TOWN OF CHAPEL HILL

SUMMARY OF SERVICE REPORT

FOR PARKSIDE II ANNEXATION AREA

JANUARY 27, 2003

· The Council of the Town of Chapel Hill has adopted a Resolution of Intent to annex an area located northwest of the present Town limits that includes the Parkside II subdivision.

· The Town staff has prepared a report with the Town's plans for extending and financing police, fire, street maintenance, sanitation, water, sewer and other major municipal services to the area, if it is annexed.

· The proposed annexation area meets the standards in North Carolina State law to be eligible for annexation by the Town of Chapel Hill.

· Notices 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 or real property located within the area to be annexed as shown in Orange County tax records.

· Town staff will hold a Public Information Meeting on the proposed annexation on Tuesday, March 4, 2003 in the Council Chamber of the Town Hall, 306 N. Columbia St., Chapel Hill, NC 27516 (behind the fire station at the intersection of Airport Rd. and N. Columbia St.).

· The Council will hold a Public Hearing on the proposed annexation and annexation report on extending and financing services at 7:00 p.m. on Monday, March 17, 2003 in the Council Chamber of the Town Hall, 306 North Columbia Street, Chapel Hill, NC 27516.

· If the Council decides to annex the area, the annexation may be made effective between 70 and 400 days from the date of passage of the ordinance. Various Town services would be provided and become available to the annexed area and its residents and property owners on the effective date. An effective date of June 30, 2003 is recommended. The Council would establish the effective date if it decides to annex the area.

· The Town is following procedures in State law for considering the annexation. A Planning Staff Report summarizing State annexation law is attached as Appendix A.

· For more information, please call the Planning Department at (919) 968-2728; write the Planning Department at 306 N. Columbia Street, Chapel Hill, NC 27516; or visit the Planning Department on the third floor of Town Hall.

· A copy of this annexation report with the services and financing plan is available for any citizen to review in the Town Clerk's office in the Town Hall between 8:30 a.m. and 5 p.m. on weekdays, except holidays, and at the Chapel Hill Public Library at 100 Library Drive. The report will also be available on the Town’s website (www.townofchapelhill.org).

LIST OF CONTENTS

I. INTRODUCTION

A. State Law - Procedures and Policy on Annexation

B. Town Policy on Annexation

C. Steps in the Annexation Process

D. Eligibility for Annexation

E. Organization of this Report

II. AREA PROPOSED FOR ANNEXATION

A. General Description of Area

B. Location and Identification of Area

C. Applicable Provisions of G.S. 160A-48 Regarding Eligibility for Annexation

D. Character of the Area

E. Other Information Concerning the Annexation Area

III. PLAN FOR EXTENDING AND FINANCING SERVICES

A. Public Works Services

· Solid Waste Collection

· Street Maintenance Services

* Leaf Collection

* Street Cleaning

* Street Lighting

* Street Paving

* Street Name Signs

* Traffic Control Signs and Markings

* Street Maintenance

B. Water and Sewer Service

· OWASA Water Service

· Water Mains and Trunks

· OWASA Sewer Service

· Sewer Outfalls

· Water and Sewer Extension Policies

C. Parks and Recreation

D. Library Services

E. Police Services

F. Fire Services

· Fire Protection

· Orange New Hope Volunteer Fire Department

· Fire Prevention

G. Public Transportation

H. Other Town Services

IV. FINANCING OF SERVICES

V. APPENDICES

A. Planning Staff Report - Mechanics of Annexation

B. Boundary Description of the Annexation Area

C. Adopted Resolution of Consideration – November 26, 2001

D. Maps

1. Existing Corporate Limits

2. Proposed Annexation Area and Existing Corporate Limits

3. Zoning

4. Land Use

5. Water Lines

6. Sewer Lines

E. Estimated Costs and Revenues

F. Water and Sewer Extension Policies of the Orange Water and Sewer Authority

G. Form for Petitioning for Extension of Water or Sewer Lines

H. Statement of the Impact of Annexation on the Orange New Hope Volunteer Fire Department and Statement of the Impact of Annexation on Fire Protection and Fire Insurance Rates in Annexation Area

I. INTRODUCTION

The Council of the Town of Chapel Hill has initiated procedures to consider annexing an area northwest of the present Town limits.

