MINUTES OF THE REGULAR SCHEDULED MEETING
OF THE EMERALD OF COMMISSIONERS
TUESDAY, JUNE 8, 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 Nita Hedreen, Robert Isenhour, Pat McElraft, Floyd Messer, and John Wootten. 

Others present:  Town Attorney Richard Stanley, Town Manager Frank Rush,   Town Clerk Rhonda Ferebee, Planning Director Kevin Reed, and Parks and Recreation Director Alesia Sanderson.

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

Mayor Schools read a release received from Governor Easley’s Press Office which called for a moment of silence at 11:30 a.m. on Friday, June 11, to honor President Reagan.  Mayor Schools, after reading the press release, asked those in attendance for a moment of silence.  

4.  ADOPTION OF AGENDA

Town Manager Frank Rush asked the Board to modify Item 15 – Closed Session – Pursuant to NCGS 143-318.11(6), for the Purpose of Evaluating the Town Manager’s Performance.  He requested this item be modified to also hold a closed session for Attorney/Client Privilege.

Motion was made by Commissioner McElraft to adopt the agenda with Item 15 to be amended adding Attorney/Client Privilege in the closed session.  The Board voted unanimously 5-0 in favor.  Motion carried.

5.  PUBLIC ANNOUNCEMENTS

Bill Trahman, Chairman of the Bicycle and Pedestrian Advisory Committee, presented “Wheels Around Town” T-Shirts to the Mayor and Board of Commissioners.  He explained how the Bicycle and Pedestrian Committee is trying to promote the “Wheels Around Town” event, a bicycling event that takes place on the first Saturday of each month, and is open to everyone. 

Mayor Schools also mentioned the following:

• Beach Jive After Five – Western Ocean Regional Access – Thursday June 17, 5:30 pm – 7:00 pm
• Planning Board Meeting – Monday June 28, 6:00 pm
• 4^th of July Fireworks – Bogue Inlet Pier – Sunday, July 4, 9:00 pm
• Sunset Fun Walk – Western Ocean Regional Access – Thursday July 8, 6:00 pm
• July Town Meeting – Tuesday, July 13, 6:00 pm
• Special Town Meeting – Beach Driving, Etc. – Saturday July 17, 10:00 am

6.  SPECIAL PRESENTATION TO CAROL ANGUS, RETIRING ASSISTANT PLANNING DIRECTOR

Mayor Schools and Town Manager Frank Rush presented Carol Angus, retiring Assistant Planning Director with a plaque of appreciation for her years of service.  Mr. Rush thanked Carol Angus for all she had done for the town for the last twenty one years and 10 months.  A retirement reception was held for Carol immediately prior to the Board meeting in appreciation for her service to the Town.

7.  CONSENT AGENDA

a)     Resolution Authorizing Waste Industries Contract Renewal

b)     Bicycle Path Guidelines

c)     Budget Amendments – FY 03-04 Year-End Adjustments

(General Fund, Debt Service Fund, Regional Beach Access Fund)

d)     Capital Project Ordinance Amendments – Beach Nourishment

General Obligation Bonds / Bond Anticipation Notes (Beach Nourishment Eastern Phase, Bogue Inlet / Beach Nourishment Western Phase, Beach Nourishment Monitoring)

e)     Resolution Authorizing Pre-Positioned Contract For Hurricane

Debris Removal

Town Manager Rush provided a replacement copy for agenda Item 7b. Bicycle Path Guidelines – noting that this was identical to what was in their packet with the exception that they had made it clear that skateboards are prohibited on the new bicycle path that is planned for construction.  This had been requested to be a part of the guidelines for the bike path by the Bicycle and Pedestrian Committee.  

Commissioner Isenhour commended Ms. Sanderson for the super job on the guidelines.  He asked about the section regarding bicyclist’ riding two-abreast only when safe, and whether it would be better to state single-file.  Ms. Sanderson said the town ordinance currently calls for two-abreast, she noted that she didn’t ask for single-file but had included the phrase “when safe” to try and encourage common sense use. 

