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HomeMy WebLinkAboutAgenda - 12-15-2009 - 4gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 2009 Action Agenda Item No. ~- -~ SUBJECT: Hillsborough -Orange County Strategic Growth Plan -Phase II (Interlocal Agreement Initiative) DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 1. BOCC Previously Approved Version of Agreement (Amendments Proposed by Orange County Staff in June are shown in Track Changes Format) 2. October 12, 2009 Town of Hillsborough Meeting Materials and Minutes 3. Current Version of Interlocal Agreement for Adoption Consideration 4. Resolution Ratifying Interlocal Agreement INFORMATION CONTACT: Craig Benedict, Planning Director, 245- 2592 Perdita Holtz, Planning Systems Coordinator 245-2611 PURPOSE: To consider the version of the Interlocal Agreement adopted by the Town of Hillsborough. BACKGROUND: At the June 2, 2009 BOCC meeting, the Board approved an Interlocal Agreement with the Town of Hillsborough pertaining to the jointly prepared Strategic Growth Plan. The version the BOCC approved contained language added by County staff that the Town of Hillsborough had not approved on April 13, 2009 in its version of the Interlocal Agreement. The Town Board considered the BOCC-approved version of the Agreement at its October 12, 2009 meeting. However, the Town Board declined to adopt the BOCC-approved version of the Agreement. The language the Town Board declined to include in the Agreement is found in Sections 2.3 and 3.2 of the BOCC-approved version of the Agreement (see Attachment 1). The inclusion of this language would have: • Ensured properties in the Orange County Urbanizing Area (orange areas on map) are developed under Orange County standards (jointly developed for this area) prior to annexation into the Town of Hillsborough, and • Ensured Orange County Urbanizing Area representation on the Hillsborough Planning Board and Board of Adjustment. However, Town staff and, ultimately, the Town Board were uncomfortable with this language and its impact on existing Town processes. At this time, County staff has re-evaluated the language and, although it would have been beneficial to the County to include the language, is comfortable with omitting the language from the Agreement in the interest of getting an Agreement in place with the Town in order to further implement the Strategic Growth Plan. After the joint land use plan and implementing regulations are in place, the Town of Hillsborough thought these provisions would have better context and likely be acceptable. The Interlocal Agreement is the next step of on-going coordinated planning efforts between the Town of Hillsborough and Orange County and it is a BOCC 2009-10 Priority (P-7). Additionally, the adopted Orange County Comprehensive Plan supports continued coordinated planning. Historical Background Town of Hillsborough/Orange County Urban Transition Area Task Force The current coordinated planning process began in 2004 with the appointment of a joint Urban Transition Area Task Force which sought to identify areas around the Town of Hillsborough that could be serviced by public water and sewer. An impetus to study this issue was that the Town of Hillsborough's Primary Service Area for water and sewer services, as contained in the Water and Sewer Management Planning and Boundary Agreement (a joint agreement between Orange County, OWASA, and the Towns of Chapel Hill, Carrboro, and Hillsborough adopted in 2001-see map in Attachment 3), extends far beyond the Town's extraterritorial jurisdiction (ETJ) and exceeds the Town's capacity for providing these services. The Urban Transition Area Task Force completed its work in early 2005 when the County and Town accepted the resulting Principles of Agreement and Map. Since the task force was not able to identify specific areas for water and sewer services, one of the Principles was for the two governments to jointly contract the services of a consultant to prepare a Joint Strategic Growth Plan. Town of Hillsborough/Orange County Strategic Growth Plan -Phase I In early 2006, the Town and County embarked upon a Strategic Growth Plan with the assistance of a steering committee and retained consultant Clarion Associates. The project culminated with a Strategic Growth Plan Report in late 2006 and became known as "Phase I" of the Hillsborough-Orange County Strategic Growth Plan as the plan called for additional work to occur and the preparation of an Interlocal Agreement. Town of Hillsborough/Orange County Strategic Growth Plan -Phase II Phase II of the Strategic Growth Plan, which is the current phase culminating in the Interlocal Agreement under consideration, began in the Spring of 2008 with the appointment of the Hillsborough-Orange County Interlocal Agreement Steering Committee tasked with developing an agreement to promote coordinated planning in central Orange County between Orange County and the Town of Hillsborough. Clarion Associates was retained to coordinate the Committee and draft the agreement. The Committee completed its work, including a robust public input meeting schedule, in early 2009 and the Interlocal Agreement was a topic of discussion at the joint meeting between the BOCC and the Town of Hillsborough Board of Commissioners on February 19, 2009. Future implementation of the Agreement will result in: • adoption of a Joint Land Use Plan (map and text), • creation of Urbanizing Areas with underlying County authority with Town of Hillsborough Zoning Administration, 3 • adjustment of the Town's Extra Territorial Jurisdiction (abandonment of some existing ETJ by the Town and the County granting new ETJ), and • amendments to the County's Zoning Ordinance and Atlas, as well as Subdivision Regulations. Article 2 of the Agreement indicates the proposed process for these amendments, which are to be completed in a "timely manner." These future amendments to the Land Use Element (map and text), Zoning Ordinance, Zoning Atlas, and Subdivision Regulations will follow the normal processes for adopting changes to the respective document (i.e., advertising, notification, and joint public hearing). Similarities to Chanel Hill / Carrboro /Orange County Joint Planning Agreement This agreement has many similarities to the existing Joint Planning Agreement but pertains to a different area of the County. The concepts are similar -specifically, focused growth areas matched with planned public services and an anti-sprawl zone, with both local governments coordinating land use planning. Orange County and its municipalities continue to be the leaders in subregional planning agreements. FINANCIAL IMPACT: There is adequate existing Planning staff to complete the tasks enumerated in the Agreement within the Department work plan. Tasks are expected to occur within the next two fiscal years (2009-10 and 2010-11). There will be future costs for future legal advertisements and notifications when Land Use Plan (map and text), Zoning Ordinance (map and text), and Subdivision Regulations amendments are brought forward. RECOMMENDATION(S): The Manager recommends the Board: 1) Approve the Resolution ratifying the Interlocal Agreement and authorize the Chair to sign the Resolution and the Agreement contained in Attachment 3, and 2) Direct staff to move forward with implementation by completing the tasks listed in Article 2 of the Agreement. Amendments Proposed by Orange County Staff {in Track Changes Format) Attachment '~. 4 Hi[Isborough-Orange Interlocal Land Management Agreement Central Orange Coordinated Area THIS AGREEMENT, made and entered into this day of , 2009, by and between the COUNTY OF ORANGE, a political subdivision of the State of North Carolina, and the TOWN OF HILLSBOROUGH, a municipal corporation duly created and existing under the laws of North Carolina. WITNESSETH: In consideration of the public benefits expected to flow from the cooperative efforts of the parties in establishing ~a coordinated and comprehensive system of planning within their respective areas of public concern, the parties to this Agreement hereby mutually agree as follows: ARTICLE I. PURPOSE, DEFINITIONS, EFFECTIVE DATE Section 1.1 Purpose of the Agreement The purpose of this Agreement is to establish a method of coordinated and comprehensive planning in the Central Orange Coordinated Area, as defined herein. Section 1.2 Definitions A. Central Orange Coordinated Area. The area displayed on the attached map labeled as Exhibit A. B. Hillsborough Jurisdiction. Areas that are either within the Town Limits of Hillsborough, or within Hillsborough's Extraterritorial Area. The Town of Hillsborough is responsible for adopting and administering land use regulations within these areas. The area under Hillsborough's Jurisdiction may be amended over time either as annexation occurs, or as changes are made to the Town's Extraterritorial Area boundary. On the attached Exhibit A, areas within Hillsborough's jurisdiction are shown in shades of gray. C. Orange County Jurisdiction. All areas included in the attached map labeled as Exhibit A which are not within Hillsborough's Jurisdiction as defined above. Orange County is responsible for adopting and arranging for administration of land use regulations in this area. D. Hillsborough Urban Services Area. An area, shown on the attached map labeled as Exhibit A, which includes properties that are currently within the Hillsborough Jurisdiction, and also areas in the Orange County Jurisdiction that are expected to 5 develop according to municipal standards, within which it is anticipated that municipal services will be provided, and within which property is expected to be annexed into the Town Limits of Hillsborough as development occurs. It is not expected that Hillsborough will extend water and sewer service outside of this Urban Services Area except for reasons of public health, safety, and general welfare. E. Hillsborough Urbanizing Area. A portion of the Hillsborough Urban Services Area, as shown on the attached map labeled as Exhibit A, but outside the area designated as "Hillsborough 3urisdiction," within which Hillsboroush development standards will be applied as described in this Agreement. Property is expected to be annexed into the Town Limits of Hillsborough as development occurs. (Shown in the color blue on Exhibit A.) F. Orange Countx,Urbanizing; Area. A portion of the Hillsborough Urban Services area, as shown on the attached map labeled as Exhibit A, but outside the area designated as "Hillsborough Jurisdiction" and outside the area labeled "Hillsborough Urbanizing Area," within which Coun development standards will be applied as described in this Agreement. Annexation is possible. Public utilities maybe extended as feasible. (Shown in the color orange on Exhibit A.) G. Existing Water Service Area Outside Urban Services Area. An area shown on the attached map labeled as Exhibit A which currently is served by Hillsborough's municipal water system, but which is outside the boundary of the Hillsborough Urban Services Area, and for which it is not intended that other municipal services will be provided, and for which annexation is not