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08/07/2001 e e e e e CITY OF MONROE CITY COUNCIL MEETING 300 W. Crowell Street, Monroe, NC 28112 August 7, 2001- 6:30 p.m. AGENDA CONSENT AGENDA 1. Minutes of Regular City Council Meeting of July 17,2001 Minutes of Public Safety Committee Meeting of July 25,2001 Minutes of Land Development Committee Meeting of June 14, 2001 Minutes of Planning Board Meeting of July 11,2001 Minutes of Board of Adjustment Meeting of June 14,2001 Minutes of Tree Board Meeting of March 19,2001 Minutes of Transportation Committee Meeting of June 14,2001 Minutes of Environmental & Water Resources Committee Meeting of April17, 2001 Minutes of Downtown Monroe, Inc. Board Meeting of June 26, 2001 2. Reimburse Resolution for Fiscal Year 2002 Installment Financings 3. Option to Purchase James Tice Property A. Budget Amendment B. To Exercise the Option to Purchase 4. Call for Public Hearings To Be Held August 21, 2001 A. Level IV Economic Development Grant - Confidential Company B. Project # 01-100-00013 - Conditional Use Pennit Request - Addition of One (1) Modular Unit at Walter Bickett Elementary School- 501 Lancaster Avenue - 13.24 Acres - Union County Public Schools - Tax ill # 09-235-114 5. Ordinances A. An Ordinance to Amend Chapters 10 and 11 of the City Code B. An Ordinance to Amend Chapter 75 - Traffic Code - Through Trucks 6. Summary of Contracts Awarded Pursuant to 0-2001-17 and Change Orders Executed Pursuant to R-2000-76 7. Award of Bid - Jet Vac Truck - Water Resources Department 8. Donation of Old Cell Phones 9. Amendments to Water and Sewer Extension Policy and Correction of Water Pressure Problems on Cannel Oaks Lane 90 e e e e REGULAR AGENDA 10. Public Hearings: A. City of Monroe Standard Specifications and Detail Manual B. Project # 01-120-00018 - Subdivision Text Change - Delete Sections of the Subdivision Ordinance that are to be Included in the Design and Specifications Manual C. Project # 01-130-00011 - Zoning Map Change Request - G-I (General Industrial) to B-3 (Highway Business) and B-5 (Medical Facility) - 402 S. Sutherland Ave. - Approximately 4.05 acres - on S.W. Comer of Roosevelt Blvd. and S. Sutherland Ave. - City of Monroe - Tax ID# 09-191-006 11. Action from Public Hearings: A. Proposed Ordinance to Amend City of Monroe Fees Schedule B. Proposed Ordinance to Adopt the City of Monroe Standard Specifications and Detail Manual C. Project # 01-120-00018 - Proposed Ordinance - Subdivision Text Change - Delete Sections of the Subdivision Ordinance That Are to be Included in the Design and Specifications Manual D. Project # 01-130-00011 - Zoning Map Change Request - G-I (General Industrial) to B-3 (Highway Business) and B-5 (Medical Facility) - 402 S. Sutherland Ave. - Approximately 4.05 acres - on S.W. Comer of Roosevelt Blvd. and S. Sutherland Ave. - City of Monroe - Tax ID# 09-191-006 12. Closed Session - To Consult with City Attorney on Matters Requiring Confidentiality e 08-07-01 91 e e e e e CITY OF MONROE CITY COUNCIL MEETING AUGUST 7, 2001- 6:30 p.m. MINUTES The City Council ofthe City of Monroe, North Carolina, met in Regular Session in the City Hall Council Chambers, 300 W. Crowell Street, Monroe, North Carolina, at 6:30 p.m. on August 7, 2001, with Mayor Judy L. Davis presiding. Present: Mayor Judy L. Davis, Mayor Pro Tern P. E. Bazemore, Council Members Phil Hargett (delayed arrival), Billy A. Jordan (delayed arrival), Lynn Keziah, Bobby G. Kilgore, Robert J. Smith, City Manager S. Douglas Spell, City Attorney John Milliken, and City Clerk Jeanne M. Deese. Absent: None. Visitors: R. Brandstaetter, Mike Thomas, La Vondra Edwards, Wayne Herron, Bob Harvell, Dan Shive, Dave Anderson, Cecil Hodges, Mike Keziah, Donna Helms, Carol Rhea, Jim Loyd, and Mike Courtney, and others. Mayor Davis called the Regular City Council Meeting of August 7, 2001 to order at 6:30 p.m. A quorum was present. CONSENT AGENDA: Mayor Davis reviewed the Consent Agenda and asked if any member of the Council or the public would like to have any items moved from the Consent Agenda to the Regular Agenda for discussion. Written background infonnation was provided in advance in the Council Agenda Packets for each item on the Consent Agenda. No further discussion was held. One motion and vote was taken, which included approval of all items on the Consent Agenda. Item No. 1. Minutes of Reeular City Council Meetine of Julv 17. 2001. Council Member Kilgore moved to approve the Minutes of the Regular City Council Meeting of July 17, 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: 92 e Minutes of the Public Safety Committee Meeting of July 25, 2001, Minutes of the Land Development Committee Meeting of June 14,2001, Minutes of the Planning Board Meeting of July 11, 2001, Minutes of the Board of Adjustment Meeting of June 14, 2001, Minutes of the Tree Board Meeting of March 19, 2001, Minutes of the Transportation Committee Meeting of June 14,2001, Minutes of the Environmental & Water Resources Committee Meeting of April 17, 2001, and the Minutes of the Downtown Monroe, Inc. Board Meeting of June 26, 2001 were received as infonnation of Council. e Item No.2. Reimburse Resolution for Fiscal Year 2002 Installment Financine:s. Finance and Administration Director Vizcaino requested by memorandum that Council consider adopting a Reimbursement Resolution to cover anticipated installment financings for Fiscal Year 2001- 2002. Regulations published by the Internal Revenue Service and the U. S. Treasury Department require that the City adopt a Reimbursement Resolution with certain facts and intentions prior to the incurrence of tax-exempt obligations. The Reimbursement Resolution authorizes these expenditures not to exceed $2,500,000 for the purchase of motorized and other equipment prior to the issuance by the City of tax-exempt obligations through an installment purchase contract. Staff recommended City Council adopt Resolution R-2001-35 to fulfill this requirement of the Internal Revenue Service and U. S. Treasury Department. Council Member Kilgore moved to adopt Resolution R-2001-35: e REIMBURSEMENT RESOLUTION WITH REGARD TO INSTALLMENT FINANCINGS FOR FISCAL YEAR 2001 ~ 2002 R-2001-35 AUTHORIZING CITY OF MONROE, NORTH CAROLINA TO UNDERTAKE CERTAIN EXPENDITURES WITH RESPECT TO CAPITAL PURCHASES PRIOR TO THE EXECUTION BY THE CITY OF AN INSTALLMENT PURCHASE CONTRACT FOR SUCH PURPOSES IN AN AMOUNT NOT TO EXCEED $2,500,000 FOR FISCAL YEAR 2001 - 2002. WHEREAS, the Internal Revenue Service and U.S. Treasury Department have published regulations that govern when a political subdivision such as the City of Monroe, North Carolina (the City), can issue or execute tax-exempt obligations to reimburse itself or any agency or division thereof for expenditures on e purchases prior to the issuance of tax-exempt obligations for such projects; and WHEREAS, the regulations require that the governing body of the political subdivision adopt a resolution reciting certain facts and intentions prior to the incurrence of the expenditures; and WHEREAS, the City anticipates incurring certain expenditures for fiscal year 2001 - 2002 in an approximate amount of not exceeding $2,500,000 (the "Expenditures") with respect to purchase of motorized and other equipment prior to the issuance by the City of tax-exempt obligations in the form of an installment purchase contract for such purpose in an amount not to exceed $2,500,000 expenditures for fiscal year 2001 ~ 2002. e NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Monroe as follows: Section 1. The City Council hereby declares a reasonable "official intent" pursuant to Regulation 1.103-18 to the Internal Revenue Code of 1986, as amended, to reimburse the City from the proceeds of tax- 93 e e e e e exempt obligations in the form of an installment purchase contract of the City executed under the authority of North Carolina General Statute 160A-20, as amended for such Expenditures. Such Expenditures must be incurred not later than two years from the date hereof in order to be eligible for reimbursement from the proceeds of the installment purchase contract or such other date as may be applicable in the regulations. The City anticipates incurring Expenditures in an approximate amount of not exceeding $2,500,000 with respect to the Projects prior to the execution by the City for such purpose in an amount not to exceed $2,500,000 expenditures for fiscal year 2001 - 2002. Section 2. To be eligible for reimbursement of the Expenditures, the installment purchase contract will be executed on or before the later of the date one year after the Expenditure was paid or the date one year after the equipment were placed in service, or such later date as may be applicable in the regulations as amended. Section 3. The Expenditures are incurred solely to acquire, construct or rehabilitate property having a reasonably expected economic life of at least one year. Section 4. The source of funds for the General Fund Expenditures will be general funds derived primarily from ad valorem taxes of the City and other City general funds and for the Enterprise Funds Expenditures will be charges for enterprise services. The installment purchase contract executed to defray the costs of the Projects will be paid primarily from ad valorem taxes and/or revenues. Done in meeting duly assembled this ihday of August. 