Draft Town of Nags Head s5

DRAFT TOWN OF NAGS HEAD BOARD OF COMMISSIONERS REGULAR SESSION October 2, 2002

The Town of Nags Head Board of Commissioners met in the Board Room at the Nags Head Municipal Complex at 9:00 a.m. on Wednesday, October 2, 2002.

COMRS PRESENT: Mayor Robert Muller; Mayor Pro Tem George Farah III; Comr. Doug Remaley; Comr. Brant Murray; and Comr. Anna Sadler

COMRS ABSENT: None

OTHERS PRESENT: Town Manager Webb Fuller; Town Attorney Ike McRee; Rhonda Sommer; Roberta Thuman; Tim Wilson; Bruce Bortz; Charlie Cameron; Butch Osborne; Dave Clark; Jim Northrup; Fran Crutchfield; John Richeson; Kevin Zorc; Norma Hood; Bruce Pollay; David Morton; Harry Thompson; Don Bailey; Chuck Thompson; Pogie Worsley; W. D. Pruden; Mark D. Pruden; Bill Owen; Andy Deal; Eric Harpen; Billy George; Sheila Foster; Ralph Buxton; Don Snyder; Al Foreman; Teresa Pickrel; Anna McGinnis; Sonny Cobb; Wes Carter; Bob and Shirley Weeks; Neil Carighan; Bill Pitt; John DeLucia; Ralph Calfee; Sarah Downing; Connie Brothers; Warren Wren; Kaeli Spiers; David Fletcher; Kathleen Kirkley; Andy Deal; Bill Owen; Bill Freehling; Michelle Wagner; Matt Artz; and Town Clerk Carolyn Morris

Mayor Muller called the meeting to order at 9:00 a.m. A moment of silent meditation was followed by the Pledge of Allegiance to the United States flag.

AUDIENCE RESPONSE – DON BAILEY

Don Bailey, Nags Head resident; he thanked the Public Works staff for taking care of a water leak at his house during his recent vacation; he was very appreciative as it probably saved him a lot of damage.

AUDIENCE RESPONSE – CHUCK THOMPSON

Chuck Thompson, Nags Head resident; feels the Board spends money on beach accesses but not as much is spent on the soundside accesses; he suggested putting a round table around the pine tree at the Danube Street soundside access next to his house; he suggested that other amenities be considered for the Danube Street access because it is a very well used access.

AUDIENCE RESPONSE – CHUCK THOMPSON

Chuck Thompson, Nags Head resident; stated that this may be the last Board meeting he attends because his house has sold and he will be moving to Virginia; he anticipates that he will be gone by DRAFT Nags Head Board Meeting Minutes October 2, 2002 the end of October; he said that he has enjoyed being a resident of the town and has also enjoyed participating in many of the town functions/events/projects and in serving on the Citizens Advisory Committee; he has made many contributions to the town over the years.

AUDIENCE RESPONSE – HARRY THOMPSON

Harry Thompson, Nags Head resident; said that Town-wide landscaping has improved over the past year; he is especially proud of the Town entrance signs which are being well-maintained.

Harry Thompson, Nags Head resident; said that it is now the middle of a building boom yet the Board approved a tax increase which to him means the Town is not charging enough fees for the buildings; he suggested a complete review of the town’s facility fees to include comparing fees with other towns; the Town’s costs need to be covered.

Harry Thompson, Nags Head resident; spoke concerning the Board meeting when the moratorium on large structures more than eight (8) bedrooms was adopted; the Large Structure Committee has come up with a convoluted plan to allow 12-bedroom houses and a “special district”; in South Nags Head is an 18-bedroom house that was permitted by the Town just prior to the moratorium; if a 12- bedroom house becomes a pain to those in the “special district” area, it should be allowed to be a pain Town-wide; he is disappointed as to what has come out of the Large Structure Committee and he was hoping the Town would adopt a similar ordinance to the Town of Southern Shores which does not allow houses more than six g bedrooms; he feels that undue influence is being applied by the builders; he feels that allowing eight (8) bedrooms was reasonable.

Mayor Muller noted that he expects the Board to schedule a public hearing on the large structure ordinance for the November 6, 2002, Board meeting.

PRESENTATION OF TOWN FLAG THAT WAS FLOWN IN “FLIGHT ACROSS AMERICA”

Mayor Muller introduced Warren Wrenn of the National Park Service. Mr. Wrenn read the letter from Charles and Sue Stites who were the official North Carolina flag bearers who took the Town flag to each of the memorial services for 911. Mr. Wrenn expressed his appreciation for the Town for participating in the Flight Across America. The letter from Charles and Sue Stites, dated September 24, 2002, read in part as follows:

“The Town of Nags Head: Please accept our appreciation for your support at the official NC Flag Bearer departure ceremony at the First Flight Airport on September 5 th. We were honored to take the flag of Nags Head with us to each of the memorial services we attended to pay tribute to the victims and heroes of the attacks of 9/11/2001.

‘Your town flag was present at the ceremony held at Shanksville, PA on September 5 th and at the ceremony at the Pentagon on September 6th. On the morning of September 8th, it was on board our airplane as we flew with aircraft representing all fifty states during a “Honor Flight” down the Hudson 2 DRAFT Nags Head Board Meeting Minutes October 2, 2002 River as we passed by the World Trade Center site and the Statute of Liberty. The flag was there during the presentation of the NC State Flag aboard the USS Intrepid that afternoon, and later, the flag of the town of Nags Head was taken to “Ground Zero”.

‘Again, we very much appreciate the warm welcome and sendoff we received, and are pleased to return this flag to the Town of Nags Head.”

Mayor Muller, Mayor Pro Tem Farah and Mr. Wrenn placed the Town flag on the flagpole in the Board Room.

PRESENTATION OF CONTRIBUTION TO OUTER BANKS HISTORY CENTER

Mayor Muller stated that last year the Town worked with the Outer Banks History Center on the Town’s 40th anniversary project.

On behalf of the Board, Mayor Muller thanked the Center for their help to the Town. He presented a $1,000 check to Sarah Downing, Outer Banks History Center, and Dr. Connie Brothers, Outer Banks History Center Associates as a contribution from the Town.

Ms. Downing and Dr. Brothers thanked the Board on behalf of the Outer Banks History Center.

PRESENTATION OF FIRE PREVENTION WEEK PROCLAMATION

Mayor Muller read the Fire Prevention Week proclamation and presented it to Assistant Fire Chief Butch Osborne. The proclamation read in part as follows:

“Whereas, Fire kills 3,500 to 4,000 people in the United States each year and 80 to 85% of all fire deaths occur in the home; AND

‘ Whereas, Taking simple safety precautions, such as identifying and removing everyday home fire hazards, can help prevent the majority of home fires and home fire deaths; AND

‘ Whereas, Proper installation, testing, maintenance of smoke alarms are part of a system of fire protection; AND

‘ Whereas, Developing a home fire escape plan, with two ways out of each room and an outside meeting place, and practicing it twice a year with every member of the household, are critical to escaping a fire safely; AND

‘Whereas, The nonprofit NFPA (National Fire Protection Association) has been the official sponsor of Fire Prevention Week for 80 years, the 2002 Fire Prevention Week theme, “Team Up for Fire Safety”, motivates children and families to work together to conduct a home hazard hunt, develop and practice a home fire escape plan, and install and test smoke alarms; AND

‘Whereas, NFPA dedicates “Team Up for Fire Safety” to the hundreds of firefighters who so valiantly gave their lives to save others in 2001, especially on September 11; AND

3 DRAFT Nags Head Board Meeting Minutes October 2, 2002 ‘ Whereas, The fire service of Nags Head is committed to the safety of life and property from the devastating effects of fire; AND

‘Whereas, The members of the fire service are joined by other concerned citizens of Nags Head as well as other emergency service providers and safety advocates, businesses, schools, service clubs, and organizations in their fire safety efforts.

‘Therefore I, Robert W. Muller, Mayor of Nags Head, do hereby proclaim the week of October 6-12, 2002, as Fire Prevention Week. This week commemorates the Great Chicago Fire of 1871, which killed more than 250 persons, left 100,000 homeless and destroyed more than 17,400 buildings, and serves as the motivating force to bring the people of Nags Head together to build a safer community.

‘ In recognition of Fire Prevention Week the Nags Head Fire Rescue Division will host an “Open House” at Fire Station 16 on Monday, October 7, 2002, from 5:00 PM to 8:00 PM. The public is invited and encouraged to attend this “Open House”.

‘I call upon the people of Nags Head to “Team Up for Fire Safety” by participating in fire prevention activities at home, work and school, and taking the steps needed to make their homes and families safe from fire.

‘In witness hereof, I hereunto set my hand this 2nd day of October, the year of two thousand and two.”

RECOGNITION OF EMPLOYEES WITH YEARS OF SERVICE

On behalf of the Board, Mayor Muller recognized Jim Northrup, MIS Coordinator, for three (3) years of service with the town and presented Mr. Northrup with the Town emblem engraved on a Cross pen.

MOTION: Mayor Pro Tem Farah made a motion to approve the Certificate of Recognition for Fran Crutchfield, Administrative Services Cashier/Receptionist, for five H years of service with the town. The motion was seconded by Comr. Remaley which passed unanimously.

COMR. MURRAY – THANK YOU TO CHUCK THOMPSON

Comr. Murray thanked Chuck Thompson for all his participation in town events and said that Mr. Thompson has brought a lot of good ideas to the Town which were appreciated.

