12/17/02 Meeting Minutes, Town of Holly Springs

5. Athletic Program Scholarship Donation - The AAU Hoyas Basketball Team presented to the Town’s Parks and Recreation Department a donation of $522.24. They would like the money to be used for scholarships for youth athletic programs registration fees.

Mayor Sears presented the AAU Basketball Team with a proclamation in appreciation.

6a. Public Hearing: Annexation Petition A02-09 - Ms. Bobber reported that the Town Board continued this public hearing from the December 3, 2002 Board meeting. She explained that the Town had received a petition from Bryan Properties representing property owner Doris Olive for the voluntary annexation of approximately 331 acres of land located along Optimist Farm Road and Pierce Olive Road.

Ms. Bobber explained that a neighboring property owner, Ms. Betsy Olive, contends that she is the owner of road right of way that was included in the original legal description. Ms. Bobber added that the Town has received from the petitioner a revised legal description and Mylar maps realigning the annexation request to eliminate any road right of way on Optimist Farm Road and Pierce Olive Road, thus addressing Ms. Betsy Olive’s concerns.

With that explanation completed, Mayor Sears resumed the public hearing to accept further input. The following comments were recorded:

Eric Spence, attorney representing property owner – Mr. Spence explained that he represents the property owner, Ms. Doris Olive. He said he offered his assistance in the case that his knowledge of the property could assist if there are any remaining issues.

Betsy Olive – Adjacent property owner Ms. Betsy Olive addressed the Board. She said it appears that the legal description seems to be correct but that she has not had a chance to review it thoroughly.

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

The mayor recommended that action be deferred until Jan. 7, 2003 to give Ms. Betsy Olive adequate time to review the updated legal description and associated map for accuracy.

Action: The Board approved a motion to defer action on Annexation Ordinance A02-09 until Jan. 7, 2003.

Motion By: VanFossen

Second By: Dickson

Vote: Unanimous

6b. Public Hearing: Ordinance 02-16, Parking Lots - Ms. Bobber explained to the Board that the Town currently is in the process of reviewing and preparing the final drawings for the public parking lot facility that will be located between Mims Towne Square and Holly Springs Town Hall. The update and improvements to the parking area were agreed to as a part of the approval of the Mim’s Towne Square zoning permit.

Upon reviewing the final plans against the new UDO for internal information, it was found that the UDO did not clearly address public parking lots in the Town Village District, Ms. Bobber said. Therefore, the following amendments are being proposed:

‑ Section 3.03, A. Permitted Uses, 1. Primary Uses, h. Public Facilities: add Public Parking Lot;

‑ Section 3.03, B. Development Standards, 2., a., (3) amend as follows: parking areas and interior access drives shall not be located in front of the maximum setback, except for Public Parking Lots.

‑ Section 11.02 Definitions:

Add parking lot, public: A parking lot owned or managed by, the government of the United States, State of North Carolina, County of Wake, or the Town of Holly Springs available to the public with or without payment of a fee.

The Planning Board has reviewed the ordinance that would amend the UDO and recommends approval.

With that explanation completed, Mayor Sears opened the public hearing to accept input. The following comments were recorded: None.

There being no comments, the public hearing was closed.

Action: The Board approved a motion to adopt Ordinance 02-16 to amend the Town of Holly Springs Unified Development Ordinance (02-UDO-02), Section 3.03, A. Permitted Uses, 1. Primary Uses, h. Public Facilities; Section 3.03, B. Development Standards, 2., a., (3); and Section 11.02 Definitions to provide clarification regarding the regulations for Public Parking Lots.

Motion By: Dickson

Second By: VanFossen

Vote: Unanimous

A copy of Ordinance 02-16 is incorporated into these minutes as addendum pages.

6c. Public Hearing: BFI - Mr. Dean explained to the Board that Browning Ferris Industries (BFI) has requested that the Town consider amending its existing franchise agreement in order to allow the operation of Holly Springs Disposal construction and demolition landfill through December 31, 2005 rather than April 30, 2003.

