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Home My WebLink AboutAgenda - 02-19-2013 - 7bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 19, 2013 Action Agenda Item No. 7 -b SUBJECT: Next Steps Regarding Proposed Establishment of Three (3) New Fire Service Districts DEPARTMENT: Emergency Services PUBLIC HEARING: (Y /N) I No ATTACHMENT(S): 1) Old South Orange Fire Insurance District Map 2) Chapel Hill /Southern Triangle District Map 3) New South Orange Fire Insurance District Map 4) Property Tax Revenue Projections — New South Orange Fire Service District 5) Letter from North Chatham Volunteer Fire Department 6) Old North Chatham Fire Insurance District Map 7) Comparison of Insurance Premiums 8) Old Greater Chapel Hill Fire Insurance District Map 9) New Greater Chapel Hill Fire Insurance District Map 10)Greater Chapel Hill Fire Insurance District Map with Hydrants 11)Property Tax Revenue Projections — North Chatham Fire Insurance District 12)New North Chatham Fire Insurance District Map 13)Property Tax Revenue Projections — New Greater Chapel Hill Fire Service District 14)Memorandum from Staff Attorney with North Carolina General Statute 153A -301 15)Southern Orange County Zoning, ETJ, and Rural Buffer Map 16)Town of Chapel Hill Agenda Item #11 for February 11, 2013 INFORMATION CONTACT: Annette Moore, 245 -2317 Michael Talbert, 245 -2308 PURPOSE: To provide direction to staff: 1. To schedule a public hearing for the April 9, 2013 regular Board meeting to consider the establishment of the three new Fire Service Districts - the South Orange Fire Service District, the North Chatham Fire Service District and the Greater Chapel Hill Fire Service District; 2. To authorize staff to move forward with a five -year contract for the Town of Chapel Hill to provide fire protection for the proposed new Greater Chapel Hill Fire Service District at a 15 cent tax levy per one - hundred dollar valuation of real and personal property; and 3. If the Town of Chapel Hill is unwilling to a support a five -year contract and a 15 cent tax levy per one - hundred dollar valuation of real and personal property for a proposed Greater Chapel Hill Fire Service District, instruct staff to request that the Town of Carrboro consider a five -year contract to serve the proposed new Fire Service District at a 10 cent tax levy per one - hundred dollar valuation of real and personal property. BACKGROUND: On September 13, 2011 the Board was presented options for changing fire districts to improve insurance ratings for the 1,156 properties located outside of six (6) road miles from the closest fire station located in their fire insurance district. A County Attorney's memorandum dated September 1, 2011 provided a legal opinion for fire protection tax districts, with the available options are listed below: 1. Realign Fire Insurance District boundaries without changing Fire Tax Districts. 2. Change existing Fire Protection Districts, which would also change the Fire Tax District. 3. Establish one or more Fire Service Districts to replace or overlay existing Fire Protection Districts which could also change Fire Tax Districts. On March 13, 2012 the Board approved the request from the Orange Grove Fire Department to construct a new fire station #2 that is strategically located in the southeastern part of the Cane Creek Fire District. This newly constructed fire station is providing insurance district coverage for an estimated 400 property owners that were more than six (6) road miles from the Orange Grove Station. The Orange Grove Fire Department is in the planning stages for a new fire station #3 to be strategically located in the western part of the Cane Creek fire district. That new fire station #3 will provide insurance district coverage for an estimated 250 property owners currently more than six (6) road miles from the Orange Grove Station. The Emergency Services Workgroup has discussed all available options for the 1,156 properties located outside of six (6) road miles from the closest fire station located in their fire insurance district. With the new fire stations in the Cane Creek Fire District, over 600 property owners will be provided insurance district coverage and will be located less than 6 -road miles from the nearest Orange Grove Station. The Emergency Services Workgroup is recommending the creation of three (3) New Fire Service Districts to overlay and replace three (3) existing Fire Protection Districts. With input from the State Fire Marshal's office, the proposal is to modify existing fire insurance districts and create new Fire Service Districts that are exactly the same as the revised fire insurance districts. The three (3) Fire Services Districts are proposed to be the South Orange Fire Service District, North Chatham Fire Service District and Greater Chapel Hill Fire Service District. 3 South Orange Fire Service District Attachment 1 is a map of the existing South Orange Fire Insurance District. Due to the Town of Chapel Hill annexations, the South Orange Fire Insurance District has been split. The Town of Carrboro provides fire protection in the South Orange Fire Insurance District and now has to travel through the Town of Chapel Hill to respond to a fire call off Mt. Carmel Church Road. Attachment 2 shows a detail map of the area and Chapel Hill Fire Station #5 that is less than one (1) mile from the area outlined in gray. The Town of Chapel Hill is better positioned and may be willing to provide fire protections for this area in gray. The Town Manager presented this possible solution to the Chapel Hill Town Council on January 14, 2013. The area in gray on Attachment 2 represents 100 parcels and $36,003,769 of real property value. When vehicles and personal property values are added to the real property total, an estimated $37,673,414 of taxable value would be removed from the existing South Orange Fire Insurance District. Attachment 4 shows the existing property valuation of $556,977,528 for the South Orange Fire Insurance District, the reduction of $37,673,414 of taxable value, and the remaining property valuation of $519,304,114. The estimated tax valuation reduction from the existing South Orange Fire Insurance District equals 6.8% of the total. A fire district tax increase of .6 cents, from 7.85 cents to 8.45 cents, would be required to insure that this change is revenue neutral for the Town of Carrboro. This issue has also been presented to the Town of Carrboro. On December 4, 2012 the Carrboro Board of Alderman Town voted to approve a resolution to modify the existing South Orange Fire Insurance District. The revised South Orange Insurance District will not include the donut hole in gray on Attachment 2 and the Town will continue to contract to provide fire protection to the proposed new Fire Insurance District (see Attachment 3), with a new fire tax rate of 10 cents per $100 of real and person property value. On December 11, 2012 the Board expressed its intent to establish three new Fire Service Districts; the South Orange Fire Service District, the North Chatham Fire Service District and the Greater Chapel Hill Fire Service District. Staff was instructed to proceed with the necessary steps to establish three new Fire Service Districts. North Chatham Fire Service District Orange County has received a letter from North Chatham Volunteer Fire Department (Attachment 5) indicating that the Department will charge a tax rate of 8.8 cents beginning July 1, 2013. This is the same rate currently charged in Chatham County and a 76% increase over the existing 5 cents. Attachment 6 is a map of the existing North Chatham Fire Insurance District. Included on Attachment 2, in yellow, are 112 homeowners located more than six (6) road miles from the nearest North Chatham Station, but less than three (3) road miles from Chapel Hill Fire Station #5. These homeowners have an insurance rating of 10 (see Attachment 7 for an example of insurance premiums related to fire insurance ratings). Several homeowners in this area have indicated that they cannot get fire insurance or that the rate has more than doubled. The Town of Chapel Hill is better positioned and may be willing to provide fire protections for this area in gray. The Town Manager is prepared to make a recommendation to the Chapel Hill Town Council on January 14, 2013. The Town of Chapel Hill is a municipal fire department which relies on hydrants as its water source to fight fires. Discussions have occurred involving the Town of Chapel Hill Fire Chief and North Chatham Fire Department Chief concerning possible fire and insurance solutions for this area. Attachment 