April 13, 2004 Agenda
April 13, 2004 Minutes

Action Agenda
REGULAR MEETING OF THE EMERALD ISLE
BOARD OF COMMISSIONERS
TUESDAY, APRIL 13, 2004
6:00 PM - EMERALD ISLE TOWN HALL

  1. Call to Order
  2. Roll Call
  3. Pledge of Allegiance
  4. Adoption of Agenda
    (Agenda Approved by 4-0 vote adding item 14.5 Discussion - Taxi Cabs, and removing items h, f, & g in that order from the Consent Agenda to Regular Agenda as items 14.6, 14.7, and 14.8)
  5. Public Announcements
  6. Consent Agenda
    1. Minutes – February 16, 2004 Special Meeting
    2. Minutes – March 5, 2004 Special Meeting
    3. Minutes – March 9, 2004 Regular Meeting
    4. Minutes – March 12, 2004 Special Meeting
    5. Tax Refunds / Releases
    6. Capital Project Budget Ordinance Amendment – NC 58 Sidewalk Project (Placed on Regular Agenda as Item 14.7)
    7. Budget Amendment – NC 58 Sidewalk Project (Placed on Regular Agenda as Item 14.8)
    8. Resolution Formally Establishing Beach Nourishment Debt Service / Reserve Fund (Placed on Regular Agenda as Item 14.6)
    9. Resolution Authorizing Participation in the NC Local Government Debt Setoff Program
    10. Resolution Designating Deputy Town Clerk
    11. Resolution Authorizing Contract Amendment – Coastal Science & Engineering / FEMA Post-Isabel Nourishment
    12. Budget Amendment – Sandbag Repairs at The Point
      (Consent Agenda approved by 4-0 vote as amended)
  7. Public Comment
  8. Proclamations
    1. Emerald Isle Spring Cleanup Day
    2. Municipal Clerks Week
    3. Salvation Army Week
  9. Presentation – Carteret County Tourism Development Authority
  10. Discussion - Consolidated Carteret County E911 Center
  11. Coast Guard Road Flood Water Project
    1. Resolution Authorizing Contract Amendment - Moffatt & Nichol Consulting Contract
      (Approved 4-0 vote)
    2. Capital Project Budget Ordinance Amendment –
      (Approved 4-0 vote)
    3. General Fund Budget Amendment
      (Failed 1-3 vote, Messer For - Isenhour, McElraft, Wootten Opposed)
    4. Resolution Authorizing Hazard Mitigation Grant / Flood Mitigation Assistance / Pre-Disaster Mitigation Grant Application
      (Approved 4-0 vote)
  12. Resolution Authorizing Clean Water Management Trust Fund Grant Application to Study Potential Removal of Ocean Storm Water Outfalls Near Bogue Inlet Pier
    (Approved 4-0 vote)
  13. Bogue Inlet Channel Erosion Response Project
    1. Resolution Authorizing Contract Amendment - Coastal Planning & Engineering / Construction Plans and Specifications
      (Approved 4-0 vote)
    2. Waterbird Management Plan
  14. Resolution Authorizing Agreement with GovDeals, Inc. for Internet Auction of Government Surplus Items
    (Approved 4-0 vote)
    14.5.   Discussion - Taxi Cabs
    (Ordinance amendment approved 3-1 vote, Isenhour, McElraft, Messer For, Wootten Opposed)
    14.6.   Resolution Formally Establishing Beach Nourishment Debt Service / Reserve Fund
    (Approved 4-0 vote)
    14.7.   Capital Project Budget Ordinance Amendment – NC 58 Sidewalk Project
    (Approved as amended 4-0 vote)
    14.8.   Budget Amendment – NC 58 Sidewalk Project
    (Approved as amended 4-0 vote)
  15. Appointment – Board of Adjustment
    (Jerry Stockdale appointed Board of Adjustment Alternate #1 member by 4-0 vote)
  16. Comments from Town Clerk, Town Attorney, and Town Manager
  17. Comments from Board of Commissioners and Mayor
  18. Adjourn

Unapproved
MINUTES OF THE REGULAR SCHEDULED MEETING
OF THE EMERALD ISLE BOARD OF COMMISSIONERS
TUESDAY, APRIL 13, 2004 – 6:00 P.M. – TOWN HALL

The regular monthly meeting of the Emerald Isle Board of Commissioners was called to order by Mayor Art Schools at 6:00 P.M.

Present for the meeting:  Mayor Art Schools, Commissioners Robert Isenhour, Pat McElraft, Floyd Messer, and John Wootten. 

Absent from the meeting:  Commissioner Nita Hedreen.

Others present:  Town Attorney Richard Stanley, Town Manager Frank Rush, Assistant Town Manager/Finance Director Mitsy Overman, Town Clerk Rhonda Ferebee, Police Chief Mark Wilson, and Fire Chief Bill Walker.

Also in attendance:  Mike Addertion, Carteret County Emergency Services Director, Carol Lohr, TDA Director, and Carole Warren, TDA Board Member.

Motion was made by Commissioner Messer to excuse the absence of Commissioner Hedreen who was absent due to out of town business.  The Board voted unanimously 4-0 in favor.  Motion carried.

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

4.  ADOPTION OF AGENDA

Town Manager Frank Rush asked that discussion of the Town’s taxicab ordinance be added to the agenda as Item 14.5. 

Motion was made by Commissioner McElraft to accept the Agenda with the amendment of adding 14.5 discussing taxicabs in Emerald Isle.

Commissioner Wootten asked that Item (h) Resolution Formally Establishing Beach Nourishment Debt Service/Reserve Fund be removed from the Consent Agenda and placed on the Regular Agenda.

Commissioner McElraft amended her motion to include taking Item (h) off of the Consent Agenda and adding to the Regular agenda as 14.6.

Commissioner Isenhour and Mayor Schools had questions concerning Item (f) Capital Project Budget Ordinance Amendment-NC 58 Sidewalk Project and Item (g) Budget Amendment-NC 58 Sidewalk Project.

Commissioner McElraft amended her motion to accept the Agenda with (f), (g), & (h) going on the Regular Agenda as Items 14.6, 14.7, and 14.8 from the Consent Agenda in addition to the discussion of taxicabs in Emerald Isle.  The Board voted unanimously 4-0 in favor.  Motion carried.

5.  PUBLIC ANNOUNCEMENTS

Mayor Schools announced the following:

·        Bicycle and Pedestrian Advisory Committee – Monday, April 19 at

6:00 pm – Emerald Isle Recreation Center

·        Regular Planning Board meeting – Monday, April 26 at 6:00 pm – Emerald Isle Town Hall

·        Emerald Isle National Day of Prayer Event – Thursday, May 6 at

12:00 noon – Emerald Isle Baptist Church

Mayor Schools also mentioned that Friends of Western Carteret Public Library would be having the Annual Homes Tour on April 24. 

Commissioner McElraft added that Island Cat Allies would be having another fundraiser, a fashion show, “Cat’s Meow Fashion Show and Fancy Feast”.  This will be held at the Swansboro Rotary Center on Saturday, May 22, with all funds going toward spaying and neutering Island cats.