intended. H. Notification Area. All areas included within the Central Orange Coordinated Area boundary as shown on the attached map labeled Exhibit A, but which are not located within any of the areas defined in paragraphs E through H above. (Shown in white on Exhibit A.) There will be no annexation of property within the Notification Area. I. Central Orange Coordinated Area Land Use Plan. Aland use plan to be adopted by the parties to this agreement subsequent to enactment of this agreement for the areas on Exhibit A shown in blue, orange, and white (all land within the Central Orange Coordinated Area except that which is within Hillsborough's jurisdiction), and as maybe amended from time to time. Section 1.3 Effective Date and Duration A. This Agreement shall become effective upon signatures of the parties. B. This Agreement, including any Appendix hereto, shall remain in effect until terminated by mutual agreement or by withdrawal of either party. Subject to 2 L termination provisions of this Agreement, annexation provisions of this Agreement shall be valid for not more than 20 years and may thereafter be renewed. A party may not withdraw until it holds a public hearing on the proposed withdrawal with thirty (30) days notification of the hearing, followed by action and written notice to the other party not sooner than thirty (30) days following the closing of the public hearing. The withdrawal shall be effective one (1) year following receipt by the other party of the written notice. C. Upon execution of this Agreement, the parties agree that each will take, in a timely manner, all steps (including but not limited to preparation and adoption of Zoning Maps and all required land use ordinance amendments) required to cause this Agreement to become effective, and will notify the other party with those steps have been taken. ARTICLE 2. ACTIONS SUBSEQUENT TO EXECUTION OF AGREEMENT The parties to this agreement shall initiate work. to complete the following, subsequent to execution of this agreement: Section 2.1. Adoption of Joint Land Use Plan A. Hillsborough shall adopt a Land Use Plan designating future land use for the Hillsborough Urbanizing Area and the Orange County Urbanizing Area (areas shown in blue and orange in Exhibit A}, inviting comments from the Orange County Board of Commissioners. B. Upon receipt of the adoption described in Section 2.1.A, the Orange County Board of Commissioners shall consider endorsing the land use designations adopted by Hillsborough, adding land use designations for the Notification Area {area shown in white on Exhibit A). C. Both parties, Hillsborough and Orange County shall then either (1) Each adopt the composite land use plan if deemed to be acceptable; or (2) If one or both parties desire changes to be made to the recommendations, the parties shall arrange for negotiation and agreement on such changes followed by joint approval. Section 2.2. Adjustment of Hillsborough Extraterritorial Jurisdiction A. Hillsborough shall prepare a request to submit to Orange County, offering to relinquish existing Extraterritorial Jurisdiction as part of County action to adjust the ETJ boundary as shown on Exhibit A, and requesting extension of Extraterritorial Jurisdiction as shown on Exhibit A. 7 B. Upon receipt of the request described in Section 2.1.A, Orange County shall take action to amend the Hillsborough Extraterritorial Jurisdiction boundary, as shown in Exhibit A. Section 2.3. Adoption of Zoning and Subdivision Regulations A. Fallowing the land use designations of the jointly adopted Land. Use Plan described in Section 2.1 above, Hillsborough shall adopt zoning and subdivision regulations (including amendments to the Zoning Map) for application to ETJ areas, and recommend Orange County adoption of zoning and subdivision regulations (including amendments to the Zoning Map) for the Hillsborough Urbanizing Area and the Orange County Urbanizing Area (areas shaded blue and orange on Exhibit A). Additionally. Hillsborough shall revise its Zoning Ordinance nertainin~ to membership on its Plaruiing Board and Board of Adjustment to provide for annointment of one ~1) Orange County Urbanizing Area representative on each of these boards B. Upon receipt of the actions described in Section 2.3.A and following the land use designations of the jointly adopted Land Use Plan described in Section 2.1 above, Orange County shall take action to amend zoning and subdivision regulations (including amendments to the Zoning Map) far application to the Hillsborough Urbanizing Area, the Orange County Urbanizing Area, and the Notification Area (areas shaded blue, orange and white on Exhibit A), including areas far which Hillsborough Extraterritorial Jurisdiction has been rescinded. ARTICLE 3. ADOPTION, ADMINISTRATION AND AMENDMENT OF STANDARDS Section 3.1. Standards Within the Hillsborough Urbanizing Area (shown in blue on Exhibit A) A. Hillsborough shall prepare a Zoning Map for that portion of the Urban Services Area that lies within the Hillsborough Urbanizing Area and shall recommend its adoption by Orange County. Upon approval and adoption of this Zoning Map by Orange County as prescribed in Subsection B of this Section, this shall become part of the Orange County Zoning Ordinance. The Zoning Map shall be prepared using zoning districts which correspond to the text of the Hillsborough Zoning Ordinance. B. Upon completion of the Zoning Map referred to in Section 3.1A, Orange County shall amend its Zoning Atias in accordance with said Map. Orange County shall also adopt by reference the Hillsborough Zoning Ordinance and Subdivision Regulations and make those provisions applicable to the Hillsborough Urbanizing Area. 8 Section 3.2. Standards Within the Orange County Urbanizing Area (shown in orange on Exhibit A} Within the Orange County Urbanizing Area, the Orange County Zoning Ordinance (including Zoning Atlas) and Subdivision Regulations that are in effect on the effective date of this Agreement shall remain in effect unless amended in accordance with Section 3-:~3_9 of this Agreement. Development within the Orange County Urbanizing Area is intended to occur under Orange Counter regulations prior to any annexation of lands by the Town of Hillsborough. Section 3.3. Standards Within the Notification Area (shown in white on Exhibit A) Within the Notification Area, the Orange County Zoning Ordinance (including Zoning Atlas) anal Subdivision Regulations that are in effect on the effective date of this Agreement shall remain in effect unless amended in accordance with Section 3~3~9 of this Agreement. Section 3.4. Permit Administration within the Hillsborough Urbanizing Area shown in blue on Exhibit A) A. Except as otherwise provided in Sections 3.S and 3.6, the Town of Hillsborough shall perform all functions related to the administration of the ordinances referenced in Section 3.IB. Subject to the remainder of this Section, Hillsborough shall administer the referenced ordinances just as if the land were located within the Town's planning jurisdiction. Administration shall include, but not be limited to, the following: 1. Receipt and processing of applications; 2. Consideration by applicable advisory and permit-issuing boards; 3. Issuance of any required permits and certifications; 4. Review and approval of required site/constructionplansv S. Conducting necessary site/building inspections; 6. Enforcement of all standards; 7. Any other acts or things necessary to administer the Ordinance; and shall ensure that a developer complies with all applicable ordinance requirements and the terms and conditions of any permit issued by the Town. The Town may also charge fees for processing applications, conducting site/construction plan reviews, and carrying out site/building inspections in accordance with fee schedules applicable within its planning jurisdiction. B. Whenever Hillsborough receives an application for a development permit as defined in this Agreement relating to land within the Hillsborough Urbanizing S 9 Area, it shall forward copies of the application to Orange County for review. Hillsborough shall establish timetables to ensure that Orange County has an opportunity to make recommendations regarding such applications within the framework of the County's regularly scheduled meeting dates. To the extent possible, the timetables of the County and the Town shall provide for simultaneous review to expedite application processing, as described in Exhibit B, an existing Courtesy Review agreement;--}~e~vi~: provided, however, the Town may not vote to issue or deny a permit until it has received the recommendations of Orange County or until the expiration of sixty (60) days after Orange County has received the application, whichever comes fist. Section 3.5. Permit Administration Within the Orange County Urbanizing Area (shown in bl~e orange on Exhibit A) I A. Except as otherwise provided in Section 3.8 and the remaining provisions of this Section, Orange Coutlty shall perform all functions related to the administration of the ordinances referenced in Section 3.2. B. Whenever Orange County receives an application for a development permit as described in the "Courtesy Review Agreement" attached as Exhibit B, relating to land located within the Orange County Urbanizing Area, it shall forward copies of the application to Hillsborough for review. The County shall establish timetables to ensure that Hillsborough has an opportunity to make recommendations regarding such applications within the framework of Hillsborough's regularly scheduled meeting dates. To the extent passible, the timetables of the County and the Town shall provide for simultaneous review to expedite application processing; provided, however, the County may not vote to issue or deny a permit until it has received the recommendations of Hillsborough or until the expiration of sixty (60) days after Hillsborough has received the application, whichever comes first. . { {Note: covered below in 3.6.B} } Section 3.6. Permit Administration Within the Notification Area (shown in white on Exhibit A) A. Except as otherwise provided in Section 3.8 and the remaining provisions of this Section, Orange County shall perform all functions related to the administration of the ordinances referenced in Section 3.2. B. Whenever Orange County receives an application for a development permit as described in the "Courtesy Review Agreement" attached as Exhibit B, relating to land located within the Notification Area, it shall forward copies of the application to Hillsborough for informational purposes. 