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.3. Option to Purchase James Tice Property. The City of Monroe has previously acquired land to build a Civic Center and placed an option to purchase 36,590.4 square feet of land for $125,000 to be combined with 9.16 acres ofland already purchased for this purpose. A smaller piece of land containing 36,590 square feet and owned by James W. Tice and Teresa Collins Tice immediately adjacent to the 9.16 acres became available for $125,000. The City Council approved placing an option on it such that the purchase of this land would occur in Fiscal Year 2002. In order to allow sufficient time for document preparation and closing on the property prior to the option expiring on September 30, 2001, the City Attorney advised proceeding to exercise the option to purchase. Staff recommended that the City Council approve a budget amendment to transfer funds from the General Fund Balance to the Civic Center Capital Project and to exercise the option to purchase the Tice property. A. Bude:et Amendment. Council Member Kilgore moved to approve Budget Amendment BA-2001-11 : Budget Amendment BA-2001-11 WHEREAS, the City Council has a vision to develop a Civic Center for Monroe to provide space for community activities and to promote the growth of the hospitality industry; and 94 e e e e . WHEREAS, The City Council has identified 36,590 square feet ofland to purchase for $125,000.00 from James W. Tice and Teresa Collins Tice; and WHEREAS, This land is adjacent to land already purchased for the Civic Center; NOW, THEREFORE, the Monroe City Council appropriates the following revenues and expenditures: GENERAL FUND: Revenues: Appropriation of Fund Balance $125,000 Expenditures: Transfer to the Civic Center Capital Project $125,000 CIVIC CENTER CAPITAL PROJECT: Revenues: Transfer from General Fund $125,000 Expenditures: Purchase of Land $125,000 This the 7th day of AUlrnst 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: B. To Exercise the Option to Purchase. Council Member Kilgore moved to exercise the option to purchase the 36,590.4 square feet of land from James and Teresa Tice for $125,000. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.4. Call for Public Hearinl!s To Be Held Au!!ust 21. 2001. A. Level IV Economic Development Grant - Confidential Company. Council Member Kilgore moved to adopt Resolution R-2001-41 to call for a public hearing to be held on August 21,2001 at 6:30 p.m. to consider this request: 95 e . e e e CITY OF MONROE RESOLUTION OF INTENTION TO ENTER INTO AN AGREEMENT TO PROVIDE ECONOMIC INCENTIVES AND TO CALL FOR A PUBLIC HEARING R-2001-41 THAT WHEREAS, the City of Monroe has adopted an Economic Development Grant Program to attract and retain new and existing industry for the purpose of creating jobs and investment to enhance the long-term economic well being of its Citizens; and, WHEREAS, a company has requested from the Monroe Business and Economic Development Commission (EDC) a Level IV Grant and the EDC has recommended such request; and WHEREAS, the Company has provided information in a written request to the City Manager providing a description of the business, the jobs to be created, its investment level, and its utility needs, and WHEREAS, the City Council finds that the information submitted qualifies this company for consideration of a Level IV Grant. NOW, THEREFORE, BE IT RESOLVED that a public hearing is called for at the regular City Council Meeting on August 21,2001, at 6:30 p.m. to consider the award of said Grant and the City Clerk is directed to publish notice of said hearing as required by law. Adopted this ih day of August, 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: B. Proiect # 01-100-00013 - Conditional Use Permit ReQuest - Addition of One (1) Modular Unit at Walter Bickett Elementarv School- 501 Lancaster Avenue-13.24 Acres- Union Countv Public Schools - Tax ID # 09-235-114. Council Member Kilgore moved to call for a public hearing to be held on August 21,2001 at 6:30 p.m. to consider this request. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.5. Ordinances. A. An Ordinance to Amend Chanters 10 and 11 of the City Code. Council adopted an Ordinance on February 1, 2000 to adopt and ratify the common seal for the City of Monroe. When the Ordinance was codified, the codifiers placed this in Section 11.01 of the City Code. This Ordinance is more appropriate to be codified in Section 10.01 of the Code. Staff requested 96 · e e e e that Council adopt Ordinance 0-2001-33 to amend Sections 10.01 and 11.01 of the City Code to codify adoption ofthe common seal in Section 10.01. Council Member Kilgore moved to adopt Ordinance 0-2001-33: AN ORDINANCE TO AMEND TITLE I CHAPTER 10 OF THE CITY OF MONROE CODE OF ORDINANCES 0-2001-33 Preamble Pursuant to authority conferred by Article 8 of Chapter 160A of the North Carolina General Statutes, as amended; BE IT ORDAINED BY THE CITY COUNCIL OF MONROE THAT TITLE I CHAPTER 10 OF THE CODE OF ORDINANCES IS AMENDED AS FOLLOWS: TEXT AMENDMENT Section 1. The existing § 10.01 including the section heading is rewritten as follows: § 10.01 Title of Code and Adoption of City Seal. A. This codification of ordinances by and for the City of Monroe shall be designated as the City of Monroe, North Carolina Code of Ordinances. Section 2. The existing § 11.01 (A) and (B) is amended by deleting the section heading and transferring subsection (A) and (B) to § 10.01 as subsection (B) and (C) respectively. Section 3. This ordinance shall be effective on the date of its adoption. Adopted this 7th day of August, 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: B. An Ordinance to Amend Chapter 75 - Traffic Code - Throueh Trucks. Engineering Director Loyd advised by memorandum that the City of Monroe Engineering Department has received a number of requests to post roadways within Monroe to "No Through Trucks." The first request was from the Old Monroe Neighborhood, which requested Maurice Street be designated as "No Through Trucks." The second request for a "No Through Truck" designation on Franklin Street resulted from a request from Downtown Monroe, Inc. to post a truck route within the Downtown Area. The Division Traffic Engineer advised that it would be acceptable to post the section of Franklin Street that is classified as a secondary road to "No Through 97 e e e e e Trucks." No signs can be placed on US/NC routes. Downtown Monroe, Inc. is in favor of posting the section of Franklin Street from US Highway 74 to Charlotte Avenue for "No Through Trucks." City Attorney Milliken recommended including this section of Franklin Street in the City Traffic Schedules prior to posting. The Engineering Department recommended adopting an Ordinance to amend Schedule VII Through Trucks to include Maurice Street, from Windsor Street to Hayne Street, and Franklin Street, from US Highway 74 to Charlotte Avenue, as streets designated for "No Through Trucks." Council Member Kilgore moved to adopt Ordinance 0-2001-36: AN ORDINANCE TO AMEND TITLE VII, CHAPTER 75 OF THE CITY OF MONROE CODE OF ORDINANCES 0-2001-36 BE IT ORDAINED by the City of Monroe Council that Title VII: Traffic Code, Chapter 75 - Traffic Schedules of the City of Monroe Code of Ordinances is amended as follows: Schedule VII. Throu1!:h Trucks ADD: No throuxh trucks are permitted at thefollowinx location: STREET NAME FROM TO Maurice Street Windsor Street Hayne Street Franklin Street US Highway 74 Charlotte Avenue Adopted this 7th day of August, 2001. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.6. Summary of Contracts Awarded Pursuant to 0-2001-17 and Chanee Order Executed Pursuant to R-2000-76. City Manager Spell infonned City Council by memorandum of the award of contracts pursuant to Ordinance 0-2001-17 and change orders approved pursuant to R-2000-76: Date Name Purpose Amount 7-28-01 Smart, Inc. Annual Agreement for Bi-monthly Visits to Clean and Adjust $333 Bi-Monthly Cardiovascular Equipment 7-13-01 Commercial Annual Janitorial Renewal Agreement for Aquatics and $44,760.00 Per Year Cleaning Fitness Center 98 e e e e e Date Name Purpose Amount 7 -12-01 Commercial Annual Janitorial Renewal Agreement for Dickerson Gym, $49,051.80 Per Year Cleaning Mars Center, Bazemore Center, Winchester Gym, Winchester Ceramics, J. Ray Shute Center, and Sutton Park Recreation Centers 7-12-01 Commercial Annual Janitorial Renewal Agreement for City Hall, $66,995.72 Per Year Cleaning Operations Center, Police Station, and Airport Terminal 7 -10-01 HTE Annual Renewal of Maintenance Contract for AS/400 $5,887.00 Per Year Support Line Services (Hourly telephone assistance) 7-11-01 National Golf Golf Facility Maintenance and Operations Analysis for $22,000.00 Foundation Monroe Country Club Consulting, Inc. 7-12-01 SKF Farms, Inc. Annual Monroe Airport Maintenance Agreement $3,300.00/ month 7 ~ 18-0 1 Southern Fitness Annual Agreement for Bimonthly Inspection of All Exercise $45.00 Per Hour On~ Products Equipment, Including Necessary Repairs, Lubrication, and Site Cleaning $25.00 Travel Per Trip 7-24-01 A & E Blueprint Annual Maintenance Agreement for Inspection and $1,100 per Year* & Supply, Inc. Adjustment of Blueprint Machine 7-26-01 Tenninix Annual Service Agreement for Old City Hall $304.20 Initial and Services, Inc. $110.61 Per Month* * Approved by Department Director Date Name Purpose Amount 6-29-01 Hall Contracting Change Order for Monroe Water Treatment Plant ($10,783.90) COIporation Improvements - Modifications to Existing Flocculator #2 Shaft, Replacement Flocculator Motors, and Credit for Unused Portion of Change Order #2 7·11-01 Concord Change Order for Gold Mine Road Booster Pumping Station $7,876.48 Builders, Inc. Various Modifications of Contract including cushion swing check valve in lieu of electric control valves, replace wiring and conduit to yard valve actuators and electrical equipment in altitude valve vault, communication hardware and installation, Locate Panels in Chemical Room, additional wiring for Backflow Valve, Install ductile iron pipe riser and 90 degree bend outside Pumping Station and services 7-12-01 Via Electric Change Order for Water Treatment Plant Improvements ~ To $3,698.84 Company provide and install new conduit for Flocculator Basin Motor Starters for High Service Pump Station 7 ·18-01 W. G. Holden Change Order for City Hall Renovations - Preparing Floor in $1,342.98 Construction Co. Planning/Engineering to Compensate for Terrazzo Floor Summary of contracts and change orders were received as infonnation of Council only and no action was required. Item No.7. Award of Bid - Jet Vac Truck - Water Resources Department. Administrative Services Manager Keziah reported by memorandum that on July 20,2001, staff received bids for a Jet Vac Truck for the Water Resources Maintenance Division. Bid tabulation is as follows: 99 e e e e e Cost $199,000 No Bid No Bid $220,180 $204,500 Rear~··.$.l8¡~¡832 Front - $189,832 $237,114 Vir inia Public Works Staff recommended Council award this bid to Twin-States Equipment Company for the sum of $183,832.00 and noted that there are sufficient funds budgeted for this item. Council Member Kilgore moved to award the bid to Twin~States Equipment Company for the sum of $183,832.00. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.8. Donation of Old Cell Phones. Administrative Services Manager Keziah advised by memorandum that the City of Monroe accumulates cell phones throughout the year that are no longer usable by the City. Council had approved these phones for surplus with the auction items for FY 2001. G.S. 160A-279 states that the City may donate these phones to a non-profit agency if and only if Council so decrees and the agency is a non-profit to which the City has authority to appropriate funds. Both scenarios hold for Turning Point. Staff recommended Council donate these used cell phones to Turning Point for use in their abuse prevention program. Council Member Kilgore moved to donate the used cell phones to Turning Point. Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No.9. Amendments to Water and Sewer Extension Policy and Correction of Water Pressure Problems on Carmel Oaks Lane. Water Resources Director Colbath advised by memorandum that several homes built within the last 10 years in the Cannel Village Extension Subdivision (Phase I) have experienced water pressure problems. While the psi range meets minimum State requirements, they compromise the installation of irrigation systems and other appliances requiring higher flow and pressure. Currently, six homes experience these pressures due to elevation. The City's Fire Department, in conjunction with the Water Resources Department, have evaluated the fire suppression capabilities in this area and found them to be adequate. 100 e e e e e Staff evaluated three alternatives for increasing pressure to this area: 1) Extend an upper zone water main to the area. This option was eliminated due to being cost prohibitive based on a preliminary estimate of $800,000. 2) Create a separate small pressure zone complete with redundant pumping facilities and hydro-pneumatic pressure storage. This would be designed to serve the existing homes above the 640-foot elevation contour, in addition to any future homes built above this elevation. Estimated cost = $200,000. 3) Install individual booster pumps on the existing homes with a finished floor elevation above 640 feet. These pumps are similar to the well systems used by many residents not having City water service. The approximate cost per installation is $1,600. The Environment and Water Resources Committee and staff recommended the following: 1) Participate in the cost of installing individual booster pumps on any existing home or lot in the Carmel Village subdivision with a finished floor elevation above the 640-foot elevation contour, up to a maximum amount of $1,600. Installation will be optional at the owner's request, and will be completed by a licensed plumber. The City will procure competitive bids from licensed plumbers for the homeowner's convenience. 2) Once installed, the homeowner will assume ownership of the pumping system, and be responsible for all future operating, maintenance, and replacement costs. 3) Adopt amendments to the Water and Sewer Extension Policy to fOTI11alize the City's position related to upper and lower zone water extensions. 4) Require any property above the 640-foot elevation contour, and desiring service from the lower pressure zone, to have recorded as a condition on any building peTI11it the requirement for the owner to install pressure boosting equipment on their water service line, at their sole cost and discretion, if they desire water pressure higher than supplied ftom the City's system. Council Member Kilgore moved to adopt the amendments to the Water and Sewer Extension Policy and all other recommendations of the Environment and Water Resources Committee (as outlined above). Council Member Keziah seconded the motion, which passed unanimously with the following votes: AYES: Council Members Kilgore, Keziah, Smith, Mayor Pro Tem Bazemore, and Mayor Davis None NAYS: The Water and Sewer Extensions Policy is hereby incorporated as a part o/these Minutes as "Exhibit A ". 