City Council Minutes Tuesday, February 11, 2025 Morehead City, North Carolina The Honorable Council ofMorehead City held its Regular monthly meeting on Tuesday, February 11, 2025, in the Council Chambers at City Hall located at 1100 Bridges Street, Morehead City, North Carolina. COUNCIL PRESENT: Mayor Gerald A. Jones, Jr.; Councilmembers Richard Abell, George Ballou, Lee Stiles, William Taylor, and Harvey Walker. STAFF PRESENT: City Manager Chris Turner, City Attorney Derek Taylor, Finance Director/Assistant City Manager Jewel Lasater, Public Services Director/Assistant City Manager Daniel Williams, Police Chief Bryan Dixon, Planning and Development Director Sandi Watkins, Economic Development Officer Katherine Metts, Fire-EMS Chief Courtney Wade, Human Resources Director Kristen Flexer, Public Information Officer Anna Smith, Assistant Finance Director Leeann Vinson, Grant Manager Kelli Jones, Purchasing Officer Sarah Currie, Police Officer Reid Long, and City Clerk Cathy Campbell. OTHERS PRESENT: Todd Wetherington of the Carteret County News-Times, Leah Hardesty, and Abby Weiser of Downtown Morehead City, Inc., Angie Bradshaw, Ron Cullipher, Zac Everhart, Holly Fletcher, Beverly Glover-Wood, Matt Johnson, Mark Kelly, Chuck Linder, Robert Purifoy, Neal and Chris Stetson, Diana Tootle, Sarah West, Jan Willis and Amy Wyborski. Mayor Jones called the Regular meeting ofthe Morehead City Council to order at 5:30 p.m. with a quorum present. He acknowledged the passing of former Councilmember Demus Thompson, who he referred to as a humble servant who always put others before himself. Mayor Jones asked everyone to keep his family in their thoughts and prayers. Councilmember Ballou gave the invocation, and Mayor Jones led the pledge of allegiance. PRESENTATIONS/RECOGNITIONS Mayor Jones presented a proclamation to Beverly Glover-Wood, President of the Arts Council ofCarteret County, proclaiming February as "Arts Month"in Morehead City. He stated that it is individuals like those serving the Arts Council that make Morehead City a better place. Mayor Jones encouraged everyone to support them. Morehead City Regular Council Meeting February 11, 2025 1 Ms. Glover-Wood announced that The Arts Council of Carteret County is currently hosting its 35th Annual "Art from the Heart" show at Atlantic Station on Atlantic Beach that will continue through, February 12, 2025, and it will host the "Student Art Show" during the week ofFebruary 18-28, 2025, from 3:00 - 7:00 p.m. daily. More information can be found on their website htps/www.artscouncilcarteret.ory In addition, she shared that the Arts Council's current show, "Ethnic Visions," 9> is being held at their gallery located at 1702 Arendell Street. CONSENT AGENDA ITEMS Mayor Jones asked if the Council desired to make any changes to the Consent Agenda. The Consent Agenda generally consists of housekeeping items that have been previously discussed and recommended by the Council Committees for Council consideration. Councilmember Stiles made a motion to adopt the Consent Agenda as presented. Councilmember Taylor seconded, and the motion was carried unanimously. (5-0) Included within the Consent Agenda were the following approvals: A. Approve the minutes of the January 14, 2025, Regular Council Meeting as presented. B. Approve the minutes of the January 30, 2025, Special Council Meeting as presented. C. Accept the Finance Director and Tax Collection Reports as Presented. D. Accept the Estimated Fund Balance Report as presented and recommended by the Finance and Administration Committee. E. Accept the January 2025 Grant Report as presented and recommended by the Finance and Administration Committee. F. Adopt Correction ofBudget Ordinance Amendment 2025-01, originally adopted on February 11, 2025. Ordinance is amended to remove duplicate wording that was included on Governmental Capital Project Budget Ordinance Amendment 2025-02. There was no change to the amounts originally presented. G. Adopt Budget Ordinance Amendment 2025-03 as presented and recommended by the Finance and Administration Committee. H. Adopt Governmental Capital Project Budget Ordinance Amendment 2025-04 as presented and recommended by the Finance and Administration Committee. I. Adopt Resolution 2025-R-06, Approving Request to Apply to the NC Land and Water Fund in support of fundraising efforts to acquire approximately 23 acres of riparian shoreline habitat to permanently protect, enhance, and sustainably manage coastal wetlands and Morehead City Regular Council Meeting February 11, 2025 2 maritime forest habitat along the