Town of Holly Springs

Board of Commissioners Regular Meeting

Tuesday, June 20, 2000

MINUTES

The Holly Springs Town Board of Commissioners met in regular session on Tuesday, June 20, 2000 in the Town Board meeting chambers, located in Town Hall, 128 S. Main St. Mayor Gerald W. Holleman presided, calling the meeting to order at 7:30 p.m. A quorum was established as the mayor and all five board members were present as the meeting opened.

Board Members Present: Commissioners Tim Sack, John Schifano, Parrish Womble, Peter Atwell and Hank Dickson and Mayor Holleman.

Board Members Absent: None.

Staff Members Present: Richard B. Self, town manager; Ernest C. Pearson, town attorney; Joni Powell, town clerk (recording the minutes); Stephanie Sudano, director of engineering; Gina Bobber, planning director; Len Bradley, parks and recreation director; Derek Baker of the engineering department; and Katie McDonald of the soil and erosion control office.

2 and 3. The pledge of allegiance was recited, and the meeting opened with a moment of silent meditation.

4. Agenda Adjustment – The June 20, 2000 meeting agenda was adopted with changes, if any, as listed below.

Motion Made By: Sack

Motion Seconded By: Dickson

Vote: Unanimous.

Items Added to Agenda: None.

Consent Agenda Items Moved to New Business: None.

5. Public Hearing: Holly Springs 10-Year Solid Waste Plan – Mr. Self explained that the Town of Holly Springs recently took action to deny approval of the Wake County 10-Year Solid Waste Management Plan (3-year update). Following, Wake County advised that Holly Springs would be excluded from the county document.

Mr. Self explained that, to be in compliance with state law, the Town must devise and follow its own 10-year plan of action for solid waste management and that that plan must be filed by June 30.

He referred the Board to a copy of the plan written for the Town by staff and a consultant. Mr. Self explained that the plan meets all the statutory requirements and outlines steps and programs the Town will take in the coming decade to manage and reduce the flow of solid waste generated within the municipality. He reported that the Town has an 18% waste reduction goal.

It is stated in the plan that the Town’s position on landfills is that the Town would be open to using landfills in the geographic area rather than just those in the county.

Commissioner Schifano said he would like to see the town emphasize composting and recycling in the plan to further reduce the waste reduction flow.

One of the steps in the development of the plan, Mr. Self said, includes gathering input from the public.

With that explanation completed, Mayor Holleman opened the public hearing. The following comments were offered:

Walt Hudyma, 104 Merrimont Way – Mr. Hudyma said he was amazed that the Town of Holly Springs was excluded from the Wake County plan. He said he was amazed, too, that the Town was able to devise its own plan in three short weeks. Mr. Hudyma said he felt the Town plan was a good one. He added that he is frustrated with Wake County.

Lesli Doares, 316 W. Elm Ave. – Mrs. Doares said she had taken a cursory glance at the plan. She said she is disappointed that the recycling figures in the plan were not higher. Mrs. Doares said she feels that recycling is a most effective means of reducing the waste flow and that the 18% waste reduction goal of the Town seems low. She suggested that the Town look into the possibility of penalizing those who do not recycle.

There being no further comments, the public hearing was closed.

Mayor Holleman asked the Town Manager if there was any way to enforce existing laws against putting recyclables in the garbage. He said he felt that would be the only way to increase the Town’s recycling rate.

The Town Manager said that other landfill operations with which he is familiar have inspectors who literally sort the loads of waste and fine those who do not recycle. He said that may not be a viable solution for the Town of Holly Springs.

Commissioners discussed whether or not an 18% waste reduction goal was sufficient.

Commissioner Sack pointed out that the plan before them is a 10-year Solid Waste Management Plan, and although the plan states an 18% goal of waste flow reduction, there is nothing holding the Town back from exceeding that goal. He added that he felt the 18% was more realistic than a figure of 40%, but that the Town should strive to meet and exceed the 18% goal.

6. BFI Request – Mr. Self explained that action on this proposal was deferred on May 16 until June 20. He reminded the Board that Browning Ferris Industries, which operates Holly Springs Disposal, is asking the Town’s endorsement to the State and for approval of BFI’s continued operation of its demolition landfill for a period of up to 22 more months.