CONSENT AGENDA

The Consent Agenda consisted of the following items:

- Consideration of Budget Adjustment #4 to FY 02/03 Budget - Pond Island Street Assessment Report - Ratification of revocation of limitation of use of real property for Nags Head Pond – Twiford property – Town recreation site - Request for PUBLIC HEARING to consider proposed amendments to the Town Code pertaining to development standards for residential dwellings 4 DRAFT Nags Head Board Meeting Minutes October 2, 2002

MOTION: Comr. Remaley made a motion to approve the Consent Agenda as presented. The motion was seconded by Mayor Pro Tem Farah which passed unanimously.

A copy of budget adjustment #4, as adopted, is attached to and made a part of these minutes as shown in Addendum “A”.

The Pond Island Street Assessment Report, as approved, read in part as follows:

“The fourth annual installment of the Pond Island Street Assessment was due on September 1, 2002. As of September 20, 2002, 2 out of 3 owners have paid their annual assessment in full.

‘ Original bills were mailed out on August 1, 2002 and on September 3, 2002 delinquent letters were mailed to all owners who had not made their payments by the due date. They were advised that a list of taxpayers with outstanding accounts would be presented to the Board of Commissioners at the October 2nd meeting with staff's recommendation of pursuing enforced collection measures.

‘ As of September 20, 2002 the following taxpayers have not paid the 2002 Pond Island Street Assessment that was due on September 1, 2002:

‘Andres & Barbara DelVillar – Lot 33 Sec 1, Pond Island Lot 13 Sec 1, Pond Island

‘North Carolina General Statute 160A-233 reads as follows: "(b) if any installment on an assessment is not paid on or before the due date, all of the installments remaining unpaid shall immediately become due and payable, unless the council waives acceleration and permits the property owner to pay all installments in arrears together with interest due thereon and the cost to the city of attempting to obtain payment. If this is done, the remaining installments shall be reinstated so that they fall due as if there had been no default. Waiver of acceleration and reinstatement of future installments may be done at any time before foreclosure proceedings have been instituted.

(c) Assessment liens may be foreclosed under any procedure prescribed by law for the foreclosure of property tax liens, except that lien sales and lien sale certificates shall not be required, and foreclosure may be begun at any time after 30 days after the due date.

The city shall not be entitled to a deficiency judgment in an action to foreclose an assessment lien. The lien of special assessments shall be inferior to all prior and subsequent liens for state, local, federal taxes, and superior to all other liens."

5 DRAFT Nags Head Board Meeting Minutes October 2, 2002 ‘At this time, staff's recommendation is that we initiate acceleration on all accounts that have failed to pay their 2002 assessment bill as of October 30th. This means that the aforementioned taxpayers would then have to pay the full amount of the assessment outstanding plus interest or be faced with enforced collection measures such as foreclosure. With your approval, staff will be sending certified letters to the affected property owners this month.”

The declaration revoking the limitation of use of real property for Nags Head Pond, as adopted, read in part as follows:

“ THIS REVOCATION OF DECLARATION AND NOTIFICATION OF LIMITATION OF USE OF REAL PROPERTY made this the _____ day of October, 2002 by the TOWN OF NAGS HEAD, a North Carolina Municipal Corporation, hereinafter the “Declarant”;

W I T N E S S E T H :

‘ WHEREAS, Declarant acquired the lands hereinafter described, utilizing a grant from the State of North Carolina from the North Carolina Parks and Recreation Trust Fund (PARTF) and pursuant to the requirement of the grant recorded a Notification of Limitation of Use; and

‘WHEREAS, Declarant determined that the lands hereinafter described were not appropriate for public recreational uses contemplated at the time such lands were acquired utilizing a grant from PARTF and in accordance with the PARTF grant agreement Declarant withdrew its PARTF grant and reimbursed the State of North Carolina in an amount equivalent to the PARTF grant, all as more particularly set forth in Attachment B hereto; and

‘ WHEREAS, by satisfying its obligation with the State of North Carolina there is no longer the requirement or need to restrict use of the lands hereinafter described.

‘NOW, THEREFORE, Declarant does affirmatively state and declare that the Notification of Limitation of Use of Real Property recorded in Book 1379 at Page 461 of the Dare County Public Registry is hereby revoked and declared null and void as to the property described in Attachment A hereto.

‘IN TESTIMONY WHEREOF the Town of Nags Head has caused this instrument to be executed in its name and behalf by its Mayor, attested by its Town Clerk and its corporate municipal seal affixed hereto, all as the act and deed of the Town of Nags Head.”

PUBLIC HEARINGS

PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO SECTION 22-153 DEFINITIONS OF SPECIFIC WORDS AND TERMS , SECTION 22-251 OFF-STREET PARKING AND LOADING REQUIREMENTS , SECTION 22-303 R-2 MEDIUM DENSITY RESIDENTIAL DISTRICT , AND SECTION 22-307 C-2 GENERAL COMMERCIAL DISTRICT OF THE TOWN CODE TO ALLOW OUTDOOR AQUATICS FACILITIES, SKATE PARK FACILITIES AND CHILD DAY CARE FACILITY AS CONDITIONAL USES IN CONJUNCTION WITH NONPROFIT/OUTREACH CENTERS

Deputy Planning Director Bruce Bortz summarized the Planning Board and Planning and Development memo dated September 20, 2002, which read in part as follows: 6 DRAFT Nags Head Board Meeting Minutes October 2, 2002

“Albemarle Engineering, on behalf of the Outer Banks Family Branch YMCA of South Hampton Roads, has submitted zoning requests to add the terms Outdoor Aquatics Facility and Skate Park Facility, and parking standards for those uses. The applicant is also requesting ordinance amendments that would allow Outdoor Aquatics Facility and Child Day Care Center as conditional uses in the R-2 Medium Density Residential District, as well as a zoning amendment to the C-2 General Commercial District that would allow Skate Park Facilities as a conditional use in the C-2 General Commercial District.

‘The YMCA has expressed an interest in adding an outdoor pool and skate park facility to their site. This request would, if approved, allow the YMCA to submit a site plan incorporating those uses for approval.

‘All of the uses mentioned above (Outdoor Aquatics Facility, Skate Park Facility and Child Day Care Center) are proposed to be uses associated with a nonprofit/outreach center with a indoor aquatic fitness facility. As defined in Section 22-153 a nonprofit/outreach center with a indoor aquatic fitness facility is A building that is occupied and used exclusively as an aquatic fitness center providing social and/or recreational programs, wellness center, health fitness programs, and child and youth services but which does not provide over night accommodations; and is owned and operated by a nonprofit entity that is exempt under Section 501(c)(3) or 501(c)(7) of the Internal Revenue Code. This definition specifically excludes halfway houses(s).

‘The YMCA was approved on November 1, 2000 as a nonprofit/outreach center with a indoor aquatic fitness facility. Staff has reviewed the attached ordinance and recommends approval of all sections except for Part II, Off Street Parking. Staff has observed on several occasions that the existing parking at the YMCA has not been adequate to accommodate the needs generated by the facility now. Staff feels that a 50 percent reduction in the required parking for an Outdoor Aquatics Facility and Skate Park Facility would only exacerbate some of the parking problems observed since the YMCA opened in November 2001. It is staff’s recommendation that the request as presented for parking would be adequate if the 50 percent provision was removed from each parking standard. Reduction in parking is currently addressed in Section 22-251 (2). This section of the zoning ordinance may allow (with Board of Commissioners approval) a reduction in the required number of spaces ranging from fifteen (15) percent to thirty-five (35) percent reduction in parking when a new use added to the site. The percent reduction is based upon the number of existing parking spaces.

‘ Planning Board. The Planning Board met on August 20, 2002 and discussed the proposal. At that meeting the applicant agreed to drop their 50 percent reduction in parking request and to revise their proposal to reflect the parking reduction schedule in Section 22-251 (2). (The Ordinance has been reflected to incorporate that change.) The Planning Board voted 5-to-0 to recommend approval of the proposed ordinance as amended deleting the 50 percent parking reduction.

‘Planning Board and Staff recommendation: Planning Board and Staff recommends approval of the amendments as modified reflecting the deletion of the 50 percent reduction in parking for Outdoor Aquatic Facility and Skate Park Facility. Please find attached the ordinance and the applicant’s application request.”

Notice of the public hearing was published in the Coastland Times on Thursday September 19, 2002, and on Thursday, September 26, 2002, as required by law.

Mayor Muller announced the public hearing open at 9:30 a.m.

7 DRAFT Nags Head Board Meeting Minutes October 2, 2002 There being no one present who wished to speak, Mayor Muller announced the public hearing closed at 9:30 a.m.

Mayor Muller confirmed with Mr. Bortz that the proposed ordinance spans two (2) zoning districts. Mayor Muller said that he believes the Town would be better served to allow this use in the C-2 District only as the intent is to limit the number of sites for these types of uses. Mayor Muller directed staff to bring back for Board review a proposed ordinance that limits these uses to the C-2 District.

MOTION: Mayor Pro Tem Farah made a motion to adopt the ordinance concerning nonprofit/outreach centers as presented. The motion was seconded by Comr. Remaley which passed unanimously.

The ordinance concerning nonprofit/outreach centers, as adopted, is attached to and made a part of these minutes as shown in Addendum “B”.

APPROVAL OF MINUTES

MOTION: Comr. Remaley made a motion to approve the September 4, 2002, Regular Session and the September 18, 2002, Adjourned Regular Session minutes as presented. The motion was seconded by Mayor Pro Tem Farah which passed unanimously.

