CHAPEL HILL TOWN COUNCIL, LIBRARY MEETING ROOM

SATURDAY, JANUARY 16, 1999 AT 8:30 A.M.

Mayor Rosemary Waldorf called the meeting to order at 8:30 a.m.

Council Members present were Flicka Bateman, Joyce Brown, Joe Capowski, Pat Evans, Kevin Foy, Julie McClintock, Lee Pavão, and Edith Wiggins. Staff members present were Town Manager Cal Horton, Town Attorney Ralph Karpinos, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Planning Director Roger Waldon, Finance Director Jim Baker, Personnel Director Pat Thomas, and Interim Town Clerk Joyce Smith.

Kurt Jenne of the Institute of Government was the facilitator.

Mr. Jenne began by reviewing the agenda for the meeting and highlighting the ground rules for effective meetings.

Mayor pro tem Capowski asked to add technology funding to the topics to be discussed.

Council Member McClintock asked to add improving the process for evaluating the Manager and Attorney to the list of topics.

University Growth

Mayor Waldorf introduced Dick Richardson and Jonathan Howes from the University of North Carolina, who addressed the issue of University enrollment plans for the next ten years.

Mr. Richardson noted that under an aggressive project, the University would enroll 30,175 total students by 2008, a 6,348 student increase over current 1998 enrollment numbers. He stated the University would require the addition of about 630 faculty and 1,480 staff if enrollment is increased to 30,175. Mr. Richardson added that approximately 4.56 million gross square feet of new space would be needed to accommodate a total enrollment of 30,175 and the attendant faculty and staff.

Mr. Richardson stated it was obvious that the magnitude of expected change anticipated by the University would have significant effects on the Town. He stated the University is committed to non-growth until facilities are available to accommodate the growth. Mr. Richardson stated the University is currently working on a capital improvements plan.

Mr. Richardson stated the University was interested in working cooperatively with the Town, and would share information as often as possible to keep the Town apprised.

Council Member McClintock stated she believed these issues would take a lot of Council discussion, noting that one point was for the University to work with the Town to assure that additional buildings would be compatible with current landfill plans.

Mayor Waldorf said currently University space is close to 12 million square feet.

Council Member McClintock asked how the University would pay for adequate resources to accommodate the growth, such as water, sewer, and fire protection.

Council Member Foy asked what the interplay between this growth and the Horace Williams property was. Mr. Richardson answered that there had been no direct link between the two. He noted they are now beginning to rub shoulders.

Mr. Howes stated the University is preparing a Master Plan and have hired a consulting firm to assist them. He said the consultants had recently presented a conceptual master plan, which stated the University could accommodate a great deal more growth on the existing campus than they had originally assumed. Mr. Howes noted that the idea would now be tested as planning for growth continues. He stated that this plan would be of help as construction on the north campus continues, and as plans develop for the south campus. Mr. Howes commented that access to the campus through existing transportation routes is a constraint that they are aware of and are working to identify solutions.

Mr. Howes distributed copies of the current University Gazette, and asked the Council to read the article on page 2 written by Chancellor Hooker on how to develop the Horace Williams tract. He noted the Chancellor had created a committee to research ideas for developing this tract, and emphasized that nothing would happen with the Horace Williams tract until more discussion took place with the Town.

Council Member Brown said she knew this was dependent on the availability of funds, and mentioned an article she had read about the University's consultant. She asked how those plans would fit in with other funding needs. Mr. Richardson answered that they were all intertwined. He said one advantage of being the oldest university in the United States was that you have a lot of prestige, but the buildings were falling down. Mr. Richardson added that restoration was an ongoing project.

Mayor pro tem Capowski thanked the University and the Chancellor for the very open process they were using, which enhances Town-Gown relationships. He said he agreed that it was necessary to protect the near-campus neighborhoods. Mayor pro tem Capowski said if we bring in 6000 more students we bring in about 5000 new cars, and he has heard no plans for how those additional cars would be handled. He said the projected growth is for about 45 new buildings, and asked how much commercial support would be placed on campus to serve the new students. Mayor pro tem Capowski said it was a long walk from south campus to Franklin Street, and facilities must be made available on campus.

Council Member Wiggins asked if this plan had been sent to the General Assembly. She asked if the General Assembly would modify it and send it on, or would they require more modifications. Mr. Richardson said the General Assembly had asked for information on how close the projections of future students was to actual growth, and that the General Assembly would most likely prioritize requests for funding before it was sent to the legislature. Mr. Richardson said they planned to provide about 500 new beds by reconfiguring current rooms; for example, renovating rooms for three students rather than two.

Council Member Evans asked if the 44,000 students projected were just for the campus, or for other institutions. Mr. Richardson said that was the projection for the 16 campus system. He said students prefer a four-year college to other types of institutions because of the sports, social life, and other amenities. He noted it may become a reality that students are forced to attend small technical schools for the first year or two because of campus overcrowding.

