Town Council Minutes Wednesday, November 3, 2021 Morehead City, North Carolina

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Morehead City Town Council Workshop Meeting November 3 2021 1

Town Council Minutes Wednesday, November 3, 2021

Morehead City, North Carolina

The Honorable Council of the Town of Morehead City held the monthly Workshop Meeting on Wednesday, November 3, 2021, in the Municipal Chambers located at 1100 Bridges Street, Morehead City, North Carolina.

COUNCIL PRESENT: Mayor Jones and Councilmembers George Ballou, David Horton, Keri McCann, Bill Taylor, and Diane C. Warrender.

STAFF PRESENT: City Attorney Derek Taylor, City Manager Ryan Eggleston, Fire Chief Jamie Fulk, Finance Director Jewel Lasater, Deputy Police Chief Bryan Dixon, Human Resources Director Susan Nixon, Parks and Recreation Director Jerry Riggs, Planning Director Sandi Watkins, City Planner Karyn Reid, Public Services Director Daniel Williams, Communications Director Alize Proisy, and City Clerk Cathy Campbell.

OTHERS PRESENT: Elise Clouser of Carteret News Times, Jody Lewis of VHB Engineering NC, Maggie Ballaglin, Buyout Manager for the N.C.

Office of Recovery & Resiliency, Bill Brown, Parks and Recreation Advisory Board Member Jan Willis, Caroline Buchanan, Paula Hoffman, and Bill Hudson.

Mayor Jones called the workshop meeting of the Morehead City Town Council to order at 9:02 a.m. with a quorum present.

PRESENTATIONS/RECOGINITIONS

Arendell Street Traffic Study Proposal Presentation

Joseph “Jody” Lewis of VHB Engineering NC appeared before the Town Council to present an Arendell Street Traffic Study proposal focused on identifying and offering solutions for addressing obstructions blocking the views of oncoming traffic from side streets between 4^th and 20^th Streets. Councilmembers brought this issue to staff’s attention at the August 10, 2021 Regular Town Council meeting. Staff reached out to VHB Engineering NC for assistance due to the complexity of the project, knowing that resolution will require cooperation from both the railroad and the North Carolina Department of Transportation (NCDOT).

Council asked Mr. Lewis to expand the scope of study to include all streets through 24^th Street as well as add recommendations for adding parking in the downtown area and preparing for future growth. He was also asked to incorporate public input into the study. Since the expanded scope will take considerable time to research, this item will not be considered at the November Regular meeting.

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NC Office of Recovery & Resiliency Buyout Program Presentation

Maggie Ballaglin, Buyout Manager for the N.C. Office of Recovery & Resiliency (NCORR), presented a proposal to implement a Strategic Buyout Program for the Town of Morehead City. This program would be managed under their subsidiary program, ReBuildNC.

The Buyout Program was created as a complement to other recovery programs. Under the program, the NCORR buys properties located in identified Disaster Risk Reduction Areas

“Buyout Areas” that were affected by Hurricanes Florence and Matthew to mitigate flood prone areas and reduce future flood claims and is funded by HUD through the Community Development Block Grant – Mitigation (CDBG-MIT).

Ms. Ballaglin explained that the program is completely voluntary and that properties are purchased based on current fair market value. As part of the Buyout Program, participants are provided with relocation assistance, both financially and through counseling. The program is targeted on low to moderate income properties that have experienced reoccurring flood damage.

The target area identified for Morehead City lies between N. 20^th and Yaupon Place and bordered by Mayberry Loop Road and Calico Creek. This area was selected based upon data that shows 47.9% of property owners fall within the low to moderate income levels and includes eight (8) properties that have experienced severe repetitive losses. However, Ms. Ballaglin stated that NCORR is willing to consider other areas that the City may feel are of more concern as long as they fit within the overall policies and budget of the program.

Following the buyout, the property would be owned by the Town of Morehead City and the city would be responsible for maintenance of the property. Although future development would be restricted, the City could utilize the land to develop natural uses such as parks.

At Council’s request, Planning Director Sandi Watkins confirmed that the program is data driven based upon prior flood insurance claims. The proposed Buyout Area has experienced significant flood claims for properties that are located throughout the area. She noted that this data does not include losses incurred after 2017.

To address housing concerns, Ms. Ballaglin explained that the entire buyout process, including owner incentives, will be structured to support the City’s housing and environmental needs.

The next step would be for the city to accept the Buyout Program and agree to an identified Buyout Area. Once this is done, property owners would be contacted to explore interest in participating. There is a 90-day turnaround from the time of program acceptance to relocation. Participants can interact with counselors from the beginning to confirm there is affordable housing available before deciding whether to sell their property.

