  The ordinance, if approved, would no longer allow the construction of condominiums and townhouses in the Mobile Home – 1 zoning district.  

The ordinance was approved at the March meeting by a 3-2 vote.  NC General Statutes require a 2/3 majority (in our case, 4-1 vote) to approve ordinance amendments on their first reading, and this majority was not achieved at the March meeting.  In order to formally enact the ordinance amendment, the Board of Commissioners must conduct a second vote.  On the second reading, only a simple majority is necessary to enact an ordinance.  If the ordinance is again approved by a 3-2 vote, it will be officially adopted by the Town and will become effective immediately.

It should be noted that the Planning Board discussed this issue at its December, January, and February meetings, and ultimately voted to recommend approval by a 4-3 vote.  Supporting information on this item has been previously forwarded to the Board of Commissioners, and we ask that you please refer to that information if necessary or desired. 

 

ORDINANCE AMENDING CHAPTER 19 (ZONING) OF THE EMERALD ISLE CODE OF ORDINANCES TO REMOVE CONDOMINIUMS AND TOWNHOUSES FROM THE TABLE OF PERMITTED USES IN THE MH-1 DISTRICT

 

Whereas, townhouses and condominiums are currently permitted in the Mobile Home –1 (MH-1) zoning district, and

Whereas, the Emerald Isle Board of Commissioners is concerned about compatibility and density of development, and

Whereas, the Planning Board has recommended the approval of this ordinance amendment,

 

Now, therefore, be it resolved by the Emerald Isle Board of Commissioners that Chapter 19 – Zoning is hereby amended as follows:

Section 19-82 Tabulation of permitted and special uses shall be amended so that “Dwellings, townhouses, and condominiums” shall not be listed as a permitted use in the MH-1 district.

This ordinance shall become effective immediately upon its adoption.  If any section, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

 

Adopted this _____ day of _____________ , 2002.

 

 

                                                                        ________________________

                                                                        Arthur B. Schools, Jr., Mayor

 

Attest:

 

_________________________

Carolyn Custy, Town Clerk

 

 

            Commissioner McElraft objected saying she feels this is taking property rights away and thinks this will be another lawsuit for the town.

            Commissioner Marks disagreed with Commissioner McElraft saying this was changed in 1993 to allow one person who owned property that was zoned Mobile Homes to allow condos.  That person did not take advantage of that rezoning.  This was what was actually spot zoning to her understanding. 

            Commissioner Farmer commented the board is not prohibiting townhouses and condos in Emerald Isle but it would require a zoning change and at that point it can be decided if it is in the best interest of the community.

            Commissioner Eckhardt said they are trying to protect people who are next to these areas.  It is not just for the town, it is for the people who live next to these areas.  That is what zoning is for. That is why we have zoning and he cannot imagine why we would not want that.

            Commissioner Farmer made a motion to approve ORDINANCE AMENDING CHAPTER 19 – ZONING – OF THE EMERALD ISLE CODE OF ORDINANCES TO REMOVE TOWNHOUSES AND CONDOMINIUMS FROM THE LIST OF PERMITTED USES IN THE MH-1 DISTRICT  (2ND READING).  The board voted, with a split vote of 3-2, with Commissioners Farmer, Eckhardt and Marks voting for and Commissioners Messer and McElraft voting against.  Motion carried.

 

ORDINANCE AMENDING CHAPTER 17 – STREETS AND SIDEWALKS – OF THE EMERALD ISLE CODE OF ORDINANCES TO ADJUST STANDARDS FOR PUBLIC AND PRIVATE STREETS

Consideration is being asked from the Board of Commissioners on the attached ordinance that adjusts the standards for public and private streets.  

The attached ordinance increases the required right-of-way for public streets from 50 feet to 55 feet.  The ordinance also increases the required right-of-way for private streets from 40 feet with 10 feet of utility easements to 55 feet with no utility easements required. 

The ordinance also establishes town standards for streets that utilize curb and gutter.  Developers will still have the option of utilizing ditches or curb and gutter, but will be required to meet the appropriate standards in either case.  The new standards for streets with curb and gutter are consistent with NCDOT’s specifications.

The ordinance also decreases the required depth of ditches from 2 feet 6 inches to 2 feet, and establishes cul-de-sac standards.  The cul-de-sac standards are consistent with NCDOT’s specifications. 

There are also new requirements for driveway construction, including the formalization of a driveway permit process that has been in use by the Planning and Inspections Department since July 2001.

The main concepts of the attached ordinance were approved by a 7-0 vote of the Planning Board at their February meeting.  The actual text of the attached ordinance was approved by a 5-0 vote of the Planning Board at their March meeting.  

