DATE: October 4, 2005

PRESENT: All Board members were

GUESTS: Nearly 200 residents attended this meeting

Tom Hauck, FHA President, called the meeting to order at 7:03 pm

The first order of business was a guest speaker from the Chatham County Water Department

Mr. Will Baker, Public Works Utility Director for Chatham County, spoke to the group about the Water Department in Chatham County. Two contacts for FV residents’ questions are Will Baker 542-8270 and Roy Lowder 542-8219. Mr. Baker believes in informing customers of problems as quickly as possible and explaining what will be done to correct them. He will shut the plant down immediately if there is any danger to the customers. At the current time the water plant is manned 24/7 with 3 people; they are in the hiring process and are hampered by a lack of licensed and certified candidates.

There were many questions from the residents to Mr. Baker. The questions regarding specific chemical content of the water will not be included.

If the water is safe, why does it taste so bad? It could be the chemicals used to treat the water to make it safe. It could also be, if the customer doesn’t use a lot of water, that as it sits in the pipes, it picks up a taste. Suggestion: put a filter on your faucet.

Will you have a flushing program from the pumping stations out? Yes, there will be a blow off system.

Explain why there is a difference in cost between Chatham County water and Pittsboro city water? The lower cost of Pittsboro water is due in part to the age of their plant; it is older and has been paid for, so the overhead costs are lower.

Regarding the problems in the recent citation, would they be taken out by filters in our homes on our water pipes, faucets and in refrigerators? Residents should check with their filter manufacturer to get the answer to that problem. Suggestion: UV filters are probably the best but they are expensive.

Will Chatham County residents be subjected to water restrictions due to the lack of rain? We requested voluntary restrictions the last week in September which we hope will result in 10-20% reduction in water usage. It’s very possible that by 10/9 or 10/10 we will impose mandatory restrictions.

How long should water be boiled to make it safe? Once it is brought to a boil, it should be boiled for 4 to 5 minutes.

How often should you check a filter on your lines or on your faucet? You should check it once a week. Sometimes filters trap harmful materials/organisms, so they should be checked regularly.

What impact will the development in Chatham County have on the water system and will the developers help in any way? Briar Chapel will build a tank. However, the county should look at the growth as a whole.

There will be a new pumping station on Jack Bennett Road with an elevated tank. We share the same water intake as Cary.

The Board thanked the gentlemen from the Water Department for giving up their evening to answer our questions.

Incorporation

(Note from Secretary: In the Incorporation section only, additional comments were added after the meeting to insure that complete and correct information was disseminated to the community on this important issue. In all cases, a note is included to that effect.)

Documents were passed out to all attendees at the Board meeting: a summary of the findings of the ANINC committee (separate file attached) and a Q&A sheet (Attachment B) of most commonly asked questions about incorporation. (These documents are attached to these minutes. Please refer to them for content.) Bill Sommers spoke about these documents and then opened it up for questions from the residents which follow.

What is R.B. Fitch’s relationship and what is his opinion of incorporation? He would have one vote. Members of the FHA Board met with him last week and he said he does not yet believe we need to incorporate yet but he has an open mind.

What is the population of the area outside of FV and how do we communicate to them? An FHA Board member spoke with the County Manager to set up a meeting 11/8 or 9 at the Courthouse for people impacted outside FV. There are approximately 150 registered voters in this area. The petition must be signed by 15% of registered voters in the area of incorporation. The residents outside of FV will be notified about it. (Data received after the 10/4 meeting indicates 85 residents and 64 registered voters outside FV. The meeting was confirmed for 11/9 in the County Administration Building)

Wouldn’t the commercial area of Briar Chapel that is in the incorporated area pay the majority of taxes since they would have a higher tax rate? It has not been determined what their rate of tax would be. We can’t say at this time that they would pay the majority of taxes. (Notes added after the meeting: It has not been determined what their rate would be and since nothing is current built there we can’t get a good estimate. When fully development they would, of course, pay taxes based on the assessed valuation and the tax rate set by governing board of the new municipality. )

Have you been able to ascertain how many incorporation requests were submitted to NC and how many were approved? About 25 applied and 14-15 were accepted. (Numbers confirmed after the meeting were from 1999-2004 24 applied, 13 were approved, 11 did not pass.)