OLD BUSINESS/ITEMS TABLED FROM PREVIOUS MEETINGS

UPDATE ON BEACH NOURISHMENT PROJECT - TOWN MANAGER FULLER

Town Manager Fuller briefly summarized the backup information he provided concerning the proposed assessment methodology for the local share of the beach nourishment contribution. He based the information on the assumption that the Town will receive State and Federal monies. He said that the Beach Nourishment Sub-committee designed three (3) different benefit zones and three (3) different assessments for those zones: Zone 1 is the oceanfront area and assessment was done by linear feet; Zones 2 and 3 are assessed by land value. He noted that local government properties, i.e., beach accesses are not exempt from the assessment.

Mayor Muller suggested that Town Manager Fuller bring the following information to the October 2002, mid-month meeting for further discussion: 1) Detailed explanation of the logic, i.e., why the assessments were done the way they were done, and 2) Provide examples of how the assessments are done, i.e., how it would affect a property owner and why this is the right formula as opposed to a formula based strictly on land value.

Mayor Muller summarized his memo re: Allocation of Federal Lobbying costs which read in part as follows:

“ I would like to propose a formula to allocate the burden of the cost of lobbying the federal government for funding for beach nourishment. Nags Head agreed some time ago to pay a share of these costs. I believe that Kill Devil Hills and Kitty Hawk have made the same promise. Originally the formula was for the county to pay half the cost and the towns to split the remaining cost based on 8 DRAFT Nags Head Board Meeting Minutes October 2, 2002 the length of nourished beach in the town. This worked out to Nags Head 65%, Kill Devil Hills 30% and Kitty Hawk 5%.

‘ The County has expanded their lobbying effort to include 3 additional projects. None of these projects have direct municipal benefits. The estimated cost of these three projects is approximately equal to the cost of the beach nourishment project.

‘I suggest that the County bear the entire cost for lobbying for the 3 new projects or one half of the cost. The cost for the beach nourishment lobbying would be split using the original formula, Dare County 50% and the Towns the remainder based on project benefit in the town. The County has contracted to pay $15,00 per month or $180,000 per year. The table below shows the allocation of costs.

‘Allocation of Federal Lobbying Costs Other projects (50%) Dare County 100% $ 90,000

‘Beach Nourishment Costs (50%) County Share Dare County 50% $ 45,000

‘Municipal Share Nags Head 65% of 50% $ 29,250 Kill Devil Hills 30% of 50% $ 13,500 Kitty Hawk 5% of 50% $ 2,250

‘Total $ 180,000”

Mayor Pro Tem Farah confirmed with Mayor Muller that his formula for the proposed amounts to be shared by each Town has been provided to the other Towns for their review.

MOTION: Mayor Pro Tem Farah made a motion to approve the funding formula as presented in Mayor Muller’s memo and to authorize staff to pay that amount identified for Nags Head. The motion was seconded by Comr. Murray which passed unanimously.

Board members thanked Comr. Pitt of Kill Devil Hills who is also the chair of the Beach Nourishment Sub-committee for his leadership on the assessment formula.

UPDATE ON CUSTOMER SERVICE – DEPUTY TOWN MANAGER SOMMER

Deputy Town Manager Sommer provided an update on customer service with a brief PowerPoint presentation. She stated that response cards received last month evaluate staff and services in the good and excellent ranges. She stated that staff is currently evaluating the benefit of a mailing.

Mayor Muller confirmed with Ms. Sommer that the project will expand to other Town departments in an incremental manner by the first of the year.

9 DRAFT Nags Head Board Meeting Minutes October 2, 2002 CONSIDERATION OF TAX ADJUSTMENT REPORT – DISCUSSION OF BOARD LIABILITY - FROM SEPTEMBER 4, 2002, BOARD MEETING

Deputy Town Manager Sommer summarized her and Town Attorney Ike McRee’s memos concerning Board liability with Tax Adjustment Reports.

Deputy Town Manager Sommer’s memo dated September 24, 2002, was presented to the Board and read in part as follows:

“At the September 4, 2002 Board meeting, there was a concern raised over the responsibility imposed upon this Board by North Carolina General Statutes regarding their approval of adjustments of motor vehicle taxes. Please see the attached memo from Town Attorney Ike McRee. The memo clearly presents the position that this Board has no liability exposure for DMV tax adjustments and that exposure rests solely with the County Board of Commissioners.

‘I hope that this information will allow this Board to consider approval of the tax adjustment report as presented.”

Town Attorney Ike McRee’s memo dated October 7, 2002, was presented to the Board and read in part as follows:

“At most Board of Commissioners’ meetings you review a tax report which includes a request that the Board release or refund taxes that were erroneously imposed. Also included in the report is a statement of motor vehicle taxes released or refunded by Dare County. After reviewing the tax report the Board also acts to modify the tax levy to reflect the release or refund of taxes thereby crediting the tax collector’s annual statement with the amount released. You have asked whether the Board of Commissioners is liable for the release of motor vehicle taxes by voting to modify the tax levy to reflect motor vehicle taxes released or refunded by the county. The answer is no.

‘ Article 22A, Chapter 105 of the General Statutes of North Carolina provides that the county tax assessor shall list, appraise and assess all taxable motor vehicles for municipal taxes each year. It is the county tax assessor that is charged with collection of motor vehicle taxes. A taxpayer that disputes the value, and tax assessed, or situs of a motor vehicle must file a challenge with the county tax assessor. Depending on the amount of tax requested for release or refund, the county tax assessor or county board of commissioners authorizes release or refund of the challenged tax. A town’s governing board does not have a role in determining whether a motor vehicle tax is released or refunded.

‘ N. C. Gen. Stat. §105-380 provides that any tax released or refunded in violation of law may be recovered from the governing board members who voted to release or refund the tax. Because any action taken to release or refund motor vehicle tax is by vote of the Dare County Board of Commissioners, the Nags Head Board of Commissioners cannot be held liable for the improper release or refund of a motor vehicle tax. The only action taken by the Nags Head Board of Commissioners relative to motor vehicle taxes is the appropriate modification of the tax levy to reflect motor vehicle tax refunds or releases granted by Dare County.”

Ms. Sommer stated that Nags Head is the only town that does its own tax collection; all other towns employ Dare County to collect their taxes.

10 DRAFT Nags Head Board Meeting Minutes October 2, 2002 Comr. Sadler thanked Ms. Sommer and Mr. McRee for their informative responses to her inquiries about the possible liability issues for Board members.

MOTION: Comr. Murray made a motion to approve the Tax Adjustment Report as presented. The motion was seconded by Comr. Sadler which passed unanimously.

A copy of the Tax Adjustment Report, as approved, is attached to and made a part of these minutes as shown in Addendum “C”.

DISCUSSION OF USE OF FORMER OUTER BANKS MEDICAL CENTER (OBMC) BUILDING – FROM AUGUST 7, 2002, BOARD MEETING

Mayor Muller provided background information concerning the former Outer Banks Medical Center (OBMC) building which was returned to Town ownership after it stopped being used as a medical center. He also noted that The Nature Conservancy was not pursuing the use of the building. He would like to task staff with costing out various ideas.

Comr. Remaley suggested utilizing the building for ocean rescue offices and in the summertime as a dormitory for lifeguards.

Comr. Murray and Comr. Sadler spoke favorably about utilizing the building and adjacent area as a Town cemetery.

Town Manager Fuller explained that there are significant areas of the building that need to be repaired such as the roof; he said that Public Works has been directed to develop a proposal to address the maintenance issues through the CIP process.

It was Board consensus to direct staff to research requirements/cost estimates for the use of the former OBMC building for lifeguard dormitories to include two (2) offices and a 10’ X 20’ Board Room and to gather requirements/cost estimates for the use of the former OBMC building and land as a cemetery/mausoleum.

REPORTS AND RECOMMENDATIONS FROM THE PLANNING BOARD AND THE PLANNING AND DEVELOPMENT DIRECTOR

REVIEW OF REQUEST FOR EXTENSION OF PRELIMINARY PLAT FOR WHALEBONE LUXURY OCEANFRONT SUBDIVISION

Zoning Administrator Courtney Gallop summarized the Planning Board and Planning and Development staff memo dated September 24, 2002, which read in part as follows:

“PROJECT LOCATION: Jennette’s Pier at Whalebone Junction ZONING: C-R- Commercial Residential District LAND USE CLASSIFICATION: D-1 Developed PROJECT DESCRIPTION:

‘Neil Carignan representing DEA Properties has filed the attached request to extend the approval of the above referenced preliminary plat of subdivision. The attached subdivision originally received 11 DRAFT Nags Head Board Meeting Minutes October 2, 2002 approval from the Board of Commissioners at their meeting on September 5, 2001. Section 18-92 (a) of the Subdivision Ordinance requires the subdivider to commence construction of improvements within one (1) year of approval of the preliminary plat. The one-year deadline to commence construction on the seven (7)-lot subdivision lapsed on September 5, 2002.

‘There have been no changes to the Zoning Ordinance, Subdivision Ordinance, or Drainage Ordinance that would affect this subdivision since Board of Commissioners approved it on September 5, 2001.

‘Planning Board Recommendation: At their regular session on September, 17, 2002 each of the Planning Board members voted to grant the requested preliminary plan extension.

