HomeMy Public PortalAbout01-12-2009 Regular Meeting
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 1 of 24
MINUTES
HILLSBOROUGH TOWN BOARD
January 12, 2009
7:00 PM, Town Barn
PRESENT
: Mayor Tom Stevens, Commissioners Evelyn Lloyd, Frances Dancy, Brian Lowen,
L. Eric Hallman, and Mike Gering.
STAFF PRESENT
: Town Manager Eric Peterson, Assistant Town Manager/Public Works
Director Nicole Ard, Town Clerk/Director of Administration and Human Resources Donna
Armbrister, Town Engineer/Utilities Director Kenny Keel, Planning Director Margaret Hauth,
Finance Director Greg Siler, Police Chief Clarence Birkhead, Assistant Finance Director Carolyn
Glasgow, Public Works Supervisor Ken Hines, and Town Attorney Bob Hornik.
Mayor Tom Stevens called the meeting to order at 7:00 p.m. He stated he was proud of the year
they had had last year and was inspired by the number of people who had participated in Board
meetings.
1. PUBLIC CHARGE
Mayor Stevens did not read the Public Charge but noted it would be followed.
2. INTERVIEW VOLUNTEER ADVISORY BOARD CANDIDATES
A.Interview volunteer candidate to serve on the Hillsborough Tree Board
7:01:20 PM Public Works Supervisor Ken Hines said that the Tree Board was recommending
appointment of Penny Rand to the Tree Board and the Town Board now had the opportunity to
interview Ms. Rand.
Penny Rand provided a few comments regarding her 35 years of experience. She stated that she
had an extensive background in historic trees, having been trained by the people who ran the
Smithsonian Institute?s priceless Bonsai collection in Washington, D.C. Ms. Rand stated her
profession was garden design.
Mayor Stevens commented that Ms. Rand had a wonderful garden at her home, and was sure the
Tree Board would benefit by her expertise.
3. AUDIENCE COMMENTS REGARDING MATTERS NOT ON THE PRINTED
AGENDA
7:03:34 PM Holly Reid, President of the Eno River Association, said that annually they
expressed appreciation to the municipalities that helped them protect the Eno River and all its
resources. She said she wanted to express to the staff and to the Town Board their appreciation
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Approved: February 9, 2009
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by providing them with calendars that depicted Eno birds. Ms. Reid offered a particular ?thank
you? to Margaret Hauth, who had worked closely with the Eno River Association to acquire land
acquisition funds for Riverwalk. She said they had been successful last year in receiving $35,000
for Riverwalk and would be applying again this year with high hopes of receiving more dollars
for Riverwalk.
Mayor Stevens said whenever he thought of Hillsborough, he thought of it as ?Hillsborough on
the Eno.? He said that the Eno River was an important part of the Town and the Eno River
Association had done much for the entire upper Neuse River.
4. AGENDA CHANGES & AGENDA APPROVAL
7:06:26 PMCommissioner Lowen added an item regarding Dirt Bike Riding in Fairview as
Item 10.K.
Commissioner Hallman added an item regarding the Water Sewer Advisory Committee
Attendance Rotation Schedule as Item 10.L.
Mayor Stevens added an item regarding the State of the Town Address as Item 10.M.
Upon a motion by Commissioner Hallman, seconded by Commissioner Lloyd, the Board moved
to approve the Agenda as amended by a vote of 5-0. The motion was declared passed.
5. APPOINTMENTS
Consider appointment of Penny Rand to fill a vacant seat on the Hillsborough Tree
A.
Board with a term ending December 2011
7:08:14 PM Upon a motion by Commissioner Dancy, seconded by Commissioner Lloyd, the
Board moved to appoint Penny Rand to fill a vacant seat on the Hillsborough Tree Board with a
term ending December 2011 by a vote of 5-0. The motion was declared passed.
6.COMMITTEE REPORTS (Critical)
7:08:32 PM Commissioner Hallman said that there would be a TAC meeting on Wednesday,
and for December?s TAC meeting they had sent in comments on the Long Range Transportation
Plan. He said they had a discussed it at length then, and would take it back up again on
Wednesday. Commissioner Hallman said there was a significant shortfall in funding the revenue
projects that would cover all the projects listed, and they had been asked to whittle those down.
He said that the Town Board had suggested dropping the I-40 widening from 15-501 to the I-
40/I-85 split, which was a significant cost at about $140 million. Commissioner Hallman said it
had been realized afterwards that the calculations were wrong and the shortfall was much bigger
than anticipated.
Commissioner Hallman stated that Chatham County had not been pleased to learn that all of their
road projects had been recommended to be cut. He said staff had also recommended cutting out
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Approved: February 9, 2009
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the western bypass from Hillsborough?s projects, so if it was not included in the 2035 Plan, they
would have another opportunity in three years to include it. He said they had done their part if
they supported the cutting of the I-40 widening and the western bypass.
Commissioner Hallman distributed an invitation to the Board from Neighbor House of
Hillsborough to a meeting at St. Matthews Episcopal Church on January 27, which was a
luncheon to discuss homelessness. He stated that Neighbor House was now delivering almost
100 meals four nights a week, Monday thru Thursday, and were looking to establish some kind
of permanent site and participate with the Food Bank and others to arrange services.
7.REPORT FROM THE TOWN MANAGER
7:11:21 PMMr. Peterson indicated he had no report to offer at this time.
8. DEPARTMENTAL REPORTS
7:11:27 PM Police Chief Clarence Birkhead stated that Part I crimes were down 6%, and Part
II crimes were down 7%. He said that overall reported crime was down 6.4%. Chief Birkhead
said this was the third year that he was happy to report a downward trend in crime statistics. He
said on the disturbing side, robberies were up by 33% from last year. Chief Birkhead said that
robbery was a crime of opportunity, and unfortunately economic downturns certainly coincided
with spikes in such crimes. He stated they would need to continue to do a good job making
citizens aware of such crimes of opportunity, how to protect themselves, and how not to become
a victim.