Would incorporation replace the FHA and volunteers? No. The FHA would remain intact. The covenants by and large would remain intact. The incorporation might take over some of the more public functions being done by service groups. An example might be garbage collection.

It seems the reason for incorporation is based on fear. Maybe in 10 years Chapel Hill will want to annex us. Please talk about the cons. You are only presenting the positive side. The cons are another layer of government and it would cost the residents something. (Additional comments added after the meeting: The basic negative side is having to pay increased taxes for incorporation. Many people do not want another level of government thrust upon them and would prefer to wait until there was more concrete evidence of a real problem. Many of these objections are summarized in the Final Report on page 35, item 3.)

In terms of the political process at the state level, does it look for local positive support? Will we be successful if our senator and/or representative are against it? If Chatham County could pass a resolution that would have some influence. If Chapel Hill or Carrboro raised a strong opposition, we would have a difficult time. (Comments added after the meeting: And of course we need the backing of our state senator and house representative. If they do not back it or have an equivocal stand, then the proposed incorporation would not survive.)

Appreciate the observation that this might look like a white wash. The committee worked very hard to provide a Q&A sheet. Please review that very closely.

In order for this to pass are we going to have a vote of everyone in the community? That comes later. At the present time a petition signed by 15% of the registered voters in the proposed incorporated area must accompany the petition to the Joint Commission on Municipal Incorporation which contains the legally required detail on the proposed incorporation. Even if the General Assembly were to approve the incorporation petition, it would also require that a referendum be held on the issue of incorporation which needs to pass by a vote of 51% of the registered voters voting in the referendum. A negative vote would end the incorporation effort.

A memo was read by Fran Sherwin of the Long Range Planning Committee supporting incorporation. The committee is composed of Fran Sherwin, Bob DeVido, Dale Smith, Evy Barrow, Ed Farnan and Paul Ising. (This letter is Attachment C to the minutes)

If Chapel Hill’s population is above 50,000 people what happens? In 2010 the new census will most likely identify that Chapel Hill has over 50,000 people and they would be able to annex FV. (Comments added after the meeting: By law an area seeking incorporation must not be within 5 miles of a municipality that has a population of 50,000 or more – based on the federal census. Right now Chapel Hill’s official population is 48,000 plus. But if our incorporation petition were delayed until after the 2010 census – when Chapel Hill will have its 50,000 plus number – then an incorporation proposal from the Fearrington Area would have a nearly impossible chance of going ahead.)

The pace of development is very rapid and the change of us being annexed by someone within the next 5 years is a cinch. Cary can’t annex us because Jordan Lake is a natural barrier between us; if they tried, Chapel Hill and Chatham County would oppose it. Incorporation doesn’t guarantee that FV would have the autonomy to influence the areas around it. The services provided would have to be contracted and they could be at the same cost or at an increased cost.

How long would it take to get the papers together for the next session of the legislature in 2006? We could prepare them for the upcoming session of the legislature although once it gets there it may be held over to another session of the legislature. If the community gives its ok by the November 13 annual meeting, then the ANINC committee will be able to put together the required material for the petition.

Do we have the support of our representatives? They have been informed all along the way. They knew we were having the meeting. It is suspected they would support it; they have not said stop it. (Comments added after the meeting: They have received copies of the Final Report and will be consulted all along the way. We are working for their support.)

The terms city and municipality have been used. What is the difference? They are interchangeable.