ORDINANCE AMENDING CHAPTER 17 (STREETS AND SIDEWALKS) OF
THE EMERALD ISLE CODE OF ORDINANCES TO ADJUST THE
STANDARDS FOR PUBLIC AND PRIVATE STREETS

 

Whereas, Chapter 17 – Streets and Sidewalks - of the Emerald Isle Code of Ordinances outlines the right-of-way and construction standards for pubic and private streets, and 

Whereas, the Planning Board has studied these standards and recommends a wider dedicated right-of-way for both public and private streets, and

Whereas, the Town does not currently have standards for cul-de-sacs, and must insure that cul-de-sacs can accommodate the largest emergency services equipment operated in the Town, and

Whereas, the Planning Board recommends adjustments to ditching standards and the addition of curb and gutter standards to insure adequate drainage and safety of vehicular and pedestrian traffic,

Now, therefore, be it ordained by the Emerald Isle Board of Commissioners that Chapter 17- Streets and Sidewalks - is hereby amended as follows:

1.      Section 17-32 (a) Minimum standards for the town streets, Generally, is amended to read as follows: 

Generally.  All streets within the Town shall be dedicated to public use unless otherwise allowed by the subdivision ordinance.  The use of private streets is specifically authorized only in residential subdivisions, group housing developments and other special developments, and planned unit developments that are authorized in accordance with Chapter 18.  The procedures for dedication are specified in the subdivision ordinance as defined in section 18-3.  All public streets dedicated after August 12, 1980 shall be warranted by the developer / owner for a period of one (1) year from the date of acceptance by the Board of Commissioners.  

2.      Section 17-32 (d) Minimum standards for the town streets, Minimum public street design standards, is amended to read as follows: 

“1)  Right-of-way – 50 55 feet

2)     Pavement width – 20 feet for streets utilizing ditches; a total of 27 feet of pavement (asphalt and concrete sections) from the back of the curb to the opposite back of the curb for streets utilizing curb and gutter; roll curbs are required

3)     Base width – 26 feet, for streets utilizing ditches and / or  curb and gutter

4)     Shoulder width – 6 feet each side for streets utilizing ditches

5)     Ditch width – V-type – 3:1 side slopes, for streets utilizing ditches

6)     Fill slope – 3:1 side slopes minimum

7)     Curb and gutter – 2 feet gutter, 3 inch radius curb face, 6 inch curb, as specified by NCDOT

8)     Intersection / turning radius- 30 feet

9)     Cul-de-sac right-of-way – 50 feet radius

10) Cul-de-sac pavement width – 35 feet radius, for streets utilizing ditches and / or curb and gutter”

 

3.      Section 17-32 (e) (1) Minimum standards for the town streets, Minimum private street design standards, Right-of-way, is amended to read as follows: 

 

“1)  Right-of-way – 40 55 feet, with 5-foot utility easement on each side of the  

street.”

2)     Pavement width – 20 feet for streets utilizing ditches; a total of 27 feet of pavement (asphalt and concrete sections) from the back of the curb to the opposite back of the curb for streets utilizing curb and gutter; roll curbs are required

3)     Base width – 26 feet, for streets utilizing ditches and / or  curb and gutter

4)     Shoulder width – 6 feet each side for streets utilizing ditches

5)     Ditch width – V-type – 3:1 side slopes, for streets utilizing ditches

6)     Fill slope – 3:1 side slopes minimum

7)     Curb and gutter – 2 feet gutter, 3 inch radius curb face, 6 inch curb, as specified by NCDOT

8)     Intersection / turning radius- 30 feet

9)     Cul-de-sac right-of-way – 50 feet radius

10) Cul-de-sac pavement width – 35 feet radius, for streets utilizing ditches and / or curb and gutter”

 

4.      Section 17-32 (f) Side ditches, is amended to read as follows: 

“Minimum depth of side ditches shall be two (2) feet, six (6) inches below centerline grade.”

5.   A new subsection (k) is added to Section 17-32, entitled Other street design standards, is hereby added and shall read as follows:

Other street design standards.  Transverse slopes in pavement and shoulders, sight distance, grade, horizontal and vertical curves, and superelevation shall be in accordance with minimum construction standards for Local Residential Subdivision Roads or Residential Collector Roads as published in NC Department of Transportation, Subdivision Roads – Minimum Design Standards. 

6.                             Section 17-57 Driveways, standards, is amended to read as follows:

“All persons engaging in driveway construction, reconstruction, repair, and alteration must secure a permit from the building inspector and must meet the following specifications:

 

1)     The plans for the proposed operation have been must be approved by the building inspector director of public works, to whom they shall be forwarded by the officer within a reasonable time after receipt thereof;

2)     The work shall be done according to the standard specifications of the town for public works of like character; , and shall slope away from the edge of existing pavement or curb and gutter at a rate of 3/8 inch per foot over a minimum distance of eight (8) feet.  All driveways shall be constructed to prevent storm water from running off from the driveway to the pavement of the existing public or private street.  All driveways shall have a maximum width of 16’ at the intersection with the public or private street.  