Council Member Wiggins asked if at some point the Council would be able to see the growth plan as it relates to the hospital complex. Mr. Richardson said they have ten-year projections for the hospital complex, and the new science facility would be closely linked with the hospital complex. He noted the projections were that 50 percent of new graduate students would be coming into science programs.

Council Member Wiggins said this potential growth poses a challenge for the Town and the surrounding areas, and she would like to know how Chapel Hill might benefit from this growth. She stated Chapel Hill is still a desirable place to be, and this growth may have more economic advantages than have been identified.

Council Member Pavão asked how realistic it was to say that the funding was not there. Mr. Richardson said it may be very realistic. He added there had been no indication that growth would take place without resources available. Mr. Richardson said some campuses in the system do not wish to grow, while others are anxious to grow.

Council Member Evans said there had been a lot of growth on campus over the last five to ten years without a significant growth in the number of students, primarily in the medical complex. She said cultural and recreation spaces need to be provided, or the Town would experience overcrowding in existing facilities. Mr. Richardson stated the University had been so focused on the potential problems, they had not put much attention on what the potential benefits might be.

Council Member Wiggins noted the University and Town should work together to identify those benefits.

Council Member McClintock asked at what point in the process did the University need to receive a request from the Town regarding how the University intends to meet the infrastructure needs, such as water and sewer. Mr. Richardson said it may be a little early in the process at this time, but probably within six months to a year these discussions should take place.

Mayor Waldorf noted that there were various fiscal relationships between the University and Town that need to be addressed before growth takes place. She said she did not believe the Town could support the growth without substantial impacts on current resources, adding it would damage the community and diminish the appeal of Chapel Hill.

Mayor pro tem Capowski asked where the Fiscal Impact Committee fits in with these issues. Mr. Horton said they expected to have a report by March and were struggling to find areas of agreement. Mr. Howes said they were trying to build a base of common understanding.

Council Member Brown added that the Town was already experiencing neighborhood impacts as well as fiscal impacts. She asked over what period of time these issues would be addressed, and over what period of time do these plans cover. Mr. Richardson said the plan was for a ten-year period, and the projections were for ten years. He said the demand for space would be ever present, even if the figures drop considerably.

Mr. Howes said the University consistently finds new uses for existing buildings when the original use was no longer necessary, and this would continue to be the case.

Council Member Wiggins suggested that somewhere in all of this, there be some mention of the benefits to be derived by the Town, and how the growth would impact Chapel Hill. She said housing, traffic, and infrastructure needs are very important, but so are the citizens of Chapel Hill. She noted that the University's mission statement begins with a statement about serving all State residents, and said that includes Chapel Hill citizens. Mr. Richardson answered that the University are also citizens.

Mayor Waldorf asked how more meaningful planning could take place between the Town and the University, such as implementation of new policies, needed housing, needed adjustments in transportation and infrastructure. She said she believed they must work together towards implementation as well as planning. Mr. Howes answered that an opportunity was before them, that planning did not end with the submission of plans, but continued through implementation. He said it may take some new institutional structure to carrying the implementation forward, adding that they have a multi-tiered government structure that had a say in the process.

Council Member McClintock asked what the next step for the Council would be and if it should be placed on the Council’s agenda so they could brainstorm on how they might put together their own set of principles as expansion moves forward. She said she believed discussion should take place fairly soon.

Mayor Waldorf agreed.

Council Member Brown asked if goals were set, what the process would be to ensure that they all worked together. Mayor Waldorf said that needs to be discovered. She added this was a new and different challenge, and needed new and different solutions.

Mayor Waldorf thanked Mr. Richardson and Mr. Howes for keeping the communication open and flowing.

Council Member Bateman said she found the comments by Mr. Horton regarding the Fiscal Impact Committee discouraging, since no agreements had been reached. She asked that the Committee use these discussions as a model of how to reach those agreements.

Chatham/OWASA Issues

Mayor Waldorf introduced Dan VandeMeer, OWASA Board Chair, and Ed Holland, OWASA's Chief Planner.

Mr. VandeMeer said OWASA had for at least the last fifteen years looked to Jordan Lake as a water source. He said to assure access to that water, an annual allocation of about $20,000 was obtained from the State. Mr. VandeMeer noted that the Council had requested additional information on how OWASA might bring water into the OWASA system. He said one way was to build an intake system: two pumping stations and a transmission pipeline. Mr. VandeMeer said they had purchased a 125-acre site near the lake in Chatham County, and it would be possible to allocate some of that space to assisting Chatham in developing a pump station. He said they intended to retain their allocation from the State and to do nothing further until the elected officials in Orange County and Chatham County gave them a signal as to what they wanted OWASA to do. Mr. VandeMeer said Carrboro had indicated they do not want to drink Jordan Lake water, but had encouraged OWASA to work with Chatham County to answer their needs. He said OWASA had invited Chatham County staff and the Chatham County Commissioners to attend OWASA meetings where this issue was discussed. Mr. VandeMeer said the OWASA Board had done what it had been asked to do, and would not take any further action with Chatham County until the elected officials in Orange County gave them some direction.

