TOWN OF DUCK
TOWN COUNCIL
REGULAR MID-MONTH MEETING
May 16, 2007
The Town Council for the Town of Duck convened at the Duck Municipal Offices at 1:00 p.m. on Wednesday, May 16, 2007.
COUNCIL MEMBERS PRESENT: Mayor Neil Morrison; Mayor Pro Tempore Monica Thibodeau; Councilor Nancy Caviness; Councilor Denver Lindley, Jr.; and Councilor Bart Smith.
Council Members ABSENT: None.
OTHERS PRESENT: Town Manager and Town Clerk Christopher J. Layton, Director of Community Development Suzanne Cotellessa; Town Attorney Donald I. McRee, Jr.; Police Chief Dale Hamilton; Fire Chief Donna Black; and Deputy Town Clerk Lori Kopec.
OTHERS ABSENT: None.
Mayor Morrison called the meeting to order at 1:01 p.m.
DISCUSSION/CONSIDERATION OF ORDINANCE NO. 07-05, AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE TOWN OF DUCK, NORTH CAROLINA, REGARDING TREE AND VEGETATION PRESERVATION AND PLANTING
Mayor Morrison stated that Council does not normally have a public comment period at their mid month meetings; however, in order to be sure everyone is heard regarding the draft ordinance, he would open the floor for comments. He stated that no comments would be allowed once Council begins their deliberation on the ordinance.
Bill Lane of East Coast Construction Group was recognized to speak. Mr. Lane thought the ordinance was a good one but was very difficult to understand as a builder. He stated that trying to make everything work would cause a lot of expense to the homeowners. He felt it needed to be simpler so people could understand it. He pointed out that it is difficult to build in Duck as far as ordinances goes and this new ordinance would delay building further. He reiterated that the ordinance was a great idea but that it needed to be simpler.
Jay Heyman of 109 Speckle Trout Drive was recognized to speak. Mr. Heyman asked what he would have to do if he wanted to put a small addition on his home once the vegetation ordinance is passed. Mayor Morrison suggested he contact Director of Community Development Suzanne Cotellessa.
There being no one else wishing to speak, Mayor Morrison closed the time for comments.
Mayor Morrison stated that at the Council’s May 2, 2007 regular meeting, the ordinance was discussed and it was determined that the discussion would continue to finalize the language for the ordinance. He stated that a second public hearing would be held at the June 6, 2007 meeting. He pointed out that comments and recommendations by Mayor Pro Tempore Thibodeau were incorporated into the draft ordinance as well as staff comments from Director Cotellessa.
Director of Community Development Suzanne Cotellessa was recognized to speak. Director Cotellessa stated that the ordinance was distributed to Council at their last meeting for Council’s review. She stated that the suggestions and recommendations were reviewed and changes were incorporated into the new draft ordinance.
Council and Director Cotellessa reviewed each page of the ordinance with regard to the suggestions Mayor Pro Tempore Thibodeau came up with as well as comments by Director Cotellessa.
Mayor Pro Tempore Thibodeau felt that Page 2 of the ordinance should not have “…and properly maintain…” as she didn’t think it was the intent of the ordinance to dictate how the trees would be maintained. She thought it was just speaking of preservation and replacement if need be. She stated that she had suggested that the phrase come out of the ordinance. Mayor Morrison stated that the phrase would be removed from the ordinance.
Mayor Morrison stated that Page 3 had three (3) options entitled “Clear Cutting”. He clarified that Option A was basically what John Summers had recommended at the May 2, 2007 meeting. Director Cotellessa stated that it was. Mayor Morrison stated that Director Cotellessa had added comments under each option. He asked Council for discussion and pointed out that one (1) option could be chosen.
Mayor Pro Tempore Thibodeau stated that it was brought up that clear cutting was not prohibited in the ordinance and how it should be worded to prevent people from cutting everything down. She felt that staff’s comments were pretty self explanatory. She stated that the option was difficult to word.
Mayor Morrison thought that Option C was what Director Cotellessa had come up with after hearing discussion with members of the public. Director Cotellessa agreed and stated that it was to try to get at some of the comments on the original ordinance. She stated that none of the options were very specific with respect to requiring people to leave some trees on a lot.