3)     The operation will not reasonably interfere with vehicular and pedestrian traffic, the demand and necessity for parking spaces, and the means of egress to and from the property affected and adjacent properties, and

4)     The health, welfare, and safety of the public will not be unreasonably impaired.

 

This ordinance shall become effective immediately upon its adoption.  If any section, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. 

 

Adopted this _____ day of _______________ , 2002.

 

 

                                                            ______________________________

                                                            Arthur B. Schools, Jr., Mayor

 

Attest:

 

_____________________________

Carolyn Custy, Town Clerk

 

 

 

            Commissioner McElraft questioned where does a street end and the parking lot begin when there is a public street, when there is a public street in a private commercial subdivision?  Mrs. Carol Angus, Building Inspections Department Head answered that the parking lot and the street would end at the property line.  Commissioner McElraft asked if Emerald Plantation had a public street, where would it end?  Mr. Rush said in Emerald Plantation currently, the main drive that goes from the traffic signal back into a residential area of Emerald Plantation is a private street. 

            Commissioner McElraft asked if there was a commercial subdivision and the town won’t allow private streets anymore, there would only be public streets, where would you consider that public street should stop and the obligation of maintenance begin on the commercial subdivision?  Mrs. Angus replied outside the 55 feet. That would be the entire right-of-way.  Mr. Rush said for Emerald Plantation, that would be from the traffic signal back to the residential area.  That would be publicly maintained.  The parking lot and interior drives with the shopping center itself is private property.

            Mr. Rush said within the parking area at Emerald Plantation is private property.  It is not a public street.  The same would be true of Reed Drive Extension Commercial Park.  If there were a new shopping center, the interior area would be private domain.  The new street will be a private road. 

            Commissioner McElraft noted that Powell Bill monies would not pay for the private roads.  That money is to maintain town public roads. 

            Commissioner Farmer said Reed Drive Extension is a perfect example of why there is a need for public roads in a commercial subdivision.  That is a road now that the town cannot enforce anything on.

            Mr. Rush clarified that this Ordinance deals with Chapter 17 and primarily deals with the standards of private and public streets.  The Planning Board also included language prohibiting private streets in commercial subdivisions.  The real substance of the Ordinance that prohibits private streets in commercial subdivisions is Chapter 18.  Mr. Rush said this ordinance primarily deals with the right-of-ways.  There is language in here that says it is consistent with Chapter 18.

            Commissioner Farmer said she hates to see “curbs and guttering” in the ordinance and she would prefer to remove it entirely.  She does understand the concern that if there are no standards there and curb and guttering is put in, we end up with very skinny roads with curbs for people to hit.  In this ordinance the pavement for a ditch road is 20 feet where with curbs and guttering is 27 feet.  She does not like the additional impervious surface and does not like the idea of channeling all of the storm water into one area.  She had rather have a sheet off the road.  She would prefer not to allow curb and guttering but if it is allowed, she would at least like the ordinance to made it clear that the developer is responsible for whatever storm water goes into the gutter and determine where the final destination of that storm water will be through the storm water management ordinance.

            Mr. Rush said any street constructed with curb and gutters will have to meet the town’s storm water management ordinance requirements.  Some language could be added to this ordinance to reinforces that thought and makes certain that that storm water will be handled with the appropriate methods outlined in the storm water ordinance.  This was drafted to make sure, in the future, the town did not permit streets that were very narrow with curbs and gutters.  There is no requirement for anyone to use curbs and gutters. It is simply an option.  If that option is used, there should be some standards that make sense.

            Commissioner Eckhardt mentioned that in talking about private street construction, he thinks it is important to have curbs and gutters.  He does not think there will be that much of it so he is not sure how much the town has to worry about impervious surface.  As long as there is the private street construction and an example to look at, as far as the 20 foot, he would like to have it so there would be some control.

            Attorney Taylor said his understanding from reading this drafting is that any street that comes before the town will require curb and guttering.  The answer was “No”.  Mr. Rush said they would be required to have 20 foot if they utilize ditches and if curbs and gutters are utilized, they would have to have 27 feet. 

Commissioner Farmer made a motion for approval that the board approve the Ordinance Amending Chapter 17 (Streets and Sidewalks) of the Emerald Isle Code of Ordinances to Adjust the Standards For Public and Private Streets and the board voted, with a split vote of 3-2 for approval.  Commissioners Eckhardt, Farmer and Marks voted for and Commissioners McElraft and Messer voted against the motion. 

            Mr. Rush noted that this Item will appear on the May Agenda for a second reading as it does require a 2/3 majority to pass and did not receive that with the first reading.