In accordance with State law (G.S. 160A-47 and other sections), the Town has prepared the following report on how services including solid waste collection, police and fire protection, street maintenance and water and sewer extensions and service will be provided and financed if the annexation occurs. The annexation could be effective June 30, 2003 or at such other date as established by the Town Council in accordance with North Carolina General Statutes

(G.S. 160A-49(e)).

A. State Law - Procedures and Policy on Annexation

The Town is following the procedures and requirements in Chapter 160A, Article 4A, Part 3 of the North Carolina General Statutes (G.S. 160A-45 and following sections) and North Carolina General Statutes 160A-58.10. A general summary of these annexation laws is included as Appendix A of this report.

Since 1959, the North Carolina General Assembly has set forth the State's policy on annexation as part of the General Statutes governing cities and towns. The laws enacted by the General Assembly state, in part (G.S. 160A-45):

1. That sound urban development is essential to the continued economic development of North Carolina;

2. That municipalities are created to provide the governmental services essential for sound urban development and for the protection of public health, safety and welfare in areas being intensively used for residential, commercial, industrial, institutional and governmental purposes or in areas undergoing such development;

3. That municipal boundaries should be extended, in accordance with legislative standards applicable throughout the State, to include such areas and to provide the high quality of governmental services needed therein for the public health, safety and welfare;

4. That new urban development in and around municipalities having a population of 5,000 or more persons is more scattered than in and around smaller municipalities, and that such larger municipalities have greater difficulty in expanding municipal utility systems and other service facilities to serve such scattered development so that the legislative standards governing annexation by larger municipalities must take these facts into account if the objectives set forth in this section are to be attained;

5. That areas annexed to municipalities in accordance with such uniform legislative standards should receive the services provided by the annexing municipality in accordance with G.S. 160A-47(3).

B. Town Policy on Annexation

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 the Town can practically extend and finance municipal services to the qualifying areas.

Annually, Town staff reviews the character and development of areas around the Town and recommends to the Council a resolution designating areas as being under consideration for future annexation in accordance with G.S. 160A-49. Approximately once each year, Town staff analyzes specific areas which appear likely to qualify for annexation in the near future, and may recommend to the Council one or more resolutions of intent to annex specific areas. Typically, Town-initiated annexations are effective on June 30; however, other dates are possible, as State law allows the effective date to be

70 - 400 days after the adoption of the annexation ordinance.

The Town also encourages owners of new developments outside but near the Town to petition the Town voluntarily for annexation so that municipal urban services will be available to the developments.

C. Steps in the Annexation Process

This report proposes the annexation of an area to the Town of Chapel Hill under provisions of Article 4A, Part 3, of Chapter 160A of the North Carolina General Statutes. These provisions govern annexation initiated by the Town.

In accordance with G.S. 160A-49, the Council, on November 26, 2001, adopted resolutions identifying several areas, including the area which is the subject of this report, as being under consideration for annexation. A copy of this resolution is attached as Appendix C to this report. The proposed annexation area corresponds to areas in the November 26, 2001 Resolution of Consideration. These areas under consideration for annexation were identified as "Consolidated Areas for Consideration."

At a regular Council meeting on January 13, 2003 the Council adopted a resolution of intent to consider annexing the area described in this report. The Council scheduled a Public Information Meeting on March 4, 2003 and a Public Hearing on the question of annexation on March 17, 2003. Notices of the Public Information Meeting and the Public Hearing will be published in The Chapel Hill Herald on Sunday, February 23, and Sunday, March 2, 2003. Notices of the Public Information Meeting and the Public Hearing will also be mailed at least four weeks prior to the date of the information meeting by first class mail, postage prepaid, to the owners of real property located within the area to be annexed as shown in Orange County tax records.

