MINUTES OF A MEETING OF THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, TUESDAY, MAY 28, 1991 AT 7:30

AN ORDINANCE AMENDING SECTION 10-90 OF THE TOWN CODE TO REQUIRE QUARTERLY PAYMENT OF CABLE TELEVISION FRANCHISE FEES

(91-5-28/O-2)

WHEREAS, the ordinances granting franchises to Prime Cable Income Partners ("Carolina Cable") and Cablevision of Durham require payment of annual franchise fees in accord with the Town Code as it may be amended; and

WHEREAS, cable television franchise fees are authorized by State and national law, and are remuneration for the use of public right-of-way within the Town;

NOW, THEREFORE, BE IT ORDAINED by the Council of Chapel Hill that the Council hereby amends Section 10-90 of the Town Code to read as follows:

Sec. 10-90. Remuneration to town.

Within sixty (60) days after the close of each quarter of the franchisee's fiscal year after acceptance of a franchise, and each succeeding fiscal year thereafter during the life of the franchise, the grantee shall pay to the town for the privilege of constructing, operating, and maintaining the CATV system as defined in section 10-81(c), and for the privilege of providing the CATV service as defined in section 10-81(b) during the ensuing fiscal year, a sum equal to three (3) per cent of its gross receipts during the preceding quarter;

provided, that for the portion of a grantee's franchise year before July 1, 1991, the quarterly payments shall be due by August 29, 1991, and further provided that when a grantee's quarterly franchise fee payment would be less than $250, the grantee may defer such payment to no later than 60 days after the end of the franchise year.

With each quarterly franchise fee payment, the grantee shall provide an accurate statement of gross receipts for the particular quarter, but such statement need not be prepared by a certified public accountant if the year-end annual statement of gross receipts is prepared by a certified public accountant as required below.

Within forty-five (45) days after the expiration of the grantee's fiscal year, the grantee shall file with the town a financial statement prepared by a certified public accountant, or other person satisfactory to the council, showing in detail the gross annual receipts, as defined herein, of grantee during such fiscal year. The payment of this fee is in addition to any ad valorem taxes which the town may levy on the grantee's real or personal property. At any time during the three (3) fiscal years following the filing of the annual statement of gross receipts, the town shall have the right to inspect the grantee's records showing the gross receipts from which those payments are computed and the right of audit and recomputation of any and all amounts under this article. Acceptance of payments hereunder shall not be construed as a release or as an accord and satisfactory of any claim the town may have for further or additional sums payable under this article for the performance of any other obligations hereunder. In the event of holding over after expiration or other termination of any franchise granted hereunder, without the consent of the town, the grantee shall pay to the town reasonable compensation and damages of not less than one hundred (100) per cent of its total gross profits during said period.

This the 28th day of May, 1991.

User Fee Policies

Town Manager Horton stated that resolution 1 included fees for engineering, planning, inspections, library and transportation services. He noted that no fee changes were proposed and recommendation of the resolution was recommended.

COUNCIL MEMBER RIMER MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT RESOLUTION 1.

Council Member Rimer requested that the staff investigate a means to fund stormwater research programs, possibly within the tax rate, for the next budget cycle. Council Member Preston inquired whether parking lot fees were included in the proposed resolution. Mr. Horton said yes. Council Member Preston inquired whether parking fees were forty-five or fifty cents for the first half hour. Mr. Horton requested that the staff investigate which figure was correct.

Garbage Collection Fees

Mr. Horton noted that commercial refuse collection customers were not paying the true cost for such services. He said that incremental increases were suggested to eventually capture the true cost of services. Council Member Brown suggested that the implementation period be two years, rather than four. Council Member Rimer inquired about the level of fees charged by private haulers such as Browning-Ferris and Waste Management. Mr. Horton said that these rates were considerably higher. Council Member Rimer stressed the need for the Town to be competitive in its fees for services. Council Member Rimer said he saw no reason not to capture the true cost of service within a two year time period.

COUNCIL MEMBERS RIMER AND PRESTON AGREED TO WITHDRAW THEIR ORIGINAL MOTION.

Council Member Rimer stated that the proposed fee schedule would bring in additional revenues. Town Manager Horton expressed concern that some commercial customers would try to make do with fewer pickups. Council Member Werner inquired whether there were other fee for service subsidies. Mr. Horton said that some programs such as youth recreation received fee for service subsidies. Council Member Werner noted that some fees had been set and never changed. Mr. Horton concurred that fees for some smaller items were intentionally nominal. Council Member Werner expressed concurrence with Council Member Brown's proposal for two year, rather than four year, implementation for full fees. Council Member Herzenberg inquired whether the Manager was aware of any concerns of commercial refuse customers concerning the proposed fee schedule. Mr. Horton said he was not aware of any concerns by customers. He suggested that the fee for front loading dumpsters be increased from $1,050 instead of $600, while leaving side-loading dumpsters at $800.