The ANINC committee work was commended as well as the FHA in looking forward. Has any thought been given to what will happen if incorporation is successful? We haven’t laid out a plan as yet. Our focus is getting the proper papers together for the legislature. (Comments added after the meeting: We will be working on a definite plan consistent with the legal requirements. The Final Report did consider this issue and proposes the general process. The Committee will work out the detail for submission to the Legislature. This more detailed proposal will be first presented at a series of public meetings prior to getting the required signatures.)


Where do we go from here? There are preference sheets here at the meeting and they will also be delivered to each resident by the block captains. Indicate your preference to have or not have incorporation. You can return your preference sheet to the FHA office or put it in your basket for the block captain to pick up when he/she delivers your November newsletter on 10/28 or 10/29. The preferences will be tallied and the results will be indicated at the 11/13 annual meeting. This is the first voice to indicate your interest. The next level is 15% of registered voters on a petition. Then there would be a formalized voting process.

What would it take as a municipality in terms of people, contracts signed, money, and resources? Could we see a projected income and expense plan? We are reluctant to commit the time to this only to find out the community is really not interested in incorporation. Details will be presented before the petitions are signed.

There is a concern that not enough information is known to make an intelligent decision. Is it possible to talk to others who have incorporated to learn their experience? The ANINC committee visited 2 towns in NC that incorporated. (Comments added after the meeting: The ANINC committee visited 2 towns in NC that incorporated while the Long Range Planning Committee also made one or two field trips to recently incorporated municipalities. The results of these trips are available upon request. All the detailed information that FHA has is shown on the website and if there are additional question, the members of the ANINC will be pleased to provide answers. Any additional paperwork will be at the FHA office and all residents will be able to get it there.)

Many thanks to Bill Sommers and the committee. In terms of continuity, we are all used to R.B. being here. If he is not here, it seems incorporation would be a good thing. It is a consideration that has been discussed.

Regarding law enforcement and ambulance service, could FV contract with them without being incorporated? There could be liability in doing this. (Comments added after the meeting: While the FHA or Cares may contract with ambulance service and hire guards under contract, contracting with actual law enforcement support may involve the FHA in a costly liability insurance protection. And all these services will have to be paid by some organization.)

Tom Hauck thanked everyone for attending and told attendees it is up to the residents to decide. There are two more meetings scheduled to discuss this: Thursday 10/6 from 12:30 – 3:30 pm and Monday 10/10 from 12:30 to 2:30 pm. They will both be held at the Gathering Place.

CPU (Contract Postal Unit)

This didn’t work out due to restrictions relative to selling things out of the Gathering Place. Members of the FHA Board have talked to R.B. Fitch about this and there may be another site in FV for this. The residents will be kept informed.

Bylaws changes

The Board recommends that you vote for the bylaws changes. The Galloway Ridge residents don’t own property so another level of membership has been set up for them to participate in the FHA at a 75% dues rate with no voting rights. The second is to bring our bylaws more in line with NC law.

What benefits will there be to FV residents? Will we be able to use Galloway Ridge facilities? Not unless we are invited. You can join the health club which gives you access to the restaurant.

Cynthia Jones, FHA Board member, has moved to Galloway Ridge and is no longer a voting member of the FHA Board.

Treasurer’s Report Bob Flower submitted 3 motions for consideration.

1. 2006 Annual Dues It is hereby moved that the FHA Board approve the assessment of $92.00 per residence to be carried over into the 2006 budget year. The 2006 Provisional Budget based on this carryover rate provides for full coverage of our projected operating expenses and a reserve fund contribution similar to the 2005 budget year. The motion was seconded and passed.

2. 2006 Provisional Budget It is hereby moved that the FHA Board approve the attached 2006 Provisional Budget for presentation at the November13, 2005 Annual Meeting. Income is projected at $135,280, operating expenses at $114,030, reserve fund expenditures at $35,000 and transfer to the reserve fund at $21,250. The motion was seconded and passed. The provisional budget is a separate file attached to the minutes.