Chief Birkhead said overall they were doing a good job, adding that their year-end numbers were
being tallied and they would compare those to their clearance rates. He said those numbers
would be reported to the Board next month.
Chief Birkhead, referring to an article in last week?s newspaper, stated that he wanted to offer his
thanks to the public for its cooperation as well as all of their community watch groups who
partnered with the Police to let them know what was happening in their neighborhoods. He
stated they had worked hard to build those bridges with the public and believed they were being
successful.
7:13:37 PM Finance Director Greg Siler said he wanted to make the Board aware that today
they had paid off the Bank of America loan for the wastewater treatment plant upgrade taken out
in 2002 for $750,000. He said they had made the last annual payment of $125,000 to clear that
loan. Mr. Siler said on June 1 of this year they would pay off the water system upgrade loan
taken out in 1993 for $1.4 million.
7:14:53 PM Commissioner Hallman said tomorrow there would be a Strategic Growth Public
Outreach meeting at the Community Center from 4 p.m. to 8 p.m. He said that Ms. Hauth and
the Town?s consultant had held one such meeting at the Catholic Church north of Town with
some attendance, but they expected better attendance at tomorrow?s meeting. He invited all to
attend.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
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9. ITEMS FOR DECISION ? CONSENT AGENDA
A.Consider Approval of the Minutes of the November 24, 2008 Monthly Workshop; the
December 8, 2008 Regular Board Meeting; and the December 8, 2008 Regular Meeting
Closed Session
B.Consider extending vested rights period for Oakdale Village Master Plan
C.Consider an amendment to the Privilege License Section of the Town Code by increasing
the fee
D.Consider an amendment to the Privilege License Section of the Town Code to add a
special events fee
E.Consider approval of Jordan Lake Partnership Memorandum of Understanding
F.Consider approval of new Position Description and amendments to the Towns Salary
Schedule to add new position
7:15:45 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Gering, the
Board moved to approve the Consent Agenda by a vote of 5-0. The motion was declared passed.
10. ITEMS FOR DECISION ? REGULAR AGENDA
A.Presentation of the 2007-2008 Comprehensive Annual Financial Report
7:16:08 PM Mr. Siler provided a PowerPoint presentation of the 2007-2008 Comprehensive
Annual Financial Report, developed by the Town?s auditors, Dixon and Hughes. He stated that
Lavone Montague, Senior Manager with Dixon and Hughes, was present to answer questions.
Mr. Siler noted that the report was available on the Web site for those interested in reading the
report in depth.
Fiscal Highlights
?
General Fund Activity
?
Fund Balance Position
?
Debt Position
?
Water and Sewer Enterprise Fund
?
Capital Reserve Funds
?
Audit Results
?
Future Financial Challenges
General Fund Revenues and Transfers
?
Revenues and transfers total $6.361 million
?
Increase of 1.5% over 2007
?
Leading sources of revenue:
?
Property taxes 60.4%
?
Sales taxes 17.8%
?
Intergovernmental 14.3%
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 5 of 24
Property Taxes
?
Assessed value $628.28 million ? 2007
?
Increase of less than 1.0% over 2007
?
94.89% of gross levy collected (lowest in 5 years; primarily due to one business filing for
bankruptcy and failing to pay taxes)
?
Dropped below Statewide average of 97.46
General Fund Expenditures and Transfers to Other Departments
?
Expenditures and transfers totaled $6.28 million
?
Increase of 4.7% over 2007
?
Leading expenditures included:
?
Public safety 53.3%
?
General government 20.0%
?
Transportation 10.1%
Fund Balance Position
?
$2.89 million Undesignated as of 6/30/2008
?
Decrease in Undesignated Fund Balance of $37,950
?
46.1% of 2008 expenditures
?
Exceeds LGC 8% recommended minimum
?
Well within Fund Balance policy of 20-60%
Undesignated Fund Balance as a Percentage of General Fund Expenditures
?
Chart showing percentages over the last ten years:
?
1999 28.2%
?
2000 36.3%
?
2001 39.3%
?
2002 41.1%
?
2003 55.6%
?
2004 50.9%
?
2005 56.9%
?
2006 50.0%
?
2007 48.9%
?
2008 46.1%
Dollar Amount of General Fund Undesignated Fund Balance
?
Chart showing Fund Balance over the last ten years, in millions of dollars:
?
1999 $1.0
?
2000 $1.3
?
2001 $1.5
?
2002 $1.7
?
2003 $2.3
?
2004 $2.3
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Approved: February 9, 2009
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?
2005 $2.6
?
2006 $2.7
?
2007 $2.9
?
2008 $2.9
Debt Position
?
Outstanding General Fund debt at 6/30/2008 - $1,518,923
?
Net increase in debt of $1,287,560 ($1,349,700 new debt; $62,140 retired debt)
Debt Issued in 2007-2008
?
$1,439,700 in alternative financing
?
$1,226,000 Gold Park construction, Phase 1
?
$123,700 leaf collection truck purchase
Debt Policy Parameters (for future consideration)
?
Debt will not exceed ?% of assessed value
?
Actual debt = 2.4% of assessed value
?
Debt service payments will not exceed ?% of operating expenses
?
Actual payments = 1.2% of operating expenses
?
Legal maximum in North Carolina = 8% of assessed valuation
Water/Sewer Enterprise Fund
?
Total revenues of $6.56 million
?
Total expenditures of $5.99 million
?
Net transfer to Water/Sewer Fund from Water/Sewer Capital Reserve Fund of -$334,416
($125,000 in and $459,416 out)
?