Director Cotellessa stated that Option B changed the word “all” to “every” which leaves open the question as to if a homeowner leaves one tree on their lot, they have met the regulations. She stated that the clear cutting did not get at the practical aspect of construction, value or hardiness of vegetation to remain on the lot and the issue of a person coming in and wanting to get rid of the trees. She stated that the ordinance has allowed some homeowner discretion.
Director Cotellessa stated that Option C states that a homeowner cannot go onto a lot and mow all the vegetation down and figure out later what will be planted. She stated that the idea was to plan for things on a vacant lot by having the owner submit a management plan showing what they will be doing; showing where the building will be situated so it can be determined if the vegetation is in the way of development; and obtain an approved building permit. She stated that Option C prevents clear cutting on vacant lots but does not prevent someone from coming in and going through the whole process and cutting down the vegetation.
Director Cotellessa pointed out that none of the proposed options state clearly that trees cannot be taken down forever on a lot, but it stops and forces planning for it. She stated that Option A and Option B were very nebulous and would be hard to administer. She stated that Option C states that clear cutting would not be allowed without a plan.
Mayor Morrison clarified that it would prevent a whole development from being clear cut. Director Cotellessa stated he was correct as long as there was a plan for each individual lot, each individual house, grading, re-vegetation and an assessment of the trees that may be rotted. She stated that if it was the desire of the property owner to re-vegetate, the ordinance would not prevent it, but would require a plan for it. She stated it would prevent them from tearing all the vegetation down before a plan is in place.
Councilor Caviness clarified that they would also need an issued building permit. Director Cotellessa stated she was correct. Councilor Caviness asked if it would prevent the clearing like in the Duck Ridge and Four Seasons subdivisions. Director Cotellessa stated it would prevent someone that owns a wooded lot from coming in and cutting down all the trees. She stated with the approved building permit, a commitment would be made for developing the lot.
Mayor Pro Tempore Thibodeau asked if a potential owner could get a building permit for a lot and have it denied. She asked how much extra it would cost for a surveyor to survey a lot. Director Cotellessa stated that part of it depends on how heavily wooded the lot would be as well as how many large trees are on it. She stated that it would be a few hundred dollars more for the survey on an average lot. She stated that if the lot did not have many trees, the homeowner could do the survey. She stated that the Town is trying to make it as simple as possible. Mayor Pro Tempore Thibodeau clarified that the trees do not have to be on the survey when obtaining a building permit. Director Cotellessa stated that they would have to as part of the vegetation plan. She thought the idea was if someone wanted to put a particular house in a particular place on a lot and the tree is in the middle, the tree would come down. She thought the idea was to be as flexible as possible.
Councilor Smith asked if under Option C, an owner gets all the proper permits and is up to the point of submitting the building permit application and on the vegetation plan, they show where everything is except all of the original tress on the lot. He stated that they have a plan to put in trees to cover the 15%. He asked what Director Cotellessa’s actions would be. Director Cotellessa stated that the vegetation management plan has a series of items the owner would need to look at. She stated that there are a series of criteria that would need to be looked at with the vegetation management plan such as the health of the tree, the effect of removing the tree and the stabilization of the soil. She stated she would not expect it to be an automatic sign off. She stated that if after looking at everything and there is a large tree on the lot not affecting anything, she would encourage the homeowner to keep that tree. She stated that if they still want to remove the tree, she would reject the permit. The next step would be the homeowners would come before Council for an appeal.
Councilor Smith stated he was nervous about clear cutting. He didn’t think a builder had a valid argument for coming in and just wanting to clear cut a lot. He thought Option C allowed the most, clear point the Town was trying to get across with regard to clear cutting. He felt that Option A and B were unfair to the builders.
Mayor Pro Tempore Thibodeau agreed with Councilor Smith’s comments. She thought what Council was hearing was the fear of developers. She agreed that Option C was the preferred one for the ordinance.
Councilor Caviness asked if a motion needed to be made on which option Council wanted for the ordinance. Mayor Morrison stated one was not needed.
Councilor Lindley asked if Council adopted the ordinance and it needed to be amended, what would be involved. He asked what it took to amend an ordinance. Town Attorney McRee stated it would be the same process Council was presently going through. He stated it would go through the Planning Board for recommendation to Council, a public hearing and then action on the amendment.
Mayor Pro Tempore Thibodeau asked if the six (6) inch diameter at breast height for a tree came from a recommendation of the Planning Board. Director Cotellessa stated that the vegetation management plan on Page 5 of the ordinance gets at the size of the tree. Mayor Pro Tempore Thibodeau asked how diameter breast height was measured. Director Cotellessa stated it was measured from approximately four and one half (4½) feet off the ground.
