The Town Council for the Town of Duck convened at the Duck Municipal Offices at 7:00 p.m. on Wednesday, January 7, 2004.

COUNCIL MEMBERS PRESENT: Mayor Gene Schwarz; Mayor Pro Tempore Allan Beres; Councilor Neil Morrison; Councilor Monica Thibodeau; and Councilor Nancy Caviness.

OTHERS PRESENT: Town Manager and Town Clerk Christopher J. Layton, Town Attorney Donald I. McRee, Jr and Deputy Town Clerk Lori Kopec.

Mayor Schwarz called the meeting to order at 7:00 p.m. Mayor Schwarz led the Pledge of Allegiance and the moment of silence.

PUBLIC COMMENTS

Mayor Schwarz opened the floor for public comments.

Ron Forlano of 1378 Duck Road was recognized to speak. Mr. Forlano stated he was concerned about the length of time it is taking to get the commercial moratorium lifted. He stated that the shop owners in Duck have a small window of opportunity during the year to make improvements to their properties, which is January through the beginning of May. He stated the shop owners have already gone through one window of opportunity in 2003 where they were not allowed to do anything. He felt that it looked like another year would go past without the shop owners being able to make any improvements. He stated that if the moratorium is lifted in April, May or June, it will be too late to make the improvements. Mr. Forlano stated he recently applied for a building permit to replace windows, a door and to put paving in the parking lot at Duck Deli and was refused due to the moratorium. He stated that if the parking lot isn’t paved, he will go through the same problem he has been going through for eighteen years with the stones being a potential hazard. He asked Council to provide relief to the existing properties in the Village Commercial District to allow shop owners to make changes to their properties this year instead of waiting till next year.

John Summers of 123 Sea Hawk Drive was recognized to speak. Mr. Summers stated he supported Mr. Forlano on the paving issue. He stated it has been a problem with the loose gravel in that it goes on the Duck Trail, the road and poses a tremendous safety problem. He stated that bicyclists could lose control and fall and vehicles could lose control as well and hit someone on the trail. He encouraged Council to do what is necessary to let Mr. Forlano pave his driveway before the summer.

Sam Taylor of 111 Skimmer Way was recognized to speak. Mr. Taylor stated he also supported Mr. Forlano on the paving issue. He stated that the loose gravel is a hazard to any cyclist, including him. He stated that there should be a way to adjust the moratorium to allow improvements to existing properties that do not affect the architectural and visual images of Duck.

There being no one else wishing to speak, Mayor Schwarz closed the time for public comments.

APPROVAL OF MINUTES

Mayor Schwarz opened the approval of minutes from the December 3, 2003 regular meeting. Mayor Schwarz directed Council to review the minutes for changes.

Mayor Pro Tempore Beres moved to approve the December 3, 2003 minutes.

Motion carried 5-0.

OLD BUSINESS/ITEMS DEFERRED FROM PREVIOUS MEETINGS

UPDATE/DISCUSSION OF THE PLANNING BOARD’S PROGRESS ON THE NONCONFORMING STRUCTURES ORDINANCE

Mayor Schwarz directed Planning Director Sue Cotellessa to give an overview. Planning Director Cotellessa stated that Council had a memorandum in their packet that gives a background on how the Planning Board is looking at nonconforming issues. She stated the Board is looking at issues for rebuilding residential properties that are nonconforming and commercial properties that may be nonconforming. She stated the Board is having a meeting on Friday, January 9, 2004 and will be discussing these issues. Planning Director Cotellessa stated that input will be gathered from the business community next month with the Board making a recommendation to the Council at its February meeting.

Councilor Thibodeau asked if the Planning Board will have suggestions at its February meeting. Planning Director Cotellessa stated that the Board will be reviewing issues on Friday, January 9th and will be making recommendations for final language.

Councilor Thibodeau asked if the information for the public on the website includes some of the proposals that the Board has put together. Planning Director Cotellessa stated that the public can view the full Planning Board packet on the website. Town Manager Chris Layton stated that the Council packet is also on the website.

DISCUSSION OF THE ORDINANCE IMPOSING A MORATORIUM ON THE SUBDIVISION OF LAND

Town Manager Chris Layton was recognized to speak. Town Manager Layton stated that Council adopted a moratorium about a year ago to prevent the subdivision of property within the Town. The moratorium has lapsed as of January 2, 2004. Town Manager Layton recommended that no further action be taken due to the fact that there is no land that is suitable for subdivision in the Town.

