Approval of Minutes - November 18, 2002 Regular Session and December 2, 2002 Belhaven Waterfront Study Meeting
Mayor Boyette stated the minutes of the November 18, 2002 Regular Session and the December 2, 2002 Belhaven Waterfront Study Meeting were open for review and adoption. There being no corrections to the minutes, Councilman Baker made the motion to approve the minutes as written. Councilman Hodges seconded the motion which carried unanimously. The motion carried unanimously, 4 to 0.

Beaufort County Economic Development Commission (BCEDC) Budget Request
Town Manager Johnson announced that Mr. Tom Thompson, Executive Director the the Beaufort County Economic Development Commission had a conflict with the Town=s meeting and asked that his request be tabled. The Council informally agreed.

Adoption of the Town of Belhaven's Safety Manual - American Public Power Association Safety Manual
Mayor Boyette stated that the town has historically been using the American Public Power Association (APPA) Safety Manual but had never formally adopted the manual as the town=s safety manual. (Councilman Ebron arrived at the meeting at this time). Mayor Boyette further explained that the safety manual not only covered the utility departments but all departments. After some discussion, Councilman Hodges made the motion to adopt the APPA Safety Manual as the Town of Belhaven=s safety manual. Councilwoman Heath seconded the motion which carried, 5 to 0.

2001/2002 Audit Presentation - Pittard, Perry & Crone - Mr. Jeff Best
Mayor Boyette recognized and introduced Mr. Jeff Best with Pittard, Perry and Crone and asked him to present the town's 2001/2002 audit.

Mr. Best briefed the Council on the audit and the many special funds, such as Hazard Mitigation, Disaster Recovery Initiative, Crisis Housing Assistance along with the town's General Fund and the Proprietary Funds (Electric, Water and Sewer).

Town Manager Johnson stated that due to the withholding of monies by the state the Town had to deplete the fund balance by only $90,000. Town Manager Johnson stated that the bond notes for the Water System Improvements sold for less than 1.5%.

Mr. Best stated that since the town received state monies through grants totaling over $300,000 it was necessary to perform a report on compliance for each program on internal control. In review, Mr. Best stated that the town assets had increased significantly due to an increase in special projects. Mr. Best stated that tax collection was at 84.54%, which is low but stated that the town historically collects the taxes not just in the current year.

Town Manager Johnson stated that the only thing he was not pleased with, in the audit, was the tax collection rate. Mr. Johnson further stated that the town assisting Beaufort County with tax collections by attaching bank accounts, garnishing wages and will be able to get additional monies from those receiving state income tax refunds through a program through the General Assembly.

Mr. Best stated that the town was in good financial condition and stated that the only area of concern was the segregation of duties in the finance department.

Town Manager Johnson stated that the segregation of duties in the finance department will always be a problem due to the limited staff.

Mayor Boyette thanked Mr. Best for the audit presentation and with consensus of the Council asked that the audit be presented earlier next year, possibly in October.

Mr. Best stated that the audit could be performed earlier which would mean the town would need to have all reports, etc. ready by August.

After additional discussion, Mayor Boyette asked that the audit be presented to the Council the 2nd meeting in October 2003.

Beaufort Hyde Newspaper, reporter, Ms. Carole Mackay asked that a copy of the audit be presented to herself and Mrs. Barbie Burnette with the Daily News. Town Manager Johnson stated they would get a copy.

Councilman Hodges made the motion to approve the audit as presented. Councilwoman Heath seconded the motion which carried unanimously, 5 to 0.

Temporary Post Office Site
Mayor Boyette stated that the Town had agreed, with special permission from Federal Emergency Management Act, to let the site of the temporary Post Office be placed on the former site of the school gymnasium. Mayor Boyette stated that the purpose of the temporary site was to give the Post Office officials time to find property and/or a building to locate a new Post Office. Mayor Boyette stated that originally Post Office officials had wanted to locate the Post Office in the Belhaven Crossing Shopping Center, but town officials stated that this was not acceptable as the town wanted a free standing Post Office possibly to remain located in the downtown area. Mayor Boyette further explained that the Post Office had been temporary located on the "old gymnasium site" for approximately 2 2 years with no rent being charged and the conditional of the "double wide office" and parking lot in very poor condition.

Town Manager Johnson stated that he felt there were safety issues involved as the steps were slick following rains and nails had backed out of the steps and ramp. The Council discussed the desire to have a permanent Post Office located on the present property, if restriction could be lifted by FEMA, if not the old site on Allen Street would be ideal if the old Post Office Building was torn down and the property adjacent to the Post Office purchased.

Mayor Boyette also stated that in order to have the FEMA restrictions lifted from the property a letter of intent to build a new Post Office was forwarded to Congressman Jones' office in order to solicit his assistance in having the restriction waived. Mayor Boyette recognized Mr. Russell Johnston, retired Belhaven Post Master, who stated that other desirable properties be reviewed, if the present property had so many restrictions.

After much involved discussion, Mayor Boyette explained that the Council prioritize properties to be reviewed by Postal Officials for possible sites for a new post office and then notify Town Manager Johnson of these sites, so that they may be prioritized at the next Council meeting. Mayor Boyette also stated that the town should start charging rent for the present Post Office temporary site and offer maintenance on the parking lot as it stays in deplorable condition, especially after rains.

After additional discussion, Councilman Hodges made the motion that beginning March 1, 2003 the Town would implement a rent fee of $1,000 and would offer maintenance for the parking lot for $300.00 per month. Councilwoman Wilkerson seconded the motion which carried unanimously, 5 to 0. Mayor Boyette directed Town Manager Johnson to notify Postal Officials of the rent which will be due beginning March 1, 2003.

Town Manager's Report
Town Manager Johnson reported briefly on the following items:
1) Bond Sale for the Water System Improvement sold for 1.45%, very pleased with rate;

2) Christmas Parade and Festivities held this past Saturday, smaller crowd participating but nice with strong military presence - the Celebration Committee should handle this celebration next year;

3) Holidays for the Town, December 25, 26, 27 and January 1, 2003;

4) OSHA fined town $750.00, Town Manager Johnson will appeal;

5) Water Systems Improvements - rain has slowed construction.

Closed Session Personnel [GS 143-318.11(5)ii] and Recess
Mayor Boyette stated that the Council had the need for a closed session according to GS 143-318.11(5)ii (Personnel). Councilman Hodges made the motion to take a three minute break and to reconvene into Closed Session for Personnel. Councilman Baker seconded the motion which carried unanimously, 5 to 0. The meeting recessed at 8:45 P.M.

Reconvene Into Regular Session
Upon motion by Councilman Baker, seconded by Councilwoman Wilkerson the Town Council reconvened into regular session at 8:52 P.M.

Bonus Awarded Town Manager
Upon motion by Councilwoman Heath, seconded by Councilman Hodges, the Town Manager was awarded a $3,000.00 bonus in accordance with his accomplishment of set goals for the past fiscal year.