6.  CONSENT AGENDA

  1. Minutes – February 16, 2004 Special Meeting
  2. Minutes – March 5, 2004 Special Meeting
  3. Minutes – March 9, 2004 Regular Meeting
  4. Minutes -  March 12, 2004 Special Meeting
  5. Tax Refunds/Releases
  6. Capital Project Budget Ordinance Amendment – NC 58 Sidewalk Project (Removed and placed on Regular Agenda as Item 14.7)
  7. Budget Amendment – NC 58 Sidewalk Project (Removed and placed On Regular Agenda as Item 14.8)
  8. Resolution Formally Establishing Beach Nourishment Debt Service/Reserve Fund (Removed and placed on Regular Agenda as Item 14.6)
  9. Resolution Authorizing Participation in the NC Local Government Debt Setoff Program
  10. Resolution Designating Deputy Town Clerk
  11. Resolution Authorizing Contract Amendment – Coastal Science & Engineering/FEMA Post-Isabel Nourishment
  12. Budget Amendment – Sandbag Repairs at The Point
Motion was made by Commissioner Messer to accept the Consent Agenda as amended.  The Board voted unanimously 4-0 in favor.  Motion carried.

7.  PUBLIC COMMENT

There were no comments from the public.

8.  PROCLAMATIONS

 Mayor Schools announced the following Proclamations:

 

  • May 1, 2004 – Emerald Isle Spring Cleanup Day
  • May 2- 8, 2004 – Municipal Clerks Week
  • May 10-16, 2004 – Salvation Army Week
9.  PRESENTATION – CARTERET COUNTY TOURISM DEVELOPMENT AUTHORITY

 Mayor Schools gave a brief PowerPoint presentation about the Carteret County Tourism Development Authority (TDA).  Mayor Schools introduced Carol Lohr, TDA Executive Director, and Carole Warren, TDA Board member who were both in attendance tonight.  Mayor Schools provided sample pictures used in the TDA advertisements that represent interests from all over Carteret County, and as stated in his presentation – “bringing people to the Crystal Coast from Cedar Island to Cedar Point”.  Mayor Schools noted the TDA’s Goal is to “Promote Travel & Tourism”, taxes paid by visitors, not citizens.  Mayor Schools described the methods used to advertise and market Carteret County in order to meet this goal.  Mayor Schools noted below the Importance of Tourism:

  • Tourism is Carteret County’s second most important industry (the first most important being the Military)
  • Without tourists, many of our businesses would not survive
  • All communities need a strong economic base in order to exist
  • Without the tourism industry, taxes would surely rise
Mayor Schools said that one of his goals as Chairman of the Tourism Development Authority was to try to increase tourism in April, May, September, and October. 

Carole Warren, TDA Board member asked everyone to welcome guests and encourage them to come back and visit again.  She also mentioned the marketing efforts for small-based businesses and tourist related businesses, and recommended they call the Tourism Bureau in Morehead City to get on their list.

Carol Lohr, TDA Executive Director provided brochures and maps for the public.  She also mentioned (Save our Summers), a statewide project, trying to get the school calendar year to begin after Labor Day.  She encouraged everyone to support this later school start date. 

10.  DISCUSSION – CONSOLIDATED CARTERET COUNTY E-911 CENTER

Town Manager Frank Rush spoke to the Board concerning the issue of a consolidated Carteret County E-911 Center which is currently under consideration.    Mr. Rush stated that the County is currently in the investigation phase and has requested an indication of Emerald Isle’s interest by April 30, 2004.  Mr. Rush noted that Mike Addertion, Carteret County Emergency Services Director, as well as Emerald Isle Police Chief Mark Wilson, and Fire Chief Bill Walker were here to answer any questions for the Board.

Mr. Rush provided in Board packets the following outline of the service impacts, financial impacts, and other impacts to the Town of Emerald Isle that are associated with this issue. 

Current Emerald Isle E-911 System

E-911 communications are provided by 4 full-time dispatchers, and occasional part-time dispatchers in the Emerald Isle Police Department.  The dispatchers are supervised and sometimes assisted by the Dispatch Supervisor / Police Records Clerk.  The total annual operating cost for E-911 communications and police records management is approximately $178,000, and these services are funded with general tax revenues.  This cost is equal to approximately 1.27 cents on the Emerald Isle tax rate.

The dispatchers in the Emerald Isle Police Department answer all emergency calls made from “land lines” in Emerald Isle.  Emergency calls made from mobile phones ring at the Carteret County E-911 center, and the calls are then forwarded to the Emerald Isle dispatchers.  The dispatchers assist the Emerald Isle police officers, both in the station and providing information while they are out in the community.  The dispatchers in the Emerald Isle Police Department also provide general assistance to residents and visitors on non-emergency issues.  The dispatchers provide a human presence at the Police Department 24 hours per day, 365 days per year, and this human presence is very helpful for our residents and numerous visitors.   

In addition to providing a human presence at the Police Department at all times, another key benefit of the current system is that it is very much a community-based service.  Our dispatchers are focused solely on Emerald Isle, and have a good understanding of the land area, the people, and the important issues.  Additionally, these dispatchers have developed good working relationships with our local police officers, firefighters, and emergency medical services personnel.

All telephone customers in Emerald Isle currently pay a $0.35 monthly E-911 surcharge that is collected by the local phone company and remitted to Carteret County.  This same $0.35 monthly surcharge is charged to all telephone customers in Carteret County, and generates approximately $200,000 per year for the County.  These revenues are statutorily restricted for limited expenses associated with the E-911 system, and historically the County has made periodic appropriations to Morehead City, Atlantic Beach, and Emerald Isle for necessary E-911 capital equipment, in addition to providing funding for eligible expenses associated with the Carteret County E-911 center.  Emerald Isle was scheduled to receive approximately $60,000 worth of new E-911 telephone equipment in FY 03-04, however, this purchase was delayed due to the ongoing study of a potential consolidated E-911 center. 

Consolidated Carteret County E-911 Center

The attached report by Mike Addertion outlines the details of a consolidated Carteret County E-911 center.  The report calls for the construction of a new facility or renovation of an existing facility to house all E-911 operations.  The new facility would likely be managed by a new department, and that department head would likely report to the County Manager. 

The consolidated E-911 center would be located in a central location in the County, and in a location that is not prone to flooding or having transportation routes cut off from the rest of the County in an emergency.  The new center would provide E-911 communications for all police, fire, and emergency medical service providers in the County, and would include staffing to meet the seasonal needs of the County.  According to the report, the annual operating cost of the new center would be approximately $970,000.  Approximately $755,000 of this annual cost would be funded with County general tax revenues, and the remaining $215,000 would be funded with E-911 surcharge revenues.  Additional up-front capital costs would equal approximately $1.8 million, with $1.2 million associated with a new facility.  The new facility would be funded with County general tax revenues, and for comparison purposes only, I am assuming that the new facility would be financed over a 10 year period, and that annual debt service payments would add an additional $150,000 annually to the annual operating cost.  The remaining $600,000 of up-front capital costs would likely be funded with E-911 surcharge revenues or other dedicated County revenues. 

The County currently spends approximately $385,000 of general tax revenues on E-911 communications annually.  The consolidated Carteret County E-911 center would require approximately $905,000 ($755,000 for operations plus $150,000 for debt service) annually, or an increase of approximately $520,000 annually.  This additional amount equates to approximately .7 cent on the County General Fund tax rate.  The County currently spends an amount equivalent to approximately .52 cent on the County General Fund tax rate, and the consolidated E-911 center would push the total County General Fund tax rate-equivalent to 1.22 cents.

