TOWN OF DUCK
TOWN COUNCIL
REGULAR MEETING
November 2, 2005
The Town Council for the Town of Duck convened at the Duck Municipal Offices at 7:00 p.m. on Wednesday, November 2, 2005.
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, Planning Director Suzanne Cotellessa; Town Attorney Donald I. McRee, Jr.; Police Lieutenant Phillip Ferguson; Fire Chief John Mascaro; and Deputy Town Clerk Lori Kopec.
ABSENT: None.
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.
Sam Taylor of 111 Skimmer Way was recognized to speak. Mr. Taylor stated he wanted to let the Council know how delighted he was to see Resolution 05-15 regarding the Fund Balance Policy on the agenda.
John Summers of 123 Sea Hawk Drive West was recognized to speak. Mr. Summers stated he felt that an “insidious movement” has been taken place in Town. He stated that there was a letter recently published in The Coastland Times regarding the large houses in Duck. He stated the homes are not built for people who want to come to Duck for a vacation, but for people who want to party. He stated that the Town should not sit back and watch people become discouraged from vacationing in Duck because of the party houses. He felt the Town should address the issue and not let them proliferate.
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 October 5, 2005 regular meeting and the October 19, 2005 mid-month meeting. Mayor Schwarz directed Council to review the minutes from the October 5, 2005 meeting for changes.
Councilor Thibodeau moved to approve the October 5, 2005 minutes as presented.
Motion carried 5-0.
Mayor Schwarz directed Council to review the minutes from the October 19, 2005 meeting for changes.
Councilor Thibodeau moved to approve the October 19, 2005 minutes as presented.
Motion carried 5-0.
SPECIAL PRESENTATIONS
Town Manager Chris Layton introduced the Town’s new part-time Public Relations/Special Events Coordinator – Kathy McCullough-Testa. He stated that Ms. McCullough-Testa is originally from Pittsburgh, Pennsylvania and has experience as an elected official. He stated he is very pleased to have her and that she will be working with the various committees in Town, such as the Fourth of July Parade Committee.
Mayor Schwarz welcomed Ms. McCullough-Testa to the Town.
Presentation by the OBX Marathon Organizing Committee
Mayor Schwarz stated that a few months back, he had told Council and the audience about the marathon for November, 2006. He stated that quite a few individuals in Duck have started training for the marathon and encouraged everyone to participate.
Amy Montgomery of the OBX Marathon Organizing Committee was recognized to speak. Ms. Montgomery went on to give a short presentation to Council and the audience regarding the marathon.
Councilor Morrison stated that as a representative of the Dare County Tourism Board, they are very excited about the marathon, and the Tourism Board has donated $30,000 for advertising and $50,000 to sponsor the event.
Mayor Schwarz thanked Ms. Montgomery for her time.
Presentation on Wright Flight
Barbara Goulet of Wright Flight was recognized to speak. Ms. Goulet went on to give a short presentation to Council and the audience regarding the background of the Wright Flight Program.
Bart Smith asked how the pilots are found for the program. Ms. Goulet stated that the program has a contract with Dillon Aviation in Manteo.
Mayor Schwarz thanked Ms. Goulet for her time.
Presentation on Hurricane Katrina’s Effect on Waveland, Mississippi
Robyn Smith was recognized to speak. Ms. Smith stated that she recently volunteered to help in Waveland, Mississippi immediately following Hurricane Katrina. Ms. Smith went on to show a slide show presentation of the devastation in Waveland to Council and the audience.
Mayor Schwarz thanked Ms. Smith for her time.
OLD BUSINESS/ITEMS DEFERRED FROM PREVIOUS MEETINGS
Discussion/Consideration of Resolution No. 05-15, Related to the Establishment of a Fund Balance Policy
Mayor Schwarz stated that he was not present at the mid-month meeting discussion and asked Council for any comments on the proposed resolution.
Mayor Pro Tempore Beres had one change to the resolution. Councilor Thibodeau had one punctuation addition.
Mayor Schwarz stated that at the conference he attended in Hickory, North Carolina, fund balance was one of the discussions. After the discussion, he had spoken to a number of people and had mentioned a range. He stated they were leery of the range. He stated that if Council sets a fund balance, it should be set at some percentage and leave it at that. He stated he was not clear why a range would be necessary. He recommended looking at the resolution more closely and felt that Council should be very clear on it. He stated that it was stressed at the conference that a fund balance policy should be in effect. He stated he questions the logic of having a fund balance range instead of a set percentage.
Mayor Pro Tempore Beres asked if the people Mayor Schwarz had spoken to had given him a rationale as to why a target percentage would be better than a range. Mayor Schwarz stated that the people stated it should not be real high, but had not given a rationale.