Commissioner Isenhour questioned whether the Resolution Authorizing Waste Industries Contract had any negotiating room available since they no longer perform the special hauling service.  Mr. Rush stated that he didn’t believe there was, the contract being operated under now expires on June 30, 2006, and it stipulates the price would be adjusted each year by a factor equivalent to the consumer price index. Mr. Rush noted that the overall contract was reduced last year to not include special haul services.

Commissioner Wootten made the motion to approve the consent agenda.  The Board voted unanimously 5-0 in favor.  Motion carried.

8.  PUBLIC COMMENT

There were no comments from the public.

9.  FY 2004-2005 BUDGET

Town Manager Frank Rush presented the official budget ordinance and fee schedule (a copy of which is attached to, and incorporated into these minutes) to the Board regarding the FY 2004-2005 Budget for their review and consideration.   The following is provided from Town Manager Rush’ memo: 

The Board of Commissioners is scheduled to formally consider the FY 2004-2005 budget ordinance at the June 8 meeting.  A public hearing is required before the Board can formally adopt the budget ordinance, and has been scheduled for the June 8 meeting. 

The total FY 04-05 General Fund budget included in the attached budget ordinance is $6,132,241, which is a $23,931, or .39%, decrease from the FY 03-04 adopted budget amount.  The General Fund budget is balanced with a 16.5-cent tax rate, which is a 1-cent reduction from FY 03-04.  The attached budget ordinance also includes appropriations for the Town’s various Other Funds, including the Beach Nourishment Debt Service / Reserve Fund.  The Beach Nourishment Debt Service / Reserve Fund includes sufficient appropriations to meet debt service requirements for the beach nourishment bonds, and is balanced with a 48-cent Primary Benefit District (oceanfront) tax rate, and a 3-cent Secondary Benefit District (non-oceanfront) tax rate for the third year in a row.

The attached budget ordinance reflects the changes discussed by the Board of Commissioners at its May 18 and May 20 workshop meetings.  The total General Fund budget of $6,132,241 is the same amount included in the Recommended Budget, however, the attached budget ordinance does include a total of $47,597 of expenditure reductions identified by the Board at the workshop meetings.  The bottom line total for the General Fund has not changed due to the fact that this $47,597 is now reserved in a General Fund contingency account.  This contingency will be available for any unbudgeted expenditures during the fiscal year, and will only be utilized with Board approval.  The specific adjustments to the General Fund Recommended Budget that were identified by the Board of Commissioners are as follows:

            Revenues

                  No changes                                                                                             0

            TOTAL REVENUES                                                                                     0

            Expenditures

                  Development ordinance review / rewrite                                    ( 25,000)

                  Public Works part-time salaries                                                 (   3,768)

                  Fuel pump concrete pad                                                            (   3,000)

                  Village East / West study                                                           ( 10,000)

      Targeted salary adjustments                                                     (   5,000)

      Transfer to Coast Guard Road project                                      (      849)                                    General Fund contingency                                                                                47,597

            TOTAL EXPENDITURES                                                                             0

The attached budget ordinance also makes two technical adjustments to the Beach Nourishment Debt Service / Reserve Fund.  These corrections are associated with the additional $500,000 of bond anticipation notes authorized by the Board in May, and also the planned re-issuance of $3.1 million of bond anticipation notes in August 2004.  These adjustments are related entirely to the temporary nature of bond anticipation notes, and have the effect of “double-counting” the revenues associated with the beach nourishment projects.  These adjustments do not increase or decrease the total cost of these projects.

In accordance with the Board’s direction, I have also revised the General Fund 5-Year Forecast to reflect the planned reimbursement of General Fund balance in FY 05-06 for the funds used in FY 03-04 for much of the pre-construction expenses associated with the Coast Guard Road Flood Water Project.  A total of $250,000 is earmarked in FY 05-06 for this purpose.  I have also revised the 5-Year Capital Replacement / Improvement Program to reflect that the Board’s plan at this time is to delay the local match for the Emerald Isle Woods PARTF grant until FY 06-07.  Due to the phased approach for the Coast Guard Road Flood Water Project, the Town will not be able to finalize park development plans for at least another 12 – 18 months.  Town staff will request that the deadline for this grant be extended until June 30, 2007 to provide ample time to assess the impact of the flood water project on park plans, and then complete park construction prior to the deadline.  Copies of the revised General Fund 5-Year Forecast and the revised 5-Year Capital Replacement / Improvement Program are attached for your information.  The Board should note that, according to the 5-Year General Fund Forecast, the Town should be able to stabilize the tax rate at 16.5 cents for the foreseeable future.