Mayor Pro Tempore Beres asked if any land opens in the future, would the Land Plan address the issue at that time. Town Manager Layton stated that the Land Use Plan does address the issues, but if someone were to come in and do a large scale subdivision, many steps would be taken that Council would have to approve. He stated there is no property in the Town that is currently zoned or available for subdivision.

DISCUSSION OF REGULATORY TEMPLATES RELATED TO THE SALE OF FIREWORKS IN BUSINESSES

Town Manager Layton was recognized to speak. He stated that several months ago Mayor Pro Tempore Beres had suggested that the Town look into the requirements of businesses selling fireworks and the idea of posting a notice that fireworks are illegal in the Town of Duck to remind people of the ban in place. In order to allow the posting, the current ordinance would have to be altered. Town Manager Layton asked Council to discuss whether they wished to move forward with changing the ordinance.

Councilor Morrison asked how many businesses in the Town of Duck sell fireworks. Town Manager Layton stated there are five businesses that were selling fireworks in the summer of 2003. He stated that of the five, two businesses had notices up stating that the use of fireworks is illegal in Duck.

Mayor Schwarz asked if just the ordinance would be changed and would not apply to fireworks. Town Manager Layton stated it would give Council the authority to require the posting of templates.

Town Attorney Ike McRee was recognized to speak. Town Attorney McRee stated it would be related to regulatory ordinances.

Councilor Thibodeau stated she was in favor of the ordinance to expand on it but didn’t feel there was a need to rush into putting together an ordinance to make the businesses put a sign up.

Mayor Schwarz stated that if the ordinance is passed, it gives Council the authority to make the templates and require the businesses to post them.

Councilor Thibodeau asked if by accepting the ordinance, it mean that Council would automatically make the templates mandatory. Mayor Schwarz stated it wouldn’t, but gives Council the authority to do so.

Councilor Morrison asked what other information would be put on the templates. Town Manager Layton stated it was directly related to previous discussions regarding fireworks.

Mayor Pro Tempore Beres stated he thought it would be a good idea to have the ordinance in place.

Councilor Caviness agreed with Mayor Pro Tempore Beres and felt that templates should be required of businesses that sell fireworks.

Mayor Pro Tempore Beres moved to amend Section 2 of Ordinance No. 02-02 related to regulatory templates.

Motion carried 5-0.

Mayor Schwarz asked Council if they wished to direct the Town Manager to prepare a sample template for the business establishments.

Councilor Caviness & Mayor Pro Tempore Beres felt it was a good idea.

Councilor Thibodeau stated she didn’t feel there was a problem with the fireworks ban and that there are already plenty of indicators throughout the Town for people to see. She also felt it was invasive on the businesses.

Mayor Pro Tempore Beres moved to have the Town Manager prepare a template stating that the use of fireworks are illegal in the Town of Duck.

Councilor Morrison stated he was in favor due to the potential for fires. He stated he also agreed with previous comments from Mr. John Summers in regard to having a time set aside to allow fireworks to be set off.

Councilor Thibodeau asked if Council would be dictating where businesses would be posting the templates. Mayor Schwarz stated the motion is asking for staff to prepare a template and bring it back to Council for approval. It was assumed that the template would be placed somewhere that would be visible to customers. Town Attorney McRee stated the ordinance states that the templates have to be in a prominent place that is easily noticeable.

Motion carried 4-1 with Councilor Thibodeau dissenting.

NEW BUSINESS

DISCUSSION/CONSIDERATION OF RESOLUTION NO. 04-01, ESTABLISHING THE MUNICIPAL PROPERTY MASTER PLAN STUDY COMMITTEE

Mayor Schwarz stated that since the Town purchased the previous Food Lion property, a committee had to be established for the master plan study. He stated he contacted each individual that is to be on the committee and was pleased with the response and interest that this group has shown him. He stated the group is made up of seven individuals of various ages with Paul Keller as the chairman of the committee. Mayor Schwarz went on to read Resolution 04-01 to the audience.

Mayor Schwarz moved to adopt Resolution 04-01, establishing the Municipal Property Master Plan Study Committee.

Mayor Pro Tempore Beres stated it will be a challenging milestone plan and he’s pleased to have such a great group of people willing to serve on the committee.

Councilor Thibodeau stated that she is excited to know what the committee will be accomplishing.

Motion adopted 5-0.