‘Staff Recommendation: The Planning and Development Staff recommend that the Board of Commissioners grant the applicant’s request to extend the approval of the Whalebone Luxury Oceanfront Subdivision as submitted.”

MOTION: Comr. Sadler made a motion to approve the extension of the preliminary plat for the Whalebone Luxury Oceanfront Subdivision as presented. The motion was seconded by Comr. Murray which passed unanimously.

REVIEW OF PRELIMINARY SUBDIVISION PLAT FOR ELLIOTT ESTATES, PHASE IV

“PROJECT LOCATION: Southwest corner of Mall Drive and NC 12 PROJECT ZONING: SPD-C Village Commercial 2

‘Seaboard Surveying, on behalf of Robert and Shirley Weeks, is requesting preliminary plat approval for the subdivision of their 92,775 square foot commercial lot into six g designated Single-Family 2 (SF #2) residential lots with a remainder commercial lot.. The property is located in the SPD-C district and is currently designated Village Commercial 2. The subject property is located at the southern corner of the Mall Drive and NC 12 intersection and is the site of the Village Playhouse facility.

‘The proposed lots comply with the minimum lot area and width prescribed by the Zoning Ordinance. However the six proposed lots are smaller than the existing Elliott Estates residential lots. The average lot area of the existing Elliott Estates residential lots is 9,000 square feet. All but one of the proposed Elliott Estates lots is 7,370 square feet in area. The existing Elliott Estates lots also have an average frontage width of 68 feet, while the proposed Elliott Estates lots have an average frontage width of approximately 52 feet.

‘Planning Board Recommendation: The Planning Board considered the attached preliminary subdivision plat at their regular meeting of September 17, 2002. The Planning Board members discussed staff’s concerns that the proposed lots are inconsistent with the larger, existing Elliott Estates residential lots which would all share the same SF #2 designation.. The Planning Board members however, felt that the proposed lots are acceptable as presented because they exceed the 3,000 square foot minimum lot size required by the zoning ordinance within the SF #2 designation. Each Planning Board member voted to recommend approval of the preliminary subdivision plat with the proposed redesignation of the lots to SF #2 residential. 12 DRAFT Nags Head Board Meeting Minutes October 2, 2002

‘Staff Recommendation: Planning staff has reviewed the attached, proposed subdivision plat. Staff finds that:

‘1) the proposed redesignation of the property to SF #2 as shown on the proposed subdivision plat is inconsistent with the lot size, width, and density of the adjoining residential development in Elliott Estates and

‘2) the preservation of commercially designated properties in the Village - especially those adjoining the proposed Hotel Parcel, is a desirable zoning pattern and plan.

‘ Therefore, staff recommends denial of the requested zoning redesignation of the property and accompanying subdivision plat. Should the Board approve the redesignation of the property from the Commercial 2 District to Single-Family 2 (SF #2) District as requested, the proposed six g lot subdivision of the property would satisfy minimum SF #2 dimensional requirements and subdivision regulations and the plat could be approved as presented. Should the Board deny the requested redesignation of the property, the proposed six g lot subdivision of the property could not be approved as presented due to the circumstance that not all of the proposed lots would meet the minimum dimensional requirements for Commercial 2 District lots.”

Planning Director Tim Wilson explained that if the Board approves the designation of the parcel from commercial to residential, the lots would meet ordinance standards and could be approved as presented. However, if the Board does not approve the designation change, the lots would not meet the setback requirements for commercial zoning.

Comr. Remaley noted that Elliott Estates is located across from the lots that were changed by the Board from commercial to residential.

Comr. Murray said that he feels the Board needs to consider the long term effect of the request; this area should remain commercial as this is the central town business district.

Comr. Sadler said that in preparation she reviewed the original master plan for the Village; she does not want to redesignate the property from commercial to residential.

Mayor Muller said that he has seen the loss of a lot of commercial property i.e., hotels/motels, etc. and he does not feel the redesignation would serve the town well.

Mayor Pro Tem Farah said that one of the values of the Large Structure Committee is to not see large buildings on small lots; he also feels that the large structures are taking away from incentives for hotel/motel development.

Comr. Remaley said that he did not agree with the rest of the Board on this issue; he agrees with the Planning Board to grant the redesignation of property as requested.

Mayor Muller explained that the first issue to be considered by the Board is the redesignation of zoning for the parcel from commercial to residential.

MOTION: Comr. Sadler made a motion to deny the request to redesignate the Village Playhouse parcels to the SF2 zoning designation. The motion was seconded by Comr. Murray.

13 DRAFT Nags Head Board Meeting Minutes October 2, 2002 Bill Owen said that the Board has always said they wanted the town to be a family beach yet that does not seem to be the case.

Mr. Weeks, Village Playhouse owner, stated that his business has been for sale for two (2) years with no buyers; if he turns it into residential property he has buyers; there are no buyers for anything commercial in the town.

Comr. Sadler said that there are a lot of new residential properties in Nags Head and most are not year-round and most are in the rental programs; Nags Head has always been and she hopes it always will be known as a family beach. The market changes periodically and this area was designated commercial for a reason and just because the market dictates to go the other way at this time is not reason enough to approve the redesignation.

CONTINUATION OF MOTION: The motion passed 4 – 1 with Comr. Remaley casting the NO vote.

MOTION: Comr. Murray made a motion to deny the Elliott Estates Subdivision Phase IV as it is non- conforming. The motion was seconded by Comr. Murray which passed 4 – 1 with Comr. Remaley casting the NO vote.

REVIEW OF SITE PLAN FOR EASTERN NC CARDIOVASCULAR OFFICE, 4923 SOUTH CROATAN HIGHWAY (JUST SOUTH OF THE OUTER BANKS CENTER FOR WOMEN)

“PROJECT LOCATION: 4923 South Croatan Highway ZONING: SPD-C Village Hotel District LAND USE CLASSIFICATION: D-1 Developed

‘PROJECT DESCRIPTION: Seaboard Surveying and Planning, representing Offshore Properties, LLC has submitted the attached site plan application for the construction of a two-story office building. The proposed office building would house a doctor’s office with two practitioners on the first floor, and a general office on the second floor.

‘The building would be located on Lot 27 of the Small Hotel Parcel. The subject property is 22,416 square feet in area and is located south of the Outer Banks Steakhouse, between NC 12 and US 158, adjacent to the north wing of the Outer Banks Mall.

‘The subject site is already improved with drainage appurtenances, access aisles, and parking. The Town Engineer has approved the applicants plans for loading, site ingress, egress, and internal circulation. Also, the Town Engineer has determined that the comprehensive stormwater management capacity approved under the Outbreaks Steakhouse and Outer Banks Women’s Clinic site plans is adequate to accommodate the projected drainage from the proposed development. The existing drainage and access easements would need to be modified to include the proposed office development, if approved.

‘Also, given the amount of time that has passed since the drainage appurtenances where originally constructed, staff and the Town Engineer will require that all ditches, swales and basins serving uses 14 DRAFT Nags Head Board Meeting Minutes October 2, 2002 on the Small Hotel lots are functional, clean, and retaining their correct elevations per the original approved stormwater management plan.

‘Public Safety, Fire, and Public Works issues have been addressed. The setbacks shown on the plan comply with the zoning ordinance. Lighting as shown complies with the previously approved parking lot lighting plan. The applicant’s buffer plan table lacks complete information concerning the height of the proposed plants. This information must be provided for staff review prior to Board of Commissioners review.

‘Planning Board Recommendation: At their regular meeting of September 17, 2002 all the members of the Planning Board voted to recommend that the attached site plan amendment be approved with staff’s recommended conditions below. At the time of the preparation of this memorandum, condition one has yet to be satisfied. Staff anticipates that the applicant will demonstrate compliance with this condition prior to the Board of Commissioners’ consideration of the item at the public hearing.

‘Staff Recommendation: The Planning and Development Staff recommend approval of the Eastern North Carolina Cardiovascular Center site plan application with the following conditions:

1. Prior to issuance of the certificate of occupancy, all approved drainage appurtenances shall be installed and functioning per the approved stormwater management plan. 2. Prior to issuance of the building permit all cross easements pertaining to the shared use and maintenance of the parking lot drive aisles, speed humps, and drainage appurtenances shall be revised, reviewed by staff, approved by the Town Engineer, and recorded in the Dare County land records.”

MOTION: Comr. Remaley made a motion to approve the site plan for the cardiovascular office as presented with the following staff conditions:

1) Prior to issuance of the certificate of occupancy, all approved drainage appurtenances shall be installed and functioning per the approved stormwater management plan, and

2) Prior to issuance of the building permit all cross easements pertaining to the shared use and maintenance of the parking lot drive aisles, speed humps, and drainage appurtenances shall be revised, reviewed by staff, approved by the Town Engineer, and recorded in the Dare County land records.

The motion was seconded by Mayor Pro Tem Farah which passed unanimously.

REVIEW OF SITE PLAN FOR AN ADDITION TO THE OUTER BANKS FAMILY YMCA, 3000 SOUTH CROATAN HIGHWAY

“PROJECT LOCATION: 3000 South Croatan Highway ZONING: C-2 General Commercial/R-2 Medium Density Residential/ SED-Special Environmental District 80 15 DRAFT Nags Head Board Meeting Minutes October 2, 2002 LAND USE CLASSIFICATION: T-2 Transition

‘PROJECT DESCRIPTION: Albemarle engineering, representing YMCA of South Hampton Roads has submitted the attached site plan amendment application for the expansion of the YMCA aquatic facility with 7,376 additional square feet of floor area. If approved, the project would allow for the expansion of the weight room, and aerobics area, add two racquetball courts and expand the existing babysitting facilities.