Councilor Morrison pointed out that the number will fluctuate, which was the reasoning for the range. He felt that if a particular number was set, it would fluctuate around it and Council would feel the need to take action every year. Mayor Schwarz stated that the purpose of the fund balance was not to have a “slush” fund. He stated that through proper planning, the goal can be reached. He stated that money should not be put into the fund balance to be used for other things.
Councilor Thibodeau stated that if there are upcoming projects requiring capital funds, it should be outside the realm of the fund balance. She stated that she could see the rationale behind setting up a range. She stated that she couldn’t understand why there couldn’t be a range.
Councilor Caviness agreed with Councilor Thibodeau’s comments. She stated that she does agree with clarifying the percentage.
Mayor Schwarz stated that if the goal is to have a percentage of the general fund as the fund balance, then that should be a single percentage.
Councilor Morrison thought the goal was a minimum of 75%. But if the Town goes up to 100%, then Council would have to take some action.
Town Manager Layton clarified the 75% to 100% range. He suggested some expanded language in the resolution.
Mayor Pro Tempore Beres stated that another way to determine a percentage would’ve been to do a risk analysis and determine the point and range for it. He stated that no matter what, it would still be a risk.
Councilor Morrison asked Mayor Schwarz how he felt about the 75%. Mayor Schwarz stated he thought it was a little high, but was comfortable with it. He stated the recommendation in Hickory was that if the Town is uncomfortable with a number selected, other Towns should be called that are in similar situations.
Councilor Caviness stated that she thought Council had looked at the fund balances for many towns that were similar to Duck’s. Town Manager Layton stated that the percentages were for a lot of the coastal communities along with others to balance things out. He stated it all comes down to what Council is comfortable with. He stated that currently the Town is at the 50% mark with its fund balance.
Mayor Schwarz stated that at the conference it was pointed out that smaller towns have higher percentages of fund balances and that larger towns have smaller percentages of fund balances. He agreed with Town Manager Layton that the number has to be one that Council is comfortable with.
Councilor Thibodeau pointed out that the number will change as the budget grows. She asked if the Town is at the 50% mark as opposed to the 35% mark. Town Manager Layton stated she was correct.
Councilor Morrison asked if the Town could reach its target in 3-4 years instead of 5 years. Town Manager Layton stated the Town could, but there will be some money spent before the target is reached.
Councilor Thibodeau stated that the range was put in the resolution so Council could have a remedy if the amount goes above or below the number. Mayor Schwarz stated it wasn’t a remedy for going below the amount. He stated it was only a remedy for going above. Councilor Thibodeau read a portion of the resolution regarding going above or below the range.
Mayor Schwarz asked that if the Town attains 75%, would the goal be to attain 100%. He stated he is not clear on the purpose of the range. Mayor Pro Tempore Beres stated the goal would be to attain 100%, but to expect fluctuations and take the necessary actions. Mayor Schwarz asked if the point was to attain 100%. Mayor Pro Tempore Beres stated he was correct. Mayor Schwarz asked why it couldn’t just be set at 100%. Councilor Thibodeau stated that if it wasn’t at 100%, it could be interpreted as unacceptable. At 75% - 100%, it’s an acceptable range. Mayor Schwarz stated he still didn’t get the point.
Town Manager Layton stated that there was an understanding that the desire of the Council was to make the policy as flexible as possible and to start planning for capital items. With the range, Council can look at the range and decide whether to shift money over without violating the policy. He stated it could give the Town some flexibility. Mayor Pro Tempore Beres stated it was a comfort level.
Mayor Schwarz stated that he thought 100% was too high and that 75% made more sense. He stated he would rather have a set number as opposed to a range.
Councilor Morrison moved to adopt Resolution 05-15, pertaining to establishing a policy related to the unreserved fund balance as amended.
Motion adopted 4-1 with Mayor Schwarz dissenting.
Update on the Currituck Sound Area Transportation Study
Town Manager Layton stated that he and Mayor Pro Tempore Beres had two meetings with the Collaborative Group of the Currituck Sound Area Transportation Study. He stated that as part of the study, the new initiative to generate local support was to get all of the town managers together to tour Currituck, Duck and Southern Shores. He stated they spent a lot of time discussing problem areas in Duck and Southern Shores and possible solutions. He went on to give an overview of the meeting to Council and the audience.
NEW BUSINESS
Discussion of Bicycle and Pedestrian Safety
Police Lieutenant Phillip Ferguson was recognized to speak. Lieutenant Ferguson stated that as a result of numerous inquiries regarding safety concerns on the bike path, Sergeant Ackerman and Officer Torres worked on and developed a synopsis of the problems. Both officers are working on solutions to the problems which will be presented in the spring.
