Call to Order/Invocation/Pledge of Allegiance

The Town Council of the Town of Belhaven met in regular session on Monday, January 9, 2006 at 7:00 P.M. in the Boyette Civic Center.  Mayor Adam W. O’Neal called the meeting to order with the following Council members present:  Albert Baker, Steve W. Carawan, George R. Ebron, Jr., Mayor Pro-Tem; and Cynthia M. Heath.  Councilman James B. Hodges was not present.  Town Manager Tim M. Johnson, Town Attorney Keith B. Mason and Town Clerk Marie J. Adams were also present.  Mayor O’Neal called upon Mr. Bob Statler to give the invocation.  Following the invocation, Mayor O’Neal led the audience in the Pledge of Allegiance.

Public Hearing – Community Development Block Grant – Urgent Needs Closeout

Mayor O’Neal called the public hearing to order at 7:03 P.M. and asked that Town Manager Johnson give the background information on this hearing.  Town Manager Johnson stated that the Town had received a Community Development Block Grant – Urgent Needs for the repair/stabilization of the Wynne View Building.  Town Manager Johnson further explained that the town acted as the pass-through for the administration of the grant.  Mr. Wade Horne, Executive Director of Community Developers of Beaufort-Hyde, Inc.(CDBH) stated that the Wynne View Building was owned by CDBH and Northeastern Beaufort County Economic Development (NEBCED).  Town Manager Johnson stated that the public hearing was required by the state to closeout the grant project.   Mr. Horne stated that the building stabilization and repairs had been completed for sometime but the building had to be fully occupied before the grant could be closed out.

Mayor O’Neal questioned the ownership of Wynne View.  Mr. Horne stated that CDBH owned 49% and NEBCED owned 51%.  Mayor O’Neal questioned if NEBCED still functioned.  Mr. Horne stated yes.

Councilman Carawan questioned the amount of the grant and who would be paid back when legal settlement is reached.  Mr. Horne stated that the grant was for $485,000 and that the stabilization/repairs cost an additional $10,000 which CDBH paid.   Mr. Horne explained that the legal settlement, when received, would be paid back to CDBG and hopefully CDBH could be exempt $100,000 so that these funds could be retained to payback the $10,000 which was paid by CDBH for the repairs and enough retained to pay the past due taxes.   Councilman Carawan questioned the amount of back taxes owned on the building.  Mr. Horne stated that the 2003/04 and 2004/05 taxes were owed at an estimated $47,000.

Mrs. Nina Dillon, resident of 452 Edward Street, stated that there was no suitable parking for the senior citizens, who resided at the Wynne View Building.  Mayor O’Neal agreed with this statement.  Town Manager Johnson stated that the parking lot behind the former Barrett’s Flower Shop and O’Neal’s Snack Bar was available for the tenants with customer parking for the retail businesses on the front side of the building.

Ms. Pat King, a resident of 410 Belhaven Square, questioned if any funds were spent on the inside of the apartments.  Mr. Horne stated yes.  Ms. King stated that she had viewed an apartment at Wynne View and it was filthy and was told that the carpet would not be replaced.  Mr. Horne stated that some of the carpets were replaced.

Ms. Virginia Hill, a resident of 412 Belhaven Square, questioned if the width of the steps had been increased as a former resident of Belhaven Square had fallen.  Mr. Horne stated that the steps had not been repaired as they met building code.

Mayor O’Neal asked who could be contacted for Wynne View concerns.  Mr. Horne stated that Mr. Bob Paciocco, as of January 2006, was the new Executive Director of CDBH and Mr. Horne was now the Executive Director of Beaufort Hyde Construction (BHC) the panelized housing operation to open at the George Ebron Industrial Park.

There being no further comments from the public, Mayor O’Neal declared the public hearing closed at 7:18 P.M.

Approval of Minutes – Regular Session – December 5, 2005 and Special Called Session – December 19, 2005

Mayor O’Neal stated that the minutes of the December 5, 2005 Regular Session Meeting were open for review.  Mayor O’Neal stated that there were several areas that were incorrect in both sets of minutes.  Town Clerk Adams asked for clarification as to the heading/topic where Mayor O’Neal wished to request a correction.  Councilman Carawan stated that the sentence which stated “There was much discussion from the public and Town Manager Johnson motioned for the police officer in attendance to speak to Mr. Millican who was interrupting.  Mayor O’Neal stated that the Town Manager had Mr. Millican removed from the meeting and that no one could do that except the Mayor and asked that the sentence be corrected by stating such.  There was much discussion from the Council concerning Mr. Millican re-entering the meeting, which led them to believe that he “Mr. Millican” was not dismissed from the meeting.   Following additional belabored discussion, Councilman Carawan made the motion that the minutes be corrected to state “that Town Manager Johnson had Mr. Millican escorted outside by a police officer”.  Mayor O’Neal called for a second to the motion.  There was no second, motion failed to correct/change this portion of minutes.