CONSIDERATION/DISCUSSION OF RESOLUTION NO. 04-02, REGARDING THE RENAISSANCE OF THE HOTEL INDUSTRY IN DARE COUNTY, NORTH CAROLINA

Mayor Schwarz recognized Councilor Morrison to speak. Councilor Morrison stated that the Dare County Tourism Board passed a resolution regarding the current status of the hotel industry on the Outer Banks. He stated there has been a thirty-three percent decrease in the number of hotel rooms and a thirty-five percent decrease in the number of cottage courts in Dare County since 1999, which is having a negative effect on the County as well as hurting the restaurant industry due to people renting the larger homes and eating in as opposed to renting hotel rooms and eating out. The resolution would support the additional hotels, while meeting current architectural environmental standards and would be good for the Town to approve the resolution.

Councilor Morrison moved to adopt Resolution 04-02, regarding the Renaissance of the Hotel Industry in Dare County, North Carolina.

Councilor Caviness stated she understood the effort and basis of the resolution but one aspect should not be singled out in regard to tourism.

Councilor Thibodeau stated she understood that the County is looking for support but thought that the Town would not see the impact. She stated she is in support of the resolution.

Mayor Pro Tempore Beres agreed with Councilor Thibodeau and would support the resolution. He asked if there was any discussion on what impact the restaurants were taking. Councilor Morrison stated he didn’t know the exact percentages but that they are feeling the pain.

Councilor Morrison stated this resolution would not affect the Town of Duck, but would show the Town’s support to the other towns that are struggling with the issue.

Motion adopted 5-0.

ITEMS REFERRED TO AND PRESENTATIONS FROM THE TOWN ATTORNEY

Town Attorney McRee was recognized to speak. He stated he had nothing to report.

ITEMS REFERRED TO AND PRESENTATIONS FROM THE TOWN MANAGER

Discussion of Joint Town of Duck and Town of Southern Shores Dune Stabilization Project

Town Manager Layton stated that the Town is working on a joint project with the Town of Southern Shores. As a result of Hurricane Isabel, there was damage to the dunes along the beaches and the Towns have struggled with getting information out on how to properly restore the dunes. To help with this effort, the Sea Grant Group held a workshop in December to give information on how to properly restore dunes and encourage dunes to be replenished.

Town Manager Layton stated that the Town of Southern Shores is coordinating a workshop for January 13, 2004 with the Sea Grant Group to avail themselves to anyone who would like to learn more about dune stabilization. Information has been mailed out to all beachfront property owners as well as the homeowners associations. The Sea Grant Group intends to tour the beaches of Duck and Southern Shores while they are in town to look at the areas and come up with a plan for future replenishment of the dunes. A small amount of money was received from FEMA to assist with these efforts.

The Dune Stabilization Project will cover topics such as how to properly plant beach grass, how to properly do beach pushes and how to put in sand fences. Town Manager Layton felt this project would be worthwhile to the Town of Duck.

Mayor Schwarz stated that this is a worthwhile presentation and encouraged members of the audience to attend. Town Manager Layton stated that there is a $5.00 registration fee to attend the workshop.

Councilor Thibodeau asked if the Sea Grant Group would really be out on the beaches. Town Manager Layton stated they would be driving up and down the beaches so they can develop a plan and recommendation for the beaches.

Councilor Caviness felt it was a great thing to have them do.

Discussion/Consideration of a Policy Regarding Fixed Assets

Town Manager Layton stated that the Governmental Accounting Standards Board, which proposes and adopts all the rules associated with local government audits, came up with “GASB 34”, which requires local governments to track and depreciate fixed assets. The Town of Duck is due to show their fixed assets on their 2004 audit. He stated that Council needs to adopt the threshold for what will be tracked as far as depreciation is concerned. Fixed assets will always be maintained, but for the fixed assets policy, it will state the Town would only track items with a value over five thousand dollars.

Mayor Pro Tempore Beres asked if the policy would include the acquisition of capital items over five thousand dollars. Town Manager Layton stated it would.

Mayor Pro Tempore Beres moved to adopt the fixed asset policy with an acquisition threshold being five thousand dollars or above.

Motion adopted 5-0.

Discussion of Starting Cable TV Franchise Agreement Negotiations with Charter Cable

Town Manager Layton stated that since the Town has incorporated, it has been operating under Dare County’s franchise agreement as far as cable television is concerned. He stated it is in the Town’s best interest to have its own franchise agreement with Charter Cable. He stated he will be working with the Town’s attorneys to begin the process.

Mayor Pro Tempore Beres asked what the benefits would be for the citizens of Duck. Town Manager Layton stated there would not be many benefits for the citizens beyond what they are receiving from Dare County.