101 e e e e e REGULAR AGENDA Item No. 10. Public Hearinszs. Mayor Davis explained the procedures the Council follows in conducting public hearings and taking action thereon. A. City of Monroe Standard Specifications and Detail Manual. Mayor Davis opened this duly advertised public hearing. Council Members Hargett and Jordan arrived during the public hearing at 6:32 p.m. and 6:35 p.m. respectively. Engineering Director Jim Loyd advised Council that since December 2000, the Engineering Department, in conjunction with the Planning and Development Department and the Water Resources Department, has been preparing the proposed City of Monroe Standard Specifications and Detail Manual to assist in the development process for residential and commercial subdivisions and individual development sites. The Manual's purpose is to update and clarify existing City of Monroe practices and policies of land development and to provide developers, contractors, and engineers with the necessary technical direction for the successful completion of projects within Monroe's jurisdiction. Engineering Director Loyd stated that there have been many steps to the process including presenting the Manual to the Environment and Water Resources Committee on May 15, 2001, to the Land Development Committee on May 17, 2001, and the Manual was also presented to the Planning Board on June 6, 2001. The Manual was given a full recommendation by the Planning Board on July 17, 2001. The Engineering Department and the Water Resources Department also mailed draft copies to fifty-seven developers, contractors, surveyors, and engineers on July 2, 2001 to solicit input. The Manual was also presented at a Development Issues Forum held July 19,2001, at which 26 area developers, contractors, surveyors, and engineers were in attendance. To date, only minor comments have been received, with the greatest concern being the proposal to increase pavement structure and the proposal to require sidewalks on both sides of subdivision streets. Engineering Director Loyd reported that the Engineering Department is recommending a number of changes to current practice to promote a quality end product and to enhance the quality of life for the citizens of Monroe. There are some cost savings, as well as cost increases, included in the proposed Manual. Primary changes that are recommended and included in the Manual are as follows: . Street pavement widths are to be reduced for residential streets by 2 feet, from 20 feet to 18 feet for the 45-foot right-aI-way and 24 feet to 26 feet for the 50-foot right-aI-way. . A reduction in the developer's warranty period is recommended from 18 months to 12 months to coincide with the typical warranty period provided by his contractor. · Addition of new design specifications for water main and sanitary sewer main construction. · Addition of a material and manufacturer list to facilitate shop material submittals for water main and sanitary sewer construction. · Reduction in time period for disinfection testing of water lines from 48 hours to 24 hours. · Checklists and certification forms are provided for the developers and his contractors to track progress and compliance with City of Monroe requirements. 102 e e e e e . The subdivision developer is to become solely responsible for the costs of quality assurance testing for new roadway construction, eliminating participation by the City of Monroe in these costs. · The width of sidewalk is proposed to increase from 4-foot to 5-foot with installation being required on both sides of the constructed street. · Sidewalk is proposed as a requirement along the property frontage for residential/commercial subdivisions and non-single family lot developments. · An increase in pavement structure for residential streets is proposed to 8 inches of aggregate base course, 2 inches of binder asphalt, and 1 inch of surface asphalt. Provision is made to reduce the pavement structure with proper analysis of the soils within the development, but not less than 8 inches of aggregate base course, and 1 t inches of surface asphalt. · Addition of concrete control monument requirements for subdivisions. . A re-inspection fee is provided for subdivision and storm water management facilities to cover the costs for re-inspection of construction reported to be complete and found to be otherwise during final inspection. Engineering Director Loyd noted that divisions are also included in the Manual for a local Erosion Control Program and Stormwater Management Program. These are programs that staff is currently working to develop to meet compliance requirements of the Phase II Final Rule of the Clean Water Act. They will be presented to City Council for consideration and action at a future date. Staff recommended that Council approve an Ordinance to adopt the City of Monroe Standard Specifications and Detail Manual. Staff also recommended that Council amend the Fees Schedule to include a $40.00 fee for reproduction costs of the Manual and a $100.00 re- inspection fee for subdivisions and stormwater management facilities pursuant to Standards 07.08, 07.10, 07.11, and 07.12 of the proposed City of Monroe Standard Specifications and Detail Manual. City Manager Spell advised Council that the purpose of the Manual is to help standardize and clarify design requirements and should help the development community. Staffs interest is to have consistency in design, construction, and inspection, and the Manual should satisfy this objective. In addition, the requirements that are included in the Manual would apply internally, including the City's Water Resources Department and the Street, Electric, and Natural Gas Divisions. City Manager Spell noted that the Manual is a dynamic document and revisions will be made periodically. Mayor Pro Tern Bazemore concurred with the recommendation, but recommended that sidewalks be installed on only one side of subdivision streets, which would reduce costs. Mayor Pro Tern Bazemore moved to amend the recommendation to include sidewalks on one side of the street in new subdivisions. Council Member Smith agreed that sidewalks on one side of the street would be acceptable if they were in cul-de-sacs, but would not be appropriate for through streets. Council Member Smith questioned the item pertaining to street pavement widths for the 50-foot right-of-way. Engineering Director Loyd clarified that the recommendation had been changed to 24 feet to 22 feet for the 50-foot right-of-way. Council Member Smith inquired about the date for the Phase II Final Rule of the Clean Water Act. Engineering Director Loyd stated that it is March 2003. In 103 e e e addition, Council Member Smith expressed a concern regarding the $40 reproduction cost and the $100 re-inspection fee. Engineering Director Loyd stated that the fees have always been included with the subdivision ordinance~ City Manager Spell advised that the re-inspection fee was included for Building Standards in the budget that Council adopted for the current year, however, the fee did not apply to inspections provided by the Engineering Department. Council Member Kilgore inquired about the County's re-inspection fee. Engineering Director Loyd stated that the County did not have a similar fee. Council Member Kilgore questioned whether there were alternatives to the proposed recommendation that could keep the homes more affordable. Engineering Director Loyd responded that the fees are designed so the City can operate within the budget while still maintaining City streets, including newly developed roadways that are failing. Council Member Smith inquired as to whether there had been any major changes made since the time the Manual was presented to the Environment and Water Resources Committee. Engineering Director Loyd responded that there have not been substantial changes made, but clarifications were made to Page A2-9 pertaining to sidewalks along non-single family lot developments. City Manager Spell advised Council that the primary issues expressed by the development community have been identified. The key issues noted at a recent Development Issues Forum attended by developers, contractors, and the Home Builders Association were the increase in pavement thickness and the sidewalk requirement on both sides of subdivision streets. Council Member Kilgore infonned Council that he had not picked up his copy of the Manual until earlier that day and requested additional time to read the documents. Council Member Kilgore moved to continue the public hearing until August 21, 2001. Mayor Pro Tern Bazemore seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: e B. Proiect # 01-120-00018 - Subdivision Text Chani:!e - Delete Sections of the Subdivision Ordinance that are to be Included in the Desii:!n and Specifications