Mayor O’Neal stated that he had another correction to the minutes, under the heading/topic “Comments from the Mayor”, the sentence “Mayor O’Neal informed the Council that the Town Manager would not dismiss another citizen from one of his meetings.  Town Manager Johnson stated that the gentleman was not dismissed from the meeting but was spoken to by the police officer”.  Again, Mayor O’Neal stated that the Town Manager did dismiss Mr. Millican and asked that the minutes reflect that.  Again, there was much discussion from the Council concerning the wording of the minutes.  Mayor O’Neal called upon Mr. Millican.  Mr. Millican approached the Council and stated that he did not appreciate being escorted from the meeting and that he could take legal action concerning this but he would not.  Councilwoman Heath stated that the emotional climate of the meeting led to some things and that the minutes should be left as is, as not to make a big issue.  Councilman Carawan made the motion that the minutes show that Town Manager Johnson dismissed Mr. Millican from the meeting.

There was no second to the motion.  The motion failed.  Mayor O’Neal stated that the minutes were not accurate and that accurate minutes would be needed as he felt some items were being down played.  After being recognized Town Clerk Adams stated that she was not accustomed to taking verbatim minutes and that if verbatim minutes were required, then a stenographer would need to be hired.  Mayor O’Neal stated that a stenographer may be needed.

Mayor O’Neal stated that under the heading “Adjournment” of the December 5, 2005 meeting, it is stated that Councilman Hodges also made a motion to adjourn the meeting but, was told by Mayor O’Neal that it was not necessary to make a motion.   Mayor O’Neal stated that he asked if there was any objection to adjourn the meeting and hearing none he declared the meeting adjourned and that Councilman Hodges had already made the motion to adjourn.

Councilman Carawan made the motion to correct the December 5, 2005 minutes under the heading “Adjournment” as stated by the Mayor.  Mayor O’Neal asked for a second, there being no second to the motion, the motion failed.

Councilman Baker questioned how the meetings will be adjourned in the future.  Mayor O’Neal stated that according to Robert’s Rules of Order, the “Chairman” may adjourn the meeting or the meeting may be adjourned by a motion.

Councilwoman Heath made the motion to approve the regular session minutes of the December 5, 2005 meeting.  Councilman Baker seconded the motion.  Mayor O’Neal asked for a count on the vote. Council members Baker, Ebron and Heath voted in favor of the motion.  Councilman Carawan voted against the motion.  The motion carried 3 to 1.

Mayor O’Neal stated that the Special Called Meeting minutes of the December 19, 2005 meeting were open for review.  Mayor O’Neal stated that the portion of minutes under the heading “Appointment of Citizen Utility Advisory Committee” 2) Ms. Bonnie Gouch, former utility customer, stated that the cut-off policy is not fair because if you go to cut-off you couldn’t pay one bill much less both bills.  Town Manager Johnson stated that he could not be held responsible for non-payment of the utility customers’ bills.  Mayor O’Neal told Town Manager Johnson not to speak to customer in this manner.  Mayor O’Neal stated that was not what Mr. Johnson said and would like the minutes changed.  There was much discussion; Councilman Carawan made motion to change the wording “to get exact quote” concerning Mr. Johnson’s reply to Ms. Gouch.  There was no second to the motion, therefore motion failed.

Mayor O’Neal stated that under the heading “Citizens Comments on Tidal Flooding” the sentence “Mayor O’Neal estimated that the tidal flooding could be rectified at an estimated $25,000 or less.”  Mayor O’Neal stated that this sentence was incorrect and made him “to look” that he was underestimating the cost of rectifying the tidal flooding.   Mayor O’Neal stated that he said, “the Department of Transportation had allocated $25,000 for this project and that those funds should be sought.  Councilman Carawan made the motion to correct the minutes, there was not a second to the motion, therefore the motion failed.

Mayor O’Neal stated that there was another correction to the minutes that was necessary under the heading “Boys and Girls Club - Teen Basketball”, the sentence “Mayor Boyette recognized Mr. Mac Pigott who stated that one child may benefit from the program as to keep them out of trouble.”  Mayor O’Neal stated that Mayor Boyette should be changed to “Mayor O’Neal”.  Councilman Ebron made the motion to make the change to the minutes as stated by Mayor O’Neal.  Councilwoman Heath seconded the motion which carried unanimously.