Mayor pro tem Capowski asked in order for Chatham to build a pipeline to Carrboro, if it would require the permission of the Chatham County Commissioners. Mr. VandeMeer said yes.

Mayor pro tem Capowski said the fact that OWASA makes a payment to the State does not affect the fact that Chatham County would have to give permission for a pipeline. Mr. VandeMeer stated that was correct.

Mayor pro tem Capowski said Chatham County could invoke the power of eminent domain and condemn a site for a pump station, if necessary. Mr. VandeMeer said that was correct. Mr. Horton noted that the State was limiting the number of intake sites built.

Mayor pro tem Capowksi noted the importance of working with Chatham County officials in the development of an intake site, without spending OWASA funds. He said he was in favor of a strong commitment from Chatham County that permission be given for the construction of future pipelines. Mr. VandeMeer noted he did not believe it was OWASA's responsibility to push that type of issue forward.

Council Member Brown stated that Orange County had an interest in watershed protection, and would like to encourage a way for watershed protection to be of paramount importance.

Mayor Waldorf suggested that the Town encourage these issues but not demand them.

Council Member Bateman agreed, saying that Chatham County needed access to Jordan Lake.

Council Member McClintock also agreed, adding that these issues should be part of any discussion with Chatham County officials. She said regarding the intake issue, she was willing to go along with OWASA's recommendation. Council Member McClintock said as far as the land was concerned, it was possible that OWASA could lease the necessary land to Chatham County.

Council Member Foy said it would be unconscionable to deprive our neighbors of water, but on the other hand water helps fuel growth, that growth could not occur without it, and as such the Council should express its opinion and to continually remind Chatham County of these issues.

Mayor Waldorf asked if it was the general consensus of the Council that Chatham County should have access to Jordan Lake water.

Mr. Horton suggested a resolution could be drafted which included the points discussed.

Mayor pro tem Capowski said the resolution should include a statement that Chatham County would allow a pipeline to be constructed if and when it was needed. Mr. VandeMeer said he supported the concept of developing such a resolution and pointing out the protection of the watershed. He said OWASA could then use it as an attachment to whatever agreement was reached with Chatham County.

Council Member Brown said it was important to be cooperative, but believed it should be made clear that the Council does not want to lower its values or standards, and the resolution should state that, for instance, the quality of drinking water should not be compromised.

Mayor pro tem Capowksi asked if this had been discussed with Orange County officials. Mr. VandeMeer said no, but a meeting was scheduled for February.

Council Member McClintock asked whether there was any feedback from OWASA regarding the University growth issues and how it might affect OWASA. Mr. VandeMeer said it was not just University growth, but growth all over Chapel Hill, such as extending sewers into unsewered areas. He stated that OWASA staff and University officials were already working on these issues. Mr. VandeMeer said OWASA was an important but only one piece of the relationship between the University and the Town. He said he sensed that the University was very willing to work with OWASA.

Pay Plan Recommendations by the Consultant

Jill Pylant of Slavin Management Consultants gave a brief overview of the employee meetings held and the feedback received on the compensation system recommendations. She briefly highlighted the goals of the pay study: a simpler system; market competitiveness; career advancement; rewards good performance; correct compression; valuing of long-term employees; and, affordability.

Ms. Pylant noted the recommendation was that on October 1, 2000 Town salary ranges be set at the 75^th percentile point in the labor market, which means that the Job Rate (midpoint) of each range would be competitive with the salaries paid at the 75^th percentile within the market. She noted a new employee is usually hired at the minimum salary of the salary range for a position. Ms. Pylant said after six months of successful performance, the employee completes probation and receives a 6% increase in pay. She stated that after one year, if performance continues successfully, the employee's salary would move to Step 1 in the salary range. Ms. Pylant said step increases were approximately 3.8%. She stated that over the next three years, the employee would move up until Job Rate was reached, which would be the 75^th percentile of the market.

Council Member Evans asked how a new employee with several years of experience would be paid. Ms. Pylant said an evaluation would be made, but it would not be prudent to hire a new employee above what current employees in that same job were currently being paid. Mr. Horton noted the system allows some flexibility.

