Board of Aldermen - Special Meeting

Call the meeting to order. This is the special meeting, Tuesday, June 30, 2026, Board of Aldermen special meeting. What I'd like to do is, it's not on here, but I would like to do the Pledge of Allegiance to start the meeting. Kip, you want to lead us? Thank you. I'd like to have a motion to approve the agenda. I make a motion to approve the agenda.

Do I hear a second?

Second.

All in favor? Mr. Mayor, actually, I'd like to add General Fund 10 from the budget amendment 2026-26.62, a budget amendment for GFL solid waste contract. to the consent agenda as item E. Do I hear a second?

Second.

All in favor of adding it to the consent agenda? Aye. Any opposed? Okay. Let's move on to the consent agenda. Do I hear a motion to approve the consent agenda?

Motion to approve the consent agenda as amended.

Do I hear a second? Second. Any other discussion? Okay. All in favor? Aye. All opposed? All right. So continuing business then. Larry?

Thank you, Mayor. I'd like to refer or defer to Wayne to offer some just high-level summary remarks of where we are and what we hope happens in the next couple minutes.

okay um so we're here today to request approval for the budget ordinance as presented in the packages that you all have received just a quick summary to where we are today we've had several budget workshops over the last couple of months we actually had a meeting on the third which presented in detail the manager's proposed budget with the two options that were based on keeping our operating revenues at a neutral level, but whether or not the legislature passed the to implementing the property revaluations. That was signed, so the ordinance that we have prepared for you today is the one that was presented with the assumption of that being signed by the governor that puts a one-year moratorium on THE PROPERTY REVALUATIONS BEING IMPLEMENTED. THE DETAILS ARE IN THE PACKAGE, SO I DON'T KNOW THAT UNLESS THERE'S QUESTIONS THAT I NEED TO GO THROUGH ALL THAT AGAIN. THE VERY HIGH LEVELS, IT KEEPS OUR TAX RATE AS IS AT THE 43 CENTS, WHICH WOULD KEEP US NEUTRAL IN OUR OPERATING REVENUES. THE FEE SCHEDULES, THERE WERE A FEW MINOR CHANGES, SOME OF THE INSPECTIONS. FEES WERE CHANGED TO KIND OF ALIGN WITH WHAT THE COUNTY CHARGES, AND THEN WE MADE AN ADJUSTMENT TO THE POLICE DEPARTMENT FEES RENEWING THE CONTRACT FOR ANY OF OUR POLICE OFFICERS THAT ARE USED FOR PRIVATE SECURITY FROM THE TOWN. Basically, those are the main changes. So at this point, I'm open for questions for Larry and myself, or we respectfully request your approval of the 26-27 proposed budget ordinance.

What I'd like to do is get a motion to approve and then discussion. Is that all right with everybody? Do I hear a motion to approve? Motion to approve the budget. Do I hear a second?

Second.

Okay, let's open it up. I think one of the things just very quickly We published two rates for those that don't know the legislature passed a Passed a law that froze the reval so there are no changes in the reval property For individuals within this and we have no idea what they're going to do. There also is a referendum That's going to be on the ballot in November, talking about what they can and can't do. So per the advice of our town manager, we originally published two budget rates, I should say. One would have been a substantial reduction with the reval and revenue neutral, and then this one is revenue neutral as well. Correct. So we'll go around the table. Mark?

Kip? I mean, I know we've had this discussion about the merit and bonus increase split. If we're reverting back to the original tax rate, I don't understand why we can't go back to the 5% that was originally in there or go back to, and I know we're doing the compensation study, but I'm voicing my concern that with this change that we aren't, Going back to the original, I don't know where the money, what the numbers have changed that don't allow us to compensate our staff more.

Well, the simple answer to that is this doesn't change our revenue. under either one. No, I understand that, but I'm just saying, and also we are doing the compensation study number one, and we have the right to change things next year if we want, which my guess is when the compensation study comes out, since it's not just going to be for one department, it's going to be for everybody. We're going to have to do something. Um, and also, um, we're looking at the other towns and the other people, for example, um, I think the county is doing. uh, merit of one five and two something on the other side. So we're already, uh, more than consistent with what surrounding towns are doing. So what I would suggest is this has to be approved today. Um, and so, um, we can make adjustments next year. And I think we do have money in the budget for the compensation study. And I think Larry, we've got money in the budget, uh, to cover that as well.

it's in addition to not just the study but there's money put aside if there are just like an implementation cost yes affirmative uh... we we don't know what the actual cost of implementation will be and so the number that i've uh... uses approximately hundred fifty thousand right probably anticipates uh... one to two or three fiscal year

implementations so that level so I don't know what the number actually is but and again I'm not trying to throw a kink in this I'm just wanting to emphasize to our staff our commitment to doing what is right and and it will be through way of this compensation study and I hope that we implement that as quickly as possible because I think it will show that our employees, which we all value, um, deserve to be recognized.

