MINUTES OF THE REGULAR SCHEDULED MEETING

OF THE EMERALD ISLE BOARD OF COMMISSIONERS

TUESDAY, NOVEMBER 18, 2003 – 7:00 P.M. – TOWN HALL

 

 

Present for the meeting were Mayor Art Schools, Commissioners Dick Eckhardt, Emily Farmer,  Dorothy “Doje” Marks, Pat McElraft, and Floyd Messer.  Others present were Town Attorney Derek Taylor, Town Manager Frank Rush, Assistant Town Manager and Finance Director Georgia Overman, Town Clerk Rhonda Ferebee, Planning Director Kevin Reed and Alesia Sanderson, Director of Parks and Recreation.

 

After roll call all who were present recited the Pledge of Allegiance.

 

Mayor Schools mentioned that two of the Commissioner-Elects were in attendance tonight, Nita Hedreen and John Wootten.  He added that Commissioner-Elect Isenhour was out of town.

 

4.  ADOPTION OF AGENDA

 

Motion was made by Commissioner Farmer to adopt the Agenda.  The Board voted unanimously 5-0 in favor.  Motion passed.

 

5.  PUBLIC ANNOUNCEMENTS

 

Mayor Schools mentioned the Bogue Inlet Public Hearing would be held at 6:30 on December 8^th at the Parks and Recreation Community Center.  He encouraged everyone to attend.

 

Mayor Schools said that October was Fire Awareness Month.  He said the Fire Department had put on a great exhibit with a lot of kids from the county attending.   Due to the fact that the Fire Department was having their Volunteer Meeting they were unable to attend but the Mayor extended his thanks to them for their work.

 

Rhonda Ferebee, Town Clerk, gave details about the upcoming Town Surplus Sale scheduled for Saturday, November 22^nd beginning at 10:00 a.m.  She noted that Rufus Murray would be volunteering his services as Auctioneer and encouraged people to attend.

 

Commissioner McElraft announced Island Cat Allies was having a silent auction at Emerald Plantation Clubhouse on December 6 with all proceeds going to Island Cat Allies for spaying and neutering. 

 

6.  CONSENT AGENDA

 

Motion was made by Commissioner McElraft to approve the Consent Agenda as presented.  The Board voted unanimously 5-0 in favor.  Motion passed.

 

7.  PUBLIC COMMENT

 

Jerry Stockdale, 8521 Oceanview Drive, commented about the survey of Emerald Isle property owners.  He said so many of the questions were ambiguous and heavily biased.  He also felt there were many questions that were irrelevant to the land use planning process.  He didn’t feel the results of the survey would reflect what most property owners in Emerald Isle want, how much they are willing to pay, or how much local government interference they would be willing to bear.  He also said that in a memo at the last town board meeting, it indicated that the Land Use Planning Committee had contracted with survey experts at University of North Carolina-Wilmington to insure the survey would be well formatted.  He noted that in looking at the webpage for the contractor he found that he was an Assistant Professor in the Department of Political Science who teaches courses such as Environmental Politics and Legal Foundations of Coastal and Environmental Management.  He felt that this was an environmentalist, not a survey writer or expert and asked the Board to disregard this survey.

 

Pete Cochran, 240 Windjammer West, said he had concerns about the deadline and didn’t feel that there was enough time given for people to evaluate the survey.  He said there were questions about beach renourishment and the realignment of Bogue Inlet that he didn’t feel should have been asked as there had already been a referendum on them.  He mentioned that he didn’t see many questions about the 40 acres – he felt the 600 people that didn’t support that should still have some input as to how that property is to be used.  He felt this should be put on hold and the new Board coming in should have at least a year under their belt before anything like this comes out.

 

Bob McGinnis, 3602 Emerald Drive, felt the survey was nothing more than a political endorsement of the gentleman who signed it.  He asked how much was paid by the Town for the survey and if they had the authority from the council members to do that.

 

John Grady, 113 Fawn Drive, asked why there was no one there when Carteret County Commissioners adopted the TIP (Transportation Improvement Plan).  He said they are talking of 4-laning the bridge or 5-laning Emerald Drive.  He also said that we live in a lake.  He mentioned stormwater improvements in Beaufort and Morehead City, Emerald Isle wasn’t even mentioned.  He also mentioned questions on the survey that he felt were none of anyone’s business and recommended “file 13”.

 

Commissioner Farmer said she agreed that questions about sex, age, how much money you make were totally irrelevant.  She felt it important that Bill Farris answer the question as to how this particular person was hired, what expertise he had.  She understood that most of the questions came directly from input at the Community Forum that was in January.

 

Kathryn Ferguson, 9816 Clarendon Drive, said her first reaction upon receiving the survey was if this was a setup.  Was she selling her voice today to be condemned tomorrow?  She questioned the purpose of the survey.  She felt if she didn’t answer the survey then she hasn’t entered her voice and she has given up her right to speak, if she does then she has given up her right to change her mind.  She felt circumstances change daily.  She wondered if she was giving her power as a citizen to some political body by responding to a survey.  She added that she didn’t want to give away her right to respond to any future decisions via a survey. 