Mayor O’Neal stated that another correction to the minutes, under the same heading Boys and Girls Club Basketball. “Councilman Ebron asked if the Board of Directors of the Boys and Girls Club supported the program.  Mr. Leggett stated yes, the Board of Directors gave their full support.  Mayor O’Neal stated that he interjected, “that he was a board member” and the board did support the proposed program.  Councilman Carawan made the motion to change the minutes as Mayor O’Neal stated.  There was no second to the motion, the motion failed.

Councilwoman Heath made the motion to adopt the minutes of the December 19, 2005 meeting with the one approved correction.  Councilman Baker seconded the motion.

The motion carried 3 to 1, with Councilman Carawan voting against the motion.

Councilwoman Heath stated that Town Clerk Adams performed her duties of writing the minutes well and did not feel that the type of scrutiny given the minutes tonight was necessary.

2004/2005 Audit Presentation-Mr. Jeff Best, CPA with Pittard, Perry & Crone, Inc.

Mayor O’Neal stated that Mr. Jeff Best, CPA with Pittard, Perry & Crone, Inc. was in attendance to present the 2004/2005 Fiscal Year Audit of the Town of Belhaven audit to the Town Council.  Mayor O’Neal introduced and recognized Mr. Best.  Mr. Best stated that net assets including cash, equipment, etc. were $4,474,055.  Mr. Best stated that the town had increased net assets in the proprietary fund (electric, water and sewer combined) by $207,216.   The Town of Belhaven has invested with the North Carolina Capital Management Trust $328,082.    The current tax levy collection percentage of 85.81% which is below the state average.   Mr. Best did state that the management letter included some concerns with internal control dealing with segregation of duties.

Mayor O’Neal read the management letter from Pittard, Perry and Crone, Inc. to the Mayor Council.

To the Honorable Mayor and
Members of the Town Council
Belhaven, North Carolina

In planning and performing our audit of the financial statements of the Town of Belhaven, North Carolina for the year ended June 30, 2005, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control.  However, we noted certain matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants.  Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control that, in our judgment, could adversely affect the Town of Belhaven, North Carolina’s ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements.

A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we noted the following reportable condition that we believe to be a material weakness.

Segregation of Duties:

The duties in the finance department should be separated as much as possible and alternative controls should be used to compensate for lack of separation.  With the number of personnel in the finance department this may continue to be a problem.

OTHER COMMENTS AND RECOMMENDATIONS:

Tax Collection
The percentage of current year tax collections was 85.81%. Current year collection rates are still lower than the State average.  We recommend that the Town continues to pursue all legal remedies including garnishment of wages and foreclosures for collecting property taxes owed to the Town to maximize tax revenue realized on an annual basis.

These material weaknesses and other reportable conditions were considered in determining the nature, timing, and extent of the audit tests applied in our audit of the June 30, 2005 financial statements, and this report does not affect our report on those financial statements dated August 19, 2005.  We have not considered the internal control since the date of our report.

This report is intended solely for the information and use of the governing body, management, and cognizant audit agency, and other state agencies and is not intended to be and should not be used by anyone other than these specified parties.

Pittard Perry & Crone, Inc.
August 19, 2005

Mayor O’Neal questioned the operating income of $165,636.   The total operating expenses for the electric fund is $2,358,469.   Mr. Best explained that a portion of this is transferred to other funds, resulting in a net asset of $65,028 in the electric fund and $900,855 in the operating revenue of the water and sewer fund.  The operating income for water and sewer is $159,264.   The operating expenses for water and sewer are $741,591.  The change in net assets of the water and sewer fund is $142,188 which includes a capital contribution of $147,396 for grants received.

Town Manager Johnson asked if the management letter was a boiler plate standard type of form letter.  Mr. Best stated, “No”.  Mr. Best suggested that the town hire an additional employee to assist with the segregation of duties or that Council members could assume of the staff’s duties/responsibilities.  Town Manager Johnson asked if PPC staff found any faults.  Mr. Best stated that the Town did a good job and that compared with other towns our size the staff was well prepared and easy to work with and could retrieve information easily when asked.  Town Manager Johnson asked if other towns our size had the same problems with segregation of duties.  Mr. Best stated yes, if they possess a problem with small staffs.

Mayor O’Neal stated that maybe PPC should work with our staff to avoid receiving another “segregation of duties” statement.

Councilwoman Heath made the motion to accept the audit as presented.  Councilman Ebron seconded the motion.  Councilman Carawan stated that some language should be included in the motion to lessen the burden on employees with the segregation of duties and make a conscious effort to work with PP&C to alleviate this problem.  Mayor O’Neal stated that he would be concerned if he received an audit for his business of this nature.