Mr. Horton noted that the correct fee for the first half-hour was forty-five cents, rather than fifty cents. He stated that the schedule would be revised accordingly where necessary.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO ADOPT RESOLUTION 1. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION ADOPTING USER FEE POLICIES AND SCHEDULES FOR VARIOUS TOWN DEPARTMENTS (91-5-28/R-1)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the following user fee policies and schedules effective July 1, 1991 as recommended in the Manager's Recommended Budget and accompanying Budget Detail document dated April 22, 1991.

Development Review User Fees

Inspections User Fee Policy

Building Inspections Permit Fees General Policy and Schedule

of Building Permit Fees

Engineering Department's Inspection Fee Policy

Municipal Cemetery Fee Schedule

Street Cut Policy

Police Department Fee Schedule

Chapel Hill Public Library Fines and Fees Policies and

Schedules

Transportation User Fees Policies and Schedules

Municipal Parking User Fee Rates and Schedules

This the 28th day of May, 1991.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT RESOLUTION 2 AS AMENDED. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION ESTABLISHING GARBAGE COLLECTION FEES FOR FISCAL 1991-92 AT $800 PER DUMPSTER PER YEAR (91-5-28/R-2)

WHEREAS, the Town offers the option of 4 extra commercial dumpster collections in addition to the basic 2 collections per week;

WHEREAS, the policy is ultimately to recover actual costs for this extra service through user fees;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that fees in Fiscal 1991-92 for 4 extra weekly collections will be $800 per dumpster for side-loading sanitation trucks and $1,050 per dumpster for front-loading sanitation trucks.

This the 28th day of May, 1991.

Parks and Recreation Fees

Town Manager Horton briefly reviewed proposed changes in recreation fees, including administrative, rental and out-of-county resident fees.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO ADOPT RESOLUTION 3.

Council Member Werner requested that the staff do a better job of informing Town residents that parks and recreation staff could waive program fees for individuals. Council Member Preston inquired where fee waiver requests could be obtained. Mr. Horton said information could be obtained at parks and recreation offices, Town Hall and the library on East Franklin Street.

THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION ADOPTING A USER FEE POLICY FOR THE PARKS AND RECREATION DEPARTMENT (91-5-28/R-3)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the attached User Fee Policy effective July 1, 1991 for the Parks and Recreation Department incorporated herein by reference.

This the 28th day of May, 1991.

Landfill User Fees

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT RESOLUTION 4.

Council Member Werner inquired about the status of ash disposal by the University. Mr. Horton said that the matter was still being discussed, with disposal still occurring outside of the lined landfill.

THE MOTION WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION SETTING TIPPING FEES FOR FISCAL 1991-92 FOR THE ORANGE REGIONAL LANDFILL (91-5-28/R-4)

WHEREAS, the Orange Regional Landfill accepts solid waste from various sources within Orange County and of various types of refuse;

WHEREAS, fees are assessed for waste brought to the Landfill based on type;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following fee schedule establishes charges for solid waste for Fiscal 1991-92:

Mixed Solid Waste $21/ton

Construction Waste $21/ton

Ash $20/ton

Asbestos $100/ton

Pickup Trucks or Trailers $5 each minimum

Cars $3 each

Tires $1 each

This the 28th day of May, 1991.

Transportation Grants

Town Manager Horton said that federal grants were a major funding source for transportation programs. He noted that without federal grants, there would be much greater reliance on funding from the Town, University and the Town of Carrboro.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT RESOLUTION 5. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION AUTHORIZING THE FILING OF APPLICATIONS WITH THE DEPARTMENT OF TRANSPORTATION, UNITED STATES OF AMERICA AND THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION, FOR GRANTS UNDER THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED (91‑5‑28/R‑5)

WHEREAS, the Secretary of Transportation is authorized to make grants for mass transportation program of projects; and

WHEREAS, the contract for financial assistance will impose certain obligations upon the applicant, including the provision by it of the local share of project costs; and

WHEREAS, it is required by the U.S. Department of Transportation in accord with the provisions of Title VI of the Civil Rights Act of 1964, as amended, that in connection with the filing of applications for assistance under the Urban Mass Transportation Act of 1964, as amended, the applicant files an assurance that it will comply with Title VI of the Civil Rights Act of 1964 and the U.S. Department of Transportation requirements thereunder; and

WHEREAS, it is the goal of the applicant that minority business enterprise be utilized to the fullest extent possible in connection with these projects, and that definitive procedures shall be established and administered to ensure that minority businesses shall have the maximum feasible opportunity to compete for contracts when procuring construction contracts, supplies, equipment contracts, or consultant and other services;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill:

1. That the Town Manager is authorized to execute and file applications on behalf of the Town of Chapel Hill with the U.S. Department of Transportation and the North Carolina Department of Transportation, to aid in the financing of operating, capital and planning assistance projects pursuant to Section 3, 8 and 9 of the Urban Mass Transportation Act of 1964, as amended.