 

Rick Farrington, 8802 Sound View Ct., said he was confused about the survey.  He said he had been to a lot of town meetings, and been involved in politics,  and had watched what the surveys had done over the last 4 years.  He noted that surveys had changed building heights, and when you drive on the beach.  He said the surveys had been used as a tool for Commissioners as if it was the Bible or gospel.  He added that his wife thought the survey was biased because of the way the questions were worded, the choices of answers were limited, and you are asked to choose an answer that may only reflect part of the problem or solution. He mentioned there was talk of all these wonderful things but there was nowhere to put them.  Where is Emerald Isle going to put a sewer system?  A central sewer system?  He said we don’t have a central location for a central sewer system.  Atlantic Beach is in the process of trying this now, this is going to be neat watching what they do because they are like us they are already developed.  He said he hadn’t heard anyone ever asking for a sewer system in Emerald Isle on either side.  He added that he didn’t know where they would expect to put one.   He mentioned questions also about who was going to pay, with a couple of questions about letting the developer pay. He said that he has seen over the last 4 years how these surveys can be manipulated by people with the power to vote and he was a little gun shy of them now.  He said this process was going to steer the Town of Emerald Isle’s growth and all future boards would be using this as a tool.  

 

Clark Wylde, 113 Bogue Court, said that resort property has very unique characteristics.  He felt that everything on the survey was slanted to someone with money who is able to pay whatever taxes they want to levy on us.  Not everyone will be able to foot the bill and it will force people to leave the island.  He felt this was slanted to those individuals who would prefer to see trees rather than people.  He felt the Island was based on the fact that a person could come down here, buy a piece of property, and develop the way he wanted for his own needs and for whatever beneficial purpose he could put to it.  He mentioned the question in the survey regarding high rise buildings in residential neighborhoods.  He spoke of the existing ordinance and the required side setbacks and stated that it is physically impossible to build in a residential area and get something out there so big that it can be usable.  He said having worked on 3 of these land use plans, the one thing he took great pride in while he was on board, was doing everything possible to keep taxes down. 

 

Joe Wright, 10501 Wyndtree Drive, was concerned about the survey for a couple of reasons.  He felt the choices on the survey were limited.  He touched on several items that were questionable in the survey.  He mentioned one of the questions about informing homeowners how to maintain their septic tanks.   This he felt should be handled by the County Health Department. 

 

Commissioner Marks said she had been the Commissioner Representative on the steering committee.  She said there were 14 members and they had met for over a year.  She said all of the meetings were open and she wished everyone had attended

and given some input.  She stated the initial survey was drawn up by the committee with the help of a consultant and they worked on this,  using questions that were suggested at the community open house.  It was a confusing survey and most of those on the committee were unhappy with it, so Mr. Farris the consultant, consulted,  and hired Mr. Imperial to help design a survey that would be more readable and understandable.  She added that when the land use plan was first started there was to be no survey.  She was the Commissioner that insisted that every property owner should have input into this process and the only way to do that was through a survey and that is why they have a survey.  She felt to throw it away because someone says it is biased was a big mistake.  She said they just wanted input on the future development on this Island. 

 

Commissioner Farmer said that in regard to the question from Rick Farrington about sewers, the 1996 Land Use Plan actually calls for sewers in Emerald Isle.  Emerald Isle had been very active in the Inter-local Agency which consisted of all the Bogue Banks towns to figure out a way to get sewers in Emerald Isle.  The Land Use Plan also supported the 4-County Regional Wastewater Taskforce which was looking at regional sewer for Carteret, Craven, Pamlico, and Onslow Counties, and that was the whole ocean outfall thing.

 

Commissioner McElraft said when they first started the Land Use Plan preparations and hired Bill Farris, he said that he did not think surveys were a good thing to do in a Land Use Plan, but he was overruled.  She too felt when she did the survey that it was very biased, but she felt that everyone needed to either write some comment and send it in to let people know that they are not happy with it because throwing it in the trash would not get the result they need either.  She hoped this was just one part of a series of avenues used to firm up the Land Use Plan and would not be taken and used for political reasons. 

 

Mayor Schools mentioned they all thought the survey would be printed on 11 x 17 paper and they showed up after having been addressed and folded on 81/2 by 11.  They decided rather than redoing this to go with what it was and they all agreed it should have been bigger print.  He felt sure that all comments made will be considered by the Commissioners when going forward. 

 

 

 

8.  PRESENTATION – AMERICAN INDIAN HERITAGE MONTH

 

Ms. Teresa Morris, of the Tuscarora Center of Eastern North Carolina gave an educational presentation about American Indian Heritage Month, the Tuscarora Center, and issues affecting Native Americans. 

 

She reminded everyone that prior to the early 1950’s before the Town of Emerald Isle was incorporated, there was 10,000 years of native history born right here on these

shores.  Ms. Morris spoke very eloquently about our Native American History and ended by asking everyone to consider when making deliberations whether children born

several generations from now will want to vote, or live here, and will they be proud to call this place home. 

 

 

9.  PRESENTATION – FY 2002-2003 AUDIT

 

Frank Rush, Town Manager, presented the results of the FY 2002-2003 audit.

 

Bell and Company CPAs has completed the Town’s FY 02-03 audit, and a copy of the audit report is attached for your review.  Joy Bell, Bell and Company, is unable to attend the November 18, 2003 meeting due to a conflict, however, I will brief the Board on the highlights of the audit report and management’s response to two concerns raised in the audit report.  The Board appointed Audit Committee will also be available to comment on the FY 02-03 audit report. 