6 10 Section 3.7 Enforcement Remedies A. Permit revocation, if necessary and authorized by ordinance, shall be handled by the same individual or board authorized to issue the original permit. B. Within those portions of the Hillsborough Urbanizing Area where the ordinances specified in Section 3.1B are administered by Hillsborough, enforcement efforts through the use of civil penalties, criminal penalties or injunctive relief shall be initiated by Hillsborough. Hillsborough shall have the duty to defend at its own expense and shall indemnify and hold harmless, to the extent that it can legally do so, Orange County, its Board of Commissioners, its advisory boards, its staff and all members of its boards and staffs, in their official and individual capacities, from any and all claims, actions, proceedings, expenses, damages or liabilities, including attorneys' fees and court costs, resulting from the Town's administration of the ordinances specified in Section 3.1B. C. Orange County shall notify Hillsborough and Hillsborough shall notify the County as soon as practicable thereafter of any such claim, action or proceeding. Section 3.8 Land Use Plan Amendments The process for amending the Joint Land Use Plan shall be the same as the process for initially adopting the plan, as spelled out in Section 2.1. Section 3.9 Ordinance and Zoning Map Amendments A. Proposed amendments to the Zoning Ordinance or Zoning Map applicable to properties within the Hillsborough Urbanizing Area shall be initiated by or referred to Hillsborough. No such amendment may become effective until after it has been adopted by both Orange .County and the Town of Hillsborough, following a joint public hearing by both governing bodies. In reviewing and taking action on such proposed amendments, the adopted Joint Land Use Plan shall be considered in good faith as a guide to decision-making. B. Proposed amendments to the Zoning Ordinance or Zoning Map applicable to properties within the Orange County Urbanizing Area shall be initiated by or referred to Orange County and adopted in accordance with the procedures set forth in County ordinances. No such amendment may become effective until after it has been adopted by both Orange County and the Town of Hillsborough, following a joint public hearing by both governing bodies. In reviewing and taking action on such proposed amendments, the adopted Joint Land Use Plan shall be considered in good faith as a guide to decision-making. 7 11 C. Whenever Hillsborough proposes to amend the text of its Zoning Ordinance or Subdivision Regulations, Hillsborough shall deliver a copy of the full text of the proposed amendment to Orange County not later than thirty (30) days before the date of the public hearing on any such amendment. However, with the written consent of the Orange County Manager or his/her designee, this thirty (30) day period maybe reduced to not less than ten (10) days. Unless Orange County files a written objection on or before the date of the public hearing on the proposed ordinance amendment, then adoption of the amendment by Hillsborough shall automatically effect a corresponding amendment to the ordinance adopted by reference by Orange County as provided in Section 3.1E. If Hillsborough adopts an amendment despite Orange County's objection, then it shall refer such amendment to Orange County with a request that the County make corresponding changes expeditiously so that Hillsborough may continue to enforce within its portion of the Urbanizing Area the same standards that it enforces within its own planning jurisdiction. In the event of objection by Orange County as provided herein, no such amendment shall be effective within the Hillsborough Urbanizing Area until it is adopted by Orange County. Amendments shall be made in consideration of and consistent with the Joint Land Use Plan. D. Orange County may not unilaterally amend the text of its zoning or subdivision ordinances applicable to the Urbanizing Areas (i.e., those ordinances adopted by reference pursuant to Section 3.1 B). Amendments to the ordinances referenced in Section 3.1B by Orange County may be accomplished only pursuant to Subsection C above (including adoption by Orange County following a request to do so by Hillsborough). Any petitions or requests to amend these ordinances received by the County or initiated by the County shall be referred to Hillsborough. E. Proposed amendments to the text of this Agreement shall not become effective until approved by Hillsborough and Orange County. ARTICLE 4. LIMITATIONS ON ANNEXATIONS Except pursuant to the written consent of both parties to this Agreement, Hillsborough may not annex land outside of the Urbanizing Area boundaries (whether by voluntary or involuntary annexation or any other method authorized by law), nor shall any party seek special legislation accomplishing such annexation. THIS AGREEMENT entered into this day of , 2009. Chair, Orange County Board of Commissioners Attest: Mayor, Town of Hillsborough 8 Excerpt of Town of Hillsborough Minutes Attachment 2 12 October 12, 2009 Regular Meeting ~*QyQ~ -~' """'"'~ Approved: November 9, 2009 ©~ ~ ( Page 1 of 39 ~~1S .~~~. ~. MINUTES ~~,,.x~~u ~ -{ ~` ~ HILLSBOROUGH TOWN BOARD October 12 2009 7:00 PM, Town Barn PRESENT: Mayor Tom Stevens, Commissioners Frances Dancy, Mike Gering, Evelyn Lloyd (arrived at 7:13 p.m.), L. Eric Hallman, and Brian Lowen. STAFF PRESENT: Town Manager Eric Peterson, Assistant Town Manager/Public Works Director Nicole Ard, Town Clerk/Director of Administration and Human Resources Donna Armbrister, Planning Director Margaret Hauth, Finance Director Greg Siler, Police Chief Clarence Birkhead, and Town Attorney Bob Hornik. Mayor Stevens called the meeting to order at 7:01 p.m. 1. PUBLIC CHARGE 7:01:5 ~ PM Mayor Stevens did not read the public charge but noted it would be followed. 2. PRESENTATION A. Presentation of a Memorial Resolution honoring Dr. Joseph Gatewood 7:Q2:06 PM Mayor Stevens read the Memorial Resolution honoring Dr. Joseph Gatewood into the record. He noted that the resolution honored Dr. Gatewood's achievements and his service to Hillsborough, as well as acknowledged the justly earned respect and admiration of all whom he came into contact with. Mayor Stevens offered the Board's condolences to members of the Gatewood family that were present. 3. INTERVIEW CANDIDATES FOR TO FILL AN OUT-OF-TOWN VACANCY ON THE PLANNING BOARD 7:04:14 PM John Bemis introduced himself to the Board, noting he was a former teacher at Cameron Park Elementary and he had lived in Hillsborough for the past 10 years. He said his interest in serving on the Planning Board was to be able to give back to the community and be a helpful and productive member of the Planning Board by contributing to the decisions that shaped the Town. Mayor Stevens thanked Mr. Bemis for his willingness to volunteer, noting he had been very active in the community in many ways. 4. AUDIENCE COMMENTS REGARDING MATTERS NOT ON THE PRINTED AGENDA 7:05:53 PM No comments were offered at this time. 1 13 October 12, 2009 Regulaz Meeting Approved: November 9, 2009 Page 9 of 39 Ms. Hauth said the second change was on page 5 under Section 3.2 that spoke to annexation of the Orange County Urbanizing Area, noting the new language said that development within the Orange County Urbanizing Area was intended to occur under Orange County regulations prior to any annexation of lands by the Town. She said that was different from how that was done now, but understood that would match the County's process with what was done with Mebane. Ms. Hauth said when the Town sought annexation they processed the annexation, zoning, and development review all at the same time so that the Town Board, who allocated water and sewer services to the development, could decide to annex it, determine the zoning, and then decide what the development's intensity was to match up with that water and sewer capacity and what was in the best interests of the Town. She said that new language would allow the County to make all those decisions and it would almost be as if they annexed something that was already developed after the fact. Ms. Hauth said an example would be if the County had approved Waterstone in its current state and the Town came in and annexed that development after those approvals were in place. She said that would mean they were accepting that development plan as approved by the County under the County's ordinances. Ms. Hauth said in that scenario they would be accepting something into the Town that the Town had had no review of. '7:45:27 PIS-1 Craig Benedict, Orange County Planning Director, stated that he believed there was some miscommunication regarding that language. He said the way Ms. Hauth had explained that Orange County would be approving something in its totality without any interaction with Hillsborough was not the intent. Mr. Benedict said their intent was that in the orange area on the map the County would have courtesy review, and that the orange area would have an agreed upon Joint Land Use Plan. He said all of the uses within that area, whether it was commercial or residential, would be jointly approved by both the County and the Town, and the zoning used in that area would be approved by the Town in implementation of that area. Mr. Benedict said an annexation agreement with the Town would be a necessary prerequisite in that a person would voluntarily sign a petition to be able to go into the Town's jurisdiction and negotiate a water and sewer extension. He said the size of the development and when it went online would all be subject to the Town's timing, with the only difference being that the review process would occur under Orange County's jurisdiction and at such time the development was complete and a Certificate of Occupancy was obtained, then the Town could annex it. Mr. Benedict said that would be when the tax base went online and when the water and sewer would be available to the site. He said that process would give Orange County the opportunity to review under its planning jurisdiction, but consistent with the Joint Land Use Plan and zoning agreed upon by both the County and the Town. ?:47:34 PM Mr. Benedict said the blue area on the map was the area outside of Hillsborough's ETJ, and the Town could annex that area and have complete zoning authority of that area in accordance with the joint plan. He said the only difference with the amendment they were making was that annexation would occur after the development was complete, but that development would be consistent with the Joint Land Use Plan and consistent with an agreement upon zoning designation that would implement that Joint Land Use Plan. Mr. Benedict said mention had been made of Mebane, and in some of the areas that Mebane had agreed to service with water and sewer they had gone through a similar voluntary annexation agreement so that the land could be annexed at some point in the future. He said that allowed the 9 14 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 10 of 39 County to be able to review the development applications, noting if they did not have that provision then all the areas noted in orange and blue on the map would be just the same as if they were all blue, because Hillsborough could annex it and then the County's zoning regulations would not apply because the Town's zoning regulations would. Mr. Benedict said the last important part of the agreement was that whatever zoning they used in the orange area was going to be very similar if not an element of the Town's zoning code, because they understood there would be annexation of that area in the future and they did not want a County urban-looking development to be different than a Town urban-looking development. He said the purpose of the Joint Land Use Plan was to have it all work together. 