Town Council Special Meeting Minutes Morehead City, North Carolina  Friday, ,January 12, 2024  The Honorable Council oft the Town ofN Morehead City held a Special meeting on Friday, January 12,2024, in the Soundside Hall ofthe North Carolina Aquarium located at 1 Roosevelt Boulevard, Pine Knoll Shores, North Carolina. The purpose oft this meeting was to conduct a Town Council  Strategic Planning Retreat. COUNCIL PRESENT: STAFF PRESENT:  Mayor GeraldA A.. Jones, Jr.; Councilmembers Richard. Abell, George Ballou, Lee Stiles, Bill Taylor, and Harvey Walker. City Manager Chris Turner, Finance Director/Assistant City Manager Jewel Lasater, Public Services Director/Assistant City Manager. Daniel Williams, Planning and Inspections Director Sandi Lydian Altman of the UNC School of Government and Maceo  Watkins, and City Clerk Cathy Campbell Donald of the Carteret County News-Times.  OTHERS:  Mayor Jones called the Special Meeting of the Morehead City Town Council to order at 9:03 a.m. with a quorum present. City Manager Chris Turner introduced Lydian Altman, Senior Manager of Leadership Curriculum Development for the UNC School of Government who  facilitated the retreat. objectives:  Ms. Altman explained the process for the day and reminded the Council of the retreat A. To clarify the roles and responsibilities ofl Mayor, Councilors, Manager, Assistant B. To build elements ofal high performing board by developing a set of operating principles and behavioral changes that help guide how the council wants to work together and with C. Toi identify individual and corporate issues ofs strategic importance to the City. D. Tol learn best practices for strategic planning, clarify how those differ from the strategic priorities you are currently using, and determine expectations for a city-specific strategic She: followed up with a discussion about guidelines for effective discussion and productive meetings. She highlighted the necessity for everyone to participate, to focus on interests rather than positions, to share all relevant information, to stay committed to resolving the problem, and to resist the temptation to make assumptions. She stated that it is also important to establish decision-making rules that will guide how the Town Council will make decisions going forward. Looking at new shifts among the Council and the community, Ms. Altman asked the members how these shifts give them hope for a better tomorrow. The ideas shared included:  Managers, and Clerk. senior staff.  planning process.  Morehead City Town Council Special Meeting January 12, 2024  1    Shift  Hope  Boom in people coming and moving to e Increase in Community involvement (events)  Morehead City  Anxiety that town will lose its small-town appeal; don'texperience some of the problems experienced in other areas of the state and Opportunity for growth in development. Tap into the contributions of newcomers. Accept that Morehead City will not remain the same and learn to accept change. Increases property values, reducing the opportunity for blue color workers tol live in the city while demand increases for the services they provide. Need workforce housing. Opportunity to get things done. Create congeniality and efficiency. Need to understand and know how to manage Everyone is eager to offer their opinion with no accountability (creating turmoil).  country.  New cohesive council Partisan politics Changing philosophies Social mediaj presence  them.  Service to the community (government . Loss of government leadership  employees) is waning as everyone is e Morehead City is the largest city in county;  focused on self Economy  imperative that we must lead by example. Unemployment; recruitment and retention Increase in regulations and reporting. Hard to keep up with all the changes. Great growth opportunities. Impact on existing residents. Demand for services (W/S infrastructure). Council made decisions in the past that set the city up: for growth. Year-round activity (events). New commerce opportunities. Hard to satisfy people. Opportunity to show respect, identify the actual issues, and build relationships.  Interest rates. challenges  Increase in laws and regulations No longer "season" community  I-42  World is angry  Creating an Effective Governing Team  Morehead City Town Council Special Meeting January 12, 2024  2    An effective team ensures that individual and collective needs are met, and the members enjoy working together. Governing boards face many challenges in creating an effective team.  Some ofthese were identified as:  Bound by more legal requirements than nonprofit or for-profit boards. Often do not think of group development as aj priority or a shared responsibility.  Must discuss interpersonal issues in open meetings. Contentious campaigns may reduce trust. each other's interests and motives.  Previous community involvement may cause board members to make assumptions about  High turnover can reduce commitment to group development.  