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Bluff, Chestnut, Bayberry, Morgan Cliff, Flagstone, Silers Fen, Rhododendron, Arbutus, <br />Bolinas, Serrano, Majestic, Umbrio, Madera and Chimeneas streets. This area has a total tax <br />valuation of $193,226,284 and one cent equals $18,515. The neighborhood in question is in the <br />extraterritorial planning jurisdiction of Chapel Hill and within the urban services boundary. <br />DISCUSSION <br />This issue is not a question of emergency services delivery or life safety. It is an issue of <br />planned urban growth and how State regulatory control and insurance ratings impacts <br />homeowners financially. Through the mutual aid agreements, the Town of Chapel Hill Fire <br />Department historically and currently responds to reports of fires or other life threatening <br />incidents in this neighborhood and takes necessary actions to save life and property until North <br />Chatham VFD units arrive. <br />The Town of Chapel Hill has three distinct options relative to this request: <br />Option 1 - Refuse to provide the protection outside Town limits except for mutual aid. This <br />option does not resolve the financial and insurance issue for the homeowners in the <br />neighborhood but does not withhold any potential lifesaving or property saving services they <br />currently receive through the standing mutual aid agreements. This also creates the question of <br />what to do about the small Greater Chapel Hill Fire District of Winter Road and Meadow Lane. <br />Since through mutual aid we continue to respond into this area without financial remuneration <br />for our services the Town would not benefit from the additional revenue created by the fire <br />service district. Since we in Chapel Hill benefit significantly from neighboring fire departments <br />mutual aid assistance as well it would be an extreme risk for us to terminate our mutual aid <br />agreements. <br />Option 2 - Require that the affected residents petition for annexation in order to receive <br />primary fire protection. This is a viable option and would provide the residents the full range <br />of public services of the Town of Chapel Hill including fire protection. This would appear to be <br />the quickest and easiest way to resolve this issue but would require the residents to petition the <br />Town to initiate annexation. However, these residents already enjoy the benefits of Chapel Hill <br />residency because they receive mutual aid from the Town's fire and police departments, have <br />access to other Town amenities such as parks and library, and receive OWASA water and sewer <br />since they are within the Urban Services boundary. There is little motivation for them to petition <br />for annexation other than to mitigate the increase in their homeowner's insurance premiums, if <br />other options are not available. The difference between the cost of paying Town taxes (49.4 <br />cents) in the case of voluntary annexation and the increase in their insurance premiums is <br />unknown. <br />Option 3 — As requested, enter into a service agreement with Orange County to extend our <br />current fire district area to provide primary protection to the affected neighborhoods. This <br />option is requested by Orange County and also requires approval by the State Fire Marshal's <br />office. We would enter a service agreement with Orange County and become the primary fire <br />jurisdiction for the affected area. Residents would realize the ISO rating of the Chapel Hill Fire <br />