7:49:50 PM Commissioner Hallman said the critical piece of that was that they had not yet agreed to any Joint Land Use Plan, so trying to understand it without that in place was difficult. He said they were not set up for any kind of Town approval in the orange area at all. Mr. Benedict said they did not really have a district, but that showed how important that Joint Land Use Plan would be as well as the joint implementation plan. Commissioner Hallman said his thought was there was a likelihood that in the next 15 to 20 years that the Town would annex into the blue area but be much less likely to do so in the orange area. Ms. Hauth said the way Mr. Benedict laid it out, it sounded as if there was no difference between the orange and the blue except for the Board that was approving it. But, she said, she could not help wondering why the County would want to review and approve something and oversee it all through construction only for the Town to annex it. Ms. Hauth said they had learned a very important lesson with Gold Park that depending on who was reviewing something, the interpretation of the regulations was very different. She said while it was fine to say there really would not be much difference, it still came down to the Orange County Commissioners and the Orange County Planning staff would be reviewing and approving projects that the Town would be committed to accepting from that point forward. Ms. Hauth said she did not understand why and did not see the benefit to anyone of doing it that way. She said it seemed to introduced all the heartache and difficulty they had experienced when looking at The Preserve, in that The Preserve had applied to the Town for water and sewer but the Town had no way to participate in the review of the subdivision even though they were asked to commit water and sewer to it. She said they had not been able to discuss such things as road improvements and other impacts. Mayor Stevens said the reverse would also be true, in that if the provisions were reversed then the Town would be doing all the reviews and approvals. He said his point was why put that area in the orange, asking what the difference was. Ms. Hauth said the difference was that they wanted to talk about having a joint adopted land use and if that did not match that plan then they would at least have to touch base with the County Board and go through some kind of process, rather than just annexing it. She said it was based more on the agreement on the land use side rather than the zoning regulations side. 7:54:1.5 PAQ Commissioner Gering said he would like to understand how the process would work with respect to the water/sewer agreements. He asked was there any part of the orange area that currently had water and sewer services. Mr. Benedict said he did not believe so, noting that 10 15 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 1 I of 39 he believed only the light blue areas on the map had such services. Commissioner Gering said then anyone wanting to develop in the orange areas would have to get awater/sewer contract with the Town, and at what stage in the process would the Town consider granting that. Mr. Benedict said on day one. He said if a developer came forward with a proposal then the Town would be brought in as a utility provider, and the Town's standards would be engineered into the project. Commissioner Gering said the Town Board was use to using water and sewer services as a strong lever for negotiating all aspects of a proposed development, and wondered how that negotiation leverage would be affected by the Town's role in the approval process. Mr. Benedict said the Town could say no to a development in its ETJ, in the blue areas, or in the orange areas. He said there was no mandate in the agreement that the Town would have to provide water and sewer to those areas, noting those areas had been pulled in from the large green water/sewer boundary agreement map when it was thought that the Town could serve a larger area. Mr. Benedict said that area would eventually be compressed to a more achievable water allocation standard. 7:_56:38 PIS-1 Commissioner Gering said then the only difference as far as the Town was concerned was that the land use rules would be in the County's hands rather than the Town's, and all the other discussions including special conditions would remain as is. Mr. Benedict said the process would be better than with The Preserve and was one reason they were moving towards this agreement, noting he did not believe they had had a good process at that time. He said the Interlocal Agreement would set out the steps of who provided what, and the only difference he saw was that the development review would be by the Orange County Planning staff and approved by the County Commissioners, and they did that because it would give them some urban planning like they were doing in small sections of Efland. Mr. Benedict said one important difference between the way it was now and the way it would be in the future was that there would be jointly agreed upon land uses and intensities, and jointly agreed upon zoning regulations that would implement those land uses and intensities. Ms. Hauth asked at what point Mr. Benedict saw the Town having to either commit or not commit water and sewer in order for a project to come in for review under the County. .She asked would the Town have to commit at the time the application was deemed complete, or at the time that the County Commissioners made its decision. Ms. Hauth said that had been the problem in the past. Mr. Benedict said it would be before the Commissioners gave approval. He said the County had a preliminary review process to determine if a project was feasible as proposed, and if intensity was proposed that required public water and sewer, then that would need to be approved early in the process. 7:59:08 .PM Commissioner Lloyd said she had served on the Water Sewer Boundary Committee and they had spent a large amount of time in getting the rural buffer in place, and they had not discussed going towards Efland. She said the Town Manager had done a water capacity study to identify how much was available for certain developments proposed for the future, so they could not exceed that without having to move to phase two of the reservoir. Commissioner Lloyd said that was pretty much set, and asked Commissioner Hallman, who had served on the Strategic Growth Plan Committee, if what was proposed went beyond that. 11 16 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 12 of 39 Commissioner Hallman said that did cause him some concern, noting that as he read through the new language and then referred to Section 3.9.B, that there was no guarantee that the zoning changes would occur in accordance with the Town's rules. 8:01:1.5 .PM Mayor Stevens said it might be okay if the land use was already determined, but at this point it had not been. Mr. Benedict said the in Section 3.9.B, it said that the amendments would not become effective until both Boards agreed to it. He said if the Town never agreed to it, then it never happened. He said the zoning that would be used in the orange area that would be implemented if that revision was accepted would be a zoning category that the Town would have agreed to. Mr. Benedict said what they were suggesting with the orange area was that the County would administer it and then it could be annexed at whatever point the Town could provide the water and sewer allocation. He said if they did not have that provision, then the orange areas might as well be blue because it would be annexable by the Town at any time and there may not be an opportunity at all for Orange County to do any urban fringe planning. Mr. Benedict said if it could be annexed without any development review process then Orange County would have nothing to do with even the orange area because it could be annexed by the Town and the rules would be whatever was jointly agreed to by the County. 8:03:34 PM Mayor Stevens said then what were they trying to accomplish with this. Mr. Benedict said they believed they could have planning standards that could implement the joint agreement adequately, and that the County could do it as well as the Town could do it for the orange area because that was on the distance horizon. He said they agreed that Hillsborough was more interested in the ETJ and blue areas, so why not leave the orange areas for County urban planning until such time as the Town wanted to annex it and offer water and sewer Commissioner Hallman said with the current zoning standards, you could not develop south of I- 40 but to one unit per two acres. Mr. Benedict said there were some areas that were within the Economic Development Zone which could be developed to a higher intensity. Commissioner Hallman said it seemed that it would be self defeating to the County to develop under its ordinances at much less density that the Town might have and not let the Town go ahead and exercise its zoning ordinances in the orange area. Mr. Benedict said they would not develop the orange areas at any of the current standards, noting they were waiting to implement that with the Interlocal Agreement. He said there was no Interlocal Agreement zoning standards now, rather they wanted the agreement to develop those standards by looking at Town standards in the blue area and County standards in the orange. Mr. Benedict said they would not be developing in the orange area at the one unit per one acre standard that they had now because that was not the intent of the urban designated area. Commissioner Hallman said then it seemed that adding that language to Section 3.2 was premature, and it could be addressed in the Joint Land Use Plan and not in the agreement. Mr. Benedict said if the Town wanted to address it at a later date, after the Town and the County agreed to a Land Use Plan and zoning standards to implement the Interlocal Agreement they could put it back in at that time if the Town was comfortable with it. 8:06:1.4 PM Mayor Stevens agreed he believed the language was putting the cart before the horse. Mr. Benedict said in the case of the -blue areas the County was putting the cart before the horse. He said the County was willing to allow the Town to do urban standards outside its ETJ 12 17 October 12, 2009 Regulaz Meeting Approved: November 9, 2009 Page 13 of 39 and the County was ceding its zoning authority of the blue areas to the Town, instead of expanding its ETJ. Commissioner Gering said there was no gain for the Town because the County was taking it away from other areas. Ms. Hauth said the blue areas were in addition to the ETJ exchange, so the Town was coming out ahead in that regard. Mayor Stevens said a question would be what they wanted from a developer point of view, noting they did not want to create a process that would be confusing as to what the Town wanted to encourage or not encourage. Mr. Benedict said he hoped the standards would be similar on either side, noting the standards may be the same. He said the standards for the orange area may be the same as the blue area. Mr. Benedict said tonight the Board had appointed a representative to an ETJ seat on the Planning Board, recognizing that that perspective, which was a County resident, was important because they were in the path of going from County lands to potentially Hillsborough lands. So, he said, the Board had acknowledged tonight that ETJ lands were important, and the County had added a provision in the agreement that those urbanizing area representations were important. Mr. Benedict said the agreement was still to be voted on by the County and the Town, as well as what the specific language would be on how that representation occurred. He said perhaps a seat on the Planning Board could be recognized as coming from the Urbanizing Area. 3:1.0:21 PM Commissioner Hallman said the Planning Board had three ETJ representatives and he was in favor of that, but that was already at 30% of their Planning Board. He said he would not want to add a fourth, but would not be opposed to allowing a representative from that area to sit at the table and participate. Commissioner Gering said on the one hand Mr. Benedict was saying the Town's Planning Board needed more representation by people who were in the path, but on the other hand they were not subject to the Town's rules in the orange area. He said the Planning Board had been very open to members of the community as had the Town Board in considering all their opinions without the privilege of voting, and believed it was worth keeping the voting members to the Town limits or to the ETJ. Commissioner Gering said that non-voting status was no different than simply showing up to a meeting. 