Between 10 and 90 days after the hearing, the Council may adopt an annexation ordinance. Under such an ordinance, the effective date of annexation would be established by the Council. It could be between 70 and 400 days after the ordinance is adopted.

The proposed effective date of this annexation is June 30, 2003.

G.S. 160A-49 sets forth in more detail the procedures for annexation.

D. Eligibility for Annexation under North Carolina General Statute 160-48

The North Carolina General Statutes provide standards for determining which areas are eligible to be annexed to a municipality. In general, these standards describe areas that:

Ø are contiguous to the municipal boundary; and

Ø are urbanized or are in the process of becoming urbanized; or

Ø are not urbanized as defined by the statutes but link the municipality with an urbanized area through the provision of services and/or water and/or sewage lines, or are sufficiently contiguous to a combination of urbanized areas and the Town limits.

The specific annexation standards are discussed in G.S. 160A-48.

E. Organization of this Report

The following sections of this report describe the area proposed to be annexed, establish its eligibility under Section 160A-48, describe the Town's plans for providing municipal services to the area, and state the method of financing services.

The final section of this report includes maps, a description of the boundaries of the proposed annexation area, and other appendices.

II. AREA PROPOSED FOR ANNEXATION

A. General Description of Area

The proposed annexation area consists of one area developed for urban purposes. This area is shown in Appendix D, Map 2. The total annexation area includes 27.8 acres of developed and undeveloped lots, railroad right-of-way, and Town-owned open space. These acreages have been determined from the Town of Chapel Hill’s Geographic Information System (GIS). A housing count from a January, 2003 field survey indicates that there are 52 housing units within the total area to be annexed.

Acreage of the total annexation area was computed from the Town of Chapel Hill’s Geographic Information System (GIS). Computation of the degree of subdivision into lots and tracts was based upon Orange County Tax Map information. Boundary information was determined by the Town of Chapel Hill's Geographic Information System (GIS).

These procedures are in accordance with G.S. 160A-54 for calculating population, land area, subdivided lot, and boundary information. The population estimates were prepared by the Chapel Hill Planning Department.

As required by Subsection 160A-48(b) of the General Statutes, the area is contiguous to the Town of Chapel Hill on more than one-eighth (12.5%) of its boundary and no part of the area is within the boundary of another municipality. The boundary of the total area to be annexed has 5,191 linear feet, of which 1,957 feet abut the present Town primary corporate limits. Thus, 38% of the boundary of the annexation area is contiguous to the present Town primary corporate limits.

B. Location and Identification of Area

A detailed description of the boundary of the total annexation area is included in Appendix B of this report. The annexation area is generally described as follows:

This area is located northwest of the present Town limits and includes the Parkside II subdivision and the abutting right-of-way of the State University Railroad spur of the Norfolk Southern Corporation.

C. Applicable Provisions of G.S. 160A-48

The total area proposed to be annexed complies with the criteria in G.S. 160A-48(b)(1), 160A-48(b)(2), and 160A-48(b)(3). In addition, the entire annexation area meets the requirements of G.S. 160A-48(c).

D. Character of the Area

1. The area is contiguous to the Town limits.

2. Over one-eighth (12.5%) of the aggregate external boundary of the area under consideration coincides with the existing Town limits. As noted above, 38% of the annexation area boundary is contiguous with the present Town primary corporate limits.

3. None of the area is within the boundary of an incorporated municipality.

4. Recorded property lines and streets have been used in fixing the proposed municipal boundaries resulting from this annexation.

5. Land developments in the area are primarily residential.

6. The annexation area is composed of one area which meets the statutory requirements for urbanization in G.S. 160A-48(c)(1) for a density of at least 2.3 persons per acre.

Parkside II Annexation Area. Using the 2000 census report, and based on the Parkside II Annexation Area being in the Chapel Hill Township, the appropriate average population per dwelling unit for this area is 2.29 persons. This factor multiplied by the actual count of dwelling units (52) was used to estimate population. The population and acreage figures were then used to compute population density. With a population density of 4.28 persons/acre, the Parkside II Annexation Area (27.8 acres, excluding street rights-of-way) qualifies for annexation as an area developed for urban purposes under G.S. 160A-48(c)(1).