Mr. Dean said the important aspects of the proposal are as follows:

* Host Fees ‑ BFI proposes to pay the Town $2.25 per ton for the duration of the extended franchise period. Our current franchise escalated from $2/ton through May 15, 2002; to $2.50/ton through December 31, 2002; and then to $3.50/ton for the remainder of the franchise (April 30, 2003). BFI estimates a target of 8,000 tons per month, which would be approximately $567,000 over 30 months at a straight $2.25 per ton.

* Yard Waste Disposal for Town ‑ BFI would take up to 600 tons/year in yard trash and waste from the Town at no charge, with a 15% increase per year. This would represent a cost savings to the Town of approximately $20,000 per year for the next two and half years. For anything above 600 tons, the Town would be charged $30.80 per ton. Currently, the Town disposes of approximately 2,349 tons of yard waste per year.

* C&D Disposal for the Town ‑ BFI would accept all construction and demolition debris at a cost of $12/ton, which is the amount the Town currently pays Waste Industries.

Mr. Dean noted that if the Board were so inclined as to amend its current franchise agreement with BFI, the process would require two public hearings and two successful adoptions of the amended franchise ordinance and agreement.

Mr. Dean noted that the Town Attorney had suggested that the Town might want to consider approaching BFI regarding the potential post-closure ownership of the property.

Mr. Dean covered some details regarding the amounts of fees that have been thus far collected under the existing franchise agreement. He reported that $336,444.60 was received in FY 2001-02 and $25,521.64 was collected in the first quarter of FY 2002-03.

At this time, 7:35 p.m., Commissioner Atwell arrived.

With that explanation completed, Mayor Sears opened the public hearing to accept input. The following comments were recorded:

Rick Prather, BFI – Mr. Prather spoke in favor of the franchise ordinance amendment. He said BFI is requesting an extension in time but not in additional volume or footprint of the current facility. He said BFI is attempting to take in the original amount of debris anticipated by the current franchise agreement. The Holly Springs Disposal site has not filled as expected because of the opening of two other local construction and demolition debris landfills as well some other economic factors. He said the company is requesting an extension of time to the existing agreement so that it can have a chance to use the fillable land as it had intended.

Mr. Prather said that the opening of the Hwy. 55 Bypass last week already has resulted in a dramatic decrease in truck traffic going into Holly Springs Disposal by way of downtown.

He also said that BFI would most likely welcome discussions of how to make its property useful to the community following its eventual closure.

He added that there will be an open house at Holly Springs Disposal from 1 to 3 p.m. Jan. 4, 2003 for anyone who is interested in this issue.

Walt Hudyma, 104 Merrimont Way – Mr. Hudyma spoke in opposition of the proposed franchise ordinance amendment. He asked a few questions but said he still feels that he wants to resist any more landfills from coming to Holly Springs.

There being no comments, the public hearing was closed.

Commissioner VanFossen asked that the Finance Office provide a spreadsheet featuring the amount of funds received as well as how much was saved through the Town’s existing agreement with BFI.

Action: Mayor Sears completed a first reading of the ordinance: “An Ordinance to amend a nonexclusive Franchise to BFI Waste Systems of North America, Inc., a Delaware corporation (hereinafter referred to as the “Grantee”) to own, operate and maintain a construction and demolition landfill (the “Landfill”), as defined herein, setting forth conditions accompanying the grant of Franchise, providing for the regulation and use of the Landfill, and defining the term and the effective date thereof,” and the Board approved a motion to approve the first reading of Ordinance 02-17, the proposed ordinance to amend the franchise agreement and grant of franchise:

In discussion, Commissioner Schifano said he felt that, with a very recent federal court ruling that paved the way for minority populations to sue local governments over environmental

racism, the Town Board should consider how its decision might place the Town Board both collectively and individually at risk of being sued.

He said he felt the return in revenue and cost savings to the Town was not adequate reason for him to vote for approval of the agreement amendment.

Commissioner Atwell said he agreed that Commissioner Schifano’s position should be considered by the Board. He added, too, that he understands that BFI is simply requesting for an extension of time.

Motion By: Tedder

Second By: Dickson

Vote: Motion carried 4-1. Commissioners Tedder, VanFossen, Atwell and Dickson voted for. Commissioner Schifano voted against.