 

I am happy to report that the Town received a clean audit report, and that the Town maintains an excellent financial position.  Some of the highlights from the recent audit include:

 

·        General Fund revenues (not including Transfers In, Debt Proceeds, and Appropriated Fund Balance) in FY 02-03 totaled $5,305,505, and exceeded budget estimates by $191,626.  General Fund expenditures (not including Transfers Out, primarily for Debt Service) totaled $4,684,276, and were $130,121 less than budgeted.  After considering Transfers In, Debt Proceeds, and Transfers Out, the General Fund ended FY 02-03 with a net surplus of $222,107.  This amount represents a net addition to the Town’s General Fund Balance.

 

·        Property taxes accounted for $2,509,032, or approximately 47%, of total General Fund revenues.  This percentage is down from FY 01-02, when property taxes accounted for nearly 50% of total General Fund revenues. 

 

·        Local option sales taxes accounted for $1,002,312, or approximately 19%, of total General Fund revenues.  This percentage is up from FY 01-02 when local option sales taxes accounted for approximately 15% of total General Fund revenues.  Local option sales tax revenues increased by $284,424 in FY 02-03 due to the partial impact of the beach nourishment district taxes on the sales tax distribution and the additional half-cent sales tax that was implemented by the Carteret County Board of Commissioners in December 2002.  The Town’s FY 02-03 budget only anticipated $850,000 from local option sales taxes, so the actual sales tax collections exceeded budget estimates by $152,312.  This surplus is the most important factor contributing to the net addition to the Town’s fund balance in FY 02-03.

 

·        Public Safety expenditures (Police and Fire) continue to represent the largest portion of the General Fund budget.  Total expenditures were $2,050,298 in FY 02-03, or approximately 44% of all General Fund expenditures.

 

 

·        The Town’s “undesignated” General Fund balance at June 30, 2003 is $1,359,199.  The Board should note that this figure includes a total of $1,293,487 identified under the General Fund and another total of $65,712 identified under the Debt Service Fund.  In prior years, Bell and Company has added these two funds together to arrive at the General Fund balance calculation, however, these funds are identified separately in the FY 02-03 audit. 

 

The Board should also note that the “undesignated” fund balance decreased slightly from the $1,380,266 reported at June 30, 2002.  This should not alarm the Board, the public, the Local Government Commission, or bond rating agencies.  The Town’s total General Fund balance actually increased by the $222,107 surplus indicated above, however, the vast majority of that surplus was associated with additional sales tax revenue that was earned prior to June 30, 2003 but not actually received until August 15, 2003.  According to State Statutes, these revenues must be identified as “reserved” at June 30, and you will note that the General Fund has a total of $463,535 “reserved by State Statute”.  The addition of these funds to the “undesignated” fund balance yields a total “available” General Fund balance of $1,822,734.  This figure is a more accurate indication of the Town’s total General Fund balance.  This figure equates to approximately 29.6% of total General Fund expenditures included in the FY 03-04 budget adopted by the Board in June. 

 

The Board should note that the FY 03-04 adopted budget includes several one-time expenditures (the new Fire truck, the new brush truck, and the trash containers) that will not recur, and if these one-time expenditures are removed, the total “available” General Fund balance figure of $1,822,734 equates to approximately 32.8% of the adjusted General Fund budget for FY 03-04.    

 

I recognize that this explanation is confusing, but the bottom line is that the Town’s fund balance improved significantly during FY 02-03.  There are two main reasons for this – 1) the additional sales tax received from the additional half-cent and the beach nourishment district effect, and 2) the Board’s discipline not to utilize fund balance to balance the annual operating budget. 

 

·        The Town continues to boast an excellent collection rate for property taxes.  The FY 02-03 collection percentage was 99.11%, which is among the highest of all local governments in North Carolina.

 

·        FY 02-03 was the first year of the Beach Nourishment Debt Service / Reserve Fund, which is used to account for special district taxes and the principal and interest payments on the beach nourishment bonds.  As of June 30, this fund

has a fund balance of $2,564,438.  As you know, this fund is structured to accumulate a significant fund balance in the early years of the bond repayment schedule in order to maintain a consistent tax rate in the two special districts over the next 8 years.

 

Bell and Company did note two “reportable conditions” that should be brought to the Board’s attention.  First, the auditors noted that some purchase orders and invoices lacked documentation of competitive pricing.  The Town’s informal, unwritten policy over the years has been for department heads to identify alternative price quotes solicited on the back of purchase requisitions.  In some cases, competitive price quotes were obtained but not documented properly.  In other cases, the department heads have become extremely knowledgeable of vendors’ pricing over the years, and believe they already know which vendors offer the lowest prices, thus utilizing those vendors to save time in the procurement process.  In some cases, there is only one feasible vendor for supplies, thus no competitive price quotes are available.  Finally, in some cases, our staff may not have been as diligent in soliciting competitive quotes as they need to be.  We are concerned about this “reportable condition”.  We have already taken immediate action to address this concern, and have instructed the department heads to be diligent in soliciting and documenting competitive price quotes.  Additionally, we have already drafted a thorough and comprehensive written Purchasing Policy, and this policy is currently being reviewed by Town department heads.  We expect to present a proposed Purchasing Policy to the Board for consideration at the December meeting.

 

The second “reportable condition” pertains to the fact that expenditures in the solid waste cost center exceeded the budget by $25,719.  This overage occurred as a result of a misunderstanding between the Town’s Assistant Town Manager / Finance Director and the auditor.  This misunderstanding will not occur again.  Fortunately, there were savings elsewhere in the budget that compensated for the overage in the solid waste cost center.

 

The Board appointed Audit Committee met on Friday, November 14 to review the audit report with Joy Bell, the Assistant Town Manager / Finance Director, and myself.

