AGENDA #6

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Draft Memorandum of Understanding between the Town and the University Regarding Fiscal Issues

 

DATE:             September 10, 2001

 

 

The purpose of this report is to present for the Town Council’s consideration a draft Memorandum of Understanding Pertaining to the Sharing of Costs and Financial Responsibility and Other Matters of Fiscal Equity between the Town of Chapel Hill and the University of North Carolina at Chapel Hill (Attachment 1); and, a Resolution authorizing the Mayor to execute and transmit the Memorandum of Understanding to Chancellor James Moeser for execution by the University (2001-09-10/R-8).

 

BACKGROUND

 

On April 9, 2001, the Town Council adopted a Resolution Authorizing Transmittal of a Statement to the University, including an attachment titled “Addressing Costs and Mitigating Problems, A New Approach to Town-University Relations”.  In addition to a brief history of Town University relationships, the statement contained a list of fiscal equity issues that the Council wished to have addressed in discussions with the University. 

 

On April 23, 2001, the Council authorized the Mayor and Manager to meet with the Chancellor and the Vice Chancellor for Finance and Administration to discuss the fiscal issues identified by the Council and discussions resulted in a “Draft Summary of Fiscal Equity Discussions.”  On July 2, 2001, Mayor Waldorf presented the Council with a status report on Town-University fiscal discussions (Attachment 2).

 

The Mayor and Council members advising the Mayor on Town-University discussions requested that the Council be presented with a draft memorandum of understanding that would, if executed by both the Town and the University, formally record the agreements reached on fiscal issues.

 

DISCUSSION

 

The attached Memorandum of Understanding contains the language agreed upon by the Mayor and the Chancellor for each of the items included in the Mayor’s  July 2, 2001 report to the Council.

 

We offer an item-by-item comparison of the Mayor and Council’s original fiscal equity requests (as stated in the April 9, 2001 report referred to above) and the language for each item in the proposed Memorandum of Understanding in a Working Paper on Fiscal Equity Issues (Attachment 3).  Language from the draft Memorandum of Understanding is added in an outlined box immediately below the original request, along with our comments.

 

The proposed agreement between the Town and the University represents significant progress in formalizing fiscal equity relationships, although there are issues remaining for discussion in the future.

 

RECOMMENDATION

 

I recommend that the Council adopt the attached Resolution authorizing the Mayor to execute and transmit to Chancellor James Moeser the proposed Memorandum of Understanding for execution by the University.

 

 

ATTACHMENTS

 

1.            Memorandum of Understanding Pertaining to the Sharing of Costs and Financial Responsibility and Other Matters of Fiscal Equity between the Town of Chapel Hill and the University of North Carolina at Chapel Hill (p. 4).

2.            A status report on Town University fiscal discussions, July 2, 2001 (p. 8).

3.            Working Paper on Fiscal Equity Issues, September 10, 2001 (p. 12).

 

A RESOLUTION AUTHORIZING  THE MAYOR TO EXECUTE AND TRANSMIT A MEMORANDUM OF UNDERSTANDING TO CHANCELLOR JAMES MOESER FOR EXECUTION BY THE UNIVERSITY (2001-09-10/R-8)

 

WHEREAS, the Town of Chapel Hill and the University of North Carolina at Chapel Hill, through their respective representatives, have engaged in a series of good faith discussions about fiscal relationships between the Town and the University; and

 

WHEREAS, the Town Council is appreciative of Chancellor James Moeser’s willingness to work with the Town to establish long-term policies on fiscal matters that will enable both the Town and the University to plan for the future with a reasonable assurance of fundamental understanding on key issues; and

 

WHEREAS, representatives of the Town and the University reached tentative agreement on a number of fiscal equity issues as reported in a memorandum from Mayor Waldorf to the Town Council dated July 2, 2001 and titled Town-University Fiscal Discussions; and

 

WHEREAS, these tentative agreements have been incorporated into a document entitled “Memorandum of Understanding Pertaining to the Sharing of Costs and Financial Responsibility and Other Matters of Fiscal Equity Between the Town of Chapel Hill and the University of North Carolina at Chapel Hill”;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Mayor to execute the attached Memorandum of Understanding Pertaining to the Sharing of Costs and Financial Responsibility and Other Matters of Fiscal Equity between the Town of Chapel Hill and the University of North Carolina at Chapel Hill and to transmit said Memorandum to Chancellor James Moeser for execution by the University.

 

BE IT FURTHER RESOLVED that the Council authorizes the Mayor to agree to minor adjustments to the Memo of Understanding if negotiated with UNC so long as the principal elements of the Memo are not substantially modified without further consideration by the Town Council.

 

This the 10th day of September, 2001.