HomeMy WebLinkAboutMinutes 03-22-2018 Chapel Hill1
APPROVED 4/17/2018
MINUTES
JOINT MEETING
ORANGE COUNTY BOARD OF COMMISSIONERS
CHAPEL HILL TOWN COUNCIL
March 22, 2018
7:00 p.m.
The Orange County Board of Commissioners met with the Town of Chapel Hill for a joint
meeting on Thursday, March 22, 2018 at 7:00 p.m. at the Southern Human Services Center in
Chapel Hill, N.C.
COUNTY COMMISSIONERS PRESENT: Vice Chair Penny Rich and Commissioners Mia
Burroughs, Barry Jacobs, Earl McKee, Mark Marcoplos and Renee Price
COUNTY COMMISSIONERS ABSENT: Chair Mark Dorosin
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
Travis Myren and Clerk to the Board Donna Baker (All other staff members will be identified
appropriately below)
CHAPEL HILL TOWN COUNCIL MEMBERS/STAFF PRESENT: Mayor Pam Hemminger, and
Members Jessica Anderson, Donna Bell, Alan Buansi, Hongbin Gu, Nancy Oates, Rachel
Schaevitz, Michael Parker, Karen Stegman, and Town Manager Roger Stancil
CHAPEL HILLTOWN COUNCIL MEMBERS ABSENT: None
Commissioner Rich called the meeting to order at 7:04 p.m.
Welcome and Opening Remarks
Commissioner Rich said Chair Dorosin would not be present tonight, as he is not
feeling well.
Commissioner Rich asked all present to introduce themselves, and to share where they
were born.
Mayor Hemminger said it is National Water Day, and said there was a Jordan Lake
symposium today. She said the Haw River comes into the southern part of the lake,
contributing over 85% of the nutrient loading that is going into the lake; and it comes in and
flushes up the lake, all the way to the northern end.
Commissioner Rich said the Board of County Commissioners (BOCC) needs to add a
closed session at the end of the meeting.
A motion was made by Commissioner Burroughs, seconded by Commissioner
Marcoplos to add a closed session at the end of the meeting for the purpose of:
“To consult with an attorney employed or retained by the public body in order to preserve the
attorney-client privilege between the attorney and the public body,” NCGS 143-318.11(a)(3)
VOTE: UNANIMOUS
Commissioner Rich noted the following items at their places:
- Handout for Item 1
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- Handout for Item 2-a
- Handout for Item 4-b
- Handout for Item 5-g
1. Duke Energy-Neighborhood Energy Saver Program
Commissioner McKee arrived at 7:11 p.m.
Bonnie Hammersley introduced Indira Everett, the District Manager for Government &
Community Relations for Chatham, Durham, Lee and Orange Counties, who then introduced
Valencia Roner, Program Manager-Duke Energy.
Valencia Roner made the following PowerPoint presentation:
Neighborhood Energy Saver Program
March 22, 2018
Energy Saver Program
• An energy efficiency program targeting DEC’s income-qualifying customers
• Delivered by neighborhood segments
• Provides each resident:
1. Home energy assessment
2. Installation of several energy conservation measures (ECMs)
3. Energy education that will enable the residents to make behavioral changes to
reduce and control energy usage
NES Target Market –Eligibility
Eligible neighborhoods are those defined segments of Duke Energy customers where
approximately 50% of the households have incomes equal to or less than 200% of the federal
poverty level*.
*Federal Poverty Income Guidelines issued by the US DOE
NES Energy Conservation Measures
LED/Energy Efficient Bulbs (15)
Water Heater Wrap* & Insulation for Water Pipes
Water heater temperature check & adjustment
Low Flow Faucet Aerator (2)
Low Flow Showerhead (2)
Wall Plate Thermometer
AC Winterization Kit (3)
A year’s supply of HVAC filters
Change Filter Calendar
Air Infiltration Reduction Measures
Neighborhood Kick-Off Event
NES
Chapel Hill Neighborhood Collaborators
NES Kick-Off Events
April 10th – 6:30-8pm at Hargraves Community Center
Residents Receive:
• Free catered meal
• Demonstration on the FREE energy savings products they’ll receive when participating
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• Four changes to win a $25 gift card
• FREE events childcare
Crew Installs the Energy Measures and Explains Energy Savings
Small Business Energy Saver Program
Small Business Energy Saver offers turn-key energy efficiency upgrades with significant
discounts exclusively for small business customers.
The program offers:
A free, no obligation energy assessment
Specific energy-saving recommendations for small businesses
Complete, upfront coverage for up to 80 percent of all materials and installation costs
Convenient installation scheduled around the small business’s needs
Interest-free financing availability
SBES Program Details
• Eligibility
o Non-residential customer accounts with average annual demand of 100kW or
less
• Measures
o Lighting (T5 and T8 fluorescents, LEDs: interior and exterior)
o Refrigeration (improvements for small groceries and convenience stores)
• Incentive
o Up to 80%: Based on est. kWh savings vs. project cost
• Program Administrator: lime energy
Commissioner Price asked if long-term sustainability is possible, and if services are
provided more than once.
Valencia Roner said the information that is provided will hopefully encourage the
customers to engage and be proactive. She said neighborhoods are hit once, and not again.
She said sometimes a resident may miss out, and staff will be dispatched back out on a per
request basis. She said there are other energy efficiency programs of which residents can
take advantage, including a lighting program that will provide free light bulbs every 4 to 5
years.
Commissioner Price said she was more concerned about weatherization, as these are
lower wealth neighborhoods that may not be able to maintain repairs or up fits.
Valencia Roner said the average cost of labor and installation is below $300. She said
if a home has greater weatherization needs, the customer will be referred to the state
weatherization agency. She said there is also a weatherization program that is in the process
of identifying ways to reach customers that would not necessarily apply on their own.
Council Member Buansi asked if there are any outreach efforts regarding the small
business energy savers program.
Valencia Roner said no, not for this program. She said any small businesses that are
interested in learning more are referred to the program manager, who will follow up.
Indira Everett said the program manager for this program often attends Chamber of
Commerce expos, and talks with many small business owners.
Mayor Hemminger said she looks forward to the community meeting in the Northside
neighborhood.
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Commissioner Rich said April 10th is a Board of County Commissioners meeting, and
the Board will not be able to attend the neighborhood meeting, but may be able to send a staff
person.
2. Update on Major Projects Developments
a) Carraway Village/Glen Lennox/Wegmans/Eastowne/Blue Hill District (Formerly the
Ephesus Fordham Area)
Ben Hitchings, Chapel Hill Director of Planning and Development Services, reviewed
the following information:
Carraway Village-
MIXED-USE DEVELOPMENT
Location: 3000 Eubanks Rd., between MLK Jr. Blvd. and Millhouse Road
Description: Phase 1A - Demo, clearing and grading, erosion control
Phase 1B - Buildings 1-11, including 400 dwelling units and 8,844 s.f. of commercial FA.
Approvals: Special Use Permit approved in 2015; Zoning Compliance Permit approved for
Phase 1A and 1B in 2016.
Status: Building construction is on-going and the first units are anticipated to open in late
summer/early fall of 2018.
Approved Development:
Total area: 54 acres
Total: 600k – 935k sq. ft.
Residential: 400k-701k sq. ft.
Commercial: 140k-416k sq. ft.
Office: 60k-270k sq. ft.
Glen Lennox-
DEVELOPMENT AGREEMENT COMPLIANCE PERMIT
Location: South of Brandon Road and east of Fordham Blvd.
