12/2/03 Meeting Minutes, Town of Holly Springs

The Holly Springs Town Board of Commissioners met in regular session on Tuesday, Dec. 2, 2003 in the Council Chambers of Holly Springs Town Hall, 128 S. Main Street. Mayor Dick Sears presided, calling the meeting to order at 7 p.m. A quorum was established as the mayor and four board members were present as the meeting opened. At this time, there is a vacancy on the Board of Commissioners.

Board Members Present: Commissioners Mike Taylor, Chet VanFossen, Peter Atwell, Hank Dickson and Mayor Sears.

Board Members Absent: None.

Staff Members Present: Carl Dean, town manager; Charles Simmons, assistant town manager; John Schifano, town attorney; Joni Powell, town clerk, (recording the minutes); Linda R. Harper, deputy town clerk; Tamara Ward, public information officer; Drew Holland, finance director; Larry Boykin, assistant finance director; Len Bradley, director of parks and recreation; Stephanie L. Sudano, director of engineering; Kendra Thompson, senior engineer; Martha Daniel Hobbs, town planner; Jennifer Mizelle, economic director; Ricky Blackmon, code enforcement director; Cecil Parker, chief of public safety; and Gina Bobber, planning director.

Others Present: Commissioner-elect Parrish Womble. North Carolina Secretary of State Elaine Marshall arrived shortly after the meeting opened.

2 and 3. The pledge of allegiance was recited, and the meeting opened with an invocation by Rev. Otis Byrd, pastor of the First Baptist Church of Holly Springs.

4. Agenda Adjustment: The Dec. 2, 2003 meeting agenda was adopted with changes, if any, as listed below.

Motion By: Dickson

Second By: Atwell

Vote: Unanimous.

Items Added to the Agenda: None.

Agenda Items Removed: None.

Other Changes: Item 8e., consider approval of amendment of developer agreement with Cedar Queen Development (Scot’s Laurel) regarding sewer easements, was moved to Closed Session for discussion.

5a. Fires Station Project Presentation - Mr. Brian Simpson of Little Diversified Architectural Services presented a brief presentation and discussed some of the preliminary plans for the new Holly Springs Road Fire Station project. The presentation defined in more specific conceptual terms what features the new fire station facility will possess, and how this project relates to the adjacent properties.

No Action

5b. Holly Springs Chamber of Commerce - Mr. Tim Sack, representing the Holly Springs Chamber of Commerce, requested that the Town purchase 6,000 copies of the 2004 Chamber Membership Directory. Mr. Sack said the directory, which will be published in January, will contain the telephone number listing of each phone customer in Holly Springs, which should make the directory a well‑used, well‑read publication.

Mr. Dean said the cost of the directories would be $18,000. There are not funds budgeted for this purpose in the FY 2003‑04 budget; however, the Town Board budgeted $63,500 for special program contributions and $15,750 is left. He said the Town Board authorized a $35,000 grant to the Chamber of Commerce this year, which has been paid from this account.

Mr. Dean said the expenditure could be justified both from a public service and an economic development standpoint since the directories would provide a combined phone book of both BellSouth and Sprint phone customers and because it would encourage residents to use local businesses.

Action: The Board approved a motion to authorize the Town to purchase 6,000 copies of the 2004 chamber membership directory from the Holly Springs Chamber of Commerce in the amount of $18,000 and to use funds from account 11-414-51 and that any remaining funds needed be identified and moved to this account.

Motion By: Atwell

Second By: VanFossen

Vote: Unanimous

6. 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:

6a. 2004 Calendar of Regular Meetings -The Board approved the calendar of regular board meetings during calender year 2004. A copy of the 2004 Town Board regular meeting calendar is incorporated into these minutes as an addendum page.

6b. Budget Amendment, $10,000 - The Board adopted a budget amendment to the FY 2003‑04 budget in the amount of $10,000 to cover the cost of additional work authorized on the Sunset Ridge drainage study. A copy of the budget amendment are incorporated into these minutes as an addendum page.