Ms.. Altman reviewed the roles and responsibilities oft the mayor, council, and manager. A slidei identifying the different levels off focus for different leadership roles was displayed showing that the Town Council's] primary rolei ist to set thej purpose and vision for the city, establish strategic goals to bring the vision to fruition, and to help determine the priority actions items for each goal. Itt then becomes Staff's responsibility for the planning and oversight of the action items and managing projects and daily operations. It was confirmed that there is an annual written process  and ongoing verbal process for evaluating the manager and staff.  The Town Council participated in a team activity whereby groups of two (2) members discussed proposed expectations to determine 1) what clarifications are needed in order to determine ift these expectations will work in Morehead City, 2) what concerns might you have about these expectations, and 3) how will the City and the community benefit when these  expectations are met. The following examples were reviewed: Elected officials' relationships with employees are carefully managed.  What is the chain of command? Is it appropriate for the Council to talk with employees? There has been tension over this issue in the past. Now communication is open and Limitations: It is acceptable to talk with employees, but not to instruct them. Personnel matters should be discussed with the manager. Requests fori information will be honored; however, requests that require more than two (2) hours to: fulfill will be discussed with the manager due to impact on other assignments. All information will be shared with the full Communication about city business is a public record. Anytime three (3) or more council members are engaged in a discussion about city business, including email and texts, constitute a public meeting. Best practice is to never "reply all" when responding to emails.  encouraged.  Determine how to move forward.  Council.  Mr. Turner explained that he identifies his email messages to notify the receiver of how thei information should bel handed: INFORMATION ONLY, lets the receiver (Council) know this ise educational information only and noi response or action: is required, ACTIONITEM, hei is calling fori thei receiver (Council) to act upon thei request, or CONFIDENTIAL, lets thei receiver (Council)  know this is protected information and should not be discussed. Morehead City Town Council Special Meeting January 12, 2024  3    The Board acts as al body and is dealt with as a body.  Once ai matter is settled, leave it be and don'tcontinue to rehash it. "Don'tpick the scab."  Accept the decision oft the majority and move: forward.  Thel Manager and the Governing Body work together to develop al highly effective governing body.  Ensuring that everyone gets the same information regarding meeting agenda items. Share the draft agenda with the full Council in advance and allow time for comments before publishing it to the public. Mr. Turner explained that the Mayor and Manager prepare a draft agenda, and the: full Council may, at the start of a meeting, recommend that an item be removed or added. To ensure that Staff has ample time to gather necessary information, members should notify the Mayor or Manager in advance of any item they would like added to a council agenda. They may also bring the matter before the appropriate council committee or make ai request at a meeting for an item to Ms. Altman then moved into a discussion about how members can gauge their level of support for an item. She displayed a diagram where levels of support were color coded green, yellow, or red. In this example green indicates that the member is either: in full support ofar matter or agrees with most aspects of the proposal with only has minor questions about some aspect(s); yellow indicates that the member has significant concerns that need to be addressed in order for the member to support the proposal; and red indicates that the member has strong disagreement withi the proposal andi ist unlikely to changel his/her position. Itv wasi noted that thej publici is watching how the Town Council interacts together. The Council's behavior will either elicit confidence or  be added to the next Council meeting agenda.  distrust.  Next, the Town Council developed a set of Operating Principals, agreeing that they want 1. Maintains productiverehationshps even when topics are controversial. They will respect differences among Council members and speak positively about the team. 2. Does good work. They will make informed decisions to show that they know what they are doing. Council members will come to meetings prepared and ready to act. They will remain open-minded to hearing and being influenced by information and the perspectives 3. Acts in the best interests of all and makes the community proud. They will listen to the public enough to know what the public wants, and their votes will reflect that. They will consider and value comments made by all = citizens, residents, customers, clients, and 4. Educates constituents about why votes happen the way they do and the process for  tol be a Council that:  ofothers.  