Spooners Creek shoreline. J. Adopt Resolution 2025-R-01 of Plan Consistency that was not included in the January 14, 2025, motion to amend Section 16-12.40 of the UDO removing language specifying that a shared driveway is not permitted as part of a minor subdivision. K. Approve the Morehead City 2025-2026 health insurance renewal with Blue Cross Blue Shield and the North Carolina Health Plan as presented and recommended by the Finance and Administration Committee. L. Adopt Resolution 2025-R-07, a resolution of sympathy in remembrance of former Councilman Demus Lee Thompson. M Accept submittal of2024 Delinquent Real Estate and Personal Property Tax Lists per NCGS 105-269(a) including interest due and Authorize the Finance Director to post an advertisement ofthe 2024 delinquent tax lists in accordance with NCGS 105-369(a). The above ordinances are. filed in Ordinance Book #I0; Resolutions are attached to and made a part ofthe minutes herein. PUBLIC HEARINGS Consider Approval of the Local Incentive Agreement with 21st Century Software Technologies, Inc., and Ratify All Actions Taken by the City to Effectuate the Same Mayor Jones opened the public hearing and called on City Manager Chris Turner to present the Local Incentive Agreement between 21st Century Software Technologies, Inc. (21CS) and the City, as authorized by NCGS $ 158-7.1, extending assistance for the relocation of 21CS' corporate headquarters to 4408 Arendell Street, Morehead City. If approved, the City will appropriate up to $25,000 as a cash incentive grant to 21CS. The funds will be used to make property improvements, raising the property value to at least $409,500. The City will recover the investment over the next five (5) years through increased ad valorum and sales tax revenues and realize at a minimum of 23 full-time jobs, receiving an average weekly wage of$791. This public hearing was advertised in The Carteret County News-Times on Sunday, January 26, 2025. Copies of the hearing notice were also placed on the City's website and on the City Hall bulletin boards. Councilmember Stiles asked if21CS would be bringing in their own employees to the city or ift they would be hired locally. Mr. Turner stated that it will be a combination of both. 21CS, as a condition of the grant, will be required to hire locally. 21CS previously conducted "shadowjob postings" which showed that there is a high acceptance rate for high-tech jobs. Morehead City Regular Council Meeting February 11, 2025 3 At this time, Mayor Jones invited those wishing to speak in favor of or in opposition to the local incentive agreement to come forward. PUBLIC COMMENTS Seeing that no one was coming forward to speak, Mayor Jones closed the public hearing. As the chairman of the Finance and Administration Committee that reviewed the agreement, Councimember Ballou made a motion to approve the Local Incentive. Agreement with 21st Century Software Technologies, Inc. as presented, and ratify all actions taken by the City to effectuate the same. Councilmember Stiles seconded, and the motion was carried unanimously. (5-0) Consider Adoption of Ordinance 2025-0-03, Approving the Contiguous Annexation of 5280 Highway 70 (PIN 635607683383000) Mayor Jones opened the public hearing to consider the annexation of 5280 Highway 70 (PIN 635607683383000) and called on Planning and Development Director Sandi Watkins to make her report. Ms. Watkins reported that the City received a request from Johnny Jones, LaVonne Jones, and Renee Henderson to annex the 83-acre parcel located at 5280 Highway 70. Currently, there is a single-family dwelling located on the property, and it is zoned CH (Highway Commercial) District. Tax revenue will be based upon the 41-cent tax rate and the property value once a tax value is assigned to the property. The property was previously part of the larger parcel to the north. Ms. Watkins stated that the tax value included in the agenda memo reflected the older tax value. She then displayed, on the projection screen, an image depicting the annexation plat. The City Clerk investigated the petition and found, as fact, that the petition is signed by all owners of real property lying in the areas described in accordance with NCGS 160A-31(c). Notice of this public hearing was published once in The Carteret County News Times on Wednesday, January 22, 2025. Notices were also placed on the City's website and on the bulletin boards in City Hall, and signs were posted on the property. Councilmember Stiles asked about the owner's intent for the property. Ms. Watkins stated that typically the intent is for