Council agreed, by consensus, that staff will work with NCORR to develop a plan proposal to be considered at a later date.

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STAFF REPORTS Fire/EMS:

Fire Chief Jamie Fulk reported that the Department was very busy during the Seafood Festival weekend answering nine (9) festival related calls and 27 other calls outside of festival.

He advised that the Fire Department is scheduled to demolish the structure at 812 Bay Street on November 22-24^th, depending upon the weather and wind, and the water rescue team is in Weldon, NC completing their rapid water training.

ISO Inspections are complete and rating results are expected to be received in 90 to 120 days. The Department’s goal is to maintain its ISO In-City rating of 3 and In-District rating of 4.

Police:

Deputy Police Chief Bryan Dixon reported on department staff vacancies stating that one FT officer position has been filled and an offer will be made this week for the second. The part- time office position remains open. The Department will experience another retirement in December which will create another full-time position to be filled.

The Department continues to fulfill in-service training requirements. This should be completed by the end of this month.

Deputy Chief Dixon shared that the Department is partnering with Pinnacle Storage to provide Christmas meals to the needy. In addition, the Boys & Girls Club has asked the Police Department to partner with them on some of their outreach programs.

Public Services

Public Services Director Daniel Williams reported that his department picked up 21.8 tons of trash during the Seafood Festival as compared to the 15 tons picked up during the last full festival.

His department is also in the midst of certification season. Since certifications were postponed in 2020 due to COVID-19, his staff must fulfill the requirements for both 2020 and 2021 certifications.

Planning and Inspections:

Planning Director Sandi Watkins reported that their ISO visit is due next year. The last visit resulted in the City’s score improving from a Class 8 to Class 6 rating, earning a flood insurance discount for city residents of up to 20%. Prior to the visit, staff must update the city’s Flood Plain Management Plan, the Program for Public Information, and the Community Block

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Grant Analysis. The scoring for these combined plans equates to one class score. Staff will work with a consultant to outsource this task prior to the visit.

The Americans with Disabilities Act (ADA) Transition Plan is currently under review by town staff, and the Comprehensive Plan RFPs (requests for proposal) are under review by staff and representatives of Downtown Morehead City, Inc. The goal is to present a recommendation to Council at the December meeting so that the project kickoff can be implemented in January 2022.

The November and December Board of Adjustment meetings were combined and scheduled for December 9, 2021. Staff anticipates that there will be one request to consider. The Planning Board will consider one item at their November meeting, the North Morehead City extension project requesting an approval for the 17-lot subdivision proposed on North Florida Extension at Harold Drive and Hamilton Drive.

Ms. Watkins reported that since the Town’s appeal of the flood map panels, the State has refined their review program and it is possible that minimum elevations may have been decreased.

It is projected that the overland wave analysis modeling and draft map will be released in the winter 2022 followed by a 90-days appeal period. Individuals should speak with their insurance agents to determine how the ISO rating affects their policy premiums.

Regarding the Community Development Block Grant project, Ms. Watkins reported that one building permit and one demolition permit have been issued. A couple of the projects are tied up with title issues, but they appear to be nearing a resolution.

Parks & Recreation:

Parks and Recreation Director Jerry Riggs announced that the dog park was enlarged this month and the change has been well received. In addition, he reported the following:

• ADA (Americans with Disabilities Act) kayak launch on 10^th Street is complete. The sidewalk to the launch will be completed this week.

• 8^th Street dock has been repaired and will open later today.

• Transient docks are very busy.

• Parks & Recreation Playground will be demolished mid-month in preparation for the new playground install during the first part of December; PO’s have been issued for the new playground equipment.

• The Recreation Center gym floor is complete.

• Basketball season is kicking off.

Councilmember Horton asked about getting benches for the dog park. Mr. Riggs explained that due to supply chain issues, he has not been able to get quotes for the benches. Councilmember Horton shared that Tim Allen is working with scouts to build benches and that this might be a possible alternative.

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Councilmember Horton also asked about the progress of selling fence planks for Shevans Park as a way of offsetting some of the renovation costs. Mr. Riggs stated that this is a project he plans to give to the Parks and Recreation Advisory Board at a later date.

Finance:

Finance Director Jewel Lasater reported that they have completed the audit and are now writing the annual comprehensive financial statement and preparing for the GASB (Government Accounting Standards Board Statement) 87 implementation. The Munis utility billing module implementation date is now scheduled for the first week of February.

UNC School of Government’s American Rescue Plan (ARP) webinar was informative.