2. That the Town Manager is authorized to execute and file with such applications an assurance or any other document required by the U.S. Department of Transportation effectuating the purposes of Title VI of the Civil Rights Act of 1964.

3. That the Town Manager is authorized to furnish such additional information as the U.S. Department of Transportation may require in connection with the applications for the program of projects and budget.

4. That the Town Manager is authorized to set forth and execute affirmative minority business policies in connection with the project's procurement needs.

5. That the Town Manager is authorized to execute grant agreements on behalf of the Town of Chapel Hill with the U.S. Department of Transportation and N.C. Department of Transportation for aid in the financing of the operating, capital, and planning assistance program of projects.

This the 28th day of May, 1991.

Carrboro/UNC contracts

Mr. Horton said that the University, Town of Carrboro and City of Durham had traditionally entered into contracts with the Town for transit services. He noted that the resolution before the Council would permit the staff to enter into discussions with the two jurisdictions for transit service in the next fiscal year.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO ADOPT RESOLUTION 6. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION AUTHORIZING EXECUTION OF CONTRACTS WITH THE UNIVERSITY OF NORTH CAROLINA, THE TOWN OF CARRBORO, AND THE CITY OF DURHAM IN 1991‑92 (91‑5‑28/R‑6)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby approves, and authorizes the Town Manager to execute on behalf of the Town, and in accord with adopted Memorandum of Understandings for transit services, contracts with the University of North Carolina and the Town of Carrboro for the Town to provide them public transportation services, provided said contracts not increase the costs of Town of Chapel Hill transit services and are substantially in accord with the adopted budget of the Town of Chapel Hill.

BE IT FURTHER RESOLVED that the Manager is authorized to enter an agreement and sign on behalf of the Town agreements, authorizations or franchises as required with the City of Durham to operate transit services within the city limits of Durham as negotiated.

This the 28th day of May, 1991.

Rollout Refuse Collection

Town Manager Horton said the question before the Council was whether or not to implement a rollout curbside refuse collection program.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO ADOPT RESOLUTION 7.

Council Member Preston said the decision on this matter was a difficult one, since pilot programs were relatively innocuous. Council Member Preston stated that most community residents did not desire the curbside program. Council Member Preston also noted that Council Member Andresen had distributed a memorandum to the Council indicating that she would have voted against the proposal. She expressed hope that other Council Members would also vote against the proposal. Council Member Herzenberg said that the general tenor in the community appeared to be against the proposal. He stated that there did not appear to be adequate support in the proposed pilot program area. Council Member Herzenberg noted that he would support in another neighborhood which desired the pilot program. Council Member Wallace said that the Town had previously discussed the option of rollout collection as a means of reducing expenditures. He stated that the potential savings to be realized were small in comparison to the change in service level. Mayor Howes noted that the proposed pilot neighborhoods did not favor the proposal. Mayor Howes stated that area residents did strongly support recycling programs. Mayor Howes said he would support once per week rearyard pickup with an expanded recycling program.

Council Member Werner inquired whether the motioner and seconder would accept a friendly amendment to remove the names of neighborhoods in the resolution. Council Member Rimer said that different neighborhoods could possibly be designated. Council Member Werner stressed the need to find funding for recycling programs. He suggested that refuse collection fees were the most logical funding source for recycling programs. Council Member Preston said she was not convinced that refuse and recycling were interlinked. Council Member Preston said that markets for most recycled materials were few and difficult to find and maintain. She noted that markets would likely develop and costs would decrease over time. Council Member Preston said that most residents appeared to appreciate rearyard refuse collection. Council Member Brown stated that the proposed pilot program would play an integral role in identifying any link between recycling and refuse. She noted that other communities had observed a correlation between curbside collection and reduced waste volume. Council Member Brown stressed the importance of collecting information about refuse and recycling. Council Member Wallace said the key consideration was reducing throughput, rather than utilizing more efficient means of recycling. Council Member Werner said the principal difficulty was a time lag between problem realization and action to remedy the situation.

COUNCIL MEMBER WERNER SUGGESTED THAT THE NAMES OF NEIGHBORHOODS BE REMOVED FROM THE RESOLUTION, SUBJECT TO DESIGNATION AT A LATER TIME. COUNCIL MEMBER BROWN ACCEPTED THE FRIENDLY AMENDMENT.

Council Member Herzenberg inquired when the item would come back to the Council. Mayor Howes said that the Council could designate applicable neighborhoods in the future, in consultation with a recommendation from the Manager. Council Member Preston noted that the staff had spent a considerable amount of time identifying the initial pilot neighborhoods. She noted that it might be difficult to identify new pilot program neighborhoods. Council Member Herzenberg said that there was no perfect neighborhood for program implementation. Mayor Howes noted that several neighborhoods had volunteered for the recycling program at its inception.

RESOLUTION 7 AS MODIFIED WAS PLACED ON THE FLOOR. THE MOTION FAILED BY A VOTE OF 4-3, WITH COUNCIL MEMBERS PRESTON AND WALLACE AND MAYOR HOWES FAVORING THE MOTION.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT ORDINANCE 3.