8 is a map of the existing Greater Chapel Hill Fire Insurance District. Attachment 9 is a map of the proposed new Greater Chapel Hill Fire Insurance District that includes not only the area proposed to be deleted from South Orange, but also 112 homeowners from Attachment 2 and additional property included in the Southern Triangle Fire District that have hydrants. The Town of Chapel Hill staff is prepared to make this recommendation to the Chapel Hill Town Manager and the North Chatham Fire Chief has indicated a plan to make this recommendation to the North Chatham Board of Directors. Attachment 10 shows a potential new Chapel Hill Fire Service District which includes hydrants. Attachment 11 is a projection of property values and revenues for the New North Chatham Fire Insurance District. Attachment 12 is a map of the proposed New North Chatham Fire Insurance District. With a property tax increase from 5 cents to 8.8 cents and a reduction of property covered by the district, the net impact for the new district is a revenue increase of $31,441 from $213,325 to $244,766. Greater Chapel Hill Fire Service District Attachment 13 is a projection of property values and revenues for the New Greater Chapel Hill Fire Insurance District. A map of Southern Orange County, attachment 15, shows zoning, ETJ and the Rural Buffer as it relates to the proposed fire service districts. At its November 13, 2012 work session, the Board reviewed information regarding the possibility of establishing three (3) new Fire Service Districts and instructed staff to proceed with the steps necessary to establish the new Fire Service Districts. Listed below are actions taken to date concerning the possible creation of three (3) new Fire Service Districts: • On December 3, 2012, Orange County petitioned the Town of Chapel Hill to consider modifications to the existing Greater Chapel Hill Fire Insurance District as discussed in the background. • On December 4, 2012 the Carrboro Board of Alderman Town voted to approve a resolution to modify the existing South Orange Fire Insurance District. The revised South Orange Insurance District will not include the donut hole in gray on Attachment 2 and the Town will continue to contract to provide fire protection to the proposed new Fire Insurance District (see Attachment 3), with a new fire tax rate of 10 cents per $100 of real and person property value. • On January 14, 2013 the Chapel Hill Town Council voted unanimously not to provide Fire Protection for a proposed Greater Chapel Hill Fire Service and requested Orange County Government's Assistance in encouraging the residents of the proposed Chapel Hill Fire Service District to seek annexation into the Town of Chapel Hill. • On February 11, 2013 the Chapel Hill Town Council again considered the County petition to the Town to consider modifications to the existing Greater Chapel Hill Fire Insurance District as discussed in the background. Several members of the Town Council still consider annexation as the preferred method of providing fire protection and all other Town services to these residents. There was discussion about the 15 cent rate being the maximum rate allowed and Town Council discussed how the tax rate could be increased. The Chapel Hill Town Council voted unanimously to enter into a service agreement to extend the Town's current fire district into the affected neighborhoods for a period of two years and initiate conversations with the County 61 about how the changes in annexation laws affect the rational planning model established within Orange County. Listed below are actions need to be taken before three (3) new Fire Service Districts can be created and included in the County's Fiscal 2013/2014 annual budget. • Approval by the Orange County Board of Commissioners after holding a public hearing on April 9, 2013. Attachment 14 lists the detailed procedures for notifying property owners prior to conducting a public hearing. • Approval by the North Chatham Fire Department Board of Directors • Approval by the State Fire Marshal's Office • Approval of new Fire Protection and Emergency Services Agreements before July 1, 2013 for the three (3) new Fire Service Districts FINANCIAL IMPACT: There is no financial impact to the County, but there is a financial impact on all property owners in the three (3) proposed new Fire Service Districts with higher Fire District Tax rates for the property owners. RECOMMENDATION(S): The Manager recommends that the Board instruct staff: 1. To schedule a public hearing for the April 9, 2013 regular Board meeting to consider the establishment of the three new Fire Service Districts - the South Orange Fire Service District, the North Chatham Fire Service District and the Greater Chapel Hill Fire Service District; 2. To authorize staff to move forward with a five -year contract for the Town of Chapel Hill to provide fire protection for the proposed new Greater Chapel Hill Fire Service District at a 15 cent tax levy per one - hundred dollar valuation of real and personal property. (Note: The standard five -year contract does contain the option to terminate with a one -year notice to the parties.); and 3. If the Town of Chapel Hill is unwilling to a support a five -year contract and a 15 cent tax levy per one - hundred dollar valuation of real and personal property, for a proposed Greater Chapel Hill Fire Service District, instruct staff to requests that the Town of Carrboro consider a five -year contract to serve the proposed new Fire Service District at a 10 cent tax levy per one - hundred dollar valuation of real and personal property. '.:: ...._ th Orange Fire Insurance Disirict Wr Mi- Imo,` r.. ;il _._. LEGEND Attachment ■ r��f 54 Fire Stations Old South Orange Fire Insurance District '- �,� �� „�� ♦Iii 'llll�l1� c,.a1�= rr �� r IN Parcel boundary -� '• � s� {� .lei �•. ��.� �� • ,r_ W. Streets -.0 1 inch 4,150 feet 1 ■ • rr ♦iw ,� ��. �1�Ji M III ►'� r; IZ•' ��: AMMM& n. �► a • made by Dirange Count IT/GIS Division • • - Ae ZIP M Jones 10/30/2012 Ir 1 ■ ■ ■ ■.�I,�.r♦ ��'♦_ ``•�.��F`��:, "',�, r ►•'� %., X11 +1 1 ♦ 71 j ` �.` m moo: _ /I11/::I /,�� it' �V . i.. ; �i�M N �-I� :q•y ��, •► �� Ma ow �i••........ „.L u �� ll�_� . �.:.° v . {I�` �ur � ' ► �,. ,pv o . .� -y ,7i1i1�•`4 raj lei i I� yw.'d� .► �. .�- tip_ � __. ft r�� *r JE■;• 1a, i�.n .■.n , u, �. �� LIE IN 104 1, ■_.1...11_ ..,_ _.. , >,..111,.,.. ;,� .....�.. . SWAMI .. _ �, Mm . uduu ...3111.111.11. �rr,.� le■■m�■ ; ,n11. '� , ► ..11I. .. ,. . , `` .� AFF o, MAN WRTS • ' `l,. \Y ` ,/ ■ ��_ I � V'— ■ai ►�—\ ' _7 • ♦ O O � III �� . `�� I .i: ,'�� i ;. �>{�ar!�� i%♦■�' •�►� Vim• r ti,,�`_ ♦9�/ . �'` `!1 ♦. •�1 > . • _ . a e ♦ U'.Fi . ♦ gain i OR- MI �,. � wow Vj JOE rgrl • I;I��1:,,:''`��; -,�� \ AI ,i� -� _ ^�, ir.../ ,..,. �1 `)I��7�'"'��I ��VLS:�y. � � ■.11 \` \,i i 1/ �♦ � —L� Ar�.•«`777� � `�J. r► � ��`� ��! �� V�� =�•:,..,,, = .• °'i�� " :yam , '/�O� ■ wj� /, f a •,, -,,�„/ ,I ��, �a,\ . ♦.I♦III��, �I� i Vim. RNFL 1P.70 saw 1.1d,MWAS�01M FA Y � o, EFO� H1TEh' O�� a zi 1< • • � • o i ••• • �vB R • • • • • • SOUTH ORANGE • • • • • • A� • �-- 0 �-. 7. HILL Attachment 2 LEGEND J� LD POST 1` Fire Stations AWI HO EPLI,E O Fire Insurance District SOUTHERN TRIANGLE 0 to 5 miles from Chapel Hill Station 5 LEEPYH o Parcel boundary y/ CHARD Chapel Hill / Southern Triangle District Residences outside of 6 mile radius of 0 North Chatham Fire Stations ,� o PT m ,�E MANGUM we 1 inch = 1,250 feet oz E G� v oM JAVT Map made by IT /GIS Dlvlsion ,' °` "., <oa FOloyglanome�lapm��sem/ So uthomnge_11022011.m;:d/ S. orange (greyed ot)with Fire Streets 012520121 /26/2012 HU G RD Chapel Hill / Southern Triangle District New South Orange Fire Insurance District LEGEND Attachment 3 _Fire Stations New South Orange Fire Insurance District oil -lilt i � • � .