8:12:46 PIL-i Commissioner Hallman said he was talking about having observation rights and sitting at the table to participate in the discussion, but he was willing to concede that Commissioner Gering was correct. Mr. Hornik said as Commissioner Gering had said there was a difference between an ETJ member on the Planning Board or Board of Adjustment and someone who might live in the orange urbanizing area in that the ETJ resident was subject to the Town's regulations whereas someone in the orange urbanizing area was not. He said that caused him concern because the Board of Adjustment in particular needed to have members voting on quasi judicial decisions that were subject to the same rules, and the same was true of the Planning Board. Mr. Hornik said he was not sure there was anything about that in the State statutes and he had not looked at the case law, but the wisdom or propriety of having someone who was not subject to the very 13 18 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 14 of 39 same regulations voting on applications and requests for permits was at issue. He said he would need to take a closer look to see if that was acceptable as a legal matter, and if there was a legal issue with it then it was more a policy question, in that did they want people who were not subject to the regulations to be voting members on the boards that applied those rules. 8:14:50 PM Commissioner Hallman said he had thought they were talking about the area in blue, and now that he understood they are talking about the orange area, he withdrew his statements and agreed with Commissioner Gering. Commissioner Lloyd asked if the County provided courtesy review for Chapel Hill and Carrboro. Mr. Benedict responded yes, noting it was a part of the process that proposals were sent to the County to confirm that the proposal was consistent with the Land Use Plan and it was okay to proceed. Ms. Hauth said that was for proposals within the joint planning area, not within Chapel Hill proper. Mr. Benedict said that was correct. He said the white area on the map would be a coordinated planning area where the County would administer a land use plan that was agreed to by the Town, and if that was a lower density then the County would continue to implement that lower density so that sprawl did not occur in the area and overburden traffic. 8:16:?8 PM Mr. Peterson said Mr. Benedict had said that once a development in the orange area was completed then the Town could annex it. He asked if by complete did that mean that all CO's had been issued. Mr. Benedict said it could be by section if it was amulti-phase project, or you could annex it once all phases were completed. He said the process would require voluntary petitions be filed with the application. Mr. Peterson said then the areas would have to request voluntary annexation but they would not have to be annexed. Mr. Benedict said that would be the Town's choice. Mr. Peterson asked would the people have to request voluntary annexation or would they have the choice to ask. Mr. Benedict said the developer would be required to file the petition for voluntary annexation. Mr. Peterson said with the annexation laws being in flux, he did not know that they could craft something that would work around that. He said he was concerned that annexation laws would change and they would trip themselves up and not have the ability to annex the most valuable land in the State and in an area where they would not be able to address affordability issues. Mr. Peterson observed that if you looked at the orange area below I-40, if the hospital was approved that would spur development and that was one of the hopes of the Waterstone development. He said if you looked at where there might be semi-large tracts of land that the Town could potentially approve in the future there really was not much of anything. Mr. Peterson said he may be wrong, but it was his sense that the Town would be abdicating a great deal of their authority to potentially annex that area and giving up a lot of their control by not annexing something until it was completely built out in five, ten or even twenty years. He said at that point the laws may be different and you would have people paying double water rates. Mr. Peterson said it would get confusing because you would have the Sheriffls Department providing protection, and someone else providing garbage services, and then there was a transition when the Town took it over, so it seemed to him to be potentially messy. 14 19 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 15 of 39 Mr. Peterson said regarding water capacity, still looking at the orange area below I-40, the way the water numbers currently looked he did not believe they had enough water to serve all of that orange area unless something happened to change that. So, he said, he believed they were really looking at a smaller orange area. Mr. Peterson said he believed they were all ultimately looking towards the same goal, and believed the interest of joint planning and wanting both the Town and the County to be happy with ultimately what would be out there was good, as well as figuring out the mechanisms to achieve that. But, he said, he believed that some of the other mechanisms that were included would cause problems for all of them, greater than what they may anticipate. 8:21:37 PM Mr. Hornik said there was also a potential problem with annexation timing. He said if a developer decided to petition and conveyed lots out before annexation, that developer no longer had the right to say yes to annexation with respect to those properties that he had. conveyed out. Mr. Hornik said the law was that at the time of public hearing, you had to have signatures on a petition of all owners of property in the annexation area. He said he knew of one instance where ten years after development a jurisdiction had tried to do a voluntary annexation involving property owners who were the third owner of the property after the developer, and they had no idea whatsoever that they were claimed to have voluntarily signed a petition for annexation. Mr. Hornik said there was a current case in the State court on that very issue, so that was something they needed to be very careful about. He said his point was he did not know if you could accept a petition for voluntary annexation from a developer and then six years from now proceed with the annexation, in that he was not sure you could do the voluntary annexation if the developer had conveyed some of that property to someone else. Mr. Benedict said perhaps that clause was making much ado about nothing. He said the bottom line was that those areas were on the fringe within an urban growth boundary into which the County was agreeing to allow the Town to expand their ETJ. Mr. Benedict said it was by no means a restriction to their development potential in the future, but was actually an expansion. He said they were developing an urban services boundary that was more in tune with the Town's water allocation program, and it gave clarity to people both inside the urban service line and outside that line. Mr. Benedict said there was a potential for water if you were inside the blue and orange and ETJ areas, but if you were outside that line then do not ask for water and sewer. Mr. Benedict said concerning annexation, the voluntary annexation petition would outline that they could not disclose a property that would have people fall out of that voluntary annexation agreement. He said if you wanted to lock it into a developer's agreement which was allowed by State law you could specifically say that they would provide water and sewer, that annexation would take place at -some time to be determined, and that annexation would occur before any transfer of land. 8:24:51 PM. Mayor Stevens said the only purpose of having the annexation follow at the back end as opposed to the front end would be because if it was annexed then it would become part of their planning process. Mr. Benedict replied yes, that was the only difference. Mayor Stevens said then the only purpose it served would that it would get handled by a County department. Mr. Benedict said that was the only difference. Mayor Stevens said if they were agreeing to 15 20 October 12, 2009 Regular Meeting Approved: November 9, 2009 Page 16 of 39 some process that had joint reviews, he was not seeing where that ultimately served their joint interests. He said the annexation would be real sticking point for the Town. Mr. Hornik said he was thinking one way to deal with the issues he had mentioned would be to have the annexation occur right at the end of the development review process, either simultaneously with or shortly thereafter the development approval. He said then they would not have the potential issue of conveying out a property that could inadvertently thwart the voluntary annexation. 8:26:27 PM Commissioner Hallman reiterated that if they just struck that language and took the issue up under the joint planning discussions, they could move ahead with the Interlocal Agreement. Mayor Stevens said he believed they had carried the discussion as far as it could go tonight, and believed the joint planning discussions were the next step. Ms. Hauth asked what would happen if the Town signed one version of the Interlocal Agreement and the County signed a different version. Mr. Hornik said then there was no agreement. Mayor Stevens said perhaps a couple of the Board members needed to sit down with a couple of the County Commissioners as well as representatives from the planning staffs and the attorneys to work out a few of the issues highlighted this evening. 