Discussion/Consideration of Amendments to the FY2004 Town of Duck Budget

Town Manager Layton stated he had a small budget amendment. He asked Council to approve a transfer of three thousand dollars from the contingency fund to the governing body’s budget to cover costs incurred over the holiday season.

Mayor Pro Tempore Beres asked where the money was coming from. Town Manager Layton stated there is seventy-five thousand dollars set aside in the contingency fund and it would be coming from there. Mayor Pro Tempore Beres asked how much money has been transferred out of the contingency fund. Town Manager Layton stated that six thousand dollars has been transferred to date.

Councilor Thibodeau moved to approve the budget amendment to transfer three thousand dollars from the contingency fund to the governing body.

Motion approved 5-0.

Financial Statement for the Month of December 2003

Town Manager Layton stated he received the bank statements and reviewed with Council what is presently in each of the Town’s bank accounts. He then went on to review the Town’s projections for expenditures and revenues, noting that the Town’s projections are holding true.

Mile Marker Posting within the Town of Duck

Town Manager Layton stated he was contacted by Stan White of the Department of Transportation to inquire if the Town would be interested in having mile markers posted within the Town of Duck along NC 12. He stated that if there is an interest, Mr. White would like to have a meeting to discuss the details of posting the signs. Town Manager Layton asked for a recommendation from Council as to whether there is an interest.

Councilor Thibodeau felt it would confuse citizens since Highway 158 has mile markers. Town Manager Layton stated the markers would have north or south on them.

Mayor Schwarz stated he felt there was no harm in discussing it with Mr. White.

MAYOR’S AGENDA

Mayor Schwarz stated that the League of Municipalities is holding an Essentials of Municipal Government class on February 18-20, 2004 at the Sanderling Inn. He reminded Council that if they haven’t signed up, they should let Deputy Town Clerk Lori Kopec know so arrangements can be made.

He reminded the audience and Council of the retreat on January 21-22, 2004. He reminded Council to give items of discussion for the agenda to either Town Manager Layton or Deputy Town Clerk Kopec. He stated the retreat will be held at the Town Office, starting at 9:00 a.m.

COUNCIL MEMBERS’ AGENDA

Councilor Thibodeau stated that she is excited about attending the Business Outreach Event on February 5, 2004. She thanked Planning Director Cotellessa for personally hand delivering the flyers to all the business owners in Duck.

Mayor Pro Tempore Beres asked for a further discussion in regard to Mr. Forlano’s comments in regard to the moratorium. He asked Planning Director Cotellessa to make some comments about it.

Planning Director Cotellessa stated that the subject of loosening the moratorium slightly with respect to the C1 and C2 districts was discussed several months ago. By loosening the moratorium, it would allow minor changes such as window and door replacements. However, Council at that time had agreed that those items might be of more significance because of the Village Commercial atmosphere. Therefore, no special provisions were made for the Village Commercial District. She stated that in some cases where the replacement is of an identical nature, it is not an issue. However, Mr. Forlano had asked to screen in a porch that wasn’t previously screened in. In respect to the paving, the Board is looking into it. Planning Director Cotellessa stated that Mr. Forlano had given her the name of a person who deals with porous pavers and she is waiting for a return telephone call. The zoning text presently considers porous pavers similar to asphalt and concrete in terms of lot coverage. She stated she is supportive of the pavers from a safety standpoint. She stated that the biggest concern with porous pavers is the maintenance of it over time due to the fact that it has to be maintained yearly. She stated to Council that the Board is close to coming back with changes so that the moratorium could be lifted ahead of schedule.

Councilor Thibodeau asked if any other commercial building permits have come in that have been turned away for the same reason as Mr. Forlano’s. Planning Director Cotellessa stated that no other applications have come in nor have there been any inquiries.

Councilor Caviness stated that there will be a significant amount of time set aside at the retreat to bring Council up to speed on the work of the Land Use Plan Committee. She encouraged members of the audience to attend the retreat.

OTHER BUSINESS

Mayor Schwarz asked for any other business. There being none, he stated the next Council meeting will be Wednesday, January 21 and January 22, 2004 at 9:00 a.m. in the Administrative Offices.

ADJOURNMENT

Mayor Pro Tempore Beres moved to adjourn the meeting.

Motion carried 5-0. The time was 8:10 p.m.

_______________________________________________
/S/ Christopher J. Layton, Town Clerk



Approved: ______________________________________
                    /S/ Gene Schwarz, Mayor