�1 X11 ►, ��,,��:.7� 111 Parcel -•- ORANGE CARRBORO CARL N wE 1 inch = 4,150 feet s Map made Om Count IT/OIS Division <OC770i 0i O: \gish ishome\gisproj \EServ\ N Chatham_SouthemTnangle.mxd> M Jones 10/30/2012 } z 0 c� 0 Attachment Property Tax Revenue Projections - South Orange Fire District 2- Nov -12 District: Tax Code Valuation as of bOUthern Orange Revised Tax Rate FC Southern Orange Needed to Increase 2/29/2012 2/29/2012 Break Even Total Valuation 556,977,528 37,673,414 519,304,114 Levy (Total Valuation Divided by $100) 575697775 3767734 571937041 Approved Tax Rate 0.0785 0.0785 0.0845 0.0060 100% Collection Rate 4377426 297574 4387812 Projected Property Tax Collections (97 %) 4247303 287686 4257648 1 Cent Equals 547027 1 37654 1 507672 100.0% 6.8% 6.8% ATTACHMENT 5 �\NORTH� NORTH CHATHAM VOLUNTEER FIRE DEPARTMENT 45 MORRIS ROAD � PITTSBORO, NORTH CAROLINA 27312 I / PHONE: (919) 542 -3380 FAX: (919) 542 -6613 CHATFfAP44 E -Mail: pyro @nc.rr.com June 25, 2012 Bernadette Pelissier, Chair Orange County Board of Commissioners Post Office Box 8181 200 South Cameron Street Hillsborough, North Carolina 27278 Ms. Pelissier, The purpose of this letter is to acknowledge the receipt of the 1 year notification by Orange County for Fire Protection of the Southern Triangle and Damascus Fire District and to inform Orange County Commissioners that any future contract with North Chatham Volunteer Fire Department will be at the current fire tax rate those residents in North Chatham Fire District are charged for fire protection in Chatham County. Currently the fire tax rate is 8.8 cents on the $100 evaluation of the property. North Chatham has been providing fire protection, rescue service and medical response to the Southern Triangle and Damascus Fire District for over 20 years. At the time Orange County contracted this service with North Chatham; there were no other departments in the area willing to meet the needs of the two districts. North Chatham has provided a quality service to the residents of Orange County and lowered the insurance premiums on three different ISO inspections. However, we understand many counties in North Carolina are addressing the challenges of providing fire protection needs for homeowners insurance. Over the years residents of the North Chatham Fire District have been charged a higher fire tax rate than residents of the Southern Triangle and Damascus Fire Districts. The same level of service has been provided to all three fire districts. Any future fire district contracts with Orange County will be at the current 8.8 cents fire tax or the same fire tax rate being charged to Chatham County residents in the North Chatham Fire District, thereafter. During the next few months Grange County will be making a decision on fire protection for the Southern Triangle and Damascus area or by June 3 0, 2013. Once district lines are established and if North Chatham is contracted to provide fire protection to the Southern Triangle and Damascus Fire District, then the contract will be evaluated by North Chatham Board of Directors to provide the service. Sincerely, o wd, Chief North Chatham Volunteer Fire D ep artment C.- ichael Talbert, Asst. County Manager 10 Attachment 6 LZIII CI'� 1 ,`11, ,i��,��■ � ■; /illl ?eJ;.n_.: .. /�: �... _ ■Afil, Yi WOW Jim LEGEND Fire Stations _ hll• � cl � _� • i II � I � �' � � II��O %�` 111 `�� A • � `i�,��l / • , .�! ■� %III • r • T vu ..niq �iEi � • •r • � �i• pL �� a @(IiFlli: U ri �.� • • I • F •. North Chatham Fire Insurance District F Streets Parcel boundary 3,500 feet Map made by Orange Count IT/GIS Division M Jones 10/30/2012 • • North Comparison of Insurance Premiums Relative to ISO Public Protection Classifications This chart compares annual insurance premiums for a new wood frame home valued at $100,000.00 with smoke detectors. This report was provided by an actual agent in Wake County. ISO CLASS AGENT 1 AGENT 2AGENT 3 10 $470.00 $514.00 $585.00 9S $376.00 $411.00 $469.00 8 $353.00 $384.00 $438.00 7 $318.00 $347.00 $394.00 6 $259.00 $283.00 $320.00 5 $259.00 $283.00 $320.00 4 $259.00 $283.00 $320.00 3 $259.00 $283.00 $320.00 2 $259.00 $283.00 $320.00 1 $259.00 $283.00 $320.00 w T'N't 04 tit f lasv . 3 N 1411 E a WEN . . my v. REW FAR •• UNVA INN '100 "IMP WW ��;;;;•` +,1i •��.M► ate, :: •�� .� +�� r�� Mmo ggl MN 711 Apj J4 LEGEND der �� ,��.► ,��iw ,.� ■ . . 5 miles from Chapel Hill Station 5 - 5 to 6 miles from from Chapel Hill Station 5 L Streets -�•� Parcel boundary Greater Chapel Hill Fire Insurance District .. feet ■ .� �� r !� ... . I/ �� ♦ . , . _ M Jones 10/30/2012 Greater Gha�el '-IiII Fire Insurance District a ►V' ��•1 ■■ ��.� �� ;.��t�ri;� � _ it r�Jl►�"�. �`� ^'�`��-..,��`��, ��. � � ��.� I :by3'� -` QW �� —�i�r s�Q� ♦ „�,t All FU C94 a on I-NJ, �. A am, LEGEND der Fire Stations 0 to 5 miles from Chapel Hill Station 5 5 to 6 miles from from Chapel Hill Station 5 OWASA hydrants Greater Chapel Streets • �►�`. Parcel boundary 1 inch 1,500 feet ■ �� r ,r�� ■ �I . Map .. . � , Orange Count IT/GIS Division . _I/ M Jones 10/30/2012 NO, reater Chapel Hill Fire Insurance District 16 Attachment 11 Property Tax Revenue Projections - North Chatham Fire Insurance District 5- Nov -12 District: Tax Code Valuation as of =outnern Triangle Southern Triangle Revised Damascus New North FJ (Deleted) Southern Triangle FK Chatham 2/29/2012 11/2/2012 11/2/2012 2/29/2012 Total Valuation 345,311,224 153,206,894 192,104,330 94,641,073 286,745,403 Levy (Total Valuation Divided by $100) 3,453,112 1,532,069 1,921,043 946,411 2,867,454 Approved Tax Rate 0.0500 0.0500 0.0500 0.0880 100% Collection Rate 172,614 96,052 47,321 252,336 Projected Property Tax Collections (97 %) 167,435 93,171 45,890 244,766 1 Cent Equals 33,495 18,634 9,180 27,814 _ _ r w 31 Flo �_ � � o �•.ofir ► Nir J��•%� c ►.�� n�� 'A /i* *�■ ��iWiii�WW9�,� �� t • !RNMEMENJIM ` ♦.L T ►11.`x. >C: •s it/�M— ► ov- W. :� �1 • e - � .= � %�� I • ° °'?�,��r1 e��♦�i� i ��' � � � �� jr�r�i �r�� • 1��ff►o.�'`��C �lr��f��' ! , -,,R, `t ri ■t� 1� ►�� _ �� quo y�,� . �- PIP • . .o-.E9 1 ISM • • _ •' �- • LEGEND F Fire Stations r .. 5 miles from Chapel Hill Station 5 .. miles from Chapel Hill Station 5 Streets Parcel boundary 3,500 feet Map ' , by Orange Count IT/GIS Division a New North Chatham Fire Insurance District • Attachment 13 Property Tax Revenue Projections - New Greater Chapel Hill Fire District 8- Nov -12 District: Tax Code Valuation as of Chapel Hill From From New District FG South Orange Southern Triangle 2/29/2012 Total Valuation 21345,976 37,673,414 153,206,894 193,226,284 Levy (Total Valuation Divided by $100) 237460 3767734 175327069 179087803 Approved Tax Rate 0.0750 0.1000 100% Collection Rate 17759 1907880 Projected Property Tax Collections (97 %) 17706 1857154 1 Cent Equals 227 187515 ATTACHMENT 14 MEMORANDUM TO: Michael Talbert, Assistant County Manager Cc: Fran Montes de Oca, Emergency Services Director John Roberts, County Attorney FROM: Annette M. Moore, Staff Attorney RE: Fire Service Districts DATE: October 9, 2012 The County Attorney's Office was asked to provide a legal opinion on the how to implement fire service districts in the County. Below, is an excerpt from the Memorandum I drafted for the County Manager on September 1, 2011. County Service Districts The County is authorized to define one or more areas within the county to establish a service district to fund fire protection services! A. service district within a county is not a municipal corporation nor does it have any independent authority. The service district is established and maintained by the county. Creation of a Fire Service District To create a service district the board of commissioners must first consider all of the following: 1. The resident population and population density of the proposed district; 2. The appraised value of the property subject to taxation in the proposed district; 3. The present tax rates of the county and any city or special distract tax in which the district or any portion is located; 4. The ability of the proposed district to sustain additional taxes; and 5. Any other matters the board believes to have a bearing on whether the district should be established. The Board may then establish a service district if, upon information and evidence it receives, it finds that all of the following apply: I _ There is a demonstrable need for providing the service in the district; 2. It is impossible or impracticable to provide those services on a countywide basis; 3. It is economically feasible to provide the proposed services in the district without unreasonable or burdensome annual tax levies; and 4. There is a demonstrable demand for the proposed services by persons residing in the district.3 ' N_C.G_S. § 153A.-301 2 N_C.G.S. § 153A- 302(a) 1 The Board of Commissioners must then hold a public hearing on the proposed creation of the service district.¢ Prior to holding the public hearing the Board of Commissioners shall have prepared a map of the proposed district, a statement showing that the proposed district meets the standards provided above, and a plan for providing the service to the district.5 Please let me know if you need further information.. 'N.C.G.S. § 153A-- 342(a1) 4 N.C.G.S. § 153A-302(c) 5 N.C.G.S. § 153A-- 302(b) V,, Chapter 153A § 153A -301. Purposes for which districts may be established. 