Description: Development of 215 apartment units in a 4-story building, in accordance with the
Glen Lennox Development Agreement. An internally wrapped parking deck will be provided to
serve the apartments and future office building. The project includes construction of a new
road, Glen Lennox Drive, which will connect Fordham Boulevard with Maxwell Road, and
dedicated left turn lanes with signalization will be provided on south-bound Fordham
Boulevard.
Status: The permit was approved in September and construction is anticipated to begin in
spring of 2018. Submittal of a Development Agreement Compliance Permit to permit an office
building directly adjacent to the apartment building is anticipated in spring of 2018.
Wegmans Food Market– is a collaborative effort
SPECIAL USE PERMIT
Location: 125 Old Durham Road
Description: 130,000 sq. ft. floor area; 750 parking spaces; existing zoning Community
Commercial and Neighborhood Commercial-Conditional. Access to the site via Old Durham
Road and ingress only via 15-501 Service Road.
Status: Council approved Special Use Permit in October 2017. Town will be issuing permit
shortly to allow demolition and rough grading. Site work is currently expected to begin in late
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summer of 2018, with construction on the store to begin in the fall of 2018, and completion
expected in the spring of 2020.
Commissioner Jacobs said the Town of Chapel Hill signed onto the resource material
recovery ordinance, and asked if he can assume that “demolition” means a preference of
deconstruction first, and then demolition; or if demolition is immediately pursued, despite the
ordinance.
Ben Hitchings said he is not familiar with this ordinance, but there is some site
mitigation that is part of the initial clearing and demolition of the project. He said the buildings
are mostly concrete, but he does not know what the deconstruction potential would be.
Commissioner Jacobs said the concrete is eminently deconstructable, and the
ordinance says that they have 30 days to deconstruct before demolishing. He referred Chapel
Hill to that ordinance.
Ben Hitchings said he can check into this ordinance, and will send a follow up to the
Board.
Eastowne-
SPECIAL USE PERMIT
Location: 100 & 600 Eastowne Drive
Description: Applicant request to demolish four existing office buildings and construct one
medical office building totaling 150,000 square feet with structured parking.
Status: Applicant presented concept plan to Town Council in January 2018. Applicant
submitted Special Use Permit application in March 2018. Possible decision by Town Council in
June 2018.
Blue Hill District-
Fordham Blvd Apartments
FORM DISTRICT PERMIT
Location: 1300 Fordham Blvd.
Description: The existing Days Inn Hotel is proposed to be demolished and replaced by one
building, split into two sections by a pedestrian walkway, pass-through, and driveway. The
southern portion of building, closer to S. Elliott Road is proposed to be six stories. 294,593
square feet, 273 dwelling units. The property is zoned Walkable Mixed-Use- 7 (WX-7).
Status: The Community Design Commission issued a Certificate of Appropriateness in
October 2017, and the Town Manager issued a Form District Permit in December 2017. The
Town is working with applicant on public-private partnership to construct stormwater storage
and park amenity. Construction is expected to begin in March 2018.
Hillstone Project
FORM DISTRICT PERMIT
Location: 1736 Fordham Blvd. (6.5 acre “bow tie” site, including former Crown Honda/Volvo
dealership).
Description: Approved project that includes two buildings with 328 dwelling units. The zoning
is Walkable Mixed Use–5 and -7 (WX-5 and 7). The project includes the construction of a new
street connecting the Fordham Blvd. service road and Legion Rd, streetscape improvements
on all three streets, and stormwater management and treatment features.
Status: Town Manager issued a Form District Permit in October 2017. Construction is
expected to begin in March 2018.
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Tru Hotel/Quality Inn Redevelopment
CERTIFICATE OF APPROPRIATENESS
Location: 1740 Fordham Blvd. (site of Hong Kong Buffet and Quality Inn)
Description: A proposal to build a 97-room Tru (Hilton) Hotel at the Hong Kong Buffet site in a
multi-phase development. Additional phases are anticipated to include a 100-room hotel and a
260-unit multi-family development. The property is zoned WX-5 and WX-7. The property is
adjacent to the Hillstone development.
Status: The application was presented to the Community Design Commission in February
2018. A Form District Permit application has not yet been submitted.
Commissioner Marcoplos asked if the impact on the light rail station sites could be
provided. He asked if projected population growth and/or potential light rail riders are being
tracked.
Ben Hitchings said there is no tracking mechanism in place currently, but he and Craig
Benedict, Orange County Planning Director, are working on this. He said they have been
actively talking with UNC Healthcare about how to connect Eastowne across 15-501 to the
planned Gateway station.
Commissioner Price asked if the income levels for most of these housing units are
known.
Ben Hitchings said the two Blue Hill projects are multi-family projects that are rentals,
but the lease rates are unknown. He said most projects are middle to upper middle class
projects.
Council Member Oates referred to the Tru Hotel project, and asked if there is a second
phase to this project with more apartments and offices.
Ben Hitchings said yes, the Tru Hotel is phase one. He said there is another 100-room
hotel, as well as a 260-unit multi family project that will be contemplated in future phases, but
there are no concrete details as yet.
Council Member Oates asked if the two phases would have separate developers.
Ben Hitchings said he is not sure at this time, and will get more information to the
boards.
Council Member Oates asked if stormwater mitigation would also be done in phases.
Ben Hitchings said yes.
Commissioner Rich referred to Glen Lennox, and said she was on the Town Council in
2009 when this was approved, and is glad to see this moving forward. She referred to the
light rail, and building density around the stations. She said the Town seems to be working on
this, and she would like to see some affordable housing around the stations as well.
Ben Hitchings said Planning staff is working closely the Housing and Community staff
to pursue affordability opportunities, especially around the light rail stations.
Commissioner Rich asked if he would please keep the BOCC informed.
Commissioner Price asked if Chapel Hill has any requirements for affordable units
within new housing developments.
Mayor Hemminger said the State law prohibits the Town from doing this with rentals,
but there is inclusionary zoning of 15% for owner occupied. She said the Town always tries to
negotiate with developers to secure affordable rentals, but cannot require them.
Council Member Bell said there is an affordable housing component with the Carraway
Village and Glen Lennox projects. She said most developers are providing payment-in-lieu at
this time, and the Town is working hard to increase the number of affordable units.
Mayor Hemminger said the Town failed to mention the DHIC project.
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Ben Hitchings said this project is Greenfield Place and Greenfield Commons, a nice
partnership between the Town and the non-profit, affordable housing developer, DHIC. He
said this project will provide a total of 149 units, and is currently in the middle of the second
phase, of 60 senior units.
Commissioner Rich said the hotel on Fordham Blvd, near Elliot Road, recently came
down, and asked if any of this was deconstructed or just demolished.
Ben Hitchings said he does not know.
b) Millhouse Road Property Analysis - Travis Myren
Travis Myren reviewed the following information:
The Board of Orange County Commissioners has allocated $2 million in the County’s Capital
Budget to address preservation and retention of manufactured homes parks and/or to assist in
the acquisition of property and land banking for future residential development as an
affordable housing alternative. Following the establishment of the land banking program, local
housing partners, including Orange County and the Town of Chapel Hill, began evaluating
opportunities and obstacles in redeveloping an existing manufactured home park or
developing new affordable housing units to address the needs of park residents at risk. A
summary of the results from the Mobile Home Park Survey Report were presented to County
and Town elected officials during the Assembly of Governments meeting in January.