He reported to the Board that he has met with BFI representatives. He outlined that BFI’s proposal provides the Town of Holly Springs with yard waste disposal during the term of the agreement at no cost; that BFI will work with the Town to enforce the state litter law requiring trucks to be covered; that BFI will institute a surcharge on all loads that come to the landfill uncovered; that BFI will assist the Town in keeping New Hill Road clean of debris; that BFI will rebate to the Town of Holly Springs a “host fee” for all tons that the landfill receives during the term of the agreement; that BFI will convey back to the Town of Holly Springs the landfill property, approximately 120 acres, at the end of the agreement; and that BFI will sign an agreement whereby the maximum time period that the landfill will remain open is 22 months.

Mr. Self added that BFI has additionally committed that the host fees would equal $2 per ton or 10% of tipping fees collected, whichever is higher, and no less than $700,000. BFI also has clarified other questions from previous meetings, including that the company would be willing to cover with soil and seed the property upon closing; would assist the Town in negating the sloping where possible; and was amenable to entering into a lease agreement rather than conveyance of the property so that BFI would maintain all liability as owner.

Other questions the Board asked Mr. Self to find answers to were posed to Law Engineering for an independent perspective. Those questions and the answers are incorporated into these minutes as addendum pages.

Mr. Randall Esseck of BFI responded to the Board’s request in May for schematics for what could be done with the BFI property. He said a land planner and engineers were hired by BFI to provide these suggestions.

Two conceptual uses were presented.

One: public recreational uses such as outdoor ampitheatre, wooded walking trails, community gardens, observation tower.

Two: post development commercial recreational – a par-three golf course, mountain bike trail, fish hatchery, climbing wall, mill and/or fish hatchery.

Commissioner Sack reported that he and Commissioner Schifano toured the property. He said if someone didn’t know it was a landfill, it was a great piece of property. He said he felt the 120 acres was an asset the Town could never buy. He added that the suggested uses for the property sounded realistic and affordable to him.

Commissioner Schifano said he was not convinced that the uses that are proposed are suited to the site. He said the property features very tall hills and he is not convinced the property is viable.

Commissioner Sack said the Town’s having 120 acres at this location is a good opportunity for the Town, even if it is used simply for walking trails or left natural. The specific development plan for the property could be developed over the next 22 months. He said the significant income stream generated by the agreement is another opportunity for the Town. He added that BFI has agreed to everything the Town has requested and that this represents an opportunity the Town may never have again.

Commissioner Schifano said the Town would lose the tax base value if the land were conveyed to the Town.

Mr. Pearson said, for that reason, among others, a lease would be better for the Town.

Commissioner Sack said the alternative is to close the gates, lock it up and leave it. He said, to him, that would be a waste of a potential resource for the Town. He said he would rather see the Town obtain the property and make it something attractive for the people of the Town rather than a vacant parcel behind a locked gate.

Commissioner Womble asked if the additional 22 months of operation was the problem. Commissioner Schifano said yes, because the truck traffic generated by the site is a problem. He said even though 22 months is not a long time, and the Town could tolerate the truck traffic for a little while longer, he did not like the connotation that the Town is being bribed.

Mr. Esseck pointed out to the Board that the proposed Finisterra PUD that may be coming in on the back side of the BFI property would be enhanced by a Town park.

Motion: Commissioner Sack moved that the Town accept the proposal that BFI has presented.

Commissioner Atwell said he has heard a lot of points on both sides of the issue. He said he visited the property and was unimpressed by the series of hills. He said he wants to be absolutely certain the transaction would not be a lemon for the Town sometime down the road. He admitted that the liability component could probably be handled by the Town Attorney in a well-worded lease agreement. Still, he said, he does not trust BFI and nothing is compelling him to jump on the offer as a great deal.

Commissioner Atwell asked what would prevent BFI from selling the property to a park development company. He said he did not see the evidence that this is a quality piece of land and he leans toward leaving it to go fallow for wildlife for a while before a company in the private sector can buy it, develop it and the Town can get the tax base from it.

Seconded By: Commissioner Womble offered a second to Commissioner Sack’s motion.

In discussion, Commissioner Sack asked his fellow board members to get past looking at the site as a landfill and start looking at the potential of the property and making something positive out of it.