those just outside our boundaries (ETJ).  bringing issues to a vote.  Morehead City Town Courcil Special Meeting January 12, ,2024  4    5. Keeps up with change, especially technology, and embraces innovation.  6. Creates and foster relationships with the county and other area. local governments. They will share resources and information. This is particularly important as I-42 development  happens.  7. Stays at the policy-making level and will let staffi implement. East Carolina Council of Governments (ECCOG). Group broke for lunch at 11:45 a.m. andreconvened at 12:30p.m.  8. Leads proactively and as a regional thought leader in groups like the ENC. Alliance and  Wrapping up the earlier discussion, Ms. Altman asked for confirmation that each Council member is committed to upholding the operating principles established today. The Council  expressed unanimous agreement. Identifying Strategic Issues  The Town Council participated in another activity where groups of three (two council member and one staffmember) worked together to identify three wishes or strategic priorities they would like to see accomplished over the next several years that will nurture the best Morehead  City. The following were: identified:  Create venues/activities for children other than sports-related activities.  City cannot operate aj profit-making venture or givei funds to aj private entity to stand up a venue; however, it may offer limited incentives and partner with non-profits to: manage and maintain such activities (e.g. Jacksonville Children'sl Museum). Increased property values tend to drive such venues out oftown (i.e. business owner receives an offer to sell property they cannot refuse and the cost to stand up the Old Atlantic Beach draw bridge could have been transformed into fishing pier. Mr. Turner advised that old Atlantic Beach bridge footer is State property although it  same business elsewhere is tool high). Water access = expand current facilities and add more.  appears to be private property. Beautification of corridors and medians. Harmony and Council cohesion.  Work with investors and developers; offeri incentives tol help with start-up costs. Regulate growth to ensure it aligns with the vision for the City. This can be accomplished O Airbnbs are a challenge because they alter property values; this works against Long-term strategic plans to implement some aspects of the Morehead City 2032 Plan.  Regional cooperation to foster economic development. through the Unified Development Ordinance (UDO) rewrite. efforts to increase workforce housing. Address and resolve the lack of downtown parking.  Morehead City Town Council Special Meeting January 12, 2024  5    Important that iti is not set on a shelfand ignored.  Some of the elements within the 2032 Plan will not benefit citizens (i.e. Microbuses); therefore, Staffi is not focused on implementing the Plan as a whole, but rather examines the elements to determine value to residents, clients, or Other agencies such as thel North Carolina Department ofTransportation (NCDOT) will look to seei ifd desired initiatives are included in Morehead City 2032. Plan when Strong stormwater plan that addresses the areas where stormwater runoff is causing Upgrade outdated infrastructure (bridges, streets, etc.). Need to consider the increase in Looking at these desired objectives, it was noted that they all have an educational component requiring the City to educate the public on what aspects are and are not within the City's control and influence, as well as the efforts already underway to address them. Some fall under the control ofi industry partners such as NCDOT or the NC Railroad. It was noted that the City is seeking to address one ofthe major stormwater issues through a grant project. It was noted that the City is not doing a good job oftelling its story. Staff will also amend ordinances through  customers.  considering requests for support.  significant problems.  Improve/promote economic development.  traffic from I-42 when considering parking and street changes.  the UDO rewrite to reflect the realities ofs stormwater and tidal problems.  It was also noted that the reoccurring item on the list was economic development and that most are long-term, policy driven objectives. It will be important to collaborate with regional agencies to align efforts and share resources. For example, the desire to expand parking at the Newport River Waterfront Access Park will require the State's cooperation since they own the surrounding property. Mr. Turner shared that NCDOT's: next project, following the opening ofI- 42, will bet to expand the Morehead City/Radio Island bridge toi four (4) lanes, and they are already  in the process ofmoving the power lines under the water.  