8:27:21 PM Commissioner Gering said that may be extending the process out more than needed. He asked if they just struck those two additions, did Mr. Benedict feel the County Commissioners would agree. Mr. Benedict said in the interest of moving the Interlocal Agreement forward he would try to explain to the Commissioners what the Town Board's thoughts were. He said this was a Memorandum of Understanding about what they .were suppose to do within about 18 months from now, and he would let the County Commissioners know that the Town Board would like to implement the two provisions the County had offered at a later time or in another manner, and that the MOU held together as written. Mr. Benedict said when they did move toward coning and the Joint Land Use,Plan and things like that, the need to have some way to activate the development process that was in two different jurisdictions would need to be considered in the further implementation processes. 8:28:28 PI~4 Commissioner Lloyd agreed with Mr. Peterson. She said the only thing she believed the Town might have any interest in would be if the hospital came and whether or not they would have the water. Commissioner Lloyd said from working on the Water Sewer Boundary Committee, she did not see how they could extend water in the azeas noted on the map. Mr. Benedict said they were not suggesting any urban growth beyond that magenta line noted on the map, so they were not going towards Efland or towards the rural buffer or too far north. Commissioner Lloyd said but they were showing them moving out farther than anticipated. She said she believed the Town might just run out of water if the hospital became a reality, noting they were not looking for anything new. Mr. Benedict said perhaps they could take the Mayor's suggestion and put together a small work group to work out the issues with the two provisions the County had added. He said if the Town agreed to the Interlocal Agreement 16 Attachment 3 2 ~ Hillsborough-Orange Interlocal Land Management Agreement Central Orange Coordinated Area THIS AGREEMENT, made and entered into this day of , 2009, by and between the COUNTY OF ORANGE, a political subdivision of the State of North Carolina, and the TOWN OF HILLSBOROUGH, a municipal corporation duly created and existing under the laws of North Carolina. WITNESSETH: In consideration of the public benefits expected to flow from the cooperative efforts of the parties in establishing a coordinated and comprehensive system of planning within their respective areas of public concern, the parties to this Agreement hereby mutually agree as follows: ARTICLE I. PURPOSE, DEFINITIONS, EFFECTIVE DATE Section 1.1 Purpose of the Agreement The purpose of this Agreement is to establish a method of coordinated and comprehensive planning in the Central Orange Coordinated Area, as defined herein. Section 1.2 Definitions A. Central Orange Coordinated Area. The area displayed on the attached map labeled as Exhibit A. B. Hillsborough Jurisdiction. Areas that are either within the Town Limits of Hillsborough, or within..Hillsborough's Extraterritorial ..Area. The Town of Hillsborough is responsible for adopting and administering land use regulations within these areas. The azea under Hillsborough's Jurisdiction may be amended over time either as annexation occurs, or as changes are made to the Town's Extraterritorial Area boundazy. On the attached Exhibit A, areas within Hillsborough's jurisdiction are shown in shades of gray. C. Orange County Jurisdiction. All areas included in the attached map labeled as Exhibit A which are not within Hillsborough's Jurisdiction as defined above. Orange County is responsible for adopting and arranging for administration of land use regulations in this area. D. Hillsborough Urban Services Area. An area, shown on the attached map labeled as Exhibit A, which includes properties that are currently within the Hillsborough Jurisdiction, and also areas in the Orange County Jurisdiction that are expected to 22 develop according to municipal standards, within which it is anticipated that municipal services will be provided, and within which property is expected to be annexed into the Town Limits of Hillsborough as development occurs. It is not expected that Hillsborough will extend water and sewer service outside of this Urban Services Area except. for reasons of public health, safety, and general welfare. E. Hillsborough Urbanizing~Area. A portion of the Hillsborough Urban Services Area, as shown on the attached map labeled as Exhibit A, but outside the area designated as "Hillsborough Jurisdiction," within which Hillsborough development standards will be applied as described in this Agreement. Property is expected to be annexed into the Town Limits of Hillsborough as development occurs. (Shown in the color blue on Exhibit A.) F. Orange Countv Urbanizing Area. A portion of the Hillsborough Urban Services area, as shown on the attached map labeled as Exhibit A, but outside the area designated as "Hillsborough Jurisdiction" and outside the area labeled "Hillsborough Urbanizing Area," within which Countv development standards will be applied as described in this Agreement. Annexation is possible. Public utilities may be extended as feasible. (Shown in the color orange on Exhibit A.) G. ExistingWater Service Area Outside Urban Services Area. An area shown on the attached map labeled as Exhibit A which currently is served by Hillsborough's municipal water system, but which is outside the boundary of the Hillsborough Urban Services Area, and for which it is not intended that other municipal services will be provided, and for which annexation is not intended. H. Notification Area. All areas included within the Central Orange Coordinated Area boundary as shown on the attached map labeled Exhibit A, but which are not located within any of the areas defined in paragraphs E through H above. (Shown in white on Exhibit A.) There will be no annexation of property within the Notification Area. I. Central Orange Coordinated Area Land Use Plan. Aland use plan to be adopted by the parties to this agreement subsequent to enactment of this agreement for the areas on Exhibit A shown in blue, orange, and white (all land within the Central Orange Coordinated Area except that which is within Hillsborough's jurisdiction), and as may be amended from time to time. Section 1.3 Effective Date and Duration A. This Agreement shall become effective upon signatures of the parties. B. This Agreement, including any Appendix hereto, shall remain in effect until terminated by mutual agreement or by withdrawal of either party. Subject to 2 23 termination provisions of this Agreement, annexation provisions of this Agreement shall be valid for not more than 20 years and may thereafter be renewed. A party may not withdraw until it holds a public hearing on the proposed withdrawal with thirty (30) days notification of the hearing, followed by action and written notice to the other party not sooner than thirty (30) .days following the closing of the public hearing. The withdrawal shall be effective one (1) year following receipt by the other party of the written notice. C. Upon execution of this Agreement, the parties agree that each will take, in a timely manner, all steps (including but not limited to preparation and adoption of Zoning Maps and all required land use ordinance amendments) required to cause this Agreement to become effective, and will notify the other party with those steps have been taken. ARTICLE 2. ACTIONS SUBSEQUENT TO EXECUTION OF AGREEMENT The parties to this agreement shall initiate work to complete the following, subsequent to execution of this agreement: Section 2.1. Adoption of Joint Land Use Plan A. Hillsborough shall adopt a Land Use Plan designating future land use for the Hillsborough Urbanizing Area and the Orange County Urbanizing Area (areas shown in blue and orange in Exhibit A), inviting comments from the Orange County Board of Commissioners. B. Upon receipt of the adoption described in Section 2.1.A, the Orange County Board of Commissioners shall consider endorsing the land use designations adopted by Hillsborough, adding land use designations for the Notification Area (area shown in white on Exhibit A). C. Both parties, Hillsborough and Orange County shall then either (1) Each adopt the composite land use plan if deemed to be acceptable; or (2) If one or both parties desire changes to be made to the recommendations, the parties shall arrange for negotiation and agreement on such changes followed by joint approval. Section 2.2. Adjustment of Hillsborough Extraterritorial Jurisdiction A. Hillsborough shall prepare a request to submit to Orange County, offering to relinquish existing Extraterritorial Jurisdiction as part of County action to adjust the ETJ boundary as shown on Exhibit A, and requesting extension of Extraterritorial Jurisdiction as shown on Exhibit A. 3 24 B. Upon receipt of the request described in Section 2.1.A, Orange County shall take action to amend the Hillsborough Extraterritorial Jurisdiction boundary, as shown in Exhibit A. Section 2.3. Adoption of Zoning and Subdivision Regulations A. Following the land use designations of the jointly adopted Land Use Plan described in Section 2.1 above, Hillsborough shall adopt zoning and subdivision regulations (including amendments to the Zoning Map) for application to ETJ areas, and recommend Orange County adoption of zoning and subdivision regulations (including amendments to the Zoning Map) for the Hillsborough Urbanizing Area and the Orange County Urbanizing Area (areas shaded blue and orange on Exhibit A). B. Upon receipt of the actions described in Section 2.3.A and following the land use designations of the jointly adopted Land Use Plan described in Section 2.1 above, Orange County shall take action to amend zoning and subdivision regulations (including amendments to the Zoning Map) for application to the Hillsborough Urbanizing Area, the Orange County Urbanizing Area, and the Notification Area (areas shaded blue, orange and white on Exhibit A), including areas for which Hillsborough Extraterritorial Jurisdiction has been rescinded. ARTICLE 3. ADOPTION, ADMINISTRATION AND AMENDMENT OF STANDARDS Section 3.1. Standards Within the Hillsborough Urbanizing Area (shown in blue on Exhibit A) A. Hillsborough shall prepare a Zoning Map for that portion of the Urban Services Area that lies within the Hillsborough Urbanizing Area and shall recommend its adoption by Orange County. Upon approval and adoption of this Zoning Map by Orange County as prescribed in Subsection B of this Section, this shall become part of the Orange County Zoning Ordinance. The Zoning Map shall be prepared using zoning districts which correspond to the text of the Hillsborough Zoning Ordinance. B. Upon completion of the Zoning Map referred to in Section 3.1A, Orange County shall amend its Zoning Atlas in accordance with said Map. Orange County shall also adopt by reference the Hillsborough Zoning Ordinance and