Town Attorney Karpinos said that present ordinance provided twice per week refuse collection. He stated that the ordinance amendment would revise the ordinance to permit selection and establishment of pilot programs, subject to annual revisions. Mayor Howes said the proposed ordinance would broaden the Council's capacity in this area. Mayor Howes said he favored the proposed amendment. Council Member Herzenberg noted that the pilot program might not succeed, due to unforeseen aesthetic or economic circumstances.

THE ORDINANCE WAS PLACED ON THE FLOOR AND ADOPTED ON FIRST READING BY A VOTE OF 5-2, WITH COUNCIL MEMBERS PRESTON AND WALLACE VOTING NO.

AN ORDINANCE AUTHORIZING PILOT PROGRAM TO CONSIDER ALTERNATIVE METHODS OF GARBAGE AND REFUSE COLLECTION (91-5-28/O-3)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Council hereby amends Section 8-37 to read as follows:

Sec. 1. Revise 8-37

Change period to a semi-colon and add the following:

"provided that by Council resolution one or more areas of the Town may be designated for pilot collection programs where household refuse and garbage are collected in a different method and on a different frequency. Any such pilot program shall not extend for more than twelve months without being reapproved by Council resolution."

Sec. 2. This ordinance shall be effective upon adoption.

This the 28th day of May, 1991.

Senior Center

Town Manager Horton said the proposal before the Council would permit the provision of recreational activities for senior residents on a cost recovery basis. Mr. Horton said the $12,000 funding would be used for utility and operating costs. He also noted that the Town would enter into a performance agreement with the senior center.

COUNCIL MEMBER RIMER MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT RESOLUTION 8.

Council Member Brown inquired about the inclusion of contract services for the program. Mr. Horton said that no positions were being proposed for the program. He noted that the proposed contract program would be handled in a manner similar to other parkas and recreation programs.

RESOLUTION 8 WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY

(7-0).

A RESOLUTION AUTHORIZING $12,000 FROM 1991-92 BUDGET TO THE SENIOR CENTER (91-5-28/R-8)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby allocates $12,000 in the 1991-92 budget to the Orange County Senior Center.

This the 28th day of May, 1991.

Downtown Service District

Town Manager Horton said he was recommending continuation of the current tax rate of $0.07 per $100 of valuation, with an allocation of $23,400. Mr. Horton stated that the Downtown Commission had made a realistic assessment of current economic conditions and had made arrangements to continue services with volunteers, rather than paid staff. Mr. Horton said he recommended adoption of the resolution expressing the Council's intent to continue the current downtown service district tax rate and allocation.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT RESOLUTION 9.

Council Member Brown suggested that an overall assessment of the downtown service district was needed prior to funding consideration by the Council. Council Member Brown said she was uncertain whether the Downtown Commission was the proper vehicle for adminstering the district. Council Member Herzenberg noted that when the district was proposed three years ago, the Council had received an extensive petition of support from downtown business owners. He noted that there had been extensive opposition to doubling the distrcit tax rate, but there appeared to be significant support for continuing the district at its current rate. Council Member Brown said she was not certain was serving all downtown businesses equally. Council Member Preston said that the Downtown Commission had been an asset in the downtown area. Council Member Preston inquired where the balance of $16,600, the difference between $40,000 and $23,400, would be expended. Mr. Horton said that a total of $63,400 ($23,400 plus $40,000) was being proposed for the downtown service district.

Council Member Werner inquired whether the resolution specified where the $23,400 would be expended. Mr. Horton said these specifics would be outlined in the performance agreement. Council Member Werner said he was uncomfortable with this arrangement, since the performance agreement had not been drafted. Mr. Horton noted that funds could only be expended on items outlined in the downtown service district program. Council Member Brown inquired whether the cost of trolley operations was covered by the downtown service district tax. Mr. Horton responded that costs could be allocated in a number of different ways to support a variety of services. Council Member Brown said she supported the downtown area, but felt it important to have an assessment performed prior to allocating $60,000 to the Downtown Commission. Council Member Preston inquired whether the performance agreement was being met. Mr. Horton said yes. Mayor Howes said the Downtown Commission was doing a very good job of carrying out programs with very enthusiastic volunteers. He stressed the need for continuation of a vibrant and exciting downtown area.

THE RESOLUTION WAS PLACED ON THE FLOOR AND ADOPTED BY A VOTE OF 6-1, WITH COUNCIL MEMBER BROWN VOTING NO.

A RESOLUTION REGARDING FUNDING OF DOWNTOWN DISTRICT SERVICES AND ALLOCATION OF GENERAL FUND MONEY FOR DOWNTOWN SERVICES (91-5-28/R-9)

BE IT RESOLVED by the Town Council of Chapel Hill that the Council intends to continue the downtown service district tax rate of 7 cents per $100 in 1991-92 and to allocate $23,400 in the General Fund budget for services to the downtown area.