6c. Resolution 03-29, setting public hearing - The Board adopted Resolution 03-29 directing the Town Clerk to investigate the sufficiency of annexation petition A03-03 and to set the public hearing on the question of annexation for December 16, 2003. A copy of Resolution 03-29 is incorporated into these minutes as addendum pages.

6d. Minutes - The minutes of the Board’s regular meeting held on Nov. 18, 2003 were approved.

7a. Oaths of Office – Secretary Marshall administered the oath of office to new and returning Commissioners Parrish Womble, Mike Taylor and Peter Atwell.

At this time, Mayor Sears called for a short recess so that photos could be taken.

At 7:55 p.m., the meeting reconvened, and a quorum was reestablished including Mayor Sears and a full five-member board consisting of Commissioners Womble, Taylor, VanFossen, Atwell and Dickson.

7b. Mayor Pro Tem – The Board approved a motion to reelect by acclamation Commissioner Dickson as mayor pro tem.

Motion By: VanFossen

Second By: Taylor

Vote: Unanimous

7c. Appointments to Committees and Commissions - Mayor Sears said that currently Holly Springs has representatives who serve on a variety of agencies and boards. He submitted a list of potential nominations for those boards as his recommendations.

He said if any board members had any suggestions for changes to his recommendations, he would be glad to hear them.

Action: The Town Board approved a motion to appoint members as noted in the Mayor’s recommendation, which is incorporated into these minutes as addendum pages.

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

8a. Fire Station Project Grading Bid Award - Mr. Simmons said that the informal sealed bids were advertised and opened on Tuesday, November 25, 2003, with seven prospective contractors’ submitting bid proposals for grading the future site of the Holly Springs Road fire station. He said the bids were advertised requesting a base bid for the entire scope of work and an alternate bid providing a credit if removal of erosion control devices at project completion were to be eliminated from the contract.

Mr. Simmons said the bid were as follows: Awsley Grading Inc. with a base bid of $47,439.28 and a $1,850 credit if the company does not have to return to the site at the end of the project to remove erosion control devices; Curtis L. Jones Inc. with a $61,250 base bid and a $1,500 credit; David Fox Grading Company with a base bid of $78,550 and a $4,000 credit; Hy‑Tech Construction Inc. with a base bid of $120,000 and a $3,000 credit; Kiddco Inc. with a $52,223 base bid and $0 credit; Montague Development LLC with a base bid of $68,007.64 and a $3,000 credit; and W. E. Garrison Co. Inc. with a base bid of $51,670 and a $4,000 credit.

Mr. Simmons said that in the event the references are favorable, staff recommends to award the grading bid to Awsley Grading, Inc. as being the low bidder for the base bid amount of $47,439.28 and the alternate for a credit of $1,850 for the Holly Springs Road Fire Station project.

Action: The Town Board approved a motion to award the grading bid to Awsley Grading, Inc. in the amount of $47,439.28 and the alternate credit of $1,850 for the Holly Springs Road Fire Station project.

Motion By: Atwell

Second By: Dickson

Vote: Unanimous

A copy of the Awsley Grading Inc. Contract is incorporated into these minutes as addendum pages.

8b. Four Oaks & Trust Company Contract - Mr. Holland explained that the Town issued a request for proprosals for primary banking services, and seven banks responded.

Mr. Boykin explained that proposals received were for service to the Town for the three-year period beginning January 1, 2004 through December 31, 2006, with the option to renew for an additional two-year period ending December 31, 2008. Mr. Boykin said the town received sevens (7) bids as follows: Crescent State Bank, Fidelity Bank, Four Oaks, Wachovia, RBC, CCB, and BB&T. All financial institutions meet the criteria for municipal banking services, he said.

Mr. Boykin said that after reviewing the seven proposals, staff recommends to contract with Four Oaks Bank & Trust Company for the Town’s primary banking services for three-year period with an option of renewal for an additional two-years. He said the Four Oaks Bank basically offered free banking services and that he was amazed at the proposal.