Manual. Mayor Davis opened this duly advertised public hearing. Planning Services Manager Wayne Herron advised Council that the items should not be deleted until the Standard Specifications Manual had been adopted and therefore requested that the public hearing be continued. e Council Member Smith moved to continue the public hearing until August 21, 2001. Council Member Hargett seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: 104 . e e e . Co Proiect # 01-130-00011 - Zonin!! Map Chan!!e ReQuest - G-I (General Industrial) to B-3 (Hiehwav Business) and B-5 (Medical Facility) - 402 S. Sutherland Ave. - Approximatelv 4.05 acres - on S.W. Corner of Roosevelt Blvd. and S. Sutherland Ave. - City of Monroe- Tax ID# 09-191-006. Mayor Pro Tern Bazemore advised that he needed additional time to study this request, therefore, moved to continue the public hearing until August 21,2001 at 6:30 p.m. Council Member Smith seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: Item No. 11. Action from Public Hearine:s. A. Proposed Ordinance to Amend City of Monroe Fees Schedule. No action taken as the public hearing was continued until August 21, 2001. B. Proposed Ordinance to Adopt the City of Monroe Standard Specifications and Detail Manual. No action taken as the public hearing was continued until August 21, 2001. Co Proiect # 01-120-00018 - Proposed Ordinance - Subdivision Text Chan!!e - Delete Sections of the Subdivision Ordinance That Are to be Included in the Desien and Specifications Manual. No action taken as the public hearing was continued until August 21, 2001. D. Proiect # 01-130-00011 - Zonine Map Chan!!e ReQuest - G-I (General Industrial) to B-3 (Hie:hwav Business) and B-5 (Medical Facility) - 402 S. Sutherland Ave. w Approximatelv 4.05 acres - on S.W. Corner of Roosevelt Blvd. and S. Sutherland Ave. - City of Monroe- Tax ID# 09-191-006. No action taken as the public hearing was continued until August 21, 2001. 12. Closed Session - To Consult with City Attornev on Matters ReQuirin!! Confidentiality. Council Member Kilgore moved to go into Closed Session to consult with the City Attorney on matters requiring confidentiality. Mayor Pro Tern Bazemore seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: 13. Resolution to Open a Portion of Old Closed Session Minutes. Upon return from Closed Session, Mayor Pro Tern Bazemore moved to adopt Resolution R-2001-39 to open a portion of Closed Session Minutes: 105 e November 16, 1999 December 7, 1999 1 January 19 - 21,2000 3 . e e e RESOLUTION TO OPEN CLOSED SESSION MINUTES OR PORTIONS THEREOF R-2001-39 BE IT RESOLVED that the City Council opens the following Closed Session Minutes or portions thereof: Date of Closed Session Minutes Item Number Item Entitled November 2,1999 2 Litigation: John M. Fagala et.al. v. City of Monroe / Hayden L. Chaney et.al. v. City of Monroe Discussion of Real Property Acquisition Real Estate Acquisition Litigation: John M. Fagala et.al. v. City of Monroe / Hayden L. Chaney et.al. v. City of Monroe January 19 - 21, 2000 4 City of Monroe vs. McClain February 1, 2000 1 Approval of Minutes of Closed Sessions of October 19, 1999, November 2,1999, November 16, 1999, December 7, 1999 and January 10,2000 February 1,2000 3 Acquisition of Real Estate February 15,2000 2 Real Property Acquisition March 7, 2000 1 Minutes of Closed Sessions of January 19 - 21, 2000, February 1, 2000 and February 15,2000 March 7, 2000 2 Resolution to Open a Portion of Closed Session Minutes March 7, 2000 4 Real Property Acquisition March 7, 2000 5 Real Property Acquisition April 4, 2000 1 Minutes of Closed Session of March 7, 2000 April 4, 2000 2 Acquisition of Tyson Property at 204 S. Hayne Street April 4, 2000 3 Skyway Property - Civic Center Site July 18,2000 1 Approval of Minutes of, Closed Sessions of April 4, 2000, May 24,2000, and June 20, 2000 106 July 18, 2000 e August 15,2000 August 15,2000 September 5, 2000 November 7,2000 e November 7, 2000 November 7, 2000 December 4, 2000 December 4, 2000 December 4, 2000 e February 6,2001 February 6,2001 2 Resolution to Open a Portion of Closed Session Minutes Property Acquisition 2 Approval of Minutes of Closed Sessions of July 18,2000 and August 1,2000 Property Acquisition - Skyway Drive Property, (James W. and Wife, Teresa Collins Tice) Approval of Minutes of Closed Session of October 17, 2000 and November 2, 2000 2 Opening of Portion of Closed Session Minutes 3 City Manager Contract Closed Session. Property Acquisition - Gift of Franco Building 2 Property Acquisition- Tice Property 4 Minutes of Closed Session of November 7,2000 1 Meter Reading Contract - Griffin Management Corporation 2 Approval of Minutes of Closed Session of December 4, 2000 February 6,2001 3 Resolution to Open A Portion of Closed Session Minutes Adopted this 7th day of August, 2001. e Council Member Kilgore seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: e 107 · There being no further business, Council Member Kilgore moved to adjourn. Mayor Pro Tern Bazemore seconded the motion, which passed unanimously with the following votes: AYES: Council Members Hargett, Jordan, Kilgore, Keziah, Smith, Mayor Pro Tern Bazemore, and Mayor Davis None NAYS: The Regular City Council Meeting of August 7,2001 adjourned at 7:07 p.m. e Attest: e ~~fQ~ Minutes transcribed by Donna Helms, Officc Administration Contractor · · 08-07-01 108 e EXHIBIT A CITY OF MONROE, NORTH CAROLINA WATER AND SEWER EXTENSIONS POLICY I. Purpose of Policy and Definitions The City of Monroe desires to provide an equitable means of financing the orderly extension of water and sewer mains and system facilities to serve the growing needs and orderly development of the community. This purpose of this policy is to provide the methods to accomplish this objective. Except as the context specifically indicates otherwise, the following terms and phrases, as used in this policy, shall have the meanings hereinafter designated: e "Small subdivision" shall mean a subdivision of property in which the average size of each lot in the subdivision is one acre or less. e e e II. Financing and Responsibility for Extensions of Water and/or Sewer Mains Extensions of water and/or sewer mains to the City of Monroe systems may be made as follows; A. Extensions for which a private property owner or developer is responsible for all financing, engineering, permitting, construction, record drawings, and warranty as required to complete the extensions, except where City financial participation qualifies as defined by Section V and/or VII of this policy. For property outside the City limits, such requests are subject to the approval of City Council and such approval may be denied or subject to further conditions. 1. By a property owner or developer who desires to serve one or more lots of an existing subdivision and/or undivided tractCs) ofland greater than one acre in size. 2. In accordance with the City of Monroe Subdivision Ordinance for extensions within proposed new subdivisions. 3. By a contract approved by the City of Monroe between two or more owners and/or developers who desire to serve two or more lots of a new or existing subdivision and/or undivided tracts greater than one acre in size, with the contract clearly delineating the shared responsibilities between the parties for financing, engineering, permitting, construction, record drawings, and warranty as required to complete the extensions. The City's approval of the contract is as to appropriate legal form and compliance with all provisions of this policy, and is not intended to dictate the financial sharing of costs and responsibilities reasonably negotiated and agreed between the owners or developers. For purposes of defining City participation under Section V of this policy, each tract or lot shall be considered a separate project. B. Extensions for which the City of Monroe is responsible for all financing, engineering, permitting, construction, record drawings, and warranty as required to complete the extensions. 1. By the City of Monroe when required by Section III of this policy. 