The E-911 surcharge (currently $0.35 monthly) will also likely increase, regardless of whether or not a consolidated E-911 center is established.  Mike Addertion has stated that he believes the E-911 surcharge rate should be adjusted to approximately $0.65 - $0.75 monthly in order to meet the E-911 communications equipment needs in the County.  

It is likely that the earliest date that the consolidated E-911 center would become operational is July 1, 2005 if an existing facility is utilized, and July 1, 2006 if a new facility is constructed.

Service Impacts

If Emerald Isle partners with the County, Morehead City, and Atlantic Beach to establish a consolidated E-911 center, the following impacts could potentially occur:

  • Dispatchers would be located at the County facility, which would likely be located in the Newport–Morehead City–Beaufort area.  The Town would lose the human presence that now exists at the Emerald Isle Police Department 24/7, unless alternative staffing is provided.

 

  • The dispatchers serving Emerald Isle may or may not have the same level of familiarity with the land area, people, and issues in Emerald Isle.  This issue may be addressed with adequate training of the County dispatchers.

 

  • The dispatchers serving Emerald Isle would not have frequent personal contact with the Emerald Isle police officers, firefighters, and emergency medical services personnel, and working relationships would not be as close as exists currently.

 

  • As noted in the memo from Chief Wilson, the lack of staffing at the Police Department (if alternative staffing is not provided) potentially impacts the safety and efficiency of the Emerald Isle police officers.  Individuals that are arrested in Emerald Isle are brought to the station for processing, and the presence of the dispatchers allows for other police officers to be summoned to the station if necessary.  Alternative staffing at the Police Department at strategic times of the day and year may address this issue.     

 

  • The report from Mike Addertion indicates that existing Town personnel would receive priority for the new positions at the consolidated E-911 center.  However, timing issues could potentially result in vacant dispatcher positions in Emerald Isle prior to the actual transition.  These positions would likely be difficult to fill prior to the actual transition.  This concern is expressed in Chief Wilson’s memo.  It may be possible to provide an incentive for existing dispatchers to remain with the Town in the interim, or it may also be possible for the County to actually hire new dispatchers and assign them to the Town prior to the transition.

 

  • The consolidated E-911 center could potentially result in reduced accountability for the quality of the services provided, as far as Emerald Isle is concerned.  Currently, if the Emerald Isle Police Department, Fire Department, or EMS squad have complaints or concerns about the quality of E-911 services, these complaints and concerns can be addressed in-house very easily and service can be tailored to meet Emerald Isle’s specific needs.  If Emerald Isle participates in a consolidated E-911 center, that consolidated center will have multiple customers, perhaps with competing needs and priorities.  Additionally, it could potentially be more difficult to resolve complaints and concerns expressed by Emerald Isle personnel, as the manager of the consolidated E-911 center will presumably answer to the County Manager and ultimately the County Commissioners. 

The establishment of a Chiefs’ Advisory Board, consisting of Police, Fire, and EMS chiefs from different areas of the County could provide helpful guidance (in an advisory role) to the consolidated E-911 center manager, and could help to address this issue.

 

  • The consolidated E-911 center would allow for greater staff development and career progression for the dispatchers, which theoretically should improve service.

 

  • The consolidated E-911 center would allow for widespread implementation of Emergency Medical Dispatch (EMD) services.  EMD involves the training of dispatchers to provide patient care information over the telephone until the emergency personnel arrive.

 

  • The consolidated E-911 center would save money from a county-wide perspective, and would eliminate redundancy of expensive communications equipment at 4 locations in the County.
 

Financial Impacts

The financial impact on Emerald Isle is largely dependent on whether or not, and to what degree, the Town would maintain a human presence at the Police Department.  The following scenarios are presented for the Board’s information:

 

  1. The County proceeds with a consolidated E-911 center with Atlantic Beach and Morehead City, and Emerald Isle chooses to continue its own E-911 operations.

 

·        The County’s annual cost would likely be similar to the estimates provided in the attached report.  The County’s annual cost funded by general tax revenues would increase by approximately $520,000, and the County would likely need to increase the County property tax rate by .7 cent.  Emerald Isle property owners would bear this increase as would the rest of the County.  Emerald Isle property owners would then be paying approximately 1.22 cents of County property taxes for the consolidated E-911 center that they do not utilize (with the exception of emergency calls from mobile phones).

 

·        The Town would continue to levy the equivalent of 1.27 cents on its property tax rate for E-911 services.

 

·        The County would likely increase the monthly E-911 surcharge from the current $0.35 per month to a higher amount.  If the Town continues to operate its own E-911 center, the Town should request that the County continue to be responsible for the Town’s E-911 capital needs or that the County cease to levy the monthly surcharge in the Town.  The Town would then presumably levy its own E-911 surcharge.

 

·        NET RESULT = potential .7 cent property tax rate increase for Emerald Isle property owners AND potential increase in E-911 surcharge.

 

  1. The County proceeds with a consolidated E-911 center with Atlantic Beach, Morehead City, and Emerald Isle.  Emerald Isle does not maintain a human presence at the Police Department, other than normal 8 am – 5 pm business hours.

 

·        The County’s annual cost funded by general tax revenues would increase by approximately $520,000, and the County would likely need to increase the County property tax rate by .7 cent.  Emerald Isle property owners would bear this increase as would the rest of the County.  Emerald Isle property owners would then be paying approximately 1.22 cents of County property taxes for the consolidated E-911 center that they fully utilize.

 

·        The Town would retain the Police Records Clerk position to provide records management services and provide daytime customer service between 8 am and 5 pm.  The Town would be able to decrease expenditures by approximately $140,000, or the equivalent of 1 cent on the Town tax rate.  

 

·        The County would likely increase the monthly E-911 surcharge from the current $0.35 per month to a higher amount.  Because the Town no longer operates its own E-911 center, the Town would not receive any funding from this revenue source. 

 

·        NET RESULT = potential .3 cent property tax rate decrease for Emerald Isle property owners (.7 cent County increase minus 1 cent Town decrease) AND potential increase in E-911 surcharge.

 

  1. The County proceeds with a consolidated E-911 center with Atlantic Beach, Morehead City, and Emerald Isle.  Emerald Isle maintains a human presence at the Police Department from 8 am until 1 am daily during the week, with 24-hour coverage during a 4-month period during the summer tourism season, and 24-hour coverage all year long on the weekends. 

 

·        The County’s annual cost funded by general tax revenues would increase by approximately $520,000, and the County would likely need to increase the County property tax rate by .7 cent.  Emerald Isle property owners would bear this increase as would the rest of the County.  Emerald Isle property owners would then be paying approximately 1.22 cents of County property taxes for the consolidated E-911 center that they fully utilize.

 

·        The Town would retain the Police Records Clerk position to provide records management services and provide daytime customer service between 8 am and 5 pm.  The Town would also retain one additional full time Police Receptionist and several part-time Police Receptionists to cover the evening, night, and weekend hours.  The Town would be able to decrease expenditures by approximately $66,000, or the equivalent of .47 cent on the Town tax rate.  

 

·        The County would likely increase the monthly E-911 surcharge from the current $0.35 per month to a higher amount.  Because the Town no longer operates its own E-911 center, the Town would not receive any funding from this revenue source. 

 

·        NET RESULT = potential .23 cent property tax rate increase for Emerald Isle property owners (.7 cent County increase minus .47 cent Town decrease) AND potential increase in E-911 surcharge.

