Sec. 6.16. - Sewer rentals and assessments.

The council shall have the authority to charge and collect a sewer rental or fee on all houses connected with the municipal sewer system, and to levy special assessments as is provided by general law, which rentals and assessments are hereby declared a lien against the property served and the officer charged with the collection of the same shall have the power to collect by distress and sale as provided by law for the collection of ad valorem taxes.

Sec. 6.17. - Extension of sewer system beyond town limits.

(a)

The council is authorized and empowered to extend the sewer system of the Town of Chapel Hill outside and beyond the town limits of the town so that the residents of the territory surrounding the town may be provided with sewer services. To that end it is authorized and empowered to construct sewer systems outside the limits of the town, and to acquire by purchase or gift any sewer system now in existence or hereafter to be constructed within the area hereinbefore designated.

(b)

The council shall have the authority to charge and collect a sewer rental or fee on all houses or dwellings connected with such extension or extensions of the sewer system of the town beyond the limits of the town, and to levy special assessments as is provided by the general law, which rentals and assessments shall be deemed, and are hereby declared a lien against the property served, and the officer charged with the collection of the same shall have the power to collect by distress and sale as provided by law for the collection of ad valorem taxes.

Sec. 6.18. - Assessment policy of the council.

Without regard to the limitations stated in Article 10, Chapter 160A of the General Statutes or in any other provision of law, the council acting for the town may assume such proportion of the total cost of local improvements (including street improvements, sidewalk improvements, curb and gutter, and water and sewer improvements, or any one or more of them) as the council may from time to time deem appropriate.

Sec. 6.19. - Alternative methods of assessing cost of extending water and sewer lines within parcels divided into lots generally.

Provided, within areas of land which have been subdivided into lots, the governing body of the municipality, if in its opinion it would be more equitable to do so, may, as alternate methods of assessing the total cost of the extension of a water or sewer line, or both, to, within or through any of said areas, apportion the cost chargeable to such area either (1) equally against each of the lots capable of being served by such extension or (2) on the basis of the frontage of such lots upon a public street by an equal rate per foot of such frontage. When such sewerage and water lines are constructed along both sides of corner lots, not in excess of seventy-five (75) feet thereof, may be eliminated in determining the amount of assessment.

Sec. 6.20. - Reserved.

Sec. 6.21. - Ownership and operation of a public transportation system.

In addition to other powers conferred upon it by law and this Charter, the council is authorized and empowered to acquire, establish, operate, maintain or franchise a public transportation system for the Town of Chapel Hill and enter into contracts and agreements with respect thereto with the University of North Carolina at Chapel Hill, and the Chapel Hill-Carrboro City Board of Education to operate such system as it deems advisable both within and without the town limits, and to provide for the financing thereof through the expenditure of public funds, the issuance of bonds, notes and other evidences of indebtedness as provided by law.

Sec. 6.22. - Chapel Hill Transit Authority, creation, membership.

The Town of Chapel Hill may, by ordinance, create a transit authority (hereinafter sometimes referred to as the "authority"). The official name of the authority shall be "Chapel Hill Transit Authority." It shall be a body corporate and politic. It shall consist of five (5), seven (7), or nine (9) members as determined by the council of the Town of Chapel Hill.

Members of the authority shall reside within the territorial jurisdiction of the authority as hereinafter set out. They shall be appointed by the mayor and council of the Town of Chapel Hill.

Members of the authority shall reside within the territorial jurisdiction of the authority as hereinafter set out. They shall be appointed by the mayor and council of the Town of Chapel Hill. All appointments shall be for a term of three (3) years, except that as to those members first appointed as nearly as possible, one-third shall be appointed for a one-year term, one-third shall be appointed for a two-year term, and one-third shall be appointed for a three-year term. The date from which regular three-year terms shall run shall be established by ordinance. Appointments to fill vacancies occurring during the regular terms shall be made by the mayor and council. The appointments of all members shall run until their successors are appointed and qualified.

The members of the authority shall elect a chairman and vice-chairman from the membership of the authority. They shall also elect a secretary who may, or may not, be a member of the authority.

A majority of the members shall constitute a quorum for the transaction of business and an affirmative vote of the majority of the members present at a meeting of the authority shall be required to constitute action of the authority. Members of the authority shall receive such compensation, if any, as may be fixed by the council of the Town of Chapel Hill.

Sec. 6.23. - Purpose of the authority.

The purpose of the authority shall be to provide for a safe, adequate and convenient public transportation system for the Town of Chapel Hill and its immediate environs through the granting of franchises, ownership and leasing of terminals, buses and other transportation facilities and equipment, and otherwise through the exercise of the powers and duties conferred upon it.