She will now prepare a summary and action plan to share with the department heads.

Following up on the small business loans, Ms. Lasater reported that attempts to contact the two (2) outstanding delinquent account holders were made without success and asked if Council would like to proceed with legal collection action. After some discussion, it was decided that the City Attorney and staff would determine if the last correspondence was sent by certified mail, confirming receipt, and if not, send again by registered mail.

Human Resources:

Human Resources Director Susan Nixon gave an update on vacancies and announced that she has made an offer for the Human Resources Assistant position.

With the pay and class study implementation complete, she will now renew efforts to revise the drug and alcohol policy, and work with Fire/EMS to establish a standard emergency policy as required by Occupational Safety and Health Administration (OSHA).

Administration/Communications:

Mr. Eggleston shared that Council would begin to receive departmental reports again in December. Sample reports will be provided this week via email. He also reported the following:

• He expects to have the updated appraisal of 706 Arendell by next week.

• The Administrative Executive position has been advertised.

• IT proposal for the Fire Department is expected to be in hand next month.

• Ad Hoc committee minutes will be distributed following this week’s Library Committee meeting.

Councilmember Horton spoke concerning the draft October workshop minutes that were shared via email, stating that it was not his intention to imply that the 706 Arendell Street building be demolished but that the Council should consider the value of the property with or without the structure as he feels the property alone has significant value.

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Communications:

Communications Director Alize Proisy shared that CivicPlus is working to update the city’s website to include a page for the library, and she is working on the next edition of the Mullet Wrapper, which will feature Santa promoting city swag for Christmas gifts. She also reported that the council chamber sound equipment issues have been resolved.

PUBLIC HEARINGS

Review Rezoning Request for 901 and 909 Shepard Street

Planning Director Sandi Watkins introduced the request submitted by A-Team Enterprises, LLC, on behalf of Dockyard, LLC and Faith Anne Eure Matthews GST Exemption Trust, to rezone Tax PIN #638619605660000 located at 901 Shepard Street and Tax PIN

#638619603566000 located at 909 Shepard Street from CM (Commercial Marina) District to PD (Planned Development) District, Resolution 2021-R-45 of Plan Consistency in accordance with NCSG 160D-605 for Map Amendment, and a request to approve the Sketch Development Plan for Residences at Bask, a proposed residential thirty (30) townhome unit development with accessory uses and signage.

On October 19, 2021, the Planning Board found the request for conditional rezoning to be consistent with the most recently adopted CAMA Land Use Plan and determined by majority vote (6-1, Ronetta Gaskill opposed) to recommended approval of the rezoning request and Sketch Development Plan with Nathan Chambers making the motion and Matt Johnson seconding. A copy of the adopted Consistency and Reasonability Statement was included in the meeting packet.

In accordance with N.C.G.S. 160D-601, this public hearing was advertised in the Carteret News Times twice, on Sunday, October 24, 2021, and Sunday, October 31, 2021. In addition, the property was posted and abutting property owners were notified of the public hearing scheduled for the November 9, 2021, Town Council meeting.

Responding to a question about the definition of urban waterfront, Ms. Watkins stated that this is a determination made by the Division of Coastal Management (CAMA) based on certain criteria. This development will be subject to requirements of a major CAMA permit. Urban development properties are not subject to the 30-foot buffer requirement. It does, however, retain the 75-foot Area of Environmental Concern (AEC) where surfaces are limited to 30% imperious.

City Attorney Derek Taylor advised that this is a rezoning request where Council is to decide if the request is a reasonable use for the property. The sketch plan is included only for conceptional purposes and as an indication of density due to the PD zoning. All other considerations/concerns will be addressed in later phases of the approval process, including collection of state permits.

It is not unreasonable to expect that the final plan may change significantly as the developers seek to meet permit requirements and address the concerns that have been communicated.

Review Rezoning Request for 3413 Bridges Street

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Planning Director Sandi Watkins introduced the request submitted by The Cullipher Group, P.A., on behalf of Carteret County, to rezone 3413 Bridges St. (Tax PIN

#637615521805000) from R5 (Residential) District to MA (Medical Arts) District, and Resolution 2021-R-46 of Plan Consistency in accordance with NCSG 160D-605 for Map Amendment.

On October 19, 2021, the Planning Board unanimously found the request for conditional rezoning to be consistent with the most recently adopted CAMA Land Use Plan and recommended approval of the rezoning request with Matt Johnson making the motion and Nathan Chambers seconding.