Mayor pro tem Capowksi asked, if the Council set a pay increase of 4%, if that meant that an employee below Job Rate would receive 4%, plus the 3.8% for the step. Ms. Pylant stated yes. Mr. Horton added that there are two pools of money budgeted for that purpose. Ms. Thomas stated that currently about 70% of the Town's workforce falls into that category.

Mayor Waldorf asked what was the aggregate increase this past year. Ms. Thomas answered about 5%.

Mayor Waldorf asked what the expected aggregate would be under this new system. Mr. Horton said it would be about the same, but it would be 5% for a higher number.

Ms. Pylant noted the five performance ratings: Below Expected Level, Needs Improvement, Meets Standards, Exceeds Standards, and Outstanding. She briefly discussed how raises over Job Rate would be calculated; for example, increases based on performance might be: Outstanding = 5.6%; Exceeds Standards = 5.1%; and, Meets Standards = 4.6%. Ms. Pylant said increases for Meets Standards and Exceeds Standards would be added to base pay, but for an Outstanding rating 5.5% would be added to base pay, and .5% would be paid as a bonus.

Ms. Pylant noted other consultant recommendations to deal with the current salary compression are to bring all employees with five or more years of service, whose salary was not at the midpoint, to the midpoint; and, to bring all employees with one to four years of service, whose salary was not at 95% of the midpoint, to 95% of the midpoint.

Mr. Horton noted they had based their budget projections on this proposed system, and believed it would be worthwhile to keep the Outstanding rate and budget a small pool of funds for that purpose.

Mayor pro tem Capowski asked who decides the rating of an employee. Mr. Horton said the department heads are ultimately responsible, but supervisors initiate the process. Mayor pro tem Capowski asked how a supervisor rating all their employees as Outstanding would be regulated. Ms. Pylant said it was important that clear guidelines be in place so that fair ratings would be applied to all employees. She said the standards should measure the important aspects of each job in order to control ratings that are awarded.

Council Member McClintock asked, that if the new personnel package were accepted as it was, if that meant there would be no greater cost of the present package. Mr. Horton responded that would be hard to say because he did not know what future Councils might do. He said based on what was happening now, there would be no significant difference in actual dollars; the cost was expected to be about five percent, but five percent of a higher number.

Council Member McClintock said she believed a lot of the issues were addressed by this proposal, but while we still have merit folded into salaries, it would continue to be confusing. She said she was frustrated that the merit was still folded into the system as it makes it more difficult to explain and understand, and in her view was not as good a system as it could be.

Council Member Foy asked for clarification on the funding for increases. He asked if first, we would know who and how many people were in each category, then we would fund it. Mr. Horton said it was the opposite, first funds would be budgeted, then the number of persons in each category would be determined through performance evaluations. Council Member Foy asked how would they determine how much money to set aside. Mr. Horton said a set amount of funds could be identified, but the rest would be a judgment call.

Mayor Waldorf noted that sometimes no funds are available, and reminded the Council that in the 1992-93 budget year, no funds were awarded for salary increases.

Council Member Foy expressed concern on how employees might perceive these changes. Mr. Horton said we could conduct a more formal survey of employees every year to see how satisfied they were with the system.

Council Member Bateman asked if this would be implemented in the 1999-00 budget year. Mr. Horton said that was correct.

Ms. Thomas said implementation would be phased over two years. She noted that in the coming year the steps would be implemented and a market study would be conducted to set the 75^th percentile, then next budget year full implementation would take place.

Council Member Brown asked about the Outstanding rating. Mr. Horton noted it was an honor to receive an Outstanding rating, and was used sparingly by supervisors and department heads. He noted that to receive an Outstanding rating meant you experienced a difficult year with many challenges, and there just were not that many opportunities for an employee to receive that type of rating.

Council Member Capowski asked if Mr. Horton was recommending this system. Mr. Horton said yes, but with the Outstanding rating left in, and the difference being paid as a bonus instead of being added to base pay.

Ms. Thomas gave a brief description of how the Council might set a living wage, but increasing the base wage and using the step process as recommended by the consultant. Mr. Horton stated he believed it would be important to have a consultant study the pay ranges about every four years in order to stay competitive.

Council Member Evans said the Council was aware that Chapel Hill's cost of living was somewhat higher than neighboring communities, and that the majority of employees were forced to live outside of Chapel Hill, in many cases outside the County. She asked if that would be taken into account in some way. Mr. Horton answered he knew of no way to incorporate that, and it was a complex issue. He said he believed the trend was moving in the other direction, noting that several years ago about 24% of employees lived outside of Chapel Hill, and now the figure is down to about 17%.

Council Member Wiggins thanked Ms. Pylant and Ms. Thomas for their work, especially the presentation developed for the employees. She said she believed the employees understood what was being proposed, and it had helped the Council understand as well. Council Member Wiggins said she believed it necessary to check back with the employees after implementation to assure that they still understood the system. She said she believed that new Council Members who may join the Council be given a comprehensive orientation regarding the pay system.