water and sewer connectivity. In this case, it is the staff's understanding that there is potential for an oil and tire change national chain to be located on the site. Although, any use allowed in the district could be placed upon the site. At this time, Mayor Jones opened the public hearing and invited those who wished to speak in favor of or in opposition to the proposed annexation to come forward. PUBLIC COMMENIS Morehead City Regular Council Meeting February 11, 2025 4 Seeing that no one was coming forward to speak, Mayor Jones closed the public hearing. As chair of the Planning Committee, Councilmember Taylor stated that the Committee recommends approval of the annexation and that this business serves as another improvement to our economic outlook. Councilmember Taylor made a motion to adopt Ordinance 2025-0-03, approving the contiguous annexation of 5280 Highway 70 (PIN 635607683383000) as presented. Councilmember Abell seconded, and the motion was carried unanimously. (5-0) Ordinance 2025-0-03 is filed in Ordinance Book #10. Consider Adoption of Ordinance 2025-0-06, Rezoning 103 Bay View Avenue (PIN 63661574007200) from R7 (Single-Family Residential) District to 0&P-CZ (Office and Professional-ConditionalZoning) District Including the Following Proposed Uses: "Dwelling, Single-Family" and "Accessory Building/Use," and Resolution 2025-R-08 of Plan Consistency in Accordance with N.C.G.S. 160D-605 for Map Amendment. Mayor Jones opened the public hearing and called upon Ms. Watkins, who advised that the City is in receipt of a request to rezone a .689-acre parcel in the corporate limits located at 103 Bay View Avenue from R7 (Single-Family Residential) District to OP-CZ (Office and Professional Conditional Zoning) District. A 1950s single-family dwelling on the property was recently demolished and the property is now vacant. The surrounding land use includes a combination of single-family, multifamily, commercial, and vacant land. Surrounding zoning includes CH (Highway Commercial), OP, PD (Planned Development), and R7. The property is located within the Midtown planning area and is classified as both "Commercial Corridor" and "Neighborhood Residential" on the Future Land Use map. If the rezoning request is approved, a future land use map revision will be necessary to bring the entirety of the property into the "Neighborhood Residential" future land use designation. A draft reasonableness and land use consistency statement was included in the meeting packet that is based upon the Planning Board's evaluation, which includes a recommendation of approval of the rezoning request and recommendation to amend the future land use map. Currently, all uses allowed in the R7 district may be placed on the property and the applicant is proposing to rezone the property to limit the uses to single-family detached and accessory uses. At this time, Ms. Watkins displayed the site plan on the projection screen, which showed a1 total of five (5) lots proposed to be constructed upon the site with 50 X 120' dimensions totaling 6,000 square feet per lot. The current R7 district requires a minimum of 7,000 square feet with 65' wide lots. The proposed OP district allows a minimum of 5,000 square feet with 50' wide lots. The current zoning allows a maximum of four (4) lots based upon area alone, with potential for only three (3) lots due to minimum lot width requirements. Morehead City Regular Council Meeting February 11, 2025 5 The Planning Board discussed this request at its January 28, 2025, meeting and unanimously recommended approval, with Diana Tootle making the motion and Daniel Fischler seconding, contingent upon the following conditions. The applicant and property owner have agreed to these conditions. 1. Uses allow on the property will be limited to "Dwelling, single-family" and "accessory building/use. 99 2. Development ofthe property shall be consistent with the site plan ofDecember 17, 2024, and entitled "Rezoning Request R71 to 0&P-CZ, 103 Bay View. Avenue, Lots L5-L14 Blk 30 Morehead Bluffs" prepared by The Cullipher Group, P.A. 3. The maximum structure height shall be limited to 50 feet. which is the maximum height allowed for residential zoning districts in Morehead City. Notice of this public hearing was published in The Carteret County News-Times twice, on Sundays, January 26 and February 2, 2025. Notice was also placed on the City's website, on the bulletin boards in City Hall. The property was posted, and notices were mailed to abutting property owners, At this time, Mayor Jones invited those who wished to speak in favor of or in opposition to the proposed rezoning to come forward. PUBLIC COMMENTS Ron Cullipher, Engineer Representing PALCO Investments: Mr. Cullipher stated that PALCO prefers to build single-family residential products at these locations. They believe it is a good use for the property as opposed to other allowable products such as duplexes. 