 

  1. The County proceeds with a consolidated E-911 center with Atlantic Beach, Morehead City, and Emerald Isle.  Emerald Isle maintains a human presence at the Police Department from 8 am until 1 am daily during the week and the weekends, with 24-hour coverage during a 4-month period during the summer tourism season. 

 

·        The County’s annual cost funded by general tax revenues would increase by approximately $520,000, and the County would likely need to increase the County property tax rate by .7 cent.  Emerald Isle property owners would bear this increase as would the rest of the County.  Emerald Isle property owners would then be paying approximately 1.22 cents of County property taxes for the consolidated E-911 center that they fully utilize.

 

·        The Town would retain the Police Records Clerk position to provide records management services and provide daytime customer service between 8 am and 5 pm.  The Town would also retain one additional full time Police Receptionist and several part-time Police Receptionists to cover the evening, night, and weekend hours.  The Town would be able to decrease expenditures by approximately $72,000, or the equivalent of .51 cent on the Town tax rate.  

·        The County would likely increase the monthly E-911 surcharge from the current $0.35 per month to a higher amount.  Because the Town no longer operates its own E-911 center, the Town would not receive any funding from this revenue source. 

 

·        NET RESULT = potential .19 cent property tax rate increase for Emerald Isle property owners (.7 cent County increase minus .51 cent Town decrease) AND potential increase in E-911 surcharge.

 

The financial impact is also dependent upon the County’s actions with regard to funding the additional cost associated with a consolidated E-911 center.  For purposes of comparison, I have assumed that the County would raise the County General Fund tax rate, however, it is possible that the County would make expenditure reductions in other County service areas to provide funding for the E-911 center.  If this is the case, the financial impacts would be more positive for Emerald Isle.

 

Other Potential Impacts

The Board may want to consider these other potential impacts in the decision making process:

 

·        In general, there is considerable distrust of the County among Town staff and Town citizens, and there will likely be great reluctance to “trust” the County to fund and operate a consolidated E-911 center in the correct manner.  Historically (and currently), there is a belief in the community that the County is not responsive to Emerald Isle’s issues and concerns.  There is fear that the County will not properly manage a consolidated E-911 center, and that the Town’s public safety needs will not be met as well as they are with the current service.  

 

·        The Emerald Isle Police Department is in need of additional space, and at a minimum, the existing offices are in great need of modernization.  At this time, I am considering requesting funding in the FY 04-05 budget to hire an architect to examine alternatives to redesign and modernize the existing Police Department offices and/or expand the building.  If the E-911 communications function is transferred to the County, this would likely eliminate the need to expand the building, and redesign and modernization of the existing office space would likely be sufficient to meet the department’s foreseeable needs.

 

·        Although no decisions have been made yet, it appears as if there is significant interest in a consolidated E-911 center from Morehead City and Atlantic Beach.  Emerald Isle may be the only area of the County that does not participate.

 

·        Although alternative staffing scenarios, such as those discussed above, could eliminate some concerns, the Police Chief and Fire Chief are opposed to a consolidated E-911 center at this time, and a transition could also harm the morale of some employees in the Police department.  The Board should note that at the time of writing this memo, I have not yet discussed these alternative staffing scenarios with the Police Chief (who was out of town on vacation), and I am uncertain as to whether or not these approaches would allay his concerns.

 

Decision – Alternatives to Consider

Although there may be other alternatives, I believe the Board has three choices on this issue:

 

1.      The Town could decide to continue business as usual and continue to provide E-911 services with Police Department staff.  The County and the other municipalities would be free to proceed in any manner they deem best.  If the Board makes this decision, the Town should request that the County either continue to fund the Town’s E-911 capital needs from the monthly E-911 surcharge revenues, or request that the County cease to levy this surcharge on Emerald Isle telephone lines.  The Town currently has the option of levying this surcharge itself, regardless of whether or not the County levies this surcharge.  It would not be in the best interest of the Town’s property owners to have two local governments levying an E-911 surcharge, and some agreement between the County and the Town should be reached. 

 

2.      The Town could decide to continue business as usual in the short-term, and observe the new consolidated E-911 center for some “trial period”.  The Town could then decide whether or not to partner with the County and the other municipalities after we have a clearer understanding of the efficiency and effectiveness of the new consolidated E-911 center.  In the meantime, the Town should request scheduled funding for the new E-911 telephone equipment in FY 04-05.

 

3.      The Town could decide to partner with the County and the other municipalities from the beginning.  If the Town decides to take this approach, we should develop a strategy to insure that the Town can continue to provide dispatch services until the transition has occurred, and also address any outstanding concerns from the Police and Fire departments, and also Emerald Isle EMS.

Commissioner Wootten asked Mr. Addertion what he thought made this seem attractive to Morehead City and Atlantic Beach, and not in his mind, attractive to Emerald Isle.

Mr. Addertion he said he was not sure, he felt those towns may see it as a chance to improve service. 

Commissioner Isenhour expressed the concern that the Town may be able to save money, but felt they are likely to have reduced quality of the services provided.

Commissioner Messer felt the Town would lose personal contact.  He liked for our citizens and visitors to be able to walk into this Police Station and be able to talk to a body instead of looking at a monitor. 

Commissioner Isenhour said he didn’t see closing the Police Department at night.  He felt they would still have to have someone there.  Commissioner Messer responded that if they had someone there it might as well be a dispatcher.

Commissioner McElraft cautioned about becoming isolationist.  She felt the Town should be team players on this.  Commissioner McElraft noted there were some advantages.  She noted the medical help on the other end of the telephone call while EMS is on the way.  Commissioner McElraft also said she knew the Police Chief was not in support of this, and she respected his views and felt his concerns were legitimate about the dispatchers.  She asked Mr. Addertion if they could give him a “maybe” and see how this progressed, see what the other towns do.  Commissioner McElraft said she did not want to lose any service that we have but she wasn’t sure that they would.  She felt they definitely had to keep overnight coverage.  Commissioner McElraft said if they weren’t careful they would not get their 911 dollars back here, and possibly the citizens may be double taxed.  She said if they have a county system, Emerald Isle would probably be paying a big chunk of that whether they belong to it or not. 

Commissioner Wootten said that the Alternative 2 as outlined by the Town Manager is basically - assume business as usual in the short term - which is what he would like to do.

Commissioner Isenhour agreed that he would like to take a wait and see attitude. 

Mayor Schools asked Mr. Addertion if there were other similar counties that have a successful program.  Mr. Addertion mentioned Dare County that uses a centralized system, and they are comparable to us, but they never had as many dispatch centers that they needed to combine later, they have always been centralized.

Motion was made by Commissioner Wootten to agree with the Town Managers Alternative #2, that the Town continue to do business as usual in the short term, just not make a decision at this point in time. 

Commissioner McElraft said she felt they needed to make a decision that they are still interested, not making a decision at all would leave the County with the opinion that there is no interest. 

Mr. Addertion said the County is not looking for a hard and fast decision, they are just trying to gauge interest.  He said if the Town writes a letter that is neutral that would be fine.  He said they were not looking for the Town to make a decision this early in the process.  He said as this develops over the next few months the Board can determine whether they want to come on board. 

After further discussion by the Board the general consensus was that the Town Manager draft a letter for the Board’s review that stated that at this time Emerald Isle is not interested in joining but that they will keep abreast of the facts, making sure of exactly how the system works, and if it is right for Emerald Isle.