E. Other Information Concerning the Annexation Area

The following maps concerning the area proposed for annexation are included as Appendix D of this report:

Ø Map 1. A map of the entire Town.

Ø Maps 2, 3, and 4. Detailed maps of the proposed annexation area, the present and proposed Town boundaries, the zoning, and the general land use pattern.

Ø Maps 5 and 6. Detailed maps of the proposed annexation area showing the present major trunk water mains and sewer interceptors and outfalls.

In addition to the maps included in this report, the detailed maps of the existing water distribution system and sewage collection system, both in and outside the Town's corporate limits, are incorporated in and made a part of this report by reference, and are available for public inspection during normal business hours in the offices of the Orange Water and Sewer Authority at 400 Jones Ferry Road in Carrboro.

III. PLAN FOR EXTENDING AND FINANCING SERVICES

All major municipal services will be provided to the annexation area in accordance with General Statute 160A-47. On the effective date of annexation, the Town of Chapel Hill will provide each major municipal service on substantially the same basis and in the same manner as such services are provided within the rest of the Town immediately before annexation. All Town policies and services are subject to change over time.

Under General Statute 160A-47, the Town of Chapel Hill must set forth the method under which the Town plans to finance extension of services into the area to be annexed. Unless otherwise indicated below, the operating expenses associated with providing these municipal services will be financed from the Town's General Fund. The General Fund, as the major operating fund of the Town, includes revenues from the ad valorem (property) tax, sales taxes, State gasoline taxes, and other taxes, fees and revenues.

A. Public Works Services

Solid Waste Collection

The proposed annexation area will receive the same level of service that is currently provided to all areas of Town. Residential garbage will be collected at curbside.

Regular Town refuse collection will begin at the time of annexation. The service schedule will be Tuesdays for garbage collection and Fridays for brush collection.

Other collection services, including unscheduled pick-up of brush, tree and other trimmings put at the edge of public streets, will be provided under refuse collection policies in Chapter 8 of the Town Code applicable to the Town in general. These policies are available for public inspection in the Town Clerk's office at the Town Hall. All yard waste, including Christmas trees, must be put at the edge of public streets.

Street Maintenance Services

Leaf Collection

Seasonal leaf collection will start as scheduled in mid- to late-October, 2003, and run through March, 2004, and annually thereafter. During other times throughout the year, residents may place leaves in containers (note: bags will not be collected) at the street for collection by Solid Waste Services Division crews on brush collection days.

Street Cleaning

Street cleaning service will commence at time of annexation. The cleaning of streets will be accomplished with existing equipment and personnel.

Street Lighting

Installation of street lights for existing development will be in accordance with the street lighting policies in effect for all areas of the Town. This policy includes installation of street lights at intersections and intervals of about every 220 feet. If additional lights are needed to meet the Town's policy, they will be installed within the first year after the annexation becomes effective.

The Town will direct Duke Power Company to install lights and will pay Duke Power monthly fees for rental and maintenance of street lights. Duke Power Company will be authorized to provide lighting in this area so that lighting is available as close to the time of annexation as possible. Typical installation time for new lights in residential neighborhoods is three months.

If a street light is not working, any citizen may have it put back in service by calling the Town at 968-2796 (Public Works Department) or by calling Duke Power (967-8231) directly.

Street Paving

Present paving policies applicable inside the Town will apply to public streets in the proposed annexation area. An unpaved street in the Town-maintained street system can be paved and otherwise improved to Town standards, including curb and gutter, at the property owners' request with a petition signed by a majority of the lot owners who also own a majority of the front footage abutting the street. The assessment to property owners is 50% of actual cost per front foot. The Town pays the other 50% of costs. The Town's share of the cost of paving dirt streets will be financed from the Capital Improvement Fund. All streets within the annexation area are presently paved.