Mayor Morrison stated that Council would go with Option C for the ordinance. Mayor Pro Tempore Thibodeau stated that that because Option C was chosen, the draft language under Tree Removal Permit was counter-intuitive. She stated she was trying to make it more lenient so that people would not have to obtain a permit to take down any tree. She didn’t know if it now made sense based on choosing Option C. Mayor Morrison asked if Mayor Pro Tempore Thibodeau wanted to go back to the original wording in the ordinance. Mayor Pro Tempore Thibodeau clarified that if the original wording was put in, it would mean that any homeowner would need a tree removal permit. Director Cotellessa and Mayor Morrison stated they would if the tree was twenty-four (24) inches. Mayor Morrison asked Director Cotellessa to put the original wording back in the ordinance.
Mayor Pro Tempore Thibodeau clarified that a lot with trees that are twenty-four (24) inches or greater would now not require a tree removal permit. Director Cotellessa stated that a tree management plan would be required under certain circumstances such as new construction or a substantial addition. She stated that if the lot is wooded, the house is already built and a homeowner wanted to take out a twenty (20) inch tree, a permit would not be required. She stated that they would still be required to have fifteen percent (15%) vegetation on their lot. She stated that the Planning Board wanted to make it a very easy process for a homeowner to decide on his own lot what would be kept or taken away, except with regard to trees that are 24 inches. She stated that when it’s that size, the vegetative cover could be critical and would need to be looked at.
Mayor Pro Tempore Thibodeau clarified that the tree removal permit criteria was for homeowners with trees larger than 24 inches or for new development. Director Cotellessa stated she was correct. Mayor Pro Tempore Thibodeau clarified that if a homeowner had a large tree that he wanted to take down as well as some smaller ones, he wouldn’t need a tree removal permit, but if only a 24 inch tree was taken down, they would need to have the 15% canopy. She clarified that a new development would be required to have a tree removal permit only for the large trees. Director Cotellessa stated that a vegetation management plan would be required for all new development. She stated that if there are no 24 inch or greater trees, an approved vegetation management plan and building permit would need to be obtained. She stated that the tree removal permit applies to the 24 inch trees. She stated that the most substantial trees in Town would be looked at closest whether it’s with an existing house or new development.
Mayor Morrison asked how the historical value of trees could be determined. Director Cotellessa stated that there is a section in the ordinance where Council could designate a tree as historically important to the Town. She stated that if someone came in with a permit to remove the historical tree, it would have to be considered.
Mayor Pro Tempore Thibodeau clarified that if someone comes in with a tree removal permit and it’s denied, the homeowner would have the recourse to go to Council to state they really want to remove the tree. Director Cotellessa stated they could and it was listed under the Special Exceptions section in the draft ordinance.
Councilor Smith asked if the large, live Oak in front of Scarborough Lane would be considered a historical tree if the owners wanted to expand their deck in a square as opposed to curving it around the tree. Director Cotellessa stated they would be encouraged to curve the deck around the tree. She stated that there were a few trees in Town that could be considered quite significant to the Town that could be designated by Council as historical trees.
Mayor Pro Tempore Thibodeau asked if a homeowner has a tree on their property that dies, would they be responsible for obtaining a tree removal permit. Director Cotellessa stated that trees die over a long period of time. She stated that if a tree is struck by lightning or dies from disease, it would be good practice to remove the tree. She stated that a tree removal permit would be required for a tree that died from disease, however if it was struck by lightning, there is a tree emergency exception in the ordinance that applies where a tree removal permit would not be required. She thought it would be very rare.
Mayor Pro Tempore Thibodeau appealed to staff to let Council know if any section of the ordinance is not working.
Mayor Pro Tempore Thibodeau stated that the reasoning behind her comments on Page 5, Section E, 1 was to make things less restrictive. She stated that not everything may be required of Director Cotellessa on the list, but only a few things. She stated that she didn’t get that from the original language. Councilor Smith agreed. He stated that he knew what the language was supposed to mean but that it should be worded better. Mayor Pro Tempore Thibodeau suggested the wording state: “…the following information is necessary…” Director Cotellessa suggested: “…as much of the following information as may be required to review the plans…” Mayor Pro Tempore Thibodeau wondered how it could be determined as to what someone would need. She stated she wanted the process to be as easy to understand as possible.