 

 

ORDINANCE AMENDING CHAPTER 18 – SUBDIVISIONS – OF THE EMERALD ISLE CODE OF ORDINANCES TO CLARIFY THE USE OF PRIVATE STREETS AND ADJUST THE STANDARDS FOR INTERSECTIONS

 

Consideration of the attached ordinance that clarifies the use of private streets in new subdivisions and adjusts the standards for intersections is being asked from the Town Board. 

The attached ordinance restricts the use of private streets to residential subdivisions, group housing developments and other special developments, and planned unit developments only.  Private streets would no longer be authorized in commercial subdivisions.

The ordinance also adjusts the angle of intersection for new streets.  The ordinance includes a requirement that no intersection shall occur at an angle less than 75 degrees, as opposed to the 45 degrees allowed in the current ordinance.  This change is consistent with NCDOT guidelines for intersections.

The concept of the attached ordinance was approved by a 4-3 vote of the Planning Board at their February meeting.  The actual text of the attached ordinance was approved by a 5-0 vote of the Planning Board at their March meeting.  

 

ORDINANCE AMENDING CHAPTER 18 (SUBDIVISIONS) OF
THE EMERALD ISLE CODE OF ORDINANCES TO CLARIFY THE USE OF PRIVATE STREETS AND TO ADJUST THE STANDARDS FOR INTERSECTIONS

 

Whereas, Chapter 18 – Subdivisions - of the Emerald Isle Code of Ordinances specifically authorizes the use of private streets in all types of subdivisions, residential or commercial, in Emerald Isle, and

Whereas, the Planning Board believes that private streets are not appropriate for commercial subdivision traffic and recommends that private streets no longer be authorized for commercial subdivisions, and

Whereas, the Planning Board recommends that the standards for intersections be amended to promote safety at new intersections,

Now, therefore, be it ordained by the Emerald Isle Board of Commissioners that Chapter 18- Subdivisions is hereby amended as follows:

 

  1. Section 18-43 (2) (b), Approval of special developments, Commercial and business condominiums, Design and construction standards, is amended to read as follows: 

 

“Each condominium unit or townhouse shall front on a public street or commonly owned street or area that conforms to the standards for public streets in Section 17-32 of the Emerald Isle Code of Ordinances.

 

  1. Section 18-61, Design standards, Generally, is amended by adding a new Subsection (1) entitled Use of Public and Private Streets, which shall to read as follows:

Use of Public and Private Streets.  The use of private streets is specifically authorized in residential subdivisions, group housing developments and other special developments, and planned unit developments that are authorized in accordance with this chapter.  All other subdivisions authorized in accordance with this chapter shall utilize public streets for access to subdivided lots.”   

  1. Existing Subsections 1 through 8 of Section 18-61, Design standards, Generally, are hereby renumbered 2 through 9 to accommodate the insertion of new Subsection 1 outlined above.  
  1. Section 18-61, Design standards, Generally, Subsection (5) (Renumbered) Intersections is hereby amended as follows:

Intersections.  Street intersections shall be as nearly at right angles as possible, and no intersection shall be at an angle less than seventy-five (75) forty-five (45) degrees.  No more than two (2) streets shall intersect at one point.”

 

This ordinance shall become effective immediately upon its adoption.  If any section, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. 

 

Adopted this _____ day of _______________ , 2002.

 

                                                            ______________________________

                                                            Arthur B. Schools, Jr., Mayor

 

Attest:

 

_____________________________

Carolyn Custy, Town Clerk

            Commissioner McElraft asked for clarification of “Group Housing and other special developments”.  Mr. Rush said this was like a townhouse project or condo project.  These developments would be a combination of lower density and higher density projects.  You could still have private streets in those projects.         

            Commissioner Messer said he has always had a problem with a public street going into a private subdivision.

Commissioner Eckhardt made a motion for approval of the Ordinance Amending Chapter 18 – Subdivision – of the Emerald Isle Code of Ordinances to Clarify The Use Of Private Streets and Adjust the Standards for Intersections.  The board voted, with a split vote of 3-2 for approval.  Voting for the motions was Commissioners Farmer, Eckhardt and Marks.  Voting against was Commissioners McElraft and Messer.

This item will come up before the board again in May for a second reading since it did not receive a 2/3 vote at the first reading.

             

APPOINTMENT OF MEMBERS TO NC58 CORRIDOR COMMITTEE

The Town is in receipt of letters from several members of the community indicating their interest in serving on a new committee that will study the NC 58 corridor and make recommendations to improve the function and aesthetics of that area of town.  The Board is scheduled to appoint the members of the new committee at this meeting.