 

Mr. Rush finished by stating again that overall the report was very favorable and the Town is in very good financial shape. 

 

Motion was made by Commissioner Eckhardt to accept the FY 02-03 Annual Audit Report.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

 

10.  ORDINANCE AMENDING CHAPTER 19 – ZONING – TO REVISE THE DEFINITION AND REGULATION OF TEMPORARY SIGNS AND BANNERS

 

Kevin Reed, Planning Director, explained the proposed ordinance amendment to the Board.  He stated that the attached amendment simply clarifies existing language in the Town’s zoning ordinance governing temporary signs and banners, and would not result

in significant substantive changes.   The two most significant components of the ordinance amendment are a limit of 3 such signs or banners per non-profit special event (he said currently 1 sign is allowed), and also a requirement that such signs be removed within 2 days after the event.  The Planning Board at their October 27 meeting unanimously recommended approval of the ordinance amendment. 

 

 

 

ORDINANCE AMENDING CHAPTER 19 – ZONING –

TO REVISE THE DEFINITION AND REGULATION OF TEMPORARY SIGNS AND BANNERS

 

WHEREAS, the Town of Emerald Isle previously enacted a zoning ordinance which includes regulations for temporary signs, and

 

WHEREAS, the Town of Emerald Isle seeks to clarify the language in the zoning ordinance which regulates the size, number and location of temporary signs and banners, and

 

WHEREAS, the Planning Board has unanimously recommended these amendments for adoption by the Board of Commissioners,

 

NOW, THEREFORE, BE IT ORDAINED by the Emerald Isle Board of Commissioners that

 

1.   Chapter 19 – Zoning – Section 19-132, Definitions, is hereby amended to read as follows:

 

Temporary sign or banner:  A sign that is an advertising display constructed of cloth, canvas, fabric, plastic, paper, plywood, or other material intended to be displayed, not to exceed fourteen (14) days, to inform the public of an unusual or special event for sponsored by a non-profit, public, charitable or religious organization.  Such signs shall not exceed thirty-two (32) square feet in area per display surface.  The signs may be erected not more than fourteen (14) days prior to the event and must be removed within two (2) days following the completion of the event.  Each such event shall be limited to a maximum of three (3) signs.  Exception: menu-board/specials board/A-frame on site (section 19-134(11).

 

2.   Chapter – Zoning – Section 19-134, Exceptions, is hereby amended to read as follows:

 

 

(10)      Public event announcements by public or nonprofit organizations of special events or activities of interest to the general public provided such signs do not exceed one (1) sign per site of such events or activities nor thirty-two (32) square feet in area per display surface, and are removed within ten (10) days following completion of event or activity.  Signs advertising special use events will be governed by their special use permit.

 

(10)      Temporary sign or banner as defined in Section 19-132.

 

 

 

3.  The Town Clerk is authorized to number the section set forth above and insert the same as appropriate in the Town Code.

 

4.  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 the _________ day of ____________________, 2003, by a vote of

 

Commissioner(s) ________________________________________________voting for,

 

Commissioner(s) ________________________________________________ voting against, and

 

Commissioner(s) _________________________________________ absent.

 

 

 

                                                                        ______________________________

                                                                        Arthur B. Schools, Jr.,  Mayor                                       

ATTEST:

 

 

_____________________________

Rhonda Ferebee, Town Clerk

 

 

Commissioner McElraft asked about there being only one sign allowed in the existing ordinance.

 

Mr. Rush said that the current ordinance allows one sign per such event, actually on site and doesn’t address placement throughout the rest of the community. 

 

Commissioner McElraft said she knows that they have allowed more than one many times.  She asked if this would now limit the number to three,  very strictly. 

 

Mr. Reed said that was correct. 

 

Motion was made by Commissioner McElraft to open the Public Hearing.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

John Wootten, 103 Eagles Nest, said that he didn’t have a problem with the ordinance but he was bothered that it was going on the agenda tonight for the first time and that it would be passed.  He thought they had established a rule that when something was brought up to be discussed, particularly an ordinance zoning change, that it would be discussion first,  and then action at a second meeting.  He suggested they not pass this tonight but do this next month after people have had a chance to look at the changes.

 

Motion was made by Commissioner Eckhardt to close the Public Hearing.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

Commissioner McElraft asked Mr. Reed if signs in business windows would be limited too. 

 

Mr. Reed said any sign located within a business in the window is exempt from all requirements of the ordinance so they would not be subject to this regulation.  He said this was for signs located outdoors, whether they be on posts or attached to similar structures. 

 

Commissioner McElraft asked about banners placed by troops’ wives when the troops are coming home, would they have to remove these banners within 14 days? 

 

Mr. Reed said that his approach to enforcement was that this particular regulation would not apply to those, he didn’t feel that they fit in the ordinance, and are not regulated, and he felt it was a good thing to welcome folks home.  They have not told people to take those down.

 

Commissioner McElraft said that she wasn’t sure about the number 3 and she would like to have a chance to speak with the people who did such a wonderful job with the ALS Walk.  She felt she would like for this to be tabled to give them an opportunity to possibly come and get their input.  She also questioned the 14 days and whether that might be a problem.  Commissioner McElraft asked Mr. Reed if they had to put a number on the banners as she didn’t feel there had been any abuse.

 

Mr. Reed said that they could simply state the duration and size and not limit the number. 

 

 

 

Motion was made by Commissioner McElraft to table the Ordinance Amending Chapter 19 – Zoning – To Revise the Definition and Regulation of Temporary Signs and Banners. 