2. Within the corporate limits of the City, by written petition of a minimum of 25% of the property owners owning a minimum of 25% of the front footage along a public street in an approved developed or developing small subdivision when the requests are by owners who have purchased individual lots in the e e e . . subdivision and not the developer of the subdivision or the developer's successors. As part of the request, each petitioning Owner shall commit in writing to pay all tap fees and cost recovery fees required by the City's Fee Schedule in advance of the design and construction of the extensions (except when financing is permitted under Section IX.C of this policy). The City's commitment to install water and sewer mains under this paragraph may be limited annually based on funding appropriated, and may be limited to subdivisions where the respective existing water and/or sewer main is adjacent to or within 400 feet of the outer boundary of the particular subdivision. Unless defined otherwise by City Council under Section VI, the City's commitment shall also be limited to qualified (25% of owners and frontage as defined above) sections with a minimum length of 1000 feet along the public street, except where the street length from the existing main to the end of the subdivision or end of a cul·de·sac is less than 1000 feet, or in the case of sewer, if topographic or geographic conditions limit extensions of a single main along the public street to less than 1000 feet from the existing main. If a subdivision crosses the same public street in two or more separate locations with a gap between which is outside the subdivision and measures greater than 400 feet in length along the street, the City is not obligated to extend a main across this area outside the subdivision to serve the further sections of the subdivision until such time as the further sections come within 400 feet of the existing main as measured along the street. In some cases, as determined by the Director of Water Resources, where lots in an approved small subdivision are lower than the public street, a sewer collector main may be installed in a dedicated easement along the rear of the lots instead of within the street, and are considered the same as mains in a public street for the purposes of this policy provided that they serve the same purpose. Owners of lots outside the City limits are not eligible to petition for water or sewer mains under this provision. 3. By declaration ofthe City Council that an extension of water and/or sewer is in the overall best interest of the City and the public, as defined in Section VI of this policy. III. Extensions and Facilities Provided by the City of Monroe The City of Monroe will provide the basic facilities for the water and sewer system necessary to provide service within the corporate limits of the City of Monroe. These basic facilities include water and wastewater treatment plants, elevated and ground water storage tanks, high service and booster water pump stations, water mains sufficient to transport water to elevated tanks, water pump stations, and to provide hydrants for fire protection within existing publicly-dedicated streets in accordance with the City's water system design standards, sewer interceptors and outfalls which are necessary to connect sewer collector mains serving adjoining property from public streets (or in an easement along the rear lot lines which serve the same purpose as service from the public street) to the major trunk sewer lines transporting wastewater to a treatment plant, including wastewater lift stations and force mains which serve the same purpose as an interceptor or outfall. The City of Monroe will make the necessary improvements to these basic facilities as provided in a Capital Improvement Plan, consistent with budgeted resources and legal requirements. IV. Extensions Initiated by Property Owner or Developer A. Property owners or their agents may request to the City's Director of Water Resources for an extension of water and/or sewer to serve existing development, a proposed new development, or a proposed new subdivision. Such requests shall be in the form of a written letter and shall include property maps of sufficient detail to identify the service location(s) for the extensions. Requests to serve property outside the City limits may be subject to approval by the City Council and the City Council reserves the right to refuse approval when deemed not in the best interest of the City to serve. e . e e e B. For extensions under Section ILA. of this policy, the owner/developer shall provide for all engineering, surveying, preparation of permit applications, right-of-way acquisition, construction with a one-year warranty, testing, engineering certification of completed construction in substantial compliance with approved plans, and record drawings. Engineering plans shall be approved by the City's Director of Water Resources and shall be permitted under regulations of the State of North Carolina prior to beginning construction. All engineering design and construction shall conform to the City's design standards and technical specifications. All other applicable permits or right-of-way agreements required for construction, including but not limited to sediment and erosion control permits, Section 401 water quality certification and Section 404 Nationwide Permit, NCDOT and/or CSX Transportation Encroachments, encroachments in City of Monroe streets from the City Engineer, and utility easements from adjoining property owners, shall be obtained before construction affected by the governing requirement begins. C. To the maximum extent practical, new water and sewer extensions shall be in public street rights-of- way. However, when not feasible as reviewed and agreed by the City, extensions may be provided in utility easements assigned to the City of Monroe. D. The City of Monroe water and sewer extensions policy approved by City Council on November 5, 1985 is repealed effective April 1, 1995. This includes the repealing of all policies providing for one- third financial participation by the City of Monroe in water or sewer extensions. E. The City of Monroe Water Resources Department will consider the installation of a low pressure grinder pump system provided the following criteria are met. 1. Administrative and Design Requirements: a. Developer shall contract the services of a North Carolina Professional Engineer to evaluate the proposed subdivision and submit plans, specifications and a hydraulic model demonstrating the designed low pressure grinder pump system is in accordance with NCDENR design criteria. Design shall include all necessary gravity sewer mains, pump stations and forcemains required for the conveyance of the sanitary sewer to an existing City owned gravity sewer main or pump station. b. 30% or greater of the lots in the proposed or existing subdivision, as measured by individuallot count, shall have lake frontage to a City owned Lake. c. It shall be demonstrated by the Developer's Engineer, that proposed gravity sewer to serve all lots in the subdivision will exceed depths greater then 25 feet, if gravity sewer is installed within the subdivision road right-of-way at a depth capable of providing all homes with a conventional 4-inch gravity service lateral connection. d. If the subdivision is outside existing limits, voluntary annexation ofthe development shall be required per the City's Planning Department requirements. e. Developer shall grant additional easement sites for pump stations and gravity sewer mains and forcemains within the subdivision when determined by the City to be necessary for future collection system infrastructure consistent with the collection of sanitary sewer for the larger drainage basin area containing the proposed subdivision. f. The Developer shall be responsible for the cost of extending gravity sewer mains and . . e e e 2. forcemains to the subdivision other than the low pressure system that are integral to the City plans to provide sewer service to the subdivision and the larger drainage basin area. Developer shall participate in an oversizing agreement with the City to install these lines when deemed necessary by the City. Construction Requirements: a. Developer shall hire a Class A Licensed North Carolina Contractor and shall be responsible for all construction and testing costs to install the low pressure forcemains, designated shut off valves and check valves, service line connections and the minimum number of grinder pump units required to meet scour velocities in accordance with the NCDENR regulations. b. Contractor shall install the Low Pressure Grinder Pump Systems in accordance with written City of Monroe Specifications covering this type of collection system. Specification shall limit the type of manufacturer of the grinder pumps to a specific brand and model (or approved equal). c. Contractor shall construct of all convention gravity sewer, pump stations and forcemains necessary for the conveyance of the sanitary sewer to an existing City owned gravity sewer main or pump station. d. Grinder pumps and service lines not installed by the Contractor, shall be the responsibility of the Home Builders to install per the City of Monroe Specifications. e. Contractor or Home Builder shall be responsible for all testing costs of grinder pump and service in accordance with City of Monroe Specifications. 