Due to the potential redevelopment of existing manufactured home communities in the Town
of Chapel Hill, Orange County is exploring the opportunity to locate displaced manufactured
home park residents on County-owned property near the town. One site identified for a
potential manufactured home park is the Millhouse Road Park site. This 78-acre site,
comprised of two parcels, is zoned RB (Rural Buffer).
On January 23, 2018, the Board of Orange County Commissioners authorized staff to proceed
with a rezoning process as well as appropriate site investigations to determine whether this
property is able to accommodate affordable housing for displaced residents. Because of the
property’s location in the Rural Buffer, it is bound by density limitations detailed within the Joint
Planning Land Use Plan. These density regulations limit residential development to one
dwelling unit per two acres of property. As part of the rezoning effort, Orange County will
pursue the recombination of the two parcels which make up the 78-acre Millhouse Road Park
site which would allow for clustering home sites and allowing the balance of the property to be
used for park purposes. The County is also exploring community water and sewer solutions
that could be used as an alternative to extending public lines to the site since it is outside of
the area where public water and sewer service may be installed.
The Millhouse Road Park site is within the “Joint Courtesy Review Area”, as designated by the
Joint Planning Agreement. As such, both the Towns of Carrboro and Chapel Hill will have an
opportunity to review the rezoning proposal and offer recommendations. The County may not
formally adopt the proposed zoning amendment until the Towns have made recommendations
or until the expiration of forty-five (45) days following the referral of the rezoning proposal,
whichever occurs first. The County also recognizes that access to public transportation will be
important to the viability of this site as an affordable housing community. The County is
committed to working with the Town of Chapel Hill to establish safe and effective public transit
access to the site.
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The County has retained site consultants to complete the site examination and development
cost estimates. The results of these studies will be presented to the Board of Orange County
Commissioners for direction prior to the summer break.
Council Member Buansi asked if the number of acres in the joint planning review area
could be identified.
Craig Benedict said there are over 30,000 acres in the joint planning area, but only
about 70-80 acres in the Carrboro-Chapel Hill joint planning courtesy review area.
Commissioner Rich asked if this answered the question, or if Council Member Buansi
was seeking more specifics about the acreage on Millhouse Road.
Council Member Buansi said yes.
Commissioner Rich asked if it is the entire Millhouse Road property in the joint planning
area.
Craig Benedict said yes, all 78 acres of Orange County owned land is in the joint
courtesy review area, and is zoned rural buffer. He said the zoning in this area is one unit per
2 acres, and the rural buffer allows that to be collapsed down with a cluster configuration, but
no more than 39 units would be allowed. He said the low 30s is most likely, on 8-10 acres.
Commissioner Price asked if a map could be provided to the BOCC and the Town, to
offer greater clarity.
Craig Benedict said yes.
c) Eubanks Road Waste and Recycling Center
Bonnie Hammersley said Solid Waste Director Robert Williams was unable to attend, so
she presented the following information below:
The Eubanks Road Solid Waste & Recycling Center improvement project includes the
modernization of the existing Waste & Recycling Center and the relocation of the main landfill
entrance and scale house from the south side of Eubanks Road to the north side of Eubanks
Road. The improvements are part of an approved long range plan to establish two district
centers with increased services and extended hours which are complemented by
neighborhood centers that are smaller and offer fewer services but are conveniently located
throughout the County.
Eubanks Road is the second of the planned district centers. The improvements increase the
center’s size and capacity and offer customers one stop service. The $3.1 million dollar project
includes the addition of five (5) 40 cubic yard stationary compactors for trash and mixed
recyclables, two (2) larger stationary compactors for bulky waste, food waste composting,
cooking oil recycling, textile recycling, plastic bag recycling, and a number of other services
including mattress drop-off and hazardous waste recycling. With the addition of the
compactors, the department will save on fuel and maintenance costs over the life of the center.
The center offers safer unloading for users and a better experience due to the newly paved
user area. The center also has bio-retention and dry retention stormwater ponds for modern
flow control and treatment of stormwater runoff. Finally, moving the scales will result in much
safer traffic flow for the commercial and residential customers who use them.
After a year of construction, the grand opening is set for April 17, 2018 at 2:00 PM.
Following the opening, the temporary site on Millhouse Road will close as well as the
Household Hazardous Waste facility on the south side of Eubanks Road.
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d) Southern Branch Library
Travis Myren said Jeff Thompson, Orange County Asset Management Services
Director, had an obligation and could not be here tonight, and he reviewed the following
information:
The County has authorized approximately $6.4 million to construct a library facility in the Town
of Carrboro. The facility will be located at 203 South Greensboro Street.
The County and the Town of Carrboro have entered into a Development Agreement to co-
locate some Town offices with the County library facility on this site. A design firm has been
selected to negotiate a professional services agreement for this project. Negotiations with the
selected design firm are expected to be complete before the summer break. Design for the
facility will occur through the fall of 2018. Construction is anticipated to start in the winter of
2019 and be completed in the spring of 2021.
e) Southern County Campus
Travis Myren reviewed the following information:
The Board of Orange County Commissioners authorized the first phase of remodeling and
expansion of the Southern County Campus in FY2017-18. This campus includes the Seymour
Senior Center and the Southern Human Services Center facilities. The first phase of the
project includes an expansion of the Seymour Center, straightening the roadway entrance, and
adding parking space for the Seymour Center. The Board of Orange County Commissioners is
scheduled to review the schematic design of Phase 1 in June of 2018. Development design
and construction documents are anticipated to be complete in the winter of 2018, and
construction is anticipated to be complete is the late winter of 2020. The Town of Chapel Hill
planning staff will complete a technical review of the design documents as governed by the
master plan special use permit.
The second phase of this project includes remodeling the existing Southern Human
Services Center to improve the health and dental clinic areas and office spaces occupied by
the Department of Social Services. Construction of the second phase is scheduled to begin in
FY2019-20.
3. Discussion on Improving Collaboration on Gateway Area Planning
Ben Hitchings reviewed the following slide from the PowerPoint presentation from Item
2-a, and reviewed a graphic rendering of the area:
Collaboration in Gateway Area
Proposed Coordination:
• Regular updates
• Periodic discussions through Durham-Chapel Hill-Orange Work Group
(DRCHO)
• Staff coordination as needed
o Station Area
o State Employees Credit Union (SECU) area: to be redeveloped, plans
yet to come
o Wegmans
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o Edge of Blue Hill District Area
Ben Hitchings said there is a desire to connect these projects appropriately. He said
regular updates will be provided to the County, as well as to generate some statistics on
anticipated property tax revenues.
Commissioner Marcoplos asked if the Durham/Orange County line could be identified
on the map.
Ben Hitchings pointed it out.
Commissioner Marcoplos said the boundary means that the Durham County
developable area for the Gateway station is bounded by I-40.
Ben Hitchings said yes.
Commissioner Marcoplos said there is no particular boundary on the Orange County
side, but rather how far one wants to walk.
Ben Hitchings said yes, and how property owners decide to use property consistent
with the Town’s standards and approval processes.
Commissioner Marcoplos said it would be inaccurate for one to say that Durham has
the lion’s share of the developable area around the station.
Ben Hitchings said some of the land around the station will be needed for parking, the
platform, etc. He said there is a decent split between the two counties.
Commissioner Marcoplos said he would go further and say this is a great opportunity
for Orange County, and that Orange County has more opportunity for development.
Commissioner Rich said that is a good point and this has been discussed. She said
the Durham-Chapel Hill-Orange (DCHO) work group will share updates, and development on
the two sides of the County line could complement each other more.