A copy of Ordinance 02-17 will be incorporated into the minutes of the Board’s January 7, 2003 regular meeting, following a successful second reading, if one is rendered.

7. NC 55 and Holly Springs Intersection Projection Update - Mrs. Thompson presented to the Board an updated schedule and funding information for the NC 55 and Holly Springs Road intersection improvements project.

Action: No action.

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

8a. Budget Amendment $35,000 -The board adopted a budget amendment to the FY 2002-03 budget in the amount of $35,000 to move street reserve funds for construction of a gravel extension to Thomas Mill Road. A copy of the budget amendment is incorporated into these minutes as an addendum page.

8b. Bass Lake Retreat Center Conditions - The Board ratified Bass Lake Retreat Center site plan Dec. 3, 2002 condition of approval that the Town will not be widening Bass Lake Road at this time.

8c. Budget Amendment $870 - A budget amendment to the FY 2002-2003 budget in the amount of $870 to cover insured damage to a water distribution truck was adopted. A copy of the budget amendment is incorporated into these minutes as an addendum page.

9. Board of Adjustment and Planning Board Appointments - Mr. Bobber explained that the Board delayed action on this item at its Dec. 3, 2002 meeting to allow time for information on the possibility of setting term limits to be collected.

Ms. Bobber reported that the Planning and Zoning Department has investigated what other towns in Wake County do in this regard and has determined that towns generally limit their board members to two consecutive terms. Based on the Board's direction, the Planning and Zoning Department will formulate a UDO amendment for consideration by the Technical Review Committee. If the TRC recommends to send the amendment forward through the process, it would come before the Town Board on Feb. 18, 2003 for public hearing and consideration.

Ms. Bobber said that in the meantime, the Board can keep the proposed change in mind when making the appointments to the Planning Board and Board of Adjustments.

Ms. Bobber had included in agenda packets a worksheet/ballot for Board Members to use in making their appointments, which had been requested by the Board on Dec. 3.

In accordance with G.S. 143-318.13(b), ballots are to be signed and provided to the Town Clerk, and the minutes are to show the vote of each member voting. Ballots would be available for public inspection immediately following the meeting and until the minutes are approved.

In a discussion of term limits, the Board generally agreed that setting formal term limits is a positive practice; however, there was also discussion of how annual appointments at the Board’s discretion serves as a natural limit to terms.

Action #1: The Board approved a motion to appoint the following three (3) in-town members to the Planning Board to serve terms of Jan. 1, 2003 through Dec. 31, 2005: Matt Johnson, 317 Springside Drive; Michael Taylor, 152 Gremar Drive; and Joseph Fanjoy, 109 Fairground Road.

Motion By: Dickson

Second By: Schifano

Vote: Unanimous

A copy of the signed written ballots are incorporated into these minutes as addendum pages.

Action #2: The Board directed staff to explore the options of setting formal term limits

for members appointed to the Board of Adjustment and the Planning Board.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous

Action #3: The Board approved a motion to appoint Waunell Williams-Smith, 420 Lee Street, to the Board of Adjustment as an in-town member for the term of Jan. 1, 2003 through Dec. 31, 2005; and to recommend that Wake County Board of Commissioners appoint Wallace Ponder, 1225 Happy Hunting Hills Drive as an ETJ member for the term of Jan. 1, 2003 through Dec. 31, 2005.

Motion By: Dickson

Second By: Atwell

Vote: Unanimous

10a. Audit Report - Mr. Holland introduced Mr. Chris Abbott of Duke & Abbott, CPA’s to give the audit report for the Town’s FY 2001-2002 finances. Mr. Abbott reported that the Town’s finances were in a very strong condition. He outlined for the Town Board some of the more significant findings of his report:

Mr. Abbott noted only one material instance of noncompliance: that due to budget amendments’ being submitted and approved after June 30, 2002, the Town of Holly Springs expended funds in excess of appropriations in certain budgeted items. He added that staff had addressed the concern.

As always, the comment that the Town staff is not adequate in size to allow for adequate segregation of duties, was included in the report.