Councilor Caviness asked Director Cotellessa to re-state her suggestion. Director Cotellessa stated that her suggestion was: “…shall submit a vegetation management plan containing as much of the following information as may be required to review the proposed plan…” She stated that most of the information would be required for redevelopment. She stated that if a homeowner is adding onto an existing property, she may not need all of the required documents. She suggested “…all new development on undeveloped lots will be required to submit the following information. For additions, less information may be required subject to the discretion of the Director…” She asked if that language would make things clearer. Mayor Pro Tempore Thibodeau thought it would help.
Town Attorney McRee felt the way the wording was drafted was very clear from an attorney’s perspective. He stated that the language does exactly what the Town wanted done. He stated that the proposed language would mandate that a homeowner be required to provide each document whether the Director wanted or needed it. Mayor Pro Tempore Thibodeau agreed. Town Attorney McRee stated that Council was just getting back to the language that was already proposed but with different words. Mayor Pro Tempore Thibodeau asked if Town Attorney McRee read the language, would he know to contact the Director. Town Attorney McRee stated that he would understand that not all of the information would be needed unless the Director wanted it. He stated it is always good practice for anyone that begins a development or improvement project to come to Town Hall and speak to the local officials to find out what is required. He thought the language was clear. Councilor Smith pointed out that there were seven (7) things that may be asked of someone. He went on to review the items that someone would need. He stated that if someone does one of the items, the others would be done as well at the same time. He agreed that Director Cotellessa could look at the satellite view of a lot and determine if there were enough trees on it.
Mayor Pro Tempore Thibodeau thought that as long as the language was easy to understand and people realize there is a process they will have to follow, it would be helpful. She suggested there be language that states that people would have to come in to meet the Director to find out what’s required. Director Cotellessa thought it would be helpful to have hand outs that would state what would need to be done with regard to trees. Town Attorney McRee felt it would be a preferred route to go. Mayor Pro Tempore Thibodeau liked the idea of having a hand out.
Councilor Smith stated that the builder may go through a slower process the first time once the ordinance is passed. He stated that once they go through it, they will have a better idea of what to expect. He stated he liked the idea of the hand out as well.
Mayor Pro Tempore Thibodeau stated she did not have a problem with leaving item H in the ordinance. Director Cotellessa stated that the Planning Board had recommended item H be put in the ordinance.
Council and Director Cotellessa reviewed the meaning of “dripline” on Page 6 of the draft ordinance. Director Cotellessa felt that as much as possible, the Town should strive to have builders fence off a dripline during construction.
Councilor Smith asked if there was a large tree near the front of the lot, would there be some reasonable idea regarding access to the lot versus the dripline of the tree. Director Cotellessa directed Council to Page 7 of the ordinance and pointed out that the outer half of the dripline on one side of the tree would be required but no closer then 2½ feet of the tree. She stated that if half the dripline is affected, it would be better than the whole dripline.
Mayor Morrison stated that he has a lot of leaning live Oaks on his lot. He clarified that the dripline would not be under the canopy but where the tree trunk was. Director Cotellessa stated that the dripline would be approximately 2½ feet from the trunk.
Mayor Pro Tempore Thibodeau clarified that effective dripline protection was defined in Section 3b on Page 7. Director Cotellessa stated she was correct. Mayor Pro Tempore Thibodeau reiterated that she wanted the ordinance to be more practical. She stated she would be fine with putting “dripline” back in the ordinance. Mayor Morrison suggested rewording Item h 1 to state: “…retaining walls, construction fencing or other structures…” Mayor Pro Tempore Thibodeau stated she was fine with the language.
Mayor Pro Tempore Thibodeau stated that on Page 8 she was trying to take out some of the subjectivity as there may be times when planting is not permissible. She stated she didn’t want to make it hard on people. She asked if a lot of conditional occupancies were granted. Director Cotellessa stated that it was very rare. She stated that she didn’t want to accomplish deferring planting for a whole season by taking the language out of the ordinance.
Mayor Morrison clarified that Section L 2 would be left as it was written with the changes. Mayor Pro Tempore Thibodeau stated he was correct.