This the 28th day of May, 1991.

Pay and Classification Plan

Mr. Horton said that continuation of the present pay rate structure was being recommended, along with the addition and deletion of some positions. He noted that the plan included the addition of eight public safety officer positions. Mr. Horton said he recommended adoption of the ordinance.

Council Member Preston inquired about the limit for merit raises. Mr. Horton indicated that this was included in the next item on the Council's agenda.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT ORDINANCE 4. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

(ORDINANCE 4 HAS TO BE CUT AND PASTED)

Budget Intent Ordinance

Mr. Horton noted that no change in the present property tax rate would be necessary. He briefly reviewed proposed changes in the budget, including the addition of funding for a senior activity center and public safety officers. Mr. Horton said that a tax rate decrease of 0.3 cents was proposed in the General Fund and a 0.3 cent increase was proposed in the Transportation Fund, raising the rate to 4.425 cents per $100 valuation. Mr. Horton said that the adoption of a resolution of intent would allow the Council to conclude its work on the budget in the near future and put the budget into effect. Mr. Horton noted that Council consideration of the budget was being recommended for June 24th, rather than July 1st, as originally proposed. Council Member Werner inquired about obligations tied to an interim budget. Mr. Horton responded that an interim budget would permit continuation of current programs and services.

COUNCIL MEMBER RIMER MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO ADOPT RESOLUTION 10.

Council Member Rimer suggested that the Manager begin planning to address the coming budgetary challenges for the next fiscal year, 1992-93. Council Member Brown expressed concern that the Council had not adequately addressed budget objectives and proposals. She expressed concern that contractual and professional services were increasing by about $469,000 in the proposed budget. Council Member Brown urged the Council to have additional discussions on the proposed budget. Council Member Rimer suggested that these concerns could have been raised at an earlier point in the budget process. He noted that many professional service contracts were presented to the Council for their consideration. Council Member Rimer noted that the Council had spent a great deal of time considering the proposed budget. Council Member Brown said there had been little discussion about matters of substance. Mayor Howes said there was some merit in Council Member Brown's and Rimer's remarks. He noted that the Council had spent a great deal of time discussing the budget and setting priorities, with useful input coming from concerned Town residents. Council Member Rimer noted that a great deal could be done at the staff level to address concerns about recycling, energy conservation and other matters.

Council Member Preston said that the budget process had been a good learning experience. Council Member Preston said that Council Member Brown's points were well-taken, since economic circumstances did not promise to get much better in the coming year. Council Member Preston expressed appreciation for citizen input in the budget process. Council Member Herzenberg said that the budget was the Council's most important process each year. He noted that there was still time to have additional discussion on the proposed budget document. Council Member Werner noted that this evening's action was only a resolution of intent, with possible final action occurring on June 24th. Council Member Preston inquired about the inclusion of $47,500 in property taxes in the Transportation Fund. Mr. Horton said that the tax rate for the Transportation Fund was increasing, while the rate for the General Fund was being decreased by 0.3 cents or $47,500. He noted that these were offsetting, leaving the total tax rate unchanged.

Council Member Brown inquired whether it would be possible to cut utility expenses by a certain percentage. Council Member Werner said he thought it was fine to give direction, but it was also important to incorporate such programs into future budget documents. Council Member Brown suggested that the Town discontinue its membership in the Public-Private Partnership. Mayor Howes said he would argue against this proposal, since it was the only forum for concerted action among many community agencies and entities. He expressed concern about the possible impact of the Town's withdrawal from the organization.

COUNCIL MEMBER BROWN MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO DISCONTINUE TOWN MEMBERSHIP IN THE PUBLIC-PRIVATE PARTNERSHIP.

Council Member Werner said the Council had never discussed interaction with the Public-Private Partnership in an open or closed forum. Council Member Werner said he thought it inappropriate that no such dialogue had ever occurred. He added that the membership fee was inappropriate.

THE MOTION WAS PLACED ON THE FLOOR AND FAILED BY A VOTE OF 2-5, WITH COUNCIL MEMBERS BROWN AND WERNER VOTING NO.

RESOLUTION 10 WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY

(7-0).

A RESOLUTION DECLARING THE COUNCIL'S INTENT TO ADOPT A BUDGET ORDINANCE FOR 1991-92 (91-5-28/R-10)

WHEREAS, the General Assembly of North Carolina has not completed the adoption of the State's Biennial budget for 1991-93; and

WHEREAS, the State budget includes significant State-shared revenues allocated to local governments which are uncertain at this time; and

WHEREAS, North Carolina General Statute 159-15 provides that tax rates set by local governments cannot be changed once adopted by the Governing Body;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby expresses its desire to defer adoption of the Town's final budget for 1991-92 until the General Assembly completes action on the State budget for 1991-92 which may affect the Town's revenues.

BE IT FURTHER RESOLVED, however, that the Council hereby express its intent to adopt the budget ordinance for 1991-92 attached hereto as Exhibit "A" which reflects changes to the Manager's Recommended Budget ordinance agreed to by the Council at the budget work sessions and including any amendments agreed to by the Council on May 28.