Action: The Board approved a motion to authorize the finance director to enter a contract on behalf of the Town with Four Oaks & Trust Company for the Town’s primary banking services for a three-year period beginning January 1, 2004 through December 31, 2006, with the option to renew for an additional two-year period ending December 31, 2008..

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

A copy of the Four Oaks & Trust Company Contract is incorporated into these minutes as addendum pages.

8c. Community Center Programming Project - Mr. Dean said that in review of the community center programming, the Town contacted Heery International to provide the town with a proposal for conducting a needs assessment for recreation facilities.

He said the company would look at all of the town’s recreational needs and determine not only a potential design for a community center but provide advice on how best the Town could use its existing facilities, if that appears to be feasible.

Mr. Dean said the company would break down the components into programming, feasibility studies and cost analysis. Heery has a strong background in athletic facilities and impressed the architectural committee with their presentation on the fire station project, Mr. Dean said. He added that the proposed fee of $18,500 has been adjusted and is well within the $50,000 budget set aside for this phase of the project.

Commissioner Atwell asked if the company was aware that the Town envisions a senior center/cultural arts center in conjunction with the library project and a separate community center.

Joe Wynn of Heery International addressed the Board responding that his team is aware of basic needs and ideas of the town board and that the needs assessment and surveying would result in more solid recommendations.

Action: The Board approved a motion to enter a professional services agreement with Heery International in the amount of $18,500 for the community center programming.

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

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

8d. Stone Tract (Scott’s Laurel) Developer Agreement Amendment - Ms. Sudano explained that at the last Town Board meeting, the Board approved assignment of the aforementioned developer agreement to Don Galloway Homes, LLC dba Sunstar Communities, Inc., subject to a closing on the property with the original developer (Cedar Queen Development LLC).

Ms. Sudano said that in the lapse of time between the developer’s requesting this assignment and the board meeting to consider the assignment, the Letter of Credit associated with the developer agreement (for the purpose of guaranteeing water and sewer capacity for the project) became due for annual renewal.

She said the Letter of Credit expires on December 10, 2003. She explained that the developer has requested that the Letter of Credit securing water and sewer capacity for the project be removed from the developer agreement, in accordance with the term of the developer agreement that states “…by mutual consent the Letter of Credit is (be) released.” She said coincident with the Letter of Credit’s being released, the agreement would need to be modified by removing the entire “Reservation of Water and Sewer Capacity” section of the developer agreement.

Ms. Sudano said that the developer is requesting this release as their construction drawings are close to being approved, and sewer and water capacity is secured with the approval of construction drawings including associated required water and sewer permits.

Action: The Board approved a motion to amend the Stone Tract (Scott’s Laurel) Developer Agreement by removing the section titled, “Reservation of Water and Sewer Capacity.”

Motion By: Taylor

Second By: Atwell

Vote: Unanimous

A copy of the amended Stone Tract (Scott’s Laurel) Developers agreement is incorporated into these minutes as addendum pages.

8e. Stone Tract (Scott’s Laurel) Development easement Acquisition - This item was moved to agenda item 12. Closed Session, pursuant to G.S. 143‑318.11(a)(3), to discuss matters with the town attorney.

8f. Regional Wastewater Study and Current Wastewater Systems Update - Ms. Sudano explained that the Town is participating in a Regional Wastewater Study for the development of a plan to provide long‑range sewer capacity for several communities in southern and western Wake County.

Ms. Sudano explained that phase 1 of the study has been completed, resulting in the selection of four alternative plans to provide sewer for all participating parties. She said that phase 2 of the study, which includes detailed financial and funding analyses of each option, began in October, 2003 and will be completed in June, 2004.

Ms. Sudano said the goal of the regional group is to embark upon planning and design for a regional project immediately after completion of phase 2 of the study. She said this would be essential for the regional coalition to have needed sewer capacity on‑line before 2011 (the target date). Ms. Sudano explained that the Technical Coordinating Committee, which is made up of engineers from each of the agencies that have been overseeing consultants’ work on this project, under the leadership of the Project Guidance Team, which is made up of Town Managers for each of the entities, recently evaluated the proposed schedule for this project.