Street Name Signs

Street name signs meeting Town standards will be installed at the intersection of all public streets, as is the practice within the present Town limits.

Traffic Control Signs and Markings

Traffic control devices such as signs, signals, pavement markings, and other related traffic control devices will be installed on Town-maintained public streets in accordance with the Manual on Uniform Traffic Control Devices published by the U.S. Federal Highway Administration. These devices will be maintained by existing Town personnel after installation.

The North Carolina Department of Transportation will determine the types of traffic control devices, signs and markings to be used on roads in the State-maintained road system. The annexation area does not contain any State-maintained roads.

Street Maintenance

The annexation area does not contain any State-maintained roads. The Town will assume maintenance of public roads in the annexation area as of the effective date of annexation.

As residential streets are built or improved to Town standards and accepted by the Town, the roads will be maintained in accordance with Town policies as for other areas. Maintenance includes patching and related street repairs. Drainage maintenance will include inlet cleaning and minor repairs to existing storm drains in the right-of-way of Town-maintained streets as needed. Paved streets will be resurfaced, as are other streets in the Town limits, when necessary. The Town allocates funds for annual resurfacing of some streets so that each Town-maintained paved street can be resurfaced as needed, generally once every 15 to 20 years.

Removal of snow and ice from residential streets will be performed as necessary and will be consistent with existing policy, which gives priority to bridges, bus routes and collector streets.

Right-of-way mowing and vegetation maintenance along residential streets will be ongoing to provide adequate sight distances.

B. Water and Sewer Service

OWASA Water Service

Water service, as within the present Town limits, will be provided in accordance with policies adopted by the Orange Water and Sewer Authority (OWASA) to be applicable within the existing Town limits and the annexed area.

Water Mains and Trunks

Appendix D, Map 5 shows the location of existing major water mains in the vicinity of this annexation area. Major trunk water mains in the annexation area required to make service generally available to this area have already been completed.

Property owners in the area to be annexed would be able to secure public water services from OWASA in accordance with OWASA policies, regulations and standards applicable throughout the entire OWASA service area (which includes the Town of Chapel Hill in its entirety) for extending water lines to individual lots and subdivisions. A copy of OWASA's water and sewer extension policies is included in Appendix F of this report.

OWASA Sewer Service

OWASA sewer service, as in the present Town limits, will be provided in accordance with present or future policies adopted by OWASA to be applicable in the existing Town limits and the annexed area.

Sewer Outfalls

Appendix D, Map 6 shows the location of existing sewer outfalls in the vicinity of the Parkside II Annexation Area. Major trunk sewer lines in the annexation area required to make service generally available to this area have already been completed.

Property owners in the area to be annexed would be able to secure public sewer service from OWASA according to the policies in effect within the Town of Chapel Hill for extending sewer lines to individual lots and subdivisions. The sewer extension policy in effect within the Town is that of OWASA, as described above. A copy of OWASA's sewer extension policies is included in Appendix F of this report.

Water and Sewer Extension Policies

Assessment Projects for Extension of Water and Sewer Mains

If an owner of an occupied dwelling unit or an operating commercial or industrial property within the annexation area files with the Town Clerk, no later than 5 days after the public hearing, a petition for water or sewer extension, OWASA will provide for the extension of water or sewer lines to the property, or to a point on a public street or road right-of-way next to the property, according to the OWASA's financing policies in effect for such extensions throughout the OWASA service area at the time of the petition. The present policy of OWASA is to allow extensions to the public water and sewer system, within or outside of any corporate limits, as follows:

1. Extensions may be made by the benefiting party, subject to the approval of OWASA, provided the benefiting party pays, at the time the extension is undertaken, the full cost of the water and/or sewer service extension including outfalls, truck lines, pumping stations, costs of easements or rights-of-way, and other proper and reasonable costs of the extension. Reimbursement of the party financing the extension will occur as applicable under OWASA's policies.