Town Manager Johnson stated that the budget process would start in a couple of months and the addition of another employee could be considered at that time.  Town Manager Johnson stated that there was nothing wrong with the audit and that in most small towns there is no more than one person doing jobs that cross over.  Councilman Ebron stated that he serves on several boards and has heard the same type of report on other organizations.

Councilwoman Heath attempted to speak but, was told she was out of line and had not been recognized by the Mayor.

Mayor O’Neal asked for a call on the vote of approving the audit. The motion carried to approve the audit 4 to 0.

Town Manager Johnson thanked the staff of PP&C.

Community Development Block Grant-Economic Development (CDBG-ED) Project Ordinance

Mayor O’Neal announced that the Council had a Community Development Block Grant-Economic Development (CDBG-ED) Project Ordinance submitted for approval.  Mayor O’Neal asked that Town Manager Johnson give an overview.  Town Manager Johnson stated that this grant would be utilized to extend the sewer and electric services (infrastructure) to the Beaufort Hyde Construction Center (BHC) in the George Ebron Industrial Park.  Town Manager Johnson explained this would be a panelized housing facility that would provide many jobs for area citizens.    There being no further discussion, Mayor O’Neal asked for a motion to approve the project ordinance.  Councilman Baker made the motion to approve the following project ordinance and authorized the Mayor and Town Clerk to execute the necessary ordinance on behalf of the Town.  Councilman Ebron asked that he be allowed to abstain from voting.  Mayor O’Neal informed Councilman Ebron that he could vote on this issue as Councilman Ebron would have no financial gain from this action.  The motion carried 4 to 0.

TOWN OF BELHAVEN COMMUNITY DEVELOPMENT BLOCK GRANT-ECONOMIC DEVELOPMENT
(CDBG-ED)
PROJECT ORDINANCE

Be it ordained by the Belhaven Town Council that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby adopted:

Section 1:        The project authorized is the Community Development Block Grant –Economic Development for Beaufort Hyde Community Developers Panelization Plant described in the work statement contained in the funding agreement between the Town of Belhaven and the North Carolina Department of Commerce-Commerce Finance Center.

Section 2:        The Town of Belhaven Finance Officer is hereby directed to proceed with the project within the terms of the program document(s), the rules and regulations of the North Carolina Department of Commerce-Commerce Finance Center, and the budget contained herein.

Section 3:        The following revenues and resources are anticipated to be available to complete the project activities:

CDBG-ED Grant Revenue                                            $ 263,339

Total Project Resources                                              $ 263,339

Section 4:        The following amounts are appropriated for the project activities:

Construction                                                               $ 206,800

Capacity Fee                                                              $     9,315

Administration                                                            $   41,020

(Admin., Land Survey, Engineering, Inspections)

Permits & Fees                                                          $     6,204

Total Project Budget                                                   $ 263,339

Section 5:        The Program Finance Officer is hereby directed to maintain with the Project Fund sufficient specific detailed accounting records to provide the accounting to the North Carolina Department of Commerce-Commerce Finance Center required by the funding agreement(s) and federal and state regulations.

Section 6:        Funds may be advanced from the town’s project allocation of General Funds for the purpose of making payments as due.  Reimbursement requests should be made to the North Carolina Department of Commerce-Commerce Finance Center in an orderly and timely manner.

Section 7:        The Program Finance Officer is directed to report quarterly on the financial status of each project element in Section 4 and on the total project revenues received or claimed.

Section 8:        The Program Finance Officer is directed to include a detailed analysis of past and future costs and revenues on this project in every budget submission made to this board.

Section 9:        Copies of this project ordinance shall be made available to the Program Finance Officer for direction in carrying out this project.

Adopted this the 9th day of January, 2006.

________________________________

                                                                        Adam W. O’Neal, Mayor

Attest:

Marie J. Adams, Town Clerk

Capital Improvement Plan (CIP) Project Ordinance 

Mayor O’Neal announced that the Council had a Capital Improvement Plan (CIP) Project Ordinance submitted for approval.  Mayor O’Neal asked Town Manager Johnson to give an overview.   Town Manager Johnson stated that the town had received a $40,000 grant from The Rural Center, specifically for the comprehensive long term infrastructure plan for the next fifteen years.  Councilman Carawan questioned who was drawing up the plan.  Town Manager Johnson stated that Cavanaugh and Associates from the Wilmington, NC office was drawing up the plan.  Mayor O’Neal asked for a motion.  Councilman Ebron made the motion to approve the following project ordinance on behalf of the Town.  Councilman Baker seconded the motion.  Mayor O’Neal recognized Mr. Bill Reynolds, resident, who asked if the CIP would include storm water drainage.  Town Manager Johnson stated that storm water drainage would be included in the plan.