In accordance with N.C.G.S. 160D-601, this public hearing was advertised in the Carteret News Times twice, on Sunday, October 24, 2021, and Sunday, October 31, 2021. In addition, the property was posted and abutting property owners were notified of the public hearing scheduled for the November 9, 2021, Town Council meeting.

OLD BUSINESS ITEMS

Discuss Potential FEMA BRIC Grant

Planning Director Sandi Watkins appeared before the Town Council to provide further details regarding a potential FEMA Building Resilient Infrastructure and Communities (BRIC) grant. At the October 12, 2021, Regular meeting, Mr. Eggleston suggested that the funds might be used to further refine the scope of work for erosion mitigation for Sugarloaf Island or to fund studies to investigate areas within the city where flooding has resulted in repetitive losses and how this might be mitigated.

In response to the city’s letter of interest, the State indicated support for moving forward with a full application for an erosion mitigation study for Sugarloaf Island. In addition, the city has obtained a proposal from Witt O’Brien for advanced assistance in preparing the grant application. The grant will provide for a study to identify the erosion problem(s) and carry forward the opportunity for another grant to fix the problem.

After discussion of prior recommendations, Mr. Eggleston stated that it was staff’s intention to seek a FEMA approved study that would look at the concerns as well as all prior recommendations to determine what the best action would be. The city is free to move forward with mitigation plans in the meantime. Dr. David Mallinson of East Carolina University continues his work to study the problem and his research along with other studies can be included for consideration as part of the final resolution plan.

NEW BUSINESS ITEMS

Discuss Potential Refinancing of City Loans

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City Manager Ryan Eggleston and Finance Director Jewel Lasater presented options for refinancing three (3) of the city’s current USDA (US Department of Agriculture) loans.

Amortizations were run on 4 scenarios (15, 17, and 20 year terms) that would, essentially, consolidate the Police Station, Fire Station #2 (both 40-year notes) and Katherine Davis Park (30-year note) loans. Two of the scenarios call for utilizing the fund balance/$1.2 million from the sale of the 3413 Bridges Street property as a down payment. None of the scenarios include a balloon payment. The goal is to maintain the overall annual debt payment while shortening the loan term. Scenarios that did not utilize the $1.2 million down payment resulted in increased annual payments.

After some discussion, Council reached consensus for moving forward with Scenario #4 which utilizes the $1.2 million down payment, reduces the loan term to 15-years, increases the annual debt payment by only $20,928.46, and saves the city $4.7 million dollars overall.

This item will be presented under the November 9, 2021, consent agenda for approval consideration to move forward with the first steps of the Local Government Commission (LGC) process.

Review FY 2021-2022 Paving Plan

Public Services Director Daniel Williams appeared before the Town Council to present the proposed FY 2021-2022 paving plan for review. He stated that the proposed projects were selected based on road condition ratings with the poorest conditioned streets at the top of the list.

The project list includes additional projects that may be included if the final bids are lower than expected. It was suggested that Communications Director Alize Proisy develop communication pieces to highlight the benefit of paving partial streets.

This item will be presented under the November 9, 2021, consent agenda for approval consideration.

Discuss Proposed Curb Market Renovations

Parks and Recreation Director Jerry Riggs appeared before the Town Council to present a list of required and recommended renovations for the recently acquired Curb Market. He reported that the Curb Market building is now empty and ready for repairs that will include remodeling the bathrooms and the addition of an ADA ramp. Options for heating and air were sought and a 2-ton split-system was recommended at the cost of approximately $4,600. Staff is making minor repairs and improvements. Staff is working towards a reopening date that will be consistent with their traditional operating schedule. Ginger Wade of Hope Mission is the contact person for curb market patrons. Staff was unable to secure prior operating documents; therefore, staff will begin developing operational policies and procedures for the Market. Council expressed interest in obtaining quotes to insulate the building.

Discuss Procurement Policy

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At the October 12, 2021, regular town council meeting, Council instructed staff to add discussion of the bid policy to the November agenda to consider lowering the bid threshold for purchases. Finance Director Jewel Lasater distributed copies of the draft procurement policy that her department has been developing. A review of the policy reveals that the city’s bid requirements are more stringent than what the State requires.

Council voiced a desire for the policy to include a requirement to seek multiple bids for items the first time they are purchased and periodically thereafter to ensure the city is buying at the best possible price, and to include provisions for exceptions such as equipment parts that are manufacturer specific or have limited vendor options.

Review Budget Ordinance Amendment

Finance Director Jewel Lasater presented and reviewed Budget Ordinance Amendment 2021-29. Governmental Capital Project Budget Ordinance Amendment 2021-30, and Water &

Sewer Capital Project Budget Amendment 2021-31.