The Board should note that the Town’s official fee schedule is attached to the budget ordinance, and is presented in conjunction with the budget ordinance.  The most significant change in the fee schedule is a $12 increase in the annual solid waste fee, which is necessary to meet increasing collection costs and solid waste volumes.  There are no other fee changes in the attached fee schedule.

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

Ron Marks, 134 Sandcastle Drive, referenced the line item for EMS in the budget, pointing out that he spoke for himself, and not representing the membership of EMS.  Mr. Marks said this is an independent incorporated agency, providing top level medical care to Emerald Isle for years at a price that can’t be matched.  He said they had submitted a proposal as an independent agency, to provide this service at this price, adding that this price was not met,

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

Commissioner Wootten asked regarding the fee schedule, when solid waste fees were collected.  Mr. Rush said this is billed with the annual property tax bills which go out in late August/early September.

Motion was made by Commissioner Isenhour to adopt the FY 2004-2005 Budget Ordinance, including the Fee Schedule.  The Board voted unanimously 5-0 in favor.  Motion carried.

10.  ORDINANCE AMENDING CHAPTER 19 – ZONING – TO ALLOW LIMITED ASSEMBLY OPERATIONS ASSOCIATED WITH CERTAIN PROFESSIONAL / TECHNICAL SERVICES AS A PERMITTED USE

Kevin Reed Planning Director spoke to the Board concerning this ordinance amendment (a copy of this ordinance amendment is attached to, and incorporated into these minutes) which would allow limited assembly operations in the B-1, B-2, B-3, and Institutional zoning districts if the assembly operation is associated with the professional service and it occupies no more than 50% of the gross floor area of the business.  Mr. Reed stated there was a business at 8101 Emerald Drive, known as Island Automation Services, specializing in the design of computerized automation control systems for manufacturing communities, designing the engineering and also minor electronic panel assembly which goes hand in hand with the manufacturing systems.  Mr. Reed said that several years ago the business had approached the Town about relocating in the Town.  He said it was discovered at that time that there was no good fit in the table of permitted uses for that type of business, and essentially they had been operating in violation of the zoning ordinance.  The Planning Board at that time was asked to consider a possible amendment in order to make them a permitted use or special use, the Planning Board in 2002 voted to deny the request.  Recently, the president of the company contacted the Town to discuss this issue again.  Mr. Reed said the matter was taken to the Planning Board.  Mr. Reed highlighted that currently he felt what they do is a permitted use in the town in terms of their engineering services, but the minor ancillary assembly operation they do is not clear in our ordinances of permitted use.  Mr. Reed said the Planning Board directed him to proceed with a possible amendment to the zoning ordinance that would clarify this type of business as a permitted use.  Mr. Reed presented the possible amendment to the Planning Board at their last meeting and they voted unanimously to recommend that the table of permitted uses be amended to clarify that a business such as Island Automation can locate within the Town provided they do not exceed 50% of their gross floor area for their assembly operations. 

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

There were no comments from the public.

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

Motion was made by Commissioner McElraft to adopt the Ordinance Amending Chapter 19 – Zoning – To Allow Limited Assembly Operations Associated with Certain Professional / Technical Services as a Permitted Use. 

Mr. Rush pointed out to the Board that there was a replacement agenda item at their places for this that does not change the text or the substance of the amendment at all, but simply makes very technical corrections in the language associated with the ordinance, grammatical corrections.

The Board voted, noting the technical corrections, unanimously 5-0 in favor.  Motion carried.