3. Reserve Fund Management It is hereby moved that the FHA Board establish a policy and procedure for Management of FHA Reserve Funds as detailed in the proposal submitted to the Board of Directors by the Reserve Fund Committee on October 4, 2005. The proposal consists of a document explaining the process, a list of reserve fund ideas, and a sample spreadsheet for managing the spending plan. This policy and procedure is to be effective October 4, 2005 and will create a standing committee for managing the funds that reports to the entire board on a quarterly basis for review and approval. The motion was seconded and passed. (The process document is attachment D and the list of reserve fund ideas is attachment E to these minutes. The sample spreadsheet is a separate file attached to these minutes.)

Bob Flower also reported that the FHA monthly income was $1,809, expenses $5,523. The balance in the checking account as of 8/31/05 was $7,372.07. Our liquid assets total $187,612.34. (The full treasurer’s report and attachments are filed with these minutes.) The treasurer’s report was approved as submitted.

Bill Sommers reported on the Beaver Pond situation. The NCDOT has taken responsibility for 30% of the silt in the pond. The next step is to go to the Division of Water Quality to get their approval before the pond can be restored.

Edie Lange submitted a report for the Gathering Place: 69 reservations made for October.

Carol-Ann Greenslade, Grounds and Facilities, reported the following:

1. The exterior of the Gathering Place has been washed by John Covington. His bill for $350 is presented tonight for payment, along with the regular invoices for mowing and pond maintenance.

2. DOT reports delays in their paving & sealing work on all non-contract work due to the fuel costs & shortages.

3. Authorization is requested for repairs to the vinyl siding on the Gathering Place and the S&C kiosk, and for wrapping all 4 of the corner posts at the GP kiosk amounting to $535. A motion was made, seconded and passed.

4. Request FHA Board Sec'y send a letter of appreciation to RB Fitch for his having the S&C walkway graded and covered to the same spec's as the Village Way walkway. I'll be meeting with the Walk Fearrington group on 10/20/05.

5. All ponds except for the Beaver Pond are Fitch properties. This is in answer to the many BB notations on the website regarding the Village Way pond. R. B. Fitch is concerned about it and is working to get it back in balance.

6. Thanks to Henry Castner, John Custer and other volunteers, the "labyrinth" in the pine woods has been put to rights. They also removed a substantial amount of stilt grass.

7. Be watchful for ticks (spotted & deer) and for snakes, especially in the early evening as they will go to pavement for retained warmth.

Quality of Life, Drew Bratton, submitted the following report:

Quality of Life programs. The programs I participated in during the month of Sept. are the following.

These comments are summary. Comments and do not represent final detailed information and follow up activities for each program.

Communication Committee: A series of subjects were worked on for programs starting in ’06, including new columns for the FHA newsletter and new articles that will be of interest to the community. Additionally, the 25th Silver Anniversary newsletter commemorative issue concept was discussed.

Quarterly Service Meeting: This meeting included all of the different service group representatives throughout Fearrington Village. In attendance were David McGrain, Janice Hunt, Robert Cherniak, Harriet McGraw, and Charles Riddle. The guest visitor was Carol-Ann Greenslade, who talked about roads and maintenance throughout Fearrington. The meeting covered the mutual activities of FHA and the neighborhoods in Fearrington Village.

Audio Visual Seminar: The seminar was held by Lee Caldwell. He did an excellent job reviewing the equipment we have to offer to the residents. All of the clubs and institutions that use the Gathering Place were extended an invitation to attend this seminar.

Natural Disaster Program: An initial meeting was held with Art DeLuca to discuss this program for the ’06 year. More comments and program details will be available as we move into the start of the year.

Clean up Gathering Place: With Board approval we are going to do some fall cleaning by having the walls, the hall, small conference room and large room painted. We will be putting up new approved fire-retardant valances on the windows in compliance with NC state regulations. We will also have all the chair seats dry cleaned and treated with Scotch guard. Power washing the Gathering Place was completed earlier this month. Thanks to Carol-Ann Greenslade and Maggie Frantz for their significant contributions for this project.