Transfer to Sewer Outfall Capital Projects Fund of $42,000
?
$.572 million revenues over expenditures
?
$.195 million revenues and other sources over expenditures (includes all dollars
transferred in and out of the Fund)
?
Unrestricted cash and investments of $4.21 million
?
Restricted cash and investments of $2.01 million
?
Current liabilities of $1.58 million
?
Good financial condition
Water Rates Compared to Water Usage
?
Chart showing water used in millions of gallons compared to in-Town water rates per
thousand gallons of usage over the last ten years:
?
1999 $4.12
?
2000 $4.12
?
2001 $5.63
?
2002 $6.36 116.7 (drought year)
?
2003 $6.36 105.2
?
2004 $6.45 100.9
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Approved: February 9, 2009
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?
2005 $6.45 94.2
?
2006 $6.45 94.7
?
2007 $6.65 92.4
?
2008 $6.72 90.3
Capital Reserve General Funds
?
Developer contribution of $235,000
?
Balance at FY08 end of $374,637 (Police - $71,078; Fire - $203,067; Water - $100.492)
Capital Reserve Water/Sewer Fund
?
Balance at FY08 end of $1,569,302 (Water of $1,207,110; Sewer of $362,192)
?
Increase of $384,797 from prior year
Single Audit and Grants
?
Not required this fiscal year
Ms. Montague provided information regarding the audit process and new procedures
implemented this year, including the new risk assessment standards which required that they take
a more thorough look at the internal controls in various departments and transaction cycles. She
stated there were no significant matters noted regarding internal controls as a result of those risk
assessments. Ms. Montague stated she believed they had delivered a more thorough audit
because they were able to look at different transaction cycles and actually identify specific risk
areas and look specifically at those areas.
Ms. Montague said there were some findings regarding internal control that should be addressed,
and were located in the financial audit report beginning page 113, which was the Compliance
section of the report. She presented the following information:
Positive Audit Results
?
Successful audit process ? fewer journals entries required. One significant journal entry
was made related to the property tax receivables and its offsetting deferred revenue; no
revenue impact; working with staff regarding how to accumulate required information for
full accrual financial statements required by GASB 34
?
Continued implementation of new GASB accounting standards, including new GASB 45
related to postemployment benefits other than pensions that beginning in 2010 would need
to be reflected in full accrual financial statements; would require contracting with an
actuary to get the value of that liability
?
New accounting standard to be implemented was GASB 49 regarding pollution
remediation of such things as underground storage tanks or buildings with asbestos; and,
liability associated with owning such an asset
?
Next accounting standard to be implemented was GASB 51 regarding accounting for
intangible assets; examples would be rights-of-way, water rights, land rights, easements, or
anything not easily identified as a physical asset
?
No new auditing standards that would significantly impact the 2009 audit; impact of risk
assessment standards implemented this year would continue
January 12, 2009 Regular Meeting
Approved: February 9, 2009
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?
Auditors performed new SAS 112 requirements
?
Sound financial policies and procedures
?
?Unqualified Opinion? (Good)
Future Financial Considerations
?
Debt issuance for Gold Park/Riverwalk Phase II, Phase II land acquisition and planning,
Nash Street sidewalk project, Motor Pool/Public Works Facility, radio-read water meter
installation, wastewater collection system equipment, Wastewater Treatment Plant
upgrade/expansion
?
GASB 45 implementation (OPEB) and other new pronouncements
Commissioner Lloyd said regarding GASB 49, was she referring to property owned by the
Town. Ms. Montague said yes, property that was owned by the Town or that the Town was
responsible for. She said if the Town had agreed, for instance, to clean up a polluted site, then it
would be the Town?s responsibility to meet the requirements of GASB 49.
Ms Montague stated that overall, there was an unqualified opinion on the Town?s financial
statements, which was the highest form of opinion that an independent accountant could give on
a set of financial statements. She said everything about the audit had gone well and there were
no major problems.
Ms. Montague stated that they appreciated the opportunity to continue to serve the Town of
Hillsborough, and looked forward to assisting the Town in any way, particularly in regard to the
new standards or any other matters that came up during the year.
7:43:19 PM Mayor Stevens thanked Ms. Montague for her help, and offered his thanks to Mr.
Siler, Mr. Peterson and the staff for the good job they had done throughout the year.
B.Presentation of the 2006-2007 Certificate of Achievement for Excellence in Financial
Reporting
7:43:50 PM Mr. Siler stated that the Certificate of Achievement for Excellence in Financial
Reporting was the highest form of recognition in the area of governmental accounting and
th
financial reporting. He stated that for the 14 consecutive year the Town had been awarded the
Certificate of Achievement, the fourth year under his management as well as the fourth year
using the GASB 34 model. Mr. Siler said its attainment represented a significant
accomplishment by a government and its management.
Mr. Siler offered his thanks to all staff who had worked so hard this year, noting they were
independent workers who required very little supervision, and the fact that the Town had again
received the award was a testament to their dedication. He thanked the Town Board and the
Manager for providing them the tools needed to make that achievement possible.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 9 of 24
C.Consider approving an encroachment on 408 Calvin Street
7:46:34 PM Assistant Town Manager/Public Works Director Nicole Ard stated that Kenneth
Trivette had requested building a low rock wall at 408 Calvin Street, with part of the wall being
in the right-of-way. She said discussions had been held with Mr. Trivette and the Public Works
and Planning staff and the Utilities Department, with no issues identified. Ms. Ard stated that
Mr. Trivette understood that he would be responsible for the wall?s maintenance, any repairs due
to Town-related maintenance or construction, including any damage caused during work for any
road, sidewalk, water or sewer-related construction or maintenance activities. She said staff was
recommending approval of an encroachment agreement for that specific wall, which was in the
form acceptable to the Town Attorney.