Commissioner Jacobs asked if Ben Hitchings will notify the BOCC of updates on
meetings.
Ben Hitchings said yes, and will try to find a mechanism to update both the Town and
the County on these projects as they move forward.
Commissioner Jacobs said the agreement with Go Triangle states that Orange County
and Durham County will be participants in the planning of the Gateway station; not getting
updates, but being notified of when meetings will occur, and participating in them.
Ben Hitchings said there has been increasing coordination in recent months, and
County staff and Commissioner Marcoplos have attended recent planning meetings.
Commissioner Jacobs asked if the Durham County Commissioners are present at these
meetings.
Ben Hitchings said not at the station area planning meetings, but they have been
engaged on this topic through the DCHO work group.
Commissioner Jacobs said the County has been talking about this with GoTriangle for
half a year and the agreement stipulated that Orange and Durham Counties would be parties
to the discussions of the planning of the Gateway station. He said Durham is being short
changed if it is not being invited.
Ben Hitchings said Durham can be included.
Commissioner Jacobs said he has heard this before. He said he is glad that
Commissioner Marcoplos attended, but he did this on his own recognizance.
Commissioner Price clarified that the Durham Board of County Commissioners did not
attend, and asked if the Durham City Council attended.
Ben Hitchings said no, the Durham City Council has not attended the station area
planning meetings. He said the City Council does have representation on DCHO.
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Commissioner Price referred to Commissioner Marcoplos’ comment that Durham and
Orange County are receiving equal share for the light rail, and asked if he meant just the for
the Gateway Station, or for the whole project.
Commissioner Marcoplos said just for the Gateway Station.
4. Collaborative Economic Development Efforts & Challenges
a) Launch
Dwight Bassett, Chapel Hill Economic Development Director, said 35,000 square feet
of co-working space was added last year, and is beginning to fill up. He said this operation is
five years old. He said the Town and the County have invested about $400,000 over the last
five year, with a return of $12 million. He reviewed the following statistics:
• 1124 jobs created
• $12.75 million in funding in 2017, $20 million in annual revenue from the 62% of
the companies that continue to operate
• Graduated 75 companies, and 46 continue to be in operation – 10 of these
companies are in downtown Chapel Hill, and are contributing about $100,000 to
the downtown economy
• 5 years of success have brought national attention
• Entrepreneur magazine designated Chapel Hill as one of the top 5
entrepreneurial cities in the US
• Chapel Hill is one of the top 5 university-facilitated accelerators in the US
Dwight Bassett said he meets with every cohort, and encourages the businesses to
remain in Orange County and to contact and work with the Economic Development offices
directly.
Mayor Hemminger said the Town has an Innovation Council for entrepreneurs, and
there is a great deal of entrepreneurship in the community that is not connected to the
University.
Commissioner Price said she hopes the Town and the County can continue to work
together to keep these growing businesses in Orange County, as opposed to moving
elsewhere.
Mayor Hemminger said Dwight Bassett and Steve Brantley, Orange County Economic
Development Director, encourage this.
b) Arts
Background: The nationwide Arts and Economic Prosperity Survey 5 confirmed that the
nonprofit arts sector of Orange County is an annual $130 million industry that generates $5
million for local government and draws almost two million attendees each year.
Despite this impact and the large number of artists who call Orange County home, the local
arts industry is missing key components needed to grow and sustain a thriving, authentic arts
culture. The Orange County Arts Commission (OCAC) has recently concluded research to
determine these areas of need. By working in collaboration with town staff, local officials, and
area arts organizations, the OCAC plans to begin work to address these identified challenges,
resulting in a healthier arts industry and an even greater economic impact.
Katie Murray, Arts Commission Director, made the following PowerPoint presentation:
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The State of the Arts in Orange County
ECONOMIC IMPACT of the Arts
• $130.3 Million in Spending in 2015
• Arts Attendees: 1.9 Million in 2015
ARTS and GOVERNMENT
• Total revenue generated for local government in 2015: $5.3 Million
• Total revenue generated for state government in 2015: $7.1 Million
ARTS and TOURISM
• Audiences: Local vs. Non-local
ARTS and EMPLOYMENT
AEP5: The non-profit arts industry generates an estimated 5001 full time equivalent jobs and
$105,151,000 in resident household income
HOW do we COMPARE?
Hillsborough
• 3rd, cities with population less than 10k
Carrboro
• 4th, cities with population 15-25k
Chapel Hill
• 1st, cities with population 50-70k
Orange County
• 1st, counties with population 100-200k
• One of only two NC counties with populations less than 250k to rank in Top 10 NC
Counties
CHALLENGES of the arts community
• Why do artists leave the County to exhibit and perform?
• Why is there a lack of arts infrastructure?
• Why isn’t there more county-wide collaboration?
Our Research:
1. MEETINGS!
2. Listening Sessions
• Nine Sessions (180 Participants)
3. Paper & Electronic Surveys
• Six versions (184 responses)
#1 Advocacy: Serve as the “Voice” of the arts.
Primary current issue: SPACE!
• Short-term: County space assessment
• Long-term: Feasibility of a freestanding arts/cultural center, showcasing the
spirit of Orange County: the intersection of arts, agriculture/ culinary arts, and
history.
#2 Support our artists and arts organizations.
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• Artists & Arts Orgs
• OCAC: Provide a Strong Foundation
#3 Connect the arts community.
• Unite the arts community through events and collaborative programs
#4 Promote the arts
• Serve as a one-stop source of information for anything arts related in Orange County.
Promote the arts of Orange County through traditional and media sources.
#5 Find more financial support for the arts.
• Identify a new public source of funding designated for the arts, similar to other Public
Arts Commissions. (UNC Capstone)
• New funds will allow new programs, better organizational support and support for
(future) arts infrastructure.
OUR GOAL
Local Arts Agencies:
The Foundation of a Strong Arts Community
Primary granting agency for the arts
o Offers arts programming
o Ensures arts accessibility and engagement
o Provides artists and organizations support
o Manages public arts programs
Supports, advances, and unites arts community
Manages cultural arts facilities
Serves as a leader in community cultural planning
Advocates on behalf of the arts community
Develops partnerships within community
WHAT TO REMEMBER
The Arts Mean Business!
More investment = more tourism, spending, jobs, and government revenue!
Commissioner McKee asked if there could be clarification regarding the wording,
“identify a new public source of funding.”
Katie Murray said most public arts commissions are funded through an allotment for the
arts, for example Raleigh has a $5 allotment per capita and Cary has a $1 allotment; or
through an admission tax or a sin tax (cigarettes, soda, etc.). She said the Orange County
budget is solely funded by the occupancy tax, and other options are being researched. She
said the current budget is about $20,000, after grant funds and personnel expenses, which is
not much with which to work.
Council Member Oates asked if the Town were to find space would there be County
funds to help.
Katie Murray said she cannot answer that at this time, but in her opinion for an arts
facility to be recognized as a truly countywide facility, it needs to be outside the bounds of the
municipalities. She said it also unlikely that any of the towns have space large enough to
accommodate the needs of such a facility.
Council Member Parker said he would like to compare Orange County/Chapel Hill with
its peer cities regarding arts budgets. He said it seems like there is a lot of bang for very little
money here, but he would like to know what other areas are spending on the arts.
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Katie Murray said she has that information.
Council Member Buansi asked if there is a sense of the demographics at the meetings
that have been held.