FHA Office… Pat Harkins, Volunteer Office Manager, advises Sept. performance as follows: 41,875 copies made. Billing at $322.15 for the month. It was interesting this past month we had 107 outgoing faxes and 55 incoming faxes. Our new volunteer office day program is off and running, a special thanks to Kim Batchell, Darrell Andersen, and Phyllis Kantra, for the fine contribution they are making to office management.

Drew also asked for volunteers to clean the blinds in the Gathering Place.

Forms A, B and C were available at the meeting. Tom Hauck spoke of a recent situation where a resident had died and it was necessary to notify the next of kin. Because Form A/B was on file, the FHA office had the information. The door to the residence had to be broken down because no one nearby had a key. Form C is important because it enables residents to put their talents to use in the community. Forms A, B and C are available in the FHA office and on the FHA website. A copy will also be included with the incorporation information distributed to each residence by the block captains.

The meeting adjourned at 9:50 p.m.

The next regularly scheduled FHA Board Meeting will be Tuesday, November 1, 2005, at 7:00 p.m. in the Gathering Place.

Respectfully submitted,

Maggie Frantz, FHA Secretary
 

Attachment B: "Questions & Answers on Proposed Incorporation of Fearrington Village Area" can be viewed by clicking here.

Attachment B-1 "Fearrington Village Incorporation Preference Poll" can be viewed by clicking here or downloaded to your computer by clicking here.

Attachment C

MEMORANDUM to the FHA Board from the Long Range Planning Committee

TO: Tom Hauck, President of the FHA

FROM: Long-Range Planning Committee: Evy Barrow, Ed Farnan, Dale Smith, Fran Sherwin, Paul Ising, Bob DeVido

SUBJECT: Incorporation

DATE: September 28, 2005

We understand that the Board of FHA will discuss the issue of incorporation of Fearrington Village at its next regularly scheduled, public meeting on October 4. We commend you pursuing this very important subject at this time and for your plan to further inform the residents of Fearrington.

The Long-Range Planning Committee studied this matter in depth before recommending that the FHA Board establish an ad hoc committee dedicated to this vital issue. That committee, known as ANINC, under the leadership of Bill Sommers, has done a superb job of studying the issues; their reporting has been clear, comprehensive, and revealing.

The Long-Range Planning Committee is unanimous in our endorsement of the ANINC report and in favor of proceeding with the process of incorporation. We believe that it is important to use every possible means of communication so that our residents can be well informed on the pros and cons of this issue. This is a timely issue that needs the entire community’s thoughtful attention now.

We request that this letter be read at the October Board meeting and that it be included in the minutes of that meeting.”
 

Attachment D

FHA Reserve Fund Committee Proposal

Date: August 24, 2005

From: Robert Flower

This report is being submitted on behalf of the Reserve Fund Committee consisting of Carol-Ann Greenslade, Ron Boyington and Bob Flower. As requested, we have developed a proposal for managing the reserve funds held by the FHA. The concept is expressed in the text below along with the two attachments and is submitted for board review and approval. As you read the attachments, please consider that they are “examples” to demonstrate the concept and process. The actual content would come about as explained below.

When the board is in agreement, it is suggested that this process be formalized in the policy and procedures of the FHA.

Policy & Procedure: Management of FHA Reserve Funds

Purpose: Identify the use of reserve funds, provide a means of forecasting the amount of funds required and to manage the funds over time

Overview: A list of ideas and a plan for spending the funds based on prioritized and timed projects

Process:

1. Establish and maintain a standing reserve fund committee consisting of the Grounds & Facilities Director, Gathering Place Director and the Treasurer (Chair)

2. Treasurer is responsible for maintaining a list (Attachment 1 Example) and spending plan (Attachment 2 Example) for reserve fund projects

3. Cost and timing estimates to be determined by applicable directors

4. Quarterly review, prioritization and approval of the reserve plan by the FHA Board |

5. Approval of expenditures per existing FHA policy

Attachment E

Reserve Fund Ideas