3. Maintenance: a. City of Monroe Water Resources Department shall be responsible for the maintenance and operation of the low pressure forcemains within the subdivision and service lines up to the right-of-way and property line of each lot where a shut off valve and check valve shall be installed. Maintenance of the shut off valve and check valve shall be the Water Resources Department's responsibility. Maintenance of the individual grinder pump and service to the end of the property and the right~of~way shall be the responsibility ofthe subdivision homeowner. b. Subdivision Homeowners shall be required to sign a Service Agreement with the City of Monroe outlining their responsibilities pertaining to the grinder pumps. Agreement shall grant the City right-of~entry on the property to correct any all situations with the operation of the grinder pump that effect operations and maintenance of the City Water Reservoirs and/or danger to the Public Health. c. Subdivisions Home Owners, at their expense, shall be required to sign a 10 year maintenance service agreement with a service company actively engaged in the maintenance of grinder pump systems. The Maintenance Service Company shall be selected rrom an approved list provided by the City of Monroe. City of Monroe shall review the maintenance service agreement and grant approval prior to its execution. An executed service agreement and maintenance agreement shall be required before a certificate of occupancy is released on the building permit of each home with the · · e · · subdivision. The maintenance agreement shall have an annual roll over clause, whereby every year the contract is extended an additional year. Homeowner shall have the right to terminate the maintenance agreement contract, however a new agreement with another company from the City approved list must be signed prior to termination. Maintenance agreement shall include the initial testing of the grinder pump unit and service line prior to acceptance by the City. d. Subdivision Homeowners shall be responsible for notification of the yearly roll over of the maintenance service agreement. Notification shall be sent to the Water Resources Department for verification. Failure to renew the maintenance service agreement by the established and specified date will result in the disruption of water service until such time as the service agreement is renewed. e. Subdivision Homeowner shall be responsible for the replacement of a grinder pump that has been damaged due to negligence, natural disaster, or age and all such other causes not specifically listed. v. Request Accepted by City Council in the Public Interest for Commercial and Industrial Development of $1.0 Million or Greater Based on Cost Recovery A. Effective upon City Council adoption of this policy, for proposed commercial and industrial development generating an increase in taxable property value of $1.0 million or greater, as verified by the construction cost assessed on the building permit, the owner may provide the City guaranteed minimum water and/or sewer use by the customer of the development for the first five years of operation. The City wi11 calculate from these minimums at CUITent water and/or sewer rates the minimum revenues from usage charges to be co11ected (not including fixed charges by meter size), minus all marginal costs for providing the service at the minimum use (power, chemicals, sludge disposal costs, etc., which increase with increasing water or wastewater treatment, distribution, and collection). The City will also estimate the construction cost of the extension required to serve the owner's request. If the minimum revenues over marginal costs are sufficient to recover the construction cost of the extension in five years or less, and the customer of utility service from the development signs a "take or pay" contract as described in Paragraph V.c. of this policy, the City Council may appropriate the funds and declare it in the public interest for the City to reimburse the cost of construction of the extensions. However, in such case, the owner retains responsibility for providing the engineering, surveying, preparation of permit applications, right-of-way acquisition, contractor for construction with a one-year waITanty, testing, engineering certification of completed construction in substantial compliance with approved plans, and record drawings. The City may provide the reimbursement to the owner in annual insta11ments effective on the date the customer's meter is installed and water service activated and a sufficient amount of the reimbursement may be withheld to cover the City's losses if the customer has failed to meet the conditions of the "take or pay" contract. B. When the City determines that the construction cost of a water and/or sewer main extension for a $1.0 million or greater commercial or industrial development can not be fully recovered within five years by the method defined in Paragraph V.A., the City may further consider one-third of the additional anticipated property tax revenues for five years at the present ad valorem rate resulting from the development's value as determined from the building permit. If this additional revenue consideration generates a total payback in five years or less (payback determined considering both water and sewer utility minimum revenues over marginal costs and one-third of City ad valorem taxes) , the City may pay the cost of construction of the extensions and the City Council will agree to transfer sufficient property tax revenues to the Water and Sewer Fund over the five years to achieve cost recovery for the fund. If e e e e e considering one-third of additional property tax revenues still does not generate a payback in five years or less, the City may propose a cost sharing percentage of the total cost of the extensions or a ceiling contribution which will be recovered by water and sewer revenues and one-third of tax revenues within five years. C. In order to guarantee the minimum use stated by the owner, the customer which will use the water and/or sewer service after completion of the extension shall sign a "take or pay" contract with the City of Monroe which guarantees annual payment of usage charges up to the minimum quantities specified in the contract during the recovery period. The contract shall also include the latest date usage will begin and the recovery period (five years or less, as calculated under Paragraph V.A.). At the end of each year during the recovery period, the City of Monroe will review the account and may bill the customer for any difference between guaranteed minimum usage and actual metered usage at the usage rate then in effect. D. Property otherwise eligible for City participation under this Section but remaining outside the corporate limits of the City of Monroe shall not be eligible for any City participation under this Section until the property becomes incorporated into the City limits. However, if the property on which an eligible development is constructed should become incorporated into the City within two years after the water and/or sewer extension is completed, the owner may receive reimbursements under a "take or pay" contract retroactive to the date of initial activation of the water and sewer service to the development. VI. Extensions Directed by City Council in the Public Interest A. In special circumstances where it is necessary to serve the overall public interest, as determined by the City Council, extensions may be made by the City of Monroe. Such