1. Board of Commissioners (BOC)

TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 1 OF 14 TOWN OF PITTSBORO The Pittsboro Board of Commissioners met in Regular Session on Monday, March 13, 2023, at 7:00pm in the meeting room at the Chatham County Agriculture and Conference Center with Mayor Cindy Perry presiding. The meeting was called to order at 7:00pm. Mayor Perry requested a moment of silence with the recitation of the Pledge of Allegiance following led by Commissioner Farrell. ELECTED TOWN OFFICIALS PRESENT: Mayor Cindy S. Perry, Mayor Pro Tern Pamela Baldwin, Commissioners John Bonitz, Jay Farrell, Kyle Shipp, and James Vose. TOWN STAFF PRESENT: Interim Town Manager Larry Faison, Town Attorney Paul S. Messick, Finance Director Heather Meacham, Chief of Police Shorty Johnson, HR Director Jennifer Eakes, Downtown Development Director Theresa Thompson, Public Information Officer/Emergency Management Coordinator Colby Sawyer, Parks & Recreation Director Katy Keller, Planner II Janie Phelps, Director of Engineering Kent Jackson, Project Engineer Morgan DeWit and Town Clerk Carrie Bailey. ADOPTION OF THE AGENDA Mayor Perry called for a motion to either approve or modify the agenda as proposed . Commissioner Farrell made a motion to approve the Regular Agenda, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Mayor Perry presented the Proclamation declaring March 2023 as "Women's History Month" Mayor Pro Tem Baldwin made a motion to accept the Proclamation, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Mayor Perry presented the Proclamation declaring March 17, 2023 as "Arbor Day" Commissioner Shipp made a motion to accept the Proclamation, seconded by Commissioner Bonitz. Vote: Aye-5 Nay-0 Motion carried unanimously. CITIZEN MATTERS 1. Interim Manager Updates 1  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 2 OF 14 Interim Town Manager Larry Faison shared the Town was contacted by Brightspeed to adding fiberoptics in Pittsboro. The role of the Town will be permitting and providing communication to the public. The Town will not construct or manage the services once installed. Town staff attended an orientation meeting on March 1st and will be reviewing the permitting of construction in Town's right of ways. Installation will begin in Fall 2023, providing 2GB to homes with a 10GB expansion . 2. Mayor and Commissioner Updates and Concerns Mayor and Board members gave updates on the committees and boards on which they serve. Commissioner Shipp spoke of his concern to see the Downtown Pittsboro website available to highlight businesses downtown . 3. Public Comment None. CONSENT AGENDA Mayor Perry called for action on the Consent Agenda. The Consent Agenda contained the following items: 1. Minutes of the November 14, 2022 Work Session of the Board of Commissioners 2. Minutes of the December 12, 2022 Regular Meeting of the Board of Commissioners 3. Minutes of the December 13, 2022 Special Meeting of the Board of Commissioners 4. Minutes of the February 16, 2023 Special Meeting of the Board of Commissioners 5. Minutes of the February 27, 2023 Regular Meeting of the Board of Commissioners 6. Minutes of the February 27-March 3, 2023 Special Meeting of the Board of Commissioners 7. Minutes of the March 3, 2023 Special Meeting of the Board of Commissioners 8. Resolution to Commemorate Robert J. Goldston for Twenty-Six Years of Service 9. Resolution in Observance of Creek Week 10. Resolution for Rural Transformation Grant for Lewis Freeman Park 11 . Planning Board and Board of Adjustment Calendar Modifications Commissioner Shipp made a motion to approve the Consent Agenda, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. MISCELLANEOUS 1. Discussion of Force Main Project Director of Engineering, Kent Jackson updated the Board with Force Main project, bids were accepted in November, with a bid being extended through May 10, 2023. Jackson shared the 2  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 3 OF 14 bid contractor was concerned with supplier rescinding quote of valves that will become an additional cost which the bidder is willing to absorb the cost difference at this time. Construction contracts would require to be fully funded with current funding gap of 5.3 million dollars. Chatham Park Investors have provided a proposal to fund the gap with a prepayment agreement. City of Sanford placed a significant value related to vetting and revisions of Chatham Park Investor agreements. PUBLIC HEARINGS Mayor Pro Tem Baldwin made a motion to enter Public Hearing, seconded by Commissioner Bonitz. Vote: Aye-5 Nay-0 Motion