21 (a) The board of commissioners of any county may define any number of service districts in order to finance, provide, or maintain for the districts one or more of the following services, facilities and functions in addition to or to a greater extent than those financed, provided or maintained for the entire county: (1) Beach erosion control and flood and hurricane protection works. (2) Fire protection. (3) Recreation. (4) Sewage collection and disposal systems of all types, including septic tank systems or other on -site collection or disposal facilities or systems. (5) Solid waste collection and disposal systems. (6) Water supply and distribution systems. (7) Ambulance and rescue. (8) Watershed improvement projects, including but not limited to watershed improvement projects as defined in Chapter 139 of the General Statutes; drainage projects, including but not limited to the drainage projects provided for by Chapter 156 of the General Statutes; and water resources development projects, including but not limited to the federal water resources development projects provided for by Article 21 of Chapter 143 of the General Statutes. (9) Cemeteries. (10) Law enforcement if all of the following apply: a. The population of the county is (i) over 900,000 according to the most recent federal decennial census, and (ii) less than ten percent (10 %) of the population of the county is in an unincorporated area according to the most recent federal decennial census. b. The county has an interlocal agreement or agreements with a municipality or municipalities for the provision of law enforcement services in the unincorporated area of the county. C. Repealed by Session Laws 2008 -134, s. 76(c), effective July 28, 2008. (11) Services permitted under Article 24 of this Chapter if the district is subject to G.S. 1 53A- 472.1. (b) The General Assembly fords that coastal -area counties have a special problem with lack of maintenance of platted rights -of -way, resulting in ungraded sand travelways deviating from the original rights-of-way and encroaching on private property, and such cartways exhibit poor drainage and are blocked by junk automobiles. (c) To address the problem described in subsection (b), the board of commissioners of any coastal-area county as defined by G.S. 113 A -103 (2) may define any number of service districts in order to finance, provide, or maintain for the districts one or more of the following services, facilities and functions in addition to or to a greater extent than those financed, provided or maintained for the entire county: (1) Removal of j unk automobiles; and (2) Street maintenance. (d) The board of commissioners of a county that contains a protected mountain ridge, as defined by G.S. 113A-205(6), may define any number of service districts, composed of subdivision lots within one or more contiguous subdivisions that are served by common public roads, to finance for the district the maintenance of such public roads that are either located in the district or provide access to some or all lots in the district from a State road, where some portion of those roads is not subject to compliance http: Hwww. ncga. state. nc. us/gas cripts/statute s/statute I ookup.pl? statute= 15 3 Astatute =153A 2/14/2013 Chapter 153A 22 with the minimum standards of the Board of Transportation set forth in G.S. 136 -1 02.6. The service district or districts created shall include only subdivision lots within the subdivision, and one or more additional contiguous subdivisions, where the property owners' association, whose purpose is to represent these subdivision lots, agrees to be included in the service district. For subdivision lots in an additional contiguous subdivision or for other adjacent or contiguous property to be annexed according to G.S. 153A -303, the property owners' association representing the subdivision or property to be annexed must approve the annexation. For the purposes of this subsection: (1) "subdivision lots" are defined as either separate tracts appearing of record upon a recorded plat, or other lots, building sites, or divisions of land for sale or building development for residential purposes; and (ii) "public roads" are defined as roads that are in actual open use as public vehicular areas, or dedicated or offered for dedication to the public use as a road, highway, street, or avenue, by a deed, grant, map, or plat, and that have been constructed and are in use by the public, but that are not currently being maintained by any public authority. _ (e) The board of commissioners of a county that adjoins or contains a lake, river, or tributary of a river or lake that has an identified noxious aquatic weed problem may define any number of noxious aquatic weed control service districts composed of property that is contiguous to the water or that provides direct access to the water through a shared, certified access site to the water. As used in this subsection, the term "noxious aquatic weed" is any plant organism identified by the Secretary of Environment and Natural Resources under G.S. 113A -222 or regulated as a plant pest by the Commissioner of Agriculture under Article 36 of Chapter 106 of the General Statutes. (1973, c. 489, s. 1; c. 522, s. 2; c. 1375; 1979, c. 595, s. 1; c. 619, s. 6; 1983 (Reg. Sess., 1984), c. 1078, s. 1; 1959, c. 620; 1993, c. 378, s. 1; 1995, c. 354, s. 1; c. 434, s. 1; 1997 -456, s. 24; 2005-433, s. 10(b); 2005-440, s. 1; 2008 -134, s. 76(c); 2011 -100, s. 1.) § 153A -302. Definition of service districts. (a) Standards. - In determining whether to establish a proposed service district, the board of commissioners shall consider all of the following: (1) The resident or seasonal population and population density of the proposed district. (2) The appraised value of property subject to taxation in the proposed district. (3) The present tax rates of the county and any cities or special districts in which the district or any portion thereof is located. (4) The ability of the proposed district to sustain the additional taxes necessary to provide the services planned for the district. (5) If it is proposed to furnish water, sewer, or solid waste collection services in the district, the probable net revenues of the projects to be financed and the extent to which the services will be self- supporting. (6) Any other matters that the commissioners believe to have a bearing on whether the district should be established. (al) Findings. -The board of commissioners may establish a service district if, upon the information and evidence it receives, the board finds that all of the following apply: (1) There is a demonstrable need for providing in the district one or more of the services listed in G.S. 153A -301. (2) It is impossible or impracticable to provide those services on a countywide basis. (3) It is economically feasible to provide the proposed services in the district without unreasonable or burdensome annual tax levies. (4) There is a demonstrable demand for the proposed services by persons residing in the district. Territory lying within the corporate limits of a city or sanitary district may not be included unless the http: / /www.ncga. state. nc. us /gascripts/ statutes /statutelookup.pl ?statute =153A 2/14/2013 Chapter 153A 23 governing body of the city or sanitary district agrees by resolution to such inclusion. (b) Report. — Before the public hearing required by subsection (c), the board of commissioners shall cause to be prepared a report containing: (1) A map of the proposed district, showing its proposed boundaries; (2) A statement showing that the proposed district meets the standards set out in subsection (a); and (3) A plan for providing one or more of the services listed in G.S. 153A -301 to the district. The report shall be available for public inspection in the office of the clerk to the board for at least four weeks before the date of the public hearing. (c) Hearing and Notice. — The board of commissioners shall hold a public hearing before adopting any resolution defining a new service district under this section. Notice of the hearing shall state the date, hour, and place of the hearing and its subject, and shall include a map of the proposed district and a statement that the report required by subsection (b) is available for public inspection in the office of the clerk to the board. The notice shall be published at least once not less than one week before the date of the hearing. In addition, it shall be mailed at least four weeks before the date of the hearing by any class of U.S. mail which is fully prepaid to the owners as shown by the county tax records as of the preceding January 1 (and at the address shown thereon) of all property located within the proposed district. The