7:47:35 PM Mayor Stevens said in summary, Mr. Trivette would be totally responsible for the
wall and there were no departments who had any issues with it. Ms. Ard stated that was correct,
noting that this issue had come up because the HDC had approved the development project
proposed by Mr. Trivette but the wall was outside of the HDC?s purview.
Mr. Trivette stated he had wanted to put the wall there for two reasons. One, he said, was to
enhance the appearance, noting his plan was for the wall to be 12? to 18? in height, loose laid,
no foundation, no grout, and decorative in nature. He said the other reason for the wall was to
protect the huge White Oak tree in that location.
Commissioner Lowen stated he had visited the site and when he had seen the tree he had
understood why Mr. Trivette wanted to protect it.
Mr. Hines stated that the Tree Board had agreed with Mr. Trivette?s proposal for the wall to help
protect the tree, and they appreciated him doing everything he could to protect it.
7:49:27 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Hallman,
the Board moved to approve the encroachment for a rock wall on 408 Calvin Street by a vote of
5-0. The motion was declared passed.
D.Discussion of PARTF grant application related to Riverwalk and partnering with
Orange County on Fairview Park
7:49:55 PM Ms. Hauth stated there were two parts to be discussed, the first being an
opportunity that if they modified their goals slightly relative to Riverwalk they may be able to
access additional grant funding, and in order to submit the grant during the first week of
February the Town Board would need to authorize that grant submittal. She said the second
issue was exactly how the Town wanted to partner with Orange County for the Fairview Park
application and what the implications were of applying for both acquisition funds and partnering
with Orange County with their application for Fairview Park and how that might impact the
Town.
7:51:17 PM Mr. Peterson asked if Orange County?s application for Fairview Park got more
points if the Town co-signed. Ms. Hauth said she could not determine through the application
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Approved: February 9, 2009
Page 10 of 24
process that points were awarded for a joint application. She said the Trust Fund authority liked
to see partnership, but there were not specific points awarded for that.
Commissioner Lowen stated just the fact that they liked to see partnering was a good
recommendation to do so. He said he had heard from the County that things were looking better
because other communities that had applied for grant funds had actually withdrawn their requests
because their financial situations would not allow for matching funds. Ms. Hauth stated she
understood that there may be additional funds available, especially reallocation of previous
awards, because of lack of availability of matching funds and that because it was tied to the real
estate sales tax and there may be less money available.
7:52:39 PM Commissioner Gering said the Town would potentially be co-applicants with the
County, but would have no financial involvement at all. Ms. Hauth said that was correct.
Commissioner Gering said that was curious to him. He said one of the other things mentioned
was the possible negative side effect of the Town having two applications being considered
which might make them less successful. Ms. Hauth said the Trust Fund authority did look at
spreading the money geographically across the State, so if the Town were listed as a co-applicant
with Orange County then they would be competing against themselves and Orange County when
they applied for the Riverwalk acquisition. She said the Town might want to submit a letter of
support rather than being a co-applicant, which would mean they were still supporting the
Fairview application but would not be competing against themselves. Ms. Hauth said that might
make it easier from an appearance standpoint for both applications to be funded.
Commissioner Gering said then there was a potential negative consequence to the Town
financially for the Riverwalk project, and zero financial gain on the Fairview Park project. He
said there would be no benefit to the Town to become a co-applicant with the County for the
Fairview Park. Ms. Hauth said since the Town had no financial liability for Fairview, if it were
funded or not there was no benefit to the Town. But, she said, since they did have financial
liability with moving forward with Riverwalk, and if they wanted to move forward regardless of
whether or not they received the grant funds, then the grant was obviously in their favor. Ms.
Hauth said if they were endangering that with the Fairview application, then that would be no
gain.
7:55:09 PM Commissioner Hallman said hypothetically, that would not play into the County?s
request for maintenance costs going forward with Fairview if they did not participate as a co-
applicant. Ms. Hauth said she did not know.
Commissioner Gering said there was an implied obligation.
Mayor Stevens asked was there a request for the Town to do one or the other, and did it really
matter from the County?s standpoint if the Town was a co-applicant or not. He said they wanted
to support the grant for Fairview Park and certainly wanted to support the grant for Riverwalk.
Ms. Hauth said from her discussions with County staff, as long as the Town was on board in
some way they would be pleased. She said they did not necessarily want the Town to do
something that endangered Riverwalk.
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Approved: February 9, 2009
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Mayor Stevens stated there was not likely to be more information forthcoming in terms of
PARTF, in that they knew what the process was and what was required. Ms. Hauth stated that
PARTF staff had shared their scoring sheet with her, and she could find nothing where extra
points were awarded for a co-application. She said it may be that if it came down to two
applicants with the same point total, with one a stand-alone applicant and the other a joint
applicant, it may be that the joint applicant would receive the award.
Mayor Stevens said short of receiving any additional information, writing a letter of support
might be the safer way to go, and therefore maximizing the benefit and minimizing the risk for
the Riverwalk application.
7:57:31 PM Commissioner Lloyd agreed.
Ms. Hauth said then was the Board in agreement with the concept of submitting the grant
application for the acquisition only and using the money already committed to the one
acquisition to act as the match for the second.
Mayor Stevens said he believed that was the best way to go, and the Board understood that
would delay the project. He said fiscally in the long run that was of more value to the Town.
Ms. Hauth said assuming they got everything they asked for, that would allow them to ask for
over $300,000 towards the acquisition of land and still ask for another $500,000 when they were
ready to construct.
Commissioner Gering stated that was a powerful argument. Ms. Hauth stated the Town Board
would need to sign the grant application saying that they had committed the matching funds.