Katie Murray said the demographics were varied in age and geography, but not in race.
She said diversity is needed on the Arts Board to change that in the community.
Commissioner Price said she questioned some of the statistics in the PowerPoint, in
regards to the numbers. She asked if there is anyway to insure accuracy of numbers, and not
count a person more than once.
Katie Murray said in that regards, the repeating of attendees does not matter, as
audience spending is determined by averages.
Commissioner Price said she is more concerned about the number of people in
attendance.
Katie Murray said attendance numbers come from the organizational surveys, not the
audience surveys. She said the organizational survey is very detailed, and goes out to all the
organizations. She said the amount of money spent is worked out in averages.
Commissioner Price said she is not talking about the dollars, but rather wanted to know
about the number of people attending events.
Mayor Hemminger said the dollars are more important than the number of people.
Commissioner Price said she wanted more accurate numbers, and if there are more
people coming in for the arts, as opposed to double counting the same attendees.
Council Member Schaevitz asked if the Arts Commission collaborates with University of
North Carolina (UNC), as well as non-UNC events.
Katie Murray said when she joined Orange County, she often heard about the lack of
collaboration with UNC. She said there has been discussion, and active pursuit of
collaboration with UNC. She said the Commission is working with UNC on its “Arts
Everywhere” day that will occur on April 6. She said it has been a very encouraging process.
Katie Murray said UNC has an arts app that tells everything arts related that is
occurring on campus. She said the Commission might partner with UNC to expand this to offer
countywide arts information in the future. She said this would be a massive undertaking.
Council Member Gu said she does not see many large festivals in Orange County, but
does see many in Raleigh and Cary, some of which are multi-day events, bringing in revenue
for local businesses. She asked if anything similar is planned in Orange County.
Katie Murray said the bulk of her background is in festival planning, and she loves
festivals, but they take a lot of thought and planning. She said the upcoming Local Fest in the
fall has the potential to grow. She said the “Near and Far” festival on April 8th will be the first
international festival in Orange County.
Commissioner Jacobs asked Katie Murray if she has found Orange County sees the
arts as an economic development driver.
Katie Murray said Orange County takes the arts as an economic driver very seriously,
and the fact that she is a County employee is a testament to that. She said any needs that
exist stems from the lack of a unified voice for Orange County, and once this happens the arts
will grow in Orange County.
c) Infrastructure - no materials provided.
Travis Myren said this item is intended to provide the Boards with an opportunity to
raise questions or initiate a discussion on water and sewer, transportation, or other
infrastructure improvements.
Mayor Hemminger said the Town and County staffs have been collaborating on many
of these issues.
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Travis Myren said the Rogers Road sewer project is a collaborative effort, which is
more than 30% complete in construction.
Mayor Hemminger asked if there is an estimated completion date.
Travis Myren said at the end of 2018.
5. Affordable Housing Update
a) Chapel Hill Dashboard
Loryn Clark, Chapel Hill Executive Director of Housing and Community reviewed the
information below:
The Town has developed a new Affordable Housing Dashboard, a dynamic, interactive tool to
track progress towards the Town’s affordable housing goals and provide users with information
about the Town’s investment in affordable housing throughout the community. The current
Dashboard tool builds on the affordable housing data reported to the Town Council through
our Affordable Housing Quarterly Report. The Town continues to build the Dashboard to
include further affordable housing information and increase the community’s knowledge and
ability to explore the Town’s affordable housing work.
Council Member Parker asked if it would be possible to get a map of the different
groups that have a role to play in affordable housing.
Loryn Clark said yes.
Commissioner Rich said she hears feedback from the public that there is poor
collaboration between the various governments. She asked if the many collaborative efforts
that actually do exist could be better promoted to the public.
Loryn Clark said yes that can be done, because there are multiple ways everyone is
working together.
Sherrill Hampton, Orange County Housing Director, agreed.
Commissioner Price said it might also be good to show the successful results of these
collaborations.
Council Member Anderson asked if this meeting is a place to brainstorm more ways to
collaborate.
Mayor Hemminger said one success story is the CASA project, which has County bond
money going towards it. She said Chapel Hill waives development fees for affordable housing,
and is participating in this project, along with the Town of Carrboro.
Loryn Clark said the CASA project is an example of the various planning departments
working together through the permitting process.
Commissioner Rich said it would be a good idea to get a matrix of all the areas of
collaboration to have at the next Assembly of Governments (AOG) meeting for further
discussion. She said Hillsborough, Carrboro and the Orange County portion of Mebane should
be included.
Council Member Anderson said that sounds like a good idea, but there are things on
this evening’s agenda that could benefit not only from an update, but from a sharing of ideas
as well. She said she does not know if this evening’s meeting is intended for discussion.
Council Member Bell said that was part of the conversation at the last AOG meeting in
January 2018.
Town Council Member Anderson said is up to date on the last AOG meeting. She said
she wants to know if this evening can serve as a time for an update, but also as a conversation
to keep things moving forward, in order to have the greatest collaboration and impact.
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Mayor Hemminger said it seems a good idea to get a clear picture of the current areas
of collaboration, prior to moving on to further discussion.
Commissioner Marcoplos said the next six items related to affordable housing, and any
ideas that may arise regarding collaboration could be suggested throughout these items.
Town Council Member Schaevitz referred to the comments about the public being
unaware of the many areas of collaboration, and suggested creating 90-second videos of the
areas of collaboration to put on social media platforms.
Sherrill Hampton said staff will take these comments back and work on these
suggestions.
b) Town’s Affordable Housing Bond Referendum
Loryn Clark reviewed the following information:
In support of the Chapel Hill 2020 theme of creating a place for everyone, on February 21,
2018 the Town Council adopted a framework to develop and preserve affordable housing
opportunities in Chapel Hill. Staff also developed annual and five year targets for development
and preservation of affordable housing. The Council also reviewed an investment plan that
identifies General Obligation (G.O.) bonds as the most effective and efficient funding source to
support the investment plan. The proposed referendum, for up to $10.0 million of Affordable
Housing Bonds, was approved on March 21st and would be scheduled for November 6, 2018.
The amount of the proposed referendum is based, in part, on the target number of affordable
housing units and the average subsidy per unit. On March 21, the Council is scheduled to
consider a preliminary resolution to pursue a bond referendum in November.
c) Town Homestead Road Project
Loryn Clark reviewed the following information:
The Town has engaged a design firm to create a concept plan for development of a Town-
owned site located at 2200 Homestead Road site. Town staff has met with potential
community partners and held two public meetings. Town staff is currently incorporating
feedback received to date into a single concept plan for submittal to the Town’s Community
Design Commission in April and the Town Council in June.
Council Member Anderson said this was envisioned as a partnering effort with UNC
Healthcare, and asked if there is a status update.
Loryn Clark said conversations are ongoing with UNC Healthcare, and information was
recently received that the partnership may not work. She said the partnership was intended to
bring in a few million dollars to help with construction and infrastructure. She said other
possible partners are being researched, as well as low-income housing tax credits, and other
potential funding for this site.
Commissioner Price asked if the Town would be looking to the County for any type of
assistance.
Loryn Clark said this is possible, and these projects have been shared with the
affordable housing collaborative group.
Commissioner Price said she was thinking more of the financial side of things.
Mayor Hemminger said financial collaboration is always welcome, and the Town is
trying to discern where it stands with UNC.
Council Member Parker referred to the mix of incomes, and asked if any of those would
be market rate mix, or just mix of incomes within the affordable housing umbrella.