Ms. Sudano said when the schedule was evaluated, there are certain essential planning and environmental tasks that need to be started before the 9‑month period of phase 2 ends. These tasks are not included in the Phase 2 fee, but the regional task force recommends undertaking them as early as possible, she said. Ms. Sudano said the request before the Board tonight is a request for funding those additional recommended services ‑ to be undertaken by the committee’s recommended consultant team.

Ms. Sudano reviewed with the Board a description of the additional services that are recommended by the technical team and staff and with an explanation of why the Town of Holly Springs should consider participating in and funding the tasks.

Ms. Sudano said that what is included in the “additional services” are described in great detail in the “Scope of Work ‑ Additional Work Activities – Western Wake County Regional Wastewater Treatment Studies Project.” She said the scope of services was developed by the Technical Coordinating Committee for the project, designed to outline those tasks that were not included in Phase 2 of the regional study but that are necessary to begin now in order to achieve the 2011 delivery date of new sewer capacity for the regional partners. She said a summary of those services included are as follows:

Task 1: conducting initial site investigations for the possible plants and associated major infrastructure sites for each of the final regional plan options;

Task 2: pursuing studies and modeling in an effort to gain the State’s approval of a Jordan Lake wastewater effluent discharge (in lieu of a Cape Fear discharge) – the regional group decided to pursue this as it could potentially save much money on the options that show a discharge to the Cape Fear River;

Task 3: conducting mussel surveys of the Middle Creek and Swift Creek basins included in the jurisdictions of the regional partners – this is a task that the Town has been requested to undertake on two previous projects (Utley Creek 0.9 mgd expansion, and the Fair Share project), and is an inevitable task that the Town will have to undertake in the future to eliminate the extreme requirements that the State is trying to levy (buffers, stormwater control, sewer installation restrictions) in these areas because of the (possible) existence of suitable habitat and the finding of a relic shell in Johnston County some 10 years ago;

Task 4: preparation of a SCIMP (Secondary and Cumulative Impact Management Plan) for Holly Springs – this work will include collection of information from the Town, coordination with the State in preparing an individual document with the Town – this work is comprehensive and, along with the mussel survey work described above, compiles the work that will be of most benefit to the Town for future projects including the Harnett/Fuquay project if that comes to fruition within the estimated 7-year time frame during which the SCIMP would be considered “active for projects” by the State. High level administrative staff with the State has publicly expressed their interest.

Task 5: assist the regional coalition with drafting an interlocal agreement or agreements that will permit the towns to move forward with implementation of the preferred wastewater alternative, whichever that may be – the goal is to have the discussions and investigations necessary during the next 9-month period to be ready to enter into such interlocal or regional agreements, where necessary, at the end of that time.

Commissioner VanFossen asked if the dollar amount is Holly Springs’ pro-rata share.

Mrs. Sudano explained that the fee is pro rata, based on the amount of capacity being sought.

Action: The Board approved a motion to participate in the professional services design fees and adopted budget amendments to the FY 2003-04 budget in the amount of $97,500 for the additional services for the Regional Wastewater Study project.

Motion By: VanFossen

Second By: Atwell

Vote: Unanimous

Copies of the budget amendments are incorporated into these minutes as addendum pages.

8g. Sunset Oaks Phases 5 and 10, 03-MAS-05 Preliminary Plan - Ms. Daniel-Hobbs explained to the Board that this proposal is for the approval of Sunset Oaks Master Plan #03‑MAS‑05 for a 79.98 acre site located on Optimist Farm and Pierce Olive Roads. Ms. Daniel-Hobbs said that the developer is proposing to develop 253 residential lots in two phases of the Sunset Oaks PUD. She said the master plan is compatible with the town’s Ten-Year Comprehensive Growth Plan of medium-density residential development.