7:58:38 PM Upon a motion by Commissioner Hallman, seconded by Commissioner Lloyd, the
Board moved to authorize the grant application for PARTF funds for land acquisition for
Riverwalk by a vote of 5-0. The motion was declared passed.
Upon a motion by Commissioner Lowen, seconded by Commissioner Gering, the Board moved
to authorize the Mayor to send a letter of support to the Orange County Board of Commissioners
for inclusion in the County?s PARTF application for Fairview Park by a vote of 5-0. The motion
was declared passed.
E.Discussion and direction to staff regarding zoning violation at 326 West Margaret
Lane
8:00:49 PM Ms. Hauth stated that they had now exhausted all the steps at the administrative
level for work done at that house that did not match what had been approved by the Historic
District Commission. She said the property owner had become non-responsive to attempts at
communication. Ms. Hauth said the house had been approved for windows of a certain pane
configuration but the property owner had installed a window that was not compliant. She said
the owner had indicated the window was temporary, but it had been a year and the ?temporary?
window was still in place, with no change and no contact. Ms. Hauth said staff felt obligated to
bring the matter forward for consideration of the next step, which was legal action to compel the
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Approved: February 9, 2009
Page 12 of 24
owner to install the proper window in the configuration approved by the HDC, or, at a minimum,
come back and request a modification for the different pane style.
8:01:54 PM Mayor Stevens stated the property owner by being non-responsive was obviously
making no attempt to solve the issue.
Commissioner Gering said the next step would be to authorize the Town Attorney to seek civil
penalties. Town Attorney Bob Hornik said that was correct, but it could be framed in the
alternative to enter an order compelling the property owner to comply or to impose civil
penalties. He said since what they wanted was compliance, the only way to get that might be the
imposing or threat of imposing such civil penalties.
Commissioner Hallman asked what the civil penalties would be. Mr. Hornik stated that was
spelled out in the ordinance and was based on General Statutes.
Ms. Hauth stated the penalty was $100 a day, and it was a matter of what day that penalty was
counted from.
Upon a motion by Commissioner Gering, seconded by Commissioner Hallman, the Board moved
to authorize the Town Attorney to seek compliance or civil penalties and corrective action for the
property at 326 West Margaret Lane by a vote of 5-0. The motion was declared passed.
F.Discuss and Review Proposed 2060 Water Capacity Projections for Jordan Lake
Work Group
8:03:32 PM Mr. Peterson said that in order to be able to participate in the Jordan Lake Work
Group two things were needed, a check for dues which were $2,500 a year as well as a 2060
Water Capacity study. He said he had adapted the Water Capacity Model that was just updated
in November to provide a water use projection for 2060. Mr. Peterson said the Water Sewer
Advisory Committee had indicated that the COG was coordinating that and as they got closer
they may need to refine the document or get official Board approval, but for now the staff
document was adequate. He said he had wanted to bring that to the Town Board and the WSAC
to make sure nothing major had been missed and to get any feedback. Mr. Peterson said if the
Board agreed, he would send the document to the COG.
8:05:10 PM Commissioner Hallman said according to the model, they did not have to build
the second phase of the reservoir until FY30. Town Engineer/Utilities Director Kenny Keel said
their permit to construct the reservoir, Phase I and II, expired in FY18, so they would probably
want to move forward before then so that they would not have to apply for another permit.
Mayor Stevens said he did not believe a motion was needed, just some direction to staff. Mr.
Peterson said that was correct, noting the Town Board could simply agree to the WSAC?s
motion. The Board agreed by consensus.
G.Consider Sponsorship Invitation from the City of Raleigh for the Neighborhoods
USA Conference in May 2010
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Approved: February 9, 2009
Page 13 of 24
8:06:12 PM Mr. Peterson said that he had not been aware of this group until he had received
the letter from Raleigh, and it looked like a good educational opportunity. But, at this time
$5,000 seemed to be a lot of money for no tangible guaranteed payback. Mr. Peterson said he
would be happy to write a letter to Raleigh thanking them for the invitation but declining.
Commissioner Hallman stated there was perhaps a benefit regarding tourism, and wondered if
the Tourism Board might be interested.
Commissioner Gering said he had read the description and thought the people attending the
conference would not likely be ambassadors to promote tourism. He said he did not see a strong
relationship.
8:07:41 PM Mayor Stevens said he knew they had been receiving money from the City of
Raleigh for the Eno River. He said he understood that at this time $5,000 was a lot of money,
and did not know if there was a value in terms of money they were starting to get back in the
spirit of regionalism for what was being put into the purchases along the Eno River. Mayor
Stevens said he did not know the level of value, but did know there was a return to the Town for
regional partnering.
Commissioner Gering stated that was a fair point, but looking at that type of conference setup the
Town?s contribution would not be to fund anything other than that conference, such as projects
that had a longer life. He said money could be spent in that fashion more equitably than for that
conference.
8:09:08 PM Commissioner Lowen agreed, but said that in today?s economy he would prefer to
see that $5,000 spent some other way.
Mr. Peterson remarked the Town could still participate in the conference without becoming a
sponsor.
Commissioner Lowen asked when the deadline was. Mr. Peterson stated the deadline had
already passed, but believed they would still be happy to allow the Town?s participation.
Mayor Stevens said he believed the Town should politely decline the invitation for sponsorship.
8:09:53 PM Commissioner Lloyd said they had already approved to increase the privilege
license fees, expected to increase by $13,300. She said if that $5,000 sponsorship fee came from
that if would leave only $8,300 as a gain from privilege taxes, which she did not believe would
be fair to the people who were paying that fee because they had had no say in how those funds
were being used.
Mayor Stevens stated that was a good point.