The Board should clearly define the parameters of the NC 58 Committee’s work prior to instructing the committee to begin work.  Mr. Rush recommended to the Board the following:

Geographic Area:             Both sides of NC 58 from the base of the Cameron Langston bridge eastward to Town Hall; including Reed Drive and Loon Drive in commercial areas, a spur along Islander Drive south to the ocean, and a spur along Bogue Inlet Drive south to the pier

Size:                           12 – 15 members

 

Reresentation:   It is important to have equal representation among commercial interests and residential interests, however, there were a limited number of applications from the commercial sector.  In light of this, Mayor Schools has recommended the following:

 

                                    1 Town Commissioner

                                    1 Planning Board member

                                    3 members of the business community

                                    1 Revegetation Committee member

                                    6 citizens

                                    NCDOT representative (to be assigned by NCDOT)

 

Scope of Study:        

Architectural standards for new businesses

Incentives for existing businesses to improve their appearance

                                    Revegetation goals

Public investment in pedestrian amenities

Public investment in bicycle paths / sidewalks / etc.

Landscaping requirements

Public landscaping improvements

Preservation of gateway area

Areas to rezone for business use

Needed safety improvements

Other relevant issues as determined by the Town Board and/or the NC 58 Committee

 

Coordination / Support:

Ruth Leggett, Planner, NC Division of Community Assistance

Susan Suggs, Planner, NC Division of Community Assistance

Staff Participation:            Alesia Sanderson, Carol Angus, Frank Rush, Bob Conrad as necessary or desired

Final Product:

Recommendations Report from the NC 58 Committee (based on committee input; drafts to be prepared by Ruth Leggett)

These are recommendations, and the Board should amend, add, or delete these items as it deems appropriate. 

If the Board approves the NC 58 Committee members at this meeting, Ruth Leggett will be asked to organize the first meeting sometime in early or mid-May.

            Commissioner McElraft noted that 14 applications were received who really wanted to be on the committee.  Then the board started picking and choosing, leaving those three or four of those people off and picking more of the people it wanted on the committee.  She feels it is sad when someone wants to volunteer their services and the board does not take three or four more people and put them on there.  There are 15 members on there anyway, what are three or four more going to do.  She objects to the fact that two of the people that have interest in the Gateway area, that the town will probably have to buy some of their property or get them to donate some of their property or whatever, are not even going to be on this committee.  She feels they need to have some input too.  It saddens her that the board pulled off people who really wanted to be on this committee. 

            Commissioner Farmer replied it would sadden her too.  She does not know of anyone who was pulled off any committee.  We have four applications from people who might be interested in being on the committee.  Just as we have with many committees, we have a good number of applicants.  There were some guidelines.  The board wanted two people from the Planning Board, two people from the revegetation committee, two commissioners were interested in being on it and she is one of them.  It was suggested that the committee be limited to 12 to 15 people to keep it manageable and that is exactly what has been done.

            Commissioner McElraft made a motion that all the committee members that Mayor Schools suggested plus everyone who applied be included on the committee.

            Commissioner Eckhardt commented that based on the management size of the committee, which he thought was brought up and he thought everyone understood, he thinks the board should go with that size.  He thinks there is a good balance of business and residents.  He thinks there will be input from all sides and feels it is an excellent balance.

            Commissioner McElraft said, “How do we know that the input from those three or four people is not just a important as those that were added later that did not request to be on the committee.  She really feels it is very important that if someone who has taken the time to apply and really wanted to be on this committee, for the board not to judge what kind of input they would have”.

            Commissioner Farmer said she does not know of anyone with the possible exception of someone from the Planning Board who did not want to be on this committee and was put on it.  The revegetation committee is going to be choosing amongst themselves, which is appropriate, from their committee.  She also agreed that this is a wonderful group.

            Attorney Taylor said one of the things that has been presented to the board looks like a motion is needed to establish the committee but he does not see anyone’s name in there.  Everyone talks about a group of people and there is no way from the Minutes to reflect what you are actually deciding tonight unless we have the names of the people you want included as appointed to the committee.  There seems to be some board members that think that everyone who wanted to be on the committee is on it and other board members think that “no” some people were excluded and it is really difficult for you to pass a motion without those names.  As Mr. Rush has suggested, most appointments are done on a balloting mechanism, i.e. first name, yeas or nays, second name yeas or nays, etc. .  Attorney Taylor said what is before the board tonight is really all they can do without the names.  What they have to vote is that they want to establish this committee and vote on the people that they want to appoint it.

            Mr. Rush said the intent was for the board to identify those individuals they want to appoint to this committee.  He has not heard any names identified yet but that is what is supposed to be done tonight.

            Commissioner Farmer said she would be happy to do that but there is a motion on the table already so she can’t.

            Attorney Taylor asked Commissioner McElraft to consider withdrawing her motion because the board could not act on her motion because it is not known who the people are.  He said if she wanted to include everybody, if there is a list of people, he does not know who they are.