carried unanimously. Director of Engineering Kent Jackson reminded the Board that a System Development Fee (SDF) analysis and update began in 2021 by Freese and Nichols which the draft was presented to the BOC in December 2022. The previous analysis and adoption of SDF was in 2018 which is required to be updated every five (5) years by the N.C.G.S. Chris Belk, Freese and Nichols, presented the results of the SDF analysis and report calculations based on N.C.G.S. Chapter 162A, Article 8. Belk shared the results were the maximum amount allowed, including a twenty (20) year planning Horizon, and explained the three (3) allowable methods and with the incremental method chosen for the study due to lack of current capacity. There is a required twenty-five (25) percent credit, and the calculation of SDF is the cost per gallon times the gallons per capita day per service unit (SU) equivalent. Charles Archer, Freese and Nichols, stated the twenty-five (25) percent is based on the national model of the American Waterworks Association that for incremental method assumes twenty- five percent of the capital costs are built into the rates of the system therefore that percentage is paid by the rate payers and the seventy-five (75) percent is paid by the development community that is using the capacity. Tim Smith, Chatham Park, 105 Western State Way, Cary, NC spoke to the Board in reference to average house usage and asked for consideration of usage per home versus what the State has outlined, the difference is one hundred-two (102) gallons per day versus five hundred (500) gallons as indicated on the analysis which is the maximum fees allowed. Mr. Smith shared that Chatham Park has a reduction of one hundred eighty (180) gallons per day for a three (3) bedroom house which is not reflected in the analysis and felt it was wrong to start charging per meter. Mr. Smith expressed the gallons per home are overestimated in the chart presented by Freese and Nichols. Electronic.Public Hearing comments received are attached at the end of this set of minutes. Mayor Pro Tem Baldwin made a motion to close Public Hearing, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. 3  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 4 OF 14 OLD BUSINESS 1. Town of Pittsboro System Development Fee Director of Engineering, Kent Jackson requested the Board to adopt the Ordinance of the Freese and Nichols System Development Fee study and to set a Public Hearing for March 27, 2023, for adoption of the SDF fee. Commissioner Shipp made a motion to adopt the Freese and Nichols study, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Commissioner Shipp made a motion to adopt a Public Hearing on March 27'h on the fee structure, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. NEW BUSINESS 1. Hybrid and Flexible Work Policy HR Director Jennifer Eakes provided the Board with a brief overview of the new proposed policy and shared there has not been a policy in the employee handbook to address the parameters for employees to work from home. Eakes highlighted the opportunity for remote work, compressed schedule and alternative work schedules to allow departments the flexibility for retention and work life balance. Commissioner Shipp asked for two changes to the policy, to add a reasonable notice of thirty (30) days' timeframe for item F. 5. and to edit the approval form to include signatures of immediate Supervisor only. Commissioner Shipp made a motion to approve the policy to include the two amendments of approval by the direct Supervisor to the employee and a thirty (30) day reasonable notice to suspend, seconded by Commissioner Vose. Vote: Aye- 5 Nay-0 Motion carried unanimously. 2. Rabbit Hunt Event Sponsorship Funding Request Downtown Development Director Theresa Thompson presented the funding request in the amount of two hundred dollars. Commissioner Shipp asked what the raffle funds would be used for. Greg Lewis shared the raffle funds would cover the cost of rabbits and ten (10) dollar vouchers to reimburse downtown retailers . Lewis shared this is Welcome Chatham's first-time hosting of the Rabbit Hunt event and had not budgeted for the additional expense. 4  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 5 OF 14 Commissioner Shipp made a motion to approve subject to Mr. Messick and Ms. Meacham sign off that we have everything we need from Welcome Chatham, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Commissioner Farrell questioned the Bynum water line on the development list of eligible products with discussion of Old Goldston Road and Alston Chapel Road also. CLOSED SESSION Commissioner Shipp made a motion to enter Closed Session, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. 