2. The benefiting party or parties may petition OWASA to finance the extension of water and/or sewer services, subject to applicable statutory provisions concerning assessment projects. The Board of Directors of OWASA has discretionary authority to approve or defer action on the petition for extension with assessments. An extension may be undertaken following receipt of a petition if: (a) there would be an adverse impact on the public health, safety and welfare if the extension were not made; and (b) adequate funding is available. The full local cost of the extension is assessed to the benefiting properties and must be repaid with interest over a period of up to 10 years. Project costs may include pump stations, force mains, easements, sewer collection lines, water distribution lines, trunk water main extensions and other proper and reasonable costs.

3. Extensions may be undertaken and financed by OWASA as determined necessary by OWASA Board of Directors or may be completed and financed by local governmental units. Project costs may be assessed to benefiting properties in accordance with statutory procedures. OWASA has the authority to extend services and levy assessments with or without receipt of a petition from the affected property owners.

1999 OWASA Policy on the Extension of Water and Sewer Service to Existing Unserved Neighborhoods

In May 1999, OWASA adopted a policy for the extension of water and sewer service to existing unserved neighborhoods. This policy incorporates guidelines and principles to address service availability, extension of water/sewer mains, easement acquisition, assessment issues, existing service connections, and emergency circumstances of failed septic treatment facilities in existing neighborhoods. This policy is included as part of Appendix F.

Town of Chapel Hill Sewer Assistance Policy

With respect to any houses and lots which do not have public sewer service available to them, if owners of these properties petition the Orange Water and Sewer Authority (OWASA) for extension of sewer lines to serve these properties, the Town would provide financial assistance to eligible property owners in accord with the Council's revised policy of assisting with public sewer construction and with certain private costs for low-income homeowners, as defined in Resolution R-7 of September 9, 1998, subject to funding being available. This resolution is included as part of Appendix F.

Petitions for Water and Sewer Extensions

As noted above, property owners who are not now served by public water or sewer service, and who desire to have water and sewer extensions within two years after the annexation becomes effective, may submit written petitions to the Town Clerk (for subsequent transmittal to OWASA) no later than 5 days after the public hearing, for the extension of water or sewer lines to their property or to a point on a public street or road right-of-way next to their property, in accordance with G.S. 160A-47(3)(b). The cost of water and sewer extensions is borne by benefiting property owners in accordance with OWASA's policies. Extension requests must be made on a form available in the Town Clerk's Office. When the annexation ordinance is adopted, the annexation service plan will be amended to reflect and accommodate such requests. Property owners who desire water and sewer extensions as soon as possible should follow this procedure.

A copy of the water and sewer extension petition form is included in Appendix G of this report.

C. Parks and Recreation

Residents of the area to be annexed will be able, on the same basis as other Town residents, to use Town parks, playgrounds, gymnasiums, nature trails, picnic facilities, swimming pools and other recreational facilities, services and programs including athletic leagues, instructional classes, special events, and free-play activities at Town-supervised facilities.

Homestead Park, a community park, is nearby. Homestead Park includes athletic fields, a skateboard park, batting cages, a large play structure, picnic facilities, paved walking trails, and a dog park.

D. Library Services

The Chapel Hill Public Library, which is located at 100 Library Drive off Estes Drive, will provide library services to residents of the annexed area on the same basis as for other residents of the Town. Most library services are free to anyone living in the Town of Chapel Hill.

E. Police Services

Police protection and other police services will be provided on the same basis as in other areas of the Town. Police protection includes periodic patrol of public streets in residential, commercial and other areas, with assignment of officers throughout the Town based on periodic analysis of patrol needs indicated by offense reports, workload analysis, and community needs.

The Investigations Division will investigate offenses on the same basis and in substantially the same manner as for other areas of the Town.

Community service officers will be available to provide on request a free analysis of security needs of a property owner, with recommendations on security measures. Other current Police and police-related services include crisis intervention by the Police Crisis Intervention Unit, investigations by a Juvenile Officer of offenses by youths, and the services of the Sexual Assault Response Team for any crime of a sexual nature, and the Domestic Violence Response Team.