‘ The 24,197 square foot nonprofit community outreach center with an aquatic fitness facility is a permitted use in the C-2 general commercial district. The proposed additions would be located entirely within the C-2 portion of the site. The remainder of the 418,123 square foot site, west of the YMCA building is zoned R-2 and also SED-80 (not shown). The subject property is located in the T-2 Transition land use classification where low intensity development is anticipated. This proposed use is consistent with the land use classification.

‘The building expansion will require the construction of 37 parking spaces plus the relocation of six g original parking spaces. The parking standard for the proposed use is 1 space for every 200 square feet of gross floor area. Parking as shown exceeds the minimum number of parking spaces required by the zoning ordinance. Virginia Power has submitted written consent for parking spaces 20 through 35 to encroach onto its power easement.

‘The Town engineer has approved internal site circulation and ingress and egress however the Public Safety Director has requested that the applicant consider an alternate entrance to the property that would align with Bonnet Street. The Town engineer has also approved the applicant’s stormwater management plan. Public Works, Fire, and Health Department issues have been addressed. Staff has approved the applicant’s modified lighting plan.

‘ Recently, the buffer ordinance was amended to require protective buffering between certain between commercial uses and residential districts. The applicant will satisfy the intent of the protective buffer requirement by preserving existing vegetation along the north property line, maintaining the existing north property line fence, and supplementing areas of the northern property line and elsewhere on the site with the 135 plants that should occupy the protective buffer yard.

‘Planning Board Recommendation: The Planning Board voted unanimously to recommend that the YMCA site plan amendment be approved.

‘Staff Recommendation: The Planning and Development Staff recommend approval of the YMCA expansion site plan amendment as presented.”

MOTION: Mayor Pro Tem Farah made a motion to approve the site plan for the addition to the YMCA as presented. The motion was seconded by Comr. Murray which passed unanimously.

16 DRAFT Nags Head Board Meeting Minutes October 2, 2002 REVIEW OF SITE PLAN FOR AN ADDITION TO WINDMILL POINT RESTAURANT, 6906 SOUTH CROATAN HIGHWAY

“PROJECT LOCATION: 6906 South Croatan Highway ZONING: C-2 General Commercial/Commercial Outdoor Recreational Uses Overlay District LAND USE CLASSIFICATION: D-2 Developed

‘PROJECT DESCRIPTION: Calfee Engineering, representing Dr. Sarah Forbes has submitted the attached site plan amendment application for the construction of a package sewage treatment plant on the site of the Windmill Point Restaurant. The sound-front site is located at 6906 South Croatan Highway, south of an existing water sports operation and north of the Town of Nags sound access property (formerly the Wallace Harvey Property). The existing sewage treatment plant that serves the restaurant is located off the site and will be dismantled to facilitate the redevelopment of the Soundside Pavilion site.

‘ The proposed sewage treatment plant does not comply with Section 22-259(B) (attached). This section of the zoning ordinance requires a package treatment plant to be located no further from the principal building it serves than the distance of the principal building from the nearest property line (10.5 feet in this case). On September 12, 2002 however, the Nags Head Board of Adjustment granted the applicant a variance from Section 22-259 to locate the planned sewage treatment plant as shown on the site plan. With the variance granted by the Board of Adjustment, the planned waste treatment plant complies with the requirements set forth by Section 22-259(B).

‘The proposed package treatment plant would be partially buried below the ground. The portions of the facility above ground level would be screened with a 6 foot, opaque, wood fence, and equally tall shrubs. The plant as shown complies with the applicable district setbacks and would affect lot coverage minimally. Its location will not trigger the need for a CAMA or Army Corps 404 wetland fill permits. This site plan amendment will not affect on-site existing parking, stormwater management, lighting, solid waste, or signage.

‘ Although the 2000 Land and Water Use Plan does not support the construction of new package treatment plants, staff considers this proposal a replacement system and is therefore not in conflict with the master plan.

‘ Package treatment plants are subject to regular sanitary inspections conducted by the Health Department.

‘Planning Board Recommendation: At their regular meeting of September 17, 2002 the Planning Board members discussed the proposed site plan amendment and voted unanimously to recommend it for approval. The majority of the discussion focused on the outward appearance and screening of the proposed package treatment plant.

‘Staff Recommendation: The Planning and Development Staff recommend approval of the Wind Mill Point restaurant site plan amendment with the following condition:

17 DRAFT Nags Head Board Meeting Minutes October 2, 2002 - Prior to issuance of a building permit, written Health Department approval of final system design is required.”

Mayor Muller confirmed with project engineer Ralph Calfee that the sewage treatment plant will serve the Windmill Point Restaurant only and no other sites.

MOTION: Comr. Remaley made a motion to approve the Windmill Point Restaurant site plan as presented with the following staff condition:

- Prior to issuance of a building permit, written Health Department approval of the final system design is required.

The motion was seconded by Mayor Pro Tem Farah which passed unanimously.

REVIEW OF SITE PLAN FOR OUTBACK STEAKHOUSE, 5220 SOUTH CROATAN HIGHWAY

“SUBJECT: Site Plan Application for Outback Steakhouse PROJECT LOCATION: 5220 South Croatan Highway ZONING: SPD-C Village C-1 District LAND USE CLASSIFICATION: T-1 Transitional (anticipated high-intensity development)

‘PROJECT DESCRIPTION:

‘ Quible Engineering representing Outback Steakhouse, has submitted the attached site plan application for the construction of a restaurant on a 1.1 acre lot at the northwest corner of Seachase Drive and US 158. The 225 seat dine in restaurant would be integrated into the Outer Banks Mall by sharing use of the Mall’s approved drainage capacity, district lot coverage, access aisles, and parking supply.

‘If the restaurant is developed as shown, lot coverage in the Village C-1 district will be 79.3 percent. The maximum allowed Village C-1 district lot coverage is 80 percent. This figure includes a possible future expansion of the Seamark retail store.

‘Section 22-251 D.2.(a) and (b) provides an opportunity for the applicant to reduce required parking by 35 percent based on the abundance of parking on the mall site. Staff supports this reduction for the proposed development plan. Total on-site parking for this site would be 72 spaces (62 spaces necessary to support 3363 square feet of customer service area plus 10 additional spaces to accommodate customers picking up carry-out food orders). When the required parking is reduced by 35 percent as allowed by the ordinance the, site is only required to have 47 parking spaces. The plan shows 56 parking spaces on site.

‘The Town Engineer has approved the applicants plans for loading, site ingress, egress, and internal circulation. Truck traffic serving the mall will be unchanged by this proposal. Also, the Town Engineer has determined that the stormwater management capacity approved under the Outer Banks Mall and Food Lion drainage plans is adequate to accommodate projected drainage from the subject site. Prior to issuance of a building permit, existing drainage easements, as well as parking and access 18 DRAFT Nags Head Board Meeting Minutes October 2, 2002 easements would need to be reviewed by the Town Attorney and staff to insure that they include provisions for the subject property.

‘Fire, Public Safety, and Public Works issues have been addressed. setbacks, buffers, and parking lot lighting shown on the plan comply with the zoning ordinance. Carolina Water Service, Inc. has preliminarily committed to supplying the proposed restaurant with sewage treatment services. The proposed architecture of the building will be subject to the Village Architectural Review Committee’s review and approval prior to issuance of the building permit.

‘Planning Board Recommendation: On September 17, 2002 the Planning Board members voted unanimously to recommend conditional approval of the attached site plan.

‘Staff Recommendation: The Planning and Development Staff recommend approval of the Outback Steakhouse restaurant site plan amendment with the following condition:

‘ Prior to issuance of a building permit all shared drainage, access, maintenance and parking easements and agreements shall reviewed by staff and the Town Attorney to insure that the subject property has been incorporated into these documents.”

Mayor Muller questioned the loading bay and traffic flow of the delivery trucks on the site plan.

Andy Deal, Quible and Associates, spoke representing the applicant and explained that the truck traffic will take place when the restaurant is not open for business. Mayor Muller expressed his concern that the loading bay and traffic flow is not adequate as shown.

Mayor Muller asked about the status of the grading plan for the western edge dune - most of the dune is actually on property owned by the Village Property Owners Association.

Mr. Deal explained that the site plan does not show any grading of that dune on the Village property – the parking area for the restaurant necessitates the relocating of a planned swale for stormwater drainage. He stated that he met with Village at Nags Head officials last week and requested that the swale be allowed to grade into their dune. Village officials are concerned about the retention of the amount of sand on their site and they did not grant permission to grade into their dune. Mr. Deal said that he hopes to go back and show Village officials how the dune can be reshaped yet maintain the same amount of sand material.

Wes Carter, Outer Banks Mall Manager; spoke about the truck delivery pattern; he stated that the use of the building as a restaurant is not going to change any time soon as the Outback has a long-term lease; truck traffic for the restaurant consists of short-bed trucks that supply on an immediate basis - they do not stack up for long-term usage; he does not anticipate large semi-trucks supplying the restaurant.

Mayor Muller pointed out that the Board is considering approval of a restaurant in that location and he does not feel the truck pattern as identified on the site plan will work.