This the 28th day of May, 1991.

Mayor Howes noted that the Council had achieved the objective of receiving a budget proposal without a property tax increase. He noted that the community had consistently indicated a willingness to pay for higher levels of service. He urged concerned citizens to pay attention to the development of budgets for OWASA and Orange County. Council Member Wallace said he was gratified by the Mayor's observation of observing these budget processes. Council Member Wallace noted that Town residents were paying approximately forty-four percent of taxes collected by Orange County. Council Member Wallace inquired whether Orange County still had multiple facsimile machines. Mr. Horton said yes. Mayor Howes inquired whether the County had proposed a budget. Mr. Horton said the budget proposal was being drafted.

Item 6 - 1991-1996 Capital Improvements Program

Mr. Horton briefly reviewed proposed allocations for the 1991-1996 Capital Improvements Program. He noted that the University would welcome further discussion on the use of the playing fields at Glen Lennox. Mr. Horton also noted that the University might need to utilize this area in the future. Mr. Horton said that he was continuing to recommend deferral of parks and open space funds. He also noted that he was recommending endorsement of the program in concept.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT RESOLUTION 12.

Council Member Preston inquired about the proposed use of $10,000 for improvements at Ephesus Park. Mr. Horton said these funds could possibly be used for playing field improvements.

THE MOTION WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY (7-0).

A RESOLUTION APPROVING THE 1991-1996 CAPITAL IMPROVEMENTS PROGRAM (91-5-28/R-12)

BE IT RESOLVED by the Council of the Town of Chapel Hill that it hereby approves in concept the Manager's 1991-1996 Recommended Capital Improvements Program contained in the memorandum dated May 28, 1991 which includes the following projects to be included in the Operating Budget ordinance for 1991-92:

Cemetery Beautification $ 10,000

Community Beautification $ 25,000

Extraordinary Maintenance $ 50,000

Geographic Information System $ 12,000

Cedar Falls Parking Lot $100,000

Greenways $ 50,000

Fire Truck $ 40,000

Traffic Signal Upgrade $ 45,000

Sidewalks $ 68,000

TOTAL $400,000

This the 28th day of May, 1991.

Item 7 - Noise Ordinance Amendments

Mayor Howes said the Town Attorney had indicated that the ordinance was debatable, but not amendable in its present form. He noted that five votes were required for passage, with three or four votes carrying the item over the Council's next regular meeting on June 10th. Council Member Herzenberg requested that the Council support the noise ordinance monitoring committee recommendation. He noted that the permitted decibel level was the only subject of contention. Council Member Herzenberg said he recommended that the Council support a maximum decibel level of seventy, rather than sixty-five decibels, as proposed.

Council Member Brown said she still supported a maximum of sixty-five decibels. She suggested that the Council consider the matter of the noise ordinance in the fall. Mayor Howes noted that Council Member Andresen had suggested that the Council consider deferral of the matter until the fall. Council Member Werner also suggested that the Council consider taking up the matter in the fall, once students had returned. He requested additional information concerning relative comparison of noise levels. Council Member Wallace suggested that the Council not attempt to amend the noise ordinance on the floor this evening. Mayor Howes said he hoped to defeat the proposal in its current form and take the matter up in the fall. Mayor Howes suggested that there be graphic and understandable demonstrations of relative decibel levels.

Council Member Brown said she supported deferral of the proposed amendment. She also stressed the need to examine the composition of the committee and how the ordinance amendment evolved from the committee. Mayor Howes said the committee was composed of volunteers on both sides of the issue. Council Member Wallace called the question.

THE MOTION, ORDINANCE 1.1, WAS PLACED ON THE FLOOR AND FAILED ON SECOND READING BY A VOTE OF 1-6, COUNCIL MEMBER BROWN VOTING YES.

Council Member Herzenberg said that many other elements besides decibel levels merited consideration by the Council prior to choosing to postpone the matter until the fall. He said it was not appropriate to defer the matter since the community would be better protected by the committee's recommendation. Council Member Rimer urged the Council not to throw out a lot of good ideas because of disagreement about the maximum permitted decibel level. He suggested a demonstration of various decibel levels. Council Member Wallace said he admired the committee's goal, but it was not a good idea to pass an ordinance in a piecemeal basis. He urged the Council to consider the matter as one all-inclusive amendment. Council Member Herzenberg said he concurred, but saw no reason to postpone the matter if only one item was a point of disagreement.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT THE PROPOSED ORDINANCE, CHANGING REFERENCES TO MAXIMUM DECIBEL LEVELS TO SEVENTY, RATHER THAN SIXTY-FIVE, DECIBELS.