Mayor Pro Tempore Thibodeau stated that the reason for her change under Irrigation on Page 9 was to clarify that irrigation systems were not required. Director Cotellessa stated that there was a question about people concerned about whether irrigation systems were required. She stated that nothing in the ordinance stated that they were required. She thought by putting the new language in, it would clarify that while they are not required, anything that is installed afterward would have to meet the requirements. Mayor Pro Tempore Thibodeau thought it would be helpful to have language in the hand out that would explain obtaining rain sensors as well as the dos and don’ts with public water.
Councilor Smith moved to authorize advertising for a public hearing at the June 6, 2007 meeting for Ordinance 07-05 with the consensus changes made.
Motion carried 5-0.
PUBLIC HEARING/DISCUSSION/CONSIDERATION OF RESOLUTION NO. 07-05, A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT FINANCING CONTRACT IN AN AMOUNT NOT TO EXCEED $4,700,000.00 WITH RBC CENTURA BANK TO REFINANCE THE ACQUISITION OF CERTAIN REAL PROPERTY AND THE CONSTRUCTION OF A TOWN PARK FOR USE BY THE TOWN OF DUCK, NORTH CAROLINA, AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED INSTRUMENTS, AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH
Town Manager Layton stated that the issue was discussed at the May 16, 2007 budget presentation. He stated that as he prepared the budget for the fiscal year, it was clear that the Town could achieve significant cost savings by refinancing the two (2) loans on the park property as one. He stated that by combining them, the Town could get a lower interest rate. He stated that the LGC (Local Government Commission) allows the Town to execute the contract and also helps get everything in order for approval for their July meeting. He stated that the LGC will not allow a municipality to extend the terms of a contract. He stated that the Town is not extending the fifteen (15) year term of debt, but would be seeing a lower interest rate. He stated that the Town would see a $50,000 to $100,000 a year savings by refinancing. He stated that after eleven (11) years the Town will drop down to payments on the $1.25 million loan. He reiterated that the resolution is a requirement to go before the LGC and the Town has been working with RBC Centura Bank so there will be no issues with regard to titles. He stated that the only other costs that will have to be paid will be the accrued interest that will be used to pay off the note with BB&T. He stated that the refinancing would be essential to meeting the budget needs of the Town.
Mayor Morrison opened the public hearing for comments. There being no one wishing to comment, he closed the time for the public hearing.
Mayor Morrison asked Council for discussion regarding the resolution.
Mayor Pro Tempore Thibodeau asked if the accrued interest would come out of the General Fund or if it would be rolled into the financing. Town Manager Layton stated that rolling the interest into the financing was not allowed. Mayor Pro Tempore Thibodeau asked what the estimate would be for how much would be owed. Town Manager Layton stated he wasn’t sure but thought it would be approximately $50,000.
Town Manager Layton pointed out that the interest rate on the loan would drop from 4.07% to 3.98%. Mayor Pro Tempore Thibodeau asked if the interest rate would change based on when the financing is approved. Town Manager Layton stated it was a locked in rate. Mayor Pro Tempore Thibodeau asked how much would be saved. Town Manager Layton stated it would be between $50,000 and $100,000.
Councilor Lindley moved to adopt Resolution 07-05 as presented.
Motion carried 5-0.
Mayor Morrison called for a ten (10) minute recess. The time was 2:24 p.m.
WORK SESSION ON THE PROPOSED FY 2008 BUDGET
Mayor Morrison reconvened the meeting.
Town Manager Layton stated that Council would continue discussions on the proposed budget knowing there will be a public hearing on it at the June 6, 2007 meeting. He stated the public hearing would be a discussion on the document as he had presented it. He stated that Council would need to discuss any changes that would occur after the public hearing. He stated that the budget would not be changed to have a public hearing on the changes. He suggested that if another work session is needed, it could be established or if one is needed after the public hearing, it could be established as well. He pointed out that the only rule was the budget would have to be adopted before June 30, 2007. He stated that the budget would consist of the proposed budget as well as the Capital Improvements Program (CIP). He stated that he will also be asking Council to adopt the revised fee schedule, which would be adopted when the budget is adopted, and would be effective as of July 1, 2007. He went on to review the budget as well as shared revenue scenarios with Council and the audience.
Councilor Smith asked what the $515,000 figure was with regard to shared revenues. Town Manager Layton stated it was what he was recommending in the budget.