The Town will also enforce its animal control "leash law", noise control, traffic laws, and other ordinances and North Carolina statutes on the same basis and in the same manner as for other areas of the Town.

Police protection and other police services will be provided with existing equipment and personnel.

F. Fire Services

Fire Protection

Existing Town Fire Department personnel and equipment will respond to calls in the proposed annexation area beginning on the effective date of annexation. In addition, we anticipate the Orange New Hope Volunteer Department will respond to fire emergencies in the annexation area for a five-year period following the effective date of annexation (see next section). Fire suppression and other Fire Department services will be provided in a manner consistent with services currently provided to areas already in the Town limits.

Fire Department personnel and equipment located at the Town's five Fire Stations will respond to calls for assistance following established dispatching criteria based on incident type and severity.

The Town's Fire Department personnel and equipment will respond to emergencies in the proposed annexation area within 4 to 5 minutes or less under normal traffic, weather and other conditions.

The Town's policy regarding fire hydrants is to have them installed, if necessary, either at the Town's expense in a previously developed area, or at the expense of a private developer at the time of development. Previously developed areas which are annexed will be evaluated for fire protection water supply and hydrant distribution. Hydrant installation in previously developed areas not subject to the provisions of the Town Design Manual regarding hydrants will be based on potential need, alternative water supply and funding. This is consistent with policies currently in effect within the Town limits.

Orange New Hope Volunteer Fire Department

A statement of the impact of annexation on the Orange New Hope Volunteer Fire Department and a statement of the impact of annexation on fire protection and fire insurance rates in the annexation area (required by GS 160A-47(4)) is included as Appendix H of this report.

The Town anticipates entering into a 5-year contract for services with the Orange New Hope Volunteer Fire Department for the portion of the Parkside II Annexation Area which New Hope currently serves. Both the Chapel Hill and the Orange New Hope Volunteer Department will respond to fire emergencies in the annexation area.

The contract with the Orange New Hope Volunteer Fire Department would include payments by the Town to the Volunteer Department in accordance with G.S. 160A-49.1.

The Town will comply with the annexation statute (G.S. 160A-49.1) requiring the Town to make a good faith effort to negotiate a 5-year contract with the rural fire department (Orange New Hope Volunteer Fire Department) if the Chief Officer makes a written, signed request delivered to the Town Clerk no later than 15 days before the March 17, 2003 Public Hearing on the annexation.

When the rural fire department's contract with the Town expires, the Town will also comply with the requirements in G.S. 160A-49.2 to pay to the rural fire department a proportionate share of the rural fire department's debt payments for facilities and equipment for debt that existed at the time that the resolution of intent to annex the area was adopted (January 13, 2003).

Fire Prevention

The Town's Fire Prevention and Suppression Divisions will provide commercial inspections, fire prevention, code enforcement and public fire education in the annexation area on the same basis and in the same manner as in the present Town limits.

At the request of any resident, Fire Department personnel will inspect the resident's home and provide information on fire safety measures.

The Prevention Division's Fire Marshals inspect commercial, office, institutional and certain facilities in multi-family group residences for compliance with fire codes and enforce the codes.

G. Public Transportation Services

Shared Ride FEEDER Service

Since this area is outside the existing one-fourth mile service area boundary, residents will be offered "Shared Ride FEEDER Service," which is an extension of transit service to areas of Town which do not receive regular bus service due to low density. This service is offered between 6:45 a.m. and 5:45 p.m. and provides trips between designated bus stops in the FEEDER zones and the nearest bus routes or another FEEDER zone.

Fixed Route Service

The nearest fixed routes to this area operate on Airport Road. These routes provide fare-free service to downtown Chapel Hill and UNC, and by free transfer to other points in Chapel Hill and Carrboro. Routes serving this area include the North-South Express Route (weekdays from 6:20 a.m. until 8:30 p.m), the T route (weekdays from 6:15 a.m. to 7:20 p.m. and Saturday from 8:15 a.m. to 6:13 p.m), and the TG route (evenings from 7 p.m. to 11:30 p.m., during full service periods).