H.Review and consider approval of increases to the Water & Sewer Capital Facilities
Fees
January 12, 2009 Regular Meeting
Approved: February 9, 2009
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8:12:32 PM Mr. Keel said that the Town had hired Raftelis Financial Consultants (RFC) to re-
evaluate their sewer Capital Facilities Fees as well as their water Capital Facilities Fees primarily
in light of the anticipated upgrade and expansion of the Wastewater Treatment Plant. He said
RFC?s report showed that water fees should be increased slightly, but that the sewer fees should
be increased significantly. Mr. Keel said those fees should be increased when they actually did a
contract with an engineering firm to design the plant.
Mr. Keel said he expected to come back to the Board in March with a contract with an
engineering firm, adding that proposals were being evaluated now. He said after discussions
with the Manager and the WSAC, and concern about the current economy and slower
development, they believed it would be a better idea to delay the increase until July 1, which
would typically be when such fees would be raised.
Mr. Keel stated his recommendation, as well as the recommendation of the WSAC, was to accept
the schedule proposed of RFC to begin July 1, 2009. He said if that was adopted in July that
would take their sewer Capital Facilities Fees for a house from $634 to $6,889. Mr. Keel stated
that was a significant increase that could have impact on development, but that was the fee
necessary to pay the bulk of the Wastewater Treatment Plant expansion project. He said one of
the biggest reasons they had to do that was because of growth and having additional usage in the
sewer system.
Mr. Keel said he had handed out a survey recently done of several Triangle and Triad utilities to
determine what their water/sewer tap fees were. He said those fees had ranged from a low on
water from $875 up to a high of $5,910, and the rates they were proposing for water was $1,900
from the current level of $1,650. Mr. Keel said the low and high on sewer ranged from a $900
tap fee to a $5,910 tap fee, so of all those surveyed Hillsborough would have the highest fee. He
noted he did not know what the fees might be in future for those surveyed, nor what their facility
needs might be.
Mr. Keel stated the Board did not need to take any action tonight, but staff could include that in
the fee schedule for the FY10 budget and it could be debated at that point in time. He said the
only action that might be needed tonight would be if the Board wanted to implement the
increases earlier.
8:17:36 PM Commissioner Hallman asked was it the recommendation of staff and the WSAC
to do the five year average. Mr. Keel stated the recommendation was to do the annual change
because it provided a little more relief versus the five year average, and it would be more
accurate.
Mayor Stevens stated he had attended the WSAC meeting where that was discussed, and the
WSAC believed it would be more advantageous to the Town and to developers in the short term
not to do the averages. He said just to clarify, the fee July 1, 2009 would be $6,889 for sewer
and $1,900 for water. Mr. Keel stated that was correct. He said they were starting with year two
of what RFC had proposed, because if they were to implement the fees anytime between now
and July 1 they would use the FY09 numbers rather than the FY10 numbers.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 15 of 24
Mayor Stevens stated it would appear to be consistent that they went ahead and rolled that into
the next budget, unless there were circumstances that changed significantly between now and
then. He suggested that Mr. Keel proceed with building that into the next fiscal year budget.
Commissioner Dancy agreed, and did Commissioner Lowen.
8:19:36 PM Commissioner Hallman asked if Forest Ridge would come under the old rates.
Mr. Keel replied no, that fees were paid based on what was in effect at the time construction
began, or when utilities were put in the ground. He said that project would not be ready to start
prior to July 1, so it would come in under the new higher rates.
Commissioner Lowen said he understood from a financial standpoint that they had to increase
the fees, but it was one of those things that would be tough for him to do. He said when you
looked at numbers and saw what the Town had to do in conjunction with what the County had
done with their increased impact fees and the cost of building, it made it very hard to build a
house for affordable housing. Commissioner Lowen said it really put a strain on an individual or
a family wanting to move into the area and build a home, noting they were basically asking a lot
of newcomers to pay for the expansion at the Wastewater Treatment Plant, and they needed to
look at how the Town could support them in other ways.
8:21:45 PM Commissioner Gering agreed, noting when they had received the presentation
from RFC he had been looking for some justification that they would force future customers to
subsidize existing customers for the expansion, but RFC had managed to thoroughly convince
him that their model did not do that.
Commissioner Lowen agreed that it did not.
Commissioner Gering said people that would pay the higher cap fees were really not helping
current customers. Mr. Keel stated they would be paying their portion of the construction
project, noting that $20 million of the estimated $26 million in construction costs would be on
new customers, with the remainder paid by rates charged to current customers.
Mayor Stevens agreed with Commissioner Lowen that it was absolutely frustrating to have to
add these costs to the price of a home, particularly for affordable housing. But, he said, that was
what it cost for someone?s fair share that was coming into the system. Mayor Stevens said that
was the unhappy truth.
8:23:05 PM Commissioner Lowen stated the truth was they were going to have to raise the
fees whether someone built a house or not. Mr. Keel stated they should be under contract by
March with an engineering firm, and it may be that due to current economic conditions and
further evaluation of what they needed to do at the plant that they might be able to bring that fee
down. He said they should be getting some preliminary numbers, noting that RFC had done a
model and they should be able to throw different construction cost figures to readjust the fee
before the Town Board adopted the FY10 budget.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 16 of 24
Mr. Keel stated that this did not take into consideration the possibility of any federal dollars for
infrastructure, noting it may be possible to get grant money to help fund the project. He said that
could offset some of the costs and bring the fees down for customers.
Mayor Stevens said the Town would certainly be looking at all opportunities to do that. Mr.
Keel agreed, noting he was working on a list of projects that they could possibly consider for
those federal dollars if and when they became available.