person designated by the board to mail the notice shall certify to the board that the mailing has been completed and his certificate is conclusive in the absence of fraud. (d) Effective Date. — The resolution defining a service district shall take effect at the beginning of a fiscal year commencing after its passage, as determined by the board of commissioners. (e) Exceptions For Countywide District. — The following requirements do not apply to a board of commissioners that proposes to create a law enforcement service district pursuant to G.S. 153A-301 (a)(1 0) that covers the entire unincorporated area of the county: (1) The requirement that the district cannot be created unless the board makes the finding in subdivision (al)(2) of this section. (2) The requirement in subsection (c) of this section to notify each property owner by mail, if the board publishes a notice of its proposal to establish the district, once a week for four successive weeks before the date of the hearing required by that subsection. (f) Exceptions for Article 24 District. -- The following requirements do not apply to a board of commissioners that proposes to create a service district pursuant to G.S. 153A- 301(a)(11) that covers the entire unincorporated area of the county: (1) The requirement that the district cannot be created unless the board makes the finding in subdivision (al)(2) of this section. (2) The requirement in subsection (c) of this section to notify each property owner by mail, if the board publishes a notice of its proposal to establish the district, once a week for two successive weeks before the date of the hearing required by that subsection. (1973, c. 489, s. 1; c. 822, s. 2; 1981, c. 53, s. 1; 1995, c. 354, s. 2; 2005 -433, S. 10(c).) http: Hwww. ncga. state. nc. us/gas cripts/statute s/statutel ookup. p I? statute= 15 3 Astatute =153A 2/14/2013 Attachment 15 Zoning, ETJ and Rural Buffer in Southern Orange County 24 �_ oy O-o x CL RB eowoF� WINS U) J 000 Z o o o <Z WILSO O N�A S\0 v 50 w04 FS OP PR CE CREEK 6 Gt "0 ti BPW County Line 2012 Zoning EC5 Carrboro & Chapel Hill AR ® CH Transition City Limits RB Streets = ETJ = PI D C s 0 M,ISOjVFARM 9 we 1 inch = 1,500 feet s Map made by Orange County Land Records GIS <OC220k O: \gishome \gisproj \EServ\ NChatham_SoutherTriangle.mxd M Jones 12/5/2012 Coversheet Attachment 16 TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY Meeting Date: 2/11/2013 AGENDA # 11 Title of Agenda Item: Greater Chapel Hill Fire District: Annexation Analysis. (R -13) 25 Council Goal: Focus on Economic Development, Land Use, and Transportation for a Balanced and Sustainable Future Background: At the January 14, 2013 Business Meeting, Council considered orange County's request to enlarge the Greater Chapel Hill Fire District to include Area 5. Council was presented with three options: 1. Continue to provide fire service to the area via mutual aid. 2. Enter into a service agreement with orange County to extend the Town's current fire district into the affected neighborhoods. 3. Provide fire protection service following annexation of the area. Council chose to explore annexation of the affected neighborhoods, and requested that staff prepare a report outlining the costs and revenues of annexing the area. Resources from the School of Government and NC League of Municipalities, as well as cost and revenue data from Town departments serve as the basis for the discussion and recommendations that follow. Fiscal Note: A summary of the estimated cost and revenues associated with the annexation of Area 5 are as follows: Recommendations: Based on the financial analysis, it appears that annexation would be beneficial to the Town's long -term financial and development interests. With that said, the legal constraints imposed by current annexation laws, contextual factors related to the neighborhoods in question, and potential resource demands on staff required to initiate annexation male the pursuit of annexation of this area challenging and impracticable. Thus, based on the information provided, I recommend that the Council: Reconsider the option proposed by orange County to enter into a service agreement to extend the Town's current fire district into the affected neighborhoods for a period of two years and initiate conversations with the County about how the changes in annexation laws affect the rational planning model established within orange- County. Town staff can report in September http:// chapelhillpublic. novusagenda .comBluesheet.aspx ?itemid =2121 &mee... 2/14/2013 Year 1 Year 2 Year 3 Total Cost $434,400 $257,500 $257.5500 Total Revenue $1,039,100 $1,039,900 $1,040,600 Net Revenue J $60417001 $78214001 $783, 100 Recommendations: Based on the financial analysis, it appears that annexation would be beneficial to the Town's long -term financial and development interests. With that said, the legal constraints imposed by current annexation laws, contextual factors related to the neighborhoods in question, and potential resource demands on staff required to initiate annexation male the pursuit of annexation of this area challenging and impracticable. Thus, based on the information provided, I recommend that the Council: Reconsider the option proposed by orange County to enter into a service agreement to extend the Town's current fire district into the affected neighborhoods for a period of two years and initiate conversations with the County about how the changes in annexation laws affect the rational planning model established within orange- County. Town staff can report in September http:// chapelhillpublic. novusagenda .comBluesheet.aspx ?itemid =2121 &mee... 2/14/2013 Coversheet 2013 on the status of these discussions, so Council can determine next steps. If the Town of Chapel Hill does not proceed with the service agreement proposed by the County, an alternative available to the area and the County is to extend the Carrboro Fire District to include this area. This could create an even more confusing situation. Another option for the Town, even given the serious barriers described above, is to initiate annexation of Area 5. ATTACHMENTS: Viewing attachments may require Adobe Acrobat. Manager's Cover Memorandum Parcel Map Area 5 Water and Sewer Service Map Street Mileage and Maintenance Map Annexation Criteria Map Timeline for Ci - Initiated Annexation 26 http:// chapelhillpublic. novusagenda .comBluesheet.aspx ?itemid =2121 &mee... 2/14/2013 27 ILVAI TD: Mayor and Town Council FROM: Roger L. Stancil, Town Manager SUBJECT: Greater Chapel Hill Fire District: Annexation Analysis DATE: February 11, 2013 I ail - The purpose of this report is to summarize the current annexation laws in North Carolina and provide a f nanicial analysis of the proposed annexation of Area 5, which includes neighborhoods contiguous to the south side of town, north of Mount Carmel Church Road. This report also discusses the policy implications for development and expansion given the recent changes in annexation laws and concludes with recommendations for next steps for the area under consideration. BACKGROUND At the January 14, 2013 Business Meeting, Council considered Grange County's request to enlarge the Greater Chapel Hill Fire District to include Area 5 (See Attachment 1). Council was presented with three options: 1) Provide fire service to the area via mutual aid. 2) Enter into a service agreement with Grange County to extend the Town's current fire district into the affected neighborhoods. 