The motion carried 4 to 0.

TOWN OF BELHAVEN
CAPITAL IMPROVEMENTS PLAN
(CIP)
PROJECT ORDINANCE

Be it ordained by the Belhaven Town Council that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby adopted:

Section 1:        The project authorized is the Capital Improvements Plan (CIP) described in the work statement contained in the funding agreement between the Town of Belhaven and the North Carolina Rural Center.

Section 2:        The Town of Belhaven Finance Officer is hereby directed to proceed with the project within the terms of the program document(s), the rules and regulations of the North Carolina Rural Center, and the budget contained herein.

Section 3:        The following revenues and resources are anticipated to be available to complete the project activities:

Project Funding

Rural Center Grant                                                    $    40,000

Total Project Resources                                             $    40,000

Section 4:        The following amounts are appropriated for the project activities:

 Project Budget

Professional Services/Consulting                                $    40,000

Total Project Cost                                                     $    40,000

Section 5:        The Program Finance Officer is hereby directed to maintain with the Project Fund sufficient specific detailed accounting records to provide the accounting to the North Carolina Rural Center required by the funding agreement(s) and federal and state regulations.

Section 6:        Funds may be advanced from the town’s project allocation of General Funds for the purpose of making payments as due.  Reimbursement requests should be made to the North Carolina Rural Center in an orderly and timely manner.

Section 7:        The Program Finance Officer is directed to report quarterly on the financial status of each project element in Section 4 and on the total project revenues received or claimed.

Section 8:        The Program Finance Officer is directed to include a detailed analysis of past and future costs and revenues on this project in every budget submission made to this board.

Section 9:        Copies of this project ordinance shall be made available to the Program Finance Officer for direction in carrying out this project.

Adopted this the 9th day of January, 2006.

______________________________

Adam W. O’Neal, Mayor

Attest:

Marie J. Adams, Town Clerk

Water System Well #1 Failure

Mayor O’Neal stated that the Council needed to discuss the condition of the Water System Well #1.  Mayor O’Neal asked that Town Manager Johnson give the Council information on this well.  Town Manager Johnson stated that well #1 is held as a safety net for the town and it has failed.  Town Manager Johnson informed the Council that since recently adding well #3 state regulations have changed as to the proximity wells can be located to each other.  Under the town’s circumstances, it is hoped that the state will allow the town to drill another well, not having to meet the separation rules between the wells.  Town Manager Johnson stated that should the town not be given any reprieve on the separation rules then additional property (200’ x 200’) would have to be purchased in order to dig another well.

Councilman Carawan questioned relining well #1 like well #2.  Town Manager Johnson stated that relining the well would give no guarantee of quality or quantity of water.

Councilman Ebron stated that he would suggest a new well especially for the dependence the town may have on the well.  Councilman Carawan asked if there were any other expenses with Option #1 (drilling a new well) and where would the funds derive.  Town Manager Johnson stated that fencing around the well, concrete work and property purchase, would be an additional expense and that the funding would have to come from the fund balance, as this was not a budgeted expense.  Town Manager Johnson explained the four year plan to increase water and sewer rates, by stating that those proposed increases had just been passed for two years, due to the town making a reserve with funds for sewer capacity.  Councilman Carawan asked if any prices for the drilling of the well were sought from other companies.  Town Manager Johnson stated no, not at this time, but should the Council wish to replace the well the construction of a new well would be put out for bids.  Mayor O’Neal suggested that this item be tabled until the next meeting due to the short time given to review this information.  Mayor O’Neal further stated that he would like to view the site and well with Mr. Woolard, who works with the state in Water Quality, before a decision is made.  Councilman Carawan questioned if the town would be in jeopardy of having enough water, if this item was tabled until the next meeting.  Town Manager Johnson stated no, as long as the other wells were working.  Town Manager Johnson clarified by stating, “Emergency, no; necessary, yes.”   Town Manager Johnson estimated the cost of drilling a new well and purchasing property to be an estimated $160,000-$170,000.  Following additional discussion, Councilman Ebron made the motion that the town go with option 1 as suggested by the Town Manager which would require the digging of an additional well with a variance requested from the state on separation requirements which was estimated at $125,000 for the drilling of the well.  Councilwoman Heath seconded the motion. The motion carried 4 to 0.

Sun Burn Communications Requests

Mayor O’Neal stated that Sun Burn Communications had three requests of the Town Council.  Mayor O’Neal recognized Mr. Hugh Worsley, representing Sun Burn Communications.  Mr. Worsley stated that Sun Burn needed a time extension to complete their one year franchise agreement to finish installing their cable system.  Mr. Worsley stated that a one year extension was needed.  Mr.Worsley stated that the second request was to allow Sun Burn to attach their cable to the town owned bridge on Water Street.  Mr. Worsley stated that he was requesting permission to bury cable under the park located on Main Street and to build a new pedestal at the corner of the parking lot behind the park.