Mayor Waldorf asked what the Council's intent was regarding the system. There was consensus that the Council would support the recommendations, with the possibility of some minor adjustments.

Mayor pro tem Capowski asked why Mr. Horton preferred that funds awarded for the Outstanding ratings not be added to base salary. Mr. Horton said the Outstanding rating was an honor that was used sparingly, and that it was also a cost control.

Council Member Wiggins said that we would have to do a really good job in training supervisors in performance management so that all employees were treated fairly and that ratings were assigned based solely on performance.

Budget Development Process

Mr. Horton gave a brief introduction of the budget development process and the format suggestions developed from conversations with all Council Members. He noted that certain suggestions involved creation of graphics to aid understanding of the budget, format improvements, or production of reference materials. Mr. Horton said work had been initiated on these suggestions and they would be provided to the Council as the budget process moved forward.

Mr. Horton noted that the following aids had been suggested:

· Prepare a chart that summarizes the budget development process.

· Prepare a graphic that illustrates the fund structure of the budget.

· Develop a concise visual format to show the full budget and significant changes.

· Show percentage change from base budget to the Manager's Recommended Budget on a line item basis.

· Provide an explanation of what kinds of items are included in each of the line item categories (annotated chart of accounts).

· When the Manager's Recommended Budget is presented, list new positions requested in priority order overall and by department; list estimated costs for five years.

· Continue to include a table that shows funds proposed for allocation to other organizations, i.e., human services organizations, etc.

Mr. Horton briefly described the process proposed for department presentations to the Council, the schedule for the budget development process, and their intent to identify changes in the budget as clearly as possible.

Council Member McClintock asked how we were going to link the budget process with the goals that would come out of today's discussion, and how they would be communicated to the departments. Mr. Horton said it was possible that this may not be the best time to set all of the Council's goals, and it may be better to wait until the Council hears from the public before setting some of those goals.

Council Member Wiggins commended the Manager for responding to the suggestions raised by the Council. She said several Council Members had expressed concerns regarding long range planning, and asked when the departments are making their presentations, that they also explain how the Council's goals are being addressed regarding their long range planning. Mr. Horton said that would be done.

Council Member Foy recommended that the Council schedule time at each budget work session to make some decisions so that issues are not left hanging. He also stated his agreement with the No. 12 and 14 suggestions, as well as No. 28 of the Council’s goals.

Council Member Evans asked how budget materials were supplied to the public. She said she had noticed a change in that bar charts rather than pie charts were being used to summarize information. Mr. Baker said there was no particular reason for the change, and either would be appropriate.

Mayor Waldorf said she believed all of the Manager's suggestions were appropriate and she supported them. She agreed with suggestion No. 14, noting it could eliminate the need for three work sessions. Mr. Horton said such a meeting would most likely need to be scheduled later in the process.

Council Member McClintock said she believed the information on programs would have to be received early so that the Council would have time to review the material.

Council Member Brown asked if the different departments prepared their budgets at different times. Mr. Horton said the smaller departments were able to submit their budgets early in the process, and larger departments naturally required more preparation time.

Council Member Brown asked if Council Member Foy and Mayor Waldorf were suggesting that some decision be made at the end of budget work sessions. Council Member Foy stated he was suggesting that more guidance be given to staff on how to proceed, rather than specific decisions being made.

Council Member McClintock said she believed charts would be useful to show what department expectations were; for instance, how often a citizen could expect to have his/her leaves picked up. She said a description of key service issues would be helpful.

Council Member Wiggins stated it would be helpful to be able to make the connection between service issues and personnel issues.

Mr. Horton asked if the Council wished to adopt a resolution to institute 12, 14, and 28, as suggested. Council Member Foy said he was in favor of 14, but he did not believe it could be done in one day. Mr. Horton said it would probably mean a 10-hour day.

Council Member Pavão asked if some could be done one day, with the others being done as regularly scheduled. Mr. Horton said the larger departments, possibly four, could be done in one day. He asked what day of the week would be best for the Council.

Council Member McClintock challenged the assumption that the Council is only available to the public in the evening.

Council Member Wiggins supported No. 14, but said the Council could facilitate using this time efficiently by providing materials in advance so that the Council could read the presentations rather than listening to redundant information provided at the work session.

Council Member Evans agreed, noting that if materials were received ahead of time the Council could form questions for the staff that could be answered at the meeting.

Mayor pro tem Capowski said he was concerned about holding full day Council meetings during the week, and the precedent that it would set.

Council Member Bateman asked how many night meetings could be eliminated with a full day meeting. Mr. Horton said three night meetings could be eliminated.