3) Require the residents in the area under consideration to petition for annexation in order to receive fire protection service. Council chose to explore annexation of the affected neighborhoods, and requested that staff prepare a report outlining the costs and revenues of annexing the area. Resources from the School of Government and NC League of Municipalities, as well as cost and revenue data from Town departments serve as the basis for the discussion and recommendations that follow. Description of Area The area under consideration for annexation "Area 5" is located on the south side of Chapel Hill, north of Mount Carmel Church Road. The area includes Azalea Drive, Bayberry Drive, Chimeneas Place, and Rhododendron Drive and the surrounding neighborhoods and is in the extraterritorial planning jurisdiction of Chapel Hill and within the urban service boundary (See Attachment 1). The area is estimated to include 274 dwelling units and has a total population of 638 people. The area has access to water and sewer service through the orange water and Sewer Authority (See Attachment 2) and is comprised of state and privately maintained roads (See Attachment 3). The North Chatham Volunteer Fire Department currently serves the area, which is part of the Southern Triangle Fire District. The Town also provides fire protection through a mutual aid agreement and typically responds first to fire emergencies, given the area's close proximity to Fire Station #5. The Grange County Sherriff s Department provides police projection, though the Town Police Department responds to emergency calls in the area. The r4k% Town also provides inspections services to the area and residents of the area are eligible to attend Chapel Hill public schools. . Annexation Annexation is the process by which towns and cities expand their corporate limits to provide for the orderly extension of municipal services to areas that are becoming urbanized. The required municipal services include police protection, fire protection, garbage and trash collection, maintenance and lighting of public streets, and all other services provided by the municipality, on the same basis as provided within the existing municipal boundaries. Over the past two decades, the Town has annexed over a dozen areas. Recent actions by the state legislature, however, have altered the permissible methods of annexation and effectively limited the ability of municipalities to annex new areas. Methods. Under current state statute, there are four options for annexation: 1) Annexation by .,Petition (160A-31) This option allows the owners of property contiguous to municipal corporate limits to submit a petition signed by owners of all the real property in the area. The municipality is then required to hold a public hearing, and the annexation ordinance is adopted. Additionally, a petition may also be used to annex areas that meet a poverty standard set in statute and to annex municipal -owned property. 2) Satellite Annexation (160A -58 et seq.) This option allows for annexation of noncontiguous areas. Property owners within three miles of corporate limits that are not closer to another municipality may submit a petition signed by all owners of real property, except tax exempt property. The municipality is then required to hold a public hearing, and the annexation ordinance is adopted. 3) Town Initiated Annexation (160A-58.50 et seq.) This option allows the municipality to initiate annexation of areas that meet contiguity and density requirements. After the adoption of a resolution of intent, the law requires a referendum to be held at a regular municipal election. only registered voters in the area proposed for annexation are allowed to vote on the referendum. If less than a majority of the votes cast are in favor of annexation, the municipality cannot proceed with adoption of annexation ordinance or begin another involuntary annexation for the proposed area for three years. If the election authorizes annexation, the municipality approves the annexation report, holds a public information meeting and public hearing, considers comments at public hearing and may adopt the annexation ordinance. The law requires municipalities to reimburse the county for the costs of the referendum and provide notice to property owners of their opportunity to vote in the referendum and request water and sewer service. 4) Legislative Annexation This option allows the municipality to request legislation to adjust boundaries of the municipality. options for area 5. The area under consideration meets the annexation character requirements outlined in state statute, which are (See Attachment 4): 29 Contiguity. The area under consideration is adjacent or contiguous to Town of Chapel Hill corporate limits. At Feast one - eighth of the boundary coincides with the municipal boundary. Approximately half of the boundary of the area is coincident with the municipal boundary. ►� No part of the area in another municipality. No portion of Area 5 is part of any other municipality. v/ At least 60% of the total lots and tracts in the area are used for residential, commercial, industrial, institutional, or government purposes. Approximately 70% of the total lots and tracts in Area 5 are used for the above purposes. Annexation by petition of property owners and town - initiated annexation represent the two applicable options for annexation of Area 5. However, these options have real limitations in terms of practical application. Because the petition process requires 100% of the affected properties to be party to the request, it is practically impossible to achieve that outcome and in this case there are residents who have already stated opposition to this option. Town - initiated annexation, while not as difficult to achieve as the petition option, still poses challenges for municipalities to pursue. only property owners in the area under consideration are permitted to vote on the referendum and a ma j ority of votes must be secured to proceed with the annexation process. Additionally, the process of town - initiated annexation is estimated to tale at least five years (See Attachment 5) . DISCUSSION Financial .Analysis A summary of the estimated cost and revenues associated with the annexation of Area 5 are provided below. Table 1. Total Cost & Revenue Estimate Years One to Three Area 5 Annexation Area Year One Costs The costs for Year one are summarized in Table 2. i The costs are calculated for the first three years following annexation, assuming an effective date of annexation of July 1, 2013. The Town is required by G.S. 160A -49.3 to offer existing private sector entities contract opportunities which allow for the continued solid waste services of annexed areas by existing companies. The Town maintains the responsibility of assuring a level of service comparable to the service level within the existing incorporated area. The involvement of the existing private companies may require the Town to supplement service ,where contract service is not comparable to the municipal service. This analysis assumes the extension of Town solid waste services by existing personnel and equipment with payment to private companies for economic loss. Year I Year 2 Year 3 Total Cost $4345400 $2571500 $2575500 Total Revenue $11039,100 $1,0393900 $11040,500 Net Revenue $604,700 $7825400 $783,100 Year One Costs The costs for Year one are summarized in Table 2. i The costs are calculated for the first three years following annexation, assuming an effective date of annexation of July 1, 2013. The Town is required by G.S. 160A -49.3 to offer existing private sector entities contract opportunities which allow for the continued solid waste services of annexed areas by existing companies. The Town maintains the responsibility of assuring a level of service comparable to the service level within the existing incorporated area. The involvement of the existing private companies may require the Town to supplement service ,where contract service is not comparable to the municipal service. This analysis assumes the extension of Town solid waste services by existing personnel and equipment with payment to private companies for economic loss. all • To extend solid waste services to the area, additional staff and equipment are not needed to provide services on a basis substantially equal to all current parts of the Town. Costs associated with the annexation include: the purchase of new roll -out containers, increased tipping fees, collection costs, and "economic loss" payments to affected contractors with fifty (50) of more residential customers. • To extend street maintenance service to the area, additional staff and equipment are not required. However, annexation costs include: increased curb and gutter repair costs, as well as patching and street resurfacing costs. riven the aging condition of many of the streets in the area, substantial street maintenance repairs will be required over the first several years following annexation. This analysis assumes the Town would take responsibility for the maintenance of all roads within the area (See Attachment 3) . • Street lighting costs would include the maintenance and repair of existing decorative street lighting in the area. Chapel Hill Transit staff is not aware of any requests for fixed -route bus service in this area and there are no current plans to provide fixed-route and/or expanded public transportation services to the area under consideration. Therefore, there are no initial costs to Transit anticipated for the annexation of Area 5. However, the need for fixed-route service improvements and expansions is evaluated on an annual basis, and would be reconsidered in future years following annexation. • The extension of traffic