8:24:21 PM Mr. Peterson said he had talked with the Board previously about pushing forward
with the design, especially since they had almost $500,000 in grant funds and $1 million for
design. He said his fear was they would not be shovel ready when the federal dollars became
available, but nonetheless they needed to move forward so that their window of opportunity was
increased to get grant funds. Mr. Peterson said it was also possible that they may need to
consider delaying the project for a year or two.
Mayor Stevens said there were cost advantages to doing the project quickly, but delaying the
project for a couple of years had its own advantages. He stated they would need to stay on top of
that and continue to weigh the different options. Mr. Keel stated at this stage they still had the
flexibility to speed the project up or slow it down, depending on what was determined to be best
for the Town.
8:25:30 PM Mayor Stevens determined there was a consensus of the Board to have the rates
included in the upcoming FY10 budget. He stated he wanted to go on record, and believed he
spoke for the Board, that they appreciated all the services of the WSAC who paid a lot of
attention to its work and to the industry of homebuilding and real estate. Mayor Stevens said it
was a very well-run board that included people who had expertise in those areas and who looked
at all these issues very seriously. He said it made the Town Board?s job easier knowing that
those Committee members who were volunteers were looking out for the interests of water and
sewer customers and were providing guidance and oversight to the process. Mayor Stevens said
their efforts were very much appreciated.
I.Request Meeting with WSAC at January or February Town Board Workshop
8:26:27 PM Mr. Keel stated that the Water Sewer Advisory Committee was requesting a joint
meeting with the Town Board, and were suggesting that they be included on the March
Workshop Agenda. He stated if that seemed favorably to the Board, then they would plan for
that.
Mr. Peterson stated staff was planning on having the preliminary annexation feasibility study
available for the March Workshop as well, so that may allow for a presentation so that both
groups could hear it at the same time.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 17 of 24
The following items were heard out of order.
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J.Discuss possible ?Hot Topics? for the January 26 Workshop
8:38:58 PM Mr. Peterson stated he believed the only topic would be if the Board wanted to
continue its Density discussion as it related to future development and the Zoning Ordinance.
Mayor Stevens asked were they likely to have any topics related to strategic growth, rail, or any
other issues. Ms. Hauth stated they could provide updates on those, but those items were being
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prepped for the Board?s February 19 meeting with the County.
Commissioner Lowen asked were they planning on continuing the density discussion. Mr.
Peterson said the Board had discussed it but there had been no specific plans to continue it.
The Board held a brief conversation on whether or not to continue that discussion. Mr. Peterson
said he did not know that he had heard clear tangible meaty items that would be talked about at
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the January 26 workshop.
8:40:44 PM Ms. Hauth stated the next step was the request for examples of places that the
Board could visit to look at, noting the closest example was in Durham. She said she did not
know if they would need to schedule a daytime trip to go see it, noting it was very small, and all
other examples were further away. Ms. Hauth said that could be put off for now, since she was
not sure where the discussion would go.
Commissioner Hallman said if part of that was to form the Ordinance rewrite, was there specific
direction the Board needed to provide. Ms. Hauth stated she had not been prepared to talk about
that tonight, noting when the Board had first had the discussion she had envisioned the Board
appointing a committee to address density and a few of the really big items that needed to be
discussed before they actually began the rewrite. She said the Board had decided not to do that
but to continue the discussion themselves, so she was still trying to understand what it was the
Board wanted to do with the density discussion other than seeing examples of what other places
looked like. Ms. Hauth said the HDC had completed its work and finalized a document for the
Town Board?s review, noting that the HDC believed the work they had done on character and
infill was complete and ready for review, but she did not believe it would be ready for the
January workshop.
8:42:57 PM Commissioner Lowen said when they had initially started workshop meetings
they had agreed to have those meetings if warranted, and did not believe they should have a
meeting if there was nothing significant to put on the agenda. Ms. Hauth said she did not know
that if the Board got its agenda packet a week in advance if during that week they would have
time to travel to Durham to look at the one example. She said if she provided the list of
examples now, would that give them time to travel to Durham or Cornelius or Davidson or
Huntersville or some of the other places that had been suggested to her. Or, she said, was it more
beneficial for the Board to go together and see those places so that they would have that shared
experience.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 18 of 24
Commissioner Lowen stated it was his opinion that the Board should travel together to view the
examples.
Mayor Stevens said he believed it would take too much energy to plan something like that in the
next two weeks. He said he was not hearing a lot of support for a January workshop.
8:44:06 PM Upon a motion by Commissioner Lowen, seconded by Commissioner Gering, the
Board moved to cancel the January workshop meeting by a vote of 5-0. The motion was
declared passed.
Added Item 10.K - Dirt Bike Riding in Fairview
8:28:07 PM Commissioner Lowen said he had received numerous calls from members of the
Fairview community over the past few week, and he had discussed the issue with the Mayor and
the Police Chief. He said the land for the proposed Fairview Park was being used by dirt bikers,
and it was out of control. Commissioner Lowen said the land, which was County and Town
land, was being used for races, with at times up to ten dirt bikers parking on Torain Street. He
said the bikers would race up into the woods and neighbors had reported the noise to be
horrendous. Commissioner Lowen said that amount of noise within the Town limits just could
not be allowed, noting it was so bad that neighbors on that street as well as Hill Street, Rainy,
and others were calling and complaining that they could not even hear their televisions. He said
it had also been reported that as the races took place it appeared that at times someone was
shooting a gun into the air.
Commissioner Lowen said when he had spoken to the Police Chief, he had said he would
address the situation and he believed the Chief had done so. He said that last night Sheriff?s cars
were there and had run the bikers off, but there was no signage that indicated no trespassing.