circumstances shall be specifically defined in a resolution adopted by the City Council, including the public interest issues which are satisfied. Such issues may include, but are not limited to the following: (1) remedy for a public health emergency; (2) substantial development which will spur significant growth in the local economy, job market, or both; or (3) when the service of water and sewer to a property provides substantial or strategic overall benefit to the City, such as by substantial or strategic growth of other City utility services or by strategic annexation. The City Council shall designate in the adopted resolution as part of this approval the source of funding for the City's contribution to the cost of these extensions. B. If determined to be in the best interest of the City of Monroe, the City Council may authorize the purchase of part of or all of another water and/or sewer utility system, whether publicly or privately owned, and authorize the necessary extensions by the City of Monroe to connect such purchased systems to the City's system. Prior to such approval, the City shall investigate the integrity of such system(s) and appraise the appropriate value of such system(s) in order to determine a fair price. VII. Over sizing of Water and Sewer Extensions for System Improvement During the City's review of engineering plans submitted by a property owner or developer under Section II.A of this policy for water and sewer extensions, the Director of Water Resources shall determine if the sizing of the proposed extensions is consistent with the City's plan for growth and development of the overall water and sewer systems. If the Director determines that larger facilities are desired for the system than the owner/developer needs for his/her proposed development, the City may require that the larger facilities be extended. In such case, the City will reimburse the owner/developer in accordance with a contract between the City and the owner/developer after acceptance of the extensions for the difference in fair market construction costs between the larger facilities installed and the facilities required by the owner/developer, except that no reimbursement shall be due for a water main or gravity . e e e . sewer main by the City of Monroe unless the size required of the main is greater than 8". The fair market costs may be mutually agreed by negotiation if the City confirms by independent estimates that the oversizing cost is competitive. However, the City of Monroe may, if deemed necessary to achieve competitive pricing, assume responsibility for construction of the extension which may be oversized and receive formal competitive bids for both options from contractors for the work. In such case, the City may award a contract for either the oversized alternative or the alternative to serve the subdivision/development provided that the property owner/developer agrees to pay the cost for the alternative to serve his/her subdivision/development. If àn owner/developer refuses to pay the competitively determined price, the City of Monroe may reject all bids. VIII. Petitioning for Connection to City System for the Purpose of Extending a Private Water and Sewer System A. A property owner or owner's agent may petition for a connection to the City's water and sewer system for the purpose of extending a private water and sewer system if permitted, operated, and maintained in compliance with all State regulations, provided that such proposed extension is exempt from all of the criteria stated in Paragraph VIII.B. The private system shall be confined to a single tract of property and development and may not extend beyond the boundaries of the single tract, nor may connections to serve adjoining property be made. The City shall install a "master meter" at the connection to the public system and the owner of the private system shall be solely responsible to the City of Monroe for the payment of all fixed and usage charges for both water and sewer based upon metered usage at the "master meter". The City of Monroe is never under any obligation to accept as public in the future any private system, and the City may be permitted to accept private systems only after such systems are upgraded to meet all City water and sewer design standards in effect at the time of such request and new water meters are appropriately installed at the total expense ofthe private owner. B. Water and sewer extensions which meet any of the criteria stated below shall be designed and constructed for dedication to the City as an extension to the City's public system: 1. Extensions in public streets or in public rights-of-way; 2. Extensions which cross property lines, or may serve connections to more than one property; 3. Extensions which may be further extended in the future to adjoining property and thereby extend City service to such property; and 4. Extensions that may be further extended in the future to provide a system benefit, such as the "looping" of a water main. IX. Water and Sewer Extensions to Areas Annexed into the City Limits A. Extensions to property annexed into the City of Monroe by voluntary petitions, including both contiguous and satellite annexations, shall be in accordance with Section II.A of this policy, except to the extent conditions of Section V and lor VII of this policy apply or when City Council deems that City financial participation is in the public interest as defined in Section VI of this policy. The specific interpretation of these conditions for the particular site shall be specifically defined in the terms of the annexation on which the City Council acts to approve the annexation. B. When the City of Monroe involuntarily annexes new territory into the corporate limits, the City of Monroe shall extend the basic facilities to serve the annexed area as defined in Paragraph III.A. of this policy or as otherwise specifically defined by the requirements of North Carolina Annexation law. These basic facilities shall be specifically defined in the written Annexation Plan and approved by City Council. Extensions beyond the requirements of Paragraph III.A shall be in accordance with applicable provisions . of Section II and other applicable sections ofthis policy. C. The City Council may establish financing plans for the payment of tap fees and cost recovery fees by petitioning individual property owners of small subdivisions when extensions are provided by the City of Monroe under Section 11.B.2 of this policy resulting from an involuntary annexation by the City, or when extensions are provided by the City under Section II.B.3, in the overall public interest. The Council may authorize a minimum initial payment of at least 10% of the total, specify the financing period not to exceed 5 years, and may establish an interest rate within limits prescribed by law for the amount financed. The City of Monroe will bill the installments monthly either as part of the utility bill or by a separate invoice, and may disconnect utility services for delinquency in payment of these installments as defined by the City's Customer Service Policies. Installment payments beyond the initial payment and the financing period may be held in abeyance until the water and/or sewer main extensions are completed by the City and ready for service. The City Council may also limit the period of time in which individual owners in developed or developing small subdivisions may apply for service under an installed payment program. e -e e . x. Water Pressure Zone Service Policy A. It shall be the City's policy to serve all properties with a land elevation of 640 feet or below from the City's "lower" water distribution system pressure zone. This is synonymous with the 763-foot reservoir overflow gradient. Any property above the 640 foot ground elevation contour desiring service from the lower pressure zone shall obtain the approval of the Water Resources Director only after demonstration of adequate fire flow capacity and meeting minimum State requirements. These properties shall also have recorded on their final plat and any building permits a condition requiring the owner or developer to install pressure boosting equipment on each customer water service if they desire water pressure higher than supplied from the City system. As amended this 7th day of August, 2001.