signs and markings servi f ces to the area would require temporary staffing support through the first year to bring the area's traffic signs and markings into compliance with Town and federal standards. Specific costs include: purchase and installation of stop signs, street name signs, and other traffic signs, as well as replacement of existing pavement marking. • The Town's fire service will be provided with current positions and equipment. However, first year costs associated with annexation will include the installation of three fire hydrants in the area. • The Town's police service will be provided with current positions and equipment. Police costs associated with annexation include increased vehicle fuel and maintenance and repair costs for patrol vehicles. • Planning and Inspections services are already provided in Area 5, with the exception of code enforcement services. The costs associated with code enforcement for this relatively small area are estimated to be negligible, and thus are not accounted for in this analysis. • The stormwater costs associated with annexation will be for drainage maintenance, street sweeping, and stormwater program implementation. • The annexation area has access to water and sewer lines through the orange water and Sewer Authority (See Attachment 2). Year One Revenue • Year one Revenues are summarized in Table 3. • The total estimated revenue for Area 5 is $1,039,227 in Year one. Year Two and Three Costs 0 Year Two and Three Costs are summarized in Table 2. 31 Town service costs are anticipated to decrease for solid waste services, traffic signs and pavement markings, and fire due to one --time costs incurred in the first-year following annexation, which no longer will be applicable in subsequent years. Costs for street maintenance, street lighting, police, and stop- nwater drainage are anticipated to be similar to those experienced in Year one. Year Two and Three Revenue Year Two and Three Revenues are summarized in Table 3. ■ With the exception of sales tax, revenues are not estimated to increase in Years Two and Three, based on historical trends in collection of property tax and population based revenues, which have remained relatively flat over the past several years. A 2.5% increase is applied to sales tax revenue, based on historical data. Policy Implications The recent changes in the state's annexation laws have implications for our joint planning efforts in the extraterritorial jurisdiction and for the future growth and development of the Town. Orange County and the Towns of Chapel Hill and Carrboro have a long standing plan for orderly growth of urban areas while preserving rural areas of the County. This plan has been successful in minimizing sprawl within orange County, allowing municipalities to provide urban level services and preserving the benefits of nearby rural areas and farms. The Town has traditionally provided services to neighborhoods in the urban services boundary and extraterritorial jurisdiction, such as Area 5, as part of the normal progression to annexation into the municipal jurisdiction. however, the recent changes to annexation laws have altered this natural progression, as evidenced by the fact that no municipalities in the state have pursued annexation of unincorporated areas since the legislative reforms. Additionally, parsing out services on a menu selection or pay as you go basis dilutes the benefits of full annexation and places the burden of supporting necessary infrastructure and organizational function systems on the Town residents alone while others receive the services, particularly when the service fee or district taxes pay only for the specific and direct service rendered. Municipalities like Chapel hill, then, face a conundrum ---- -- continue providing services to neighborhoods in the urban services boundary and extraterritorial jurisdictions without the likely possibility of eventual annexation of these areas into the municipal jurisdiction, or initiate costly and time - consuming efforts to annex areas that are likely to be voted down by residents. This is a serious issue that merits further consideration by Council, particularly as the Town strives to prioritize services and make do with limited financial resources. RECOMMENDATIONS Based on the financial analysis, it appears that annexation would be beneficial to the Town's long -term financial and development interests. with that said, the legal constraints imposed by current annexation laws, contextual factors related to the neighborhoods in question, and potential resource demands on staff required to initiate annexation make the pursuit of annexation of this area challenging and impracticable. Thus, based on the information provided, I recommend that the Council: 32 Reconsider the option proposed by orange County to enter into a service agreement to extend the Town's current fire district into the affected neighborhoods for a period of two years and initiate conversations with the County about how the changes in annexation laws affect the rational planning model established within orange County. If the Town of Chapel Hill does not proceed with the service agreement proposed by the County, an alternative available to the area and the County is to extend the Carrboro Fire District to include this area. This could create an even more confusing situation. Another option for the Town, even given the serious barriers described above, is to initiate annexation of Area 5, testing the assumption that annexation is now impractical and leading the state through its first town - initiated annexation effort following the legislative reforms of 2011 - 12. ATTACHMENTS Attachment 1. Parcel Map Area 5 Attachment 2. water and Sewer Service Map Area 5 Attachment 3. Street Mileage and Maintenance Map Area 5 Attachment 4. Annexation Criteria Map Area 5 Attachment 5. Timeline for City- Initiated Annexation 33 Table 2. `fatal Estimated Cost Years One -- Three Area 5 Annexation Area Cost Year 1 Year 2 Year 3 Solid Waste Collection $144,900 $1500 $153000 Street Maintenance $153,400 $1835000 $15300 Street Lighting $9,500 $9,500 $9,500 Public Transit $0 $0 $0 Landscaping $0 $0 $0 Traffic Signs & .Pavement Markings $ 25 000 8 004 $ , 0 $5, 00 "ire $303000 $0 $0 Police $25000 $200 $25000 Inspections $0 $0 $0 Stormwater Drainage $40,000 $4000 $4000 Water and Sewer (OWASA) Total Cost $4349400 $2571500 $257,500 �1� Table 3. Total Estimated Revenue Years One — Three Area 5 Annexation Area Revenue Year 1 Year 2 Year 3 Property Taxes — All Funds $945,300 $9451300 $945,300 (99% Collection) Property Taxes — General Fund Portion $7231344 $7231300 $723,300 (99% Collection Rate) Electric Franchise/Natural Gas $211700 $21, 704 $215700 Excise Tax Sales Tax $29,600 $30400 $3100 .Beer and Wine Tax $21700 $2,700 $21700 Telecommunications Tax $91200 $9,200 $9,204 Video Programming $9,204 $95240 $91204 Distribution Solid Waste Disposal Tax $400 $400 $400 Powell Bill $211000 $213000 $21,044 Total Revenue $1,039,100 $1,039,900 $11040,100 Legend - OWASA Water Mains t Fire Hydrants ---► OWASA Sewer Mains ® Water Only Customers Water and Sewer customers OWASA Service Boundary Boundary Designated by TOCH QO This map contains sensitive information, not to be copied or distributed without the express written permission of OWASA. This data is being provided as a visual representation and at no time should the data be considered exact. The data is not guaranteed to be accurate and is not intended as a substitute for a field survey. DWASA assumes no legal liability or responsibility forthis data. K ZINN OR rA -Aw f f/^ SUN 0 375 750 1,500 2,250 1 inch = 900 feet 13 m Feet 3,000 9 °Qn A a Legend clipped streets Maint <all other values> I p DOT 3.72 Miles Private 2.44 Miles y CA) rn 37 § 160A 58.54. Character of area to be annexed. (a) A municipal governing board may extend the municipal corporate limits to include any area that meets all of the following criteria: (1) It shall be adjacent or contiguous to the municipality's boundaries at the time the annexation proceeding is begun, except if the entire territory of a county water and sewer district created under G.S. 162A 86(b I) is being annexed, the annexation shall also include any noncon- tiguous pieces of the district as long as the part of the district with the greatest land area is adjacent or contiguous to the municipality's bound- aries at the time the annexation proceeding is begun. (2) At least one - eighth of the aggregate external boundaries of the area shall coincide with the municipal boundary. (3) No part of the area shall be included within the boundary of