Annexation Service Area 2 - Southern Village

SUBJECT: Plan for Extending Services to Proposed Annexation Area 2 – Southern Village

Attached is a resolution that would approve a service plan for proposed Annexation Area 2.

Proposed Annexation Area 2 (the Southern Village Area) consists of land that is generally located south of Town, primarily located west of US Highway 15-501. The area includes the Southern Village development, Town-owned land for a future community park, Town-owned land for a fire station and open space, and Phase II of the Hundred Oaks development.

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.

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.”

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.

The Town can properly serve annexation Area 2 with additional personnel and equipment, as summarized below. Please reference the attached service report for detailed information on providing services to the annexation area. We note that where a new unit of service is needed (for example, ½ of a truck), we have included the cost of acquiring the next full unit of service (the full cost of a truck).

Fire Protection

The Town will provide fire protection services in the annexation area on substantially the same basis and in the same manner as such services are provided within the rest of the municipality. The new fire station (#5) will be constructed at the intersection of Bennett Road and US Highway 15-501. Completion of the fire station is expected by December 2001. A temporary fire station will be in or in close proximity to the annexation area until Station #5 is constructed. The lower parking lot of Hillsong Baptist Church on Culbreth Road is a potential site for the temporary fire station to provide service to the annexation area between the proposed effective date of annexation (June 30, 2001) and the opening of the new fire station.

In 1999, the Town Council initiated a three-phase hiring program for eighteen firefighter positions that are needed to meet OSHA standards and to fully staff the new southern fire station (#5). The southern fire station will maintain services for the southern part of Town, the University of North Carolina, the UNC Hospitals, and the proposed annexation area.

A total of 12 firefighters will be stationed at Fire Station #5. The cost of these 12 positions has been included as one of the costs of providing service to this annexation area. The previously hired six firefighters are necessary to meet OSHA requirements.

The hiring program initiated by the Council noted that additional personnel were needed (whether or not annexation occurs in this area) to staff the new fire station.

We note that the addition of Fire Station #5 will strengthen existing response and coverage for southern Chapel Hill neighborhoods such as Cobble Ridge, Culbreth, Kent Woodlands, Mason Farm, Morgan Creek, Southbridge, and Westwood. In addition, Fire Station #5 will help strengthen existing response and coverage for UNC Hospitals and the southern portion of the UNC campus. The new station will also serve the proposed annexation area.

Police Protection/Service

Five new patrol officers and one additional crime prevention officer will be needed to provide services to the proposed annexation area. One new marked vehicle will also need to be purchased to provide services to the proposed annexation area.

Refuse Collection

The service report proposes that the Town will pay for current private refuse collection to continue, with weekly collection.

Transit Services

Transit service would be extended to the proposed annexation area through the combination of a fixed transit route and demand responsive services (EZ Rider and Evening/Sunday Shared Ride services).

Water & Sewer

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.

We believe that property taxes and other revenues from the annexation areas will be sufficient to pay for the cost of providing services to the proposed annexation area with the exception of six firefighter positions (partially funded in the current year budget and accounted for in the budget forecast) that are needed to increase service capability in the southern part of Town regardless of annexation. A summary of the approximate costs (Fire, Library, Parks & Recreation, Police, Public Works, Transit, and Utilities) and revenues by year is as follows:

	Area 2
Estimated Service Costs:	$1,595,655
Estimate Revenues:	$1,413,042
Difference:	$ -182,613*

* For the purposes of annexation, the deficit in revenues would be covered by funding for six firefighter positions already included in our budget forecast presented to the Council on January 19, 2001. In addition, this deficit would be covered primarily by a surplus in revenues estimated for Area 2, the Notting Hill area.

	Area 2
Estimated Service Costs:	$1,544,444
Estimate Revenues:	$1,554,926
Difference:	$ 10,482

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

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 containing the dates of the information meeting and the 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 hearing from the public on March 19, the Council will have the opportunity to amend the Service Report to take into account public comments before considering annexation of the area 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 2.

ATTACHMENTS

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-9)

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 2 (Map 2 – Southern Village Area) as described in the Council’s resolution (2001-01-08/R-10); 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.