Loryn Clark said their consultant has run models for both, and she said they are in the
process of narrowing this down. She said if mixed income development is included in this site,
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the Town’s subsidy will be lowered, which may be desirable. She said this information is being
analyzed, and further information will be provided to the Council.
Council Member Oates said the Council passed a resolution that this project would be a
mix of market rate and affordability. She said the public often discusses the racial component
when discussing affordable housing; that there are many people of color who are eligible for
low income subsidized housing, and when projects are built that are only subsidized housing, it
segregates this population. She said the goal is to mix in affordable housing with market rate
housing.
Mayor Hemminger said opportunities for further collaboration can be discussed further
in the future.
d) Town Plans for Redevelopment of Public Housing Sites
Loryn Clark reviewed the following information:
The Town of Chapel Hill owns and manages 336 currently occupied public housing apartments
in 12 communities throughout Town and one in Carrboro, ranging from two bedroom to 5
bedroom units and they are assessing all of these sites. The Town is creating a Public Housing
Master Plan. The purpose of the Plan is to guide the Town’s decision making related to the
maintenance, development and redevelopment potential of the Town’s public housing
inventory. The first phase of the plan included an inspection of all properties using federal
standards and an appraisal of all the neighborhoods. The second phase is currently underway
and will provide a detailed structural and physical assessment of all 336 living units and
condition of all buildings. Town staff is scheduled to provide an update on the Master Plan
process in May.
Loryn Clark talked about the Northside Neighborhood Initiative, which is a partnership
between the Jackson Center and SelfHelp, as well as some other housing non-profits in the
community. She said these groups are working together to create housing opportunities in the
Northside neighborhood. She said when this initiative began, the Town agreed to provide
about $200,000 annually for three years to support the administrative functions, related to the
land bank. She said this was also supported by a $3 million loan from UNC. She said this
effort is going strong, and is an excellent example of collaboration. She said SelfHelp recently
provided a summary of successes:
• 28 affordable units have been created, or under redevelopment
• 24 properties have been purchased into the land bank; 10 of which have been resold to
partners or home buyers
• 18 new families have moved to the neighborhood, 12 of which have historic ties to the
neighborhood
• Because of the work done by the collaborative group, there has been an increase in
the African American population in this neighborhood since 1980
• 46 home repairs
• 41 seniors who have received property tax assistance through a private grant received
by the Jackson Center.
Loryn Clark said this initiative is expanding into other neighborhoods, and may seek
assistance from the various governments in the future.
Mayor Hemminger said this is good bang for the buck.
Commissioner Price asked if there is any idea of the number of households, who are at
risk of losing their homes in Chapel Hill, because of higher property taxes or any other
reasons; and how this number relates to the amount of units being built.
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Council Member Bell left at 9:02 p.m.
Loryn Clark said she does not have that information specifically, but there is a higher
number of lower income families that live in the community that are cost burdened; paying
more than 30% of their household income on housing expenses. She said this may be one
way to get a sense of the need. She said this information is included in their dashboard.
e) Manufactured Housing Relocation Opportunities-Sherrill Hampton
Sherrill Hampton reviewed the information below:
County and Town of Chapel Hill staff have been engaged in a variety of activities to respond to
the potential displacement of manufactured home park residents.
The Town has been engaged with residents in the Lakeview Park while the County has been
working with residents of the Homestead Park to prepare for potential displacement.
Discussions with the Towns of Carrboro, Chapel Hill and Hillsborough began before and have
continued since the Board of Commissioners’ approval of the Manufactured Home Work
Group recommendations. Discussions have focused on the development of a coordinated
approach between the jurisdictions and sharing pertinent information.
Below is a timeline of events and preparation for potential housing displacements.
• January 2018 – Orange County staff learned of a potential manufactured home park
closure, and Town of Chapel Hill staff shared notice regarding the potential closure and
redevelopment of the Lakeview Mobile Home Park.
• January 16, 2018 – County staff held a meeting of the Manufactured Home Park Work
Group to receive input and comments on a draft Rapid Response Protocol.
• January 23, 2018 – County staff presented a proposal to use a portion of the County-
owned Millhouse Road property as a potential site for a new manufactured home park
to the Board of Orange County Commissioners. The Board approved moving forward
with completing a full assessment of the proposed site, including an environmental and
engineering study, as well as initiation of the rezoning process, as applicable.
• January 30, 2018 – The approved Manufactured Home Work Group recommendations,
along with a synopsis of the proposed Millhouse Road project, were presented at the
2018 Assembly of Governments meeting. Additional input and comments were
gathered as to the creation of a comprehensive and coordinated strategy regarding the
Manufactured Home Park Initiative.
• January 30, 2018 – The Town of Chapel Hill developed a response strategy for the
proposed closure of the Lakeview Mobile Home Park and shared that information with
Orange County staff.
• February 1, 2018 – County staff learned of the proposed displacement of residents at
the Homestead Mobile Park located in an unincorporated part of the County outside of
Chapel Hill. The Homestead Mobile Home Park includes approximately nine (9) homes
that could be affected by the closure. Staff had a conversation with the park owner to
discuss the situation.
Conversations with the Park owner have continued.
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• February 9, 2018 – County staff convened an initial meeting of the Rapid Response
Team to plan for a community meeting with the Homestead Mobile Home Park
residents. The County Manager invited Chapel Hill-Carrboro City Schools and Orange
County Schools to be a part of the Manufactured Home Park Work Group and the
Rapid Response Team.
• February 24, 2018 – A meeting was held with the residents of the Homestead Mobile
Home Park to gather their input and comments, as well as ascertain their needs given
the proposed displacement. Three families met with staff. County staff continues to
conduct due diligence on the Millhouse Road site and other identified strategies,
including identifying cost centers and gathering applicable pricing information.
• On March 6, 2018, Rehabilitation Specialists in the Housing and Community
Development Department conducted an inspection of three of units at the Homestead
Mobile Home Park. The manufactured homes could be moved safely without significant
investment.
• On March 7, 2018, graduate interns working in the Housing and Community
Development Department, along with other UNC-Chapel Hill graduate students, held a
“phone-a-thon” to contact the 100 manufactured home park owners in the County to
gather information and identify available vacancies. In mid-April 2018, an information
session will be held with manufactured home park owners to provide information
gathered during the “phone-a-thon.”
• The County’s Rapid Response Team met on March 13, 2018 to review a draft proposal
of services for residents of the Homestead Mobile Home Park. A representative from
Orange County Schools participated in the meeting to discuss school assignment
issues as students move within the District.
• On March 17, 2018, staff will met again with the residents of Homestead Mobile Home
Park to discuss and evaluate potential options for relocation.
• On March 20, staff proposed two options for relocation services and assistance to the
Board of Orange County Commissioners. One option would assist residents in locating
alternative affordable housing in existing multifamily units dedicated to serving low and
very low-income individuals and families. The other options would initiate a contract
with Empowerment Inc. to provide Relocation Coordinator Services including serving as
a property manager.
None of their families opted for option one. They preferred Option 2 and staff is moving
forward with option 2.
Council Member Buansi referred to the meeting in April, and asked if those who will be
in attendance can be identified.
Sherrill Hampton said there are two groups, with representatives from each of the
jurisdictions: the work group formed before she got here, and the rapid response team, which
includes interdepartmental members, along with representatives from the school districts.
Town Council Member Anderson asked if the meeting will include Lakeview.