 

Commissioner Eckhardt commented regarding Mr. Wootten’s comment which he agreed with thoroughly, he felt they were setting a precedent where we are coming back to the Board without really giving people a chance to participate in a Public Hearing.

 

Commissioner Farmer added that Mr. Rush’s idea about a permanent sign at the entrance to Town advertising the St. Patrick’s Day Festival was a wonderful idea.

 

The Board voted unanimously 5-0 in favor of tabling the motion.  Motion carried.

 

11.  ORDINANCE AMENDING CHAPTER 19 – ZONING – TO REVISE THE REGULATIONS FOR BUFFERS IN BUSINESS DISTRICTS

 

Kevin Reed, Planning Director, described to the Board the proposed ordinance amendment.  The attached amendment simply clarifies existing language in the Town’s zoning ordinance governing buffers, and would not result in significant substantive changes.  The two most significant components of the ordinance amendment are a requirement for maintenance of the buffer if it is damaged and approval of the methods and materials used to construct the buffer.  The Planning Board unanimously recommended approval of the ordinance amendment at their October 27 meeting.

 

 

ORDINANCE AMENDING CHAPTER 19 – ZONING –

TO REVISE THE REGULATIONS FOR BUFFERS IN BUSINESS DISTRICTS

 

WHEREAS, the Town of Emerald Isle previously enacted a zoning ordinance which includes regulations for buffer areas in commercial districts when they abut residential or institutional, and

 

WHEREAS, the Town of Emerald Isle seeks clarify the language for the requirement of buffer areas, and

 

WHEREAS, the Planning Board has unanimously recommended this amendment for adoption by the Board of Commissioners,

 

NOW, THEREFORE, BE IT ORDAINED by the Emerald Isle Board of Commissioners that

 

1.   Chapter 19 – Zoning – Section 19-107, Business district dimensional requirements, be amended as follows:

 

(7)   Vegetation buffer, if it abuts a residential or institutional lot-An opaque fence six (6) feet in height constructed in a manner that is compatible with the design of the

 

 

project shall be provided, as determined or approved by the board of commissioners, along the perimeter of each project.

 

(7)  A buffer shall be required if commercial development abuts a residential or institutional lot.  The buffer shall consist of one of the following: (1) a vegetative opaque screen six (6) feet in height; or, (2) an opaque fence six (6) feet in height.  The buffer must be located along the perimeter of the project where it abuts the residential or institutional lot and the methods and materials of construction must be approved as part of the commercial development review process.  The buffer must be maintained as constructed and replaced or repaired if destroyed or damaged by any means.

 

2.  The Town Clerk is authorized to number the section set forth above and insert the same as appropriate in the Town Code.

 

 

 

3.  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 the _________ day of ____________________, 2003, by a vote of

 

Commissioner(s) ________________________________________________voting for,

 

Commissioner(s) ________________________________________________ voting against, and

 

Commissioner(s) _________________________________________ absent.

 

 

 

                                                                        ______________________________

                                                                        Arthur B. Schools, Jr.,  Mayor                                       

ATTEST:

 

 

_____________________________

Rhonda Ferebee, Town Clerk

 

 

Motion was made by Commissioner Eckhardt to open the Public Hearing.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

 

 

Rick Farrington, 8802 Sound View Court, said there were commercial property owners unable to attend this meeting that he felt would want to be included in this.

 

Motion was made by Commissioner Marks to close the Public Hearing.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

Commissioner McElraft asked Mr. Reed if one of these new changes would require approval in the Planning Board stage. 

 

Mr. Reed said this would be approved as part of the approval process for site plans. 

 

Commissioner McElraft asked if the Planning Board would make the decision as to what kind of materials to construct this buffer, or would that be decided by the developer. 

 

Mr. Reed said currently this section has been applied to require either a vegetative screen or some type of wood screen.  Mr. Reed said he envisioned the developer would

make a proposal, and as it is currently worded, as long as the proposal adequately screens the property, and is keeping with the nature of the development, it would be approved. 

 

Commissioner McElraft asked if the developer could have their own choice of vegetative or fence. 

 

Mr. Reed said they certainly can.  The only thing they indicate as part of the site plan approval process is what they plan to do. He added that if they indicated an opaque wooden fence that they don’t go out and  construct a chain link fence.  

 

Commissioner McElraft also questioned whether the adjacent neighborhood would have any influence on that. 

 

Mr. Reed said typically the approval process for commercial development is a very public process and he felt adjacent property owners would have the opportunity to comment. 

 

Mr. Rush added that ultimately the Board of Commissioner would approve the commercial site plan for the project. 

 

Commissioner Messer said the only big change he could see was the maintenance factor that had been added. 

 

Motion was made by Commissioner McElraft to table the Ordinance Amending Chapter 19 – Zoning – To Revise the Regulations for Buffers in Business Districts in order to provide two readings.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

 

12.  RESOLUTION ACCEPTING CAMA GRANT FOR STATION DRIVE PARKING AREA

 

Alesia Sanderson, Director of Parks and Recreation presented the information concerning this resolution to the Board.  She said they had applied for CAMA funding for Phase 4 of the Western Ocean Regional Access and for the acquisition and improvements to 11001 Station Street.  She said they were funded for Station Street and not for the Western Ocean Regional Access.  The logic behind that was there was not the amount of money in CAMA’s coffers they had originally anticipated, therefore the smaller project was funded.  Ms. Sanderson said that this piece of property is located approximately 2 blocks from 2 accesses.   It is a highly desirable place where our residents as well as visitors would like to use but there is no parking available.  She thanked Mr. Everett Long for bringing this property to their attention.  She added that the accountant representing the estate of the property owner, has stated that she will agree to sell the property for the $30,000 that it appraised for, and take the additional $38,000 recorded in the estate as a tax loss.  Ms. Sanderson said that if they decide to proceed with the acquisition of this project, they definitely want to get the neighbors involved to make this an improvement to the neighborhood. 