0&P- CZ allows the 50-foot lot width the key difference between it and R7. Seeing that no one else was coming forward to speak, Mayor Jones closed the public hearing. Councilmember Taylor made a motion to adopt Ordinance 2025-0-06, rezoning 103 Bay View Avenue (PIN 636615740072000 from R7 (Single-Family Residential) District to 0&P-CZ (Office and Professional - Conditional Zoning) District with the three (3) stated and accepted conditions and including the following proposed uses: "Dwelling, single-family" and "A Accessory building/use, " and Resolution 2025-R-08 of Plan Consistency in accordance with N.C.G.S. 160D-605 for Map Amendment. Councilmember Abell seconded, and the motion was carried unanimously. (5-0) Ordinance 2025-0-06 is fled in Ordinance Book #10; Resolution 2025-R-08 is attached to and made a part ofthe minutes herein. Morehead City Regular Council Meeting February 11, 2025 6 Consider Adoption of Resolution 2025-R-09, Authorizing an Amendment to the Morehead City Plan 2032 Comprehensive Land Use Plan, Reclassifying 103 Bay View Avenue (PIN # 636615740072000) from "Commercial Corridor" and "Neighborhood Residential" to "Neighborhood Residential" in its Entirety on the. Future Land Use Map. Mayor Jones opened the public hearing and called on Ms. Watkins to make her report. Ms. Watkins stated that due to the last item being approved, it is necessary to approve a corresponding future land use map amendment. A portion of the subject parcel is currently located within the "Commercial Corridor" future land use map designation and needs to be amended to Neighborhood Residential." Notice of this public hearing was published twice in The Carteret County News-Times, on Sundays, January 26 and February 2, 2025, and the Coastal Area Management Act (CAMA) District Planner was notified in accordance with CAMA land use plan amendment requirements. Notices were also placed on the City's website, on the bulletin boards in City Hall, and upon the property. At this time, Mayor Jones invited those who wished to speak in favor of or in opposition to the proposed Morehead City Plan 2032 Comprehensive Land Use Plan revision to come forward. PUBLIC COMMENTS Seeing that no one was coming forward to speak, Mayor Jones closed the public hearing. Councilmember Taylor made a motion to adopt Resolution 2025-R-09, authorizing an amendment to the Morehead City Plan 2032 Comprehensive Land Use Plan reclassifying 103 Bay View Avenue (PIN! # 636615740072000) from "Commercial Corridor" and "Neighborhood Residential" to Neighborhood Residential" in its entirety on the Future Land Use Map. Councilmember Abell seconded, and the motion was carried unanimously. (5-0) Resolution 2025-R-09 is attached to and made a part of the minutes herein. CITY MANAGER'S REPORT Mr. Turner shared in the Mayor's appreciation of former Councilmember Demus Thompson's 20 years of service to the city, as well as his service to our country. He then reminded the Council that all non-24/7 city offices will be closed Monday, February 17, 2025, in observance of Presidents Day. Mr. Turner extended thanks to the Carteret County Fire & EMS Commission for their support and confidence in recommending that an additional provision of$36,000 to be added to the City's request of $252,000 from the Mitchell Village and Wildwood Fire and Rescue Fund. Morehead City Regular Council Meeting February 11, 2025 7 He said this speaks of the high confidence the County has in Morehead City's staff ability and commitment to delivery life safety support across the City's service districts and county wide through mutual aid response. The additional funding will be used to purchase an unmanned aerial vehicle (UAV) drone package for Morehead City Fire-EMS. This drone package is the only one in the county including DJI Matrice 30T thermal imaging and life safety features. The package enhances our current UAV capabilities across Fire, Police, Public Services, and the Public Information Officer's office, and will add four additional Federal Aviation Administration (FAA) Part 107 certified operators to our current flight trained and certified operators located throughout several city departments. He commended ChiefWade and the Fire-EMS Department for leading this