11.  COAST GUARD ROAD FLOOD WATER PROJECT

 

Town Manager Frank Rush presented information to the Board concerning the Coast Guard Road Flood Water Project.  The following memo from Town Manager Frank Rush to the Board is as follows:

 

 Resolution Authorizing Contract Amendment – Moffatt & Nichol Consulting Contract for Coast Guard Road Flood Water Project

The Board is asked to approve the attached resolution authorizing a contract amendment with Moffatt & Nichol. The contract amendment reflects a change in the project strategy, and is presented in order to make it easier to track project and contract expenditures.

 

As discussed previously, we have changed the approach for the Coast Guard Road Flood Water Project from what was originally envisioned.  Originally, the plan was to construct all 8 or 9 pump locations and associated piping at the same time, and finance these improvements with a 10-year debt instrument.  The revised strategy now calls for completing the project in multiple phases over time on a pay-as-you-go basis.  As you know, we are currently in the detailed design phase for Phase I, which includes the installation of 3 pumps on Fawn Drive, Deer Horn Drive, and Conch Court, and associated piping. 

 

The Town’s current contract with Moffatt & Nichol includes all permitting, design, and construction administration work associated with the entire project.  The total amount authorized by the Board in the current contract is $299,872.  The Board should note that there have been several minor additions to the contract that I authorized over the past 15 months.  This additional work was necessary to keep the project and other important initiatives on track, and includes, among other things, work associated with locating the new water tank on the Emerald Isle Woods site, additional water quality testing, additional analyses to determine the usefulness of the Cook property recently acquired at the west end of the island, and additional underground utility surveys to avoid disruption of public utilities during construction of Phase I.  Additionally, there will be a need to install two monitoring wells adjacent to Emerald Isle Woods once we begin pumping with the Phase I system, and this cost will be in addition to the current contract.  The total cumulative additional cost of all of these items is $57,492.  As a result, the total contract amount for all aspects of the entire project should now be $357,364.

 

As you know, the Town instructed Moffatt & Nichol to temporarily halt all permitting work for the time being, and directed M&N to focus on detailed design for Phase I only.  In light of the change in the project strategy, and in order to better track contract and project expenditures, I asked Moffatt & Nichol to separate the contract into the 3 components below, and Moffatt & Nichol assigned the contract costs as follows:

 
  1. Permitting for the Overall Project - $144,550
  2. Final Design, Construction Documents, and Construction Administration for the Interim

(Phase I) System - $158,331

  1. Final Design, Construction Documents, and Construction Administration for the Remaining (Future Phases) System - $54,483.
As you know, a great deal of the work associated with permitting the overall project has already been completed, and the Town has already paid $91,622 of the total $144,550 cited for “Permitting for the Overall Project”.  The Town has authorized the “Final Design, Construction Documents, and Construction Administration for the Interim (Phase I) System” and has already paid $26,410 of the total $158,331 cited above.  No work has been completed on the  “Final Design, Construction Documents, and Construction Administration for the Remaining (Future Phases) System”, and nothing has been paid.

The attached resolution reduces the total authorized contract amount to $249,953.  The resolution authorizes only the $91,622 already paid for “Permitting for the Overall Project”.  I anticipate bringing an additional contract amendment for the remaining amount to the Board when the remaining “Permitting for the Overall Project” work is initiated.  The attached resolution also authorizes the full $158,331 for “Final Design, Construction Documents, and Construction Administration for the Interim (Phase I) System”.  I anticipate bringing an additional contract amendment for “Final Design, Construction Documents, and Construction Administration for the Remaining (Future Phases) System” at such time that the Town decides to proceed with future phases of the project.  Any future contract amendments should mirror the amounts cited above. 

Capital Project Budget Ordinance Amendment

The attached capital project budget ordinance amendment is necessary to reflect the change in the financing plan for this project.  The attached amendment eliminates the reliance on installment financing proceeds for the construction of the project, and also appropriates sufficient funds to cover the revised Moffatt & Nichol contract expenses, which were also originally planned to be financed with installment financing proceeds.

The attached amendment reduces the project budget to $3.76 million, and includes only the land acquisition costs, Moffatt & Nichol contract costs, and other legal / miscellaneous expenses associated with the project.  Phase I construction costs are not included in the attached amendment, and the Board will need to consider an additional amendment to the capital project ordinance later this year when construction of Phase I begins.  The targeted funding source for Phase I construction is the FY 04-05 General Fund budget allocation that was previously earmarked for debt service for this project.  The Board will also need to consider another amendment to the capital project ordinance at such time that the completion of “Permitting for the Overall Project” is authorized.

The attached amendment includes the transfer of $287,953 from the FY 03-04 General Fund budget to cover Moffatt & Nichol contract expenses and other legal / miscellaneous expenses associated with the project.  As noted above, these expenses were originally intended to be reimbursed with installment financing proceeds just prior to construction.  Because the Town no longer intends to finance the project, an alternative revenue source for these expenses must be identified.  The $287,953 transfer is explained in the next paragraph.

General Fund Budget Amendment

The attached budget amendment appropriates an additional $287,953 to the FY 03-04 General Fund budget to be transferred to the capital project budget ordinance for the Coast Guard Road Flood Water Project.  There are two funding sources identified for this $287,953.

An additional $200,000 is anticipated from local option sales taxes in FY 03-04.  As you know, FY 03-04 is the first full year of the “beach district effect” on our local option sales tax revenues.  The FY 03-04 budget conservatively estimated $1,400,000 of local option sales tax revenues, however, it now appears that we will receive approximately $1,600,000 from this source.  Through the first 7 months of the fiscal year, the Town received approximately $984,000 of local option sales tax revenues.  The remaining 5 months are historically “strong” months, and I am reasonably confident that we will reach the $1,600,000 target.

An additional $87,953 is anticipated from building permit fees in FY 03-04.  We continue to experience record levels of new construction in Emerald Isle, and through the first 9 months of the fiscal year, the town has collected approximately $187,000 of permit fees.  The FY 03-04 budget only anticipates $150,000; thus we have already exceeded the budget estimate by $37,000.  Based on historical trends, I am somewhat confident that we can expect an additional $51,000 in building permit revenues over the next 3 months. 

The Board should note that if we do not reach these revised budget estimates for local option sales tax and building permit revenues, this additional appropriation will be covered by General Fund balance by default.  General Fund balance is the only other potential funding source for the Moffatt & Nichol contract, so if we did not anticipate these additional revenues, the funding for the M&N contract would mostly likely be appropriated from General Fund balance anyway.

As reported in February at Pine Knoll Shores, all other General Fund revenues appear to be on target, with the exception of solid waste fees.  If other General Fund revenues do not meet estimates, those shortfalls will likely be covered by General Fund balance also.  Even with the projected shortfall in solid waste fees, I do not envision any significant use of General Fund balance to balance the FY 03-04 budget.

Resolution Authorizing Hazard Mitigation Grant Program / Flood Mitigation Assistance / Pre-Disaster Mitigation Grant Application for Coast Guard Road Flood Water Project

The Board is asked to approve the attached resolution authorizing a $750,000 grant application to FEMA and the NC Division of Emergency Management for construction of a future phase (Phase II) of the Coast Guard Road Flood Water Project. 

The Town recently received notification of additional grant funds available to North Carolina local governments in the wake of Hurricane Isabel.  There are actually 3 separate grant programs, however, the application process is combined for the 3 programs.  The grant application deadline is June 1, 2004, and grant awards are expected to be announced over the next year.  At this point, I have been advised that no local match is required, however, it is possible that a local match (in the 25% range) may ultimately be required if the Town is awarded a grant through one of these 3 programs.