Sunday Shared Ride Service

Sunday Shared Ride Service is also available. This service is provided to areas of town which do not receive regular evening or Sunday bus service. Shared Ride Service is available between the hours of 9:30 a.m. and 11:30 p.m. on Sundays during periods of full bus service, and between 9:30 a.m. and 6 p.m. during reduced service periods. Trips must be scheduled in advance and must fall within one-fourth mile of a bus route. Tickets for this service may be purchased in 20-ticket booklets (currently $14.25) at Chapel Hill Town Hall, Carrboro Town Hall, and at the UNC Department of Public Safety. Rides to and from a bus stop cost one ticket, while door-to-door service costs two tickets.

EZ Rider Service

EZ Rider Service is also available free on request, when scheduled in advance, to residents with certified mobility impairments. This is a special service that uses lift equipped vehicles to transport individuals with mobility impairments preventing them from using Chapel Hill Transit's fixed route bus service. EZ Rider Service is offered between 6:15 a.m. and 6:15 p.m. on weekdays and between 8:30 a.m. and 7 p.m. on Saturdays. EZ Rider Service is also available during evening hours from 6:30 p.m. to 12:45 a.m. (Full Service) and from 6:30 p.m. to 10 p.m. (Reduced Service) and on Sundays from 9:30 a.m. to 11:30 p.m. (Full Service) and from 9:30 a.m. to 6 p.m. (Reduced Service). However, during evening and weekend hours, riders must obtain tickets as described above for Shared Ride Service and each ride costs one ticket.

Service Expansion

The need for new fixed route service is evaluated annually for areas that do not currently receive such service. Growth in this area makes it possible that service along Weaver Dairy Road Extension will be instituted once that road is completed through to Homestead Road, on a schedule to be determined by budget and equipment constraints.

H. Other Town Services

As an important part of the Town's community service program, staff in all Town departments respond to citizens' questions and requests for assistance. The Town staff seeks to solve problems and assist citizens as much as is practical within the Town's budget authorization and service policies.

Traffic regulations including speed limits, stop regulations, etc. will be adopted as needed for public streets in the annexation area in the same manner and on the same basis as for other areas of the Town.

The Town administers a franchise agreement with Time Warner Cable for cable television services. Time Warner Cable extends services in accordance with minimum density standards in the franchise.

Various other ordinances, including for example, water shortage regulations, public street tree ordinance, Development Ordinance, construction codes, minimum housing codes, etc. apply and will be enforced in the annexation area as in all other areas of the Town. The Town Code, as well as non-codified ordinances and resolutions adopted by the Council, are on file for public inspection in the Town Clerk's office in Town Hall, 306 N. Columbia Street.

The annexation area will receive all other Town services not listed above, and residents and owners of property in the annexation area will have all the rights and privileges of being in the Town, in the same manner and on substantially the same basis as for all other areas of the Town of Chapel Hill.

IV. FINANCING OF SERVICES

Estimated revenues will be sufficient to pay the estimated costs of police, fire, refuse collection, street maintenance, water and sewer services, and other applicable services as described above.

A comparison of estimated revenues and expenditures for the fiscal year 2003-2004, the first full year after the annexation is proposed to be effective, is included in Appendix E of this report. As shown, property taxes at the current General Fund tax rate of .51 cents per $100 of value, and other estimated revenues, will be sufficient to pay for the costs of extending services to the annexation area.

If owners of occupied dwelling units or operating commercial or industrial properties request sewer or water extensions no later than 5 days after the public hearing, such extensions will be financed in accordance with financial and water/sewer extension policies of the Orange Water and Sewer Authority.

Property in the annexation area will be subject to ad valorem (property) taxes for both the General Fund and the Town's Transportation Fund. Various other taxes and fees, including annual dog license taxes, vehicle license fees and business privilege license taxes, will apply to the annexation area as for all other areas of the Town.

V. APPENDICES