I might have been a thorn in the side of the town manager throughout this budget process, but given that, and I apologize for that. Um, but given that our, uh, Revell is not a reveal our valuations are staying the same our tax rates staying the same so our town residents and property owners won't be seeing any increases and This is a budget we can live with and then we'll have to see what happens come November with the With whatever goes on up at the legislature So thank you for all the work and the double work you had to put into it working on both the the if there was a reveal and if there wasn't a reveal and I think that this is something especially in these hard economic times that I our property owners and residents can live with, and thank you so much for all the hard work you've done.

Laura? Thank you.

Just to take off on what Kip said as well, I mean, as the board, we have the ability to do changes to the budget every month throughout the year, and should we need to do that, or a manager brings something to Larry that needs to come to the board in regards to employees are hiring or salary or HR issues or whatever, the board still has the ability to change budget. So I don't want us to hold up approving the budget today knowing that we have that authority. Okay.

And just one quick clarification. When Kip was talking about the 5%, that's in addition to the COLA increase. Yes. He's not describing a total of 5%. So whatever we had in COLA 2 point whatever.

2.9. 2.9?

And so the question was, should there be 5% over the 2.9, not a total of 5%. All right, so under that, we'd be looking at almost 8% in the current market.

Versus we're already doing a 2.4, so it's only a 2.6 addition. 2.4 is the merit that we've got baked in. Right, but again. I'm just emphasizing that 2.6% only represents a .6. 0.6 cents on the dollar in tax rate. And I don't think that was unreasonable. But like we've also said, I don't want to hold up the budget passing. I just want to emphasize to our staff and employees that I'm committed to bringing this up as soon as the compensation studies reveal.

And that's fine. And I'll make one final point on that. If we go to 8%, that's double what everybody else in this area is doing. in terms of those two things. So I'm very happy with the compensation study. If we're not paying competitively, we should be. But in this market, when Social Security is getting a, what, 2.4% increase, for us to have a budget at 8%, I think it's going to be tough to justify. So with that, all in favor of approving the budget? Aye. All opposed? We're past. Thank you very much. Thank you very much. And again, to Connie's point, this was one of the weirdest budget cycles I have ever seen. Yes, it was. And hopefully it will not be repeated next year that the legislature doesn't work until the end of June to do something for us. So thank you.

Thank you very much.

Uh, thank you, mayor and members of the board of Alderman. All the persons, excuse me. So the board of the board is, is requested to approve submittal of, of a grant application to the North Carolina department of water resources for flood mitigation project. Time is of the essence applications for this program are due today. Nothing like waiting to the last minute, right? The project is structured as two phases. This grant application will potentially phase two, excuse me, estimated cost $199,600 and includes a local match of $480,000 from phase one, which is an existing grant related to flood mitigation. for a total project budget of $679,600. This project, phase two, if funded, leverages an existing grant funded project, which I'll refer to as phase one, from the North Carolina Department of Public Safety Division of Emergency Management, which has funded two stormwater projects, approximating 1.4 million. You may recall it's split into two locations, north end, so to speak, at New River Inlet, and the other south in the face of the Ocean City area around Fire Station 2. The board may also recall awarding Atlantic Onsite Development a contract for that phase one or the broader project at your meeting in May, May 13th. So the proposed scope of work for this grant that we're applying for, or would like to apply for, involves installation of approximately 300 linear feet of stormwater pipe, three drop inlets to capture water from the Gray Street and Ocean Drive area, connecting into the phase one infiltration system. Phase one is part of the existing grant that I've outlined a moment ago. The second project will reduce flooding, improve emergency access, and protect adjacent waters designated as shellfish growing waters. And we have in our audience today Georgia, who is representing Coastal Federation, and I'd like to invite her to offer some remarks on the grant, the project, the relationship, and objectives, if she would.

Thank you so much. Yep. Could we start with any questions? Were there any gaps left with the information that you've heard already?

Why don't you tell us your involvement with this?

Absolutely. Yep. So, uh, again, my name is Georgia Bush. Um, I'm the coastal specialist for the North Carolina coastal Federation. We are over 40 year old, um, conservation nonprofit. We're all over all across the state. Um, my office is in Wrightsville beach. I function as a field restoration staff, so when you see any of our proposals for storm waters, living shorelines, oyster reefs, all of that kind of good stuff, I'm usually the person on the ground doing data collection, but I can also perform and be here on days like this because our water quality program director, Bree Sharon, she lives in Dare County, so I can be here in person with you today. As we heard a little bit about already, the idea, the proposal leverages already committed funds from the town to improve stormwater in the Ocean City Beach area. So we have proposed again an extension of your existing stormwater plan, all engineered with Ardura. We partnered with them again to kind of go over a little bit of an assessment of the Ocean City Beach site. What is the capacity for that land and that residential area to better service the stormwaters, the floodwaters that are persisting on those sites. I understand that emergency vehicles are often rerouted to Ocean Drive if there's flooding on 210. So we have a little bit of an interface there that makes those roads and the drivability there very, very critical for the town. So, again, just an additional set of drop-ins on Gray Street between Island Drive and Ocean Drive will extend the serviceable area of that stormwater infrastructure that you have committed to. It does not increase the capacity of the stormwater structure that you committed to already. It just increases the amount of water that is going to be serviced and passing through the already very large capacity that's existing with that area.