The Town’s grant application would request funding for the construction of 3 planned pumps and associated piping in Land’s End and at Island Circle, and for required modifications to the Emerald Isle Woods site.  After the Fawn, Deer Horn, and Conch locations, the Land’s End and Island Circle locations appear to be the next highest priorities for flood relief along the Coast Guard Road corridor.

Realistically, the Town’s chances of securing grant funds through one of these programs are slim, considering the extensive flooding damage elsewhere in eastern NC and the criteria outlined for the grant awards.  However, if the Town is able to secure grant funding for these 3 pump locations, it will result in considerable savings to our property taxpayers, and will create an excellent chance that the Town will be able to lower the General Fund tax rate in FY 05-06 or soon thereafter.

Commissioner Wootten asked the Town Manager if Moffat & Nichol had been told to pursue the surface water, he didn’t want them to spend money on permitting for ground water if that is not what is wanted.

Town Manager Rush said that he had discussed that with them informally.  He said he had not formally communicated to them to pursue the surface water.  He said as of this moment they have ceased all permitting activities.  He envisioned once Phase I is started coming back to the Board and determining when to start dealing with the permitting phase again.  Town Manager Rush said perhaps as early as summer or fall he would come back to the Board to determine whether or not, and when, the Board wanted to proceed with permitting for the overall project. 

Commissioner Wootten said he would like to discuss the option Town Manager Rush has chosen which involved moving money from what is projected to be surplus for this year.  He said this is the first they have heard of this surplus this year and he would prefer the Board to make that decision as to what to do with that surplus in the budget review process in May, he felt they may have a use for part of that $287,000 in some way that would hold down taxes for next year, and at the same time they might take some of this $287,000 and let it go to general fund reserve this year.  Commissioner Wootten felt this was not a decision that had to be made now, it would have to be made by June 30, but then they will have gone through the budget process and would have all the numbers in front of them.  He encouraged the Board not to take action on the budget amendment tonight.

Town Manager Rush noted that some time before now and June 30 the Board needed to identify $287,953 to go into the Coast Guard Stormwater Project.

Commissioner Messer said they have a situation here now and they have the money to pay for it.  He said if they use this money now and it’s gone or we keep it, whatever is going to be down the road will be down the road. 

Commissioner Wootten said they will use the surplus for something, but that he felt that decision should be made in the context with the total budget process not as an individual action tonight. 

Doje Marks, 134 Sandcastle Drive, asked how the Board would tell the people in Deer Horn Dunes that they were putting this off now.  She said that Mr. Rush had identified a source of funding and she felt they should go forward with this.  The Board assured Ms. Marks that the project was still proceeding, the only discussion being as to how they will pay for it.

Motion was made by Commissioner Messer to approve the Resolution Authorizing Contract Amendment with Moffatt & Nichol.  The Board voted unanimously 4-0 in favor.  Motion carried.

Motion was made by Commissioner Messer to approve the Capital Project Budget Ordinance Amendment as presented.  The Board voted unanimously 4-0 in favor.  Motion carried.

Motion was made by Commissioner Messer to approve the General Fund Budget Amendment as presented.  The Board voted 1-3, Messer in favor, Isenhour, McElraft, and Wootten opposed.  Motion failed.

Motion was made by Commissioner Messer to approve the Resolution Authorizing a Grant Application for Phase II construction.  The Board voted unanimously 4-0 in favor.  Motion carried. 

 

12.  RESOLUTION AUTHORIZING CLEAN WATER MANAGEMENT TRUST FUND GRANT APPLICATION TO STUDY POTENTIAL REMOVAL OF OCEAN STORM WATER OUTFALLS NEAR BOGUE INLET PIER.

Town Manager Frank Rush stated that the Board is asked to approve the attached resolution authorizing a Clean Water Management Trust Fund grant application to study the potential removal of 4 existing ocean storm water outfalls on the beach near Bogue Inlet Pier.  The total grant amount that would be requested is $32,000, and would be matched with $8,000 (20%) from the Town.  The local match would be included in the FY 04-05 budget. 

As noted in Mr. Rush’s memo to the Board, if awarded, these funds would be used to hire a qualified engineering firm to study this issue and identify feasible alternatives to eliminate these outfalls and redirect the storm water to an alternative location(s).  There are likely a wide range of alternatives that can be considered, and the selected engineering firm would be charged with identifying alternatives, estimating the costs of each alternative, and identifying obstacles to the implementation of each alternative. 

Commissioner McElraft asked about the Town’s obligations with this grant once they find the solution.

Town Manager Rush said at this point in time there is no obligation, it is basically a mission to seek out the alternatives and what it would cost to implement.  He envisioned if they get a grant, and hire a firm to look at this and they come up with a good solution, they would then turn around and submit an application to the Clean Water Management Trust Fund or some other organization to actually fund the construction phase of the project.  There is no commitment to follow through at this time.

Motion was made by Commissioner Wootten to approve the Resolution Authorizing a Clean Water Management Trust Fund Grant Application to Study the Potential Removal of Ocean Storm Water Outfalls Near Bogue Inlet Pier.  The Board voted unanimously 4-0 in favor.  Motion carried.

13.  BOGUE INLET CHANNEL EROSION RESPONSE PROJECT

Town Manager Frank Rush stated that the first item is a resolution authorizing an amendment to the Town’s contract with Coastal Planning & Engineering for the construction plans and specifications phase and the bid process phase.  The total amount of the contract amendment is $67,500, and was fully anticipated when the Town signed the original contract with CPE in May 2002.

Motion was made by Commissioner McElraft to approve the Resolution Authorizing Contract Amendment with Coastal Planning & Engineering.  The Board voted unanimously 4-0 in favor.  Motion carried.

Town Manager Frank Rush stated that the second item is a review of the Waterbird Management Plan (a copy of which is attached to, and incorporated into these minutes) for the Bogue Inlet Area.  The plan is the result of a cooperative effort between the US Fish and Wildlife Service, the NC Wildlife Resources Commission, and the Town.  According to the plan, the Town would contract with the NC Wildlife Resources Commission for a 3-year period for the protection of waterbird habitat, bird monitoring, and public education activities.  Total cost is approximately $110,000.

Mr. Rush said the most significant impact that our citizens would recognize was if this plan goes forward there would be certain areas of the spit that would be posted and roped, and basically human and pet entry would be prohibited in those areas.  He added they worked very hard so that by delineating those bird habitat areas, they didn’t impede the public access to the far end of the spit. 

Mr. Rush noted that at this point in time it has not been finalized.  He said there is an outstanding issue with the North Carolina Division of Coastal Management.  They have an attorney in the State Attorney General’s office investigating the legality of the posting and roping of those areas.  He added that if they get a response back from the Attorney Generals office that does not allow the posting and roping in those areas there may be some adjustment to the plan at that time.  Mr. Rush said he wanted to present this tonight so the public could start to learn about what the restrictions would be in that area and also make sure the Board is comfortable with their proceeding any further.  He noted a formal contract would come before them at a later date.

Discussion followed with the Consensus of the Board being that they were in general agreement with the Waterbird Management Plan.  Town Manager Rush said he would inform the Board of the results from the Attorney Generals review, and at some point bring an ordinance to them establishing a protected bird area.