initiative. Chief Wade came forward to share that the offer was made after confirming that this type of drone technology was not currently owned by the City. As a result, the Commission approved a $288,000 contribution to purchase equipment for the water rescue team. Mr. Turner advised that Morehead City has not yet received the 2025 revaluation values from the County, but Staffis hopeful to receive those soon. This information is key to the City's budget, planning and fiscal forecasting. Cape Carteret Town Manager Frank Rush notified Mr. Turner today that their town unanimously passed a local resolution in opposition of the "down zoning" elements of Senate Bill 382 using the actions and language established by Morehead City. Mr. Turner thanked the City Council for leading the charge in our county toward that effort and to our City Staff for elevating the potential impacts which needed immediate action. Mr. Iurner shared that he attended the NC East Alliance Vision 2025, along with Mayor Jones on January 31, 2025. He stated that this very beneficial event featured keynote speaker Dr. Laura Ullrich, an economist from the Richmond Federal Reserve, and offered dedicated time for them to speak with legislators. He stated that it was a very powerful half day in support of Morehead City initiatives. He encouraged the Council and staff to attend this event next year. The Council's FY25-FY28 Strategic Plan is now available to the public on the City's website and has been distributed across all media touchpoints. Mr. Turner will initiate discussions regarding public parks license agreements early and; thereafter, draft agreements for both Riverfront Entertainment (Morehead City Marlins) and Carteret Community College will be presented for Committee review. The Town of] Beaufort has named Matt Zapp, formerly manager of the Town of Emerald Isle, as its next Town Manager. Mr. Turner stated that he welcomed Mr. Zapp back to the "mainland,' I and said that he was thankful to see Mr. Zapp continuing to share his service, knowledge, and coastal expertise within Carteret County. Morehead City Regular Council Meeting February 11, 2025 8 In closing, Mr. Turner announced that he will be out of the region during the week of February 25, 2025, through March 5, 2025. He will advise on the delegation of authority very soon. CITIZEN REQUESTS/COMMENTS (3 Minute Time Limit) Chuck Linder, 123 Center Drive, Atlantic Beach, President of Morehead City Little League: Mr. Linder provided some history about the Little League organization and stated that on March 22, 2025, Morehead City Little League will celebrate their 70th Anniversary at the opening ceremonies, and he invited all to attend. Mr. Linder expressed concern about the news that Morehead City is considering acquiring Swinson Park from Carteret County. He proposed that although this would be an addition to the City, it would be a deficit to Morehead City Little League, noting the subsequent plans for the Recreation Center that proposes to eliminate the practice fields at this location. He explained that years ago there were ballfields throughout the city, but as the city grew, ballfields were removed. He stressed the need for more fields to meet the current demand of 25-30 Little League teams per season, and the growing interest in girls' softball. He asked that the City work in cooperation with these Leagues and surrounding communities to find a solution that will benefit all. Angie Bradshaw, 1815 Olde Farm Road: Ms. Bradshaw stated that she was present to represent Morehead City Softball. She also advocated for more fields to accommodate and grow baseball and softball leagues. She quoted from the last City Council minutes where it was proposed that the City would establish four baseball fields at Swinson Park, expressing concern about how that will impact upon the one softball field that is there now. The softball league also uses the fields at the Recreation Center, which was proposed to be dedicated to soccer and Lacrosse. She advised that Morehead City Little League will host the district tournament this year, bringing 90 to 100 wood bat teams to the City. She suggested that investing in facilities for these sports programs could have as much impact on the City's economy as the big box stores. She was supportive of Mr. Linder's proposal that all groups work together to find a solution beneficial to all. COUNCIL COMMENTS Councilmember Abell thanked Mr. Linder and Ms. Bradshaw for their comments. He shared in the condolences for former Councilman Demus Thompson's family and announced the passing of a