 

 

 

RESOLUTION ACCEPTING CAMA GRANT FOR

STATION DRIVE PARKING AREA

 

Whereas, the North Carolina Division of Coastal Management has awarded the Town of Emerald Isle a $26,250 grant for the acquisition of 11001 Station Drive to create a Neighborhood Ocean Access Parking Area, and

 

Whereas, the Town of Emerald Isle has included the required local match of $11,250, in the FY 2003-2004 Town budget, and

 

Whereas, the Town Manager is the chief administrative officer of the Town,

 

 

Now, therefore, be it resolved by the Board of Commissioners that the Town Manger is hereby authorized to accept a $26,250 grant from the North Carolina Division of Coastal Management for the acquisition of 11001 Station Drive for the purpose of creating a Neighborhood Ocean Access Parking area.

 

Be it further resolved that the Town Manager is authorized to execute a grant contract with the North Carolina Division of Coastal Management and take all actions necessary to carry out the requirements of the grant contract.

 

 

 

Be it further resolved that the grant contract will be filed with the minutes of the Board of Commissioners meeting at which this resolution is approved.

 

Adopted this the ____ day of _______________, 2003.

 

 

                                                                                    ____________________________

                                                                                    Arthur B. Schools, Jr., Mayor

 

ATTEST:

 

 

_________________________

Rhonda Ferebee, Town Clerk

 

 

Clark Wylde, 113 Bogue Court, asked if there would be any toilet facilities on the property. 

 

Ms. Sanderson said no, it would be strictly parking.  They anticipate approximately 13 parking spaces.

 

Commissioner Farmer noted that it was ironic this past summer, hearing on the scanner that there were cars parked at the Point illegally, those cars belonged to surfers who actually ended up rescuing people, and she felt they definitely need parking at the Point.

 

Ms. Sanderson added they want to be as unobtrusive as possible.  The Town will bend over backward to work with the neighbors in that community.

 

Motion was made by Commissioner Messer to approve the Resolution Accepting CAMA Grant for Station Drive Parking Area.  The Board voted unanimously 5-0 in favor.  Motion carried.

 

13.  BOND ANTICIPATION NOTES – BEACH NOURISHMENT

 

 

Frank Rush, Town Manager, presented the information regarding this item to the Board. 

 

As provided in Mr. Rush’s memo dated November 18, 2003 - the Board of Commissioners is scheduled to consider two items associated with the financing of the Town’s beach nourishment projects.  First, the Board will consider a resolution authorizing the sale of bond anticipation notes to replace previous bond anticipation notes.  Second, the Board will consider a budget amendment formally recognizing the new bond anticipation notes and appropriating these funds to retire the previous bond anticipation notes.

 

For strategic reasons (to achieve a lower interest rate), the Town issued $2.6 million of bond anticipation notes (BANs) in April 2003 in order to finance the balance of project costs associated with the Eastern Phase Beach Nourishment Project.  The Town intends to fully retire the $2.6 million of BANs when the remaining general obligation bonds to finance the Bogue Inlet / Western Phase project are issued in October 2004.  Because BANs only have a maximum term of 9 months, and the current BANs mature in December, the Town must issue new BANs to replace the existing BANs.  The attached resolution authorizes the issuance of new BANs to replace the existing BANs. 

 

The interest rate on the current BANs is 1.1%, which is less than the 2.799% rate on the first round of general obligation bonds.  We expect to see a rate in the 1% range when the new BANs are issued in December.  The new BANs will mature in August 2004, and the Town will need to go through this process once more prior to the next general obligation bond sale planned for October 2004.   

 

The attached budget amendment is procedural in nature, and simply recognizes the BANs revenue and appropriates it to retire the previous BANs.  These two agenda items will not result in any additional expenditures beyond what has been planned.

 

 

 

 

EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS

 

 

 

            A meeting of the Board of Commissioners for the Town of Emerald Isle, North Carolina, was held in Emerald Isle Town Hall, 7500 Emerald Drive, Emerald Isle, North Carolina, at 7:00 P.M. on November 18, 2003.

 

            Present:_________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

 

            Absent:_________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

 

           

 

            Also present:____________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

 

 

                                                                     *      *      *

 

 

 

 

__________________________________ presented the following resolution and moved that it be adopted:

 

            WHEREAS, the bond order hereinafter described has taken effect and the Board of Commissioners of the Town of Emerald Isle (the “Issuer”) has issued $2,600,000 Beach Improvement Bond Anticipation Notes dated April 22, 2003, payable December 17, 2003 to borrow money for the purposes for which bonds are authorized to be issued by that bond order; and   

 

            WHEREAS, the Board of Commissioners of the Issuer wants to renew the foregoing notes in anticipation of the receipt of the proceeds of the sale of those bonds, as hereinafter provided;

 

            NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Issuer, as follows:

 

(1)               The outstanding $2,600,000 Beach Improvement Bond Anticipation Notes payable December 17, 2003, which have been issued in anticipation of the sale of the bonds authorized by a bond order adopted by the Board of Commissioners of the Issuer on November 13, 2001, shall be renewed by the issuance of $2,600,000 Beach Improvement Bond Anticipation Notes (the “Notes”), in anticipation of the receipt of the proceeds of the sale of the bonds authorized to be issued by that order.