14.  RESOLUTION AUTHORIZING AGREEMENT WITH GOVDEALS, INC. FOR INTERNET AUCTION OF GOVERNMENT SURPLUS ITEMS

Town Clerk Rhonda Ferebee presented information to the Board concerning this resolution.  She explained that GovDeals is an on-line internet auction service developed, and specifically designed to assist municipal and county governments in the sale of surplus property.  Ms. Ferebee outlined the benefits of using this service to include; increased potential income, reduction of storage space required, and a smoother sales process.  The agreement with GovDeals will provide an alternative means for selling items as they are declared surplus.

Motion was made by Commissioner Isenhour to approve the Resolution Authorizing Agreement with GovDeals, Inc. for Internet Auction of Government Surplus Items.  The Board voted unanimously 4-0 in favor.  Motion carried.

14.5  DISCUSSION – TAXICAB ORDINANCE

Town Manager Frank Rush said that the Town for several years has had an ordinance regulating taxicab operations in Emerald Isle, at least back to the mid 80’s with revisions done in 1998.  He said the ordinance requires anyone operating a taxicab or a limousine service, any transportation for hire, to get a permit from the Town of Emerald Isle to provide that service in Town, a franchise designation.  Another requirement is a drivers’ permit which can be issued by the Town Manager upon the submission of items required in the ordinance.  He said the franchise/permit has to be issued by the Board of Commissioners following a hearing after 7 days of advertised notice, and notice to any other taxicab companies currently authorized to provide that service on the Island.  He said that historically they can be very difficult ordinances to enforce.  Mr. Rush felt certain that we had taxicab companies operating in Emerald Isle currently that are not franchised and permitted to operate.  He said there was currently an individual in Town who wants to operate a limousine service in Emerald Isle, this application was brought forward a couple weeks ago, and he added there is no one on staff with a good understanding of how this ordinance is supposed to work, and they were delayed in bringing the application to the Board tonight. 

Mr. Rush said one option would be to process the application, and bring back to the Board either at the May meeting or possibly have a special meeting to consider this after reviewing the application.  Another option, Mr. Rush noted, is there are some communities that have done away with the permit/franchise requirement, and simply require a drivers’ permit and privilege license to operate in this manner.  Mr. Rush said he wanted to bring this issue to the Board’s attention, and felt the best solution may be to simply eliminate the franchise from the definitions. 

Commissioner Wootten asked if Mr. Rush was asking the Board, whether as a result of delay or whatever reason, to modify the ordinance to do away with a permit. 

Mr. Rush said he was asking if the Board would like to have a special meeting to expedite this person’s request, or if they would like to consider the request at the May meeting.  The request to modify the ordinance is driven by the fact that this is a terribly difficult ordinance to enforce.  He said this is two separate issues, but the second one can solve the first problem. 

Commissioner McElraft asked if this could be done tonight without advertising.  Mr. Rush said this was not like the zoning ordinance.  There is no requirement as far as advertising, and holding a public hearing. 

Town Attorney Richard Stanley said the Board could repeal Division 3 of the ordinance which is the division that sets up the need for a certificate or permit, to operate a taxicab business, and leave in place the requirement which is Division 2, that anybody driving a taxicab in the Town has to have a permit to do so.  That is a showing of chauffeur’s license, clear driving record, good character, that type of thing and the requisite insurance, and a privilege license.  Attorney Stanley said the whole intent of this ordinance is that somebody from Jacksonville or Swansboro can’t come over here and pick up fares, but they can come over here and drop them off, but this is being abused.  He agreed with Mr. Rush that this is very hard to enforce.  He said the question is do they want to be in the enforcement business and still require certificates, or do away with that and just require a drivers permit. 

Commissioner Messer agreed with requiring a drivers permit and privilege license.  He felt they were setting the taxi people aside from others that do business on the Island and are only required to have a privilege license.  Commissioner McElraft added that it was important they still require the drivers’ information and insurance.

Attorney Stanley said under the state enabling statute, if you go to the trouble of having to buy this rolling equipment, and hiring these people, you should have some protection, and have the opportunity to expand their service before someone else comes in, which was originally the idea behind this.  Now with so many towns and so many services there may not be a need for this anymore. 

Commissioner Wootten said he wasn’t inclined to change an ordinance tonight.  He was more than willing to have a special meeting in order help get this process going and then maybe the next month take up the broad issue of the ordinance. 

Attorney Stanley said if they move forward with the present ordinance they would need to advertise in the newspaper, send notices to those already holding franchises within the Town so they have the opportunity to come to the public hearing and contest the new franchise. 

Motion was made by Commissioner McElraft to repeal Division 3 of the taxicab ordinance that is codified in Chapter 10 of the Town Code, with Division 3 being Sections 10-201 through 10-208.  The Board voted 3-1, Isenhour, McElraft, Messer in favor, Wootten opposed.  Motion carried.

Motion was made by Commissioner McElraft to allow the Town Manager to issue driving permits for the taxicab permits. The Board voted unanimously 4-0 in favor.  Motion carried.

14.6  RESOLUTION FORMALLY ESTABLISHING THE BEACH NOURISHMENT DEBT SERVICE/RESERVE FUND

 Town Manager Frank Rush discussed this resolution with the Board which formally establishes the Beach Nourishment Debt Service/Reserve Fund.  Mr. Rush stated that the NC Local Government Commission has requested that the Board adopt this resolution to formalize the restrictions on the use of monies in this fund.  He noted that when the Town sought approval for the beach nourishment bonds, the first phase being issued in the fall of 2002, as part of the application process to the Local Government Commission, they presented their strategy for repaying those bonds, which was an integral part of that application because there are not many debt issues for beach nourishment in North Carolina.  Mr. Rush said the financial plan for paying the bonds was very well received however at that time the Local Government Commission contends they requested the Town approve a resolution.  He noted the language in the resolution before the Board tonight does not change anything about the way the Town has managed the beach nourishment debt service reserve fund either to this point, or as intended to for the remainder of the term of the bonds, with one exception, and that is that any expenditures for beach nourishment related items other than debt service payments, would need to be approved by the Local Government Commission prior to spending those funds out of the beach nourishment debt service reserve fund.  Current financial projections indicate that the Town will retain a fund balance of nearly $1 million after all general obligation bonds are fully retired.

To date, the Town has utilized a total of approximately $269,000 from this fund for purposes other than debt service payments.  Approximately $209,000 was utilized to cover cost-overruns on the $11.8 million Eastern Phase Beach Nourishment Project completed in 2003.  An additional $60,000 was utilized to construct the new 1,000 linear ft. dune line in front of Pier Pointe condominiums last month.  Additionally, the Town temporarily utilized approximately $1.3 million of the current fund balance in this fund to cover the construction const of the FEMA Post-Isabel Beach Renourishment Project completed last month.  This amount will be reimbursed to the Beach Nourishment Debt Service / Reserve Fund later this year after the FEMA / NC Division of Emergency Management reimburses the Town.  A sufficient fund balance is on hand in the Beach Nourishment Debt Service / Reserve Fund to meet all scheduled debt service payments during FY 04-05.

Mr. Rush felt the most serious implication of this resolution was that the surplus of close to $1 million is eyeballed as a potential funding source for any cost overruns they may see on the construction phase of the Bogue Inlet project, and this would be the funding source Mr. Rush would recommend the Board use to cover that cost overrun.  If they want to use the money for that purpose, according to this resolution, they would have to go to the Local Government Commission and get their approval to use those funds.  He felt if it came to that he felt they could make a convincing case to use those funds if necessary, but this is another level of decision making that needs to occur and also the timing associated with that will be a challenge.