The firm noted one immaterial instance of noncompliance: that the annual Powell Bill Expenditures Report was not completed and filed until Aug. 5, 2002 instead of Aug. 1 as required by statute.

Action: None

A copy of the Management Letter is incorporated into these minutes as addendum pages, and the financial statements are on file in the Finance Office.

10b. Telamon Corporation (Head Start) Lease Renewal - Mr. Bradley explained to the Board that Telamon Corporation manages the Head Start program located at the W.E. Hunt Community Center. Telamon leases classrooms and the cafeteria from the Town. Their lease expires the end of Dec. 2002, and the company has requested to renew its lease for the year Jan. 1, 2003 through Dec. 31, 2003.

In discussion, it was suggested that Telamon be put on notice that it should begin looking for new quarters since space in the Hunt Center is needed for Town Parks and Recreation programs.

Action: The Board approved a motion to renew an agreement with Telamon Corporation (Head Start) to lease the cafeteria and current classrooms being used at the W. E. Hunt Community Center for the six months from January 2003 to June 30, 2003.

Motion By: Atwell

Second By: Tedder

Vote: Unanimous

A copy of the Telamon Corporation lease renewal agreement for six months is incorporated into these minutes as addendum pages.

10c. Private to Public Road Maintenance Policy Statement P-18 - Mrs. Thompson explained to the Board that as the Town continues to annex property into the city limits, providing water, sewer, police, fire protection and garbage collection services, the citizens are requesting that the Town also take over maintenance of their private roads.

Currently, the Town does not automatically take over road maintenance in these annexed areas, Mrs. Thompson explained. In many cases, she said, these subdivision roads are privately owned either by the developer or by the property owners to the center line of the road, and are constructed of only a gravel surface, with minimal drainage infrastructure and minimal shoulder widths.

The Town is continuously getting more requests to maintain the roads in the areas that are annexed. Mrs. Thompson explained that if the Board chooses to add these roads to the Town system, the Town needs to take a few items into account. In order to financially protect the Town, the Board needs to define a process and compile a list of minimum requirements that must be in place before the Town will accept maintenance of these subdivision roads, she said.

Mrs. Thompson requested that the Board consider adoption of proposed Policy Statement P-18 that describes the conditions of and procedure of accepting private roads for Town maintenance.

Commissioners suggested adding reference in the policy to address utilities and verbiage giving the Board “in their sole discretion” authority.

Action: The Board approved a motion to adopt Policy Statement P-18 Acceptance of Private Road for Town Maintenance, as amended, effective December 17, 2002.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous

A copy of Policy Statement P-18 as amended is incorporated into these minutes as addendum pages.

10d. Water Storage Tank Change Orders, Budget Amendment - Mrs. Thompson explained to the Board that the following change orders need Board approval to continue to move forward on the Avent Ferry 1 MGD water storage tank. Mrs. Thompson outlined the change orders.

Change Order #1: CB&I was awarded the contract to build the1 MGD tank last year. After several meetings between the Water Quality Department, Engineering Department, and the design consultant for the telemetry that will connect all three tanks, it is evident that the following items will be necessary to include with the Avent Ferry tank construction. These items only became evident as the existing SCADA project started to progress and provide information about how the Towns’ tanks, the Raleigh Booster Station, and the Harnett County Booster Station communicate with one another. The following requested change order items are as follows:

*Revise 12" inlet/outlet pipe to 16" inlet/outlet pipe (this would maximize the storage

capacity and turn-over)

*Add 4" drain line from concrete floor (to drain any water that may leak and cause

damage)

*Add mag flow meter in vault to 16" main (this would enable Water Quality to take water

samples and measure bi‑directional flow in and out of the tank)

*Delete valve vault on drawings and level indicator (manhole would be used in place of the valve vault, for a credit of $17,000.00)

The additional line work and credit for deleting the vault results in a change order in the amount of $45,747.00.

Change Order #2: Another component to tracking the activity between the tanks and maximizing the storage capacity of the tank is to incorporate the usage of radio telemetry to connect the three tanks and two booster stations. Telemetry gives the ability to control pumps, monitor flow rates, generate alarms, position valves, change speed settings, and even gather data required for engineering water system expansions.