(2)               The Notes shall be dated December 16, 2003, shall be payable August 25, 2004 and shall bear interest from their date at a rate which shall not exceed six per centum (6%) per annum.  Interest shall be payable at the maturity of the Notes on the basis of a 360-day year consisting of twelve 30-day months.  Each of the Notes shall be signed by the Mayor and the Town Clerk or Finance Officer and the seal of the Issuer shall be affixed to each of the Notes.

(3)               The power to fix the rate of interest to be borne by the Notes and to determine the denomination or denominations of the Notes (which shall be $100,000

 

and multiples of $5,000 in excess thereof) is hereby delegated to the Mayor and the Town Clerk or Finance Officer who are hereby authorized and directed to cause the Notes to be prepared and to execute the Notes when they have been sold by the Local Government Commission of North Carolina.

(4)               The Notes will be issued in fully registered form by means of a book entry system with no physical distribution of note certificates made to the public.  One note certificate for the entire issue will be issued to and registered in the name of The Depository Trust Company, New York, New York (“DTC”) or its nominee and immobilized in its custody. The book entry system will evidence beneficial ownership of the Notes with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC. Principal and interest on the Notes will be payable by the Issuer on the maturity date thereof, in clearinghouse funds to DTC or its nominee as registered owner of the Notes. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of those participants and other nominees of beneficial owners.  The Issuer will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through participants.

 

 

            In the event that (a) DTC determines not to continue to act as securities depository for the Notes, or (b) the Issuer determines that continuation of the book entry system of evidence and transfer of ownership of the Notes would adversely affect the interests of the beneficial owners of the Notes, the Issuer will discontinue the book entry system with DTC. If the Issuer fails to arrange for another qualified securities depository to replace DTC, the Issuer will authenticate and deliver replacement Notes in the form of fully registered certificates in denominations of $5,000 or integral multiples thereof.

(5)               The Note and the endorsements thereon shall be in substantially the following form:

 

 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to issuer or its agent for registration of transfer, exchange, or payment and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

 

NO. R-                                                                                                                          $__________

 

 

                                                           United States of America

                                                            State of North Carolina

 

                                                       TOWN OF EMERALD ISLE

 

                               BEACH IMPROVEMENT BOND ANTICIPATION NOTE

 

 

INTEREST                     MATURITY                        DATE OF

  RATE                             DATE                                 NOTE                                  CUSIP

 

                                       August 25, 2004               December 16, 2003

 

 

REGISTERED OWNER:  CEDE & CO.

 

PRINCIPAL SUM:                                                                                      DOLLARS

 

 

            The Town of Emerald Isle (the “Town”), a municipal corporation within the State of North Carolina, acknowledges itself indebted and for value received hereby promises to pay to the registered owner named above, on the date specified above, upon surrender hereof, at the office of the Finance Officer of the Town, 7500 Emerald Isle Drive, Emerald Isle, North Carolina 28594-2917, (the “Note Registrar”), the principal sum shown above and to pay to such person, on the date specified above interest on such principal sum from the date of this note at the rate per annum shown above on the basis of a 360-day year consisting of twelve 30-day months.  Both the principal of and the interest on this note shall be paid in any coin or currency of the United States of America that is legal tender for the payment of public and private debts on the respective dates of payment thereof.

 

 

 

            This note is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act of the State of North Carolina, as amended, and in anticipation of the sale of bonds authorized by a bond order adopted by the Board of Commissioners of the Town on November 13, 2001 (the “Bond Order”) and a resolution adopted by that Board (the “Resolution”) providing for the issuance of this note.  The issuance of this note and the contracting of the indebtedness evidenced hereby have been approved by a majority of the qualified voters of the Town voting at elections held in the Town.

 

            The notes will be issued in fully registered form by means of a book entry system with no physical distribution of note certificates made to the public.  One note certificate for the entire issue will be issued to and registered in the name of DTC or its nominee and immobilized in its custody. The book entry system will evidence beneficial ownership of the Notes with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of participants and other nominees of beneficial owners. The Town will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through participants. 

 

            The Note Registrar shall keep at its office the books of the Town for the registration of transfer of notes. The transfer of this note may be registered only upon those books and as otherwise provided in the Resolution upon the surrender hereof to the Note Registrar together with an assignment duly executed by the registered owner hereof or his attorney or legal representative in form satisfactory to the Note Registrar. Upon any registration of transfer, the Note Registrar shall deliver in exchange for this note a new note or notes, registered in the name of the transferee, in authorized denominations, in an aggregate principal amount equal to the unredeemed principal amount of this note.

 

            It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this note, exist, have been performed and have happened, and that the amount of this note, together with all other indebtedness of the Town, is within every debt and other limit prescribed by said Constitution or statutes. The faith and credit of the Town is hereby pledged to the punctual payment of the principal of and interest on this note in accordance with its terms.

 

            This note shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Bond Order or the Resolution until this note shall have been endorsed by the authorized representative of the Local Government Commission of North Carolina and authenticated by the execution by the Note Registrar of the certificate of authentication endorsed hereon.