Comr. Murray questioned Mr. Deal about going through the parking lot to get to the loading dock; Mr. Deal agreed that the traffic flow Comr. Murray identified was possible and was more feasible. Mayor Muller agreed that Comr. Murray’s solution would work better. 19 DRAFT Nags Head Board Meeting Minutes October 2, 2002

MOTION: Comr. Remaley made a motion to approve the Outback Steakhouse site plan with the following staff condition as presented:

Prior to the issuance of a building permit, all shared drainage, access, maintenance, and parking easements and agreements shall be reviewed by staff and the Town Attorney to insure that the subject property has been incorporated.

The motion was seconded by Comr. Sadler.

Comr. Remaley commented that he does not feel the issues that were brought up today by the Board needed to be discussed as they should have already been discussed in detail during the appropriate technical review process.

Town Manager Fuller spoke concerning the sand dune grading and said that in his opinion it would be a normal administrative change for staff to approve the grading/removing of the sand dune – unless directed otherwise by the Board. He stated further that any sand in the Village has to stay in the Village and if the Village wants to move sand they would have to meet Village sedimentation plan requirements.

Mayor Muller said that he would like to see the dune preserved if possible; he would prefer that any modification to the dune come back to the Board for approval.

Eric Harpen, Outback Steakhouse, explained that the material existing on the dune would be proposed to remain as it is – the dune would be reshaped and the dune elevation would change only slightly but there would be no major noticeable change; he is concerned about his construction schedule if he has to come back to the Board for a review of the sand dune regrading.

It was Board consensus that if the dune material remains in the area and the elevation of the dune does not change by two (2) feet, then administrative approval by staff of the dune regrading is granted, otherwise the issue is to be returned to the Board for consideration.

CONTINUATION OF MOTION: The motion passed 4 – 1 with Mayor Muller casting the NO vote.

CONSIDERATION OF OFFER FROM NAGS HEAD CONSTRUCTION, INC. TO DEDICATE THE STREETS AND UTILITIES IN SECTION IV OF SOUTHRIDGE SUBDIVISION TO THE TOWN

“PROJECT LOCATION: 19 acres west of US 158 off Vansciver Drive PROJECT ZONING: R-2 ‘PROJECT DESCRIPTION: Final subdivision plat to create 33 single-family residential lots

‘ On September 17, 2002 the Planning Board members voted unanimously to conditionally approve the final plat of the Southridge Section IV subdivision plat. The 33-lot, single family residential subdivision will be created from a 19-acre parcel of land located off of existing Vansciver Drive in the Southridge Subdivision.

20 DRAFT Nags Head Board Meeting Minutes October 2, 2002 ‘The Board of Commissioners denied the preliminary plat of subdivision on January 3, 2001. Several months ago the preliminary subdivision lay-out was approved by court order and the construction of the required infrastructure is still ongoing and not complete at the time of the preparation of this memorandum.

‘On September 17, 2002 the Planning Board voted unanimously to approve the final subdivision plat with the following conditions:

1. The execution of a 20-foot easement agreement and cash surety in the amount of 125 percent of the cost of waterline construction pending the resolution of a property dispute upon which a 20-foot waterline easement serving the proposed development is located with such terms and conditions as recommended by the Town Attorney in a memorandum to the Planning Director dated September 17, 2002; and 2. The addition of the subdivider to be listed as a principal on the required bond for road improvements.

‘ At the time of the preparation of this memorandum, the applicant has not yet demonstrated compliance with the above Planning Board conditions.

‘Final Public Works approval of the streets and water mains is also required prior to acceptance of the improvements by the Town. Also, according to Chapter 18 of the Town Code, the project engineer must submit a final engineering as-built survey plat of the subdivision and must certify that all the improvements have been constructed in substantial compliance with approved plans.

‘Nags Head Construction, Inc. the property owner, is offering all streets depicted on the Southridge Section IV final subdivision plat, fire hydrants, and water main improvements to the Town for acceptance of the offer of dedication. In accordance with Section 18-73 of the Nags Head Code of Ordinances, staff is submitting to the Board of Commissioners the applicant’s offer of dedication, the final plat application form and a resolution for the Town’s acceptance of following required subdivision improvements:

 Vansciver Drive, Tamarac Court, Sea Bass Court, Mariners Way, and Ridgeview Way each constructed to applicable Town standards  The installation of all required water taps  A water main connection into the existing Town water line  Five (5) fire hydrants

‘ The subdivider has pre-paid the cost of all 5 required streetlights. The lights will be installed by Dominion North Carolina Power when service is initially needed by the first homebuilder (see the attached letter from Virginia/North Carolina Power).”

Town Attorney Ike McRee’s memo dated September 28, 2002, read in part as follows:

“I have been asked to provide the Board with an analysis of the Board’s authority and responsibility as it relates to the final plat approval of Southridge Subdivision, Section IV and consideration of the acceptance of improvements within the subdivision.

‘Pursuant to Section 18-73 of the Code of Ordinances, the Planning Board reviews a final plat and may approve, reject or conditionally approve the final plat. If conditionally approved, Section 18- 73(b)(2) provides that the approval of the plat becomes final upon the fulfillment of the conditions. 21 DRAFT Nags Head Board Meeting Minutes October 2, 2002 As provided by Section 18-73(e) of the Code of Ordinances, the Planning Board must, when final approval is granted or conditional approval becomes final, submit to the Board the final plat and its recommendations as to acceptance or rejection of each of the improvements listed in the certificate of dedication. Section 18-73(f) of the Code of Ordinances provides that the Board shall then consider the plat, the certificate of dedication, and recommendations of the Planning Board and may accept or reject the certificate of dedication in whole, in part or as to each individual improvement. Acceptance of a particular item shall immediately vest ownership of that item in the town. If the Board rejects a required improvement (streets, waterlines, utility easements and street lights) that is offered for dedication, Section 18-94(c) of the Code of Ordinances provides that the required improvement shall revert to the subdivider except that those required improvements rejected for failure to meet construction and design standards or are substandard must be reoffered for dedication when brought up to standards. The reoffer of dedication must occur within six months or may result in bond forfeiture. Lastly, all improvements required to be dedicated to the town must be accepted by the Board before the town clerk may certify final approval on the final plat.

‘ On September 17, 2002, the Planning Board conditionally approved the final plat for Southridge Subdivision, Section IV. The conditions were:

. The final execution of a 20-foot easement agreement and cash surety in the amount of 125 percent of the cost of waterline construction pending the resolution of a property dispute upon which a 20-foot waterline easement serving the proposed development is located with such terms and conditions as recommended by the Town Attorney in a memorandum to the Planning Director dated September 17, 2002; and

. The addition of the subdivider to be listed as a principal on the required bond for road improvements.

‘It is my understanding that as of this date the conditions are not fulfilled. Unless the conditions are fulfilled prior to the Board’s meeting on October 2, 2002, the conditional approval is not final and the plat, supporting documents and certificate of dedication may not be forwarded to the Board for the Board’s acceptance or rejection of improvements listed in the certificate of dedication.

‘If the conditions of the final plat approval are fulfilled prior to October 2, 2002 then the Board will have before it the certificate of dedications and must either reject or accept, in whole or in part, those improvements that must be offered for dedicated. The Code of Ordinances does not provide for conditional acceptance of required improvements offered for dedication. As set forth above, the town clerk may not certify final approval on the final plat until the Board accepts all improvements required to be dedicated to the town.”

Mayor Muller confirmed with Public Works Director Dave Clark that the as-builts have not yet been received by staff and the cul-de-sac extension at the end of Vansciver Drive has not yet been completed.

John DeLucia, Albemarle Engineering, questioned the two (2) Planning Board conditions and asked if they can go to record with the subdivision plat with the bond in place.

Town Attorney Ike McRee explained that the Planning Board recommended approval of the final plat with conditions; until these conditions are met, there is no final approval by the Planning Board to transmit the final plat to the Board of Commissioners.

22 DRAFT Nags Head Board Meeting Minutes October 2, 2002 Mayor Muller said that the Board cannot consider acceptance of the improvements until the Planning Board conditions have been met.

Town Manager Fuller explained that the Town Clerk cannot sign the plat until the Board has approved it and the Board can’t consider the plat until the Planning Board conditions are met. Mr. McRee agreed and stated that the subdivision plat was conditionally approved by the Planning Board; he feels it is premature to consider the offer at this time.

Sonny Cobb, Southridge developer; explained that the bond has been submitted and at the last minute the Planning Board said it had to be re-posted. The bond came from out-of-state paperwork but the improvements are in place so the bond should be a moot issue. He said that the only conflict should be the waterline that runs out to the bypass; he has estimated the costs to relocate the waterline and he will post that with his attorney; he is hoping if that condition has been met and Public Works says everything is in place then that could be the end of this issue.

Mayor Muller asked staff about the improvements that have been completed. Public Works Director Dave Clark explained that as of 8:40 a.m. this morning, no work has been done on the Vansciver Driver cul-de-sac extension.

MOTION: Mayor Pro Tem Farah made a motion to table the consideration of the offer from Nags Head Construction for the dedication of the streets and utilities in Section IV of Southridge Subdivision until the October 2002, mid-month meeting. The motion was seconded by Comr. Murray which passed unanimously.

ADJOURN FOR LUNCH

Mayor Muller adjourned the meeting for lunch at 12:10 p.m. and scheduled the meeting to reconvene at 1:30 p.m.

RECONVENE FROM LUNCH

The Board reconvened from lunch at 1:30 p.m.