The Town currently has this technology applied to all of the existing systems. Therefore to complete the loop with the addition of the 1 MGD tank, the Town will need to install a remote terminal unit and appurtenances. At the time of the existing contract, the Avent Ferry Road tank design was not complete, therefore this item falls under a change order. Staff has obtained an estimate that woulud include this upgrade from the contractor and from an independent manufacturer. The consultant recommends that the least expensive route is to go with the independent manufacturer, with a total of $14,838.00.

Change Order #3: The 1 MGD tank is approximately 135 feet tall and will be able to be seen from the NC 55 bypass and areas east of Avent Ferry Road. The cost to get the Town logo on one side is $9,975.00 and for both sides, the cost would be $15,975.00. The new Town logo was not yet in production prior to the original contract.

Mrs. Thompson said that the standard fence design will be installed along the tank site, and the landscaping will be handled in-house by the Parks and Recreation Department. Also, the Engineering Department is looking at options to install a bracket at the top of the tank that would hold an antenna in which space could be sold to provide revenue for the Town.

In discussion, Commissioner Schifano questioned the need and expense of painting the Town’s logo on the tower.

Motion 1: A motion was made that the Board approve Change Orders #1 and #2,

but not #3 regarding the painting of the Town logo on the tower.

Motion By: Schifano

Second By: Dickson

Vote: The motion did not carry following a 2-3 vote. Commissioners Schifano and Dickson voted for the motion. Commissioners Tedder, VanFossen and Atwell voted against.

Motion 2: A motion was made by Commissioner VanFossen that the Board approve Change Orders #1, #2 and #3 with the Town’s logo to be applied to both sides of the water tower as described.

The motion died for lack of a second.

Action: The Board approved a motion to approve Change Order #1 in the amount of $45,747; Change Order #2 in the amount of $14,838; and Change Order #3 in the amount of $9,975 for the painting of only one side of the tank.

Motion By: VanFossen

Second By: Tedder

Vote: The motion carried 3-2. Commissioners Tedder, VanFossen and Atwell voted for. Commissioners Schifano and Dickson voted against.

10e. Pump Maintenance Building Bids and Funding - Mr. Simmons reported to the Board that the Town received informal bids for construction of a 60'x 60' pump maintenance building (PMB) at the Holly Springs Wastewater Treatment facility. Currently, the onsite facility maintenance of pumps and other equipment is being performed either within an aging trailer unit located in a low lying area along Utley Creek, or outside by service personnel. Once the PMB construction is completed, the old trailer unit would be removed from the wastewater treatment plant property.

Mr. Simmons said the bid results for the Pump Maintenance Building are as follows:

Commercial Design Construction……………………..$100,625

Horizon Construction………………………………….. 129,930

Sanford Metal Buildings……………………………….. 107,367

The proposed site for the PMB is on the right as one approaches the entrance of the treatment plant property, on a portion of the 25.57 acre adjacent tract purchased by the Town in December 2001. The Planning Board recommends approval of the PMB site plan as submitted. Also, staff recommends award of the bid for construction, excluding site work, to Commercial Design Construction in the amount of $100,625. Staff also recommends that funding for this project be authorized with a budget amendment in an appropriate amount pulling funds from bond funds, interest income and sales tax refunds.

Action: The Board approved a motion to award construction of the Pump Maintenance Building, excluding site work, to Commercial Design Construction in the amount of $100,625 and to authorize appropriate funding from bond funds, interest income and sales tax refunds.

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

Action: The Board then approved a motion to vacate the preceding action.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous.

Action: The Board approved a motion to excuse Commissioner VanFossen from the meeting, due to his financial interest in this project as its architect.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous

Action: The Board then approved a motion to award construction of the Pump Maintenance Building, excluding site work, to Commercial Design Construction in the amount of $100,625 and to authorize appropriate funding from bond funds, interest income and sales tax refunds.

Motion By: Schifano

Second By: Atwell

Vote: Unanimous

Action: The Board approved a motion to readmit Commissioner VanFossen into the business meeting.