Commissioner Isenhour asked what happened if they said no.  Mr. Rush responded that if they said no then the Board would have to either identify an alternative revenue source or scale back the project in some way to make it come within budget.  Mr. Rush felt that because the Bogue Inlet Project is basically what the bonds are for in the first place, and the Local Government Commission would be concerned if they go over budget anyway, it the Town is identifying these funds to solve that problem, his opinion was they would look favorably upon that. 

Commissioner Wootten asked if this requirement from the Local Government Commission was based on state law or are we faced with an agency that wants to have more control over Emerald Isle. 

Mr. Rush said there is no requirement in the bond documents as far as our bond holders are concerned, and as far as the rating agencies are concerned, and to his knowledge no legal requirement, it is just part of their rule as being the overseers of local government financial issues in North Carolina that they think is prudent. 

Commissioner Wootten said this will require the Town to go to a set of bureaucrat’s to ask for approval to spend our own money.  He was concerned about the channel relocation and the fine line between the channel versus beach renourishment and the interpretation by a bureaucrat that is not favorable to us.  He asked what happened if the Town didn’t sign.

Mr. Rush said they will be going to the bond market in September or October and they will need local government permission to actually issue the bonds at that time, and they actually coordinate the sale of those bonds so they may decide not to issue those bonds for us. 

Motion was made by Commissioner McElraft to approve the Resolution Formally Establishing the Beach Nourishment Debt Service/Reserve Fund.  The Board voted unanimously 4-0 in favor.  Motion carried.

14.7 CAPITAL PROJECT BUDGET ORDINANCE AMENDMENT – NC 58 SIDEWALK PROJECT

 Town Manager Frank Rush discussed this item with the Board.  As noted in his memo to the Board they are asked to approve the attached capital project budget ordinance amendment for the NC 58 Sidewalk Project.  The total additional amount included in the amendment is $9,800, and this amount reflects two potential additions to the NC 58 sidewalk system.

Approximately $4,300 of the total $9,800 included in this amendment is associated with an opportunity to construct an additional 330 linear feet of sidewalk as part of the sidewalk contract that is currently in effect (for the area between Eagles and Bert’s Surf Shop and Live Oak Street and Town Hall).  As you know, that sidewalk contract is funded 80% by NCDOT and 20% by the Town.  The current contract specified a total of 1,520 linear feet of sidewalk, however, only 1,310 linear feet were actually necessary.  The contract includes an additional 210 linear feet of sidewalk that can be constructed for the original contract price.  We would like to have the contract remain in effect, and have the contractor construct a 6’ wide sidewalk from Leisure Lane to Black Skimmer Drive (directly in front of the Town Hall building) and from Black Skimmer Drive east across the frontage of the Bogue Banks Water Corporation property.  The total length of additional sidewalk would be 330 linear feet, thus the Town would be required to pay for an additional 120 linear feet.  The total additional cost to the Town would be $4,300.  This work would be completed within the next two weeks.

The completion of this additional sidewalk segment would provide a continuous sidewalk from the Bogue Banks Water Corporation property west through Town to the Eagles store.  We would like to soon connect the new sidewalk to Lee Street to provide a safe route for children from the Sound Drive / Archers Creek area to access Blue Heron Park, the Recreation Center, and the downtown area.  We are currently working with Sprint to secure an easement across their property adjacent to the Bogue Banks Water Corporation property, and plan to connect the sidewalk through to the existing cul-de-sac on Canal Court, which connects to Lee Street.  The completion of the sidewalk in front of Town Hall and the Bogue Banks Water Corporation will make it much easier to complete this link to Canal Court in the future. 

Discussion followed concerning inmate labor, construction timing, location of proposed sidewalks, and grant funding. 

Doje Marks, 134 Sandcastle Drive, urged the Board to not stall the project waiting for grants, urging for safety purposes that they push the sidewalks as fast as possible.

Mr. Rush suggested that if the Board would like to not spend the $4300 right now, they could authorize a budget amendment of $6,000 instead of $9,800 which would enable the Town to spend $5,500 on the inmate labor going from Eagles to the west, and allow 230 feet to cover the whole area in front of Town Hall, paying for an extra 20 feet at $25.00 per linear foot, hence the difference between the $4300.  The whole stretch right in front of Town Hall could be finished without spending any additional money, saving the section in front of Bogue Banks Water Corporation for inmate labor at some future date if they wanted to reduce the expenses.  He added the project won’t suffer, it will just be another 110 feet that will have to be done at some point in the future to get closer to Lee Street.  If the Board approves a budget amendment with $6,000 as opposed to $9,800 they would only be sacrificing the 110 feet in front of the water corporation at this time. 

Motion was made by Commissioner McElraft to approve the Capital Project Budget Ordinance Amendment – NC 58 Sidewalk Project appropriating $6,000.  The Board voted unanimously 4-0 in favor.  Motion carried.

14.8 BUDGET AMENDMENT – NC 58 SIDEWALK PROJECT

 Town Manager Frank Rush noted that the Board is asked to approve the attached General Fund budget amendment to transfer $9,800 from the General Fund to the NC 58 Sidewalk Project Capital Project Ordinance.  Mr. Rush recommended the Board just change the amount from $9,800 to $6,000 as far as a procedural amendment.

Motion was made by Commissioner Wootten to approve the Budget Amendment – NC 58 Sidewalk Project changing the amount from $9,800 to $6,000.  The Board voted unanimously 4-0 in favor.  Motion carried.

15.  APPOINTMENT – BOARD OF ADJUSTMENT

Motion was made by Commissioner McElraft to appoint Jerry Stockdale to the Alternate #1 Board of Adjustment position for a two year term.  The Board voted unanimously 4-0 in favor.  Motion carried.

16.  COMMENTS FROM TOWN CLERK, TOWN ATTORNEY, AND TOWN MANAGER

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

17.  COMMENTS FROM BOARD OF COMMISSIONERS AND MAYOR

 Commissioner Isenhour asked for clarification from Town Attorney Stanley in the issue of the painting of Eagles.  He said Attorney Stanley mentioned in his opinion there was no clear requirement in Section 19.71 – 74 about changes to the exterior features proposed, that says they have to once again go through the commercial review process.  He asked if, based on Attorney Stanley’s opinion, they needed to rewrite or add additional wording to this ordinance to make this absolutely clear.

Attorney Stanley said that if the Board requires them to come before them the first time and tell the colors, style, and design, that this is like a permit, and if they then change this they should come back to the Board, yet the ordinance doesn’t state this and he thought it would be a good idea.

Commissioner Messer and McElraft had no comments.

Commissioner Wootten wished to publicly thank the Planning Board.  Having sat in on several of their sessions he noted they have a lot on their plate with the implementation of the Land Use Plan and zoning.

Mayor Schools mentioned the need to designate someone to the Carteret County Transportation Committee, and being that Mayor Schools is Chairman of the TDA and therefore already serves on the Transportation Committee he had asked Commissioner Messer if he would serve as his designee and Commissioner Messer had agreed.

18.  ADJOURN

Motion was made by Commissioner McElraft to adjourn the meeting.  The Board voted unanimously 4-0 in favor.  Motion carried.

The meeting was adjourned at 8:20 p.m.

 Respectfully submitted:

Rhonda C. Ferebee
Town Clerk