11.  ORDINANCE AMENDING CHAPTER 19 – ZONING – TO ALLOW FIBERGLASS SWIMMING POOLS WITHIN THE CAMA OCEAN SETBACK AREA

Kevin Reed Planning Director described the proposed ordinance amendment (a copy of this ordinance amendment is attached to, and incorporated into these minutes) to the Board.  Mr. Reed said that the Board of Commissioners at their May 11, 2004 meeting had requested that he and the Planning Board initiate discussion regarding the current prohibition of swimming pools within the Ocean Erodible Setback Area as defined by the North Carolina Division of Coastal Management (NC DCM).  He noted that while the town currently prohibits pools in this ocean erodible setback area, DCM through their CAMA regulations does not prohibit such pools.  Mr. Reed said the Planning Board at their May 24, 2004 meeting following discussion, voted to recommend by a vote of 4-1 to the Board of Commissioners that the town ordinance be amended to allow swimming pools within the Ocean Erodible Setback Area provided they are of fiberglass construction, and would prohibit masonry pools within the Ocean Erodible Setback Area. 

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

Doje Marks, 134 Sandcastle Drive, stated that the main reason given for this proposal to allow pools in ocean erodible areas is that oceanfront property owners can then get higher rental fees.  She said that CAMA designates that area as the 60-90 feet of beachfront most likely to erode during storms or hurricanes.  She said if Emerald Isle were hit by a hurricane such as Isabel hit the Outer Banks, she felt we would have large fiberglass boats, partially filled with water and sand, acting as a battering ram along the oceanfront.  She felt the oceanfront erodible area was unsuitable for anything except sacrificial structures, like steps, walkways.

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

Commission McElraft clarified with Mr. Reed that the primary dune is still protected.  Mr. Reed stated that was correct, the Division of Coastal Management will not allow any digging in the primary dune, and likewise will not allow anything to be done in such close proximity to the primary dune as to make it vulnerable to erosion.

Commissioner Messer asked about any special construction requirements as to anchors.  Mr. Reed stated that most of the oceanfront property is in a flood zone, and because of that requires the pools be engineered in such a fashion that they are ballasted. 

Motion was made by Commissioner Messer to adopt the Ordinance Amending Chapter 19 – Zoning – To Allow Fiberglass Swimming Pools Within the CAMA Ocean Setback Area. 

Commissioner McElraft asked to be recused from voting due to a possible conflict of interest. 

Motion was made by Commissioner Hedreen to excuse Commissioner McElraft from the vote.  The Board voted unanimously 5-0 in favor.  Motion carried.

The Board then voted on the motion made by Commissioner Messer to adopt the Ordinance Amending Chapter 19 – Zoning – To Allow Fiberglass Swimming Pools Within the CAMA Ocean Setback Area.  The Board voted 4-0 in favor.  Motion carried.

12.  COMMERCIAL REVIEW – EAGLES BEACH STORE – EXTERIOR COLOR SCHEME

Kevin Reed Planning Director gave a brief summary of this item, beginning by providing the Board with a copy of the towns color charts for their information.  Mr. Reed stated that Eagles of Emerald Isle is requesting commercial review for approval of its new building colors for its location at 8308 Emerald Drive.  He said a building permit for the store was issued after the Town adopted Section 19-73 of the Town Code.  Mr. Reed noted that section of the Code requires commercial structures within the town to adhere to the adopted color charts.  Mr. Reed said that because the permit for this location was issued after the adoption of Section 19-73, the colors of the building, the repainting must be in conformance with the towns color chart.  Mr. Reed stated that it was determined after consultation with Town Attorney Stanley that there were several options.  One was to seek commercial approval for the new color.  Mr. Reed said the Planning Board considered this request at their May 24, 2004 meeting, voting unanimously to recommend that the new paint scheme be approved. 

Commissioner Wootten asked what date the color restrictions went into effect.  Mr. Reed stated that was January 13, 1998.  He added the building permit was actually issued March 19, 1998, noting at the time the commercial review was taking place the developer of the store presented two colors for approval as part of the commercial review process, with the commercial review being ultimately approved. 

Mr. Reed said there was a question as to whether the store had to adhere to the requirement because the commercial review process actually began before the adoption of the color scheme requirements in the Town of Emerald Isle.  Mr. Reed described the options that the store had which were to repaint to the original color, repaint to another color with staff approval provided the color fell within the Towns color charts, or they could seek commercial review for the new color.  Mr. Reed said that Section 19-73 does allow the Town, after review by the Planning Board and the Town Board to deviate from the color chart. 