Motion By: Atwell

Second By: Schifano

Vote: Unanimous.

10f. Sprint Easement for Earp Street and NC 55 - Mrs. Thompson said that Sprint is currently working to relocate all aerial lines along NC 55 to underground facilities. This request was made from Town staff for the Town Hall construction project. These lines were to be down by late November. However, it has now been brought to the Town's attention by the easement acquisition agent that an easement and a signature on documents are necessary in order to move forward and continue relocating lines along NC 55. Engineering staff has asked for a detail of what utilities are being located on that corner.

Mrs. Thompson advised the Board of some amendments in verbiage that were made to the original agreement after review of the Town Attorney and Sprint.

Action: The Board approved a motion to direct Sprint to consider relocating its utility structure at the rear of the Bradley property where the Town is believed to have an existing easement, or at some other feasible location before considering allowing the easement at the location initially requested by Sprint.

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

11. Public Comment – At this time, an opportunity was provided for members of the audience who had registered to speak to address the Board on any variety of topics not listed on the night’s agenda. The following citizens were heard: None.

12. Other Business –

12a. FEMA Reimbursements – Mr. Holland and Mr. McNeil reported to the Board that

the Town had received seven quotes from contractors for collection of winter storm debris. They recommended hiring American Earth Works for the emergency work with funding expected to be 75% from FEMA and 25% from the State.

Action: The Board approved a motion to ratify a contract with American Earth Works for the removal, collection and disposal of winter storm debris.

Motion By: Tedder

Second By: VanFossen

Vote: Unanimous

A copy of the contract is incorporated into these minutes as addendum pages.

12b. Budget Amendment – A budget amendment that had been prepared in advance of the meeting to cover the Avent Ferry Road water tower project change orders in the amount of $76,560 was amended.

With the successful motion to paint only one side of the water tower, the budget amendment was reduced to $70,560. Staff requested that the Board adopt the amended budget amendment.

Action: The Board approved a motion to adopt a budget amendment in the amount of $70,560 to cover costs of the Avent Ferry Road water tower contract change orders.

Motion By: Tedder

Second By: Atwell

Vote: Unanimous

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

13. Manager’s Reports – Mr. Dean reported that the Board’s winter retreat is being planned for Jan. 31 through Feb. 2 in New Bern.

14. Closed Session - The Board approved a motion to enter Closed Session, pursuant to N.C.G.S. 143-318.11(a)(3) to consult with the Town Attorney regarding:

1. Settlement of the Holly Springs vs. Lois McDonald condemnation case.

2. Next steps in the Holly Springs Otis Raines water connection case.

3. Status of the landfill appeal.

4. Settlement of the Holly Springs vs. Walker condemnation case.

5. Collection of attorney’s fees award in Holly Springs vs. Don Davis.

6. Discuss legal implications of proposed annexations and pending NPDES permit

application.

7. Discuss liability exposure as mentioned during BFI landfill franchise public hearing.

General Account of Closed Session – Dec. 17, 2003

Mr. Pearson reported that the Lois McDonald condemnation case has been settled.

He reported that Mr. Raines has not responded to all Town efforts. He suggested that the Town hook him up to water and cap his well against his wishes and not pursue monetary damages.

He reported on the landfill appeal.

He requested that the Board authorize settlement with the Walkers for fair market value of the condemned property.

Mr. Davis has asked that the Town forgive a portion of his attorney fees. Mr. Pearson suggested a lien against the property as a possibility. The Board directed that the Town forgive the remaining attorney fees.

Mr. Dean reported to the Board regarding Cary communications with Holly Springs and

the potential for opposition to the Town’s pending wastewater treatment plant expansion permit.

– End General Account

Action: The Board approved a motion to reenter Open Session.

Motion By: Atwell

Second By: Dickson

Vote: Unanimous

15. Adjournment – There being no further business for the evening, the Dec. 17, 2002 meeting of the Holly Springs Board of Commissioners was adjourned following a motion by Commissioner Atwell, a second by Commissioner Dickson and a unanimous vote.

Respectfully Submitted on Tuesday, January 21, 2003.

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Joni Powell, CMC, Town Clerk

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