new phase one project that's going in questions mark kip you're in that area no i mean obviously it impacts my community um and the the flooding there is is seriously a problem because of our dry conditions this year obviously it hasn't been but all it takes is you know a good tropical system to to close that road and delay fire services to the south so i appreciate the work that you've done and then coastal federation as well

We really appreciate the opportunity. Um, Mr. Faison graciously took my cold call to say, Hey, can we, can we run this idea by you? Um, you know, for an hour, uh... later on in in just a couple days and and last minute was truly that keyword uh... and we we pretty confidently approached him with the idea we can get all this put together we are here today submission deadline is today uh... but for logistics sakes uh... we have all of the pieces together all of our letters of support our budget has been uh... uh... thoroughly reviewed uh... there is a board resolution needed for our application and we have a grace period i do believe it is at least thirty days uh... from today from point of submission to

Acquiring that resolution from you all to make our application complete Connie I Just want to thank you for all your help in this and working with the town manager This is something that is truly needed and I appreciate and Coastal Federation. It's always thumbs up from me Thank you so much.

We really we like these last-minute stuff. That's helpful forward

Are there any other regulatory agencies involved?

As far as getting to the permitting side of things, there probably will be some regulatory oversight just in making sure the proposal is sound and meeting those regulatory requirements, but we are not there yet. So far, just the folks at DEQ in the water Resources development grant program will be reviewing the proposal. Okay. Thank you.

And then just real quick Larry She said we're gonna need a resolution. I didn't see that on here. We're gonna do that tomorrow or it should be in your packet Oh, it is. Okay. I was just looking at Okay All right, so do I hear a motion to approve?

If I could also add, thank you, Georgia. And just kind of background, as Georgia alluded to, Coastal Federation reached out to us about 30 days ago with an opportunity. And if you think back 30 days ago, what was going on? Budget, budget, budget. What were you doing? And, yeah, so I was – was supportive of the idea. Wasn't sure if, if we, I mean, I was very limited stuff that we could do. So all, uh, hats off coastal Federation, Georgia, her, her, uh, colleague brain, brain, brain, um, major muscle movements, um, did that. We also reached out in a collaborative manner to, to the community, Ocean City Community Council. We had, because of the jazz festival planning, we knew some faces and names and so forth, so we reached out and I learned during the process that about everyone that I had talked to, uh, on that team are board members on the coastal Federation. So, um, yeah. Um, so that, that was, um, uh, interesting. It made it kind of easy. So I figured I was talking to a captive audience. They already kind of knew, knew this was probably bubbling up and so forth and, and so forth. So, uh, but my hat's off to, to the coastal Federation. And just as a reminder, um, uh, coastal Federation will administer the grant, um, the, and we, we structured a memorandum of agreement. They would hold the town harmless for any potential overrun. We don't expect it. It's, I think, a pretty well-designed budget with some built-in contingency. But, you know, stuff happens. And so, anyways, I didn't want to be at the 11th hour asking you for more money for a grant. I think it's a wonderful idea and a good opportunity. And with that, I would request... that action be taken on resolution, certifying the town's subordinates, any other people acting on behalf of the organization do not have a conflict, actual or apparent conflict of interest, certifying that the town does not have any overdue tax debts, approving the memorandum of agreement, and authorizing the mayor and or town manager to finalize and execute all necessary documents. Do I hear a motion?

Are we doing one blanket motion?

You can make a motion for that. Absolutely.

And I would then make a motion for items one through five on the new business agenda item A. I make a motion to approve those requests.

Second.

Mark, second. Any other discussion? All in favor? Aye.

Mayor, I would recommend now that we've conducted all the open items that the board take a recess until 1 before they come back and then go into closed session.

Question for that. So not go into closed session now, just take a recess? recess and until it's time to go into closed session that way the right for the people here they'll understand that there'll be no business conducted today After this meeting, we're going to go into closed session for personnel matters.

Yes, we'll be going into closed session around 1 o'clock for personnel.

Unless they can get here earlier.

I was going to ask, is there an adjusted time that you would like to start?

She's going to check with them to see when they would be here.

She whispered in my ear before we began and said that that might be a possibility, so I've tentatively reached out to Chief and said this may be coming. So a suggested time I expressed to Chief was 1230. Have somebody back here at 1230. Perfect.

For clarification, we're talking about our recruiter. Yes. And we're talking about candidates for town manager.

Yes.

Thank you. Because we're using she and we're using nebulous things that those watching or those in the audience might not know. So we're talking about our recruiter. and bringing people in for interviews for town manager.

So do I have a motion to go into recess?

Do we need a motion to recess?

Yeah, I would just do a motion to recess.

All right. Do I have a motion to recess? I move to recess until 1230.

Second.

All in favor?