Commissioner Atwell maintained that he feels the development potential of the property is limited.

Commissioner Schifano said he does not feel the Town should partner with BFI for $700,000. He said he is “anti-landfill” and could not in good conscious support a landfill operation.

Action: Commissioner Sack withdrew his motion.

Mayor Holleman said he felt the facility could be as good as anybody on the Board wants to make it, or as bad. He said leaving it fallow will leave the Town with an eyesore next door to Finisterra. He said he would like to see this somehow worked out so that it is positive for the Town. He warned the Board that in the future, the Town Board may be wondering what to do with that 120 acres of land that is grown up in weeds with the fence down and is a trouble spot the Town cannot control. He urged the Board to be very thoughtful.

Commissioner Dickson said the proposed uses presented seemed to be private in nature, so he feels the Town should leave the BFI property to that possibility. He added, if a private company does not take an interest in the property, he had no problem with it remaining an open space or a wildlife refuge. He added that he, too, is “anti-landfill” and would not support the proposal.

Action: Mr. Esseck withdrew the BFI proposal. No further action.

Commissioner Atwell asked if, in the past, did BFI advise the Town it was going to convey the property upon closing to be used as a Town park regardless.

Mayor Holleman explained that discussions to that effect were held a few years ago when BFI was considering a potential expansion on 242 acres across New Hill Road from the present site. But, he said, the company did not pursue the expansion, so the park plan never came to pass.

7a. 10-Year Solid Waste Plan and Resolution 00-R-19 –

Action: Approval of the Holly Springs 10-Year Solid Waste Management Plan was granted through adoption of Resolution 00-R-19.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous

A copy of the 10-Year Solid Waste Management Plan is incorporated into these minutes as addendum pages. A copy of Resolution 00-R-19 is incorporated into these minutes as an addendum page.

7b. Resolution 00-R-17: Tax on Gross Receipts from Vehicle Rentals – Mr. Self explained that Senate Bill 1076 entitled “An Act to Repeal the Property Tax on Certain Vehicles Leased or Rented Under Retail Short-Term Leases or Rentals and to Replace the Tax Revenue with a Local Tax on Gross Receipts Derived from Retail Short-Term Leases or Rentals (the “Act”) was signed into law on May 17.

Prior to the enactment of this legislation, municipalities have had the authority to levy ad valorem property taxes on vehicles offered at retail for short-term (generally for periods of less than 365 days) lease or rental. The Act repeals that authority, now designating such vehicles as property classified and excluded from the tax base. The legislation does, however, provide a mechanism to replace the ad valorem property tax previously levied on these vehicles, Mr. Self explained.

The Act amends G.S. Chapter 160A by adding a new section, 160A-215.1, entitled “Gross receipts tax on short-term leases or rentals.” This section authorizes a municipality to levy a gross receipts tax on the gross receipts from the short-term lease or rental of vehicles at retail to the general public. Under the terms of the statute, the tax rate may not exceed one and one-half percent.

In order to implement the new gross receipts tax, a resolution authorizing an ordinance needs to be adopted, Mr. Self said. Additionally, an ordinance is being proposed that will establish the tax in Holly Springs.

Mr. Self said that the Town will contract with Wake County Revenue Office to administer the program for the Town of Holly Springs.

Action: Resolution 00-R-17 to establish an ordinance levying a tax on gross receipts derived from retail short-term lease or rental of vehicles in the Town of Holly Springs was adopted.

Motion By: Womble

Second By: Schifano

Vote: Unanimous

A copy of Resolution 00-R-17 is incorporated into these minutes as addendum pages.

7c. Ordinance 00-07: Tax on Gross Receipts from Vehicle Rentals – Mr. Self explained that Ordinance 00-07, authorized by Resolution 00-R-17, would levy a 1 1/2% tax on gross receipts derived from retail short-term lease or rental of vehicles in Holly Springs.

Action: Ordinance 00-07 was adopted on day of introduction.

Motion By: Womble

Second By: Schifano

Vote: Unanimous

A copy of Ordinance 00-07 is incorporated into these minutes as addendum pages.

7d. Ordinance 00-08: Parks and Recreation Advisory Committee –

Action: Ordinance 00-08 was adopted on day of introduction, creating a 7-member Holly Springs Parks and Recreation Advisory Committee.

