AGENDA #4i
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Report: Overview of Areas Under Consideration for Possible Future Annexation
DATE: November 24, 2003
The purpose of this report is to provide an overview of areas under consideration for possible future annexation (see Map 1). This report concludes that for 2004 a Town-initiated annexation would not promote the Town’s long term annexation strategy.
To aid the Council in future consideration of annexation plans we recommend that the Council request that the Orange Water and Sewer Authority (OWASA) estimate the work and costs required to provide water and sewer services to existing developed areas between the current Town Limits and the Urban Services Area boundary. Such information will assist the Town in further developing a long-range annexation strategy for these areas.
This is Part B of a two-part item related to annexations on tonight’s agenda.
BACKGROUND
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 (excluding State roads), and all other services provided by the municipality, on the same basis as provided within the existing municipal boundaries.
Annexation has occurred on a regular basis in Chapel Hill. Over the last ten years, the Town completed the following annexations, with the effective dates noted:
June 30, 1993 Springcrest • Phases 3 & 4 (Petition)
Springcrest • Town-Owned Open Space (Petition)
June 30, 1994 Culbreth Middle School (Petition)
June 30, 1995 Weaver Dairy Road/Erwin Road (Town-initiated)
Clark Lake Road • 3 Lots (Town-initiated)
Culbreth Park/Hundred Oaks (Town-initiated)
Cobble Ridge • Phases 1 - 4 (Town-initiated)
June 30, 1996 OWASA Parcel (Petition)
December 31, 1997 Lowes Parcel (portion) (Petition)
June 30, 1998 Homestead Village/Horace Williams Tract (Town-initiated)
Oaks III • Phase B5b (Town-initiated)
June 30, 2000 Englewood Subdivision (Town-initiated)
UNC/Faculty-Staff Club (Town-initiated)
June 30, 2001 Notting Hill Area (Town-initiated)
Southern Village (Town-initiated)
June 30, 2003 Parkside II area (Town-initiated)
December 31, 2003 Avalon Park (Petition)
METHODS OF ANNEXATION
There are three primary methods that the Town may use under State law to annex land:
1) Town-initiated Annexation - The Town may undertake to annex by ordinance certain areas that meet statutory standards for contiguity, population density, and intensity of development.
2) Contiguous Annexation Petition - The Town may annex by ordinance any area contiguous to its boundaries upon presentation of a petition signed by all of the owners of real property located within such area.
3) Non-Contiguous "Satellite" Annexation Petition - The Town may annex by ordinance certain areas that meet statutory standards and whose boundaries do not at any point touch the Town's primary corporate limits. Non-Contiguous "Satellite" annexation petitions must be signed by all the owners of real property located within such area.
In general, Town-initiated annexations are a more complicated process than annexation by petition. Town-initiated annexations however, allow municipalities to have greater control over the timing of growth and the shaping of their corporate limits.
The Town's general policy, as reflected in annexation decisions in the last 20 years, has been to annex areas when they qualify under State law and when the Town can practically extend and finance municipal services to the qualifying areas.
WATER AND SEWER COST CONSIDERATIONS
In accordance with State law, major trunk water mains and sewer outfall lines must be extended into an annexation area so that property owners will then be able to secure public water and sewer service according to policies in effect for extending services to individual lots or subdivisions. Where the extension of major water or sewer lines is necessary, an annexation plan must set out a timetable for completion of construction within two years of the effective date of annexation.
Once major trunk water mains and sewer outfall lines are extended into an annexation area, then the extension of water and sewer lines to existing individual lots or subdivisions is available in accordance with OWASA policies. In areas where the municipality is required to extend sewer service according to its policies, but the installation of sewer is not economically feasible due to the unique topography of the area, the municipality must provide septic system maintenance and repair service until such time as sewer service is provided to properties similarly situated.
OWASA's general policy is to allow extensions to the public water and sewer system, within or outside of Town limits, provided that the benefiting parties pay the cost through assessments under OWASA policy. Developers may extend lines at their expense and in accordance with OWASA standards. OWASA will not extend water or sewer lines outside of the urban services district identified by the Towns of Chapel Hill and Carrboro.
The financial feasibility of any annexation would be affected by the Council’s policy to assist in paying for public sewer construction in neighborhoods now served with individual septic or other private wastewater systems. The Town of Chapel Hill provides a 20% subsidy to sewer projects for existing neighborhoods with private systems, with a cap of $4,500 per lot based on the total number of lots in the project which is being subsidized, pursuant to a revised policy adopted by the Council on September 9, 1998. Funds for specific projects are approved by the Town Council and must be made available through the annual budget and Capital Improvements Program process. The balance now reserved for sewer improvements is about $183,000. The last use of the fund was for the Patterson Place sewer, completed in December 1999.
As stated in the accompanying memorandum “Resolution Identifying Areas as Being Under Consideration for Possible Future Annexation” (see related agenda item), for several years, the Council has declared its intent to consider for future annexation all of the land between the current Town Limits and the Urban Services Area boundary. Most of the remaining areas not yet annexed into the Town limits within the Urban Services Area contain some existing developments without sewer and/or water service. The main areas include Northwoods subdivision, Dogwood Acres, the Billabong Road neighborhood, portions of Laurel Hills, and Winter Drive area. We believe it would be helpful in developing the Town’s long-range annexation strategy to obtain an estimate of the work and costs necessary to provide sewer and/or water service to these areas.