another incorporated municipality. (4) The total area to be annexed shall meet the requirements of any of the following_ a. Part or all of the area to be annexed must be developed for urban purposes at the time of approval of the report provided for in G.S. 160A 58.53. The area of streets and street rights of way shall not be used to determine total acreage under this subdivision. An area developed for urban purposes is defined as any area which meets any one of the fol- lowing standards: 3. Is so developed that at least sixty percent (60 %) of the total number of lots and tracts in the area at the time of annexation are used for residential, commercial, industrial, institutional, or governmental purposes, and is subdivided into lots and tracts such that at least sixty percent (60 %) of the total acreage, not counting the acreage used at the time of annexation for commercial, industrial, governmental, or institutional purposes, consists of lots and tracts three acres or less in size. Town of Chapel Hill (1) Adjacent or Contiguous to Town of Chapel Hill Corporate Limits a� 9r Durham Chapel Hill`�J �arrboroo� r "o 4 _ �p r (3) No Part within boundary of another incorporated municipality Town of Chapel Hill 50% coincides v ;2) 1/2 of Boundary coincident with Municipal Boundary 1 100 % Lots used for ' residential, commericial institutional, governmental purposes. ,418.9 Total Acres Residential Land -- 293.5/418.9=70 Nt t. (4) a. 3. Developed for Urban Purposes PW% Timeline for City- Initiated Annexation — HB 845 (SL 2011 -396) and HB 925 (SL 2612 -11) Resolution of Consideration (RC) Adopted Identifies areas under consideration for possible future annexation. Must include metes and bounds Publish Notice of RC Mail Notice of R C description or map, summary of annexation process Notice of adoption of RC published in Mail notice of RC to all at least and timelines. Effective for two years. newspaper of general circulation in property owners in area one year city once a week for two successive described in RC (and to county b/w RC weeks. Eacb publication on same day if area in county other than and RI during first 30 days after RC adopted of week, and second publication no county where majority of _ - - _ - - - - - - _ _ - - - - - - - - - _ _ - - _ _ _ _ _ _ _ _ _ more than 30 days after RC adopted. - - existing city located). Resolution of Intent (RI) Adopted Mail Notice of Meetings and Notify Board of Elections Indicates city's intent to begin annexation process Water /Sewer Opt-In n Notify county board of _ _ _ _ _ _ for specified areas that meet urbanization and First class mail notice to property owners in elections of adoption of RI. contiguity criteria, sets dates for public meetings, annexation area. Includes notice of public Send map and written and sets date for referendum.. meetings, boundary description and map, description of annexation summaries of process, summary of area. (Timing not specified; opportunity to vote in referendum, timeline, suggested to send at same and property owners' rights, and information time as mail notices.) within 5 business clays after RI adopted _ - - _ _ _ labout property owner's opportunity to obtain water /sewer extension at no cost. ' Provide Notice to ' Solid Waste Firms I at least 4 weeks before PIM Written notice of RI Post Information _ _ _ _ _ _ _ _ _ _ _ to 5W firms serving Post in city clerk's office (and on city's website Provide ' the annexation area. if any): annexation report, summary, map, list of Statement to i property owners, info on water and sewer County ' service, info on referendum_ If no appropriate Deliver at least 30 days Adopt Annexation Report and statement to before PIM Prepare Summaries newspaper for publication of notice of PEWPH, ' e Approve annexation report and services Post public places in annexation area and city. If county as to pp p city finds tax records inadequate for mailed effect on 45 to plan. Prepare summaries of services i 55 days plan, remedies and referendum process. notice ofPIM/PH, post buildings in annexation city's finances y area. and services. b/w RI and PIM ' Publish Notice of Meetings Publish notice of PIM and PH in newspaper in city once a week for two successive weeks. (And in newspaper in i during two weeks annexation area if in county other than where majority of city is located.) Each publication on same day of week; last ' before PIM publication no more than 10 days before info meeting. include description, reap, statement of availability of other info. ------- - - --•- :130 to ; Re -Send Returned Mail Notices 's 150 days at least 7 days before PIM - - - - - - - - - - - - - - - -, b/w - - If returned by I 0 day before PIM, re -send by certified snail, return receipt requested. RI .and PH s I Hold Public Informational Meeting (PIM) Explanation of report and services, distribution of summaries of process, timelines, (time remedies and referendum opportunity. Distribution of water /sewer opt-in varies) information and forms. Questions and answers. next city ; initial Water /Sewer Opt-in Deadline general) Deadline for initial opt -in for water/ sewer extensions electiort ; 65 days after RI adopted provided at city's cost (by simple majority of parcels }. Second Water /Sewer Opt-In Notice that is �-- - - -� -� �. If majority of parcels opt in, notify those more I within 5 days of close of initial opt -in period _ _ _ _ _ _ _ who failed to opt in of a second opportunity than 451 " '- - - to do so. days - E from R� E 30 days after second opt -in notice Second Water/Sewer Opt -1 n Deadline I {and at least 30 days before PH} Fire Dept Request L- - - - - - - - - - - _ _ _ _ ,- - _ - - - _ - - - - - - Deadline for second opt -in for water and sewer. Deadline for rural fire - - - -- 15 days before PH department to request 10 days before PH - offer. ---------------------------- ' Solid Waste Firm Request Hold Public Hearing (PH) Deadline for solid waste firm to request contract. ' Explanation Of report and I � - - - -__ services plan. Opportunity to Amend Services Plan comment. If necessary, amend annexation report/services plan to account for water /sewer opt -ins, other changes (timing may vary, but amend before adoption of ordinance). Hold Referendum on Proposed Annexation ......• ................................... Registered voters in the proposed annexation area vote for or against the annexation. If less than a majority of votes are cast for the annexation, the city may not proceed. A separate city-initiated process to annex that area may not begin for at least 36 months. 5 to 10 days after determined Results of Referendum Certified by County Board of Elections at least 10 days, if vote was FOR annexation Governing Body Adopts Annexation Ordinance Appeal by Fire Dept or Solid Waste Firm Rural fire dept or solid waste firm may appeal to LGC (time varies) within 30 days of passage of ordinance if no contract offered. ----------------- ----------- -_ see box .- on date 60 days after adoption of ordinance Appeal by Property Owners _ _ _ - - _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - _ _ Deadline for property owner to file challenge to annexation in superior court. Effective Date Ordinance must set as June 30 following ordinance adoption or Provide Services second June 30 following adoption, but not before time periods for Police protection, fire protection, solid waste collection and street water /sewer request and filing of appeal have expired. [In event of maintenance services to be provided on substantially same basis as in appeal, effective date will be amended to the first June 30 at least 6 _ rest of municipality in accordance with services plan. months after the final judgment or the city's completion of action to 3.5 conform to instructions on remand.] Service Remedies years Property owner may apply for writ of mandamus if required police, fire, _ _ _ _ _ _ Srorrc 30 days to 15 manilas - - effective date - - - - - - - - - - - - solid waste, or streets not provided. 60 days after effective date and 6months after effective date -__ Service Reports to LG C - Report to LGC as to provision of police, fire, solid waste and streets (60 days) and as to water/sewer extensions (6 months). Water /Sewer Connected Deadline for completion of major water and sewer infrastructure and individual connections to structures ifwater /sewer opt in was successful. In event of appeal in which a stay is granted, time is extended by length of the stay or one year, whichever is less. In event of permitting delays, city may seek extension from Local Government Commission. Mechanics of Annexation Supplement 3 - August 2012 2 -2