Mayor Pro Tempore Thibodeau stated that the transfer tax was an unknown. She clarified that the estimated figures in the budget were fairly conservative. Town Manager Layton stated she was correct. Mayor Pro Tempore Thibodeau pointed out that the figures could change if the Town experienced a bad storm. She stated that she appreciated that Town Manager Layton was being conservative with the budget. Town Manager Layton stated he was setting things up for the next several years. He stated that his plan for the next year was to adjust the CIP so that the Town creates a capital fund which would be tied to the transfer taxes. Mayor Pro Tempore Thibodeau asked if that was done, would the money be pulled from the individual departments. Town Manager Layton stated it would be reflected in the CIP with each department so Council would know where the money is going.
Councilor Caviness asked if the tax rates for each municipality was a best guess. Town Manager Layton stated it was at this point since no municipality has adopted their budget yet. Councilor Caviness asked which municipalities were proposing a tax increase. Mayor Morrison thought the Town of Nags Head was. Town Attorney McRee stated that the Town of Nags Head is not proposing an increase. Town Manager Layton stated that there could be additional fluctuations, but the Towns of Kill Devil Hills and Nags Head were shown with some type of increase. He stated that no municipality may increase their taxes for the coming year. Town Attorney McRee stated that the Town of Southern Shores had 1.25 cent proposed increase.
Councilor Smith asked if it was important to save as the Town is presently doing or should it be pre-emptive for this year and the coming year instead of doing a gradual tax change. Town Manager Layton stated that the Town would not be doing a gradual tax increase this year and another next year. Councilor Smith clarified that there would not be a tax increase in 2008. Town Manager Layton stated that barring a major event, he didn’t know how the Town could do it. He stated that the debt service on the land was the driving factor for not increasing taxes.
Mayor Pro Tempore Thibodeau asked if $25,000 would be allocated for the planning process for the park property. Town Manager Layton stated that the Town building would depend on which direction Council takes. He stated it could be an additional cost for the future. Mayor Pro Tempore Thibodeau felt that Town Manager Layton made it clear in the introduction of the budget that the Town is still young and coming up with services. She asked if he was taking away a half position and replacing it with a full position for the Fire Department. Town Manager Layton stated that there was one (1) full position for a Deputy Fire Chief. He stated that that was the only new position that was requested in the budget. Mayor Pro Tempore Thibodeau asked if the half position for the Fire Department would be kept. Town Manager Layton stated he would keep it, but the position may change depending on how it works. Mayor Pro Tempore Thibodeau stated she would prefer a tax increase all at once instead of gradually.
Councilor Lindley felt that once Council comes to the point of raising taxes, there should be a discussion as there are different philosophies about it. He thought Council should think things through carefully. Mayor Pro Tempore Thibodeau asked what his preference was for tax increases. Councilor Lindley stated he was in favor of doing one all at once instead of gradually as well.
Councilor Caviness asked what the appropriate strategy would be with regard to dealing with the transfer tax. Town Manager Layton stated that the local government financing mantra was to have fifty percent (50%) of the revenues in stable sources. He stated that with regard to the changes, the Town was in the forty-eight percent (48%) range and the proposed budget has it at fifty-three percent (53%). He stated that the transfer tax is unstable and he cautioned that the Town should wean themselves away from that over time because the operational budget should be with more solid numbers than what the transfer tax allows. He pointed out that one (1) cent on the tax rate brings in over $200,000. He stated that the theory he uses to work on a budget is to have as much stable funding for the operational budget and then use the unstable funding sources for one-time expenses.
Mayor Pro Tempore Thibodeau pointed out that the reason the Town is at nine (9) cents was due to the reassessment. She asked if it was known when another reassessment would be done. Town Manager Layton stated that Dare County does them every seven (7) years. She stated that one of the reasons the Town can get $200,000 for a one (1) cent increase was due to the Town’s values being high. Town Manager Layton agreed. He added that the Town’s tax collections are also very high.
Councilor Smith asked how many municipalities would have no choice but to raise taxes in 2008. Town Manager Layton stated that if no one raises them this year, he thought that probably half the municipalities would.
Councilor Caviness agreed with Mayor Pro Tempore Thibodeau and Town Manager Layton’s comments regarding the Town trying to figure out its level of service, but thought that the Town had defined what its values, community and principles are as it is constantly reflected in the budget.