Council Member Brown urged the Council to postpone the vote on the matter until the fall. Council Member Preston encouraged the Council to consider postponement of the matter. She added that the committee had worked very hard to compromise on decibel levels and other items. Council Member Preston said she preferred to lower the maximum decibel level to sixty-five and table consideration until the fall, or approve the matter this evening, subject to a six-month review. Council Member Herzenberg said he would accept the six-month review proviso as a friendly amendment. Council Member Werner notedthat tabling the matter would leave the maximum decibel level at seventy-five decibels. He said that a reasonable compromise was proposed. Mr. Horton said it was possible for the Council to direct a review of six months by means of a resolution.

Council Member Brown said that input by neighborhood residents was not adequately considered by the committee. She said that the matter would keep coming back until definitive action was taken on the matter. Mayor Howes expressed doubt that definitive action could ever be taken on noise level limits. Council Member Herzenberg said that if the amendment failed, he would recommend adoption without the change in decibel levels.

ORDINANCE 1.1, WITH A MAXIMUM DECIBEL LEVEL OF SEVENTY WAS PLACED ON THE FLOOR.

Mayor Howes said that if the ordinance were approved, the Council would vote on a resolution of intent for a six-month review period.

THE MOTION WAS PASSED ON FIRST READING BY A VOTE OF 6-1, WITH COUNCIL MEMBER BROWN VOTING NO.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO INCLUDE A REVIEW PERIOD OF SIX MONTHS WITH THE SPECIFIC INTENT OF EXAMINING DECIBEL LEVEL LIMITS. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

Item 8 - Parking Facility Authorization

Mr. Horton said that the architect had been surprised by the bids received for the project, with major differences atatributable to utility relocation. He noted that there was also some concern that the site might be heavily ladened with rock. Mr. Horton briefly the bid tabulations for the project. He noted that the bond underwriter George Woodall and project architect Michael Hining, were in attendance this evening and available to answer questions. Mr. Horton said the underwriters had indicated that with the right interest rate and term, the project would continue to be feasible. Mr. Horton said that such arrangements were possible. Mr. Horton stated that Council authorization to issue revenue bonds was being requested this evening. He briefly reviewed the schedule of events, assuming that the resolution were adopted. Council Member Werner inquired whether it would be possible to include restrooms in the proposal. Mr. Horton said it appeared that this would be possible. Council Member Werner inquired about the intent of the resolution before the Council. Mr. Horton said the sole purpose of the resolution was to authorize the authority to issue revenue bonds. He noted that other members of the Council had expressed similar concerns about including restroom facilities in the project.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT RESOLUTION 13.

Mayor Howes inquired about the status of the magnolia corner on the site. Mr. Horton responded that no disturbance or work was planned for this portion of the site. Council Member Brown inquired how additional rock removal would be handled in terms of financial ability. Mr. Horton said this was addressed in contingency funds for the project. Council Member Rimer inquired how much was set aside for rock removal. Mr. Hining responded that rock removal was the contractor's responsibility in the original contract, but allocation had been made for removal of two thousand cubic yards at a cost of $24.95 per cubic yard. Mr. Horton noted that contingency allowances for rock were also made in the mechanical and electrical contracts.

THE RESOLUTION WAS PLACED ON THE FLOOR AND ADOPTED BY A VOTE OF

6-1, WITH COUNCIL MEMBER BROWN VOTING NO.

A RESOLUTION REQUESTING LOCAL GOVERNMENT COMMISSION APPROVAL FOR ISSUANCE OF REVENUE BONDS BY THE TOWN OF CHAPEL HILL FOR ROSEMARY STREET PARKING FACILITY (91-5-28/R-13)

BE IT RESOLVED by the Council of the Town of Chapel Hill as follows:

1) The Council of the Town of Chapel Hill confirms its earlier appointment of LeBoeuf, Lamb, Leiby and McRae as bond counsel and Ralph D. Karpinos, as its legal representative, and hereby authorizes the filing of an application with the Local Government Commission requesting approval for the issuance of Revenue Bonds for a Public Parking Facility, in an amount not to exceed $6,425,000 and requests that the Local Government Commission:

a) consider favorably said Application, submitted with this resolution; and

b) sell said Revenue Bonds, as more fully described in said Application, at private sale and without advertisement at such prices as the Commission determines to be in the best interest of the Town, subject to the approval of the Town Council.

2) The Revenue Bonds are to be issued by the Town for the purpose of providing funds required to finance the construction of a 315 space parking garage on a 1.2 acre parcel of land owned by the Town in the Town's central business district. In addition, bond funds will be used to redeem other outstanding parking revenue bonds, to fund deposits under the Bond Order and to pay certain costs in connection with the issuance of the 1991 Bonds, all as set out fully in the Preliminary Official Statement and other documents attached to the Town's Application to the Local Government Commission. The project is necessary to provide additional public parking facilities in the Town's central business district, the need for which is demonstrated by the feasibility study by Wilbur Smith Associates. Said feasibility study shows that the Parking Garage should generate sufficient net revenues to pay principal and interest on the 1991 Revenue Bonds.