Commissioner Hedreen asked why one wall was left dark grey.

Mike Lincoln, Attorney representing the owner of Eagles Store, responded that the back of the store was left grey because it was the back and no one really sees it.  Commissioner Hedreen noted that the west wall was not painted.  Mr. Lincoln said that they would paint the wall if this was approved.  He stated that the process started on this building prior to the color scheme being adopted, and his client was unaware that he had to get approval before he did a new color.  Mr. Lincoln then passed photos around to the Board for their review.

Discussion concerning the color of the building followed.  Commissioner Wootten added he felt they needed to give the Planning Board guidance and direction on the issue of who must follow the rules. 

Commissioner Isenhour said it was his recollection that the Planning Board thought the ordinance should be modified so that any future painting of commercial buildings starting now would conform to the color chart, regardless of when the building was built. 

Mr. Reed said that issue did come up at the Planning Board and they had made a motion to ask the Town Board about the possibility of revisiting that issue, with the understanding that the Town Board would simply remand it back to the Planning Board whose role it was to delve into this.   Mr. Reed also noted that when the issue was presented to Town Attorney Stanley initially, he discussed the issue of possibly revisiting the ordinance to see whether or not they needed to treat commercial structures equally and evenly with regard to our color charts.

Planning Board member Eddie Barber, who was in attendance tonight, said he felt their concern was that buildings before 1998 could be painted any color, after 1998 there were guidelines.  He felt there needed to be equality and uniformity. 

Planning Board member Gerald Huml, also in attendance, agreed that all buildings should be governed by whatever is approved from this point on regardless of when the building was built. 

Motion was made by Commissioner Wootten to approve the new exterior color scheme for the Eagles Beach Store contingent on the west side being painted.  The Board voted unanimously 5-0 in favor.  Motion carried.

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

There were no comments from the Town Clerk.

There were no comments from the Town Attorney.

Town Manager Frank Rush commented that he had provided the Board with a copy of the monthly report of the Bogue Inlet project for their review.  In summary he noted that they are still on track with the project.  He said they had entered the official CAMA Major permit phase for the project.  He said they had run into an issue with the waterbird management plan, and would be working on those issues and would keep the Board updated. 

Mr. Rush discussed with the Board the current status of the ongoing monitoring events on the oceanfront as part of the overall beach nourishment project. 

Mr. Rush stated that he had the final plans and specs on his desk for the Coast Guard Road project, noting they would be going out to for bid on that project.  He said he should be bringing a construction contract to the Board at their July meeting. 

14.  COMMENTS FROM BOARD OF COMMISSIONERS AND MAYOR

Commissioner Wootten noted in regard to the stormwater project that he, Town Manager Rush, and Commissioner Isenhour would be meeting with Jack Siekmann on Thursday to keep him advised of the plans, and would let the Board know the results. 

Commissioner McElraft had no comments.

Commissioner Messer had no comments.

Commissioner Isenhour had no comments

Commissioner Hedreen thanked the Town Manager and the Department Heads for their willingness to work with the Board on the budget. 

Mayor Schools had no comments.

15.  CLOSED SESSION – PURSUANT TO NCGS 143-318.11(6), FOR THE PURPOSE OF EVALUATING THE TOWN MANAGER’S PERFORMANCE (AND ALSO INCLUDING THE ADDITION OF ATTORNEY / CLIENT PRIVILEGE AS APPROVED BY THE BOARD WITH THE ADOPTION OF THE AGENDA)

Motion was made by Commissioner McElraft to go into Closed Session at 7:08 pm.  The Board voted unanimously 5-0 in favor.  Motion carried.

Motion was made by Commissioner Messer to come out of Closed Session.  The Board voted unanimously 5-0 in favor.  Motion carried.

Motion was made by Commissioner Isenhour to increase the Town Manager’s salary to $70,000.  The Board voted unanimously 5-0 in favor.  Motion carried.

16.  ADJOURN

Motion was made by Commissioner Messer to adjourn the meeting.  The Board voted unanimously 5-0 in favor.  Motion carried.

The meeting was adjourned at 8:00 pm.

Respectfully submitted:

Rhonda C. Ferebee
Town Clerk