COMR. REMALEY EXCUSED FROM REMAINDER OF MEETING

MOTION: Mayor Pro Tem Farah made a motion to excuse Comr. Remaley from the remainder of the Board meeting due to illness. The motion was seconded by Comr. Murray which passed 4 – 0 (Comr. Remaley was absent.).

NEW BUSINESS

REPORT FROM CITIZENS ADVISORY COMMITTEE

The report from the Citizens Advisory Committee meeting of September 9, 2002, was presented to the Board and read in part as follows:

23 DRAFT Nags Head Board Meeting Minutes October 2, 2002 “REPORT ON FESTIVAL OF THANKSGIVING A report is to be provided at the October 2002, CAC meeting.

‘NAGS HEAD STYLE ARCHITECTURE AWARD FOR RESIDENTIAL HOUSES Peter Rascoe distributed and summarized with Committee members his list of 13 houses (attached) that have been built utilizing Nags Head style architecture. He presented the plaque that is to be given to the property owner(s) whose house best exemplifies Nags Head style architecture.

‘It was Committee consensus to agree with Peter Rascoe’s nomination of house #4 (Nixon Cottage) from his list. This cottage is located at 4019 South Virginia Dare Trail (SVDT). The house was one of the original houses in town and was built in 1869. It was demolished in 1999 and re-built in its original style. It was noted that the owners did not have to rebuild in the original Nags Head style. He feels that this structure and its owners should be recognized.

*** REQUEST FOR BOARD ACTION - The Committee’s nomination – Nixon Cottage at 4019 S. Virginia Dare Trail - is to be presented to the Board of Commissioners at their October 2, 2002, meeting for their concurrence/approval. ****

‘COMMUNITY APPEARANCE AWARD FOR COMMERCIAL BUSINESSES Bob Sanders began the annual Community Appearance Award process which recognizes commercial businesses that rate highly according to a list of criteria (attached).

‘CAC members are to forward their list of ten (10) nominees for Community Appearance Award to Carolyn Morris within the next two (2) weeks, by Monday, September 23, 2002.

‘UPDATE ON TOWN RECREATION SITE AND LINKING WEST SIDE NEIGHBORHOODS

‘Town Recreation Site Town Manager Fuller explained that Dare County gave a proposal to the town to consider looking at the town recreation site (behind Kelly’s Restaurant) for two (2) soccer fields and one (1) football field. He explained that the proposal from the County would require clearing almost the entire recreation site.

‘Susan Boncek stated that the County Recreation Department is waiting to hear from the town about the lighting issues at the site, i.e., is night-time lighting allowed.

‘Bob Sanders suggested that Committee members review the Twiford tract property while reviewing commercial properties in town (for the Community Appearance Award) and come back with their ideas for the recreation site.

‘Linking of West Side Neighborhoods with a multi-use path Bob Sanders displayed a map of possible ways to link the west side neighborhoods, mostly via the town’s Wellfield Road. He pointed out that some areas may cause issues, i.e., encroachment agreements may be necessary, such as at Jockey’s Ridge and Soundside Road. He asked the Committee to consider working on the path one section at a time. He suggested starting with the town park location to link a few of the neighborhoods as Phase I of the project.

‘Town Manager Fuller noted that from the town line to the YMCA there should be no major problems with private properties; he agreed with Mr. Sanders as he feels if people see a portion of the path completed and see its benefits, they may be more interested in continuing with the project.

24 DRAFT Nags Head Board Meeting Minutes October 2, 2002 *** REQUEST FOR BOARD ACTION - The Committee unanimously passed a motion to request approval from the Board of Commissioners at their October 2, 2002, meeting to pursue the west side multi-use path beginning with the town park and, if approved, to proceed to the CIP process. ***

‘MULTI-USE PATH SAFETY Chief Cameron noted two (2) accidents this past summer that involved drivers hitting bicyclists on the multi-use path. He said that there were no serious injuries but that both had the potential for a lot of serious injury.

‘ Rascoe Hunt suggested the possibility of adding a sign on the bottom of the STOP signs to tell drivers to stop at that spot, not several feet further. He also reported that there is a lot of vegetation in some areas that has grown and is blocking the driver’s view of the path. He specifically mentioned Blackman Street.

‘NC DOT LANDSCAPE ENHANCEMENT PROGRAM Town Manager Fuller reported that the town is meeting with NC DOT who has 100% funding for a landscape project in two (2) areas of town - from the town line south to Driftwood Street, and from the Outer Banks Hospital to S. Seachase Drive – on both sides of the bypass. Town Manager Fuller noted that maintenance of the landscaped vegetation would be the responsibility of the town after three (3) years.

‘CAMILLE LAWRENCE Camille Lawrence thanked Public Safety staff for their very professional job in evacuating a specific area of the Beach Road because of a propane gas tank leak at the Blue Heron Motel last week. She said that staff was very kind during their dealings and she wanted to publicly commend the department.

‘PETER RASCOE Peter Rascoe thanked staff, especially Rhonda Sommer, for help in locating funding for the town architecture award plaques.”

- Request for Board approval of residential Nags Head Style architecture award winner - Request for Board approval of process to link west side neighborhoods with path

MOTION: Comr. Murray made a motion to approve the selection of the Nixon Cottage located at 4019 SVDT for the residential Nags Head style architecture award winner as recommended by the Committee. The motion was seconded by Comr. Sadler which passed 4 – 0 (Comr. Remaley was excused.).

It was Board consensus to schedule for the mid-month October 2002, Board meeting the process of linking the west side neighborhoods with a multi-use path.

REPORT FROM ARTWORK SELECTION COMMITTEE

The report from the Artwork Selection Committee meeting of September 11, 2002, was presented to the Board and read in part as follows:

“DISCUSSION OF BOARD MEETING ON SEPTEMBER 4TH

25 DRAFT Nags Head Board Meeting Minutes October 2, 2002 Majid Elbers summarized her discussion with the Board at their September 4, 2002, meeting. She told the Committee that funding issues with the State and revenue shortfalls mean no artwork funds this year.

‘DISCUSSION OF COMMITTEE ATTENDANCE AND MEETING FORMAT The Committee unanimously passed a motion that a Committee member who misses three (3) consecutive meetings, unless the member has received prior approval from the Chair, is relieved of their duties as a Committee member.

*** REQUEST FOR BOARD ACTION - Request Board approval of above Attendance Policy. ***

‘CONSIDERATION OF PHOTOGRAPHY BY DREW WILSON It was Committee consensus to purchase Drew Wilson’s sand skateboarder photograph for the price of $200 if satisfactory answers are received concerning the preservation of the photograph.

‘ROBIN YORK’S VISIT TO TOWN HALL Majid Elbers reported that Dare County teacher Robin York has scheduled to bring three (3) of her classes to the town to view the town’s comprehensive art collection. The class visits are scheduled for 10:00 a.m., 11:00 a.m. and 1:45 p.m. on Wednesday, September 18, 2002. Committee members said they would check their schedules and get back to Ms. Elbers.

‘ARTWORK SCHEDULED FOR REVIEW Majid Elbers and Carolyn Morris are to meet to determine what artist will be reviewed next month.

‘ORDINANCE AMENDMENTS Kim Allen volunteered to prepare the Artwork Selection Committee’s ordinance amendment incorporating the comments made earlier in the meeting concerning attendance policy.”

Request for Board approval of attendance policy/artwork ordinance amendment

Mayor Muller stated that implementation of the attendance policy should not begin until all members are notified.

MOTION: Comr. Murray made a motion to approve the attendance policy for the Artwork Selection Committee as presented. The motion was seconded by Comr. Sadler which passed 4 – 0 (Comr. Remaley was excused.).

Comr. Sadler said that she hoped other teachers would take the same opportunity as teacher Robin York did who gave her classes a tour of the Town Hall artwork recently. Town Manager Fuller stated that he would work with the Artwork Selection Committee to issue an invitation to all the local schools to tour the Town’s artwork collection.

SAFETY PROGRAM UPDATE – KEVIN ZORC, FIRE MARSHAL

Town Fire Marshal Kevin Zorc presented a PowerPoint presentation update on the Town Safety Program. He introduced the members of the Town Safety Committee: Public Works - Bruce Pollay and John Richeson; Fire Division - Kevin Zorc, Steve Kovacs, and Norma Hood; Police Division - Tom Gilliam; Planning and main Town Hall building - David Morton and Carole Lewallen. Mr. Zorc also

26 DRAFT Nags Head Board Meeting Minutes October 2, 2002 initiated a fire drill during the Board meeting which he noted, afterwards, was completed in a very timely manner.

Mayor Muller thanked all Committee members for their participation and efforts toward town safety.

Mayor Pro Tem Muller commended town staff for working so well with the OSHA organization. Board members thanked Fire Marshal Zorc for all his efforts.

REPORT FROM AUDITORS

Deputy Town Manager Sommer introduced Town auditors Teresa Pickrel and Anna McGinnis from the firm of Pickrel, McGinnis, and Dowdy.

Anna McGinnis summarized the audit procedures and the final report. She commended the town for their fiscal responsibility.

Mayor Muller noted the letters provided by the auditors; one of the letters provides a couple of findings/recommendations. Ms. Pickrel noted that the findings do not have a material effect on the financial statements – they are suggested to strengthen the controls.

The Board thanked town staff for their assistance and the auditors for their report.

Ms. Sommer noted that the Dare County Board of Commissioners has on an upcoming agenda a resolution for a ½ cent tax increase for consideration; she explained these funds are to offset funds not received from the State.

Mayor Muller asked Board members for their support in endorsing the Dare County ½ cent tax resolution.