Mayor Pro Tempore Thibodeau agreed with Councilor Caviness’ thoughts. She thought that with the new budget, there was more money going towards lifeguards as well as the additional position with the Fire Department. She stated that there will eventually be a leveling off of things. She suggested that the Town start thinking about where the leveling off would be. She stated that Town Manager Layton and his staff have done a great job, but at some point there will be leveling off. She thought there could be a work session regarding the leveling off.
Councilor Lindley thought the Town had an extraordinary sense of community. He thought that the thing that could hurt the Town would be to over-promise. He stated that the Town is doing things as it is able and the goals are achievable. Town Manager Layton stated that one of the ideas he hoped to get better at presenting and planning for was the promising. He stated that the CIP puts the ideas on paper to see what is being promised before actually doing it.
Councilor Smith stated that other municipalities raising taxes has an effect on the Town’s tax rate due to the percentage of the advalorem taxes. He didn’t think that Dare County would be proposing a tax increase. Councilor Caviness stated they weren’t. Councilor Smith thought the County would not be in the same position next year. He stated that he was concerned about the tax rate the Town would need next year to compensate for the other municipalities’ raising theirs and for providing services to the Town, which may be uncomfortable. He thought if the increase was divided among two (2) years, it may be more subtle.
Mayor Morrison stated that Councilor Lindley’s comments regarding one big increase at once had merit. He stated he did not want to have to raise taxes every year. He stated it will take some finesse to hit the right tax rate because land transfer taxes will pick up again, helping revenues to increase. Councilor Smith stated he was partially in agreement with Councilor Lindley’s comments regarding a tax increase. He stated that he hoped it would be a one time thing.
Mayor Pro Tempore Thibodeau thought Town Manager Layton refinancing the Town property was fiscally responsible. She stated that the refinancing allows the Town to keep things as they are. She stated she would want to have a reason for raising taxes.
Councilor Lindley stated he understood Councilor Smith’s comments but felt there was an objection to taking a tax dollar until it’s needed. He stated that every dollar is someone’s decision and the minute taxes are raised, decisions are taken away. He stated that it is great to plan for the future but felt the Town should be specific as to why the tax increase would be needed. Councilor Smith agreed.
Councilor Caviness thought the way the overall budget and the funds and expenditures are distributed were appropriate. She thought they reflected what the community wanted. She stated she did not want it redirected or changed in any way.
Mayor Pro Tempore Thibodeau asked if there were any other grants the Town could utilize towards the park. Town Manager Layton stated that the Town would apply for a grant for the amphitheater. He stated it would probably be a Tourism Bureau grant. He stated that the Town may look for grants for the boardwalk.
Council and Town Manager Layton reviewed the proposed fee schedule. Mayor Pro Tempore Thibodeau felt the new fees were quite high. Town Manager Layton stated that the new fees were not real high or real low compared to other municipalities.
Councilor Caviness asked why the Town would want to be in line with other municipalities when it costs more to rent or own in Duck. Town Manager Layton stated that Director Cotellessa, Building Inspector Cory Tate and Zoning Administrator Sandy Cady spent a great deal of time researching costs and establishing fair rates. He stated that it was a conscious decision not to be the highest if it wasn’t justified. He thought overall, a good middle ground was chosen. Director Cotellessa stated that the Town is trying to recoup the costs of an individual property owner’s actions so everyone else isn’t paying for staff time or advertising costs. Councilor Caviness stated that she wanted the fees to be in line but if they needed to be higher, then they should be. Mayor Pro Tempore Thibodeau agreed with Councilor Caviness’ comments.
Council, Town Manager Layton and Fire Chief Donna Black discussed the new Deputy Fire Chief position and how it will help out.
Mayor Pro Tempore Thibodeau asked if the second police car purchase would be in next year’s budget or would the Town start a new program where only one (1) car was purchased each year. Police Chief Dale Hamilton was recognized to speak. Police Chief Hamilton stated he completes a vehicle survey each year and then determines what is needed. He stated that he felt that next year he may ask for two (2) vehicles.
Council and Town Manager Layton discussed the fringe benefits each employee receives from the Town, such as 401(k) and the Local Governmental Employees Retirement System. Mayor Morrison asked how much the Town contributes to the 401(k). Town Manager Layton stated it was five percent (5%) with the employees voluntarily contributing if they wish.
Town Manager Layton was called away from the meeting at this point.