Ms. Daniel-Hobbs said that there would be a 25‑foot undisturbed area along Pierce Olive and Optimist Farm Roads; any alteration or deficiency of this buffer requires installment of materials to meet Type C buffer requirements. Ms. Daniel-Hobbs said that a 25‑foot undisturbed buffer that meets Type B requirements is designated along the perimeter of the property.

Ms. Daniel-Hobbs said that water and sewer would be extended to the site by the developer, and all fees and fee‑in‑lieu’s would be in accordance with the approved PUD plan and developer agreement.

Ms. Daniel-Hobbs said right of way dedication would be required on both Optimist Farm and Pierce Olive Road. She said that additional temporary construction easements would be required along the frontages of both streets for future construction.

Ms. Daniel-Hobbs said that a revised flood study would be required for the proposed change from the connection from phase 1 to phase 5, and additional flood study may be required for the reaches adjacent to proposed lots within phase 5 and phase10.

Commissioner Taylor asked if widening would be provided.

Mrs. Sudano explained that the developer would be required to provide a turning lane and that a developer agreement requires the developer to make off-site improvements to an intersection; however, she added, the developer would not be required to widen the entire width of roadway.

Action: The Board approved a motion to approve Sunset Oaks Master Plan #03‑MAS‑05 Phases 5 and 10 as submitted by Tony M. Tate Landscape Architecture, dated Revised November 10, 2003 with the following conditions recommended by staff and the planning board:

1. Prior to construction drawing approval, provide a survey and appraisal of the ±97 acres to be dedicated to the Town of Holly Springs.

2. Provide a design plan for the Optimist Farm Road/Sunset Lake Road intersection.

3. All fees and fee‑in‑lieu’s to be paid in accordance with the previously approved PUD and Developer Agreement.

4. The following items are to be included on construction drawings (later in the approval

process):

a. Revised flood study for the proposed change in roadway connection from Phase 1 to Phase 5

b. Flood study for the reaches adjacent to proposed lots in Phase 5 and Phase 10.

c. Plat dedicating right of way and including temporary construction easements along Thoroughfares for future construction.

Motion By: VanFossen

Second By: Womble

Vote: Unanimous

At this time, Commissioner VanFossen reported to the Town Board that the Technical Review Committee had met earlier in the afternoon and had discussed an update of the UDO. He also noted that the TRC discussed staff-level approval of plans that already have been approved by the Board in earlier stages of the review process, such as in the case of the above-noted plan.

8h. Holly Springs / Cary Annexation Agreement Project – Mr. Dean explained that Pierce Olive Road is situated on a ridge line and creates a natural dividing line between Holly Springs and Cary since the property west of the line naturally drains to one basin and the properties to the east of the ridgeline drain to another.

He recounted the history of the proposed annexation agreement that had been considered by the towns of Cary and Holly Springs:

Mr. Dean explained that the planning and engineering staffs of the two towns had worked together to come up with a proposed annexation boundary line between the two towns, much like the boundaries that exist by agreement between Holly Springs and Apex and between Holly Springs and Fuquay-Varina.

The town manager explained that the boundary lines are not annexation lines, but rather markers for territory that can be used by the towns as a guide in effectively planning for the eventual extension of municipal services.

By General Statute, Mr. Dean said, towns considering entering into an annexation agreement must hold a public hearing on the question. This was done in Holly Springs on Nov. 4 and 18, he said. Public hearings also were held in Cary.

Mr. Dean said input from the hearings in Holly Springs was taken into consideration and alternative lines were proposed that would accommodate some of the comments made by property owners who would be affected. Specifically, he said, the Pierce family had commented that it did not care on which side of the line its property was placed, but it wanted all of its property on one side or the other.

The Olive family, Mr. Dean said, had stated in the hearing that it also would like all of its property on one side or the other of the line, and preferably on the Holly Springs side.

Mr. Dean said the Holly Springs Town Board directed on Nov. 18 that Holly Springs town staff should attempt to accommodate the desires of as many property owners as possible in devising an alternative line for the Cary Town Board to consider in lieu of the original line along Pierce Olive Road.