Budget Ordinance Amendment 2021-29 records the following General Fund transfers:

• $700 to Police for donation from St. Egberts Catholic School

• $700 to Fire & EMS for donation from St. Egberts Catholic School

• $25,000 transfer from Contingency to Fire & EMS for multiple HVAC repairs, building equipment replacements, and grounds expenditures

Governmental Capital Project Budget Ordinance Amendment 2021-30 records the Spooners Creek local match balance for NCDEQ Grant Contract #7522 for the Spooners Creek dredging project under Transportation, the transfer of $50,000 NCDEQ Grant funds and an additional $150,000 designated for the Mitchell Village bathroom project back into the General Fund following the cancellation of the project. This budget amendment also reassigns the Parks and Recreation Playground project under Recreation rather than Parks.

Water & Sewer Capital Project Budget Ordinance 2021-31 establishes the Hwy 24 Ridgeline Water & Sewer Extension project and records the payment of $48,000 contributed by Bluestone Limited for the project.

Mayor Jones shared that St Egberts Catholic School raises funds for first responders every year, and this is the largest amount they have ever raised.

These items will be presented under the November 9, 2021, consent agenda for approval consideration.

Quarterly Financial Review

Finance Director Jewel Lasater presented summary financial statements for July 1, 2021, to September 30, 2021 (as of 10/31/2021), which includes explanations for revenues or

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expenditures that appear to be out of line with first quarter projections. She explained that General Funds are reported on a quarterly basis, while the Capital Project Funds reflect numbers through October 2021.

This item will be presented under the November 9, 2021, consent agenda for acceptance consideration.

Review Retention and Disposition Schedule for General and Program Records

City Manager Ryan Eggleston presented Resolution 2021-R-47, accepting the NC Department of Natural and Cultural Resources (NCDCR) Records Retention and Disposition General Records and Program Records Schedules for Local Government Agencies effective October 1, 2021.

In response to a question, City Clerk Cathy Campbell explained that this item is presented as a housekeeping measure. Accepting the NCDCR schedules will allow staff to manage city records according to the schedule without seeking further permissions.

This item will be presented under the November 9, 2021, consent agenda for approval consideration.

Review Proposed 2022 Council Meeting Schedule

City Manager Ryan Eggleston will present the proposed 2022 council meeting schedule for review. The agreed upon schedule will be presented for approval as part of the November 9, 2021, Regular meeting consent agenda.

Discuss Amendment to Resolution 2021-R-37 Adopted on September 14, 2021

Parks and Recreation Director Jerry Riggs informed the Town Council that Jason Fant, organizer of the Raleigh Saltwater Sportfishing Club King Mackerel Tournament, has requested that the Town Council authorize a rain date of December 3-6, 2021, for the tournament due to the weather on November 5-8, 2021, not being appropriate to hold the tournament as scheduled.

Mr. Riggs confirmed that there are no conflicting events scheduled for those dates.

This item will be presented for adoption under the November 9, 2021, Regular meeting consent agenda.

Discuss NCDOT Fence on Bridges Street – Councilmember Taylor

At the request of Councilmember Taylor, the topic of the North Carolina Department of Transportation (NCDOT) fence on Bridges Street was added to the agenda for discussion.

Councilmember Taylor stated that this discussion was initiated by a citizen who was displeased with the condition of the fence. NCDOT is willing to regrade the shoulder of the roadway and install a new chain link or vinyl coated chain-link fence. NCDOT will also provide, to the city,

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the cost of the vinyl fence towards a different style fence of the city’s choosing; however, the fence would then become the city’s responsibility to maintain. The purpose of the fence is to prevent curb cuts and pedestrians from crossing the roadways in these areas. It was decided that the city will request that NCDOT replace the existing fence with the black vinyl coated chain- link fence and to regrade the slope.

CLOSED SESSION

Councilmember Taylor moved to enter into CLOSED SESSION at 12:30 p.m. in the Council Chambers of City Hall, 1100 Bridges Street, Morehead City, N.C., during the Workshop Meeting of the Council held on Wednesday, November 3, 2021, as per 143-318.11(a)(3) to consult with attorney and 143-318.11(a)(6) to discuss a personnel matter. Councilmember Ballou seconded, and the motion carried unanimously. (5-0)

Councilmember Taylor moved to return to OPEN SESSION at 1:11 p.m.

Councilmember McCann seconded and the motion carried unanimously (5-0)

ADJOURNMENT

Mayor Jones adjourned the meeting 1:11 p.m.

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Gerald A. Jones, Jr., Mayor Attest:

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Cathy Campbell, City Clerk