Sherrill Hampton said all mobile park owners will be invited, including the owner of
Lakeview. She said she will ask Loryn Clark if the Town would like to invite the developer, and
if the park owner is agreeable she will invite the developer. She said the meeting is for the
owners. She said staff wants to create a database of these mobile park owners.
Town Council Member Anderson asked Sherrill Hampton to elaborate on the
collaboration process.
Sherrill Hampton said information is shared where each of the jurisdictions are in that
process, as well as via a monthly update.
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Town Council Member Anderson asked if there is any strategic overlap, beyond
information sharing.
Sherrill Hampton said she received the information from Loryn Clark, and staff is
reviewing this. She said she and Loryn Clark have spoken about agreeing upon the protocol
of resident engagement.
Council Member Anderson said for the future, it would be helpful to know of shared
strategies and resources, etc.
Sherrill Hampton said the County has shared about the Millhouse property site with the
Town of Chapel Hill, which the Town is analyzing.
Council Member Parker said this is the first instance of a county-wide rolling problem
with this mobile home parks relocation. He asked if there are countywide strategies that could
be deployed at specific mobile home parks, rather than looking at each park as an individual
entity. He said each park is unique, but there must be common threads through all. He said
the current approach seems like a game of ping-pong, and asked if it would be more beneficial
to look at this problem countywide.
Sherrill Hampton said yes, but both jurisdictions had to analyze the various situations.
She said county-wide strategies will grow over time, and Chapel Hill’s processes may be a bit
different than those in rural areas. She said resident engagement is crucial in all scenarios, as
well as reaching out to developers in the redevelopment process.
Loryn Clark said extensive outreach to the mobile home park residents is being
completed, which is providing a lot of useful information.
Mayor Hemminger said the Town Council just received the report late this afternoon.
Loryn Clark reviewed the information, and said that earlier in the year staff developed a
Lakeview Mobile Home Park Strategy, specifically in response to a developer coming forward
and expressing interest in redevelopment of this site. She said staff developed a strategy to
build relationships with the residents in this mobile home park, with the assistance of Delores
Bailey from Empowerment and the Navigators from the Family Success Alliance (FSA). She
said the next step is to develop a menu of options to present to the Town Council. She said
most residents are not interested in being relocated to a mobile home park; are not interested
in a one time payment for relocation assistance; and most families preferred a detached home
in Chapel Hill that is close to their school district and close to their work. She said the third
piece of the strategy is to identify sites for mobile home relocation, which includes
consideration of school district, access to public transportation, water and sewer and
walkability. She said the Planning Department is conducting an analysis of publicly owned
land parcels, and an update will be provided to the Town Council in March.
Loryn Clark said the final piece of the strategy is to develop a coordinated plan to apply
to any mobile home park.
Council Member Gu asked if there was a top priority for the families.
Loryn Clark said the survey did ask the families to rank priorities.
Sherrill Hampton said another tool in their toolbox is the County fund that will be
provided to mobile home park owners who would like to update or enhance their park, or buy
additional land that may be adjacent, to expand their park.
Roger Stancil, Chapel Hill Town Manager, said the Managers of the jurisdictions meet
with their housing staffs and providers on a monthly basis. He said the Lake View Park
collaboration is a success because they work with their non-profits and the FSA from Orange
County.
Council Member Buansi said at the meeting with the park owners in April it is important
that staff highlight the preferences of the residents.
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f) Greene Tract
Craig Benedict, Orange County Planning Director, provided the following update:
The Greene Tract is a 164 acre parcel of which 104 acres is jointly owned by Orange County,
Chapel Hill, and Carrboro. The remaining sixty (60) acres is owned by
Orange County and has been designated as the Headwaters Preserve.
In late 2016, the owners of the jointly owned portion of the Greene Tract agreed to have the
Town Mayors and Board Chair consider different preservation and development options for the
property. This discussion resulted in three alternatives that illustrate high, medium, and low
development intensities. All of the alternatives include an elementary school site, a site for a
future park, the preservation of significant environmental and cultural areas, and a preliminary
road network and infrastructure design. The three alternatives also consider the project area’s
current environmental conditions, elements of the 2002 Joint Governments Resolution, the
Rogers Road Task Force report, the Mapping Our Community’s Future report, and previous
land use discussions. These three alternatives are contained in Attachment 5f-3.
In addition to the high, medium, and low development intensity scenarios, the Mayors and
Chair requested an examination of the entire Greene Tract, including the Headwaters
Preserve, in an effort to preserve the most environmentally sensitive areas and to develop the
most appropriate areas of the entire 164 acre Tract. As a result, staff amended the proposed
conceptual plan, reconfiguring the Headwaters Preserve and the jointly owned areas. This
reconfiguration maintains the same total acreage for each of the areas but aligns them
differently. The reconfigured tracts were drafted with environmental staff from the Town of
Chapel Hill, the Town of Carrboro, and Orange County in order to create new parcels, which
endeavored to protect environmental features and habitats located on site. The proposed
reconfigured Headwaters Preserve area alternatives are also contained in Attachment 5f-3.
Attachment 5f-4 includes land use and density outcomes for the different alternatives.
Attachment 5f-5 includes potential affordable housing outputs based on different affordable
housing proportions.
The Board of Orange County Commissioners had a preliminary discussion about planning for
the Greene Tract on February 20. Based on this discussion, the Board of Commissioners
asked staff to communicate the following preferences with the other owners of the property:
• Modify the headwaters preserve configuration, with the goal of creating, or protecting,
the natural north-south corridor, with the exact boundaries to be determined;
• Begin with the highest developable areas;
• Seek input from the Towns of Chapel Hill and Carrboro with the goal of communicating
the Town’s preferences by May 1;
• Set up the walking tour as soon as possible; and
• Host a community meeting, presenting that, which has been learned, between the
walking tour and May 1.
The Board of Commissioners expressed interest in continuing the dialogue with Town elected
officials on a timeline that could allow for final directions to staff prior to the summer break. A
guided walking tour of the property is scheduled for March 23 with two tours, one beginning at
9:00 and the other beginning at 2:00.
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Council Member Stegman asked if it would be possible to schedule an additional tour
since the Council just found out about it this afternoon.
Donna Baker said the invite went out to the Board of Aldermen and the Town Council a
month ago, as well as to the Clerks and the Managers.
Craig Benedict said staff will do its best to schedule an additional tour.
Commissioner Rich said the BOCC asked for comments from the Town by May 1, and
asked if this is possible.
Roger Stancil said it can be, but he not sure about all of this. He said it can be put on
the agenda for that request.
Commissioner Rich said the BOCC really wants to move forward on this, as the Greene
Tract has been discussed for years.
Roger Stancil said all the Managers are discussing this topic, and Town staff can
provide a tour to Council members who may not be able to attend tomorrow.
Mayor Hemminger said she plans to attend tomorrow, and asked if it is possible to walk
the roadbed that connects down to Merin Road. She said it is her understanding that there is
a connection that goes out of Rogers Road over to Eubanks, and asked if this could be
included in the tour as well.
Craig Benedict said he would try to incorporate these elements into the tour.
Commissioner Marcoplos echoed Commissioner Rich’s comments, and said the
Greene Tract is an incredible resource, especially for affordable housing. He said he hopes all
would be working collaboratively on affordable housing on the Greene Tract, and County staff
is looking into what it would take to have community solar as part of an affordable housing
project there. He said it is also wise to think about having agreed upon building standards,
such as energy efficiency, resource efficient, maintenance efficient, etc.