Motion By: Sack

Second By: Dickson

Vote: Unanimous.

A copy of Ordinance 00-08 is incorporated into these minutes as addendum pages.

8. Consent Agenda -- All items on the Consent Agenda were approved following a motion by Commissioner Sack, a second by Commissioner Womble and a unanimous vote. The motion affected the following actions:

8a. Resolution 00-R-18 – Resolution 00-R-18 declaring intent to close a portion of Douglas Street and setting a public hearing on the question for 7:30 p.m. Tuesday, July 18, 2000 was adopted.

A copy of Resolution 00-R-18 is incorporated into these minutes as an addendum page.

6b. Rezoning Petition 00-R-05 – Action on Rezoning Petition 00-R-05 was deferred.

6c. Rezoning Petition 00-R-06 – Action on Rezoning Petition 00-R-06 was deferred.

6d. Budget Amendment, $13,200 – A budget ordinance amendment in the amount of $13,200 was adopted to receive and assign funds from the Save Our Students grant program, which funds the Town’s after-school program of the Parks and Recreation Department. The amendment was to the budget year ending June 30, 2000.

A copy of the budget ordinance amendment is incorporated into these minutes as an addendum page.

6e. Budget Amendment, $50,000 – A budget ordinance amendment in the amount of $50,000 in the Utility Fund for budget year ending June 30, 2000 was adopted to pay for the relocation of a 12-inch waterline across a developer’s lots in Avent Acres Subdivision.

A copy of the budget ordinance amendment is incorporated into these minutes as an addendum page.

In the same motion, the Board awarded the bid for the relocation work to low-bidder Bunn Olive Grading and Construction at a cost not to exceed $60,000 (bid offer plus a 10% contingency as estimated by the Director of Engineering.

The bid tabulation is as follows: Bunn Olive Grading and Construction, $55,500; Hare Pipeline Construction, $61,410; J.F. Wilkerson Construction, $56,197; Melvin Turner Backhoe, no bid submitted. Bids were opened Thursday, April 13, 2000 at the office of Cross Engineering, 15300 Weston Parkway, Suite 106, Cary, NC 27513.

The budget amendment is an amount less than the low bid. Any additional funds needed are to be pulled from existing line items in the Utility Fund.

8f. Holly Glen Phase 6 – Plans for Holly Glen Phase 6 as amended to promote street inter-connectivity, were approved as recommended by the Planning Board and staff.

9. Public Comments – At this time, a 15-minute period was provided for citizens to address the Board on any variety of issues not listed on the night’s agenda. No citizens addressed the Board.

10. Other Business -- At this time, the Board, by consensus, deliberated upon the following additional items of business:

10a. July 4 Meeting Date – Mr. Self recommended that the Board cancel its regularly-scheduled meeting of Tuesday, July 4 in light of the holiday.

Action: The Board approved a motion to cancel the regularly-scheduled July 4 meeting of the Board.

Motion By: Dickson

Second By: Sack

Vote: Unanimous

10b. Water Tower – Mr. Self reported on the painting schedule of the water tower. He advised the Board that he had received an email request from Commissioner Dickson requesting that no print be applied to the tower. In response, Commissioner Sack expressed an opposite opinion. He asked for the Board’s direction.

Commissioner Dickson maintained that adding print to the tower would attract attention to the structure.

Commissioner Sack disagreed. He said the water tower seems to fade into the landscape of the Town and that lettering on the tower would lend to the Town’s identity. He said water supply tanks are not unusual in any town and that lettering on the side would not attract any more attention than the tank’s being there. He added that he felt the Town should be proud of the accomplishment the million-gallon tank represents.

Commissioner Atwell said he preferred that the tank be left blank.

The Board deferred action and direction until July 18.

11. Manager’s Reports – Covered in Other Business.

12. Adjournment – There being no further business for the evening, the June 20, 2000 meeting of the Holly Springs Board of Commissioners was adjourned at 9:13 p.m. following a motion by Commissioner Sack, a second by Commissioner Dickson, and a unanimous vote.

Respectfully Submitted on Tuesday, Aug. 1, 2000,

______________________________

Joni Powell, CMC

Town Clerk

Addendum pages, as referenced in these minutes, follow and are a part of the official record of this meeting.