AGENDA #7a

MEMORANDUM

TO:                 Mayor and Town Council

FROM:           W. Calvin Horton, Town Manager

SUBJECT:     Plan for Extending Services to Proposed Annexation Area 1 – Notting Hill Area

DATE:            January 22, 2001

Attached is a resolution that would approve a service plan for proposed Annexation Area 1. 

Proposed Annexation Area 1 (the Notting Hill Area) consists of land located east of Erwin Road and north of Sage Road, and includes the Notting Hill Apartments, the Chapel Hill Bible Church (presently under construction), the approved Providence Glen Condominium development, one residence along Erwin Road and several undeveloped parcels along Interstate 40.

BACKGROUND

On January 8, 2001, the Council called a Public Information Meeting for February 26, 2001, and a Public Hearing for March 19, 2001, on the questions of annexing this area.  State law requires that a proposed service plan for this annexation area be approved by the Council and made available to the public at least 30 days before the Public Information Meeting. 

Notice of the Public Information Meeting and Public Hearing will be mailed at least four weeks  prior to the date of the Public Information Meeting by first class mail, postage prepaid, to the owners of property located within the area to be annexed as shown in county tax records.

DISCUSSION

The key points regarding this service report are:

1)     Legal Requirements:

The Town must prepare a service plan for an annexation area, in accordance with North Carolina General Statute 160A-47.

Under this statute, the Town must provide major municipal services to the annexation area “on substantially the same basis and in the same manner as such services are provided within the rest of the municipality prior to annexation.”

The content of the attached report reflects these legal requirements. 

Under the annexation law, approval of the report by the Council is necessary at least 30 days before the Public Information Meeting for an annexation area.  The Public Information Meeting is scheduled for February 26, 2001.

2)     Major Services:

The Town can properly serve annexation area 1 with current personnel and equipment. 

The annexation law requires that the annexation reports set forth the Town’s plans for extending major public water mains and sewer outfall lines into the annexation areas if such lines are not already present.  Extension within each of the annexation areas could then be done under the extension and financing policies of the Orange Water and Sewer Authority and of the Town of Chapel Hill.  Under OWASA’s policies, benefiting property owners bear most of the cost of such extensions. 

No major water or sewer line extensions are needed to meet legal requirements.

3)     Financing Services:

We believe that property taxes and other revenues from the annexation areas will be sufficient to pay for the services to this area.  A summary of the approximate costs (Fire, Library, Parks & Recreation, Police, Public Works, and Utilities) and revenues by year is as follows:

Comparison of Estimated Costs and Revenues for Year One (2001-02)

Comparison of Estimated Costs and Revenues for Year Two (2002-03)

Additional detailed cost and revenue projections for the first two years of annexation are included as Appendix E of the annexation report.

NEXT STEPS

In the January 8, 2001 Resolution of Intent, the Council scheduled a Public Information Meeting on February 26, 2001 and a Public Hearing on the question of annexation for March 19, 2001.  A notice with the dates of the information meeting and public hearing will be sent by first class mail to property owners in the proposed annexation areas in accordance with North Carolina G.S. 160A-49.

After the hearing from the public on March 19, 200l, the Council will have the opportunity to amend the Service Report to take into account public comments before considering the annexation of areas on April 9, 2001.

The Council may adopt an annexation ordinance on April 9, 2001.  The proposed effective date for the ordinance is June 30, 2001.

Recommendation:         That the Council adopt the following resolution approving the service plan for proposed Annexation Area 1.

ATTACHMENT

1.     Annexation Service Report - Area 1 (begin new page 1).

AREA 1 – NOTTING HILL AREA

A RESOLUTION APPROVING A REPORT WITH PLANS FOR EXTENDING MAJOR MUNICIPAL SERVICES TO AN ANNEXATION AREA IN ACCORD WITH G.S. 160A-47 (2001-01-22/R-8)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council approves the annexation plan for extending and financing services to that certain proposed annexation Area 1 (Map 1 – Notting Hill Area) as described in the Council’s resolution (2001-01-08/R-9); which plan was submitted to the Council by the Manager on January 22, 2001 and a copy of which plan shall be retained with the records of this meeting. 

BE IT FURTHER RESOLVED that the Council directs the Manager to make the report available for public inspection at least 30 days before the public information meeting in accordance with State law.

This the 22^nd day of January, 2001.