second pillar ofthe community, Jennie Galantis, the wife of former Councilman and Mayor Nick Galantis, who served the city for 26 years. He noted that Mr. Thompson was a true southern gentleman. In addition, he shared that the mother of retired Police Lieutenant Renee Hester and the mother-in-law of current employee Roosevelt Nelson, Helen Parmley Harrison, also passed away this week. Ms. Harrison was a long-time employee of Carteret General Hospital's Radiology Department. He asked everyone to keep these families in their thoughts and prayers. In closing, Councilmember Abell commended Finance Director/Assistant City Manager Jewel Lasater and her staff, naming each one individually, for earning the Triple Crown. The Triple Crown is awarded to government units that that successfully earn the Morehead City Regular Council Meeting February 11, 2025 9 following from the Government Financial Officers Association: Achievement of the Popular Annual Finance Report, the Certificate of Achievement for Excellence in Financial Reporting, and the Distinguished Budget Presentation Award. Councilmember Taylor also expressed appreciation for the contributions made by Demus Thompson and Jennie Galantis. He then addressed Mr. Linder and Ms. Bradshaw, stating that he would also like to improve and expand baseball and softball programs and would encourage public input as the city moves forward, but pointed out that the City must serve all groups without eliminating any. It was his opinion that keeping children in sports would reduce the number ofjuveniles in our prisons. Councilmember Stiles echoed the comments made regarding the loss of great citizens of our community. He then addressed Mr. Linder and Ms. Bradshaw, stating that he was in favor ofworking together to improve sports programs. Councilmember Ballou thanked Mr. Linder and Ms. Bradshaw for their comments and commitment to the youth of Morehead City, agreeing that he does not want to see sports programs diminished or cancelled. He stated that he had the pleasure of serving alongside Councilmember Thompson and shared that he was a strong advocate for the youth and was a true southern gentleman. Councilmember Ballou announced that another pillar of the community, Awni "John" Haman, also passed this week, who he said was also true gentleman who loved the city and was always willing to help. Councilmember Walker echoed all the prior comments stating that these were great losses to the community and each will be missed. He then addressed Mr. Linder and Ms. Bradshaw, vowing to obtain more property for these programs and such would start very, very soon. Mayor Jones also recommended Ms. Lasater and the Finance Department for qualifying for the Triple Crown award, which is the highest financial award for government agencies. He shared that only 167 counties and cities from across the nation and only 16 from North Carolina have earned this award, with Greenville and New Bern being those closest to Morehead City. In closing, Mayor Jones advised that there are no concrete plans for the City to acquire Swinson Park. It is only being investigated at this time. APPROVE THE. JANUARY 14, 2025, CLOSED SESSION MINUTES AS PRESENTED After a silent review ofi the minutes, Councilmember Taylor made a motion to approve the January 14, 2025, Closed Session minutes as presented. Councilmember Walker seconded and the motion was carried unanimously. (5-0) CLOSED SESSION Morehead City Regular Council Meeting February 11, 2025 10 Councilmember Ballou moved to enter into Closed Session at 6:21 p.m. per N.C.G.S. 143-318.11(A)4) to discuss matters relating to the location or expansion of industries or other businesses in the area served by the public body, including agreement on a tentative list of economic development incentives, or to discuss matters relating to military installation closure or realignment. Councilmember Stiles seconded, and the motion was carried unanimously. (5-0) Mr. Turner asked for approval to retain Finance Director/Assistant City Manager Jewel Lasater, Public Services Director/Assistant City Manager Daniel Williams, and Planning and Development Director Sandi Watkins for the meeting. Permission was granted. Councilmember Ballou moved to return to Open Session at 7:16p.m. Councilmember Taylor seconded, and the motion was carried unanimously. (5-0) ADJOURNMENT There being no other business to discuss, Mayor Jongs adjourned the meeting at 7:16 p.m. GeralA. Jones, J., Mayor Attest: atki Cancla Cathy Campbel, City Clerk * V, C. 1858 * Morehead City Regular Council Meeting February 11, 2025 11