Council Member McClintock suggested taking a day to hear presentations from as many departments as possible, to be televised and rebroadcast, then any important issues be discussed during a night meeting. Mr. Horton reiterated that the three night meetings could be eliminated only if all departments were scheduled for the same day.

Council Member Wiggins stated that having the three night meetings makes it possible for a Council Member to miss one meeting but make the others, whereas if a Council Member missed the one all day meeting they would miss the presentation of important information.

COUNCIL MEMBER PAVÃO MOVED THAT A SIX HOUR DAY MEETING WITH THE LARGER DEPARTMENTS, AND A 3 HOUR EVENING MEETING WITH THE SMALLER DEPARTMENTS BE SCHEDULED, WITH CANCELLATION OF TWO NIGHT MEETINGS. THE MOTION WAS SECONDED BY COUNCIL MEMBER MCCLINTOCK, AND WAS PASSED UNANIMOUSLY.

Goals and Objectives - Next Budget and Beyond

Mr. Horton gave a brief update on the current year’s budget and the preliminary financial forecast. He indicated that based on information available, a tax rate increase may be necessary in 1999-2000 to continue current services.

Mr. Baker briefly described the revenue and cost estimates for 1999-2000.

Mr. Horton noted that the preliminary financial forecast assumed that the County would take over operation of the landfill on October 1, 1999.

Mr. Jenne suggested the Council continue the discussion regarding the budget, and then go on to goals and objectives.

Council Member Brown said she believed transportation would be the big issue faced by the General Assembly for funding. Mr. Horton said he was hopeful that we would receive additional funding from the State for transportation. He said he was not convinced that any new source of revenue would be available this coming budget year, and the preliminary budget reflected that belief.

Council Member Pavão asked where would funds come from for Streetscape for the 100 block of Franklin Street. Mr. Horton said from a combination of bond dollars and capital funds.

Mayor pro tem Capowski said regarding solid waste, he assumed the County would take over solid waste activities on October 1^st, meaning the Town would lose approximately $100,000, and that tipping fees would increase by $6/ton which would cost the Town approximately $120,000. Mr. Horton said that assumption was correct. Mayor pro tem Capowski asked what the effect on the Town’s budget would be when the transfer was made. Mr. Horton said only the actual cost of the department operations, that all other costs would remain the same. He said proceeding on the course we are on, we would prepare a budget, the County Commissioners would participate in its preparation, but the Town would have to adopt it and it would essentially be the County's budget.

Council Member Brown asked for a brief discussion of present goals and objectives before new goals and objectives were identified.

Mr. Horton noted that there were 34 items total and asked for direction from the Council on which ones they wished to discuss. Mr. Horton said the more focused the staff could be, the more likely the objectives could be attained.

Mayor Waldorf reiterated that emphasis should be placed on the downtown on a daily basis, such as daily cleanup and Streetscape (goal No. 2 from previous retreat).

Council Member McClintock asked for actions the Council could take regarding sedimentation control.

Council Member Wiggins said all budget recommendations relate to our ability to recruit, orient, train and retain a highly productive workforce. She said we cannot implement our goals without a highly productive workforce, and she would like to see focus placed on this issue.

Council Member Evans said one of the things that the Council should focus on is safety, in the downtown and in neighborhoods. She also said aesthetics were important, specifically the cleanliness of the community. Council Member Evans suggested more events be held downtown geared towards families. She said we should be planting trees as sidewalks are built, so that tree lined roadways are created. Council Member Evans said the Council should consider a once a week garbage collection system.

Council Member Pavão said that since we were looking at a possible tax increase this year, he would like the Council to look for ways to broaden the tax base.

Mayor pro tem Capowski stated he would like the goal to be no more than a 1 cent tax increase.

Council Member Brown said she would like to institute a pay as you throw system.

Council Member Foy said one goal from the last retreat was to discover ways to foster public art activity. He suggested the Council consider how to enhance the economic impact of the arts on the community, in cooperation with Orange County and Carrboro.

Council Member Bateman said she would like to increase outreach to the Hispanic population in terms of public housing.

Council Member McClintock said she would like the Town to adopt an inclusionary zoning policy this year and retain an attorney to write it, then incorporate it into the Development Ordinance.

Council Member Wiggins said she was not ready to vote and prioritize the goals as she believes the staff should have an opportunity to evaluate and respond to them as to how they may effect services and any budget impacts.

Council Member Evans said she believed it was mandatory that they look at the increasing costs of living in Chapel Hill and the effect on Town policies.

Mayor pro tem Capowski said he would like to emphasize giving more environmental consideration in the Development Ordinance.

Council Member Brown said she would like a priority of purchasing small buses in this budget year.

Council Member Foy said he would like to investigate changing the regulations for parking lots to make them more pedestrian friendly.