Mayor Morrison felt the Town property should have a name that was simple. He suggested naming it “Duck Park”. He suggested once the Town building was constructed, naming it “Town Hall”. Mayor Pro Tempore Thibodeau thought the park was going to be called “Duck Park” but thought no one was sure what to call the building. She clarified that the building should not be named just yet. Mayor Morrison agreed and felt Council should wait until the building is constructed. Councilor Lindley suggested naming the park “Fox Park”. He stated that the name spoke to the natural wildlife in Town. Mayor Pro Tempore Thibodeau stated she liked “Duck Park”. Councilor Smith and Councilor Caviness agreed.
Mayor Pro Tempore Thibodeau asked why Fringe Benefits were reduced under the Inspections line item. Director Cotellessa stated she wasn’t sure why and suggested she ask Town Manager Layton.
Councilor Caviness asked how detailed the line items get broken down with regard to updating the website. Deputy Town Clerk Lori Kopec was recognized to speak. Deputy Town Clerk Kopec stated that the Town does not pay an outside source to update the website as it is done in-house. Councilor Caviness asked if the time was allocated in the line items. Director Cotellessa stated that people work in different areas that may be outside their line of work. Councilor Caviness asked if Zoning Technician Cady did all the website updates. Deputy Town Clerk Kopec stated that she, Zoning Technician Cady and Special Events Coordinator Kathy McCullough-Testa all worked on the website. She stated that the website gets updated on an as needed basis with no particular person focusing on one aspect of it. Director Cotellessa added that Deputy Town Clerk Kopec also types up the Planning Board minutes. She stated that work was not done on billable hours. She stated that if one staff member was overloaded, another member will jump in to help out to keep things even.
Town Manager Layton returned to the meeting.
Mayor Pro Tempore Thibodeau asked about the fringe benefit reduction. Town Manager Layton stated the reduction was due to the Town going from an age-banded health insurance plan to a fixed plan.
Town Manager Layton asked if Council anticipated needing another work session before the June 6, 2007 meeting. He stated that if not, he would draw up a budget resolution, but it would not have to be adopted at the June 6th meeting. He stated there is still time to establish a work session date after public input. It was consensus of Council not to have another work session until after the public input at the June 6th meeting, if needed.
Mayor Pro Tempore Thibodeau thanked Town Manager Layton for coming up with a budget document that was so easy to understand.
UPDATE ON CONTRACT WITH OPM, INC. FOR PHASE II OF THE MUNICIPAL PROPERTY MASTER PLAN
Town Manager Layton stated he had spoken to each Council member regarding his concerns with the contract with OPM, Inc. He stated that he was called away earlier in the meeting to meet with a representative of OPM. He stated that he was assured that the contract would be signed by Friday, May 18, 2007. He stated that the representative also told him that the pier would be in before June 30, 2007. He stated that the resolution would allow him to rescind the contract award if he was not comfortable with the contract being signed by Friday and to enter into negotiations with the next lowest bidder. He stated that a separate contract would be drawn up for the next lowest bidder in accordance with North Carolina General Statutes. He stated that at the moment, he was comfortable with OPM, Inc. coming through but hoped to have more information on Thursday, May 17, 2007. He recommended Council pass the resolution.
Mayor Pro Tempore Thibodeau moved to adopt Resolution 07-06.
Mayor Morrison clarified that Council would be approving the resolution but that Town Manager Layton would not use it unless it was necessary. Town Manager Layton stated he was correct.
Councilor Caviness clarified that a signed contract with OPM, Inc. would be in hand by Friday, May 18, 2007 or the award would be rescinded. Town Manager Layton stated she was correct.
Motion carried 5-0.
Town Manager Layton stated he would like to advertise for the Deputy Fire Chief position as well as the Director of Community Development position as Director Cotellessa would be leaving to take care of her ill husband. Mayor Pro Tempore Thibodeau asked how the Town would work without her. Town Manager Layton stated that Director Cotellessa would stay long enough to train the new employee. He stated that he would try to make a good selection as quickly as possible. Mayor Morrison stated that Council would miss Director Cotellessa. Mayor Pro Tempore Thibodeau added the she has brought so much to the Town. It was consensus of Council to allow Town Manager Layton to advertise for the two (2) positions.
There being no further business to discuss, Mayor Morrison moved to adjourn the meeting.
Motion carried 5-0.
The time was 4:52 p.m.
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/s/ Christopher J. Layton, Town Clerk
Approved: _____________________
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/s/ Neil Morrison, Mayor