Councilman Ebron made the motion to grant a one year extension of the franchise agreement and allow attachment to the bridge on Water Street and underground installation of cable at the mini-park downtown.    Councilwoman Heath seconded the motion.

Mayor O’Neal then recognized Mr. Guinn Leverett, President, Belhaven Cable Television.  Mr. Leverett stated that he would like to speak in opposition of Sun Burn Communications receiving a time extension.  Mr. Leverett stated that for reference Belhaven started installed cable in September 1982 and had the first customer connected to cable television on Thanksgiving Day 1982.   Mr. Leverett stated that according to the franchise application of Sun Burn, the cable was supposed to be 10% underground and 90% aerial.  Mr. Leverett made a presentation on a screen from an overhead projector.  The information presented by Mr. Leverett accused Sun Burn Communications and its owner Mr. John C. (JC) Singleton of not adhering to his franchise agreement and identity theft with the FCC on behalf of Belhaven Cable TV.  Mr. Leverett stated that Sun Burn was presented with a cease and desist letter from Sprint to stop installing cable lines on the utility poles.  Mr. Leverett stated that Sun Burn was responsible for many water leaks in town and that Sun Burn should have asked permission from the Council to go underground instead of overhead.

Councilman Carawan questioned Mr. Worsley as to why Sun Burn was told to stop attaching cable to utility poles.  Mr. Worsley stated that with his work in the cable industry, from about 1996 until 1999, pole attachment with Sprint had been handled in one manner.  Mr. Worsley stated that the new regulations of Sprint would cost approximately $250 per pole which would total an estimated $278,000 just to attach to the utility poles; that was the reason Sun Burn decided to go underground.   Mr. Worsley explained that by going underground with the cable, expenses would not be as great.  Councilwoman Heath stated that Sun Burn had not met the one year deadline to have cable installed.  Mr. Worsley stated that by changing from overhead to underground with the installation of the lines, it had been more time consuming.  Mayor O’Neal questioned the number of water leaks caused by Sun Burn and asked were they billed for such repairs.  Town Manager Johnson stated that they were billed.  Mr. Worsley explained that it is the utility company’s responsibility to located lines, if the lines are not properly located and the lines were cut, it was not Sun Burn’s responsibility to pay for repair.  Mayor O’Neal recognized Mr. Jerry Stender, employee/cable contractor with Belhaven Cable who stated that Sun Burn’s bond should be increased because of the change in the scope of work.  Mayor O’Neal recognized Mr. Daryl Patterson, employee of Belhaven Cable, who asked did Sun Burn get permission to go underground with the cable.  Town Manager Johnson stated that when the Council granted the franchise, citizens would be given a choice as to which cable company they did business with.  Mr. Johnson further stated that Sun Burn had spent $12 - $13 thousand in legal fees before being granted the franchise.    Town Manager Johnson stated that Sun Burn was here requesting the three original requests:  1) extension of franchise time, 2) permission to connect to the town owned bridge and 3) permission to bury cable under the park on main.  Mayor O’Neal recognized Mr. Ben Johnson, employee of Belhaven Cable who stated that there should be a revocation of Sun Burn’s Franchise.  Mr. Julian Goff, resident, questioned when Sun Burn was aware of the new policies of Sprint.  Mr. Worsley stated that when they were notified of cease and desist that the franchise had to be granted prior to Sprint allowing an application of attachment to the utility poles.  Mr. Tony Stanley, resident, asked if Sun Burn brought back to the Council their decision to go underground instead of overhead.

Councilwoman Heath asked Attorney Mason for guidance due to the issues that had arose.  Attorney Mason stated that cable franchise was not his expertise and suggested that Poyner and Spruill, Mr. Keith Johnson be contacted for legal reference as he was the attorney who handled the franchise agreement.   Councilwoman Heath stated that with the new questions that have arose concerning Sun Burn Communications that the issue of extensions and requests be tabled for further legal advice.

Councilwoman Heath made the motion to withdraw the first motion, stated earlier and to table this issue until the next meeting.  Councilman Ebron concurred to withdraw the motion.   Councilman Baker seconded the motion to table the requests.  The motion carried unanimously, 4 to 0.

Wachovia Bank Signatory Resolutions

Mayor O’Neal stated that signatory changes were necessary for the Wachovia Bank accounts.  Councilman Ebron made the motion to appoint Tim Johnson, Robin Godsell, George R. Ebron and Albert Baker as authorized representatives of the Town of Belhaven for all banking activities included by not limited to deposits, borrowing and miscellaneous bank relationships and that the Mayor, Council and Town Clerk are authorized to certify the necessary paperwork.  Councilwoman Heath seconded the motion which carried unanimously, 4 to 0.