Sec. 6.24. - General powers of the authority.

The general powers of the authority shall be:

1.

To sue and be sued.

2.

To have a seal.

3.

To make rules and regulations, not inconsistent with this act [charter], for its organization and internal management.

4.

To employ persons deemed necessary to carry out functions and duties assigned to them by the authority and to fix their compensation, within the limit of available funds.

5.

With the approval of the town manager, to use officers, employees, agents and facilities of the Town on such basis as may be agreed upon.

6.

To retain and employ counsel, auditors, engineers and private consultants on an annual salary, contract basis, or otherwise for rendering professional or technical services and advice.

7.

To acquire, maintain and operate such buildings, structures and facilities as may be necessary or convenient for the operations of the authority.

8.

To make or enter into contracts, agreements, deeds, leases, conveyances or other instruments, including contracts and agreements with the United States and the State of North Carolina.

9.

To surrender to the town any property no longer required by the authority.

10.

To make plans, surveys and studies of transit facilities within the territorial jurisdiction of the authority and to prepare and make recommendations in regard thereto.

11.

To enter into and perform contracts with public transportation companies with respect to the operation of public passenger transportation.

12.

To issue certificates of public convenience and necessity; to grant franchises and enter into franchise agreements and in all respects to regulate the operation of buses, taxicabs and other methods of public passenger transportation within the territorial jurisdiction of the authority as fully as the Town of Chapel Hill is now or hereafter empowered to do within the territorial jurisdiction of the Town of Chapel Hill.

13.

To enter into and perform contracts to operate public transportation services and facilities and to own or lease property, facilities and equipment necessary or convenient therefor, and to rent, lease or otherwise sell the right to do so to any person, public or private. Further, to the extent authorized by ordinance of the Town of Chapel Hill, to obtain grants, loans and assistance from the United States, the state, any public body, or any private source whatsoever, including, but not limited to, the Urban Mass Transportation Act of 1964, as heretofore or hereafter amended.

14.

To do all things necessary or convenient to carry out its purpose and for the exercise of the powers granted to the authority.

Sec. 6.25. - Authority of utilities commission not-affected.

Nothing in this act [charter] shall be construed to limit or otherwise affect the power or authority of the North Carolina Utilities Commission or the right of appeal to the North Carolina Utilities Commission as provided by law.

Sec. 6.26. - Territorial jurisdiction.

The jurisdiction of the authority shall extend to all local public passenger transportation operating within the Town of Chapel Hill and within three (3) miles outside of the corporate limits of the Town of Chapel Hill, as now or hereafter established. It shall not have jurisdiction over public transportation subject to the jurisdiction of and regulated by the I.C.C., nor shall it have jurisdiction over intrastate public transportation which confines its passenger operations in Chapel Hill to picking up or discharging passengers whose point of origin or destination is more than three (3) miles outside the corporate limits of the Town of Chapel Hill.

Sec. 6.27. - Fiscal accountability.

The authority shall be fiscally accountable to the Town of Chapel Hill and the council shall have authority to examine all records and accounts of the authority at any time.

Sec. 6.28. - Funds.

The establishment and operation of a transit authority as herein authorized is a governmental function and a public purpose and the Town of Chapel Hill is hereby authorized to appropriate funds to support the establishment and operation of the transit authority. The Town of Chapel Hill may also dedicate, sell, convey, donate or lease any of its interest in any property to the authority. Further, the authority is hereby authorized to establish such license and regulatory fees and charges as it may deem appropriate, subject to the approval of the council. If the council finds that the funds otherwise available are insufficient, it may call a special election without a petition and submit to the qualified voters of the town the question of whether or not a special tax shall be levied and/or bonds issued, specifying the maximum amount thereof, for the purpose of acquiring lands, buildings, equipment and facilities and for the operations of the transit authority.

Sec. 6.29. - Effect on existing franchises and operations.

In the event a transit authority is established under the authority of this act [Charter], any existing franchises granted by the Town of Chapel Hill shall continue in full force and effect until legally terminated, further, all ordinances and resolutions of the Town of Chapel Hill regulating bus operations and taxicabs shall continue in full force and effect until superseded by regulations of the transit authority.

Sec. 6.30. - Termination.

The council of the Town of Chapel Hill shall have the authority to terminate the existence of the authority at any time. In the event of such termination, all property and assets of the authority shall automatically become the property of the Town of Chapel Hill and the Town of Chapel Hill shall succeed to all rights, obligations and liabilities of the authority.