Council Member McClintock said regarding development review, she would like to ask the staff to increase the area of traffic impact statements to consider areas up to 1/2 mile away, to get some up- to-date figures of nearby intersections from DOT, and to get information on air quality as a result of the proposed development.

Mayor pro tem Capowski said even if it costs some funds, the edges of major roads should be improved to make them more pedestrian and bicycle friendly.

Council Member Brown stated she would like to have the staff prepare a report on impact zoning for Council discussion during a scheduled meeting.

Council Member McClintock asked where we are on open space. Mr. Horton said the Council had received a proposal from the Greenways Commission which had in turn been referred to all boards and commissions. Mr. Horton said a report would be brought back to the Council in about two months. Council Member McClintock asked if the report would deal with revenue sources. Mr. Horton said the report could cover that if the Council wishes, as well as policy recommendations.

Council Member McClintock said she would like a report on impact fees and how they effect the cost of development.

Council Member Evans said she would like to review all costs of the Town’s development regulations.

Council Member Pavão said he would like to examine how trash is collected in the downtown area and to look at the system used by Athens, Georgia.

Mayor pro tem Capowski said he would like to begin an alternative fuel vehicles pilot project.

Council Member Brown said she would like an expanded integrated pest control management plan for all buildings and grounds.

Council Member McClintock asked that a five year plan be developed for how to pay for a new swimming pool. She said once a plan was developed she would like to see the Council commit to it.

Council Member Wiggins asked how many of the goals suggested today could rationally be a part of the update to the Comprehensive Plan. She said she would not like the Council to take action that might result in some recommendations or policies that would be in conflict with that process.

Council Member Evans asked that ways be explored so that the 20,000 outside cars which enter our community each year could pay part of the transportation costs.

Mayor pro tem Capwoski asked that we improve leaf removal operations, specifically how to do it faster.

Council Member Brown said in the past the Council had listed their preferences for the priority of the goals, and she believed those that had been previously stated and were being reiterated should be given a higher priority this year.

Council Member Foy asked that the landscaping at Ephesus Drive and Eastgate Shopping Center be enhanced.

Council Member McClintock suggested looking at ways to save trees during development.

Mayor pro tem Capowski suggested that a three year cycle be implemented for replacement of computers and other equipment. He also suggested the need for increased communication capability for the Police and Fire Departments. Mayor pro tem Capowski suggested contacting Congressman Price about the need for more radio frequencies.

Council Member Wiggins said some of these goals come out of what various Council Members view as important regarding development review, and at some point she would like the Council to instruct the staff to look at how information on costs, both positive and negative, impact or relate to development proposals and decisions. She said she would also like a way to evaluate a decision on the impact on the diversity of the community. Council Member Wiggins said she would like to consider ways that the Council could be more aware of how its decisions impact the diversity of the community.

Mr. Jenne briefly reviewed the goals currently under consideration, and combined several that were similar, based on the Council's suggestions.

Council Member McClintock agreed to remove her request for an attorney to write an inclusionary zoning ordinance, but that one be written remain as a goal.

Mayor pro tem Capowski asked Mr. Karpinos what the possibility of Chapel Hill having a gasoline tax was. Mr. Horton answered it was not a possibility based on current law.

Council Member McClintock agreed to delete her request for inclusionary zoning, because it would be considered at another time.

The Council then voted for each of the identified goals listed by Mr. Jenne on flip charts by placing stickers with their initials beside their top five goals. Based on the Council’s votes, the following goals were identified:

JC, LP, EW, RW, FB		Continue emphasis on Downtown (#2).
		Improve aesthetics in Downtown and other areas and how we collect trash in Downtown (#12).
		Try to make Downtown center of community with more activity.
PE		Tree planting should accompany sidewalk improvements.
		Safety in Downtown and neighborhoods.
		Reduce garbage pickup to once a week.
		Actions Council can take on sedimentation control.
		Focus on recruiting/orienting/training/retaining highly productive work force.
PE, RW, LP		Look for ways to broaden tax base.
		No more than $.01 tax increase.
		Start pay-as-you-throw system.
KF, JB, JM, RW		Find out possible economic impact of arts on community—cooperate with Orange County & Carrboro.
EW, LP, FB		Increase outreach to Hispanic population with regards to public housing.
		~~Adopt inclusionary zoning policy this year—retain outside lawyer to write it.~~
EW, PE		Examine cost of living in Chapel Hill and effect of Town policies.
JM, JC		More environmental consideration in Development Ordinance.
RW, JB, LP, FB		Add small buses to system this year.
KF, JM, FB		Consider changing parking lot regulations to be pedestrian friendly.
JM		Increase study area for transportation impact; up-to-date figures on intersections; air quality data (re: development review).
JC		Fix up edges of major roads to accommodate bicycles.
JB		Staff report on impact zoning for Council discussion.
KF, JM		Report on impact fees; how it’s used to pay for cost of development.
EW, EW, LP		Review cost of our development regulations.
JC, JB		Alternative-fuel vehicles—start pilot project.
JB		Expand integrated pest control management to all buildings and grounds.
RW, KF		Develop 5-year plan for new swimming pool—how to pay for it.
PE		Explore ways in which outside cars can help to pay transportation costs.
		Improve leaf vacuuming operation (faster).
		Improve landscaping at Ephesus and Eastgate.
KF		Look at ways to save trees during development.
		3-year cycle for computers with internal services funds.
JC		Improve homepage website (look better/easier to use).
		Get additional radio frequencies for emergency services.
		~~Handle Y2K problem.~~
PE, FB		Method to evaluate our development decisions with relation to cost and diversity (arrow to #23).

