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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 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 2 of 24 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 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 3 of 24 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 Page 4 of 24 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 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 6 of 24 ? 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 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 7 of 24 ? 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 Page 8 of 24 ? 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 January 12, 2009 Regular Meeting 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. January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 11 of 24 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 January 12, 2009 Regular Meeting 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 January 12, 2009 Regular Meeting 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 Page 14 of 24 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. th 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 th 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 th 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 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 22 of 24 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 23 of 24 January 12, 2009 Regular Meeting Approved: February 9, 2009 Page 24 of 24