            Commissioner McElraft explained there was a deadline for those applications.  At the end of deadline, there were 14 people who had applied.  There was a board committee that suggested 12 to 15 members.  Commissioner McElraft said it was her opinion that the board takes all 14. Then some other commissioners decided they wanted another commissioner, they wanted to add a couple of other people which is fine but don’t take away the people who applied unless it can be explained why the board does not want them on it.  She has heard rumor of why one person was not picked and it is very embarrassing for that person to go back and tell why he or she was not on the committee.

            Attorney Taylor said he does not have a problem with what Commissioner McElraft is saying, it just that we need to have the names so that we can know what you are doing tonight because what you are doing including everybody doesn’t put it in the Minutes to inform the public of what you are doing. 

            Commissioner McElraft said, this was at the deadline date, applications were Doje Marks as a Commissioner, Georgia Murray, Paxon Holz, Ronnie Watson, Jerry Huml, Mark Brennesholtz, Nancy Williamson, Tom Ross, Nita Hedreen, Brad Fischer, Fred Fremaux, Ed Johnson, Pete Allen and Nancy Manning. 

            Attorney Taylor verified from Commissioner McElraft that these were the people nominated to serve on this committee.  Commissioner McElraft answered, “Yes”.

            Commissioner McElraft said she would like to suggest that all of these people names plus anymore that the board decides they want, Ed Dowling and Pat Patteson, and she thinks that is fine but she would like to see everyone of these people that have been eliminated and embarrassing them and not listening to their input and why they wanted to be on this committee included.

            Attorney Taylor clarified that Commissioner McElraft’s motion was the motion she made plus the other three and asked if that was correct.  Commissioner McElraft answered, “That is correct”. 

            Attorney Taylor asked if every Commissioner understood what they are voting on?  Everyone indicated they did.

            Mayor Schools said the motion on the floor is for Doje Marks, Georgia Murray, Paxon Holz, Ronnie Watson, Nita Hedreen, Jerry Huml, Mark Brennesholtz, Tom Ross, Nancy Williamson, Brad Fischer, Fred Fremaux, Ed Johnson, Pete Allen, Nancy Manning, Emily Farmer, Pat Patteson and Ed Dowling.  All Commissioners agreed this was correct.

            Commissioner Farmer noted actually two people got their applications in after the deadline and asked if the board wanted to go into that?  She said there were two people who she asked the Mayor specifically to contact to get their letters in.

            Commissioner McElraft said there are already people who are on the revegetation committee already on the list and she has no objection to adding others from that committee but her objection is to turn citizens down when they want to be on it when it is only 3 or 4 more spots and asked why the board was doing this?  She does not understand.  She wants to have it on record that she did not want to do that.

            Attorney Taylor replied to Commissioner McElraft. “You are on the record, your motion is before the board now”.

            Commissioner Marks said six more people added to 16 already on the list would be 22.  Mr. Rush said some of the members would be advisory.  There is a DOT member assigned to the committee who will help the board choose.

            Commissioner Farmer said all meetings in Emerald Isle, including committees, are open to the public and public input is encouraged. 

            Commissioner Farmer noted that “The insinuation is that some of us are trying to keep people out of the process and that could not be further from the truth”. 

            Commissioner Messer asked why the board changed from the original thing, why are they adding to and why are they adding another Planning Board member?  Mayor Schools replied the original memo included a list of all who applied, and his suggestion for the committee.

            Attorney Taylor said Commissioner McElraft’s motion is before the board and is open for discussion and then a motion be called.  The board can proceed from that point.

            Commissioner Eckhardt noted, “We seem to be deviating from the way we started here.  Mayor Schools gave us some of his ideas and asked for our input.  We have given our input and we seem to be adding more to the committee.  It is my understanding, when we talked to Ruth Leggett, this is a high number based on what she talked about.  The size of the committee I think is fairly important.  We started out with a process.  That is the way we handle all committees, that is the way we handle our boards and I don’t see why we should deviate from that”.

            Commissioner McElraft said deviation came after we saw the list and people started taking people off that list they did not want on it.  A list of all applicants were given to all of us saying this is the list of applicants we have for this committee and please choose the people.

            Commissioner Farmer said this came with the recommendation of the people that should be on the committee and they were already too late.  “What happened was the board was informed by Mayor Schools  as to his suggested number and names.  Three of us said 15 and Commissioner McElraft said she wanted everyone.  That is fine.  I think it is unfortunate that you have now managed to embarrass people by singling them out”. 

            Commissioner McElraft said, “The embarrassment came about when you all singled them out and would not let them be on the committee”.

            Commissioner Farmer said, “We chose a committee the way you always choose a committee.  You go through, you figure out who will best work with the people”.  Commissioner Farmer called for a vote.

            Commissioner Messer asked when the recommendations changed?  The last thing he saw was one town commissioner, one Planning Board member, three members from the business community, one revegetation committee member and six citizens?

            Commissioner Farmer said they were Mayor Schools’ recommendations.  Mayor Schools asked for recommendations where he got everyone from Commissioner McElraft; two board members, two Planning Board members and two revegetation members and business members plus citizens from other board members.