Commissioner Lowen said there was some confusion on the part of law enforcement as to what
belonged to the Town and what belonged to the County, but the neighbors did not care about
that. Commissioner Lowen said the neighbors wanted to call the news media, but he had asked
them to wait until he could bring the problem to the Town Board. He said it appeared that
although neighbors were ?up in arms,? the bikers did not appear to care that they were disturbing
the neighborhood. Commissioner Lower stated that something had to be done to resolve the
issue.
8:30:26 PM Mayor Stevens said one recommendation would be for the Town to take
responsibility to place some signage there to indicate that trespassing was not allowed.
Commissioner Lowen stated the Chief could speak to what they had discussed in order to put
some more teeth into what was done when they confronted the bikers.
Commissioner Gering asked what the Town?s jurisdiction was.
Chief Birkhead stated that the Town could take jurisdiction because the land was in the Town?s
ETJ. He stated they could post the property and very clearly state that trespassing would not be
tolerated on either the Town?s or the County?s property, and his officers could enforce that.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 19 of 24
Chief Birkhead stated they had identified at least one individual who was using the property, and
they were addressing that now. He said they also needed to replace the chain on the gate, even
though bikers could go around through the wooded area.
8:31:45 PM Mayor Stevens stated they needed to make it really clear that the area was off
limits for dirt bikes. Chief Birkhead agreed.
Mayor Stevens said the signage would not be expensive and should be installed. Mr. Hornik
stated there was particular language in the statutes that could be included on the signs, noting it
had been used on similar signs in the past. Mr. Peterson said similar language was used on signs
down by the river.
Commissioner Lowen asked what that wording would be. Chief Birkhead said in this instance
the wording would need to be somewhat different since it was not actually park property, noting
these signs would simply be ?No Trespassing? signs.
8:32:39 PM Commissioner Lowen asked would the sign say just ?No Trespassing? or would it
say ?By order of the Town of Hillsborough? or something that would add some teeth. He said
the gate was closed, but the bikers when right around it. Commissioner Lowen said he believed
there needed to be something more than just one or two signs that said ?No Trespassing? that
made it clear, particularly along the path that went into the planned park area. He said one of the
bikers had said to the Deputy Sheriff that spoke to him that there were no signs that indicated
they could not be on the property.
Commissioner Gering asked could they add the Town emblem or a Police shield on the sign to
make it more official. Mr. Hornik said they could post it as the property of the Town of
Hillsborough with no trespassing allowed. He said they could also add Town code reference as
well as statutory reference, with language saying that violations were punishable by whatever.
Commissioner Lowen stated that was exactly what he wanted to see, so that violators would
know they could not do what they were doing and expect to get away with it. Mr. Peterson
stated if Mr. Hornik could tell him what the language needed to be, and someone else could tell
him how many signs were needed and where they needed to be placed, then they could get the
signs ordered and Public Works could get them installed as quickly as possible.
Mr. Hornik stated he could get the language identified tomorrow.
Mayor Stevens asked would no trespassing mean that persons who just wanted to walk or hike
through the property would not be able to do so.
Commissioner Lowen said right now he did not believe anyone else was using the property. Mr.
Peterson stated if someone was just cutting through the property that was not of interest to them.
8:34:46 PM Mayor Stevens stated perhaps the signs could also say ?No Bikes.? He said long
term as they thought about the park they should keep in mind how they would establish park
rules, in that they may want to encourage bicycles but not motorized bikes and the process to do
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 20 of 24
that. Mr. Peterson said in the meantime, they could ask the Police to step up patrols, since they
knew at least where people were parking to access the park land.
Commissioner Lowen stated he believed the Chief had already stepped up patrols, but this was
one of those things where the violators would leave when asked to do so but would come back.
He said that caused the residents to call 911 to say the bikers were back, and he would like to
eliminate that.
Mayor Stevens stated to let him know if there was anything he could help with from the
County?s point of view that would be useful.
Added Item 10.L ? Water Sewer Advisory Committee Attendance Rotation Schedule
8:27:22 PM Mayor Stevens stated the Town Board had a rotating schedule for attending the
WSAC meetings, and said it had been suggested that they continue with that same schedule.
By consensus, the Board agreed to keep the same WSAC schedule as last year.
Added Item 10.M - State of the Town Address
8:36:34 PM Mayor Stevens said Mr. Peterson had suggested that the State of the Town
address be done on the same night as the February Workshop, which he believed would be
appropriate. He said they may have to have a meeting afterwards, but they would try to avoid it.
Ms. Hauth stated they needed to have someone looking for an alternative location, noting that the
Gordon Battle Courtroom would be inaccessible once construction started.
Mayor Stevens asked could they plan for the February Workshop, but look for another location
such as the Senior Center, Durham Tech, or perhaps one of the school auditoriums.
Commissioner Lowen stated he knew that the County Commissioners had held occasional
meetings at one or other of the schools.
8:38:07 PM Commissioner Lloyd stated the closer to Town they could get a location, the
better the participation would be. Mr. Peterson stated one of the elementary schools would be
the first priority.
Mayor Stevens stated he would work with staff to determine a location.
11. CLOSED SESSION
A.Closed Session as authorized by North Carolina General Statute Section 143-
318.11(6) regarding Personnel Matters (3)
8:45:08 PM Upon a motion by Commissioner Dancy, seconded by Commissioner Gering, the
Board moved to go into Closed Session by a vote of 5-0. The motion was declared passed.
January 12, 2009 Regular Meeting
Approved: February 9, 2009
Page 21 of 24
12. ADJOURN
Upon returning to Open Session, and upon a motion by Commissioner Dancy, seconded by
Commissioner Lowen, the Board moved to adjourn to adjourn the meeting at 9:00 p.m. by a vote
of 4-0. The motion was declared passed.
Respectfully submitted,
Donna F. Armbrister, MMC
Town Clerk
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Approved: February 9, 2009
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