Subdivision Regulations and make those provisions applicable to the Hillsborough Urbanizing Area. 4 25 Section 3.2. Standards Within the Orange County Urbanizing Area (shown in orange on Exhibit A) Within the Orange County Urbanizing Area, the Orange County Zoning Ordinance (including Zoning Atlas) and Subdivision Regulations that are in effect on the effective date of this Agreement shall remain in effect unless amended in accordance with Section 3.9 of this Agreement. Section 3.3. Standards Within the Notification Area (shown in white on Exhibit A) Within the Notification Area, the Orange County Zoning Ordinance (including Zoning Atlas) and Subdivision Regulations that are in effect on the effective date of this Agreement shall remain in effect unless amended in accordance with Section 3.9 of this Agreement. Section 3.4. Permit Administration within the Hillsborough Urbanizing Area (shown in blue on Exhibit A) A. Except as otherwise provided in Sections 3.5 and 3.6, the Town of Hillsborough shall perform all functions related to the administration of the ordinances referenced in Section 3.1B. Subject to the remainder of this Section, Hillsborough shall administer the referenced ordinances just as if the land were located within the Town's planning jurisdiction. Administration shall include, but not be limited to, the following: 1. Receipt and processing of applications; 2. Consideration by applicable advisory and permit-issuing boards; 3. Issuance of any required permits and certifications; 4. Review and approval of required site/construction plans; 5. Conducting necessary site/building inspections; 6. Enforcement of all standards; 7. Any other acts or things necessary to administer the Ordinance; and shall ensure that a developer complies with all applicable ordinance requirements and the terms and conditions of any permit issued by the Town. The Town may also charge. fees for processing applications, conducting site/construction plan reviews, and carrying out site building inspections in accordance with fee schedules applicable within its planning jurisdiction. B. Whenever Hillsborough receives an application for a development permit as defined in this Agreement relating to land within the Hillsborough Urbanizing Area, it shall forward copies of the application to Orange County for review. Hillsborough shall establish timetables to ensure that Orange County has an opportunity to make recommendations regarding such applications within the framework of the County's regularly scheduled meeting dates. To the extent possible, the timetables of the County and the Town shall provide for 5 26 simultaneous review to expedite application processing, as described in Exhibit B, an existing Courtesy Review agreement; provided, however, the Town may not vote to issue or deny a permit until it has received the recommendations of Orange County or until the expiration of sixty (60) days after Orange County has received the application, whichever comes first. Section 3.5. Permit Administration Within the Orange County Urbanizing Area (shown in orange on Exhibit A) A. Except as otherwise provided in Section 3.8 and the remaining provisions of this Section, Orange County shall perform all functions related to the administration of the ordinances referenced in Section 3.2. B. Whenever Orange County receives an application for a development permit as described in the "Courtesy Review Agreement" attached as Exhibit B, relating to land located within the Orange County Urbanizing Area, it shall forward copies of the application to Hillsborough for review. The County shall establish timetables to ensure that Hillsborough has an opportunity to make recommendations regarding such applications within the framework of Hillsborough's regularly scheduled meeting dates. To the extent possible, the timetables of the County and the Town shall provide for simultaneous review to expedite application processing; provided, however, the County may not vote to issue or deny a permit until it has received the recommendations of Hillsborough or until the expiration of sixty (60) days after Hillsborough has received the application, whichever comes first. { {Note: covered below in 3.6.B } } Section 3.6. Permit Administration Within the Notification Area (shown in white on Exhibit A) A. Except as otherwise provided in Section 3.8 and the remaining provisions of this Section, Orange County shall perform all functions related to the administration of the ordinances referenced in Section 3.2. B. Whenever Orange County receives an application for a development permit as described in the "Courtesy Review Agreement" attached as Exhibit B, relating to land located within the Notification Area, it shall forward copies of the application to Hillsborough for informational purposes. Section 3.7 Enforcement Remedies A. Permit revocation, if necessary and authorized by ordinance, shall be handled by the same individual or board authorized to issue the original permit. 6 27 B. Within those portions of the Hillsborough Urbanizing Area where the ordinances specified in Section 3.1B are administered by Hillsborough, enforcement efforts through the use of civil penalties, criminal penalties or injunctive relief shall be initiated by Hillsborough. Hillsborough shall have the duty to defend at its own expense and shall indemnify and hold harmless, to the extent that it can legally do so, Orange County, its Board of Commissioners, its advisory boards, its staff and all members of its boards and staffs, in their official and individual capacities, from any and all claims, actions, proceedings, expenses, damages or liabilities, including attorneys' fees and court costs, resulting from the Town's administration of the ordinances specified in Section 3.1B. C. Orange County shall notify Hillsborough and Hillsborough shall notify the County as soon as practicable thereafter of any such claim, action or proceeding. Section 3.8 Land Use Plan Amendments The process for amending the Joint Land Use Plan shall be the same as the process for initially adopting the plan, as spelled out in Section 2.1. Section 3.9 Ordinance and Zoning Map Amendments A. Proposed amendments to the Zoning Ordinance or Zoning Map applicable to properties within the Hillsborough Urbanizing Area shall be initiated by or referred to Hillsborough. No such amendment may become effective until after it has been adopted by both Orange County and the Town of Hillsborough, following a joint public hearing by both governing bodies. In reviewing and taking action on such proposed amendments, the adopted Joint Land Use Plan shall be considered in good faith as a guide to decision-making. B. Proposed amendments to the Zoning Ordinance or Zoning Map applicable to properties within the Orange County Urbanizing Area shall be initiated by or referred to Orange County and adopted in accordance with the procedures set forth in County ordinances. No such amendment may become effective until after it has been adopted by both Orange County and the Town of Hillsborough, following a joint public hearing by both governing bodies. In reviewing and taking action on such proposed amendments, the adopted Joint Land Use Plan shall be considered in good faith as a guide to decision-making. C. Whenever Hillsborough proposes to amend the text of its Zoning Ordinance or Subdivision Regulations, Hillsborough shall deliver a copy of the full text of the proposed amendment to Orange County not later than thirty (30) days before the date of the public hearing on any such amendment. However, with the written consent of the Orange County Manager or his/her designee, this thirty (30) day period may be reduced to not less than ten (10) days. Unless Orange County files a written objection on or before the date of the public hearing on the proposed ordinance amendment, then adoption of the amendment by Hillsborough shall 7 28 automatically effect a corresponding amendment to the ordinance adopted by reference by Orange County as provided in Section 3.1. If Hillsborough adopts an amendment despite Orange County's objection, then it shall refer such amendment to Orange County with a request that the County make corresponding changes expeditiously so that Hillsborough may continue to enforce within its portion of the Urbanizing Area the same standards that it enforces within its own planning jurisdiction. In the event of objection by Orange County as provided herein, no such amendment shall be effective within the Hillsborough Urbanizing Area until it is adopted by Orange County. Amendments shall be made in consideration of and consistent with the Joint Land Use Plan. D. Orange County may not unilaterally amend the text of its zoning or subdivision ordinances applicable to the Urbanizing Areas (i.e., those ordinances adopted by reference pursuant to Section 3.1B). Amendments to the ordinances referenced in Section 3.1B by Orange County may be accomplished only pursuant to Subsection C above (including adoption by Orange County following a request to do so by Hillsborough). Any petitions or requests to amend these ordinances received by the County or initiated by the County shall be referred to Hillsborough. E. Proposed amendments to the text of this Agreement shall not become effective until approved by Hillsborough and Orange County. ARTICLE 4. LIMITATIONS ON ANNEXATIONS Except pursuant to the written consent of both parties to this Agreement, Hillsborough may not annex land outside of the Urbanizing Area boundaries (whether by voluntary or involuntary annexation or any other method authorized by law), nor shall any party seek special legislation accomplishing such annexation. THIS AGREEMENT entered into this day of , 2009. Chair, Orange County Board of Commissioners Attest: Mayor, Town of Hillsborough Attest: 8 Legend Proposed Central Orange Coordinated Area Boundary = 33,875 ac. (White area = 24,412 ac.) 1^..J Proposed Urban Service Area = 9,463 ac. `J Proposed ETJ Boundary ~~~~~~ Proposed ETJ Areas to be Added = 624 ac. ® Proposed ETJ Areas to be Deleted = 489 ac. p Proposed Orange County ® Urbanizing Areas = 1,909 ac. Proposed Hillsborough Urbanizing Areas = 1,118 ac. Existing Rural Residential - -- ® Existing AgricuRural Residential Existing JPA Rural Buffer )' _ Existing Eno River State Park Existing Water Service Area `~, '~ ~ Outside Urban Services Area = 1,394 ac. ,'`, ~ Existing Adopted Small Area Plan Areas Existing Hillsborough Town Limns = 3,303 ac. E tisUng Hillsborough ETJ areas = 2.918 a. {,`~ ~.; t rv to Town of Hillsborough/Orange County Strategic Growth Plan Phase II Exhibit a Central Orange Coordinated Area Central Orange Coordinated Planning Area Town of Hillsborough (TOH)/Orange County (OC) Strategic Growth Plan Phase II iy ~ ' i ~ Jy ~ ~ ~ 2 t` O w ~ y~ C a y ~ ' + t ~o ~ ha Q ~ ~~ Ca i~ K`~ j ~ J Qi Cr w o~ ~ C9 tQr V V° h` J ~~ S~ Q Q Q' ~ y Q' Hillsborough Dark Gray Town Limits TOH TOH Y' Y Y N M 3303 Hillsborough Light Gray ETJ TOH TOH YZ Y Y N M 2918 Added Town Light Gray Backward Hatch ETJ OC->TOH TOH YZ Y Y Y M 624 Hillsborough Blue Urbanizing OC TOH YZ Y Y Y Y 1118 Orange Co. Orange Urbanizing OC OC YM3 YM Y Y Y 1909 Orange