            Commissioner McElraft said her list, which were those who came in under the deadline, were her recommendations.

            Commissioner Farmer again called for a vote.

            Attorney Taylor said, the board could ask Commissioner McElraft to amend her motion in a particular way but she has the option.  Nobody but Commissioner McElraft can amend her motion.  They can recommend but it is up to her to decide whether she will and if she doesn’t change, you vote on her amendment as it stands.  If it is voted down, you go on to the next motion.

            Commissioner McElraft said “Motion stands”.

            Mayor Schools called for a vote.  The board voted, with a split vote 3-2, with Commissioners McElraft and Messer voting for and Commissioners Eckhardt, Marks and Farmer voting against.  Motion denied.

            Mayor Schools called for another motion. 

Commissioner Farmer made a motion that members for the Highway 58 Committee be, two commissioners – Doje Marks and herself (Emily Farmer); two Planning Board members – Pat Patteson and Ed Dowling; Two Revegetation Committee members – of their choice; from business – Ronnie Watson, Nita Hedreen, Fred Fremaux and Brad Fischer; residents – Mark Brennesholtz, Jerry huml, Nancy Williamson and Ed Johnson.

It should be noted that a general discussion took place on who would be from the revegetation committee.  Attorney Taylor suggested making the nomination two revegatation committee members to be named.

            The board voted, with a split vote of 3-2, with Commissioners Eckhardt, Farmer and Marks voting for and Commissioners Messer and McElraft voting against.  Motion carried.

COMMENTS FROM TOWN CLERK, TOWN ATTORNEY AND TOWN MANAGER

            There were no comments from the Town Clerk.

            Town Attorney Taylor said the schedule he saw tonight was not the schedule he has to deal with.  He will go ahead and let the board know that based on their recommendation, he did have a discussion with Neal Whitford.  They discussed the ins and outs. Some of the things discussed tonight have a great deal to do with the contract that will be actually signed with the people that will be doing the pumping of the sand.  There are some ramifications still existing of what happened at Pine Knoll Shores and how they had to deal with it on the fly with the contractors down there because of the tires, because of the turtles and many of the other things.  Things that were unknown in the first circumstance are now known in this circumstance, which will change our position of rule.  There is a principal of law that when someone gives you a bid and says “I am going to do it for this price” but nobody expected bedrock and he hits bedrock, it is an issue that factors into a contract but known things don’t generally factor into this situation.  There is an issue with the easements that we have to get from the folks that are on the waterfront.  Attorney Taylor has discussed with them what the Army Corps of Engineers problems are with the easements that they used at Pine Knoll Shores and he knows no way that the problem can be fixed.  The reason is the time frame.  If he could have a survey in hand where he could show where the fill line was going to be then he could point to that and say that is what we are working from and the Corps of Engineers would be happy.  Because he does not have that now and according to the schedule, looks like it will be June or later, we are in the exactly the same position as Pine Knoll Shores and we are going to have to be “cute” with our description of those easements.  He thinks that we will have legal effect but he does not believe it will pass muster with the Corps of Engineers.  Attorney Taylor brings this up because if we try to get into the Corps of Engineers maintenance program later, we are going to have to do another survey and those surveys will have to show the line and each individual lot on the line and that has to go through the approval process and then we will have to get another batch of easements when the time comes.  There is just no way to do it and get sand on the beach this winter.

            Attorney Taylor said Mr. Rush is in the process of discussing, with the Legislators, for the condemnation process.  They will be required for those situations where they will be required.  He can tell the board, as it turns out, no condemnations were necessary in Pine Knoll Shores and Indian Beach.  It was close but in the end it worked out.  The town is compiling a list.  He is doing everything to keep it here in this place instead of over at his place to make it as cheap as possible.  He can tell that if the full Corps of Engineers process was followed, it would be a HUGE price tag.

            Commissioner Messer asked about the condemnation process and if the town needed to proceed with it?  Attorney Taylor said “We will always have that sitting back but we must try the voluntary mechanism first.  The condemnation for purposes of beach renourishment is what is called a “Quick Condemnation Process” where you get a quick value that is associated with a condemnation, you put the money in the hands of the Clerk of Court with our filings and it is ours immediately. We will need some legislative help with that and for some reason we were not on their list of people under that Statute but it is understood that is something amendable.

            Commissioner Eckhardt said there seems, the way Attorney Taylor has thrown it out, to be a clinker.  Why now?  He does not understand why this has not come up before. 

            Mr. Rush said Pine Knoll Shores presented easements with language that met the Corps requirements.  Now they find out that the Corps has to take another look at that and they may not want to sign off on it.  They have been operating up to this point that that was going to be acceptable.  If they are not acceptable to the Corps, they do not slow this project down at all, it just requires that you get additional easements 7 years from now whenever that federal project is done.  Actually there is still some possibility that the Corps may sign off on it.