 

 

 

 

 

            IN WITNESS WHEREOF, the Town has caused this note [to be manually signed by] [to bear the facsimile signatures of] the Mayor and the Town Clerk and [a facsimile of] its official seal to be [imprinted] [impressed] hereon, and this note to be dated December 16, 2003.

 

 

                                                               ______________________________________

                                                               Mayor

 

(SEAL)

                                                               ______________________________________

                                                               Town Clerk

 

                            CERTIFICATE OF LOCAL GOVERNMENT COMMISSION

 

 

            The issuance of the within note has been approved under the provisions of The Local Government Bond Act of North Carolina.

 

 

                                                               ______________________________________

                                                               Secretary, Local Government Commission

 

 

 

 

 

 

                                             CERTIFICATE OF AUTHENTICATION

 

 

            This note is one of the Notes of the issue designated herein and issued under the provisions of the within‑mentioned Bond Order and Resolution.

 

                                                                           TOWN OF EMERALD ISLE

                                                                           FINANCE OFFICER, as Note Registrar

 

 

                                                                           By:__________________________________

                                                                           Authorized Signature

 

 

Date of Authentication:  December 16, 2003

 

                                                                  ASSIGNMENT

 

 

            FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto __________________________________________________ the within Note and irrevocably appoints _______________________________________________________ attorney‑in‑fact, to transfer the within Note on the books kept for registration thereof, with full power of substitution in the premises.

 

 

Dated:  ______________________                   ________________________________________

                                                                           NOTICE:  The signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without any alteration whatsoever.

 

 

Signature Guaranteed:

 

______________________________

 

NOTICE:  Signature(s) must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program.

 

(6)               Notes, upon surrender thereof at the office of the Note Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in form satisfactory to the Note Registrar, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Notes of any denomination or denominations authorized by this resolution.

 

            The transfer of any Note may be registered only on the registration books of the Issuer upon the surrender thereof to the Note Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in form satisfactory to the Note Registrar. Upon any registration of transfer, the Note Registrar shall authenticate and deliver in exchange for the Note a new Note or Notes, registered in the name of the transferee, of any denomination or denominations authorized by this resolution, in an aggregate principal amount equal to the unredeemed principal amount of the Note so surrendered.

 

            In all cases in which Notes shall be exchanged or the transfer of Notes shall be registered hereunder, the Note Registrar shall authenticate and deliver at the earliest practicable time Notes in accordance with the provisions of this resolution. All Notes surrendered in any exchange or registration of transfer shall forthwith be cancelled by the Note Registrar. The Issuer or the Note Registrar may make a charge for shipping and

 

out‑of‑pocket costs for every exchange or registration of transfer of Notes sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to the exchange or registration of transfer, but no other charge shall be made for exchanging or registering the transfer of Notes under this resolution.

 

            As to any Note, the person in whose name the same shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any Note and the interest on any Note shall be made only to or upon the order of the registered owner thereof or his legal representative.  All such payments shall be valid and effectual to satisfy and discharge the liability upon that Note and interest thereon, to the extent of the sum or sums so paid.

 

            The Issuer shall appoint such registrars, transfer agents, depositaries or other agents and make such other arrangements as may be necessary for the registration, registration of transfer and exchange of Notes within a reasonable time according to commercial standards then applicable and for the timely payment of principal and interest with respect to the Notes.  The Finance Officer of the Issuer is hereby appointed the registrar, transfer agent and paying agent for the Notes (collectively, the “Note Registrar”), subject to the right of the governing body of the Issuer to appoint another Note Registrar, and as such shall keep at his office as Finance Officer, 7500 Emerald Isle Drive, Emerald Isle, North Carolina 28594-2917, the books of the Issuer for the registration, registration of transfer, exchange and payment of the Notes as provided in this resolution.

 

 

(7)               The actions of the employees of the Issuer and the officers of the Board of Commissioners in applying to the Local Government Commission of North Carolina for its approval of the borrowing evidenced by the Notes as required by the Local Government Finance Act is hereby authorized, ratified and confirmed.  The Local Government Commission is hereby requested to sell the Notes in the manner prescribed by that Act.  The Local Government Commission is hereby requested to deliver the Notes through the State Treasurer in exchange for the outstanding notes upon payment of the interest payable with respect to the outstanding notes to the holders of the outstanding notes.

(8)               The Issuer covenants to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent required to preserve the exclusion from gross income of interest on the Notes for federal income tax purposes.

(9)               The Issuer hereby represents that the Notes are not private activity bonds as defined in the Code and that the Issuer, together with any subordinate entities and any entities that issue obligations on behalf of the Issuer, reasonably expects that it will not issue more than $10,000,000 tax‑exempt obligations (other than private activity bonds but including qualified 501(c)(3) bonds) during the current calendar year.  In addition, the Issuer hereby designates the Notes as “qualified tax‑exempt obligations” for the purposes of section 265(b)(3) of the Code.

(10)           The power to make any election on behalf of the Issuer with respect to the arbitrage rebate provisions of the Code applicable to the Notes is hereby delegated to the Mayor and the Finance Officer.

(11)           The Mayor and the Town Clerk or Finance Officer and other officers of the Issuer are hereby authorized and directed to execute and deliver for and on behalf of the Issuer any and all financing statements, certificates, documents or other papers and to perform any and all acts they may deem necessary or appropriate in order to carry out the intent of this resolution and the matters herein authorized.

________________________________________ seconded the motion, and the motion was adopted by the following vote:

 

AYES:

 

NAYS:

*          *          *          *          *