3) The Council finds and determines and asks the Local Government Commission to find and determine from the Town's Application and supporting documentation:

a) that the proposed revenue bond is necessary or expedient;

b) that the amount of the bonds as stated in the Bond Order will be sufficient but is not excessive for the proposed parking facility;

c) that the proposed parking facility is feasible;

d) that the Town of Chapel Hill's debt management procedure and policies are good; and

e) that the proposed revenue bonds can be marketed at a reasonable interest cost to the Town.

4) The Mayor, Town Manager, Town Finance Director and Town Attorney are hereby authorized to do any and all other things necessary to complete the steps necessary for the issuance of these Revenue Bonds within the intent and limits of this resolution, including the circulation of a preliminary official statement.

This the 28th day of May, 1991.

Item 9 - Boards and Commissions

The following appointments were made:

Board of Adjustment W. Glenn Dyke

Conrad Noel

Betty Sanders

Gregory Reynolds (Alternate)

Historic District Carolyn Connor

Commission Josh Gurlitz

Joan Meade

Mary Arthur Stoudemire

Parks & Recreation Betsy Jones

Commission Charlsena Stone

James Ward

All applicants for the Community Appearance Commission, Greenways Commission, Orange Water and Sewer Authority (seat resigned by Rosemary Waldorf) and Transportation Board were nominated.

Item 10 - Consent Agenda

Council Member Werner requested removal of item d for discussion. Council Member Herzenberg noted that adoption of item g was not necessary since the Council had acted on amendments to the noise ordinance earlier in the meeting.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO ADOPT THE CONSENT AGENDA, EXCEPTING ITEMS D AND G.

A RESOLUTION APPROVING VARIOUS RESOLUTIONS AND ORDINANCES (91-5-28/R-14)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the resolutions and ordinances as submitted by the Town Manager in regard to the following:

a. Calling public hearing on vested rights Development Ordinance Text Amendment (R-15).

b. Acquisition of Cooley property (R-16).

c. Budget ordinance amendment (O-5).

d. Report on Glen Lennox fields.

e. Report on Ashley Forest petition.

f. Report on naming of Access Road.

g. Noise ordinance exemption for Phillips Middle School

(O-6).

This the 28th day of May, 1991.

A RESOLUTION CALLING A PUBLIC HEARING ON AMENDING THE DEVELOPMENT ORDINANCE REGARDING THE VESTING OF PROPERTY RIGHTS (91-5-28/R-15)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby calls a Public Hearing for 7:30 p.m. Monday, June 17, 1991 in the Council Chamber at Town Hall, 306 North Columbia Street, Chapel Hill, on amending the Development Ordinance in accordance with State legislation regarding the vesting of property rights for Town approved development plans.

BE IT FURTHER RESOLVED that the Council hereby refers this matter to the Planning Board and the Manager for recommendations to be presented at the June 17, 1991 Public Hearing.

This the 28th day of May, 1991.

A RESOLUTION AUTHORIZING THE PURCHASE OF 2,154 SQUARE FEET OF THE RAYMOND COOLEY PROPERTY FOR THE TANYARD BRANCH GREENWAY AND UMSTEAD PARK (91-5-28/R-16)

WHEREAS, the Council of the Town of Chapel Hill has adopted the 1985 Greenways Report; and

WHEREAS, the 1985 Greenways Report recommended the construction of a trail along Tanyard Branch; and

WHEREAS, the trail was initially constructed on the private property of Raymond Cooley (Tax Map 94, Block B, Lot 19); and

WHEREAS, the Greenways Commission and the Parks & Recreation Commission recommend the purchase of a portion of the Cooley Property as part of the Tanyard Branch Greenway and Umstead Park;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to purchase 2,154 square feet of the Raymond Cooley property to be included as part of the Tanyard Branch Greenway and Umstead Park, and that the purchase price of $500 be taken from proceeds of the 1989 Parks and Open Space bonds.

This the 28th day of May, 1991.

AN ORDINANCE TO AMEND "THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 1990 (91-5-28/O-5)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled "An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 1990 as duly adopted on June 11, 1990 be and the same is hereby amended as follows:

ARTICLE I

Current Revised

Budget Increase Decrease Budget

APPROPRIATIONS

PUBLIC HOUSING FUND 806,205 30,186 836,391

GENERAL FUND

Public Works

Construction 229,847 4,795 234,642

Streets 1,707,347 39,455 1,746,802

General Services 746,172 89,811 835,983

CAPITAL IMPROVEMENTS

FUND

Public Works

Facility Improve-

ments 182,611 118,976 301,587

ARTICLE II

REVENUES

PUBLIC HOUSING FUND 806,205 30,186 836,391

GENERAL FUND

Other Revenue 23,100 134,061 157,161

CAPITAL IMPROVEMENTS

FUND 1,285,849 118,976 1,404,952

This the 28th day of May, 1991.

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO ADJOURN THE REGULAR MEETING AND MOVE INTO EXECUTIVE SESSION. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

The regular meeting concluded at 10:22 p.m. No report followed the Executive Session.