Lieutenant Ferguson stated that the bike path has approximately 13,000 bicycles that pass over it in a given week during the summer, which does not include pedestrians. He stated that 57 streets and over 50 commercial entryways intersect with the path. He stated that many people on the bike path feel that they should have the right of way of motor vehicles at all times and because of this, accidents happen.
Lieutenant Ferguson went on to give an overview of the situation to Council and the audience.
Mayor Schwarz thanked Lieutenant Ferguson for his time.
Councilor Morrison moved to adopt Resolution 05-16, thanking Ms. Donna Black for her Service to the Town of Duck as Interim Fire Chief.
Motion adopted 5-0.
Mayor Schwarz went on to read the resolution to Council and the audience before presenting Ms. Black with the resolution.
ITEMS REFERRED TO AND PRESENTATIONS FROM THE TOWN ATTORNEY
Town Attorney Ike McRee was recognized to speak. Town Attorney McRee introduced Ben Gallop to Council and the audience. He stated that Mr. Gallop is a new associate with Hornthal, Riley, Ellis and Maland and will be working with Town Attorney McRee. Town Attorney McRee gave a short background on Mr. Gallop to Council and the audience.
Mayor Schwarz welcomed Mr. Gallop to the Town.
ITEMS REFERRED TO AND PRESENTATIONS FROM THE TOWN MANAGER
Update on Departmental Activities
Town Manager Layton stated that he had the department heads prepare reports before the meeting on their activities. He went on to hand out the building permit activity, police department activity and fire department activity reports to Council.
Update on Recycling
Town Manager Layton passed out two graphs to Council showing the tonnage and percentage of waste for the month of October.
Update on Dauphin Island Benefit
Town Manager Layton stated that in mid November, he, Mayor Schwarz, Mayor Pro Tempore Beres and Police Chief Dale Hamilton will be driving to Dauphin Island, Alabama to deliver the Gator. He stated they will also be giving a donation to the Dauphin Island Fire Department while there.
Budget Amendments
Town Manager Layton stated that he had one budget amendment to transfer $17,400 from the contingency fund to the Streets and Highways line item to cover costs associated with the rental and maintenance of the pump at the Tuckahoe subdivision.
Mayor Pro Tempore Beres moved to approve the budget amendment as presented.
Councilor Thibodeau asked if the pump cost about $6,000 per month. Town Manager Layton stated she was correct.
Motion carried 5-0.
Financial Statement for the Month of October 2005
Town Manager Layton stated he has not received all of the bank statements to date, but presented Council with a financial report on revenues and expenditures.
MAYOR’S AGENDA
Mayor Schwarz gave a short overview of his experience at the League of Municipalities conference he had attended earlier in October to Council and the audience.
He stated that the Shoreline Protection Committee meets the fourth Tuesday of every month. He stated that participation has not been very good, but that the public is invited to attend. He stated the interview committee will be interviewing candidates for the Shoreline Protection Manager position. He stated that in February, 2006 the referendum on the 1% sales tax will be happening. He recommended that Council and the audience familiarize themselves with the referendum.
COUNCIL MEMBERS’ AGENDA
Councilor Caviness stated that she had nothing to report.
Councilor Morrison stated that he had nothing to report.
Councilor Thibodeau stated that she had attended a CDC meeting recently. She stated they are moving forward with ideas to develop a land trust. She passed out an outline of their projects to Council.
Mayor Pro Tempore Beres stated he had nothing to report.
OTHER BUSINESS
Mayor Schwarz asked for any other business. He stated the next meeting will be Wednesday, December 7, 2005 at 7:00 p.m.
CLOSED SESSION
Mayor Pro Tempore Beres moved to enter closed session to consult with an attorney to establish or to instruct the public body’s staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange or lease.
Motion carried 5-0.
The time was 8:50 p.m.
Upon return from closed session, Mayor Pro Tempore Beres moved to go into open session.
Motion carried 5-0.
Councilor Morrison gave Council an update on the grant applications to the Tourism Board. He stated that the Tourism Board has shifted an additional $300,000 into their short-term restricted fund after some discussions. He felt this was a good sign that the Town may receive the grants. He stated that a decision has not been made at this time on them.
Town Manager Layton stated that Officer Bruce Farmer has resigned from the Duck Police Department as he was accepted to Blackwater. He stated that Chief Hamilton will be interviewing potential candidates to replace Officer Farmer.
There being no further business, Councilor Caviness moved to adjourn the meeting.
Motion carried 5-0.
The time was 9:02 p.m.
____________________________
/s/ Christopher J. Layton, Town Clerk
Approved: ______________________
_______________________________
/s/ Gene Schwarz, Mayor