Proposed Electric Rate Increase

Mayor O’Neal stated that during his campaign, he represented not raising utility rates.  Mayor O’Neal stated that he did not want to get rid of employees but maybe restructure departments to keep expenses at their lowest.  Mayor O’Neal stated that this was the reason for the need of a utility advisory board.  Mayor O’Neal further stated that with the advisory board could make studies and research before an electric rate increase is set.  Mayor O’Neal had several members of the audience to distribute information he had compiled of other town’s of comparative size, the cost of a 2,000 kw electric bill.  Mayor O’Neal stated that Mr. Ken Raber with ElectriCities had presented him the names of the towns included in that survey.

HOW DO WE COMPARE?

Based on 2000 kWh utility user

ElectriCities Town                            Population                              Monthly Bill

Benson                                                   3,000                                      $217.11

Edenton                                                 5,000                                      $209.73

Farmville                                                4,500                                      $236.50

Freemont                                                1,500                                      $221.22

Hertford                                                 2,000                                      $240.61

LaGrange                                               3,000                                      $213.63

Louisburg                                               3,400                                      $211.93

Red Springs                                           3,400                                      $248.67

            Average electric bill of towns above    $224.92

 

Belhaven                                                1,961                                      $260.54

 

Difference between the Belhaven Electric Bill and average is $35.62 per month

            Annual Cost to a Belhaven Household $427.44

There was much discussion led by Mayor O’Neal concerning Belhaven’s rates higher than towns it was compared with.  Town Manager Johnson stated that Belhaven had no minimum charge for electric and asked if sales tax was included in the towns listed.

Town Manager Johnson also stated that the towns that Belhaven was compared with were not all VEPCO towns some were CP&L and with different sources therefore the base charges are different.

Town Manager Johnson explained in depth the Tier rating factor based on consumption and explained that as the town grows, electric usage increases then the town could purchase electricity on the open market (at better rates).  Town Manager Johnson also explained that the town had to purchase electricity from the power plants in which we helped purchase with our contracts through NCEMPA.  Upon summarizing, Town Manager Johnson stated that electric rates did not have to be raised, but if they were not then the taxes would need to be raised.

Mrs. Lindsey C. Hubers questioned why the towns electric rates referenced in the Mayor’s presentation were 20% lower than Belhaven’s, if the towns all purchased power from the same supplier.  Town Manager Johnson stated that those towns may have implemented the rate stabilization program earlier than Belhaven, they may supplement with rate stabilization or other fees for services they provide may be higher.

The Council discussed the following option as presented by Town Manager Johnson:

Option 1 – a 6.4% increase across the board, including security lights; Option 2 – a 7.5% increase in residential and 5.75% increase in small commercial and large commercial and Option 3 – a 6.9% increase in residential and 6.2% increase in small and large commercial.

Councilman Carawan asked if the increases would be revenue neutral.  Town Manager Johnson stated depending upon overall usage.  Councilman Baker asked when was the last electric rate increase.  Town Manager Johnson stated June 2005.

Councilman Ebron made the motion to implement Option 3 – a 6.9% increase in residential and 6.2% increase in small and large commercial.  Councilman Baker seconded the motion which carried, 3 to 1; with Councilman Carawan voting against the motion.

Councilwoman Heath suggested that energy conservation information be given to customers.

Tidal Flooding Advisory Committee

Mayor O’Neal stated that the Council needed to consider the appointment of a Tidal Flooding Committee.  Mayor O’Neal stated that the town had been plagued for years with tidal flooding.  There was much discussion concerning the need for a tidal flooding committee, the willingness of people to serve on such committee and the where funds could be obtained to take care of the flooding problems.   Mrs. Julia Ward, a resident of Union Street, stated that she supported a Tidal Flooding Committee but each board member should make an appointment.   The Council discussed the need to have a committee that is appointed from the Council instead of the Mayor alone.

Councilman Baker made the motion to appoint a Tidal Flooding Advisory Committee, with each Council member having two appointments and the Mayor having two appointments.   Councilman Carawan seconded the motion which carried unanimously, 4 to 0.

Utility Advisory Committee

Mayor O’Neal suggested again, that the Town Council appoint a utility advisory committee.  Mayor O’Neal read the resolution.

Utility Advisory Committee

Be it resolved that the Town of Belhaven hereby creates a utility advisory board to study all matters appertaining to the rates and charges of the various utility services in the Town of Belhaven.