Note: Strike through indicates that this item was combined with a similar item.

Sewer Extension Financing

Mr. Horton gave a brief overview of funding options for a Neighborhood Sewer Assistance Program. He noted his belief that the Council's options for funding or financing a program of this nature are fairly limited, short of the annual $100,000 allocation from the General Fund budget to a capital reserve for sewer assistance. Mr. Horton noted other potential options would be issuing General Obligation bonds which would require voter approval, issuing General Obligation bonds using the two-thirds rule that allows a municipality to issue bonds without voter approval in the amount of two-thirds of bonds retired in a prior year, a lease-purchase for capital improvements potentially could be used if the project is defined at the time of issuance, and cash contributions in a given year or establishing a continuing annual allocation from the General Fund.

Mayor pro tem Capowski asked how funds might be borrowed or otherwise acquired. He said he did not understand why taxes needed to be raised in order to fund such a program. Mr. Horton remarked that was a policy decision for the Council.

Council Member McClintock said she believed if the Council thinks this was important, then the money should be put into the Capital Improvements Program. She said the important thing was to commit to it and be ready when requests were received. Council Member McClintock said a better way would be to get the information from OWASA as to which neighborhoods are scheduled to be sewered, and use that information to place priorities.

Council Member Foy said it was important that funds be available when needed, and that taxes not be raised when a need is identified.

Mayor Waldorf said she supported setting aside money, but wanted to wait to set a dollar amount until the Council had a clear picture of the budget projection for the coming fiscal year.

Council Member Foy asked if money was earmarked but not needed, could it then be channeled to other purposes. Mr. Horton said until a contract is actually signed, funds could always be reallocated.

Council Member McClintock said if $100,000 is allocated but unused, she believed it should stay there and not be reallocated, since several years later it may be needed.

Council Member Foy said he was not suggesting that it be reallocated if unused, but was asking what the possibilities might be.

Council Member Evans suggested waiting until the Council was further along in the budget process before an amount was earmarked for this purpose.

Council Member Wiggins said as a resident of a neighborhood who recently explored tapping onto the sewer system, the cost was exorbitant even with a 20% or 25% subsidy. She said only one family expressed interest.

Council Member Foy stated that it was possible that a neighborhood would be forced to hook onto the sewer system due to health reasons, and said if the Council had a policy in place, it would be obligated to provide the subsidy at that point. Mr. Horton reminded the Council that the subsidy was 20%, but with a cap of $4,500 per lot.

Effectiveness of Staff Reports on Development Review

Council Member Foy noted that the staff reports now contain more background which is very helpful.

Council Member Evans said the checklists being provided as a development relates to the Development Ordinance had also been quite helpful.

Council Member McClintock said the new format being used is an improvement. She asked if it was the Traffic Engineer's job to sit down with the applicant and tell him what the requirements are. Mr. Horton noted it was a negotiation between the Town and the applicant, which would include the Traffic Engineer as well as members of the Planning staff.

Mayor pro tem Capowski asked when an applicant does a traffic analysis, are their analyses confirmed. Mr. Waldon stated the applicant's analysis is reviewed and compared to other recent analyses, and the methodology used to arrive at the figures are reviewed with the applicant. Mr. Waldon said certain assumptions are made about the number of trips generated.

Council Member McClintock said she would like to emphasize how important it is that the very latest traffic figures be used when these traffic impact statements are submitted.

Mayor pro tem Capowski asked what there was in the Development Ordinance to prevent the sedimentation and erosion that has occurred in Chapel Hill from occurring elsewhere. Mr. Horton said we still do not have the technology to completely solve those problems. Mayor pro tem Capowski asked who would address the cumulative impacts of several developments in one area. He said it was possible the developers could blame each other. Mr. Horton said the staff would develop recommendations that address these issues.

Effectiveness of Staff Reports on Development Review

Other Topics of Interest

Town Clerk