The Town Council then reviewed the recent accomplishments noting the following: Water/Sewer Facilities prior Council had the foresight to build in growth capacity  with a revenue component for self-funding  City Hall Parks  Fire-EMS Stations; latest is Station 3 that is now: in the planning phase SugarloafIsland Sustainability Project (NC Legislation-NCDPS) CBDG-DR AHDF Elijah's Landing Project SHUDNCDPSNCORI) DRMG Stormwater Drainage Improvement (10th Street Stormwater. Project) Calico Creek 2022 Stormwater Improvements AKPA-NCDE-DWI 2022 ARPA WWTP Improvements Project ARPA-NCDEQ-DWD) - Copper  $30 million grant projects  workforce housing project  Effluent Reduction Project  Morehead City Town Council Special Meeting January 12,2024  6    Fiscal Responsibility - Staff is committed to exhausting all other options before The group recognized that the Town Council does not] have a strategic plan inj place. Ithas short- and mid-range objectives. A strategic plan will ensure that the Council is committed to a corporate vision and will manage funds around accomplishing the actions needed to reach that vision. This strategic plan will set the: focus on where funds and resources are allocated and should be rooted in what the community values. Having a strategic plan can help reduce conflict because  recommending a tax increase.  the Town Council has a focused plan.  The strategic plan begins with a Vision that describes a long-term view of the ideal community and a Mission. Statement that describes what it will do to achieve its vision. Next, the Council will determine a set of Goals for each of the community focus areas to ensure that the mission will be accomplished. Performance Measures provide an indication ofhow well the goals are being met and an Action. Agenda describes the detailed steps that will be taken to achieve each goal, ensuring that everyone stays on track. A sample of Rolesville, NC's plan was shared. Quoting Dwight D. Eisenhour, Ms. Altman stated that the Plan "should be steeped in the nature of  the problem that you may one day be called upon to solve."  A question was raised about how to balance the financial demands for ongoing operations while trying to add strategic plans objectives. The Town Council was reminded that strategic objectives are multi-year objectives and there may only be one action item for an objective in any given year and it may or may: not] have ai monetary impact. Mr. Turner used for example, the vision of"Sense of Place" and that water access may be one strategic objective to accomplish this. This objective is then broken down into several action items that may be stretched out over several years. This will spread out the cost burden. He further shared that some cities tie every meeting agenda item to a strategic goal and ifiti is not tied to a goal, it is not put before the Town Council.  Measurements can be shared with the public through the City's website.  The Town Council members unanimously expressed favor for developing a strategic plan, rather than strategic goals. Once the goals are determined, they will establish short, medium, and  long-term objectives for each strategic goal. Accountability and Evaluation carrying out portions of the plan. NEXT STEPS  Evaluations will include measurements of how each level of1 leadership was successful in  Notes on today' 's session = shared within 2 weeks  Proposal ofhow to move forward - provided within 30 to 60 days  Operating Principals - drafted based on discussion for the Town Council to amend or  embrace.  Morehead City" Town Council Special Meeting January 12,2024  7    The minutes of the Committee meetings is sufficient to keep the Council informed; a Going forward, the Town Council will hold two (2) strategic planning sessions one in August/september and one in December/anuary prior to the budget meetings to track performance against the Plan and to access context to determine if adjustments to the strategic plan are needed. This will also provide an opportunity for the Town Council to The Town Council was asked to commit to this process for a minimum of two (2) full  written repetitive weekly report from the manager is not necessary.  check-up on their effectiveness and relationships. calendar years. All voiced agreement.  Participants identified the following as things that worked well and things that could be  improved upon for planning retreats and ongoing communication:  Worked well:  Offsite -1 no interruptions for staff Good choice for lunch Good dialogue Location was great Could be improved:  Staff engagement useful for education (Council's perspective)  Less staff engagement (Manager's perspective)  Half-day session would bel better (full day is too much to absorb)  Limit duplication ofr reports and individual meetings with manager and department heads Limit committee meetings to one hour and a half (1.5) or less. Committee should stay  focused on the agenda times.  ADJOURNMENT  Councilmember Walker made ai motion to adjourn., Councilmember. Abell seconded and  the motion was carried unanimously (5-0). The  3:30 p.m.  Jones,le,Mayor  Attest:  CITYA  EE  Cacu Candhla  Cathy Campbell, Cily Clerk  Morehead City Town Council Special Meeting. January 12, 2024  8