The utility advisory board is charged to present its findings and recommendation to the Belhaven Town Council in a timely manner.

The utility advisory board is created for a period of two years and shall consist of:  Linda Barrow, William Brewington, Betsy Deluca, Guinn Leverett, Les Porter Mabelline Satterthwaite and Donetta Midkiff.

By copy of this resolution, the Town Manager and Town Staff are directed to assist and co-operate with the Utility Advisory Board in every way possible.

Mayor O’Neal stated that each council member and that the Mayor could appoint two members to this proposed committee.

Following much discussion, Councilman Carawan made the motion to appoint the committee in the same manner as the Tidal Flooding Committee.  There was no second, the motion failed.

Mayor O’Neal recognized Mr. Jules Purvis, resident, who stated that he could see the need for the Tidal Flooding Committee, but felt that a Utility Advisory Committee, at this time, would be counter productive as the increases have been passed on.  Mr. Purvis suggested that the Council start preparing for next year now with budget information, as he read that the City of Washington was in the process of doing.  Mr. Purvis also suggested that the Mayor have his personal committee to go ahead and start to work now, not wasting time on a rate committee.

Mayor O’Neal recognized Mr. Mac Pigott who asked that the Council reconsider meeting two times monthly, as this meeting was still in session during the late hour.

Town Manager’s Report

Town Manager Johnson reported briefly on the following:  1) funding had been secured to repair/replace the railroad crossing at the intersection of 264 and 99; by removing the existing crossing and rebuild – work should begin within two months; 2) Belhaven Fish & Oyster Property, Dixon and Hoyle had an option on this property and now have chosen to exercise their contract; 3) Departmental Monthly Reports are included for review.

Councilman Carawan questioned when Town Manager Johnson received notice of Dixon and Hoyle’s intention to execute the contract.  Town Manager Johnson stated that he received notice via fax on Friday, January 9, 2006.

Citizens Comments

Mayor O’Neal recognized the following who spoke briefly:  Mrs. Alba Harris, property owner, who stated that she was pleased to hear that something would be done about the tidal water as it is inconvenient to find parking places and get around the water.

Mr. G. B. Bowen questioned the net difference charged per kw.  Town Manager Johnson stated that the town is not billed per straight kw and suggested that Mr. Bowen come by the office so that he could explain in greater detail.

Mr. Andy Fisher questioned the option on the former Belhaven Fish and Oyster property  and the time frame involved, by Dixon and Hoyle.  Town Manager Johnson asked Mr. Fisher to come by the office to review the offer.

Mayor’s Comments

Special Meeting

Mayor O’Neal stated that the Town Council would hold a Special Called Meeting on Monday, January 23, 2006 at the Boyette Civic Center at 7:00 P.M.  Mayor O’Neal stated that the items on the agenda would be UCAC (United Citizens Against Crime), Ditch Tiling, Community Access at the Community House and an Update on the Option to Purchase the Belhaven Fish & Oyster property by Dixon and Hoyle.

Agenda Packet Information/Place of Meetings

Agenda Packet Deadline

Mayor O’Neal stated that additional time was needed to review the packet of information for the Council meetings.  Mayor O’Neal asked that a motion be made, that the Council receive information pertaining to Council meetings on Thursday, before the meetings on Monday.  Councilman Carawan made the motion that the Council Agenda Packets be issued to Council members on the Thursday, prior to the Monday night Council meeting.  Councilman Ebron seconded the motion which carried unanimously, 4 to 0.

Council Meeting Place Designation

Mayor O’Neal suggested that the Council meetings be held at the Boyette Civic Center at 7:00 P.M. unless the Council meetings have two consecutive meetings with less thirty-five in attendance, then the meetings would revert back to the Town Hall.  The Council agree and the matter was accepted by acclamation.

Convene Into Closed Session - Personnel Discussion – GS 143.318.11

Councilman Ebron made the motion that the Town Council convene into Closed Session to discuss personnel matters as permitted in GS 143.318.11.   Councilman Carawan seconded the motion which carried unanimously, 4 to 0.  The meeting convened at 10:17 P.M.

Reconvene Into Regular Session

Councilwoman Heath made the motion to reconvene into regular session.  Councilman Ebron seconded the motion which carried unanimously, 4 to 0.  The meeting reconvened into regular session at 11:21 P.M.

Councilman Ebron stated  that the purpose of the closed session was for personnel and he also made the motion that the Council members and Mayor establish better working relationships.  Councilwoman Heath seconded the motion which carried unanimously, 4 to 0.

Adjournment

There being no further business, Mayor O’Neal declared the meeting adjourned at 11:22 P.M.

Respectfully submitted,
Marie J. Adams, CMC
Town Clerk