Mayor Hemminger said she is excited about this process, and the Town’s housing
partners are also eager to be a part of this discussion.
g) Orange Water and Sewer Authority (OWASA) Policy
Travis Myren reviewed the following information:
A nine member Board of Directors governs the Orange Water & Sewer Authority (OWASA).
The Chapel Hill Town Council appoints five members, the Carrboro Board of Aldermen
appoints two members, and the Orange County Board of Commissioners appoints two Board
Members. The OWASA Board adopts the annual budget; sets rates, fees and charges;
approves bond issues to fund capital projects; makes policy decisions; and appoints the
Executive Director, General Counsel and independent auditor. The fees associated with
connecting to OWASA infrastructure have been cited as one of the barriers to constructing low
cost, affordable housing. This item is intended to serve as a point of discussion for how the
appointing Boards could work with their appointees to the OWASA Board of Directors to
potentially reduce the cost of the connections for affordable housing developments.
Karen Stegman left at 9:43 p.m.
Travis Myren said the OWASA management provided a three-page handout, which
provides the trajectory for OWASA’s fees.
Mayor Hemminger said the Chair and Mayors met to discuss approaching OWASA
together about opportunities, and this is a result of those conversations.
Mary Tiger, OWASA Sustainability Manager, reviewed the following information:
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OWASA Fees for New Service Connections, As It Pertains to Affordable Housing
Initiatives and Other Community Purposes
March 22, 2018
Prepared by OWASA staff for the March 22, 2018 Orange County Board of County
Commissioners and Chapel Hill Town Council Joint Meeting
OWASA values that safe and affordable water and wastewater services are fundamental to
the health of our local community, environment, and economy. We are committed to providing
high-quality and reliable services in a cost-effective way for the entire community. We
recognize that, in some cases, this is still not enough and the cost of connecting to OWASA’s
infrastructure can be a hardship. OWASA understands the importance of affordable housing
for our community.
The following memo describes efforts underway that will lessen the cost to connect. We will
continue to work with our community partners to identify viable strategies for the affordability of
water and wastewater service.
Statutes and Agreements Governing OWASA’s Rates and Fees
NC Statute 162A does not provide OWASA the authority to reduce or waive rates, fees or
charges for any customer or customer class based on income or public purpose. A summary of
the pertinent statutes and agreements is provided in Attachment 1.
NC Session Law 2017-138
Last year, the state passed N.C. Session Law 2017-138 which authorizes public water and
sewer utilities to charge system development fees using one of three different methodologies.
With the help of rate consultants, OWASA staff evaluated the statute’s options for calculating
the fees and chose the method most appropriate for OWASA and its customers. The method
chosen also resulted in lower fees than the other options. As required by the new statute:
• A report on the new system development fees has been posted on OWASA’s website.
• We have invited and are accepting comments on the proposed changes up to and
through a public hearing scheduled for May 24, 2018.
• OWASA’s Board of Directors will consider approving the new system development fees
on June 14, 2018.
• The new fees must be in-place by July 1, 2018.
Combined 10% to 51% Reduction in System Development Fees from Last Year
The new fee development methodology results in a proposed reduction of 10% to 40% of
current system development fees, depending on the type of development. The proposed
changes are outlined in Table 1. The proposed fees also include a new lower-tier rate for
homes 800 square feet or smaller. In addition to the proposed reductions shown in Table 1, in
October 2017, we also reduced system development fees, based on an updated analysis of
costs and rates.
In total, the reductions made in October 2017 combined with those proposed to take place July
2018, OWASA’s system development fees will be 10% to 51% less than they were prior to
October 2017.
Information about OWASA’s system development fees was included in a December 18, 2017
letter to Mayor Hemminger, Mayor Lavelle and Chair Dorosin (Attachment 2).
System Development Fee Comparison
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• System development fees are known by a variety of names, e.g. availability fees,
impact fees. These are one-time fees for new connections, such as new residences
and businesses, to the community’s water and sewer system. System development
fees recover the cost of the capacity needed to provide water and sewer services to
these new properties.
• Utilities use a variety of methods to calculate these type fees:
o Size of meter serving the property
o Square footage
o Type of property
• OWASA was one of the first utilities to use square footage in determining fees
applicable to residences.
• Table 2 shows a comparison of system development fees neighboring utilities charge
for a 1,600-square foot residential property. (Rates shown for OWASA are proposed
based on the new NC law. The other utilities listed must go through the same process
so their rates may also change.)
• Number of accounts is noted because in a capital-intensive industry, such as water and
wastewater, economies of scale (or lack thereof) can significantly impact cost-of-service
fees.
Council Member Parker said he applauds the creation of the lower tier, and bringing the
rates down. He referred to tiny homes, which are typically 500 square feet or less, and asked
if it would be possible to have an even lower tier just geared towards tiny homes. He said
many of the tiny homes use compost toilets, and asked if it would be possible to get a special
discount on the sewer rates, if the standard amount of sewerage is not being used.
Mary Tiger said these are things that can be considered as the data is reviewed. She
said the marked change in water usage seems to be at 800 square feet or less.
Council Member Schaevitz said she has heard from OWASA that the percentage of
people who participate in the care to share program was 8%. She asked if this is still accurate.
Mary Tiger said it is probably about 5%.
Council Member Schaevitz said she would like to think of ways that this number can be
increased. She said it is likely related to a marketing need. She asked if Mary Tiger could
come back with some suggestions as to how the elected boards can help.
Mary Tiger said she would be glad too.
Commissioner Rich said elected officials have been trying to do this for years.
Council Member Parker said to make it an opt-out program, rather than an opt-in.
Council Member Schaevitz asked if it is legally possible to make that change.
Commissioner Rich said staff can provide the data from previous attempts to increase
awareness of this program, and perhaps a new set of eyes will come up with new suggestions.
Mary Tiger said Care to Share has typically been promoted as a round-up program, and
about 95% of contributors would round up, and 5% were contributing a fixed amount. She
said 35% comes from these fixed contributors. She said letters have been sent out to
contributors, encouraging them to use the fixed model of contribution.
Commissioner Rich asked if Mary Tiger would highlight where these funds go.
Mary Tiger said the funds go to the InterFaith Council for Social Services (IFC), which
they use to help their clients pay for water and sewer services, and provide rent assistance
when it includes water and sewer service.
Commissioner Jacobs said OWASA participates, but the Mayor started a Jordan Lake
user/protector group and having sat through several of the meetings and listened as Raleigh
and Durham by land in Orange County to protect water quality, and he wrote a letter to the
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OWASA board asking why they have stopped doing so, and encouraging resumption. He said
he is still waiting for an answer, and he would like to see OWASA participate with the County
and others to do conservation easements and protect water quality.
Mary Tiger said she would relay this comment back to the OWASA board.
CLOSED SESSION:
A motion was made by Commissioner Price, seconded by Commissioner Burroughs to
go into closed session at 9:56 p.m. for the purpose of:
“To consult with an attorney employed or retained by the public body in order to preserve the
attorney-client privilege between the attorney and the public body,” NCGS 143-318.11(a)(3)
VOTE: UNANIMOUS
RECONVENE INTO REGULAR SESSION
A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
reconvene into regular session at 10:35 p.m.
VOTE: UNANIMOUS
ADJOURNMENT
A motion was made by Commissioner Jacobs, seconded by Commissioner Price to
adjourn the meeting at 10:35 p.m.
VOTE: UNANIMOUS
Penny Rich, Vice Chair
Donna Baker
Clerk to the Board