Co. Light Blue Hybrid Area OC OC Y N4 N Y N 638 Deleted Light Gray Forward Hatch Town ETJ TOH-->OC OC N N N Y N 489 Joint Interest White Area OC OC N N5 N Y N 24412 ' Available and Committed Water. z Available Water. a Water, if additional water allocations found, water conservation of existing, WASMPBA a Within Orange County or Town of Hillsborough long term interest area proposal e Part is within #4 area SGRC =Strategic Growth Rural Conservation (Receiving) (aka TDR) Y = Yes; N = No; M =Possible. Courtesy Review in all areas above w 0 (Acreages corrected on April 15, 2009) 31 EXHIBIT B: COURTESY REVIEW AGREEMENT THIS AGREEMENT, made and entered into this day of , 200_, by and between the COUNTY OF ORANGE, a political subdivision of the State of North Carolina, the TOWN OF HILLSBOROUGH, a municipal corporation duly created and existing under the laws of North Carolina. WITNESSETH: In consideration of the public benefits expected to flow from the cooperative efforts of the parties in establishing a coordinated system of planning within their respective areas of public concern, the parties to this Agreement hereby mutually agree as follows: ARTICLE 1. PURPOSE, DEFINITIONS, EFFECTIVE DATE Section 1.1 Purpose of the Agreement The purpose of this Agreement is to establish a method to foster coordinated planning between Orange County and the Town of Hillsborough. Further, the process is intended to provide a forum for discussion of development impacts and exchange information and ideas. This agreement does not provide for joint approval. Section 1.2 Definitions A. Courtesy Review Area. The area designated on the Courtesy Review Area Land Use Map and attached hereto as Exhibit A. (As across-reference this is the area also noted on the Water and Sewer Management, Planning and Boundary Agreement map as the Town of Hillsborough's primary service area.) Within the Courtesy Review Area, the Town of Hillsborough's Land Use Plan will apply to land within its corporate limits and extraterritorial planning jurisdiction (ETA. Orange County's Land Use Plan will apply in the remainder of the Courtesy Review Area. B. Development proposal. Development permit proposals that are to be reviewed under this agreement must meet at least one or more of the following criteria: Z:~Projects~Intergovemmental Agreeement~Ilillsborough-OrangeWgreemenAExhibit B -Courtesy Review Agreement-2006.doc 1 32 1. Land use amendment involving five (5) acres, 2. Rezoning involving five (5) acres, 3. Special Use Permit or Master Plan involving five (5) acres, 4. Conditional Use Permits involving five (5) acres, 5. Annexations involving five (5) acres, 6. Projects with a residential component of greater than 50 dwelling units. 7. Modifications to any of the above applications or permits requiring board action. Section 1.3 Effective Date and Duration A. This Agreement, except as provided below, shall become effective upon adoption of an ordinance by the elected officials of the Town of Hillsborough and Orange County to its effect. Any previously adopted Agreements in conflict with this Agreement shall become null and void upon this date. The Courtesy Review Area Map in Appendix A to this Agreement shall become effective upon the execution of this Agreement. B. This Agreement, including any Appendix hereto, shall remain in effect until terminated by mutual agreemerit or by withdrawal of any party. Withdrawal of one party shall absolve the remaining parry to satisfy conditions under the Agreement. ARTICLE 2. ADOPTION, ADMINISTRATION AND AMENDMENT OF STANDARDS All proposed developments noted in Section 1.2B shall be submitted for courtesy review in the following areas: A. Aforesaid Courtesy Review Map area outside of Hillsborough's ETJ, B. Within the Town of Hillsborough's town limits and extra-territorial jurisdiction. Section 2.1 Request for Joint Meeting Either jurisdiction may request a joint meeting of the elected boards to discuss a development proposal subject to courtesy review. The request shall be made in writing by the reviewing jurisdiction when comments are submitted or in writing by the approving jurisdiction upon receipt of comments. When either party requests a joint meeting, the approving jurisdiction Z:\Projects\Intergovemmental Agreeement\Hillsborough-OrangeWgreement\Exh~bit B -Courtesy Review Agreement-2006.doc 2. 33 agrees to delay its approval process for the project in question for no more than 90 days in order to accommodate the joint meeting. If such a meeting is scheduled, the developer will provide five (5) additional copies of the development proposal application. Section 2.2 Proposal Administration within the Courtesy Review Area A. Whenever Hillsborough receives an application for a development proposal as defined in this Agreement relating to land within the Courtesy Review Area, it shall forward two (2) copies of the full application and associated materials to Orange County planning staff for review within two (2) working days of a completed application being submitted. Comments shall then be returned to the Town of Hillsborough planning staff within five (5) working days for inclusion in the Hillsborough planning board and/or town board agenda packet. 1. In the case of a voluntary annexation, the application is complete upon receipt of Letter of interest from the property owner/representative. 2. In the case of an involuntary annexation, the Town of Hillsborough will notify the Orange County planning department at the time that they notify the effected property owners of the intent to annex. 3. The Town of Hillsborough will forward a copy of all staff reports regarding the feasibility of the annexation, whether voluntary or involuntary, to the Orange County Planning Department as part of the notification. B. Whenever Orange County receives an application for a development permit as defined in this Agreement relating to land within the Courtesy Review Area, it shall forward two (2) copies of the full application and associated materials to Town of Hillsborough planning staff for review within two (2) working days of a completed application being submitted. Comments shall then be returned to the Orange County planning staff within five (5) working days for inclusion in the Orange County planning board and/or county commissioner's agenda packet. Section 2.3 Substance of Comments A. The Town of Hillsborough may make comments on a development proposal within the jurisdiction of Orange County covered under this Agreement on certain matters of concern. These matters of concern shall include, but not be limited to: 1. Utility capacity and efficiency Z:~ProjectsUntergovemmental Agroeement~I-Iillsborough-OrangeWgrcement~E~tibit B -Courtesy Review Agroement-2006.doc 3 34 a) Town of Hillsborough staff will provide written confirmation of availability and/or constraints of utility capacity for development proposals requesting Town of Hillsborough utility access that are within the jurisdiction of Orange County. b) If the development proposal requests utility service from the Town of Hillsborough, the Town of Hillsborough Board of Commissioners agrees to provide written notice of intention to provide or not provide utility service to the proposed development to the Orange County planning staff within two (Z) months of receipt of development proposal application. Orange County may require confirmation of intention to provide utility service to the proposed new development from the Town of Hillsborough as a condition of preliminary plan approval. 2. Transportation issues (traffic and road capacity, access to mass transit, etc.) B. Orange County may make comments on a development proposal within the jurisdiction of the Town of Hillsborough covered under this Agreement on certain matters of concern. These matters of concern shall include, but not be limited to: 1. School capacity and planning 2. Emergency management services 3. Transportation issues (traffic and road capacity, access to mass transit, etc.) 4. Fiscal Impact on county/contractual public service provision including but not limited to social services, health services, senior citizen services, parks and recreation services. 5. Land Use Compatibility and Joint Planning Study Implementation 6. Environmental resources Section 2.4 Reservation of Utility Capacity for Review Purposes 1. An applicant within Orange County's jurisdiction desiring Hillsborough water and sewer service shall independently petition the Town for reservation of utility capacity following a Concept Plan approval by the Planning Board. 2. The Hillsborough Town Board will decide within Z month of receiving the petition whether to formally reserve utility capacity for a project based on Z:~Projects~Intergovernmental Agreeemenflf-Iillsborough-Orange~,4greemcnt\Exhtbit B -Courtesy Review Agreement-2006.doc 4 35 a preliminary concept plan. Water use will be projected based on the concept plan. 3. The reservation of utility capacity shall be valid for no more than 2 calendar years unless the reservation is extended through mutual agreement of the Town Board and the applicant. 4. Within the two-year period, the applicant and Town have the opportunity to negotiate a water and sewer extension contract in accordance with adopted town policies and fee schedules. If a contract is not adopted within the reservation period, the Town will cease reserving capacity for the development. Section 2.5 Enforcement Remedies. Development proposal revocation, if necessary and authorized by ordinance, shall be handled by the same individual or board authorized to issue the original development approval. Z:~Projccts~Intergovemmental Agreeement~flillsborough-OrangeWgreement~Exhibit B -Courtesy Review Agreement-2006.doc ~' S _ ~ OC~'1 ~ ©~7 Attachment 4 36 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION APPROVING AN INTERLOCAL AGREEMENT WHEREAS, Orange County and the Town of Hillsborough worked cooperatively to prepare a Strategic Growth Plan for areas surrounding the Town of Hillsborough; and WHEREAS, a Strategic Growth Plan Report (dated November, 2006) was produced and called for preparation of an Interlocal Agreement; and WHEREAS, North Carolina Session Law 1987-233 authorizes Orange County and its municipalities to engage in joint planning programs and to enter into annexation agreements; and WHEREAS, said Session Law requires any agreement be reduced to writing and ratified by resolution of the governing body of each unit that is a party to the agreement; and WHEREAS, a steering committee was appointed in Spring of 2008 and tasked with developing an agreement to promote coordinated planning in central Orange County between Orange County and the Town of Hillsborough; and WHEREAS, said steering committee completed its task in early 2009. NOW THEREFORE BE IT RESOLVED by the Orange County Board of Commissioners that the attached document titled "Hillsborough-Orange Interlocal Land Management Agreement Central Orange Coordinated Area" is hereby approved. Adopted by Orange County: This the day of , 2009. Valerie Foushee, Chair Orange County Board of Commissioners Donna Baker County Seal: Clerk to the Orange County Board of Commissioners