1. The Board of Commissioners wish to hold a Closed Session pursuant to N.C.G.S. § 143-318.11. (a)(1) and (9) pertaining to cybersecurity upgrades. 2. The Board of Commissioners wish to hold a Closed Session pursuant to N.C.G.S. § 143-318.11. (a)(3) pertaining to Town Manager selection process. Commissioner Bonitz made a motion to exit Closed Session, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Commissioner Bonitz made a motion to recess Regular Session to reconvene at 7pm on Tuesday March 14, 2023 at Town Hall, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. CONTINUATION Mayor Perry called to order the recessed meeting from March 14, 2023 at 7:00pm. ELECTED TOWN OFFICIALS PRESENT: Mayor Cindy S. Perry, Mayor Pro Tern Pamela Baldwin, Commissioners John Benitz, Jay Farrell, Kyle Shipp, and James Vose. 5  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 6 OF 14 TOWN STAFF PRESENT: Town Attorney Paul S. Messick, HR Director Jennifer Eakes and Town Clerk Carrie Bailey. Commissioner Farrell made a motion to approve Jonathan Franklin as the new Town Manager effective May 1st, as contracts are in process, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Commissioner Shipp made a motion to enter Closed Session pursuant to N.C.G.S. § 143- 318.11. (a)(3) pertaining to personnel, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Mayor Pro Tern Baldwin made a motion to exit Closed Session, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. Commissioner Bonitz made a motion to recess the meeting until 4:30pm on March 15, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion carried unanimously. CONTINUATION Mayor Perry called to order the recessed meeting from March 15, 2023 at 4:29pm. ELECTED TOWN OFFICIALS PRESENT: Mayor Cindy S. Perry, Mayor Pro Tern Pamela Baldwin , Commissioners Jay Farrell, Kyle Shipp, and James Vose. ELECTED TOWN OFFICIALS ABSENT: Commissioner Benitz. TOWN STAFF PRESENT: Director of Engineering Kent Jackson and Town Clerk Carrie Bailey. Mayor Pro Tem Baldwin made a motion to enter Closed Session pursuant to N.C.G.S. § 143-318.11. (a)(3) pertaining to personnel, seconded by Commissioner Vose. Vote: Aye-4 Nay-0 Motion carried unanimously. Commissioner Farrell made a motion to exit Closed Session pursuant to N.C.G.S. § 143- 318.11. (a)(3) pertaining to personnel, seconded by Commissioner Vose. Vote: Aye-4 Nay-0 Motion carried unanimously. 6  TOWN OF PITTSBORO BOARD OF COMMISSIONERS MARCH 13-15, 2023 REGULAR MEETING MINUTES PAGE 7 OF 14 Mayor Perry shared that Engineering Director Kent Jackson has expressed an interest in additional responsibilities and leadership opportunities, so the Board has discussed whether to allow Kent Jackson to be the Interim Town Manager for the next six weeks until May 1st, the starting date for Jonathan Franklin . Commissioner Shipp made a motion end the contract with Larry Faison, seconded by Commissioner Vose. Vote: Aye-4 Nay-0 Motion carried unanimously. Mayor Perry shared her appreciation of the Interim Town Managers that the Town has had since Chris' departure last year. Commissioner Farrell made a motion to appoint Kent Jackson as Interim Town Manager effective immediately until May 1st, or any other date that Jonathan Franklin's due to begin, seconded by Commissioner Vose. Vote: Aye-4 Nay-0 Motion carried unanimously. Mayor Perry and Kent Jackson will work with Department Heads to let them know of this arrangement for their information, their assurance, and their comfort. Commissioner Benitz arrived at 4:40pm. ADJOURNMENT Mayor Pro Tem Baldwin made a motion to adjourn at 4:41pm, seconded by Commissioner Vose. Vote: Aye-5 Nay-0 Motion passed unanimously. ~ C~Mayor A-~~ ATTEST: , ~LJ3~ Carrie L. Bailey, Town Clerk ~ 7 From: noreply@civicplus.com Sent: Saturday, February 25, 2023 9:09 AM To: Town of Pittsboro - Public Comments Subject: [EXTERNAL) Online Form Submittal : Water and Wastewater System Development Fee Update Report Water and Wastewater System Development Fee Update Report Comments It's too high . Attachments Field not completed. Email not displaying correctly? View it in your browser. CAUTION: This message originated outside the Town of Pittsboro - Do not click links or o en attachments unless ou reco nize the sender and know the content is safe. From: noreolv@civjcplus.com To: Town of Pittsboro - Public Comments Subject: [EXTERNAL] Online Form Submittal: Water and Wastewater System Development Fee Update Report Date: Friday, March 3, 2023 11:04:58 AM Water and Wastewater System Development Fee Update Report Comments I am writing to express concern over the Town of Pittsboro proposed System Development Fee increases. Based on the Freese and Nichols report dated January 2023 , the maximum allowed System Development Fees presented are roughly 20 times the amount of the current Water SDF and roughly 17 times the amount of the current Sewer SDF. This represents an unreasonable and significantly impactful increase that will have negative impacts on the homebuilding industry and the cost of home ownership. In recent years, with the unprecedented supply chain challenges and cost increases the homebuilding industry has experienced, the average price of a home has increased dramatically. Along with increased home prices, the nation has been facing headwinds from an economic standpoint, with increased mortgage rates and inflation impacting the ability for many to afford a new home. Increasing the SDFs so significantly will compound the home affordability crisis we are currently facing . From a local standpoint, these potential increases will put Pittsboro at a major disadvantage compared to surrounding towns (PROPOSED MAXIMUM INCREASED FEES ARE 295% MORE THEN HOLLY SPRINGS FEES OF $13,266- ONE OF THE CURRENT HIGHEST IN THE REGION) and counties that have much lower utility impact fees, thus negatively impacting economic development activity in our local area and driving potential new development and future homeowners elsewhere. Attachments Field not completed. Email not displaying correctly? View it in your browser From: noreoly@civicolus.com To: Town of Pittsboro • Public Comments Subject: (EXTERNAL] Online Form Submittal: Water and Wastewater System Development Fee Update Report Date: Tuesday, March 7, 2023 7:34:58 AM Water and Wastewater System Development Fee Update Report Comments As a homeowner/resident of Pittsboro. I strongly support these necessary fee updates. Elizabeth Spalt 166 Park Dr. Pittsboro Attachments Field not completed. Email not displaying correctly? View it io your browser  Cullington Comments on SDF report I would have to agree with Mr. Messick about how "legacy lots" can't be treated differently from other new development, and that other means could perhaps be found to subsidize new genuinely affordable housing units. However, it appears that there is a current mechanism by which owners of larger lots in town could add new housing (and increase income) without the additional cost of a SDF, and that is to convert or add to an existing residence in order to create a smaller Auxiliary Dwelling served by the same water and sewer connections and with no deed separation. If I were doing this and had room for a separated dwelling, I would locate it in such a way that it could eventually be split off if necessary with a new connection at that time. Several assumptions behind F&N SDF study seem questionable. What would the fee have been if a 10-year timeline was used, given that the SDF fee has to be reset at least every five years? The resulting proposed fee is high because currently scheduled costs are high, however those costs include laying the groundwork for water and sewer service throughout PBO's gigantic ET!. many times the size of current town. including areas that are already developed at low density. More importantly, such "plans" are totally at odds with the draft future land use plan. That plan shows large areas of the ETJ as maintaining their low density, rural nature, with much of that targeted for natural resource conservation. See comparison of maps at the end of these comments. Without all the line extensions for water and sewer into areas not currently designated for potential town expansion, or Chatham Park, and the associated upgrades to existing infrastructure those expanded water and sewer lines would require, the basis cost for the SDF would be somewhat lower, if still very high. I urge the Board to schedule an update to the fee just a few years from now, and possibly less than the mandated five years, so that once the Sanford Force Main is eventually operational the cost basis for additional connections can be adjusted. Clearly the biggest costs are for expanded capacity (water and sewer) and have to be front-loaded, including the totally unfunded cost of converting the current WWTP. Because previous discussions with both the Wooten company and Freese and Nichols indicate either unsuitability or additional costs for shipping an additional 3 MGD untreated wastewater to Sanford, I would urge the Board to get a commitment from Chatham Park Investors (CPI) to expand its WWRF to its full 1 MGD capacity. In addition, what monitoring is there for effluent from that plant discharged to Robeson Creek? If it is as relatively clean as CPI claimed it would be, should long-term planning include discussions with the state about the potential for a similar plant that would discharge to a tributary to Jordan Lake? Since it appears such a plant can be constructed in 0.25 MGD modules, less of the upfront capital cost has to be spent initially. Plus in association with a Jordan Lake intake, no interbasin transfer would be involved. 