The following day, Mr. Dean said, the Cary Town Board called a special meeting to adopt a resolution of intent to force-annex much of the properties east of Holly Springs, including several acres that would be on the Holly Springs side of the boundary line, if it had been approved.

Mr. Dean said he really is not sure why the Town of Cary took this sudden action. He noted that, while Cary officials claim it was because the Holly Springs Town Board did not take definitive action on Nov. 18 to adopt the proposed agreement without any changes to the line, the annexation maps Cary created for the forced-annexation project to begin were dated Nov. 18, which would have been several hours before the Holly Springs public hearing on the annexation agreement. He said that indicates that the forced annexation project was in the works even while the towns were processing the proposed annexation agreement.

Mayor Sears explained that as the Board may have heard, seen and read, that the Town of Cary is force‑annexing more than 2,000 acres "before Holly Springs does in order to protect its investment in the area."

He said, to clarify for property owners and Cary officials, that the Town of Holly Springs has had no discussions or interest in annexation of property in this area.

There have been lots of rumors and misinformation, the mayor said, but the facts are:

1. that the Town of Holly Springs has not ever entertained any thoughts of annexing east of our current boundaries, accept upon the voluntary annexation petition of property owners;

2. the Town of Holly Springs did not refuse to take action on the proposed annexation agreement, but simply suggested slight adjustments to the proposed boundary line in response from affected property owners during the public hearing, which the Town of Cary -- apparently -- is unwilling to do.

3. the Town of Holly Springs has never considered the annexation of Dutchman Downs Subdivision, Swift Creek or Middle Creek as has been claimed;

4. no one from the Town of Holly Springs has ever lied to anyone from Cary or to any property owner, as Cary Mayor Glen Lang alleged;

5. the Town of Cary is blaming Holly Springs for its forced annexation of more than 2,000 acres and 4,700, and there is simply no validity to that town’s claim that it has to protect its investment in the area (from Holly Springs).

Action: The Board approved a motion to adopt Resolution 03-31 asserting that Holly Springs had no intentions of force‑annexing any lands east of Holly Springs.

Motion By: Mayor Sears

Second By: none

Vote: Unanimous

A copy of Resolution 03-31 is incorporated into these minutes as addendum pages.

Mr. Dean added that the Town is concerned about setting the record straight and that the Cary annexation maneuvers in no way affect Holly Springs’ future.

10. 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

11. Other Business: Commissioner Van Fossen reported that the Technical Review Committee met Tuesday, December 2, 2003 for their regular meeting. He said the Board discussed and reviewed the Neighborhood Village district; Town-initiated corrections to the Certified Zoning map; preliminary discussion on full UDO evaluations and the traffic impact analysis, which was tabled until the January 2004 meeting.

12. Manager’s Reports: None

13. Closed Session: The Board approved a motion to enter Closed Session, pursuant to G.S. 143‑318.11(a)(1) and (3), to discuss matters of sewer easement acquisitions with the town attorney and to discuss an apparent construction problem at the Bass Lake Retreat Center.

Motion: VanFossen

Second: Atwell

Vote: Unanimous

General Account Closed Session – December 2, 2003

The Board discussed with the Town Attorney the matter of Cedar Queen Development (Scott’s Laurel) sewer easements acquisitions and provided direction; the Board discussed with the Town Attorney its options after seeing that the construction company building the Bass Lake Retreat Center was unable to provide less than a foot tolerance in the pilings as specified in the contract; the Board directed that the architect be asked to discuss this with the construction company; and the Board discussed what the Town should do if it should receive voluntary annexation petitions from property owners in the “Cary” area of the proposed annexation agreement.

‑ End General Account

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

Motion By: Atwell

Second By: Womble

Vote: Unanimous

14. Adjournment ‑ There being no further business for the evening, the Dec. 2, 2003 meeting of the Holly Springs Board of Commissioners was adjourned at 10:30 p.m. following a motion by Commissioner Atwell, a second by Commissioner Womble and a unanimous vote.

Respectfully Submitted on Tuesday, December 16, 2003.

_________________________________

Joni Powell, CMC

Town Clerk

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