DISCUSSION
Town-initiated annexations promote the efficient extension of Town services. The Town's Comprehensive Plan has an objective that development go outward from existing developed areas at the same time as public facilities and services are extended.
As part of our ongoing long-range planning, we study areas that are becoming urbanized. In the past, we have laid out strategies for future annexation areas for the Town Council's consideration. Based on our most recent analysis, we provide the following overview and recommendations for the numbered areas shown on Map 1 (see attached):
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Description of Area |
Comments |
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Area 1: Northwest area, including the Northwood subdivision (Phases 1-4) and the UPS facility. |
Water service has been extended into parts of this area. Sewer service has not been extended into most of this area. The Vineyard Square development consisting of 191 units is at the early stages of construction. With only approximately a dozen occupancies planned by March 2004 it does not currently meet the standards for Town-initiated annexation. Similarly the Larkspur subdivision, consisting of 86 lots is also partially constructed (9 units occupied 18 more under construction). We consider that on its own, annexation of this development would not further the longer term strategic objectives for Town-initiated annexation. We recommend pursuing a strategy to annex additional portions of the northwest area as these developments are completed. Also within this area the extension of water and sewer services to the Future Public Works Facility is planned by December 2006. At that time such provision will increase the possibilities for a Town-initiated annexation of adjacent property. |
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Area 2: Sunrise Road and Interstate 40 (north of Carol Woods and Chandlers Green). |
We recommend deferring annexation until this area is developed for urban purposes. |
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Area 3: Merritt Pasture area. |
The lots to the north of Merritt Pasture are not served by sewer (Winter Drive). We believe that the cost of providing sewer to these few lots would be high and that there is not presently a pressing need to provide sewer. We do not believe there is a compelling reason to annex Merritt Pasture, and recommend deferring annexation of the lots to the north of Merritt Pasture until such time that sewer services are available. |
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Area 4: Land south of Town, including the Morgan Creek Hills, Farrington Hills, Laurel Hills, Reserve, Reserve II and Hunt’s Reserve neighborhoods. |
Presently, a portion of this area may qualify for a Town-initiated annexation. The key issue in our study of this area has been the date at which the Town would be in a position to provide the full range of Town services to this area. The extension of water and sewer mains is a key issue. We recommend deferring annexation until the area is developed for urban purposes. |
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Area 5: Land south of Town, including Zapata Lane and the area east of US 15-501 and south of Mt. Carmel Church Road. |
This area is a potential site for future development. The extension of water and sewer mains is an issue for this area. We recommend deferring annexation until water and sewer services are available. |
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Area 6: Dogwood Acres |
This area currently is not served by sewer. We recommend that annexation be deferred until such time that funding for water and sewer service is available. |
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Area 7: Two parcels west of Southern Village |
We recommend deferring annexation until this area is developed for urban purposes. At the time of the annexation of the Southern Village area, the property owners of these two parcels requested not to be annexed. |
NEXT STEPS
We believe that the circumstances outlined in this memorandum for Areas 2 through 7 have not altered since last year’s report. Within Area 1 there are two developments currently under construction. Of these, Vineyard Square does not meet the standards for Town-initiated annexation and the Larkspur subdivision on its own would not further the longer term strategic objectives for Town-initiated annexation. Therefore we suggest the Council consider areas adjacent to these developments in future years when they are completed.
In summary, this annual review of areas under consideration for possible future annexation concludes that for 2004 a Town-initiated annexation would not promote the Town’s long term annexation strategy.
We believe that because a key requirement of the annexation of property into town limits is the extension of water and sewer services, it would assist the Council to estimate the work and costs required to provide water and sewer services to existing developed areas between the current Town Limits and the Urban Services Area boundary. Such information will assist the Town in further developing a long-range annexation strategy for these areas. Therefore we recommend that the Council requests that OWASA estimate the work and costs required to provide water and sewer services to these areas.
RECOMMENDATION
That the Council not undertake a Town-initiated annexation in 2004 and that the Town Council adopt a resolution to request the OWASA to provide an estimate of work and costs necessary to provide sewer and/or water services in the neighborhoods in Chapel Hill’s designated potential future annexation areas within the Town’s Urban Services Area.
A RESOLUTION REQUESTING ASSISTANCE FROM THE ORANGE WATER AND SEWER AUTHORITY IN PLANNING FOR FUTURE ANNEXATIONS (2003-11-24/R-8)
WHEREAS, the Town of Chapel Hill has for several years, the Council has declared its intent to consider for future annexation all of the land between the current Town Limits and the Urban Services Area boundary and has adopted a Resolution Identifying such Areas as Being Under Consideration for Possible Future Annexation; and
WHEREAS, State law requires that, major trunk water mains and sewer outfall lines must be extended into an annexation area so that property owners will then be able to secure public water and sewer service; and
WHEREAS, where the extension of major water or sewer lines is necessary, an annexation plan must set out a timetable for completion of construction within two years of the effective date of annexation; and
WHEREAS, the Town Council desires to develop a long-range plan for annexing the areas outside the Town limits in the urban services area;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council requests Orange Water and Sewer Authority to provide an estimate of work and costs necessary to provide sewer and/or water services in the neighborhoods in Chapel Hill’s designated potential future annexation areas within the Town’s urban services area.
This the 24th day of November, 2003.