MOTION: Mayor Pro Tem Farah made a motion to authorize Mayor Muller to prepare a resolution in support of implementation of the ½ cent Sales and Use Tax by the Dare County Board of Commissioners. The motion was seconded by Comr. Sadler which passed 4 – 0 (Comr. Remaley was excused.).

The resolution in support of the Sales and Use Tax, as adopted, read in part as follows:

“ RESOLUTION IN SUPPORT OF THE DARE COUNTY LEVY OF THE THIRD ONE-HALF CENT LOCAL GOVERNMENT SALES AND USE TAX

‘ WHEREAS, the Town of Nags Head is required by the State of North Carolina to operate and maintain a balanced budget and a sufficient fund balance to function in a fiscally sound manner and to have adequate reserves in case of emergencies; AND

‘WHEREAS, adequate municipal revenue sources are required for the Board of Commissioners of the Town of Nags Head to carry out the responsibilities of providing for the health, safety and well being of the citizens of this community by providing necessary services; AND

‘WHEREAS, the Town of Nags Head has lost funds previously made available by the State of North Carolina to replace revenues lost because of legislative action; AND

27 DRAFT Nags Head Board Meeting Minutes October 2, 2002 ‘ WHEREAS, the North Carolina General Assembly has authorized the Dare County Board of Commissioners to levy a one-half percent (1/2%) local sales and use tax to Dare County and its municipalities through NCGS 105-517(b) in Section 34.14(a) of Session Law 2001-424, as amended by Session Law 2002-123 entitled “An Act to Accelerate the Additional One-half Cent (1/2 cent) Local Option Sales and Use Tax and to Make Conforming and Technical Changes”.

‘NOW, THEREFORE, BE IT RESOLVED, THAT the Board of Commissioners of the Town of Nags Head, meeting in regular session on October 2, 2002, voted to strongly support and endorse the proposed Dare County Board of Commissioners resolution levying the third one-half cent local government Sales and Use Tax within Dare County and distributed as prescribed by NCGS 105-520.”

TOWN MANAGER FULLER – WATER FLOW TEST UPDATE

Town Manager Fuller reported that the results of the water flow test in South Nags Head at the National Park Service will be provided to the Board at the November 2002, Board meeting.

Assistant Fire Chief Osborne provided a summary of the water flow test. He explained that Fire Marshal Kevin Zorc and Water Supervisor Mark Cross met with a representative from the Park Service fire protection specialist and performed water flow testing in various areas of the Park. The results were as expected - minimal water flow was available, especially near the Oregon Inlet Fishing Center and the Bodie Island Lighthouse where water flow was insufficient to provide protection to these facilities. He explained that a new and larger water line is needed to correct this problem.

Town Manager Fuller explained that town staff will be meeting with the Park Service concerning these results.

TOWN MANAGER FULLER - PRESENTATION OF FY 2001/2002 ANNUAL REPORT

Town Manager Fuller provided a PowerPoint presentation summarizing for Board members the annual report which he explained reports on the Town’s activities from July 1, 2001, through June 30, 2002. His presentation was well received by the Board.

Mayor Muller noted the narrative portion of the annual report is provided in the Board packages.

Board members thanked Town Manager Fuller for his presentation.

A copy of the narrative annual report is on file in the Town Clerk’s office.

TOWN MANAGER FULLER – REQUEST FOR CLOSED SESSION

Town Manager Fuller requested a Closed Session to discuss a personnel issue.

MAYOR MULLER - REPORT ON SEPTEMBER 4, 2002, CLOSED SESSION ACTIONS

Mayor Muller reported that two issues concerning real property acquisition were discussed in Closed Session at the September 4, 2002, Board meeting and the minutes of both will be released when appropriate. 28 DRAFT Nags Head Board Meeting Minutes October 2, 2002

MAYOR MULLER - SET BOARD RETREAT DATE FOR JANUARY 2003

Mayor Muller discussed with Board members a date for a one-day Board retreat in January 2003.

It was Board consensus that the one-day Board retreat be scheduled for 8:30 a.m. on Wednesday, January 22, 2003, with a rain date of Wednesday, January 29, 2003.

MAYOR MULLER – REP. CULPEPPER

Mayor Muller said that Rep. Culpepper was unable to meet with the Board today as he is still in Raleigh; he will talk with Rep. Culpepper about meeting with Board members in the near future.

MAYOR MULLER – REVIEW OF FACILITY FEES

Mayor Muller confirmed that he would be meeting with Deputy Town Manager Rhonda Sommer to review the facility fee process and service levels to see if any changes are necessary. Recommendations will be forwarded to the Board for review after the first of 2003.

MAYOR MULLER – REQUEST FOR CLOSED SESSION

Mayor Muller requested a Closed Session to discuss the acquisitions of two (2) pieces of real property.

MAYOR PRO TEM FARAH – CONSIDERATION OF REQUEST FROM TOWN OF KITTY HAWK

Mayor Pro Tem Farah summarized the request from the Town of Kitty Hawk to become a participating member of the Government Access Channel Committee. The Town of Kitty Hawk forwarded appropriate correspondence requesting to be a participating community of the Government Access Channel (GAC) as listed in the Agreement for Shared Use of the Government Access (GAC) Channel.

The proposed resolution was presented for Board review and adoption.

MOTION: Comr. Murray made a motion to adopt the resolution approving the Town of Kitty Hawk as a participating member of the Government Access Channel Committee as presented. The motion was seconded by Comr. Sadler which passed 4 – 0 (Comr. Remaley was excused.).

The resolution approving the Town of Kitty Hawk as a participating member of the GAC, as adopted, read in part as follows:

“WHEREAS, the towns of Nags Head, Kill Devil Hills, Manteo, and Southern Shores, and Dare County have signed an agreement to cooperate in the operation and use of the Government Access Channel on the terms and conditions set forth in the Interlocal Shared Use Agreement dated March 19, 2001; AND

29 DRAFT Nags Head Board Meeting Minutes October 2, 2002 ‘WHEREAS, the Shared Use Agreement provides that the Town of Kitty Hawk shall be permitted to become a Participating Community in the agreement on such terms and conditions as negotiated by the parties; AND

‘ WHEREAS, a request has been received from the Town of Kitty Hawk to become a participating member of the Government Access Channel Committee.

‘NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Town of Nags Head hereby authorizes the Town of Kitty Hawk to become a participating member of the Government Access Channel Committee.”

COMR. MURRAY – THANK YOU LETTER

Comr. Murray suggested that a thank-you letter be forwarded to Enviro Tech Company who sponsored the environmental workshop last month at the Ramada Inn which focused on municipalities and the treatment of wastewater systems.

COMR. MURRAY – GEORGE ANSELL ISSUE WITH CHARTER CABLE

Comr. Murray confirmed with Town Manager Fuller that the problem with Charter Cable that resident George Ansell had has been resolved. Town Manager Fuller stated that he met with the Charter Cable General Manager who subsequently made arrangements with Mr. Ansell’s adjoining property owner who agreed to allow the cable that was buried on Mr. Ansell’s property moved to his own property.

COMR. MURRAY – NO PARKING SIGNAGE

Comr. Murray made a suggestion that the Committee working on the “No parking – tow away” signs in the Town may want to consider the painting of signs on the roadway as a way to reduce/eliminate signage.

COMR. SADLER – THANK YOU TO DON BAILEY

Comr. Sadler thanked Don Bailey for his comments during Audience Response today thanking Town staff for handling his water leak issue while he was out of town.

COMR. SADLER – THANK YOU TO CHUCK THOMPSON

Comr. Sadler thanked Chuck Thompson for all he has done for the Nags Head community over the years; Mr. Thompson noted during today’s Audience Response that he would be moving soon. Comr. Sadler said that she is sorry to see him leave as he and his wife, Katie, have been a big part of Old Nags Head Cove for a long time.

30 DRAFT Nags Head Board Meeting Minutes October 2, 2002

COMR. SADLER – LARGE STRUCTURE PUBLIC HEARING

Comr. Sadler considered Harry Thompson’s comments during Audience Response today concerning large structures. She confirmed with Mayor Muller that she would be able to “change hats” during next month’s public hearing on this issue so that she can speak as a citizen and not as a Commissioner. She emphasized that she hopes everyone who has thoughts on this issue would attend and speak at next month’s public hearing.

COMR. SADLER – CURRITUCK COUNTY BRIDGE

Comr. Sadler pointed out that the there is a “build a bridge” campaign underway in Currituck County and the Currituck County Chamber of Commerce have petitions available for signatures. She also noted that support of the bridge has been received from Rep. Bill Culpepper and from Rep. Bill Owens.

COMR. SADLER – NAGS HEAD COVE BUOYS

Comr. Sadler reported that the buoys in Nags Head Cove canal are leaning and one is almost down in Nags Head Cove. Assistant Fire Chief Butch Osborne reported that they were fixed yesterday; the appropriate ballast has been added to the buoys and they are now standing straight.

ADJOURNMENT

MOTION: Mayor Pro Tem Farah made a motion to adjourn to a Closed Session to discuss two real property acquisitions and a personnel issue and to adjourn to a mid-month meeting on October 16, 2002, at 7:30 p.m. in the Board Room. The motion was seconded by Comr. Murray which passed 4 – 0 (Comr. Remaley was excused.). The time was 3:10 p.m.

______Carolyn F. Morris, Town Clerk

Approved: ______

Mayor: ______Robert W. Muller