1  Cullington Comments on SDF report Population growth: while past 4% growth is no guide to future growth, given the rapid development of Chatham Park, did F&N in fact adjust its population growth figures in Table 3-2 in line with CPI Chatham Park projections, as suggested in an earlier workshop meeting? Additional water demand and wastewater flow data per residence does not seem to be based on data from new construction and is averaged over past town data. This might overstate demand for both since the town service area includes a lot of older housing stock, with some inefficient appliances (washers, dishwashers, toilets), and residential areas with lot sizes large enough to require periodic irrigation. The Future Development map and table (3-3) are already out of date as Turkey Creek may not be approved, nor might additional development along the "Sanford waterline corridor." On the other hand, new development on land owned by Chatham Park principals outside the PDD have been approved with more in the pipeline with better road access. The report highlights the financial impacts of past poor decisions, for instance in Water, table 4- 7 (pdf p.19) at# E, Corbett Landing water line extension. When water service was approved to this development, the Board understood that the line to Chapel Ridge went right by, thus no extra (significant) cost to the town. But the line doesn't go by and there's now a need to spend $4,278,000 (or possibly more) for a new line from the actual Chapel Ridge line along Russell Chapel Road. This should be an object lesson to both the Board and the Planning Board (and staff) to consult with Engineering, with possible reference to this report, for the cost implications of future development and/or rezoning requests. Some projects don't require new lines but may require larger ones (or pumps or other upgrades) upstream, whether for water or sewer. In many cases the developer should be required to pay either all or part of these additional costs. The SDF fee from new connections should be able to pay for new capacity, not new lines serving only one development. However. new connections should not have to pay a fee based on projected expansion of water and sewer lines extended throughout all quadrants of the gigantic ET!. In addition, based on the presentation by Freese and Nichols of this report it appears that one of their assumptions was accelerated payback of these capital costs on the grounds that additional capacity would be needed beyond those identified in the report. To what extent is that additional capacity need based on the report's assumption that every square foot of the ET! that is not already developed will be? The Town Board, town residents and those adjacent are already reeling at the thought of Pittsboro proper having fifteen times as many people on the basis of Chatham Park alone. It is not credible to me that the town can actually grow many times larger than even that. Who will pay and how much will this fee collect? Since the Town has no additional sewer capacity to allocate, and by this summer may not have additional water capacity, in a practical sense, it appears there can be no new development requiring fiew sewer connections (and possibly soon no new water connections or larger meters). The exception regarding sewer of course would new development in Chatham Park, and adjacent non-PDD developments, that are to send wastewater to CPJ's new sewer plant (WWRF). However some of this development, while not yet undergoing actual building construction, might have 2  Cullington Comments on SDF report "banked" their SDF fees at the current lower rate since Mr. Messick's memo indicates this can be triggered at the subdivision stage. I hope that this is not the case because currently I believe the most expensive home currently for sale in the Vineyards is for a million dollars, and even the lowest priced townhouses seem priced $100,000 more than they ought to be. Liz Cullington 390 Rocky Hills Rd Pittsboro NC 27312 3