            Attorney Taylor said, this group needs to know what they are dealing with.  It has nothing to do with our purpose and our ability to go ahead and do the project – this is talking about the Corps coming in and maintaining our beaches at some point in the future and even if we had everything exactly as we were supposed to do it according to their rules and regulations, there is still no guarantee they would come under the money.

            Commissioner Eckhardt said that was all he needed to know because he thought Attorney Taylor was throwing in the clinker in on the project we are working on.

            Town Manager Rush he would like to call a meeting on Monday, April 22 at 10:00 A.M. give the board and update on the Budget process and get some input from the board.  This date was not convenient for the board.  The meeting was set for Tuesday, April 23, 2002 beginning at 9:00 A.M. 

            The board expressed an interest in having a special meeting to discuss beach nourishment issues and asked when the board would like to do that.  Also the proposals for Bogue Inlet are due back on April 19th.  Mr. Rush has communicated to those interested firms that the board would review them on the following Monday and Tuesday, the 22nd and 23rd; and the 29th and 30th would be the interview dates.  He said he would be interested in knowing how the board wanted to choose the ones to be interviewed.  This will need to be done on Monday the 22nd or Tuesday the 23rd.

            Mr. Rush said the bids would be received by 5:00 P.M. on Friday and he would have someone deliver them to whoever would be involved in the selection process and have a meeting one-week later in order to keep the process moving.  Hopefully a contract will be approved at the May meeting.

            After discussion, it was decided that a Special Meeting to select the Contracts to be interviewed for the Bogue Inlet Project would be held immediately following the conclusion of the Special Meeting for the Budget Workshop on Tuesday, April 23, 2002.

            The beach nourishment meeting inviting Dr. Kana was discussed and will be scheduled after contacting him for a good date. 

            Mr. Rush informed the board that the contract for street resurfacing is now in effect. 

COMMENTS FROM MAYOR AND BOARD OF COMMISSIONERS

There were no comments from Commissioners Messer, Farmer, and Eckhardt.

            Commissioner Marks thanked everyone who has stayed the entire meeting.

            Commissioner McElraft said she received the newsletter from some of the Commissioners this week and there was one misstatement made regarding Emerald Drive and she wanted to make clear she was not in favor of 5-laneing Emerald Drive.  It said that she did vote down the motion, that the motion was a different motion than they started out with but they just turned down the Emerald Isle part of that and she just wanted to make it clear that she is not for 5-laneing Emerald Drive.

            Commissioner Eckhardt made a motion to go into Closed Session to discuss attorney-client privilege (Holz/Howe v. Town of Emerald Isle pursuant to NCGS 143-318.11 (a) (3) and the board voted unanimously, with a vote of 5-0.  Motion carried.

CLOSED SESSION – ATTORNEY-CLIENT PRIVILEGE (HOLZ/HOWE v. TOWN OF EMERALD ISLE), PURSUANT TO NCGS 143-318.11 (a) (3).

 

            Commissioner Farmer made a motion to return to open session and the board’s vote was unanimous, with a vote of 5-0.

            In open session, Town Manger Frank Rush informed the Board about an opportunity to apply for CAMA Planning Grant funds to update the Town’s Land Use Plan.  Mr. Rush noted that the issues addressed by the 8,000 sq. ft. special use permit ordinance could be included in a Land use Plan update, which, according to Mr. Rush, represents the most prudent strategy to undertake a comprehensive review of the Town/s development ordinances.  The Land Use Plan would then be used to guide future comprehensive ordinance amendments.  Mr. Rush requested that the board authorize him to apply for CAMA Planning Grant funds before the May 3 deadline, and also authorize him to select a planning consultant to assist the Town in preparing the grant application, with the understanding that the selected consultant would also receive strong consideration for coordinating the development of the Land Use Plan if a CAMA grant is awarded. 

            Commissioner Eckhardt made a motion to authorize the Town Manager to apply for a CAMA Planning Grant and select a planning consultant, as per Mr. Rush’ request.  The motion was approved by the board’s vote of 5-0.  Motion carried.

            Also, in open session, the Board of Commissioners determined that the best immediate response to the court’s decision regarding the 8,000 sq. ft. special use permit ordinance is to amend the ordinance to correct the deficiencies noted by the court.

            Commissioner Eckhardt made a motion to refer the ordinance to the Planning Board for their recommendations on revisions to the ordinance and the motion was approved by the board’s vote of 5-0.  Motion carried.

ADJOURNMENT

            Commissioner Eckhardt made a motion to adjourn and the board voted, with a vote of 5-0, for approval.  Motion carried.

            The meeting was adjourned at 11:45 P.M.

Respectfully submitted,

Carolyn K. Custy, CMC
Certified Municipal Clerk